Cypress appoints interim city manager following contentious resignation
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The Cypress City Council, in its first regular meeting since summer break, announced former City Manager Peter Grant’s resignation and appointed an interim leader in his place.
During closed session, the council unanimously voted to tap Matt Burton, an assistant city manager and finance director, to serve in the vacated post until a permanent replacement is hired.
“I worked closely with Peter Grant for 11 years and I considered him a mentor and appreciated all the guidance he gave me,” Burton said during Monday’s council meeting. “I wish him nothing but the best. It has also been a very challenging few months for city staff as well as the department directors. I appreciate the City Council’s support in allowing me to assist on a temporary basis to see the city through this transition period.”
Prior to the meeting, Grant sent a “Farewell Cypress” resignation email to city staff on Aug. 18. It came on the heels of an embattled few months for the former city manager. Grant faced “unlawful acts of misconduct” allegations by former Public Works Director Doug Dancs during an April 28 council meeting.
A series of closed session meetings evaluating his job performance followed, including one on Aug. 11 when a council majority ordered City Atty. Fred Galante to “take action” without any other details given publicly about the directive.
“In the past month, or so, some residents have expressed frustration about the lack of information,” said Mayor David Burke. “That’s just, unfortunately, the nature of things with closed session confidentiality or personnel issues or needing to abide by legal agreements.”
Burke urged the city to turn the page after Grant’s resignation on what he described as the “ugliness and division” that has framed past council meetings.
But supporters of Grant continued to question the mayor over the resignation.
Former Cypress Mayor Anne Mallari accused Burke of “orchestrating” Dancs’ appearance at the April meeting.
“The mayor’s refusal to meet with the city manager for months, the lack of a joint transition statement and the failure to follow established procedures make this change look personal and political, rather than professional,” Mallari said. “The mayor knows the city manager did nothing unlawful.”
Councilmember Scott Minikus echoed the accusation and claimed that Burke knowingly scheduled a prior special meeting to discuss Grant’s employment when Minikus was on a working vacation.
“I came back briefly and David scheduled the last meeting — the meeting in which these three decided that the city manager should no longer be here,” Minikus said.
Burke interjected that it was inappropriate to share, even theoretically, what happened during a closed session meeting he did not attend, in reference to the Aug. 11 vote.
Galante cautioned Minikus not to disclose anything.
“It’s a little late for that,” Burke said.
“I know [Councilmember] Bonnie [Peat] was not at that meeting so a logical conclusion can be drawn,” Minikus said.
Peat attended the special meeting, but left early.
In an Aug. 18 agreement obtained by TimesOC, Cypress will pay $313,000 in severance to Grant, with half of the amount to be cut by check within 10 days of the separation. The city is also obliged to pay COBRA health benefits for nine months or until Grant secures future employment.
A non-disparaging clause applicable to both Grant and city officials is included in the agreement.
Dancs’ separation agreement, which was signed by Minikus when he served as mayor last year, was not reported out of closed session at any point following its approval. On Jan. 27, the City Council did approve a register of warrants, transfers and wires where the agreement’s $183,000 sum is buried as an invoice for a “employment matter,” but does not name Dancs.
Following Burke’s lead, other Cypress residents and council members urged the council to hit a reset button after Grant’s resignation.
“Work together again,” said Paul Kokkinos, a Grant critic. “Make Cypress an even better place than it already is.”
Councilmember Kyle Chang thanked Grant for his service and wished him the best.
“I know this process feels very partisan,” he said, “but I’m really hoping we can come together and work on the next steps of navigating through this transition period and finding a new city manager together.”
