HAYWARD — While facing a $12 million budget deficit, Hayward is undergoing a major shakeup in leadership, with one official on leave and another headed for the door.
Last week, the City Council placed City Manager Ana Alvarez on paid administrative leave without any public explanation. Now, Assistant City Manager Dustin Claussen is leaving for another executive position at the city of San Leandro.
The city is also missing a permanent human resources director and director of finance.
Claussen, who became assistant city manager in 2022 after working in the finance department, will work his last day in Hayward on Friday after 11 years.
“It has been an amazing ride and certainly shaped my life,” Claussen said during Tuesday’s meeting. “So I’m very grateful for the opportunity that you all gave me and to serve along such great folks on the executive team and colleagues around the city. Thank you very much.”
Claussen is paid $374,052 in total compensation with an annual salary of $269,952, according to a city spokesman.
Mayor Mark Salinas thanked Claussen for his service and said Claussen has “been at the helm at some of the most biggest successes that this city has seen.” This includes Claussen’s work in “economic development to public works,” Salinas said. Claussen also stepped up for a time last year as interim city manager before Alvarez was hired.
For now, City Attorney Michael Lawson is serving as interim city manager.
“The executive team members and I are rolling up our sleeves. We’re looking everywhere for additional savings, and we’ll be working on that when we present the next budget proposal June 17th,” Lawson said during Tuesday’s council meeting. “The work before us is a balancing act.”
City spokesman Chuck Finnie told this news organization Thursday that he could not comment on Alvarez’s status, adding that her performance evaluation, which has been the subject of council closed session discussions, is still “unresolved.” He added that the city has not yet initiated a search for a new city manager, nor have officials begun to search for new human resources or finance directors.
Alvarez assumed her role on Jan. 9, replacing former city manager Kelly McAdoo, who left in May 2024 after 13 years with Hayward to work for the city of Santa Barbara.
According to her two-year contract, Alvarez gets $385,000 a year in base pay, plus benefits. If terminated, she is entitled to a minimum severance of 90 days of salary and benefits, paid in a lump sum, according to the contract. Finnie told this news organization her total compensation amounts to $505,391.
Sharif Etman, who stepped into office at the end of April, is currently serving as both the interim HR and finance director, according to the city’s website.
On May 13, Etman made a presentation to the council detailing the city’s budget forecast, showing a projected general fund budget of $220 million and $232 million in expenses, or a roughly $12.6 million budget deficit, Etman said.
The city is expected to receive another budget update on June 17th.
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