Commission tables request to serve as fiscal agent for San Juan Dene River Water Users
Summary
County commissioners tabled a request from the San Juan Dene River Water Users Association to serve as fiscal agent for capital outlay purchases after questioning security, past equipment thefts, audit records and oversight; the board asked for additional documentation and will reconsider the request in January.
SAN JUAN COUNTY, N.M. — The San Juan County Commission on Dec. 15 declined to act immediately on a request from the San Juan (Dene) River Water Users Association to have the county serve as fiscal agent for 2026 capital outlay funding, instead voting to table the matter until the first meeting in January.
Dan Smith, identified in the meeting as the association’s acting interim CEO, told commissioners the group serves roughly 880 farmers, manages about 15,000 acres and has built roughly $10 million of infrastructure in areas including Shiprock and Mesa Farm Road. He said the association seeks county fiscal‑agent status so it can purchase large equipment for canal cleaning and repairs.
Commissioners pressed Smith and other speakers on multiple points: past thefts of equipment (Mr. Smith said trucks and keys were stolen previously but that perimeter fencing, concrete blockers and GPS monitoring are now in place), whether the Navajo Nation declined to act as fiscal agent (county staff said a letter from Jason John of the Navajo Department of Water Resources indicated the Nation lacked capacity), and how the association accounts for funds and audits. Several farmers said they have been left out of irrigation repairs and reported being quoted $8,000 to connect to new underground pipe lines.
County staff (Mister Stark) and commissioners said any fiscal‑agent arrangement would require a formal lease and insurance meeting county carrier requirements; staff said the lease can require the water users to provide insurance and prevent county gap funding beyond grant amounts. Given outstanding questions about procurement controls, past theft, auditing and distribution of benefits to farmers, Commissioner McDaniel moved to table the request until January; the motion carried unanimously.
The commission requested documentation — including the Navajo Department of Water Resources letter and audited records — before reconsidering the fiscal‑agent request ahead of the upcoming legislative session, when potential appropriations may be considered.
