CITY OF TOLLESON CITY COUNCIL MEETING ACTION MINUTES TUESDAY, JANUARY 23, :00 P.M.

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1 CITY OF TOLLESON CITY COUNCIL MEETING ACTION MINUTES TUESDAY, JANUARY 23, :00 P.M. CALL TO ORDER Mayor Tovar called the Tolleson City Council Meeting to order at 6:00 P.M. INVOCATION/PLEDGE OF ALLEGIANCE The Invocation was delivered by City Attorney Pierce, and the Pledge of Allegiance was led by Council Member Laborin. ROLL CALL Mayor Anna Tovar, Vice Mayor Juan Rodriguez, Council Members Lupe Bandin, John Carnero, Linda Laborin and Albert Mendoza were present. Not Present: Council Member Clorinda Erives Administration: City Manager Reyes Medrano Jr., Police Chief Wayne Booher, Deputy Building Official Dale Crandell, Economic Development Director Jason Earp, City Engineer Paul R. Gilmore, Fire Chief George Good, Chief Technical Officer Stephen Holliday, Chief Financial Officer Vicky Juvet, City Attorney Justin Pierce, Financial Services Manager Rey Sanchez, Intergov/Council Liaison Pilar Sinawi, Deputy City Clerk Michelle Smythe and City Clerk Crystal Zamora. FINAL CALL TO SUBMIT SPEAKER REQUEST FORMS All citizens and interested parties wishing to speak before the Council shall fully complete a Speaker Request Form and, if possible, submit the form(s) to the City Clerk, or designee prior to the meeting being convened; but in any case submissions should be made no later than the Presiding Officer announcing the Final Call to Submit Speaker Request Forms. Speaker Request Forms are located in the lobby of the Council Chambers. All speakers will be limited to 3 minutes unless otherwise noted by the Mayor. CALL TO THE PUBLIC (NON-AGENDA ITEMS) This is the time for the public to comment. Members of the Council may not discuss items that are not specifically identified on the agenda. Therefore, pursuant to A.R.S H, action taken as a result of public comment will be limited to directing staff to study the matter or scheduling the matter for further consideration and decision at a later date.

2 SCHEDULED PUBLIC APPEARANCE 1. Introduction of New Employee: Ashley Ieronimo, Accountant in the Finance Department WORK STUDY/PRESENTATIONS DISCUSSION ONLY ITEMS 1. Discussion pertaining to a potential retail development on the property located at the northeast corner of 99th Avenue and Van Buren Street Economic Development Director Jason Earp. BUSINESS FROM THE FLOOR - PUBLIC HEARINGS AND ACTION 1. Public Hearing Soliciting comments from interested parties in reference to Use Permit Application # as submitted by Christopher Hernandez of QEP Company, Inc. for the storage and processing of chemicals used to produce flooring adhesives, as well as for the production of said flooring adhesives within an 8,500 square foot contained area of an existing light industrial (I-1) zoned 122,622 square foot warehouse space to be leased at West Van Buren Street, Tolleson, AZ Following the Public Hearing, Council Action: Approve/Deny Use Permit Application # Public Hearing opened at 6:05 P.M. and closed at 6:22 P.M. Motion made to approve Use Permit Application # by Council Member Laborin and seconded by Council Member Mendoza. Motion carried 7-0. CONSENT AGENDA ACTION ITEMS Items on the Consent Agenda are of a routine nature and are intended to be acted upon in one motion. Council Members may pull items from Consent if they would like them considered separately. a. Approve Minutes: Regular City Council Meeting Minutes of January 9, b. Approve Claims and Bills. (Documentation may be reviewed at City Hall during regular business hours.) c. Approve Cooperative Purchasing Agreement between the City of Tolleson and Southwest Fabrication, LLC for the Vendor to provide the City with bus stop installation, maintenance and repair services, and authorize the City Manager to execute said documents on behalf of the City. The annual aggregate amount for this Agreement shall not exceed $150,000. This Agreement shall remain in full force and effect until June 27, (Field Operations Department)

3 d. Approve Cooperative Purchasing Agreement between the City of Tolleson and Logicalis, Inc. for the Vendor to provide the City with technology and audio visual solutions, and authorize the City Manager to execute said documents on behalf of the City. The annual aggregate amount for this Agreement shall not exceed $75,000. This Agreement shall remain in full force and effect until December 7, (Information Technology Department) e. Approve Second Amendment to Professional Services Agreement between the City of Tolleson and Habitat for Humanity Central Arizona for the Vendor to provide the City with professional services consisting of implementing and administering an owner-occupied emergency home repair program, and authorize the City Manager to execute said documents on behalf of the City. The City and Consultant desire to amend the extension of the Agreement to increase the not-to-exceed amount from $275,000 to $400,000. This Agreement shall remain in full force and effect until June 30, (City Management Department) f. Approve Council and Community Aide position in Public Affairs Department. Motion made to approve Consent Agenda items a.-f. by Council Member Laborin and seconded by Council Member Bandin. Motion carried 7-0. REGULAR AGENDA ACTION ITEMS MAYOR/CITY MANAGER S REPORT OF CURRENT EVENTS 1. Intergovernmental Update 2. Follow Up on Speaker Request Forms 3. Community Events & Programs Update Tolleson Teen Council 16 th Annual Fundraiser Dinner & Silent Auction on Friday, February 2, 2018 at 7:00 P.M. at the Wigwam Resort. Movie at Central Plaza on Friday, February 16, 2018 at 6 P.M. (or at sundown) Daddy Daughter Dance on Saturday, February 24, 2018 from 5:30 P.M. to 7:00 P.M. at Palm Valley Community Center Latin Jazz & Mariachi Festival on Saturday, March 3, 2018 and Sunday, March 4, 2018 at Paseo de Luces Downtown Tolleson 4. The Comisión Sonora-Arizona (CSA) and Arizona-Mexico Commission s (AMC) Annual Meeting in Puerto Peñasco, Sonora Recap Vice Mayor Rodriguez ADJOURNMENT Motion made to adjourn at 6:40 P.M. by Council Member Bandin and seconded by Council Member Laborin. Motion carried 7-0.

