No action taken on firefighter after huddle

The Brainerd City Council on Monday held a lengthy closed session to discuss issues surrounding a paid on-call firefighter who has pleaded guilty to embezzling more than $600,000 from the Mille Lacs Band of Ojibwe. But the council took no action when members returned to open session.

In an offer made July 9 that was marked confidential but given to the Dispatch and other members of the public by council member Bob Olson, Eric Makowski-Budrow offered to release the city from legal claims in return for $50,000.

Olson previously said he objected to Makowski-Budrow's offer and that it was his right to release the confidential information on the offer based on a 2001 memo and 2001 council minutes in which City Attorney Tom Fitzpatrick said council members have the right to exercise their judgment concerning how they can best execute their duties and responsibilities; and that though the council as a group can express their preference on how council members execute duties the council cannot prohibit members from exercising their best judgment on how to handle city business and resolve problems.

Olson was the only council member who voted against going into closed session Monday to meet with Fitzpatrick and attorneys from the League of Minnesota Cities. The council held no discussion on the issue before or after the closed session.

Following Monday's council meeting, Mayor James Wallin said he was upset that Olson would unilaterally release information the city's attorneys asked council members to keep in strict confidence.

"When an attorney states this is confidential, keep it confidential, it's in writing and everyone gets it, to me that should have been kept in confidence, not public information, until the attorneys have finished their work," Wallin said.

The settlement offer, outlined in letter marked "confidential settlement negotiations- not admissible as evidence" from Makowski-Budrow's attorney, Twin Cities-based Phillip Trobaugh, to City Attorney Tom Fitzpatrick, states that in exchange for a lump sum of $50,000, Makowski-Budrow would release the city from all legal claims by Makowski-Budrow and end his employment as a paid on-call firefighter.

In his letter to Fitzpatrick, Trobaugh states Makowski-Budrow has a legal claim against the city because the state's Data Practices Act was violated when Olson released information to the media regarding Makowski-Budrow's criminal matter and the city's investigation into the alleged wrong doing.

Trobaugh also wrote that some of Olson's statement have been defamatory, such as saying Makowski-Budrow wouldn't have been on city commissions or a paid on-call firefighter had the city performed background checks. Trobaugh said a background check was done, it was clean and the city hired Makowski-Budrow.

Makowski-Budrow resigned as a member of the Brainerd Housing and Redevelopment Authority and Planning Commission after it was learned he pleaded guilty in December in federal court to the theft of $660,000 from the Mille Lacs Band of Ojibwe.

Makowski-Budrow also was fired from his position at Summit Fire Protection, where recently he had been involved with installing a security system at the Brainerd Fire Hall.

Makowski-Budrow has not resigned as a paid on-call firefighter for the city of Brainerd.

Trobaugh said as a veteran, Makowski-Budrow would be entitled to a veteran's preference hearing should the city terminate him. He would have up to 60 days to make a request for a hearing, and would remain an employee and continue drawing pay until the outcome of the hearing.

The standard at such a hearing, Trobaugh wrote, would be if there is just cause for such a termination.

Olson said in a memo sent to City Administrator Dan Vogt to be distributed to the council, Fitzpatrick and the League of Minnesota Cities' attorney, that in Monday's closed session he would suggest Makowski-Budrow be placed on paid administrative leave without compensation. If Makowski-Budrow appealed in a veteran preference hearing, Olson said the city should seek a speedy hearing.

Olson also proposed there be no negotiations regarding Makowski-Budrow's claims that Olson violated Minnesota Data Practices Act, that the city reject and deny all alleged legal claims and inform Makowski-Budrow he has the opportunity to go through the judicial system.

Olson has said Makowski-Budrow's allegations are erroneous, completely false and unfounded. He said all the information he has provided the council and the public was from public court records and newspaper reports.

"Mr. Makowski-Budrow has done far more damage with his criminal action to defame his reputation, character and employment status than the statements made by me," Olson wrote in his memo.

And if his statements were the reason Makowski-Budrow was fired from Summit Fire Protection, Olson questioned why Makowski-Budrow was only seeking $50,000 from the city instead of hundreds of thousands of dollars.

Makowski-Budrow pleaded guilty in December to a federal charge of embezzlement of a tribal organization in an amount more than $1,000.

According to the plea agreement filed in U.S. District Court, Makowski-Budrow admitted he participated in a scheme by which he embezzled, converted and misapplied, for his own use and the use of others, money, funds, credits, assets and other property belonging to the Mille Lacs Band of Ojibwe. The theft totaled more than $660,000.

He admitted he rigged bids, participated in the creation of false documents and coordinated fraudulent and excessive payments to contractors as part of the scheme; orchestrated kickbacks from a vendor to enrich himself; and used a band account at Home Depot for himself.

The theft occurred between 2005 and June 13, 2007, and involved more than $1,000. The offense carries a maximum penalty of five years in prison, three years supervised release, a $250,000 fine and other costs.

MATT ERICKSON may be reached at matt.erickson@brainerddispatch.com or 855-5857.