Loxahatchee Groves council approves sending mutual termination to PBSO, withholds premium payments

The Town of Loxahatchee Groves council voted 3-2 on Jan. 20 to send a proposed mutual release and termination agreement to the Palm Beach County Sheriff's Office (PBSO) and to withhold further premium payments while pursuing negotiation.

Town Attorney Kurtz told the council PBSO's counsel indicated it would be "unlikely to approve the mutual termination and release agreement" and that PBSO's correspondence asserted the town was in breach of the contract for nonpayment. Kurtz said PBSO notified the town it would cease providing services as of Jan. 13 and outlined the town's potential legal exposure, noting the existing contract does not include a prevailing-party attorney-fee provision but that state statutes can create fee risk in narrow circumstances.

The move came after councilors disputed whether the town should pay for months PBSO said it did not provide "premium" services. One council member said the town had set money aside during budget talks and "we do have the ability to pay," while others argued the premium contract allocates funds to services the town does not need and that those dollars are better directed to infrastructure or held pending negotiation.

Council members debated the contract's termination notice timeline, with the attorney noting a March 31 deadline in the contract for termination to be effective the following October. The council considered three options offered by counsel: continue payments and honor the contract; accept PBSO's demand and resume normal operations; or seek a mutual termination that would release both parties from future obligations. After discussion the council voted to approve sending the mutual-termination papers to PBSO and to withhold further premium payments while staff seeks a formal response.

Resident Phyllis Manilla, during public comment, urged clarity over who should pay for sheriff services: "Every taxpayer in Loxahatchee Groves has been and will continue to contract sheriff services through our Palm Beach County taxes," she said.

What happens next: Town staff and the attorney will finalize the mutual release and termination document and forward it to PBSO for signature. The attorney said the document will be returned to council when fully executed and that council could ask for formal ratification at a subsequent meeting.

Authorities and procedural notes: The attorney referenced Florida statutory provisions that can affect attorney-fee awards and confirmed the town charter's Section 11.2 restricts establishing a town police department without a referendum. The existing contract was described in the meeting backup; PBSO's attorneys (Gunster) had sent a demand letter referenced in the packet. The council did not vote to establish a new police department at the meeting.