Lori Jolley, an accounting clerk in the finance department of the city, said she came in after hours one night in October to create a check for Olsen, who said he needed the money before he left for the conference.

Nearly two weeks later, Olsen came into Jolley's office to talk.

"He closed the door, he then explained he was unable to attend the Utah Water Law Conference," Jolley said. "His wife was on bed rest and she was ill and he was unable to attend. He said that he wanted to know what could be done about reimbursing the city and if there was anything that could be done about changing the request."

She said he then said, "You know this is going to look really bad. I have a lot of enemies."

Olsen brought in a personal check the next day to reimburse the city, Jolley said.

Yengich asked Jolley if there were any written city codes or rules that stipulate how reimbursements are to be administered. Jolley said there were not.

"So the mayor, as the chief financial officer, he set the rules as to how reimbursement would occur and if it would occur," Yengich said. "So if the mayor's idea was ... 'If I'm overpaid, I'll pay it back,' as far as you were concerned, he got to set the standard?"

"Yeah, I suppose," Jolley said.

Jolley said that if there were concerns regarding reimbursements with another employee it would be discussed with their supervisor.

Olsen also resigned from the Utah Highway Patrol last year after admitting he lied about having a master's degree in public administration.

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E-mail: sisraelsen@desnews.com