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A recent history of awarding thousands of dollars in bonuses to top Gaithersburg officials has prompted new City Manager Angel Jones to consider revamping the reward system.

The closer look at the city's bonus system comes after at least one department head reported being unaware that the rewards existed. A group that represents cities statewide says that large bonuses are rare.

The city doled out $187,416 in bonuses over the past five years to 22 employees, with more than half of that money going to the city manager and assistant city managers over three years.

The latest round of bonuses — many of which were approved in September by the mayor and City Council — were given in October. Many of those who were given bonuses were asked to take on responsibilities during the city's 11-month search for a city manager.

Bonuses included $25,000-plus in perks to Acting City Manager James Arnoult, who received a 15 percent pay increase, retirement contributions and car allowance when he took on the temporary role when David B. Humpton retired from the position in October 2007.

Councilman Michael A. Sesma said that last month's bonuses, first reported in the Town Courier, were based on "kind of a special circumstance."

According to city data, Gaithersburg has a tradition of issuing "outstanding service awards," many to high-ranking city officials earning more than $100,000. Year-end bonuses have been issued "for years" and ultimately come out of the city's general fund, said city Finance Director Harold Belton. City code says the city manager makes such decisions for all other positions – and the mayor and council decide rewards for the city manager, typically in closed executive session.

Arnoult's fiscal 2009 salary as the city's director of public works is $145,904. As acting city manager, he earned $160,653, plus a $600 monthly car allowance and $803 in monthly contributions to his retirement plans, said Margaret Daily, the city's human resources director. His fiscal 2008 income increased $34,683 over the 11 months he was acting city manager before last month's $20,000 bonus plus two weeks' vacation worth $5,611.

Daily was given a $5,000 bonus for helping a paid consultant conduct the city manager search; she worked during a one-week scheduled vacation that coincided with city manager negotiations, City Councilwoman Cathy Drzyzgula said.

Three public works officials — Wally DeBord, Ollie Mumpower and Pete Geiling — received $4,000, $2,000 and $1,000 respectively for performing additional duties while Arnoult was at City Hall, according to Arnoult.

City leaders awarded contract employee Mary Boyle $2,000 for her work on affordable housing forums; Erica Shingara, environmental services director, received $500 for working on personal Leadership in Energy and Environmental Design accreditation.

Giving large bonuses is unusual, according to the Maryland Municipal League, a nonprofit organization that provides state municipal governments research and assistance.

"Let me say, I suspect strongly that they're rare," said Jim Peck, the group's research director.

Humpton received $20,000 or more each year from 2004-2006 and Assistant City Managers Fred Felton and Tony Tomasello received $8,000-$12,000 per year during those same years, according to city data. Sarah Paxton, Humpton's former assistant and the city's staff liaison to its election board, received the only bonus in 2007, which was $2,500.

Rockville City Manager Scott Ullery, who earns more than $190,000, said his bonus is the only one that Rockville city code allows and he has received a 10 percent bonus the last three fiscal years. Other administrative employees beyond police and unionized workers are eligible for up to 3.5 percent annual merit increases based on performance evaluations, he said. The city's pay-for-performance program also allows a possible a one-time bonus of 1.5 percent or 2.5 percent of an employee's salary.

Jones acknowledged that at least one department head reported not knowing bonuses were available and would have liked to nominate staff. Jones plans to continue cash bonuses and add other rewards, with some restructuring.

"My opinion is that when we award bonuses, that there should be a process and there should be parameters set in advance," she said. "I don't know that there were ever any guidelines about the amount of bonuses that would be awarded and I think that should be pre-determined based on budget, financial constraints and the like."

She envisions incentives for measureable improvements and communicated benchmarks.

"I don't think that there were clear guidelines before," said Arnoult, adding that Jones' plans to restructure "I think, is a good thing."