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Commission approves amended JPA with Navajo Nation, adds term limit and interest provision
Summary
San Juan County approved a third amendment to its joint powers agreement with the Navajo Nation for operation of solid-waste transfer stations, adding a five-year term cap to JPAs and an amendment to allow interest on outstanding balances after staff reported roughly $500,000 owed to the county from the Nation.
San Juan County commissioners on July 7 approved an amended and restated joint powers agreement with the Navajo Nation to operate and maintain solid-waste transfer stations at Shiprock, Upper Fruitland and Sand Springs.
County staff explained that the Navajo Nation’s Department of Justice required JPAs to include a finite term rather than remain perpetual; the amendment therefore caps the agreement at five years with renewal options. Mike Stark, the county manager, told the commission that the financial arrangements otherwise remain unchanged: the Navajo Nation will continue to deposit funds estimated to cover the upcoming fiscal year’s operating expenses, and the county will credit revenues received from user fees against that deposit each quarter.
Stark said the Navajo Nation has accumulated an outstanding balance with the county of “pretty close to half $1,000,000,” a deficit carried for about 13 months. Commissioners raised concerns about ongoing deficits and whether the county should add incentives to encourage timely payment. Commissioner Gary McDaniel moved to amend the motion to add an interest or penalty provision to motivate prompt payment; the amendment was seconded and approved.
The commission approved the amended JPA; staff said the Navajo Nation will be expected to pre-fund future fiscal-year activity and that the county will continue quarterly reconciliation. County staff noted the agreement will also require approval by the Navajo Nation and, depending on implementation, by New Mexico’s Department of Finance and Administration.
The county emphasized the public-service nature of the contract: the Navajo Nation will continue to cover operating and maintenance expenses while San Juan County operates the stations, and the county’s primary objective is to avoid a service gap for Nation residents living in the transfer-station service area.
