SEQUIM — A state dispute review board has upheld the termination of Sequim vehicle and vessel licensing subagent Karen Shewbert.

Shewbert operated the Sequim Vehicle/Vessel Licensing office for 12 years before Clallam County Auditor Patty Rosand terminated Shewbert’s contract and shut the office down in May.

Shewbert appealed the termination to the state Department of Licensing, which formed a dispute review board that heard testimony during a two-day hearing at the Department of Transportation Maintenance Building conference room in Port Angeles last month.

“It is the findings of the Review Board that the termination of the contract between Ms. Karen Shewbert and Clallam County Auditor be upheld,” Bill Cox, the chairman of the review board, wrote in an email to both sides.

At issue in Shewbert’s appeal was whether Rosand terminated her for cause.

The county auditor said Shewbert breached her contract by not providing appropriate financial documents.

“I was pleased that the outcome showed respect for the contract,” Rosand said of the state dispute review board’s decision.

Rosand was notified of the decision via certified letter Monday.

Attempts to reach Shewbert and her lawyer, Craig Miller, about the decision Friday were unsuccessful.

Chief Deputy Prosecuting Attorney Mark Nichols represented Rosand.

Rosand, who answers to the Department of Licensing, terminated Shewbert’s contract after constant disagreements regarding Shewbert’s accounting practices, including her refusal to use accounting software compatible with what the Auditor’s Office uses.

During the second day of the hearing, a teary Shewbert expressed regret for the lack of communication between her and Rosand.

Now that the review board has made its decision, Rosand hopes to reopen the Sequim Vehicle/Vessel Licensing office in a new location.

She said about a dozen people have contacted her to express interest in applying to be the new subagent, but she must get approval from the Department of Licensing before even beginning the search.

Until she gets such approval, east Clallam County is without a licensing bureau in Sequim.

Customers can go to Port Angeles for license tabs at the Auditor’s Office on the first floor of the Clallam County Courthouse, 223 E. Fourth St., or the Jefferson County auditor at 1820 Jefferson St. in Port Townsend.

Licensing customers also have the option of mailing their renewal notices to the courthouse or visiting www.dol.wa.gov to purchase tabs using their debit or credit cards.

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Reporter Lee Horton can be reached at 360-452-2345, ext. 5152, or at lee.horton@peninsuladailynews.com.