Montclair and its insurer have agreed to settle a suit by the township’s chief financial officer for $1.25 million, after she alleged retaliation for raising concerns that members of the township council were receiving healthcare coverage they weren’t entitled to as part-timers. The settlement with township CFO Padmaja Rao was announced during a council meeting Monday night, one day before a municipal election in Montclair that will result in an entirely new mayor and council when the township reorganizes in July. The settlement of the suit, filed in October 2022, was later confirmed by one of…