MINUTES OF THE SPECIAL OPEN MEETING PUBLIC REGULATION COMMISSION

June 8, 2020

TIME: 9:30 a. m. PLACE: Zoom Virtual Meeting

A quorum was present remotely as follows:

Members Present: H Commissioner Theresa Becenti-Aguilar, Chair H Commissioner Jefferson L. Byrd, Vice-Chair H Commissioner Valerie Espinoza, District 4 H Commissioner Stephen Fischmann, District 5, arriving later Commissioner Cynthia B. Hall, District 1

Members Absent: None

Staff Present: H Jason Montoya, Chief of Staff H Jim Williamson, ASD Director Many other staff members were also present remotely.

General Counsel Present: H Michael Smith, Acting General Counsel

Others Present Carl Boaz, Stenographer

CALL TO ORDER

The Special Meeting was scheduled at 9:30 a.m., pursuant to proper notice under NMSA 1978, 10-15-1(c), and the Commission’s Open Meeting Policy. Commissioner Becenti- Aguilar, Chairperson, called the Open Meeting to order at 9:30 a.m. through Zoom, with remote access for the public.

A copy of the agenda is incorporated herewith to these minutes as Exhibit 1.

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I. PLEDGE OF ALLEGIANCE/STATE PLEDGE

The Pledge of Allegiance and State Pledge were recited.

II. CONSIDERATION AND APPROVAL OF THE AGENDA

Mr. Smith explained why part of this meeting must be in open session.

Mr. Montoya will provide how the closed session can be accomplished.

Commissioner Espinoza reminded the Commissioners that we need to start the meeting as usual.

Mr. Smith agreed.

Commissioner Espinoza moved, seconded by Commissioner Fischmann, to approve the agenda- as published. The motion was approved on a 4-0 roll call vote with Commissioner Byrd, Commissioner Espinoza, Commissioner Fischmann, and Chair Becenti-Aguilar voting in the affirmative and none voting against. Commissioner Hall was not present for the vote but was present later.

III. REGULAR ACTION • Discussion re NMPRC Office Relocation Issues and Options

Mr. Montoya shared information after last week's open meeting from Secretary Ken Ortiz. Approximately three weeks ago, he presented options and the team has put together responses to GSD. They had a follow up from Theresa Casados, in the Governor's Office. It was the hybrid scenario to allow 48 people to remain and they partially agreed to that proposal and to allow those 48 to remain at PERA until September 30, 2020, and to allow the PRC to continue using the hearing room on the ground floor. Our concerns remain for budget. With that, he recommended the Commission to go into closed session.

Chair Becenti-Aguilar asked Mr. Smith to speak to what can be done on this in open session and what was needed for closed session. She explained we all need to understand what is allowable and what is not allowable.

Mr. Smith reported we received notice of termination of the lease agreement and an interpretation in the tenancy agreement with a termination clause of no less than 90 days and no more than six months. The Facilities Management Division (FMD) provides

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how tenancy can be revoked with three months' notice. We sent a letter that said we disagree with that interpretation and have three months left in the agreement. They wrote back that they have the right to terminate even though no budget and no other space is available but said they (FMD) would work with us to help locate space for PRC to move into. The Commission directed the Chief of Staff to follow up. We have tried to locate funding through a loan or grant from the State Board of Finance that cannot be met within our budget. The letter is to apply for special supplemental appropriation for a lease which was not included in HB 2 and, since it is being redrafted for a special session, could be included. Any lease must be approved by DFA. They are not allowed to enter into any agreement that has insufficient funding. FMD has authority for best use of state office space. Their determination is bounded by the tenancy agreement and he did not believe their interpretation was correct.

Commissioner Hall spoke and said she finally got online.

Chair Becenti-Aguilar caught her up on what had transpired in the meeting.

Mr. Smith explained that the tenancy term is intended to end on July 31, 2022.

Chair Becenti-Aguilar asked for comments.

Commissioner Espinoza thanked everyone for this explanation and for the detailed memo. We should allow Mr. Montoya and Staff to continue with pursuit of the solution. Those who can stay and those who must move should do so and those working from home should continue to do so. We have come a long way in our decision. We publicly declared we are ready to move, so we should not waste more time. And we don't need legal battles. She thought the money appears to be there and we should spend it because otherwise, it would revert to the General Fund. She was sure some of us enjoy working from home. Rather than let it revert, we should spend it.

Also, having until September 30 allows us a little more time and maybe they will be generous in helping us to move. "I can work from home and I'm out of the office now. We have come far enough to know where we are. Those who cannot stay can work from home.

Chair Becenti-Aguilar explained that this meeting is to determine if we agree with requesting a loan from SBOF and with the supplemental appropriation. We've talked about the move. There is no problem with the move but with the money to be spent on the moving process.

