Amid high-profile personnel changes, city manager and fire chief are out in Monterey.

Monterey City Council held a special closed-session meeting on Friday, Dec. 8, to consider a single item on the agenda: a performance evaluation of City Manager Mike McCarthy.

Assistant City Manager Hans Uslar says there were no announcements made after the meeting, but that McCarthy is out on medical leave, indefinitely, as of Monday, Dec. 11. Uslar served as acting city manager over the weekend, and will continue in that role “until further notice,” he says.

McCarthy did not respond to a request for comment.

McCarthy’s sudden departure – however temporary it may turn out to be – comes on the heels of another personnel shakeup in Monterey: In mid-November, McCarthy fired Monterey Fire Chief Gaudenz Panholzer (who will remain in the job through the end of the year).

“I was caught off guard.”

Panholzer has no comment about his termination, and says his future plans “are up in the air.”

Pacific Grove, Carmel and Sand City all contract with Monterey for fire services. Ben Harvey, city manager of Pacific Grove, did not see Panholzer’s termination coming. “I was caught off guard,” says Harvey, who adds he expects to hear from Monterey soon as to who might replace Panholzer in the interim. “That person’s going to be my interface for all things fire, and at this time there is no name or timing.”

Todd Bodem, city administrator of Sand City, was likewise surprised. All his dealings with Panholzer “have been nothing but positive,” he says, adding that the chief has been very communicative.

“And he seemed like a kind person, a good person,” Bodem says, “which sometimes is rare.”

Monterey’s last fire chief, Andrew Miller, retired in 2013 after taking on the role in 2010. In 2012, Miller was assigned, under then-city manager Fred Meurer, to become assistant city manager, at a 7-percent increase in salary. Miller served in that role until his retirement.

In March 2017, Miller sued the city of Monterey, alleging his retirement benefits didn’t reflect his final compensation as assistant city manager, and meant he was being underpaid $850 per month.

Monterey City Attorney Christine Davi writes by email that Miller’s lawsuit “had no merit.” Miller’s attorney Steven Kaiser filed to dismiss the lawsuit on Nov. 22; the parties did not reach a settlement.

Kaiser declines to say why he dismissed the case, citing attorney-client privilege. It happened within days after Panholzer was terminated.

Uslar says he’s not ready to comment on who may become interim fire chief in Panholzer’s absence.