Supervisors return to question of auditor-controller lawyering up
“In total for fiscal years (2019, 2020, and 2021), what is currently at stake as a potential loss of almost $30 million in state and federal dollars.” — Amy Nilsen, County Administrative Officer
The Humboldt County Board of Supervisors is set to return Tuesday to the matter of which lawyer will represent county Auditor- Controller Karen Paz Dominguez in an ongoing investigation of her office.
The investigation into the auditor- controller’s office began after county staff reported “operational gaps” there were putting millions of dollars at risk. During a Nov. 23 board meeting, County Administrative Officer Amy Nilsen reported delays there she said could cost the county $14.2 million.
“In total for fiscal years (2019, 2020, and 2021), what is currently at stake as a potential loss of almost $30 million in state and federal dollars,” Nilsen said.
Paz Dominguez has said that delays were the result of the county shortstaffing her office, and that “the county can still submit grant reimbursement claims to maximize dollars.”
On Dec. 30, presiding Judge Joyce D. Hinrichs denied Paz Dominguez’s request that the court declare a conflict and appoint legal counsel. Hinrichs directed the Board of Supervisors to seek outside legal representation for Paz Dominguez in the investigation concerning delays in payments, transfers, and reconciliations of accounts by the auditor- controller’s office. Hinrichs added that the board is not obligated to select Paz Dominguez’s attorney of choice, Cyndy Day-Wilson.
“Pursuant to statute the presiding judge only selects outside legal counsel, if the presiding judge determines the issue of conflict. Therefore, this Court will not do so, but will, however, direct the Humboldt County Board of Supervisors to contract with and employ legal counsel to assist Auditor- Controller Paz Dominguez in the performance of her duties as it relates to the investigation identified in the October 14, 2020, correspondence to Auditor- Controller Paz Dominguez from the Offices of Human Resources and County Counsel,” the order said.
Hinrichs added that “Day-Wilson should be reimbursed at a reasonable rate for the legal work she did to secure outside legal counsel on behalf of Auditor- Controller Paz Dominguez,” which amounts to approximately 20 hours or between $ 4,000 and $8,000, depending upon the approved reasonable rate.
Seeing a potential conflict of interest in representing both the county and Paz Dominguez, the Board of Supervisors at its Dec. 16 meeting directed the office of county counsel to seek outside legal representation. County counsel Jefferson Billingsley and Day-Wilson discussed the matter in court on Dec. 23. On behalf of the Board of Supervisors, Billingsley recommended Amelia F. Burroughs of Jansen Malloy LLP to represent Paz Dominguez at a rate of $195 per hour.
Day-Wilson told Hinrichs she was willing to reduce her usual rate of $350 to $400 per hour and match Burroughs’ rate to represent Paz Dominguez.
“I have been her attorney of choice all along. I’m the one who has been corresponding with Mr. Billingsley, I’ve had all these discussions, I know what the case involves,” Day-Wilson said.
The Board of Supervisors is set to take up the matter during its Tuesday meeting, which starts at 9 a.m. The agenda can be found at https:// humboldt.legistar.com/Calendar.aspx.