REHOBOTH BEACH —Through threats of lawsuits and calls for resignation, Rehoboth Beach city commissioners upheld an earlier decision to approve the contract and hire Taylour Tedder as city manager during a special session on July 8.
The meeting was called in response to an opinion issued by the Delaware Attorney General’s Office in late June finding that the city had violated community notification standards regarding Mr. Tedder’s hiring process.
“We determine that the Board of City Commissioners violated the FOIA by holding an executive session for an improper purpose, failing to provide proper notice of two executive sessions, and failing to provide notice of a public comment period on agendas…” reads the June 26 decision, signed by Deputy Attorney General Dorey Cole.
The opinion recommended that the board meet again to discuss the contract, including compensation and allow time for public comment, which it did for about an hour and then voted unanimously to approve its earlier decision.
Before the meeting, Mayor Mills said he was interested in the debate and hearing what people had to say, but there was little chance he would change minds.
Before the meeting and during open session, other board members broadly agreed with the mayor’s sentiments as they voted to affirm his previous actions.
The audience, made up of more than 50 citizens, about half of whom spoke, agreed with the board that this situation was not Mr. Tedder’s fault but rather a matter of procedure and the compensation package, but that was where the agreements ended.
One of the first comments came from attorney Ted Kittila, who said his client, Thomas Gaynor, is prepared to move forward with a lawsuit over the hiring procedures.
Mr. Gaynor was present at the meeting and said the lawsuit would “go away” if the mayor resigned.
Mr. Mills did not agree during the open session.
Mr. Gaynor is also a member of the group that first alerted the attorney general to the potential violation of the Freedom of Information Act.
Many public comments included apologies to Mr. Tedder for the scrutiny and praise for his negotiating skills, though they had the opposite impression of his elected officials.
“The contract is not generous, it’s not luxurious, it’s outrageous,” Joel Fraden said.
Mr. Fraden pointed to online communities and podcasts targeting city managers who expressed surprise at the content of Mr. Tedder’s contract.
The contract itself begins with a salary of $250,000, a generous increase of about $90,000 over the previous Rehoboth Beach city manager and for Mr. Tedder personally, who had been earning a salary of about $187,000 annually in his previous position in Boulder City, Nevada.
Which might be enough in itself to raise an eyebrow, but attendees were more upset about the housing allowance, which the city says was included to promote Tedder’s longevity in the job.
The contract provided for a forgivable, interest-free loan of $750,000 to purchase a home 15 miles from city hall.
After four years, if Tedder remains in office, 15 percent of the loan, or about $112,000, will be forgiven. The following year, another 15 percent will be forgiven. In the sixth year, 30 percent of the loan will be forgiven, and on the seventh anniversary, the entire loan will be forgiven, according to the contract.
“We need a city manager who lives nearby, and the city commissioners were able to get that done for us,” said Lyn Achenbaum, one of the few who spoke in favor of the contract.
Suzanne Goode said she felt personally offended by the housing subsidy, as she has been fighting for a similar mechanism for cadets and lifeguards in the city.
Although it was beyond the scope of the meeting and therefore not addressed by the commissioners, several people also mentioned a provision in the city of Rehoboth’s charter that they say excludes Mr. Tedder from consideration for the position he has held since April.
Which complicates the annulment angle sought by certain citizens because there is an executed contract with the city between it and Mr. Tedder, said Alex Burns, the city’s attorney, opening the city to a lawsuit in any case.
The City of Rehoboth Beach also violated the FOIA by hiring Mr. Burns, about six months before Tedder’s announcement.
Prior to the meeting, Mr. Tedder said he was excited about the opportunities Rehoboth Beach had presented to him and looked forward to serving the residents and business community.
Staff writer Brian Gilliland can be reached at 410-603-3737 or bg@iniusa.org.
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