A settlement offered to the City of Rehoboth Beach to end a lawsuit seeks the resignation of elected officials. 

City Solicitor Lisa Borin Ogden provided the information at a July 18 commissioner meeting. City officials got into an argument July 7 about the issue after Commissioner Suzanne Goode pressed for information on the settlement offer. But because the topic was not on the agenda, there was no discussion on the lawsuit.

Because the topic was on the July 18 agenda, Ogden said it was appropriate to provide an update. 

“As the intent is clear, this offer merits no discussion and warrants no consideration by the full commission,” said Ogden.

City Manager Taylour Tedder began working for Rehoboth Beach May 15, 2024. Among other things, his contract calls for a $250,000 annual salary, plus $50,000 in moving expenses and a $750,000 home loan that will be forgiven in full if he stays for seven years.

His immediate predecessor, Laurence Christian was hired at a starting salary of $160,000. Christian was on the job for less than a year. The city manager prior to Christian was Sharon Lynn, who began with a salary of $120,000, but it had risen to $141,250 by the time she left in May 2022 after a decade on the job.

A lawsuit was filed by residents alleging the city violated its charter and the Freedom of Information Act when discussing and voting on the Tedder’s contract. In a decision issued May 28, Vice Chancellor Bonnie W. David said claims that the city violated its charter can move forward, while claims the city violated the FOIA cannot.

Goode continues to ask how much the city has spent to defend the lawsuit, because legal fees could be a reason to settle.

“To be clear, the legal fees are driven by the plaintiff’s actions, the litigation they commenced, and the bills will continue to mount as the city must put forth a defense,” said Ogden.

As of July 8, the city had spent about $150,000.

After Ogden’s comment, Goode acknowledged she had received the information she was asking for at the previous meeting. She then made a motion to conduct a special meeting so commissioners who were not on the board when Tedder was hired could discuss the lawsuit. Her reasoning for the meeting was similar to why she wanted the information – it’s her opinion that the commissioners involved in the lawsuit who were in office when Tedder was hired have a conflict of interest and are continuing to defend a bad decision with the taxpayers’ money.

Commissioner Craig Thier seconded and then voted in favor of having the meeting. Prior to the vote, he said he didn’t want to appear to not be interested in his fiscal responsibility as a commissioner.

Ultimately, the motion failed, but not before Commissioner Mark Saunders asked for more information, because he has also not been provided any information on the lawsuit. 

The settlement offer requires that certain elected officials resign from their positions and agree to never seek office again, said Ogden.

The vote was then taken, and the meeting moved forward with the remaining agenda.

Following the meeting, the city declined to name the specific officials, why the offer wasn’t legitimate, if there’s been a counteroffer made, what happens if the city loses the lawsuit, and if a court date has been set for the hearing.

Lynne Coan, city spokesperson, said the city respectfully declined to answer any further questions on the matter.

In less than two months, regardless of the outcome of the city’s upcoming election Saturday, Aug. 9, five of the seven commissioners who hired Tedder will no longer be on city council – Tim Bennett and Toni Sharp didn’t run for re-election last year; Don Preston resigned in November; sitting Commissioners Edward Chrzanowski and Francis “Bunky” Markert are not running for re-election this year. The two remaining elected officials who participated in the hiring are Mayor Stan Mills and Commissioner Patrick Gossett.