Chin questioned whether the state agency will be fair. He accused Mestas of orchestrating the allegations to get rid of him and former City Manager Hilary Straus. One of the state investigators also is a former Hanford police officer, Chin said.

"That's ridiculous," Mestas said. "I don't have any control over any state investigation. I don't have that kind of power."

But everyone from Williams to Sorensen to McCarthy admits that the legal fight and state investigation have taken a toll on the city's image. Chin and Sorensen also said they support the city's costly legal fight to keep department heads as at-will employees.

"It's a matter of principle," Chin said. "The public wants its public servants to be held accountable for their job performance."

McCarthy said the ongoing battle has made it difficult for her and other city employees to concentrate on their jobs. She came to Hanford in July 2011 as interim city clerk at the request of Straus. When Straus fell out of favor with the council, he resigned in February this year, taking with him $160,000 in severance pay.

Straus was replaced by Ron Hoggard, who previously had been Corcoran's city manager. Hoggard didn't stay long. In April, Hoggard resigned to focus on his bid for election to the Kings County Board of Supervisors. McCarthy took Hoggard's place.

Just last week, the City Council hired Pyle, the city manager of Coalinga. He starts Nov. 19. A telephone call to Pyle was not returned.

Attorney Michael Lampe, who challenged the city of Tulare over the race track and other issues, said the Tulare City Council majority -- not Pyle -- got the city in a financial mess. "I have nothing bad to say about Darrel Pyle. He's got a lot of talent. I'm sure he will do well in Hanford."

Sorensen and Chin said Pyle received high recommendations from his former employees.

"Hopefully, he will help the new council set goals so Hanford can move on," Sorensen said.