Board delays decision on auditor’s lawyer
The Humboldt County Board of Supervisors continued its discussion this week of the county’s internal investigation concerning delays in payments, transfers, and reconciliations of accounts relating to the office of the Auditor-Controller.
Following the request to be interviewed as a part of the internal investigation, Karen Paz Dominguez, the elected head of the auditor-controller’s office, requested outside legal representation from former Eureka City attorney Cyndy Day-Wilson.
“Rather than discuss any concerns with Ms. Paz Dominguez, the independently elected Auditor-Controller, the Board of Supervisors, CAO and HR department appear to be organizing a witch hunt,” a letter from Day-Wilson to the county’s lead attorney stated.
The item before supervisors asked whether or not county counsel has a conflict in representing Paz Dominguez in the investigation.
Neither Paz Dominguez or DayWilson were present for the supervisors’ discussion Tuesday.
Attorney for auditor-controller
The conversation quickly became awkward as internal investigations are typically discussed during closed session. County Counsel Jefferson Billingsley repeatedly explained that he could not discuss the details of the investigation.
“I’m a little hamstrung because I can’t really talk about investigations, the generic allegations are
in the agenda item. I really can't go into any more details than that,” he said.
“As conveyed in the response letter, the position is that the Office of County Counsel's client is the county as a whole and the office does not provide individual representation to employees or elected officials in an investigation,” according to the staff report from county counsel. “It does not appear at this point in time that a conflict exists regarding the office, but the recommended approach is discussed in the next point, establishment of an ethical wall.”
Billingsley explained that Paz Dominquez is entitled to seek her own counsel but the question is whether or not the attorney is retained for and paid for by the county as opposed to being paid by the auditor-controller herself.
“This just doesn't seem to me to rise to the level of needing an attorney,” said 2nd District Supervisor Estelle Fennell. “We have internal investigations in the county quite frequently. There's no charge filed, that's what I see. I don't understand it, actually.”
“I think there is a wrinkle here because of a specific statute that applies to three elected officials that provides them this avenue to take representation by the board, otherwise it probably wouldn't be much of a discussion,” Billingsley explained, referring to Government Code section 31000.6 which states:
“Upon request of the assessor, auditor-controller, or the sheriff of the county, the board of supervisors shall contract with and employ legal counsel to assist the assessor, auditor-controller, or the sheriff in the performance of his or her duties in any case where the county counsel or the district attorney would have a conflict of interest in representing the assessor, auditor-controller, or the sheriff.”
Third District Supervisor Mike Wilson expressed his concern that the letter from Day-Wilson could constitute a threat of litigation.
“This is the kind of discussion we have in closed session. There is a balance between what we think we should do to protect the county's interest and what the people involved, their situations and what the exposures might be. That's why this is a little weird to have this conversation because we are perceiving, I perceive anyway, threatened litigation,” Wilson said.
“Without getting into the details, because there is a lot of this stuff that should only be discussed in closed session, but here we are in the public and the public deserves to see transparency,” said 5th District Supervisor Steve Madrone.
First District Supervisor Rex Bohn expressed his frustration in the back and forth, saying he does not want to hire an outside attorney.
“Put our cards on the table, I'm willing to say I don't want to hire … but if this flashes back on us, do we hire everybody attorneys? I don't know what we're taking into closed session to talk about that we can't talk about in open session after we talked about how this is good because it's so transparent.”
Supervisors ultimately voted to continue the discussion during the Dec. 15 meeting and to additionally seek a closed session. The vote was 4-1 with Bohn dissenting.
Financial services contract
In a separate discussion, supervisors considered the possible creation of a chief financial officer position, and a proposal to pay $250,000 to Sacramento accounting firm MGO (Macias, Gini & O'Connell LLP) to provide temporary financial advisory services to the county.
In 2016, 53.76% of Humboldt County voters rejected Measure Q, a ballot measure proposing such a position.
County Administrative Officer Amy Nilsen said the move to hire an outside accounting firm is not an attempt to outsource the auditor-controller.
“This is an adaptation to the work the auditor-controller wants done in the organization. This is aligning how the workforce, in this case the County Administrative Office, maintains compliance in a changing business system and that changing business system is the auditor's office,” Nilsen said.
A staff report provided by the County Administrative Office notes that Paz Dominguez “rejected this agenda item through the county's agenda management system and made the following comment, ‘This item attempts to undermine the authority of my office and position while also undermining the will of the voters of Humboldt County. I cannot in good conscience be complacent in this latest attempt to grab power from the duly-elected auditor-controller.'”
Human Resources Director Linda Le voiced her support in hiring the accounting firm.
“We need to be mindful that to be successful and to be goal-oriented, we need to move forward in a strategic pathway,” Le said. “Our recommendation to allow MGO to partner with my office to conduct a formal staffing study is our attempt to be strategic in our approach.”
Le also voiced her support in seeking a chief financial officer position.
Madrone voiced his optimism in moving forward, saying this is their chance to hit the reset button.
“It's clear to me that the auditor- controller needs more staff. It's clear to me that we've had a backlog in this area for quite a few years, so it's not surprising to me that we're having to invest significant funds,” Madrone said. “MGO will eventually be off the table because we'll get people up to speed, trained and working together to accomplish the goals for our community. I think it's a good investment.”
Bohn asked Nilsen to confirm whether or not any positions have been added to the auditor's office in the last three years. Nilsen confirmed there were two positions added in 2018 and one in 2019.
“I just don't want you to think we're trying to do anything, there's nothing nefarious about this,” Bohn said. “I appreciate Supervisor Madrone's idea, let's just start from square one moving forward, but with actualities.”
The supervisors unanimously approved the $250,000 contract with MGO, with an added stipulation that staff will check in with the board when half the money has been spent.