Alamogordo NM
6-18-2026 3:09am

Alamogordo City Commission Faces Scrutiny Over Undisclosed Settlement and Severance with Former Acting City Manager Dr. Stephanie J. Hernandez

By Chris Edwards, Alamogordo Town News

ALAMOGORDO, N.M. — Documents obtained through the Inspection of Public Records Act (IPRA) reveal that the City of Alamogordo reached a settlement and separation agreement with Dr. Stephanie J. Hernandez, who served as Acting City Manager, resulting in a substantial severance payment that was never debated nor disclosed in any detail to the public. Without an aggressive IPRA transparency push by Alamogordo Town News and a disclosure in public by Dr Hernandez in a recent commission meeting the public would still be in the dark on the details and would have no idea of the amount of taxpayer dollars involved in the payout. If a contract had been issued as per the March 10th, 7 to 0 vote no payout would have occured and the result would have been a huge tax savings to local taxpayers. 

However, the City Commission  to date still has not publicly disclosed the terms of the agreement, nor has it held open debate or provided justification for opting for a payout rather than finalizing her employment.

A payroll document for employee number 3409, identified as Stephanie J. Hernandez in the City Manager Staff department, shows a severance payment of $485,340.45 categorized under “TERM SEV / SEVERANCE PAY.” 

Local observers have noted that this nearly $500,000 payout from taxpayer funds — not drawn from any insurance settlement or litigation reserve, as the matter was not in active litigation — could have instead addressed significant infrastructure needs. According to city data on road maintenance costs, the amount is roughly equivalent to what it would take to repair approximately 10,777 square yards of potholes and roadways in Alamogordo.

The payout to “make her go away” was championed by 4 male commissioners Al Hernandez, Josh Rardin, Baxter Patillo and Stephen Burnett the same 4 individuals that championed Robert Stockwell whose resume did not appear at city hall through the traditional application process but championed by Baxter Patillo and suddenly arrived last Tuesday evening. 

Hernandez, who holds a Ph.D. and has extensive experience in finance, budgeting, and executive leadership, had been performing the full duties of City Manager and Assistant City Manager for approximately 21 months this term, and 27 combined, amid prolonged recruitment delays. In an April 1, 2026, settlement proposal submitted via email, she outlined challenges including sustained high demands without backup coverage, ongoing uncertainty due to repeated delays in the hiring process, and a lack of formal contract despite public selection by the Commission on March 10, 2026 via a unanimous 7 to 0 vote of which many speculate the 4 commissioners never intended to honor, and in the end did not. 

The proposal referenced prior public discussions of salary ranges for the position and her qualifications. An alternative resolution option was also presented involving a lump-sum payment in exchange for withdrawal of her EEOC complaint, separation from employment. No NDA was required as a condition of the payout. 

Lack of Public Transparency

Despite the significant public expenditure involved, the Alamogordo City Commission has to date failed to disclose the settlement terms nor details, the rationale for the payout, or any related justification in open meetings. This comes as a hearing in the 12th Judicial District Court on transparency issues is approaching in just days.

IPRA requests have brought some records to light, including the payroll details and correspondence related to the EEOC matter. In an email exchange from mid-May 2026, City Attorney Baxter Pattillo questioned the release of certain settlement-related documents to IPRA requesters, noting the existence of an EEOC complaint and demand letter while distinguishing protected communications. Pattillo sought clarification on why pages from the settlement agreement were being made public.

The city’s handling of the records has raised additional questions about consistency in responding to public records requests.

Background and Context

Hernandez’s tenure involved navigating multiple stalled recruitment efforts, including cancellations and compliance issues with the Open Meetings Act resulting in at least 8 citizen driven complaints to the AG office and now pending litigation from citizens.

Her proposal emphasized commitment to the city’s progress despite the uncertainties.

The Alamogordo Town News will continue monitoring developments, including the upcoming court hearing and any future Commission discussions on this matter. Residents seeking further information are encouraged to submit their own IPRA requests or attend public meetings and speak on public comments. 

This story is developing. Updates will be posted at AlamogordoTownNews.org as additional public records become available or if the Commission chooses to finally address the issue openly.

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