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Commission approves amended solid-waste JPA with Navajo Nation with five-year term and interest provision
Summary
The county approved a third amendment to the joint powers agreement with the Navajo Nation for operation of solid-waste transfer stations, replacing a perpetual term with a five-year cap and agreeing to pursue adding an interest/penalty provision to address an outstanding balance estimated at roughly $500,000.
San Juan County commissioners approved an amended and restated joint powers agreement with the Navajo Nation that governs operation and maintenance of solid-waste transfer and compacting stations (Shiprock, Upper Fruitland, Sand Springs). The primary revision, requested by the Navajo Nation Department of Justice, replaces a perpetually renewing JPA with a term capped at five years.
County staff said the financial arrangement remains that the Navajo Nation deposits funds estimated to cover operations for each federal fiscal year (starting Oct. 1), with quarterly reconciliation against user-fee revenues; if a deficit occurs the county invoices the Nation on a quarterly basis. Staff told commissioners the Nation has accrued a past-due balance of approximately $500,000 over the last 13 months and has been notified repeatedly; county staff said they have been carrying the operations on available solid-waste fund balance while continuing quarterly coordination with Nation officials.
Commissioners discussed whether the county should add penalties or interest on outstanding balances to encourage timelier payments. A commissioner moved to approve the agreement and amend the motion to include an interest provision; another commissioner seconded, and the motion carried by voice vote. Staff noted the JPA still requires Navajo Nation approval and then likely state Department of Finance and Administration sign-off; once finalized the Nation is expected to make good on outstanding balances and pre-fund the next fiscal year.
The county stressed the service value to Nation residents and the risk of service interruption if funds are not provided. The vote approved the amended JPA but left final fiscal enforcement language to staff negotiations and future approvals by the Nation and state.
