Marseilles, city’s mayor pay $15,000 in exchange to drop discrimination complaint in confidential agreement

Documents show that the city of Marseilles and Mayor Jim Hollenbeck reached a confidential agreement to pay a city official $15,000 in exchange for dropping a discrimination complaint.

The employee filed a “charge of discrimination” with the Illinois Department of Human Rights and the Federal Equal Employment Opportunity Commission against the city and Hollenbeck, according to the May 31, 2023, agreement received by Shaw Local through a Freedom of Information Act request.

The document specified that $10,000 would be made payable in two separate checks to City Clerk Lesley Hart and her attorneys by the city’s insurer, then $5,000 would be made payable to Hart and her attorneys by Hollenbeck no less than 30 days after the agreement. The document said once Hart received payment, she would dismiss her charge with the IDHR and EEOC.

A mediation was held May 31, 2023, which resulted in the confidential agreement, according to the document. Each party denies wrongdoing or liability in a desire to amicably resolve the pending charges, according to the document.

Hart and Hollenbeck also agreed to “strict confidentiality” and nondisparagement, meaning either side will not be derogatory to one another moving forward.

The document includes only Hart and Hollenbeck’s names and no other elected or city officials.

An investigation summary report also was conducted in October 2022 pertaining to examining whether the mayor was creating a hostile work environment, “as a result of his interaction with a number of the employees of the city of Marseilles.” The complaint, according to the investigation, was based largely on employee reports of “repeated outbursts by the mayor.”

That report recommended that the city notify its liability insurance carrier, also saying “something needs to be done immediately to stop the mayor from putting Marseilles in peril.” The investigation suggested Hollenbeck curb his outbursts, perhaps take training to do so, and not be allowed to give direct orders, requests or any other city business directly to certain employees. The recommendation said the mayor’s behavior could lead to future litigation and suggested the council investigate the process of equitably removing a mayor from office should he become noncompliant.

Reached for comment, Hollenbeck said in a statement that the matter was not brought up or discussed at public meetings because city employee records are confidential.

“I do not ever want our community members to feel the city is hiding anything from them,” Hollenbeck wrote. “In this case and regarding all personnel issues (past, present and future), the parties involved were and are bound by confidentiality. This guideline is followed by public organizations like our city and all other municipalities in the state, as well as by private business.

“My serious concern now is there are individuals within the city who are blatantly violating legal confidentiality requirements, essentially telling our employees their personal information will not be protected, and many have expressed deep anxieties about this. Now, the city must consider taking legal action against this total disregard of the law to ensure it doesn’t happen to any other of our valued employees.”

Marseilles commissioners Melissa Small and Jim Buckingham declined to comment, saying they will follow corporation counsel’s advice to refer all matters regarding FOIA requests to its legal representation. Commissioner Bobby Kaminski did not respond to inquiries. Hart did not comment when asked through her attorney.

Commissioner Mike Scheib said he is “ashamed” and “heartbroken” over the matter.

“The actions that led to the payouts were morally reprehensible, the city’s inaction in response was morally reprehensible, and I am actively ashamed of the mayor and the council,” Scheib said. “I’m mad at a wicked system, I’m mad at a coverup, I’m mad at sexual harassment, I’m mad about the mayor lying about it on the radio, I’m mad at those who now know about this and are still defending him. I am actively ashamed of the council.

“This is inexcusable. Really? In 2024, this is how we act?”

Scheib, who was elected in April 2023 to the council, also said he was not made aware of the agreement until “well over a year later” and only learned of it through reluctant city channels, that he “was not made aware by any member of the City Council or the mayor” or city residents.

He added that he withheld any public comment because Morris attorney Randolph Gordon, who represents both Hollenbeck and Hart, threatened to sue the city and him personally for disclosing the “contents of items contained in personnel [files] and covered by a [nondisclosure agreement].”

“Initially when I was asked what should be done, I suggested that all three documents should be released but with names redacted,” Scheib said. “Had they done that, it would have saved the taxpayers of Marseilles $23,000 (in legal fees dealing with FOIA requests). They chose not to listen to me.”

Hollenbeck said in his statement that the previous city attorney had informed the council of the situation, and he had “learned the reason this confidential information has been made public is due to one of them sharing background on it with your news organization.”

Scott Damnjanovic, who has commented at city meetings, brought the mayor’s behavior to the public’s attention during a Marseilles City Council meeting over the summer. Damnjanovic shared a document pertaining to the October 2022 investigation of Hollenbeck during that meeting, and Shaw Local filed a Freedom of Information Act request for that investigation and any related documents that followed as a result, receiving the agreement between the city and Hollenbeck.

Hollenbeck believes that the agreement should not be public information, despite it involving an elected official and an expenditure of city funds.

“Personnel issues are always confidential, not just in this specific case,” Hollenbeck said. “Our employees and any personnel issues deserve privacy as dictated by our laws.”

News editor Derek Barichello contributed to this report.