Mayor Rahm Emanuel also named Frank Clark to replace David Vitale as head of the Board of Education.
Parent and community groups are organizing three forums to inform the public on how talks are going.
Board of Education Vice President Jesse Ruiz will "enjoin the duties" as interim CEO as well.
The feds are investigating a no-bid contract awarded to Byrd-Bennett's former employer.
Two school days were added on to the school year after the February cancellations, CPS said.
More than 800 families had selective-enrollment applications rejected as incomplete.
Community groups are proposing an open-enrollment green technology school in Dyett.
Now that the Pilsen school's council has voted to fire her, CPS will approve or deny the recommendation.
The City Council Health Committee took up the issue of sleep deprivation among teenagers.
The current school will shut down at the end of this year, before the new school opens in 2016-17.
Ald. Margaret Laurino submitted a resolution calling for hearings on the issue.
Dyett High School was scheduled to close at the end of the upcoming school year.
"His continued leadership of the school would be a distraction," CEO Barbara Byrd-Bennett said Friday.
Education groups said the alderman never bothered holding meetings before claiming neighborhood support.
Ald. Pat Dowell promised to appeal to CPS officials on behalf of Mollison.
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