Keeping the peace in Gold Hill has been anything but peaceful in recent months.

Since May, three council members have survived recall, a vocal critic of the police department has had her home searched and computer confiscated and the police chief has been put on paid administrative leave under allegations of fraud and harassment.

And that's just the latest in a string of problems among officials in Gold Hill. In 2005, the justice of the peace was arrested for buying marijuana from the town librarian. Later that year, the municipal judge and the police chief locked horns over a 500 percent spike in traffic tickets, many of which the judge dismissed outright as an "unauthorized tax."

Local residents and others speak wistfully of a peaceful potential for the little riverside town of 1,062, established in 1884.

"I really think Gold Hill could be a good place to live if there wasn't so much political turmoil," said City Recorder Mary Goddard, who lives in Grants Pass.

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Outsiders can't help but wonder: What is wrong with Gold Hill?

All Rogue Valley cities are struggling with issues related to ongoing cultural and demographic changes, said local historian George Kramer. But Gold Hill appears to be stuck in a testy time warp, he said.

"Ashland has culture, Medford has shopping, Jacksonville has history and Gold Hill has recall elections," said Kramer. "I don't think they know what they want. They do seem to have a Hatfield and McCoy feud going on."

Police Chief Dean Muchow, who turned in his badge and keys Thursday pending an internal investigation of his phone records and department time cards, joins a long line of chiefs who have had trouble in Gold Hill.

In 1997, then-Police Chief Katie Holmboe was reprimanded by the City Council for selling Mary Kay while on duty and for using prayer to try to drive evil spirits from a man she thought was possessed because he was acting strangely. In 1999, Chief Dave Crawford was convicted of fourth-degree assault, harassment and attempted coercion after kicking and manhandling a dirt-biker after a chase and for cursing and threatening an elderly couple after they slowed for deer on Highway 234. Mail Tribune archives dating from the 1960s through the 1980s are riddled with stories of battles between the council and its police department.

Sherman Kiger, 60, who was born and raised in Gold Hill, said he remembers Holmboe, who served as chief for a little over 12 years.

"If she wanted to exorcise me, I'd say 'go for it,'" said Kiger. "I'll tell you one thing, she was really good with the kids. She went that extra mile."

Kiger said he also remembers a time from the 1950s when one officer rode roughshod over locals. The womanizing bully cop would harass families, entering residences and refrigerators in his relentless search for illegal game, he said.

"He couldn't have been sleazier," said Kiger. "Somebody ended up shooting him and tossing him in the river. They never did solve that mystery."

The Mail Tribune was unable to authenticate Kiger's remembrances of the bully cop. But so it goes in this town that has become the poster child for political dysfunction. Fable often becomes fact as turmoil continues to spin around concerns — real or imagined — regarding the actions of officers hired to protect and serve.

It is understandable passions run high when people are discussing something as fundamental as their own safety, says Elaine Hallmark, director of the state-funded Oregon Consensus Program, which offers conflict resolution services to split communities.

But reasoned discourse is necessary for resolution, she said. And Gold Hill residents must be willing to work together for the sake of community peace, she said.

"Is there a definable group of people at the core who need to have a facilitated dialogue? Or is there a broader, more systemic problem within the community?" Hallmark said. "There's no easy answer with a history like that."

A good first step for Gold Hill would be an outside assessment of the situation by someone "neutral and skilled in designing collaborative intervention," said Hallmark.

"One of the things we try to look for in assessment is, is it feasible and is there an interest?" she said. "Are they willing to invest in change? There are people who thrive on fight. And some who walk away."

Gloria Wood said she loves Gold Hill. But the longtime community volunteer admits she has been driven off by the recent political vitriol.

"The community is fractured," said Wood. "People who have known each other for years are no longer speaking."

Wood remains president of the Friends of the Gold Hill Library and lay-leader of the Gold Hill Methodist Church. Formerly active within the town's historical society, Wood also served as president and secretary of the civic organization Can-DO.

Working on improvements at the sports park, bike path and other projects are uplifting for both herself and the community. But some Can-DO members now seem more interested in bickering about town politics, said Wood.

"I'm not happy," she said. "It's become very catty and it's not a good thing. So I just stay away."

The current controversy between the City Council and its police chief came to a head on Tuesday, when members Gus Wolf, Jan Fish and Donna Silva voted to place Muchow on leave while the city's auditors and attorney investigate allegations of fraud, harassment and other claims. Council members Kathleen Price and Tom Daily opposed the move, saying it amounted to "bushwhacking" the chief.

Price said Wolf, Fish and Silva have put residents and businesses at risk by leaving the town without adequate police coverage.

"We do have an unfortunate element of people here," said Price.

Muchow did not return phone calls requesting comment after he was placed on administrative leave.

Wolf, Fish and Silva survived an attempted recall by Muchow supporters in May. Wolf said possible fraud in the police department, a pending lawsuit from former councilwoman Christine Alford and a threat from the city's insurance company not to renew its policy could mean the end of Gold Hill.

"Gold Hill is looking at economic destruction and ultimately, disincorporation, if the council is not willing to bring order to the city," Wolf said.

Alford, who was recalled in 2004, is under investigation for alleged identity theft after she sent a fictitious e-mail in former Mayor Sherry Young's name. The e-mail intended to mock Young and the authors of another Web site that was soliciting money for a legal fund for Muchow, Alford said. Alford also authored a lampooning Web site which derided the police department and Muchow in particular.

Muchow, accompanied by nine other officers from five different agencies, served a search warrant on Alford's residence on Oct. 16.

Alford has not been charged with a crime.

While many residents want their own police department to respond to calls, others are questioning whether Gold Hill can provide adequate funding and oversight. The department currently consists of a suspended chief, a sergeant and a few reserve officers. A five-year levy on the Nov. 7 ballot will determine whether the department can keep its sergeant and hire a part-time clerk.

Resident Kiger said he "doesn't trust the council," adding he "doesn't know much about Muchow and his baggage." Kiger supports the notion of a local police department. Gold Hill is not a hotbed of crime, but the town needs someone to ride herd on unruly teenagers who have a been known to roll burning tires down the street, he said.

"I did worse than that in my day," Kiger said, laughing. "There's no criminal element that I know about. Whoever they get isn't going to be perfect."

Records from the Jackson County District Attorney's Office show Gold Hill's police department has filed 34 major traffic and criminal cases the first 10 months of this year — significantly fewer cases than Talent (167), Phoenix (102), Rogue River (121) and even Shady Cove (96).

Since Tuesday's council action, a recall notice has been filed against Price, the police sergeant refuses to meet with council delegates, and former and present council members as well as write-in candidates engage in screaming matches along the state highway over the upcoming election.

From her office in City Hall, City Clerk Goddard fields an onslaught of phone calls from city officials, community members and others needing to do business with the city. Some callers are pleased the council is taking control of the police department. Some are outraged at what they deem micromanagement or outright sabotage of the police department.

Others call for reasons not related to the current police contretemps. Without batting an eyelash, Goddard forwards a message to an on-duty patrol officer that a homeless man is masturbating on the library lawn.

"Nothing surprises me in this town anymore," said Goddard, with a weary smile. "Not a thing."

Reach reporter Sanne Specht at 776-4497 or e-mail sspecht@mailtribune.com.