During a recent special meeting, the Rehoboth Beach Commissioners discussed City Manager Taylour Tedder's controversial contract and took angry comments from the public, all while the newly seated manager listened in silence.
Tedder started his position in May with a $250,000 annual salary, plus up to $50,000 for moving costs and a $750,000 housing loan, forgivable after seven years. The commissioners, who have raised numerous fees this year to cover a budget shortfall, have faced intense criticism over Tedder's contract, which a city manager-podcaster called "groundbreaking" and said made his jaw drop.
The July 8 special meeting and ratification of Tedder's contract was recommended by the Attorney General's office, which found the commissioners had violated the Freedom of Information Act by discussing the contract in private sessions, but the commissioners may face more serious consequences.
Tom Gaynor, a 54-year-old attorney and one of the Rehoboth residents who filed the FOIA complaint, is preparing to sue the city, he said, because the commissioners failed to follow city charter requirements in hiring Tedder.
At the meeting, he said the lawsuit would "go away" if Mayor Stan Mills resigns.
Why the offer was made
Mills started the meeting by saying the board always believed it was following FOIA law and was disappointed in the Attorney General's determination.
"That said, though, the Board of Commissioners supports the Attorney General's commitment to openness and transparency in government and that is why we are here today," Mills said.
In explaining why he voted to hire Tedder, Mills said that in his 26 years as a full-time Rehoboth resident, he has known four city managers and participated in searches for three.
Rehoboth's city manager of over 30 years, Greg Ferrese, left the job in December 2013, Mills said. He was followed by Sharon Lynn, who was with the city for eight years, he said, and when she left, her salary was about $140,000. The city then hired Laurence Christiansen, who resigned after 10 months, at a salary of $160,000.
Background:Offer he couldn't refuse: Inside the Rehoboth Beach City Manager's million-dollar contract
"One of the things I learned at that point was that the longevity of a city manager of 30 years or even eight years is a thing of the past," Mills said.
The city manager market is extremely competitive, according to Mills. There are many openings and a small number of qualified candidates, he said, making competitive compensation necessary. During the latest search, several top candidates withdrew their candidacy, "being courted by other municipalities," Mills said, and "citing salary and cost of living concerns."
"It's no secret that housing is expensive in our area, and the conditional loan is part of what made our offer competitive," Mills said.
Mills was the only commissioner to speak before public comments, except for Commissioner Francis Markert, who spoke only to say he was not present when the commissioners voted on Tedder's contract back in April.
Rehoboth residents voice frustration over Tedder's compensation
Most of the commenters at the meeting were angry and disappointed.
Tedder's compensation is "outrageous," "over the top" and "unfathomable," they said. One woman told Tedder directly he "lacks conscience" and that his mother would be disappointed in him, while another said he said he might be "nice enough to renegotiate."
"I think it was a serious lapse of judgment to have Mr. Tedder sit here during this conversation, and I apologize to Mr. Tedder," former Rehoboth Beach Commissioner Lisa Schlosser said. "It's not your fault. You're, like, the best negotiator in the world and we're lucky to have you."
Facing a lawsuit, some of the commissioners should consider resigning, she said.
"Do you care about your ego, and staying on that commission and staying on that dais, or do you care about saving the citizens years in court and litigation costs?" Schlosser said.
How Tedder's contract may have violated the city charter
Former Rehoboth Beach Mayor Sam Cooper said at the meeting he believes Tedder's contract is in violation of the city charter, specifically the termination clause.
The charter states that the city manager may be removed by a majority vote of the commissioners, but Tedder's contract goes further, stating there must be a supermajority (at least six of the seven commissioners) to terminate him 90 days before or after an election. Rehoboth Beach will hold a municipal election Aug. 10.
"To me, that's in direct violation of the city charter," Cooper said.
Gaynor believes the commissioners violated the charter because Tedder is not qualified for the job as outlined by the charter, which states that no person shall be appointed to the position without one of the following: a college degree in engineering, at least four years of experience as a city manager or at least four years of "practical engineering experience."
"The guy's not an engineer and he was a city manager for two and a half years," Gaynor said when reached by phone.
A news release from the city upon Tedder's hire said he started as city manager of Boulder City, Colorado, in 2021. Prior to that, he was an assistant city manager for five years, the release said.
Commissioners standing by their decision
Following public comments, Mills said he was not swayed against his original vote to hire Tedder.
"I believe I, or we, did the right thing for the future of Rehoboth," he said, and pointed out Tedder's contract couldn't simply be nullified or amended.
Commissioner Toni Sharp said she doesn't often agree with Mills, but she does on this matter. Commissioner Francis Mackert said he realized Tedder's contract would be "politically untenable" and "tough to sell," but believed it was the best thing for the city.
"(Tedder) is the right guy for the right time," Commissioner Edward Chrzanowski said.
Following their comments, the commissioners voted unanimously to ratify Tedder's contract.
Shannon Marvel McNaught reports on southern Delaware and beyond. Reach her at smcnaught@gannett.com or on Twitter @MarvelMcNaught.
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