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Monday, August 09, 2021

Gonzales Campaign Starved For Funds Feeds Off Of The Headlines; Record Homicides Reached And Soccer Stadium Plan Brings Out Foes, Plus: "Sideshow" Takes Center Stage As AG Takes Another Ethics Hit Over PNM Merger  

Gonzales and Keller
Welcome back. Let's get up to date. 

If BernCo Sheriff Manny Gonzales could rouse his semi-moribund mayoral campaign a major issue might break his way. That's in addition to the issue of tying  the ignominious annual record for city homicides--81--that was reached over the weekend.

City officials pushing a $50 million bond issue for a downtown soccer stadium keep quoting a city satisfaction survey that show 63 percent of respondents support such a stadium. That was the 2020 poll. But a 2019 question in the satisfaction survey also asked city residents if they favor placing such a stadium downtown and support having it paid by taxpayers. That question was not included in the '20 survey. But in '19 it showed that only 50 percent of respondents supported a publicly funded downtown stadium with 38 percent opposed. 

Also, in the 2020 survey 48 percent of those asked favored building any new stadium near the UNM sports stadiums. Only 12 percent thought downtown would be the best location.

The city council later this month is expected to approve placing the stadium bond on the November 2 city election ballot, but at only 50 percent approval Gonzales has a potential issue to bring a variety of voters to his side--if he opposes the stadium and folds it into his anti-crime platform.

Mayor Keller popped the stadium into the public debate close to the election, touting it as a way to revive downtrodden downtown. But if a fairly well-financed committee ($75K?) was formed to oppose the stadium it appears the bond issue could be defeated. 

The stadium was excoriated at a public hearing last week as a potential boondoggle and unnecessary, especially as the city faces a crime crisis and struggles economically to recover from Covid. That certainly did not reflect well on the organizational skills of those supporting the venue.

Gonzales is still waiting for a court hearing on whether his campaign qualifies for $661,000 in public financing which has been in turmoil since he admitted forgeries occurred in gathering public donations to qualify for the money. Mayor Keller has already qualified. 

All BernCo district court judges recused themselves from the case. And as we broke the news July 26, the State Supreme Court has been asked to name a judge to hear the matter. 

Meanwhile, an early glimpse at the latest campaign finance reports due today show the outside committee supporting Gonzales has $121,000 in cash on hand and has raised a total of $197,000. That guarantees a TV buy for Gonzales in October and earlier if the PAC can continue to gain steam. An outside PAC is also supporting Keller and will also file today.

Despite the sheriff's penchant to shoot himself in the foot, his campaign continues to breathe because the news narrative (crime, the stadium and homeless shelter controversies) keep Keller on the defensive. 

''SIDESHOW" TAKES MAIN STAGE

Marcus Rael, Jr.
Ethics accusations that Attorney General Hector Balderas' office dismissed as a "sideshow" have taken center stage and delivered another damaging political blow to the AG:

. . .A hearing examiner with the state Public Regulation Commission issued an order, saying Marcus Rael Jr. can no longer represent Iberdrola/Avangrid in connection with (its proposed merger with PNM). . .Watchdog groups iled complaints. . .that highlighted Attorney General Hector Balderas’ relationship with the law firm where Rael works (Robles, Rael, Anaya). They alleged that Rael used his influence to convince Balderas to sign off on the merger and that Balderas awarded numerous contracts to Rael and approved improper invoices. Balderas and Rael both graduated from the University of New Mexico law school and briefly worked together before Balderas ran for public office. New Energy Economy Executive Director Mariel Nanasi is among those who have raised concerns about the merger and Rael's relationship with the attorney general's office. Public records. . . showed that since taking office in 2015, Balderas has hired Rael or others at his firm to help represent the state in at least 19 cases, which is at least triple the number of cases farmed out to any other private law firm. Invoices and contracts from the attorney general’s office showed more than $4.5 million in direct payments of fees and expenses to the Robles, Rael & Anaya. The hearing examiner's order also pointed to a series of meetings between Rael and the attorney general's office from late February through early April while the attorney general was preparing testimony that initially opposed the planned merger.    

Avangrid has been working furiously to win public support for the $4.3 billion merger which has widespread support among the political and environmental classes. But Nanasi says the Rael episode should serve as a warning: 

I have little doubt that Iberdrola hired Rael to get our Attorney General to change his position on the merger because Iberdrola knew Rael was an insider in the AG’s office and a pal of the AG. Why else would Iberdrola hire him? Iberdrola, here and in Spain, seems to always be looking for some tricky angle to get its way. Why doesn’t it just present its and its subsidiary’s qualifications for taking over PNM’s monopoly to the PRC and let the PRC decide whether the takeover is in the public interest. Iberdrola’s top management is under criminal investigation in Spain, and its performance after taking over Maine’s utility is the subject of a scathing audit. We should see its hiring of Rael, the criminal investigation in Spain and Maine’s audit of its performance there as real warning signs for us here in New Mexico.

As for Rael: 

Rael said he doesn't believe there is a conflict but will honor the (disqualification) order. He said he joined the Avangrid and Iberdrola team because he believes the merger is in the best interest of New Mexicans, and he's proud of the work he has done. “I look forward to the merger being complete so that New Mexico achieves its renewable energy goals."

And in this article Balderas offers a defense of himself as a consumer advocate. The PRC public hearings on the merger begin today.

The broader exposure of how the Robles Anaya & Rael law firm has its hands on the levers of political power have done their damage to Balderas, but he is not expected to seek higher office anytime soon and can be expected to go into private practice when his term ends next year.

But for State Auditor and '22 Dem attorney general candidate Brian Colón this is a high hurdle to jump. He worked for the firm for a dozen years and is a BFF of Balderas. Now that the law firm's role in the public sector is is known to a wider swath of the public Colón will face questions, particularly from progressive Dems, about his ethical standards and his dealings with the firm past, present and future. 

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