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County Administrative Office

Posted on: June 30, 2022

Auditor-Controller Separation Agreement Executed, Transition Effective July 1

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The County of Humboldt today executed a separation agreement with current Auditor-Controller Karen Paz Dominguez stating Ms. Paz Dominguez is resigning effective July 1. Per the Board of Supervisors action on Tuesday, the Board has appointed Auditor-Controller-elect Cheryl Dillingham to serve as interim Auditor-Controller effective upon resignation.

 Notable terms of the separation agreement include:

  • Agreement of Ms. Paz Dominguez to facilitate a smooth transition and cooperate with any appointed Auditor-Controller who succeeds her through Jan. 2, 2023.
  • Compensation paid to Ms. Paz Dominguez in the amount of $92,368.32, comprised of her salary through Jan. 2, 2023, payments in lieu of insurance benefits, and a flat amount of $15,000.
  • The county will pay for reasonable attorney fees she incurred related to the State of California’s case (CV 2200584) against Ms. Paz Dominguez and fees of $13,254.85 she incurred with respect to Humboldt Superior Court Case CV 2001430.
  • The county will dismiss its cross complaint against Ms. Paz Dominguez in the above-referenced State of California case, and will defend and indemnify her in the case.
  • Should the City of Eureka sue the county and Ms. Paz Dominguez for failure to distribute when due property taxes for Fiscal Year 2021-22, the county will defend and indemnify her in that suit, and any other suit against her arising in the course and scope of her service. As it relates to this matter, the county is poised to execute a tolling agreement with the anticipation of avoiding litigation. 

 Per the Board’s action, the separation agreement and appointment will return to the Board at its next available meeting, likely July 12, for final approval. 

 Going forward, Ms. Dillingham is scheduled to begin serving next week. The county appreciates Ms. Paz Dominguez’s cooperation with this transition.

Separation Agreement
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