Mr. Smith clarified that we don't have the money for the move. $840,000 is what we currently have remaining for this fiscal year which ends at June 30. If we located a lease

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right now, we could only encumber one month's payment of the lease out of the current budget. The remainder would still revert to the State General Fund and the current budget approved by Legislature has no money for a lease. We would need a variance, which DFA could authorize, to spend more of that $840,000 fund balance in a lease for next year. That would provide a substantial request to the Legislature to reappropriate it. So those two separate bodies could make that money available for use in FY 21.

Chair Becenti-Aguilar emphasized the need to be transparent which is not an easy process. We have to allocate by leadership to make sure how we will proceed with the budget request.

Commissioner Byrd suggested that as long as we have proper authority to spend this money, getting the proper approval to spend it is the right way to go and be diligent with spending taxpayers' money. Going through the process is good to make sure we have the money or not good for securing a short-term lease and have a permanent place to grow.

Chair Becenti-Aguilar asked if he was in support of an emergency loan.

Commissioner Byrd said he was in support. He was also in support of a supplemental appropriation.

Commissioner Hall appreciated the options laid out so clearly, and Mr. Montoya's letter to DFA and Governor's Office. They should both be sought at the same time. We should ask for a waiver to retain the $617,000 of the $840,000 total. If we could not get approval, we should seek an emergency loan from the State Board of Finance. Her least favorite thing is to put everything in storage and work from home. We need approval of funding for some kind of location. But we could work from home. She supported both.

Commissioner Fischmann said yes to both options. We should be moving forward with Mr. Montoya's work.

Chair Becenti-Aguilar was in favor of both. So Staff is not held accountable for any wrongdoing. We want to be transparent so the public can see we are trying to get funding for our move.

Mr. Smith also included Mr. Williamson's letter. All three should be done at the same time. Next week, the State Board of Finance has their last meeting on Tuesday for this Fiscal Year. The person from State Board of Finance said they have $2 million as of May 5 and hoped they would make that available as a loan.

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Chair Becenti-Aguilar asked if Mr. Montoya had any questions. He reminded the Commissioners that he has tried to share all of the communications with Commissioners. The letter last week was a request to retain instead of reverting. He also said he has not committed to any lease because of lack of appropriation and had not done a letter of intent either.

Chair Becenti-Aguilar noted that is important to have the proper documents lined up. She thanked Director Williamson for his good letter on the variance. Let's proceed with request for emergency loan and supplemental appropriation.

Mr. Smith noted Ms. Amer worked on the application to State Board of Finance. She was working over the weekend and her experience at DFA has been invaluable. We need a resolution from the Commission, and he asked the Commission to act on that in order to pursue a grant or loan from the State Board of Finance.

Chair Becenti-Aguilar asked if he needed Commissioners' signatures.

Mr. Smith replied that the Commission could vote to adopt.

Commissioner Espinoza moved, seconded by Commissioner Hall, to adopt the resolution authorizing a request for emergency grant or loan from State Board of Finance. The motion was approved on a unanimous 5-0 roll call vote with Commissioner Byrd, Commissioner Hall, Commissioner Espinoza, Commissioner Fischmann and Commissioner Becenti-Aguilar voting in the affirmative and none voting against.

Chair Becenti-Aguilar asked if Director Williamson had any questions for Commissioners.

Director Williamson understood the resolution was for a grant and not a loan. If approved, the earliest access would be for March 2021. He asked if the Agency will still apply for an emergency appropriation which would be available in April.

Chair Becenti-Aguilar thought it will depend on Legislature for that.

Director Williamson understood.

Chair Becenti-Aguilar asked Director Williamson to clarify on a grant or loan.

Director Williamson explained that a grant would not have to be repaid to the State Board of Finance. Given the circumstances, a grant would be better.

Chair Becenti-Aguilar asked Mr. Smith to clarify.

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Mr. Smith agreed that a grant is better than a loan. But with circumstances, if we can't get a grant, then requesting a loan would be appropriate. That is what the resolution says for $617,000.

Chair Becenti-Aguilar thanked Staff for setting up this meeting. We know all Staff are working hard. She especially thanked Ms. Amer for having a resolution ready that was prepared last weekend.

Commissioner Hall echoed those thanks and they have done good work.

IV. EXECUTIVE CLOSED SESSION PURSUANT TO NMSA 1978, SECTION 10-15-1(H)(7) - TO DISCUSS THREATENED AND PENDING LITIGATION MATTERS • NMPRC Office Relocation Issues and Options

Commissioner Hall asked what the purpose for the closed session was.

Mr. Smith said it was offered if the Commission wanted to discuss litigation options.

Commissioner Hall thought we already said we wanted to move forward with whatever options. She did not think there was a purpose for that closed session now.

Commissioner Fischmann agreed. He saw no need for a closed session. All other Commissioners agreed.

Chair Becenti-Aguilar said there would be no closed session.

