Stansbury Park Service Agency discusses embezzlement charges

On March 11, the Stansbury Park Service Agency met for its monthly board meeting. Several topics were addressed during the meeting, ranging from future land developments, to the consideration of a new general manager.

An open forum kicked the night off, where residents asked questions or voiced concerns. The first person who took the podium was concerned with the topic on every Stansbury resident’s mind — the case regarding former Service Agency office manager Tracey L. Schmidtke and the alleged embezzlement of nearly $95,000 of public funds.

Responding to the resident’s question about the case, board members gave an update on how Stansbury leadership was making up for the losses.

Currently, police and forensic accounting firm Rocky Mountain Advisory are investigating Schmidtke’s actions. Gill Miller of Rocky Mountain Advisory, along with Jeff Raleigh of the Utah Local Government Trust, are putting together a claim to submit to the service agency’s insurance company, according to board chairman Michael Johnson.

Johnson added the audit included in the claim, is 95% completed. This audit is looking over the fraudulent transactions to determine problematic categories for the claim, as well as gathering a list of items purchased for under $100.

Once completed, Johnson said the findings will be presented within the next week or so to the insurance company in the form of a proof of loss.

Also of concern to residents was the matter of how Stansbury was keeping itself afloat financially while the missing funds were still under investigation.

Johnson said retained earnings and monies on deposit with the state helped run the park and avoid defaulting on any debts.

Board members also mentioned the losses were covered under the insurance policy, but would not be recovered until the audit is completed.

The second and final resident to give comment expressed a grievance about the board’s apparent lack of transparency over the investigation, in addition to other issues.

Johnson pushed back on the accusation and pointed out that the members are not directly involved with the investigation.

“I don’t disagree with you [with respect to transparency], but I’m the chairman of the agency. I run the meetings,” he said. “None of us are involved in the investigation, other than reading reports.”

In response to another question having to do with a suggested “progress report” to be shared with residents, Johnson asserted he and the rest of the board were being diligent on their end.

“I don’t know how more transparent we could have been,” he said.

The topic of development in Stansbury was later discussed, as Derald Anderson presented his rezoning request for 15 townhomes. He also mentioned a conditional use permit application he acquired from Tooele County, to use the townhomes for an extended-stay hotel. However, Anderson said he feels using the townhomes as permanent residences would be in the best interest of the community.

Next, interim general manager Charlie Haddon gave a report on the state of the agency, which he said was “improving.” Acknowledging the hold-ups that go along with the audit, Haddon noted that unfinished transparency reports from 2018 and 2019 were hindering the process.

Beth Broadhead, who is helping Haddon with the reports, said there was significant damage done to the records by Schmidtke.

“We are still significantly far behind on getting that [2019] audit prepared,” she said.

Finally, the board gave an update on the search for a new general manager to fill the role of the interim manager, who was demoted for reasons unrelated to the criminal charges associated with Schmidtke. Board trustee Randall Hinton recalled the process by which the group selected potential managers, which included a committee to sort through the 57 candidates who were seeking the position.

After interviewing six of the 57 candidates, three were brought to the board for further questioning. Following the announcement, the board held a vote to hire candidate Veronica Hobby as Stansbury Park’s new general manager.

A 16-year Stansbury resident, Hobby’s recent job experience was as a financial analyst and grant manager for non-profit dental clinics throughout Salt Lake and Box Elder counties. She will be brought on as full-time manager on March 29, but is helping Haddon in the meantime.

Hobby said her general outlook is one of “excitement and hope.”

“Stansbury Park is a great community and I am grateful to be part of keeping it great,” she said.

Additional topics discussed during the meeting were: problems surrounding an abundance of golf carts on the road during the warmer seasons, maintenance of fields and parks in the community, updating the administrative policy and procedures handbook (the board voted to table the item initially, but ended up voting to revisit the issue at a later date), the creation of a finance subcommittee to enhance oversight (committee consists of three board members and three members of the community).