Board of Supervisors ratify separation agreement with Karen Paz Dominguez

EUREKA, Calif. — On Tuesday, the Humboldt County Board of Supervisors ratified the separation agreement with former auditor-controller Karen Paz Dominguez.

Paz Dominguez stepped down effective July 1, but this agreement outlines the specific terms of the separation. North Coast News spoke with Humboldt County District 1 Supervisor Rex Bohn on June 29, leading up to Paz Dominguez stepping down early, and said this is the right move for everyone.

"I think, overall, I think this will be best for Humboldt County, its residents and I think we move on from here," Supervisor Bohn said.

As part of the agreement, Paz Dominguez is set to receive$92,368.32 comprised of the balance of her salary through January 2023 and remaining insurance benefits. This all comes following potential litigation against Humboldt County and Paz Dominguez from the City of Eureka.

Eureka City Manager Miles Slattery told North Coast News that litigation surrounds the city not receiving millions in owed property tax funds due to disputed calculations from the auditor-controller's office.

"They were going to file a lawsuit and they're working with us, and we're gonna get through that," Supervisor Bohn said.

The Board of Supervisors also ratified a tolling agreement giving the City of Eureka roughly $4.5 million to make up for those owed funds. Additionally, the board also officially confirmed the appointment of Cheryl Dillingham as interim auditor-controller until she starts her newly elected term in January.

Some other notable parts of the separation agreement include the county defending Paz Dominguez if the City of Eureka moves forward with litigation as well as the county dismissing its cross-complaint against her. Additionally, the county will be defending Paz Dominguez in the State of California case against her.