4 CITY OF TOLLESON CITY COUNCIL Page 1 of 19 MAYOR TOVAR: Good evening, everyone. Today is Tuesday, January 23rd. I would like to call this city council meeting to order. Can Council Member Laborin lead us in the Pledge of Allegiance, and Mr. Pierce lead us in the invocation? COUNCIL MEMBER LABORIN: I pledge allegiance... ALL: I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. COUNCIL MEMBER LABORIN: Amen. CITY ATTORNEY PIERCE: Bow your heads. Our dear Father who art in heaven, we are grateful for the opportunity to be here this evening. We're grateful for this free country that we have to live in, to be able to meet and to govern ourselves. We recognize that there are many places in this world that do not have such opportunities. And we pray - we pray for peace. We pray for peace in our community. We pray for peace around our country. We pray for peace around the world. We pray that - that our public safety will be kept safe in all that they do in protecting our community and protecting us all around the world. Our military families as well. Lord, we're grateful for the prosperity in which thou has given unto us. We pray that that guidance and direction will be among this Council this evening as actions are taken in support of the community, that it will be guided and directed and be able to do thy will. And in so doing, the - do the best for the people of this community. Lord, we pray for these blessings and for thy spirit to be with us this evening. And we do so in Jesus' name, amen. ALL: Amen. MAYOR TOVAR: Crystal, let the roll call reflect that we are all present except for Council Member Clorinda Erives. CITY CLERK ZAMORA: Okay. MAYOR TOVAR: Right now is your final time to submit speaker request forms. Those are the white forms in the back next to the agenda, if you wish to speak on any nonagenda item. Crystal, do we have any? CITY CLERK ZAMORA: We do not, Mayor. MAYOR TOVAR: Okay. We'll move forward onto our scheduled public appearances. We have a new employee. And Vicky, would you like to introduce? CHIEF FINANCIAL OFFICER JUVET: Yes. It is my pleasure to introduce Ashley Ieronimo. It rhymes with Geronimo. That's how I (unintelligible). Page 1 of 19

5 CITY OF TOLLESON CITY COUNCIL Page 2 of 19 She has worked in the private sector for the past five years as an accountant. So this is her first (unintelligible) into a government agency. And she picked the best, in my opinion. She lives in Avondale. And she has twin nine-month-olds, a girl and a boy. MAYOR TOVAR: Wow. CHIEF FINANCIAL OFFICER JUVET: Emily and Lincoln. And she graduated from Grand Canyon University with a bachelor's in accounting. She currently working on her master's, and she hopes to have her CPA within a year. So she's going to fit right in. This is Ashley. MAYOR TOVAR: Welcome aboard, Ashley. We're excited to have you. Next, we don't have a work study presentation for discussion only. We don't have the gentleman - the group said they would not be able to make it this evening. So we look forward to probably the next meeting as well. So we'll move on from Business from the Floor, Public Hearings and Actions. We do have one public hearing, soliciting comments from interested parties in reference to a Use Permit Application # as submitted by Christopher Hernandez of QEP Company, Inc. for storage and processing of chemicals used to produce flooring adhesives, as well as the production of said flooring adhesives within an 8,500-squarefoot contained area of an existing light - existing light industrial, I-1, zoned 122,622- square-feet warehouse space for - I got that all confused. 122,622. COUNCIL MEMBER LABORIN: 122,000. MAYOR TOVAR: Yeah. That's a big warehouse. To be leased at West Van Buren Street, Tolleson, Arizona Crystal, can you go ahead and open up this public hearing? And is Mr. Christopher Hernandez here? CHRISTOPHER HERNANDEZ: Yes, I'm here. MAYOR TOVAR: Go ahead. If you could approach the - CHRISTOPHER HERNANDEZ: Sure. Would you like me to explain who I (unintelligible)? MAYOR TOVAR: Yes, absolutely. Yeah. CHRISTOPHER HERNANDEZ: First, I would like to thank you, Mayor, Vice Mayor, and all the Council Members, for allowing us to present our permit in the hopes that we might be able to operate our business in the City of Tolleson. I thank Paul Gilmore for Page 2 of 19

