Prerequisites: Max out Myer's level 2 friendship
Reward: None
Unlocks: Myer level 3 friendship
Befriending the most powerful man in town can never hurt, and you've managed to do just that with the first leg of Myer's storyline. To continue the befriending process you'll need to continue tracking Myer down for quick chats. He is a fixture of Town Hall, and will spend much of his time working in the office. During the evenings Myer will wander the town, then head back to his house, in the southwest of Moonbury, after dark. Town Hall is always the best place to look for him.
Once you've maxed out the second level of your friendship with Myer a notice will go up on Moonbury's Bulletin Boards. Mariele, Myer's wife, says that he has misplaced his pocket watch. She urges anyone who's found it to drop it off at their home, between 15:00 and 21:00, on any day of the week.
Enter Myer's home and you'll find husband and wife frantically trying to track down the missing watch. Myer will enlist you in trying to find the errant timepiece, suggesting that you speak to Matheo, the local witch doctor, first. You'll find Matheo at his home, to the south of Moonbury, though an exhaustive search by both of you will yield no watch.
Next up is Olive, the owner of the Willow Waters Bathhouse. She's usually working behind the main desk of the Bathhouse, though in the evenings she'll wander off to other places. Use your dog to find Olive if she's not at the Bathhouse. She did indeed find the Pocket Watch, which you can return to Myer. This will boost your relationship with him to the third level, ending the quest.