Rio Rancho Governing Body and PIAB Joint Work Session on Water and Sewer Operations (October 20, 2026)

The City of Rio Rancho Governing Body held a joint work session with the Public Infrastructure Advisory Board (PIAB) on October 20, 2026, to receive a comprehensive overview of the city's water and wastewater utility system. The session was structured around three expert presentations covering legal water rights, physical utility infrastructure and operations, and advanced water recycling initiatives. Public comment was not taken as per work session rules. The meeting was extended from its scheduled end to 5:45 PM to accommodate discussion.

Discussion Items

Water Rights Overview (Maria O'Brien, Water Rights Attorney)

• O'Brien explained the legal framework governing the city's water rights, including the 26,439.16 acre-feet per year groundwater diversion permit, offset requirements for Rio Grande depletions, and the 40-year planning horizon.
• The city is significantly ahead of its schedule for acquiring surface water rights to offset groundwater pumping, having satisfied requirements through 2041 through scheduled acquisitions and proactive purchasing.
• O'Brien detailed the 728 acre-feet per five-year accounting period offset schedule for the 2003 permit and the total ultimate offset requirement of approximately 14,000 acre-feet.
• The city holds an inventory of acquired surface water rights (6,400 acre-feet) but cannot directly divert this water; it serves as an accounting offset for groundwater pumping impacts on the Rio Grande.
• The aquifer storage and recovery (ASR) program provides operational and aquifer management benefits but does not fully substitute for water rights acquisition, as the technical connection between injection and offset reduction has yet to be fully established with the state engineer.
• Councillor Dapson raised concerns about domestic wells depleting the aquifer. O'Brien noted the city can regulate new wells near water mains but reiterated cumulative domestic well impact is a regional issue.
• Councillor Culbreath inquired about the cost and availability of water rights. O'Brien stated availability has decreased and competition exists with Santa Fe, projecting incremental price increases over time.
• Councilor Mann asked if expanded aquifer injection could eliminate the need to purchase water rights. City Manager Baker and O'Brien clarified that while injection improves drawdown management and may qualify for partial offset credit in the future, it cannot fully replace acquisition under current regulatory frameworks.

Utilities Department Infrastructure and Operations (Steve Gallegos, Utilities Director)

• Gallegos presented the department's organizational structure, contract operations model (Jacobs/OMI), and enterprise fund status supporting a $78 million annual budget.
• The city provides service to 41,481 total customers (39,000+ residential, ~2,000 commercial), maintaining 600 miles of water line, 435 miles of sewer line, and 48 million gallons of water storage across 19 tanks.
• Production in FY 2026 was 4.1 billion gallons (12,582 acre-feet), well below the permitted 26,000 acre-feet.
• The city manages 60 main breaks and 700 service leaks per year on average, with an active program replacing 500 service lines annually. Since 2013, over 7,000 service lines have been replaced, with an estimated 7,000-8,000 remaining.
• Gallegos noted that 80% of major road projects since 2016 have included water line replacement, executed in coordination with Public Works to reduce costs (approximately 40% of standalone cost).
• A $356 million capital improvement plan for water and wastewater through FY 2031 was presented, with $233 million in identified funding and a gap of $123 million.
• Councillor List expressed strong appreciation for the technical expertise and dedication of the utilities team.

Aquifer Storage and Recovery and Recycled Water (Jason Herman, Deputy Director of Operations)

• Herman presented the city's recycled water strategy, emphasizing that Rio Rancho was the first municipality in New Mexico permitted for aquifer injection of purified wastewater.
• Cumulative injection from the Advanced Water Treatment Facility (AWTF) from 2017 to 2026 reached 395 million gallons (1,172 acre-feet), avoiding an estimated $2.3 to $3.1 million in water rights purchases.
• Injection volumes have increased significantly: 71 million gallons (179 acre-feet) injected in the first nine months of 2026 alone (FY), compared to lower annual totals in previous years.
• The ultimate target is the permitted maximum of 1,000 acre-feet per year of injection, requiring continued optimization and a second injection well.
• Board member Mitchell questioned the gap between current average injection (~18 acre-feet/month) and the 1,000 acre-feet annual goal. Herman confirmed a second well is under design to increase capacity and reliability.

Key Outcomes

• The board, council, and staff received extensive technical education on the water utility's legal, operational, and regulatory framework.
• The city manager indicated that a follow-up discussion on service outside city limits is planned for the February 2027 work session.
• No formal motions or votes were made; the meeting was an informational work session.
• The meeting was extended to 5:45 PM to allow completion of the presentations and question-and-answer period.