6 CITY OF TOLLESON CITY COUNCIL Page 3 of 19 kind of accepting our application late and for allowing us - his team to process everything you all needed to process to get us here. So we're very appreciative of that. So thank y'all very much. Chris Hernandez. I am the Senior Director of West Coast Manufacturing Operations for QEP. We've been in business since I have only been with the company for five months. Us coming here is a cumulation of about a two-year search where we've looked in Nevada, California, Arizona, and I think maybe one other place I'm missing. And we arrived at our decision to come to the City of Tolleson. What we like from the City of Tolleson, as you notice, there's a lot of Fortune 500, probably Fortune 100 companies here, 20 to 25. And that caught our interest right away. We noticed there's a lot of potential incentives for coming here. It seems to be a very good place from a business, a cost-of-running-a-business point of view. It's staggering what you spend or what it costs in the State of California versus what potentially we can get here in the City of Tolleson. And that excites us. If we move to the City of Tolleson, it puts us in a better position from a logistics point of view. It expands our reach to the southern states, Midwestern states, and some of the central states of the United States. Our primary customer is Home Depot. By moving here, presently in Alonto (sp?) we service, I believe, five regional distribution centers for your Home Depot. Us moving to Tolleson allows us to service seven. So, it's a great opportunity for us to move our business. QEP is constantly in a state of no capacity. Getting 122,000-square-foot warehouse in the City of Tolleson helps us to expand the capacity, just not for the Alonto plant. It's coming here for virtually all of QEP. And the final thing that I saw that I liked about - well, I'll say this first. I was a resident of Phoenix. I lived in Ahwatukee for five and a half years. I would (unintelligible) to potentially being a future resident in this area. But what I also liked, and what I really like especially about the City of Tolleson, it's just - for the sake of my employees, it seems like it's going to be an outstanding area for them to - for their families to live, to raise their children, just a much, much, much better environment. You've probably all been to Los Angeles. And from a traffic point of view, you can't even compare it to that. But I just think overall it's a great move for my company. We're excited. I've been on board for five months. We're excited to this to this point. I have my future - presently my maintenance manager and EHS manager in Alonto. He will be that here. I have Scott Cooper with me, who is our project manager. We've received a lot of support from our contractors, Joe Cackey (sp?), Mitchell Allen from the Greater Phoenix Development Center. I guess that's where he's from. But we appreciate all the support. We're excited to get rolling. And we - again, I really appreciate this opportunity. And we're open for questions. I'll answer what I can, Scott Page 3 of 19

7 CITY OF TOLLESON CITY COUNCIL Page 4 of 19 will answer what he can, and Glenn will answer those things. They're more technical than me. So they may be the sources for that. But yeah, thank you very much. MAYOR TOVAR: No, thank you. Council, do we have any questions for Mr. Hernandez? Council Member Carnero. CHRISTOPHER HERNANDEZ: Yes, sir. COUNCIL MEMBER CARNERO: It's evident that chemicals will be involved in your process and the work that you do. CHRISTOPHER HERNANDEZ: Yes, sir. COUNCIL MEMBER CARNERO: Could you expand a little bit in terms of are these - would these be considered possible hazardous materials? And how are you - if you could give us a brief review, how you plan to deal with that or protect the city in terms of those chemicals being stored and processed at your center. CHRISTOPHER HERNANDEZ: Yes. We have 40 chemicals. And that includes, I mean, even aerosol sprays that you would use inside the office and whatnot. So probably the standing-out point is what's called a (unintelligible). We've - that has a list of all the chemicals that we utilize in the operations. Of those 40, we believe four would be classified as non-hazardous. We follow OSHA's safety data sheets into how we manage them. We post safety data sheets in at least three places in the operation so everybody has access to them. We follow the safety data sheets in how we unload the product, in how we transport the product, in how our employees - they have - we make sure they have the right personal protective equipment. So we do everything that we need to do to comply presently with the State of California, and in the future with the State of Arizona. But more importantly, we make sure that our employees receive all the training necessary to ensure that they know how to manage these products. All of our chemicals will be stored - with the exception of (unintelligible) clay, which is just clay (unintelligible) stored inside. All of them would be stored on primary spill containment, usually some type of a pallet. So if you have a minor spill, it goes inside the pallet. And then we have what we consider secondary containment, which is a containment wall. So if there was a spill, it's totally contained. We just basically follow everything we need to do to ensure we're in compliance with the state, but more importantly, that we ensure that our employees are safe. And if you need more detail, Glenn is an expert on all of that. He can probably give you more detail on those chemicals, if you would like. COUNCIL MEMBER CARNERO: Just a follow-up, Mayor. Page 4 of 19

