Assistant City Manager Susan E. McCarthy, who has headed several key departments in her nearly two decades with the city, is slated to become the first woman to hold the powerful post of city manager.

McCarthy was tapped for the position during a closed session interview with the council Tuesday night, just a month after City Manager John Jalili announced he would retire in November.

The surprisingly swift decision took only a matter of hours, instead of the months it normally takes to conduct a nationwide search. In the end, it was McCarthy's in-depth knowledge of Santa Monica that made her a natural choice.

"What I feel most fortunate about is knowing a lot about the city, the community and their concerns, a lot of the staff and the history of council policy," said McCarthy, who lives in Santa Monica with her husband, Kevin. "It will shorten the learning curve, and that's vital. I don't think anything extraordinarily different is going to happen."

McCarthy steps into the powerful post during uncertain times. A state law, which went into effect on Jan. 1, has gutted the city's restrictive rent control law, triggering rising rents and new construction. In addition major development is occurring along the city's beach front and its industrial corridor.

"We feel confident she's the right person for the job right now," said Mayor Pam O'Connor. "It wasn't a casual decision. We conducted a rigorous interview, and it took soul searching on our part.

"Susan is someone who is out there in the forefront," O'Connor said. "She has a lot of integrity and she's straightforward. She brings a depth of knowledge of the community, and has real hard core skills in terms of the budget and managing a complex organization."

Before rising to assistant city manager in 1996, McCarthy held numerous positions. She was named director of Community and Cultural Services in 1992 and was the city's Director of Personnel from 1981 to 1985. Before that, McCarthy was responsible for supervising municipal purchasing and employment programs and served as an administrative analyst for the directors of Transportation and Administrative Services.

"She's well qualified, she has experience and she has a very, very strong endorsement from the city manager," said Councilman Robert Holbrook, who was elected to his third term in office in November.

Council members expect McCarthy will bring a different style to the post held for nearly 15 years by Jalili, whose diplomacy and financial savvy helped earn Santa Monica a Triple A bond rating as well as a reputation as a socially progressive city.

"She's direct," Holbrook said. "She's kind but blunt. She told us her role is to implement policy rather than push it."