Emergency Teleconference Meeting

1. Call to Order: Chairperson Kelly O'Donnell opened the emergency teleconference meeting at 9:15 AM. Roll call was taken.

Authority Members Present:
Kelly O'Donnell, Chairperson
Jerry Hanks representing Lt. Gov. Diane Denish (by phone)
Jim Manatt (by phone)
Toots Green (by phone)
William Loomis (by phone)
Richard Holdridge (by phone)
Ben Woods (by phone)

Others Present:
Mary Ann Myers, Administrative Services Manager, NMSA
Mike Holston, Procurement Solutions
Lisa Ortiz, ASD Director, Economic Development Department
Tom Mills, NMSA Legal Counsel

Quorum confirmed the meeting was called to order.

2. Approval of Agenda: Motion to approve the agenda by Director Holdridge, second by Director Manatt, motion carried.

3. Discussion, Recommendation and Approval: FY09 Budget Appropriation Request: The Chair stated the base increase would be relatively small as the agency would bring funding level to the previous fiscal year. The budget expansion being presented is an increase of $1,414,200 for the FY09 budget for review and recommendations by the board. Brief discussion was held on a supplemental for this fiscal year and the process for supplemental funding. Director Manatt requested clarification on the funds to retain a search consultant for the executive director position was from Economic and if those funds could be included in the supplemental, which the Chair confirmed.

The Chair further stated the uncertainty of the Spaceport hinged on the passage of the gross receipts tax in Dona Ana County and with a live spaceport the agency needs to staff up. The Spaceport is on a tight budget and construction timeline and moving funds from capital outlay was not an option for these positions. The expansion request includes six new positions: Spaceport Manager, Technical Director, Marketing Director, Staff Attorney, Administrative Services Director and an Administrative Assistant. The Chair provided a briefing on the responsibilities, contractual support and travel expense for each position. Discussion was held with a recommendation from Director Holdridge to double travel to $100,000 total. Discussion was held regarding a full time attorney for the agency or for contracting legal counsel with an addition of $250,000 in the budget request and giving DFA the option.

Director Woods expressed broad concerns regarding the operational cost to the citizens of New Mexico to own and operate the Spaceport, revenues to off set the cost, how these questions would be answered at legislative hearings and what costs would run 4, 5, 6, 7 & 8 years out. Mr. Holston responded with a rough estimate with discussion held. Director Woods requested this be an agenda item for the next meeting.

Discussion was held on the differences between exempt and classified positions, consensus was for the Spaceport Manager, Technical Director, Marketing Director and Attorney be exempt positions, the Administrative Services Manager and Administrative Assistant positions be classified.

Director Loomis recommended with the approval of the positions being requested, advertisement and recruitment for these positions should be in the southern part of the state. Brief discussion was held on concerns on the gross receipts tax in Sierra and Otero Counties.

Director Holdridge moved for approval of the FY09 budget request as discussed with increase in travel for the Chair to present to DFA. Second by Director Green, motion carried.

Director Manatt stated formal approval of the FY09 Budget Appropriation to be handled at the next meeting.

5. Public comment and next meeting schedule: No public comment. Next meeting is scheduled for September 18, 2007 in Las Cruces.

6. Adjourn: Motion to Adjourn by Director Holdridge, second by Director Manatt, motion carried. Meeting was adjourned at 9:55 AM.

Approved: ______________________ Date: ____________________                    Kelly O'Donnell, Chairman