8 CITY OF TOLLESON CITY COUNCIL Page 5 of 19 MAYOR TOVAR: Yes. COUNCIL MEMBER CARNERO: In terms of our fire department, I'm sure you're well aware of what's there and any ability to deal with any issue that may come up there, if I may ask that question. MALE: Mayor and Council Member Carnero, typically, we see these types of installations come in periodically. Currently, they're under review by the building department. So Paul's department and Dale specifically are familiar with what would be in there. They would be required to be aware that they conform to all applicable codes in order to ensure that a hazard - so he kind of talked about it from the employee standpoint. I think (unintelligible) is that what do we do as a city to respond if it gets beyond that. And so we do have contingencies in place. But typically, as long as they are meeting those codes, that would minimize any possibility of something happening. And then if there were any instance we would depend on our (unintelligible) partners to mitigate and resolve any (unintelligible). COUNCIL MEMBER CARNERO: Thank you. MAYOR TOVAR: Thank you. Vice Mayor. VICE MAYOR RODRIGUEZ: Yeah. I'm assuming this, so maybe I'm wrong. But you all are going to produce a product there, right? CHRISTOPHER HERNANDEZ: Yes, sir. VICE MAYOR RODRIGUEZ: Okay. So when mixing the different chemicals, any offgassing or particles that become airborne, what kind of system do you have to control those to keep them from exiting your building and entering our community? CHRISTOPHER HERNANDEZ: We - our product produces a slight odor. Our employees when we - obviously, we have to use the PPE. We have somebody that'll use a respirator when they're batching for certain chemicals, but when we're actually pouring the chemicals and mixing, they're not required to use any type of protection. So it kind of says that it's not that risky. As far as the control of the odor, our building will be 100% enclosed, so the odor will be contained in the building. If it's become necessary - if we ever saw that it became necessary, we would purchase scrubbers. In fact, that's part of our plan right now that - so you know. We're just scrubbing any odor or any fume that might be coming out that resonates some type of odor and whatnot. But we've got Simmons Serta right behind them - behind us. I come from the mattress industry. And the odor we put off is nothing compared to what happens - if you've ever bought like a memory-foam mattress and you get it home, it still smells. Our odor smells Page 5 of 19

9 CITY OF TOLLESON CITY COUNCIL Page 6 of 19 much less than what you take home. So that's a good reference for how minimal our odor is. But we control it. And we control it, and we'll follow whatever city guidelines tells us we need to do and ensure we control that. VICE MAYOR RODRIGUEZ: I understand the primary and secondary containment. CHRISTOPHER HERNANDEZ: Yes, sir. VICE MAYOR RODRIGUEZ: (Unintelligible) I'm glad you guys are all conforming to that. And I do know that OSHA, along with the environmental - State of Arizona Office of Environmental Quality is very much on top of that. Anytime we use chemicals, it scares me a little bit. CHRISTOPHER HERNANDEZ: Oh, yes, of course. VICE MAYOR RODRIGUEZ: I want to make sure that the people that we bring here are going to be good partners. CHRISTOPHER HERNANDEZ: Of course. VICE MAYOR RODRIGUEZ: And not only will they have the safety of their employees as priority number one, but also the safety of our residents. So I appreciate your answer. CHRISTOPHER HERNANDEZ: And Glenn Hawkman (sp?), who will be here as HS Manager, he runs the Alonto plant. Wow, his record in regards to safety and management of chemicals is - it's - he's been there for over ten years. Never an issue with inspections, always passes inspections, never a violation. So I'm very glad to have him because I know he'll ensure that we manage our chemicals correctly, but more important, he'll ensure the safety of our employees. VICE MAYOR RODRIGUEZ: Go ahead. MAYOR TOVAR: Yes, Mr. Mendoza and then I'll go to our director, Mr. Earp. COUNCIL MEMBER MENDOZA: Would you have a store there? Does the - say, for instance, Home Depot. Do they do the pick up or you deliver to them? CHRISTOPHER HERNANDEZ: We deliver to them, sir. MAYOR TOVAR: Okay. Mr. Earp. ECONOMIC DEVELOPMENT DIRECTOR EARP: Mayor, Vice Mayor, I just wanted to (unintelligible) our meetings (unintelligible). And we have the county there for air quality and (unintelligible) s and our meetings. They okayed the air quality for this - for this project. So they see no issues with it. Page 6 of 19

10 CITY OF TOLLESON CITY COUNCIL Page 7 of 19 CHRISTOPHER HERNANDEZ: Thank you. MAYOR TOVAR: Yes, Council Member Bandin. COUNCIL MEMBER BANDIN: So I just want to echo Vice Mayor's concern in the production of the adhesive. So I was glad to hear the answers and have those questions brought up by the Vice Mayor. I have a question just about the number of employees that you'll have in your building. CHRISTOPHER HERNANDEZ: Yes. Eventually we'll put - our expectation is to get to 60, 65. Initially, we'll start - we have multiple phases. The first is the adhesive. The rest are just (unintelligible). But we'll start at about 35 and then we'll go to potentially 65. COUNCIL MEMBER BANDIN: Will that be new employees here, will it be transferred employees, or do you know? CHRISTOPHER HERNANDEZ: I actually get to meet with my employees at Alonto on Thursday and see who's interested in coming. COUNCIL MEMBER BANDIN: Okay. CHRISTOPHER HERNANDEZ: I love my company, but we don't like to communicate until something's for sure. COUNCIL MEMBER BANDIN: Right. CHRISTOPHER HERNANDEZ: So if all goes well here, I will communicate with my employees, give them the opportunity to come here, and then see what we can do for them to come with us. But that's probably - I'm estimating maybe 10. So we'll probably add 50 to 55 employees as we move along the way. COUNCIL MEMBER BANDIN: Thank you. MAYOR TOVAR: Chief Good. Yes, Chief Good. FIRE CHIEF GOOD: Mayor, I would also like to add that typically in these types of cases when there are concerns in the community such as in this case where people don't really understand what they're doing, it's common for us to contact other cities, officials in other cities to see where they would have a similar facility, to understand what they have done and if they're having any problems with compliance. And we would then (unintelligible) compliance with annual inspections. If it were required to have more than annual inspections in order to ensure compliance, we would do that. And all of our crews would go through the facility to make sure that they knew exactly what was in those facilities, where the safety issues were, with what the evacuation plans were, all those types of things. So we want to get ahead of it also. We don't want to Page 7 of 19

