DERRY | The town will have a new leader.

The Town Council voted 5-2 Tuesday night, May 15, to hire Gary Stenhouse, a former Rochester city manager with 29 years of experience in municipal government. Stenhouse was chosen over Carter Terenzini, the town administrator in Spencer, Mass., and James Thomas, the town manager in Old Orchard Beach, Maine.

Stenhouse, 53, said Tuesday night by telephone he had just learned of his selection and was excited about accepting the job.

"Great community, a lot of possibility there," Stenhouse said, adding that he would bring to the job "perspective, experience and the ability to get people to work together."

Council Chairman Craig Bulkley said Stenhouse is well-qualified for the position.

"He's going to move Derry forward," Bulkley said. "He was in Rochester, a difficult city to manage, for nine years. It's not too much of a reach for him to come here and be successful."

But councilors Kevin Coyle and Janet Fairbanks disagreed, saying they wished the council extended the search to attract more candidates.

"In my opinion, we needed a dynamic town manager to move this town in a new direction," Coyle said. "That's not who we hired."

Fairbanks agreed, saying, "Do I think he's capable? Yes. But I felt we could have taken more time. No one jumped out at me."

Twenty people applied for the position, and eight were deemed qualified.

Stenhouse works for the New Hampshire Public Risk Management Exchange, known as PRIMEX, a pooled insurance company that provides workers' compensation and unemployment insurance to school districts and municipalities.

He joined PRIMEX after leaving Rochester five years ago with nine years on the job.

Stenhouse said he started his career in Maryland and managed three towns in Connecticut before moving to his job in Rochester, where he now lives.

As a city manager, he was responsible for hiring personnel, managing the budget, and making sure public policies were carried out. Rochester -- 36 miles northeast of Plaistow -- is New Hampshire's fifth-largest community with a population of 28,500, according to 2000 U.S. Census figures.

Stenhouse's salary and start date still need to be worked out, Bulkley said last night. The position was advertised for between $110,000 and $125,000, plus benefits. Residency is required.

Town Administrator Russ Marcoux left in February after 2-1/2 years in Derry to become town manager in Bedford. Former Derry School Superintendent John Moody has been filling in as the interim town administrator while the council worked to find a permanent replacement.