Rolling Meadows and mayor reach settlement with fired city manager
After months of controversy and tension at City Hall, Rolling Meadows reached a settlement Friday with former City Manager Barry Krumstok.
The longtime administrator was fired by aldermen July 13, a day after he filed a federal employment retaliation lawsuit against the city and Mayor Joe Gallo.
In a joint statement, both sides said "the settlement is in the best interests of all parties. The mayor and the city deny the material allegations in the recently filed lawsuit."
There's no word yet on how much the settlement might cost. The agreement still must be approved by the city council.
"The settlement is funded through the city's insurance coverage provider and will therefore not impact the city's budget or residents' taxes," the statement provided by city attorney Melissa Wolf indicated.
Krumstok said in his lawsuit that Gallo put him on administrative leave and asked for his resignation in early July because of a March 2019 report by the city manager that found then-Alderman Gallo harassed another council member, Alderman Laura Majikes. Krumstok contended that since becoming mayor in April 2019, Gallo had threatened to fire him multiple times in retaliation.
The Rolling Meadows City Council later gave Krumstok a list of nine reasons they voted to fire him, including a lack of alignment with the council's vision for the city and resistance to change.
Krumstok, who is Jewish, also alleged religious discrimination in his complaint, saying the mayor had commented inappropriately when he took time off for religious holidays.
Gallo denied improper behavior in the encounter with Majikes. Friday's announcement notes, "the mayor remains resolute in his support of diversity and inclusion."
It also states "the city recognizes Mr. Krumstok for his 22 years of dedicated service to the city and wishes Mr. Krumstok well in the future."
Mediation talks in the dispute started on Wednesday.
When asked about the resolution or details of the financial settlement with Krumstok, Gallo said he had no comment.
Krumstok did not return a phone call from the Daily Herald and his attorney declined to speak about the matter.
• Daily Herald reporter Chris Placek contributed to this story.