Rehoboth commissioners look to end city manager lawsuit

In an effort to end a lawsuit challenging the hiring of City Manager Taylour Tedder, Rehoboth Beach commissioners voted in favor of a few measures that are intended to make the lawsuit’s arguments moot.

A lawsuit was filed roughly a year ago by residents alleging the city violated its charter and the Freedom of Information Act when discussing and voting on Tedder’s contract. In a decision issued in May, Vice Chancellor Bonnie W. David said claims that the city violated its charter could move forward.

Among the requirements laid out in the city charter related to qualifications of a new city manager is one about candidates having at least four years of experience as a city manager. Tedder had been an assistant city manager for a number of years, but when he began his tenure with the city, he had two years and nine months as a city manager. Having now worked in Rehoboth since May 2024, he reached that four years of experience threshold Aug. 9.

Mayor Stan Mills introduced the agenda topic. First, he called the lawsuit, and its proposed settlement that included the resignation of two elected officials, political theater. Then he introduced the measures — ratifying Tedder’s hiring and his contract; acknowledging that Tedder has performed his obligations since being hired; and proposing a reclassification of Tedder in title only from city manager to acting city manager for the period of time he had worked up to the Aug. 15 meeting.

“During argument before the vice chancellor, regarding the motion to dismiss, she noted that once Mr. Tedder had accrued four years’ experience as a city manager, which he did recently, the remaining claims would be at least partly mooted,” said Mills. “The residents of the city have a significant interest in the timely and cost-effective resolution of the litigation; three motions are being presented today to end this litigation.”

Commissioner Suzanne Goode voted against all three measures. She accused the attorneys from Morris James, the law firm attorney representing the city in the lawsuit, of rewriting history. She also said Tedder shouldn’t be paid the contract’s salary for the period worked as acting city manager.

Commissioner Craig Thier said the city is being sued, and he understood why the measures were being brought forward, but he would be voting against the first and third ones. Over the course of the past year, he’s been very transparent about the process of hiring Tedder, and he would not have voted in favor of the compensation package in the beginning, he said.

“I do not support the contract, and I’m not going to change my mind today,” said Thier.

Nancy Doyle, a Country Club Drive property owner, said she supported the measures because Tedder has been doing the job and has done it well.

“He’s really doing a good job, and as a taxpayer, I would like some closure on this,” Doyle. “Maybe there was a mistake made when this was done, and I get that, but this is where we are.”

Ultimately, individual votes were held on all three measures, and all three passed.

Following the meeting, Mills said the favorable votes do not end the lawsuit, but he wasn’t exactly sure what the next steps would be in the process.

City Solicitor Lisa Borin Ogden said the results of the votes would be passed along to the attorneys from Morris James, and they would handle it from there.