V. REGULAR ACTION • Potential Action re NMPRC Office Relocation Issues and Options

This was no longer necessary now.

VI. ADJOURNMENT

The meeting was adjourned at 10:22 a.m.

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ATTEST:

/s/ Carl Boaz, electronically signed Carl Boaz, Stenographer

APPROVED: June 24, 2020

/s/ Theresa Becenti-Aguilar, electronically signed THERESA BECENTI AGUILAR, CHAIR

/s/ , electronically signed JEFFERSON BYRD, VICE CHAIR

/s/ Cynthia B. Hall, electronically signed CYNTHIA B. HALL, COMMISSIONER

/s/ Valerie Espinoza, electronically signed VALERIE ESPINOZA, COMMISSIONER

/s/ Stephen Fischmann, electronically signed STEPHEN FISCHMANN, COMMISSIONER

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NEW MEXICO PUBLIC REGULATION COMMISSION

NOTICE & AGENDA OF SPECIAL OPEN MEETING

Monday June 8th, 2020 at 9:30 a.m.

On this date and time the New Mexico Public Regulation Commission will hold a Special Open Meeting addressing the agenda items listed below. The meeting will take place at: Virtually, through Zoom Platform Only

NOTICE: DUE TO COVID-19 RESTRICTIONS CURRENTLY IN PLACE THIS MEETING WILL BE HELD THROUGH ZOOM ONLY. ALL MEMBERS OF THE PUBLIC WILL BE ABLE TO CONNECT TO THIS MEETING THROUGH ZOOM. SEE INSTRUCTIONS FOR HOW TO CONNECT TO THIS MEETING THROUGH ZOOM AT THE END OF THIS NOTICE.

AGENDA

I. PLEDGE OF ALLEGIANCE/STATE PLEDGE

II. CONSIDERATION AND APPROVAL OF THE AGENDA

III. REGULAR ACTION • Discussion re NMPRC Office Relocation Issues and Options

IV. EXECUTIVE CLOSED SESSION PURSUANT TO NMSA 1978, SECTION 10- 15-1(H)(7) – TO DISCUSS THREATENED AND PENDING LITIGATION MATTERS • NMPRC Office Relocation Issues and Options

V. REGULAR ACTION • Potential Action re NMPRC Office Relocation Issues and Options

VI. ADJOURNMENT

To obtain a copy of this agenda please log in the Commission’s website at www.nmprc.state.nm.us. The Commission will make reasonable efforts to post the agenda on the Commission’s website at least 72 hours before the open meeting, but the inability to do so within the 72 hours prior, will not require the Commission to delay the meeting or to refrain from taking action on any agenda item on which it otherwise could act. At any time during the Open Meeting the Commission may close the meeting to the public to discuss matters not subject to the New Mexico Open Meetings Act. The Commission may revise the order of the agenda items considered at this open meeting.

EXHIBIT 1 For additional information, contact the offices of the Commission’s Office of General Counsel at (505) 827-4501. HOW TO CONNECT TO THIS MEETING THROUGH ZOOM: MEETING LINK: https://us02web.zoom.us/j/82980720159?pwd=VElLM2lGNWFEVXllbVZSOElxMmhoZz09

MEETING ID: 829 8072 0159 MEETING PASSWORD: 467277

INSTRUCTIONS FOR ATTENDING MEETING WITH ZOOM APPLICATION ON YOUR COMPUTER: • You will need to have the Zoom application installed on your computer (if you do not yet have it installed, it can be downloaded for free at https://zoom.us/download). • To attend this meeting using the Zoom application on your computer you will need to preregister for the meeting. To preregister for the meeting click on the Meeting Link above or copy and paste it into a browser and it will take you to the registration page for this meeting (you will need a Zoom account to preregister for this meeting; if you do not have a Zoom account you can sign up for free at https://zoom.us/signup). • Sometime after you preregister for this meeting and before the meeting start time you will receive a registration confirmation email. This email will contain a “click here to join” link that can be used to launch Zoom and connect to the meeting (PLEASE NOTE: you may not receive a registration confirmation email until 15 minutes prior to the meeting start time and the Commission highly encourages you to register at your earliest convenience). INSTRUCTIONS FOR ATTENDING THE MEETING BY TELEPHONE: • To attend the meeting by telephone call (253) 215-8782 or (301) 715-8592 prior to the meeting start time. • When prompted, enter the Meeting ID and Password at the top of this page and you will be connected to the meeting. If asked for a participant ID enter the password again. IF THE MEETING IS INTERRUPTED DUE TO TECHNICAL DIFFICULTIES IT WILL BE RECONVENED LATER THE SAME DAY. INFO ABOUT WHEN AND HOW TO REJOIN THE MEETING WILL BE POSTED AT http://www.nmprc.state.nm.us/open-meeting.html.