Flagler County approves mutual separation and severance for county administrator after contentious debate

Flagler County commissioners voted to approve a mutual separation agreement and severance package for County Administrator Heidi Petito following extended discussion and public testimony.

Petito submitted the separation agreement as a path for a smooth transition and said she would remain on staff to help complete the county’s FY2027 tentative budget if the board requested — indicating a target separation no later than July 14, 2026, or earlier if an interim or permanent replacement is appointed. County legal counsel advised the board on contract language required to make severance consistent with the administrator’s 2021 employment agreement and proposed edits to characterize the outcome as a mutual separation rather than a voluntary resignation.

Commission debate focused on whether the county should accept a negotiated severance that included a general release of potential claims tied to prior employment questions. Supporters said the separation and transition plan would protect institutional knowledge during budget season and reduce operational risk; opponents argued Petito was not entitled to severance under the contract’s voluntary-resignation clause and questioned taking what some called a precedent-setting payout.

The matter prompted substantial public comment. Several current and former county employees and residents praised Petito’s years of service and urged officials to approve a constructive transition. Other speakers criticized the board’s handling of personnel matters and objected to providing severance to a long‑tenured public official who already receives retirement benefits.

The board approved a motion to accept the mutual separation agreement, to schedule a near-term workshop on hiring an interim or permanent administrator, and to allow the administrator to remain through transition tasks (including the budget presentation) until a replacement is in place or July 14, 2026, whichever is earlier. The motion also authorized moving forward with the severance package as drafted with agreed revisions to reconcile the separation instrument and the 2021 employment contract.

Next steps: staff will schedule a public workshop to review interim recruitment options and timing, and human resources will coordinate the operational steps for transition and records. The commission directed legal and HR to finalize the revised separation agreement language for implementation.