11 CITY OF TOLLESON CITY COUNCIL Page 8 of 19 (unintelligible) to say reactive versus proactive, but we want to make sure that nothing happens as opposed to responding after something does happen. So we're going to be on the front end of this. MAYOR TOVAR: Great. Great, great, great. Yes, Vice Mayor. VICE MAYOR RODRIGUEZ: Just because I'm curious. If I were to walk in a Home Depot, what product would I see on the shelves that you guys produce? CHRISTOPHER HERNANDEZ: Everything related to putting down ceramic tiles, Pergo-type floors, all the tooling, even down to the spacers that you would use for the tile, the dry saws, the wet saws, the putty knives. We supply everything you would possibly need to put flooring in place. Even carpet. We have a plant that does tack strip even for carpet. So we're like a one-stop - well, Home Depot is a one-stop shop because of us. In fact, our history in Home Depot, which we started way back with them when there were only six stores. You can tell how far back we go at Home Depot. But when Home Depot decided they wanted to get into the tile market, they came to QEP to support them with the adhesives, with the tooling, everything. And then Lowe's jumped on at that point. But I guess that's - we have a very strong relationship with Home Depot. But it's in buckets. It's in everything else. You'll see all that there. VICE MAYOR RODRIGUEZ: And you guys wholesale to them and then they sale? CHRISTOPHER HERNANDEZ: Yes. VICE MAYOR RODRIGUEZ: Okay. And then you guys don't plan to put any kind of retail facilities? CHRISTOPHER HERNANDEZ: No, sir. No, sir. VICE MAYOR RODRIGUEZ: Okay. CHRISTOPHER HERNANDEZ: That's not our model. One thing I want to bring up, another thing we do is our - Glenn and our maintenance staff, they go to hazmat training once a year. And so they get training by the fire department as to how to deal with chemicals in the event there's a spill, in the event there's - if you've got a chemical that would have a vapor release, they're trained in how to manage that. VICE MAYOR RODRIGUEZ: Thank you. MAYOR TOVAR: I just have a couple of follow-up. You said you would probably estimate bringing in 10 people from California. Page 8 of 19

12 CITY OF TOLLESON CITY COUNCIL Page 9 of 19 CHRISTOPHER HERNANDEZ: Yeah. MAYOR TOVAR: Could you tell me just a little bit about an employee that could work at your company? What type of skills are you looking for as far as an entry-level position in your - CHRISTOPHER HERNANDEZ: Entry-level position - a lot of our - obviously, we produce the product, but we also store it there. So a lot of our positions would be warehouse, learning how to use a scanner gun, which will enable you to go pick and load, to load a truck. We have - and this is not necessarily entry-level, but if somebody had some mixing/batching skill, we would bring them on board and eventually teach probably a job that would pay more. Obviously, we have an office to fill. We have about eight positions in the office we need to fill. But from an entry level, most of it would be picking and packing and loading. In the adhesives which (unintelligible), they'd be working the line where we fill the buckets. And it caps them, put them on a pallet, take them with a pallet and storing them in the warehouse. MAYOR TOVAR: Okay. Okay. Your comments, as you mentioned, one of the reasons why you were coming to the City of Tolleson, it was very attractive for your employees as well, too. Just a little background within our city is we love to work with our companies that are here. We do many events throughout the year that we ask for donations and/or your employees maybe volunteering time within our community to help build a strong community. CHRISTOPHER HERNANDEZ: Yes. MAYOR TOVAR: So we hopefully look forward for you to be a partner within our community as well and get to know your employees and embrace them. We want you to succeed. And we feel that working together would only heighten that successfulness within our community, whether it be our constituents working at your plant and/or your workers getting to know how we function as a city and what events that we do as well, too. CHRISTOPHER HERNANDEZ: We would love to do that. We already noticed you have a teen event coming up on February 2nd, and we're thinking like, "Maybe - well, somebody needs to be at that." MAYOR TOVAR: Yeah. CHRISTOPHER HERNANDEZ: Yeah, no, we're looking forward to that. Glenn's busy telling me, "Look at all the things we can do." So I think we're looking forward to that. And I love my team. And I think my team is the type of team that would more than love to be a part of that. Page 9 of 19

