Dinner casts doubt on trust

Critics of Newport Beach City Manager Homer Bludau are pointing to free meals from a Newport restaurateur and his request for valet parking signs being honored in 2005 as a conflict of interest.

But Bludau fired back that the two were not related. Bludau received free meals worth $420 from June 2004 to June 2005, courtesy of 21 Oceanfront restaurant owner Leo Gugasian, according records filed with the state’s Fair Political Practices Commission. The city manager’s office requested valet parking signs in July 2005 and it was granted, records show.

A month later, Bludau received another meal worth $110 from Gugasian, and he also received more free meals from the restaurateur worth $230 in 2006, according to the records.

Gugasian said he never approached Bludau with his parking request. He talked to the city attorney who he assumes passed the message along.

“The parking is the whole key down here. If you don’t have parking you’re not going to survive,” Gugasian said. “I’m sure I’m not the only guy who bought him lunch or dinner. He’s the city manager — he’s done a fantastic job for the city.”

Gugasian also gave Bludau a religious cross valued at $200, according to filings with the California Fair Political Practices Commission.

The city manager’s office requested signs for limiting 10 public parking spots on West Oceanfront to become exclusively valet spots for the restaurant from 6 p.m. to midnight. In the months leading up to the request, Bludau reported eating there twice on the house for a total of $210, and again a month after the request was submitted for $110.

The city employee manual specifically addresses potential conflicts of interests, such as free tickets, gifts or meals, saying among other things, to avoid such things if it would even appear to be a conflict.

“People would be stopping there and [getting valet service], and people were getting upset because there was a big back-up there. Someone suggest that we could designate some parking there from 6 p.m on,” Bludau said.

He’s the city manager and it’s his duty to solve problems for the public, he said.

“If I didn’t do anything that didn’t appear to be a conflict of interest I’d probably never be outside,” he said. “I think in the past 10 years I’ve helped over 1,000 people. I’m kind of the head of the organization. I think that is my job. If I’m not breaking any laws and it seems like it’s a good idea I’ll do it.”

City Traffic Engineer Tony Brine said 21 Oceanfront is probably the only business in Newport Beach that has public parking designated as valet.

Brine said the only record he had of the signs being requested was from Bludau’s office, not through the channels of lower staff as some, not all, business owners go through.

“Generally, if they want to get it done quickly, they’ll skip over the staff level if they feel that’s what they want to do,” Brine said. “That happens quite frequently. For any type of project or request, they’ll go right past staff and go to another level. Not uncommon at all.”

Reporter JOSEPH SERNA may be reached at (714) 966-4619 or at [email protected].