Debra Schnabel began work as the Haines Borough manager Monday, wrapping up a controversial hiring process, but still leaving unanswered questions about how Schnabel will handle land use and contracting issues concerning her brother, Roger Schnabel.
Roger Schnabel owns Southeast Roadbuilders and Skookum Holdings, two companies who regularly contract or work on projects in the borough.
On Thursday, the assembly bounced back and forth between discussing details of Schnabel’s contract and how to overcome its attorney’s opinion that, according to borough code, Roger Schnabel is prohibited from contracting with the borough.
Borough attorney Brooks Chandler advised that if the borough wanted to allow Roger Schnabel to bid on projects or contract with the borough, the assembly would need to change code which currently prohibits the manager from making decisions in which they or an “immediate family member” have financial interest.
Chandler’s opinion said Debra Schnabel is not, according to code, prohibited from dealing with land-use issues related to her brother’s companies such as recommending conditional use permits, approving or disapproving land-use permits and civil enforcement lawsuits but that she should delegate the task.
Assembly members Stephanie Scott and Tom Morphet suggested those tasks be delegated to subordinate employees.
“(The) manager will delegate to public works director all decisions regarding construction contracts that involve her brother, Roger Schnabel, Southeast Roadbuilders,” Scott said during a proposed amendment to Debra Schnabel’s contract.
Public facilities director Brad Ryan, who served as interim manager, said the amendment doesn’t solve the problem the assembly needed to discuss during a separate public meeting.
“One, that’s throwing the director of public facilities under the bus, and two, it doesn’t solve the problem,” Ryan said. “You still need code revision for that to happen.”
Chandler recommended, if the assembly wanted to allow Roger Schnabel to contract with the borough, that the assembly change code to define “immediate family member” to include only spouses, parents and children.
One member of the public, Diana Lapham, urged the assembly to wait on the hire until they figure out the conflict of interest issue. Others didn’t want the assembly to change code.
“I think that Ms. Schnabel has a big conflict of interest apparently, according to the attorney, and rumors are going around about changing codes to accommodate that and I think that would be a very big mistake,” Don Turner Jr. said during public comment.
Morphet said the information in the attorney’s memo was “Mr. Schnabel’s issue quite frankly,” and that the assembly should move ahead with the contract.
“If we want Mr. Schnabel’s services in a competitive bid, we’re going to have to either change the code or work something out,” Morphet said. “I believe we can either work something out or change the code.”
Audience member Doug Olerud said the assembly failed in its obligation to look after the borough’s financial interests because of the prohibition against Southeast Roadbuilders. He asked why the assembly didn’t address this issue during the past several months of the manager hire process.
“That’s the frustration in the community is these small things like that, that aren’t being done in this body,” Olerud said. “You’re not looking at the little things. You’re not looking at the details. I think Debra has an opportunity to be a good manager but you’ve hamstrung her at the very start by not dealing with these serious issues before hiring her as your manager.”
Debra Schnabel suggested that aside from the lands manager, the Mayor could also review land use applications to ensure fairness.
As far as waiting longer on the manager hire, Ryan said he’d prefer to see Debra Schnabel hired sooner than later because he and another staff member are covering three jobs.
Ryan also addressed current Southeast Roadbuilders contracts and said they aren’t in jeopardy.
Assembly member Heather Lende asked Ryan if there would be difficulty in managing potential contracts before “we come up with a conflict of interest firewall.”
Ryan said there wouldn’t be.
The assembly will further address the attorney’s memo during its June 13 regular meeting.
The assembly must also make additional amendments to Debra Schnabel’s contract at that meeting.
Her salary is set at $93,600, a figure Mayor Jan Hill said was too high. That salary makes Schnabel the second highest-paid employee in the borough, behind police chief Heath Scott, who was hired last year and is paid $97,850.