13 CITY OF TOLLESON CITY COUNCIL Page 10 of 19 MAYOR TOVAR: Awesome. Very great. Is there anyone in the audience that has any questions for or against this public hearing? Yes, gentleman in the back. MITCHELL ALLEN: Come up? MAYOR TOVAR: Yes, please. MITCHELL ALLEN: Basketball injury. (Unintelligible). MAYOR TOVAR: Cool scooter, though. MITCHELL ALLEN: Yeah. Mayor and Council, my name is Mitchell Allen. I'm with the Greater Phoenix Economic Council. We've been - I've been working with Chris and his team since roughly July. They're going to be bringing jobs to the community, to Tolleson. They're going to be manufacturing and distributing. And obviously, this is one of those companies that will be successful here, that's going to be here for a long time. Manufacturers don't easily pick up and move, and you've got one that's going to be expanding into Tolleson. So GPEC fully supports this. And we hope for your support as well. MAYOR TOVAR: Thank you. Thank you so much. CHRISTOPHER HERNANDEZ: Thank you, Mitchell. Appreciate it. MITCHELL ALLEN: Yeah. I'll scoot away. MAYOR TOVAR: Scoot away. All righty. I think we - if there's no other questions and no other comments from the public, we'll go ahead and close this public hearing. Crystal, if you could please note the time. Thank you, Mr. Hernandez. CHRISTOPHER HERNANDEZ: Thank you all. Thank you, Mayor. MAYOR TOVAR: We appreciate you coming. CHRISTOPHER HERNANDEZ: Thank you very much. MAYOR TOVAR: Thank you. We're moving now to Council Action. Approve or deny Use Permit Application # Council, how say you? COUNCIL MEMBER LABORIN: Motion to approve. MAYOR TOVAR: Motion been made by Council Member Laborin to approve. COUNCIL MEMBER MENDOZA: Second. Page 10 of 19

14 CITY OF TOLLESON CITY COUNCIL Page 11 of 19 MAYOR TOVAR: Seconded by Council Member Mendoza. All those in favor of approval, please signify by saying "Aye." COUNCIL MEMBERS: Aye. MAYOR TOVAR: Any opposed? Welcome to the City of Tolleson. CHRISTOPHER HERNANDEZ: Thank you so much. Moving on now to our Consent Agenda Items A through F. Council, how say you? COUNCIL MEMBER LABORIN: Motion to approve. MAYOR TOVAR: Motion been made by - COUNCIL MEMBER BANDIN: I second that motion. MAYOR TOVAR: - Councilwoman Laborin, seconded by Councilwoman Bandin. All those in favor of approval? COUNCIL MEMBER CARNERO: Can I - Mayor. MAYOR TOVAR: Yes. COUNCIL MEMBER CARNERO: I have a question though on item number D. MAYOR TOVAR: Item number D. Yes, go ahead. COUNCIL MEMBER CARNERO: Just a question regarding the audio visual solutions. I'm just wondering if you could expand a little bit in terms of what areas would be affected by this technology and audio visual. MALE: Mayor, Members of Council, Council Member Carnero, this is a cooperative agreement under the one GPA contract that simply allows us to procure services and equipment. Logicalis provides us primarily microwave technology for our data interconnect so each building is interconnected within the city. They provide hardware and software support for that. They also provide direct maintenance and support for the camera surveillance system at the fire department. COUNCIL MEMBER CARNERO: Just a follow-up. In terms of who would be monitoring the cameras and what we're viewing on that, who's - is there a central point where that will be monitored and - MALE: That's monitored by fire staff. COUNCIL MEMBER CARNERO: Okay. Thank you. Page 11 of 19

15 CITY OF TOLLESON CITY COUNCIL Page 12 of 19 MALE: There are -- George, correct me if I'm wrong -- six cameras. FIRE CHIEF GOOD: There's eight. MALE: Eight cameras spread across the building on the fire property. COUNCIL MEMBER CARNERO: Thank you. MAYOR TOVAR: Awesome. Okay. We had the first and the second. All those in favor of Consent Agenda Items A through F, please signify by saying "Aye." COUNCIL MEMBERS: Aye. MAYOR TOVAR: Any opposed? Consent Agenda Items approved. We do not have any Regular Agenda Action Items. We're moving now to Mayor and City Manager's Report of Current Events. Number 1 is our intergovernmental update. Mrs. Pilar Sinawi. INTERGOV/COUNCIL LIAISON SINAWI: Mayor, Vice Mayor, Council, I sent out the entire council, along with our staff, an update just to (unintelligible) to governor (unintelligible) state address, if you've had an opportunity to look at that. (Unintelligible) . Also, within that , you all have governing (unintelligible) priorities for this year. And then as the legislative session continues, I'll send periodic s on bills. So the initial one for the first update includes Governor Ducey's State of the State and his priorities for the year. MAYOR TOVAR: Awesome. And during - I was able to attend with Pilar and City Manager Reyes Medrano to the West Valley State of the State address in Glendale. I had the opportunity to speak with Governor Ducey and did invite him to our city. He is a - now a board member on the national JAG board. And in his last budget, donated - well, appropriated $300,000 to the JAG program. We are probably one of the only cities in Maricopa County that hosts our middle-school component and our after-school component that's housed right behind us. So they are looking forward to hopefully setting up a tour and getting to know our JAG program at the high school, elementary, and hopefully here at our City Hall. Number 2 is our follow-up on speaker request forms. Crystal, do we have any from last time CITY CLERK ZAMORA: We do not. MAYOR TOVAR: Okay. Moving on to number 3, our Community Events & Program Updates. Pilar. INTERGOV/COUNCIL LIAISON SINAWI: Mayor, Vice Mayor, Council, John Paul's not here, so I'll go over the events. The Teen Council dinner is coming up on February Page 12 of 19

