Rio Rancho Governing Body Regular Meeting - February 27, 2025

The Governing Body of the City of Rio Rancho held a regular meeting on February 27, 2025, from 6:00 PM to 6:58 PM in Council Chambers. Deputy Mayor Jeremy Lenentine presided in the absence of Mayor Greggory D. Hull, who was attending a Municipal League meeting in Santa Fe. All six councilors were present. The meeting opened with the Pledge of Allegiance led by Boy Scout Troop 417 and Girl Scout Troop 1010. Key actions included unanimous approval of all agenda items, including a zoning change, a right-of-way fee update, a lodger's tax amendment for short-term rentals, a new fire alerting system contract, and a write-off of uncollectible accounts totaling $429,220.62.

Consent Calendar

• Minutes of the February 13, 2025 Regular Meeting and February 18, 2025 Work Session were approved.
• Resolutions R14–R21 were approved, authorizing budget adjustments, disposal of city property (including decommissioning a vehicle, transferring Police Department K-9 property, and disposing of office furniture), and reappointing Anand Iyer to the Public Infrastructure Advisory Board.
• The consent calendar was approved by a vote of 6 FOR and 0 AGAINST. Councilors noted a special recognition for K-9 Nigel’s retirement.

Public Forum

• Jeff Lopez, Policy Advisor and Field Representative for U.S. Senator Ben Ray Luján, informed the body about constituent services available to Rio Rancho residents, including assistance with federal agencies, grants, and congressionally directed spending, especially during uncertain federal funding times. No questions were asked.

Public Hearings

• R22 – Resolution Amending the Impact Fee Capital Improvement Plan (IFCIP): City Manager Matt Geisel presented two additions to the IFCIP: (1) the Idaho Road corridor (from Northern Boulevard to Iris Road, to support future traffic demands and development) and (2) Sierra Norte II Park (off Pine Road, about 7.17 acres, to accommodate new residential development). The Capital Improvement Plan Citizens Advisory Committee recommended approval on January 27, 2025, by a vote of 5-0. The Governing Body approved R22 unanimously (6-0).
• O4 – Ordinance Amending Zoning for 1724 and 1732 Inca Road NE: This zone map amendment changes two lots (approx. 2 acres total) from R-4 (Single-Family Residential) to C-1 (Retail Commercial). The property is near Loma Colorado and Idalia, with an underlying land use designation of Neighborhood Corridor. The Planning and Zoning Board recommended approval on January 28, 2025. The ordinance was approved unanimously (6-0).

Second Reading of Ordinances

• O3 – Ordinance Amending Chapter 96: Use of Public Right-of-Way: This second reading updates fees and procedures for right-of-way permits. Key changes include a 25% increase in the base fee schedule (inflation would have justified 40%; cost recovery analysis suggested 35%), new fees for directional boring and potholing, requirements to use existing city conduit when available, and an updated degradation fee. The effective date is July 1, 2025. Councilor Paul Wymer asked whether permits pulled before the effective date would be subject to the old or new ordinance—staff clarified the effective date governs. Approved unanimously (6-0).

First Reading of Ordinances

• O5 – Ordinance Amending Chapter 37.02: Lodger’s Tax: Deputy City Manager Peter Wells explained this amendment (first reading) adds short-term rental units as taxable premises, allowing the city to collect occupancy tax on permitted short-term stays. Based on the number and frequency of short-term rentals, staff estimated $150,000 in annual revenue. Per state law, half must be spent publicizing tourist attractions and events; the remainder can cover administration and capital expenditures. All lodger's tax proceeds must be used within two years. Effective July 1, 2025, to align with short-term rental regulations. Deputy Mayor Lenentine asked for a lay explanation of lodger’s tax; Wells described it as a “bed tax” used to mitigate tourism impacts, improve facilities (e.g., Rio Rancho Event Center), and market the community. Approved unanimously (6-0).

Discussion & Deliberation

• D16 – Contract Award to US Digital Designs: Fire Chief James DeFilippo presented a request for advice and consent to award a contract for the G2 Fire Alerting System to US Digital Designs. The system will replace the current alerting/dispatch system, enhancing staff dispatching, establishing backup protocols, and eliminating redundancy. Funding of $545,000 (one-time setup and installation) was included in the Mid-Year 2025 Budget. The contract used a cooperative agreement procurement. Council approved the award unanimously (6-0).
• R23 – Resolution to Write-Off Uncollectible Accounts: Director of Financial Services Carol Jaramillo recommended writing off $429,220.62 in uncollectible ambulance, utilities, parks & recreation, alarm, and library accounts that are four years old or older. The write-off does not forgive the debt; collection efforts continue and accounts are reported to credit agencies. The amount represents less than 0.5% of general government revenue and less than 0.2% of utilities revenue. Councilor Bob Tyler expressed strong displeasure with uncollectible debts and asked about holding property owners accountable for renters’ unpaid water/wastewater bills. Councilor Karissa Culbreath noted the write-off helps maintain the city’s strong bond rating. Councilor Paul Wymer acknowledged that some ambulance debts stem from deceased patients. The resolution passed unanimously (6-0).

Key Outcomes

• All agenda items passed unanimously (6-0).
• The Consent Calendar was approved, including disposal of city property and recognition of retiring K-9 Nigel.
• The Impact Fee Capital Improvement Plan was amended to add projects on Idaho Road and Sierra Norte II Park.
• Zoning for two lots on Inca Road was changed from R-4 to C-1.
• Chapter 96 (right-of-way use) was updated with a 25% fee increase and new procedural requirements, effective July 1, 2025.
• The first reading of the Lodger’s Tax amendment (including short-term rentals) was approved; final adoption will require a second reading.
• A $545,000 contract for a new fire alerting system was awarded to US Digital Designs.
• $429,220.62 in uncollectible accounts were written off for accounting purposes (debt not extinguished).
• The meeting adjourned at 6:58 PM.