Pacific Grove settles with former police officer at center of controversy.

The city of Pacific Grove has settled out of court a $1 million free speech lawsuit filed last year by former P.G. Police officer Michael Gonzalez. Under the agreement signed by Gonzalez and P.G. Assistant City Manager Tori Hannah on April 7, the city will pay him $10,000 as a wage check, minus $2,000 in withholdings.

The city must also pay $8,000 to Gonzalez's law firm, Werksman Jackson & Quinn. In addition the city agreed to change Gonzalez's termination to a "voluntary resignation."

Gonzalez was terminated in January 2021, after months of pressure by residents in the wake of two controversies.

The first, in the spring of 2020, was around decals on Gonzalez's truck linked to white supremacist and anti-government groups. He was placed on  administrative leave during an investigation which found the complaints "unsubstantiated." Gonzalez issued a public apology that stated he was not aware of the meanings of the decals.

In November 2020, residents became aware of a social media account of Gonzalez's on the Parler app with a post of him at a rally displaying a sign stating "Fuck Black Lives Matter." He also posted to Parler the statement "Free Kyle Rittenhouse," referring to the then-teen who shot three people during a protest over a white police officer shooting a black man in Wisconsin. Two of the three people Rittenhouse shot were killed.

Gonzalez was again placed on leave until he was terminated in January 2021. When he filed the lawsuit a year later, he specifically named City Manager Ben Harvey and P.G. Police Chief Cathy Madalone as defendants along with the city.

Gonzalez claimed in his lawsuit that his firing was retaliation for exercising his First Amendment rights. The city responded in court documents that Gonzalez was not fired for exercising those rights, but rather for the display of the "Fuck Black Lives Matter" post, which the city said was a violation of the city's code of conduct.

The settlement lists the facts of where the two parties stand: That the city continues to deny Gonzalez's rights were violated; Gonzalez sought to get his job back but the city refused; Gonzalez "adamantly denies and wrongdoing and believes he has a valid claim against the defendants.

"Solely to avoid the necessary expense, effort and uncertainty of ongoing litigation, the parties are agreeing to the resolution of the lawsuit and the terms in this agreement," the settlement states.

Gonzalez agreed to file a joint stipulation and request of dismissal fo the lawsuit with prejudice. He also agreed to not file any further claims or lawsuits against the city. Both parties agreed that the settlement is not an admission by the city of any wrongdoing or evidence of any liability or unlawful conduct.