16 CITY OF TOLLESON CITY COUNCIL Page 13 of 19 2nd. If you're planning to attend and haven't already, let us know. If you could please, let us know so we can make sure we make arrangements for your tables and the seating. You do have in front of you different flyers for all of the event. We have our Movie at Central Plaza on Friday, February 16th. That will be "Lion King." The movie will start approximately at 6:45 because they're waiting for sundown. So we are having a Coffee with Mayor and Council. And you have that in front of you also. We started just slightly earlier to try to allow time before the movie starts for that. The Daddy Daughter Dance is coming up on February 24th. That's hosted in conjunction with the City of Goodyear. The deadline to purchase tickets for that is February 16th. They've had a lot of success with this program partnering with the City of Goodyear. They always have a really good attendance. And then the Latin Jazz Festival is coming up on March 3rd and 4th. I don't know the names of the bands, but as soon as we start to get additional information, I'll be sure to pass that along to Council. MAYOR TOVAR: Awesome. CITY MANAGER MEDRANO: (Unintelligible) still researching events. MAYOR TOVAR: Oh, okay. Vice Mayor. VICE MAYOR RODRIGUEZ: Yeah, really quick. Just after the events, this Thursday at 5:30 actually here in the Parks and Rec building, we're going to be hosting the second meeting for the initiative to kind of redesign our community offering when it comes to recreation programs. And so the first one was very successful, and we look forward to having is second one this week. MAYOR TOVAR: Awesome. VICE MAYOR RODRIGUEZ: And coming back and reporting to you folks on what we were able to come up with. MAYOR TOVAR: Great. We're going to move on now to our number 4 item, and that involves our Vice Mayor giving a presentation on his commission of the Sonora-Arizona and Arizona-Mexico Commission, AMC. Their annual meeting in Puerto Peñasco. VICE MAYOR RODRIGUEZ: So at the request of the Mayor and also as a MAG member, this was a big to do for Maricopa Association of Goverments. I attended - it's really called a mega region, but it's a collaborative between the State of Arizona, our governor, and the governor of the State of Sonora, Mexico. It's an initiative to really maximize the relationship, trading relationship between both countries. Page 13 of 19

17 CITY OF TOLLESON CITY COUNCIL Page 14 of 19 And I think many times as a state, maybe it has to do with the federal politics, or even sometimes local politics, we don't stop and realize how important our economy really relies in the country of Mexico, in particular, the State of Sonora. And so what I did is the first thing I did is I just did a quick little list. So I wasn't going to do a 20-slide presentation. I started with a 20-slide presentation. (Unintelligible). MAYOR TOVAR: Madame Mayor, Mr. Carnero really wanted one. COUNCIL MEMBER CARNERO: You're on the clock. VICE MAYOR RODRIGUEZ: The first list basically is a list of state and local resources. One of the big players is Arizona Commerce Authority. And I should add, everything I'm going to talk about today, figures really quick, I have all the backup resources. I'm going to give those to Crystal. So if anybody would like to make copies, you can just review them at your convenience. It's really good information. The Arizona Commerce Authority really focuses on global trade. And they agree to this corridor. It's actually pretty cool. It starts in Mexico City and goes all the way up to Canada, Calgary. And we are smack-dab in the middle. We're perfectly located from California. We have six ports of entry in Mexico, one of which can turn into a big port out of Puerto Peñasco, which is (unintelligible) because of its coastal connection, if they ever built a port there. And we have direct routes all the way to Vegas, L.A., and the one that goes through Nevada goes all the way up to Calgary. So it's - and then of course you've got Texas in the east part of our border. So you have a lot of potential to create a big-time commercial heard, as you heard from the presenter tonight. So the Sun Corridor, its study in particular has done a lot of work on that. And so if you read one, this is really an impactful one. The Arizona Mexico Commission is the one who created the mega region event that we had in Puerto Peñasco. And that was really cool. I have a picture of - a number of pictures of other MAG members of the Economic Development Committee, to include Dr. Luna, who is a council member for the City of Mesa. And then also Council Member Fazar (sp?), I think his last name is, who is a council member for the City of Carefree, but he's a former Wolverine. He graduated from - he's a Wolverine. He graduated from Tolleson. MAYOR TOVAR: Small world. VICE MAYOR RODRIGUEZ: Yeah, small world but it's really cool. Pictures with the mayor of Puerto Peñasco and the governor, and so on and so forth. So all these other ones are really good resources. MAG, the Arizona Department of Transportation. Another big one is the Arizona Tourism Association. All three universities are involved, Page 14 of 19

18 CITY OF TOLLESON CITY COUNCIL Page 15 of 19 ASU, UofA, and NAU have partnerships with educational institutions in Mexico to support this initiative. And then so I also put down some - I took some notable comments that are included in here but that I think is a foundation of kind of the relationship that I think we should be fostering I think as an organization, or at least exploring. So I'll just go over them really quick. Number one, as I mentioned earlier, Arizona actually shares six points of interest with Mexico, which includes Mariposa. The Mariposa port has been expanded for the sole purpose of increasing commerce through the border. If you guys don't know, if you guys haven't been across the border, getting across is a headache, to say the at least. And don't go to Rocky Point during spring break. You will be in line for about a good eight hours. But if you're trying to cross from Nogales and you've got goods and you're a diesel, there's a port that has been expanded so that you can speed up the process of inspection. All the customs from both countries can go through inspections coming in and out, import/export. And it's designed to expedite and really maximize economic commerce and trade right there on the border immediately. So the border cities, Nogales in particular, is pushing for a second port or expanded so to continue the amount of imports that are coming to Arizona and exports that we send down there. Number two, a facility - this is a cool one. This is going to start pretty soon here. It's a facility that inspects goods being sent from American companies to Mexico, will open Phoenix-Mesa Gateway International Airport in the coming years. This is the first of its kind. So basically what's going to happen is Mexican custom officers will be operating and working out of Mesa. So they'll live in Mesa and they will work out of Mesa. And all of the goods that are going to be flown into Mexico City will be inspected in Mesa. So when they arrive in Mexico City, they forego all of the (unintelligible) necessities. There will be no inspections. The goods will go straight from the airplane onto diesels and on to the city. And so that's a model that the national government has allowed in one place, and that's in Mesa. So it's a significant commitment, about $230 million. And it's going to take about 360 acres of land out there to develop. So - MAYOR TOVAR: Vice Mayor, real quickly - VICE MAYOR RODRIGUEZ: Yeah. MAYOR TOVAR: - on that one, so it's just air, but are they thinking of maybe even doing anything by rail? Page 15 of 19

19 CITY OF TOLLESON CITY COUNCIL Page 16 of 19 VICE MAYOR RODRIGUEZ: They have rail. And that's part of the (unintelligible). Rail, air, freight are the biggest modes of transportation when it comes to goods and services, particularly commodities. MAYOR TOVAR: Okay. VICE MAYOR RODRIGUEZ: So we have a lot of commodities that go back and forth. For Mexico, especially during the wintertime, we get a lot of produce. But we export a lot of automotive, technology, and also aeronautical and nuclear goods to Mexico. So, that's going to be on the horizon here. And Governor Ducey was really the quarterback to help land that opportunity in Mesa. MAYOR TOVAR: Awesome. VICE MAYOR RODRIGUEZ: Arizona's (unintelligible) partners. If we did not know, I think it's important to note that it's Mexico. In 2016 we imported the equivalent of $7.5 billion into the Mexican economy. I'm sorry, into our economy. A far second is China, which of course is the biggest, if not - population-wise, clearly the biggest country in the world. They're at 2.6. So it pales in comparison to Mexico. Probably four times as much, at least three times as much (unintelligible) that we get with Mexico when it comes to imports. And followed by Canada, which is even less, at 1.3. It's unfortunate that our other border, we don't have such a great relationship. But again, it goes back to the Sun Corridor and us trying to improve that connection all the way up to Calgary. And hopefully down the road, it'll be dividends. Exports. We export $8.3 billion worth of goods from Arizona into Mexico. They are clearly by far our biggest trading partner. And these numbers are from We've exceeded those numbers big time. The one that comes closest to us in exports is Canada, at $2.1 billion. And then South Korea at 1.3. So $8.3 billion and the closest one is $2.1 billion. That is a significant statement when you talk about who your greatest trading partner when it comes to exports and imports. Most Hispanics in the US - here's some myth busters, okay, because there's some - there's a considerable amount of people that listen to the media and they just assume that this is the truth. But these are myth busters. And again, they're all supported here. And so if people don't believe me, they can actually get the federal bureaus and all kinds of different research that came up with these numbers. But most Hispanics are actually US-born. 65% of Hispanics in this country, in the State of Arizona, are actually born in the US. And so then you have a percentage that have legal status and you have those that don't have legal status. But clearly by far, 65% and greater are here legally. So it's a big misnomer that we're all here illegally. Page 16 of 19

20 CITY OF TOLLESON CITY COUNCIL Page 17 of 19 In 2014, entrepreneurships studies declared Mexico as the number one entrepreneurial potential in positive attitude towards business. They were followed by Columbia and then China and then Brazil. So, the entrepreneurial spirit is in our blood, to say the least. And you see with the amount of minority-owned businesses, Latino-owned businesses not only in the southwestern United States but clearly throughout the country. And that is on an upward trajectory. That's not going anywhere. So when we get here, we mean business. That's what I'm trying to say. All right. In Arizona - and this is very important because I think sometimes we minimize the voice of women in the state. But in Arizona, out of all Hispanic businesses that are all growing, by far, hands down, female-owned Hispanic businesses are growing at a rate of 116%. They are lapping people left and right. Women-owned businesses, in particular, Hispanic women-owned businesses, are just doing a tremendous job for our economy. So it's important to note. So myth number one, the myth is that immigrants don't pay enough taxes. Well, actually, immigrants contribute significantly to state and local taxes. And we are a local government. In 2017, they contributed in excess of $11.74 billion dollars to the US economy. That's B with the billion. Okay. Myth number two, immigrants send all of their money back to their countries of origin. Okay. Well, on average, immigrants do send about 13% back home to their country of origin. 87% stays here and reinvested into our communities. Okay? One you don't hear, and it's a serious note too, especially if you're somebody like me that really believes in family and always being there for each other. From the 13% that is sent back, the vast majority is sent back to their moms. So it doesn't go back to support some drug cartel or some other stuff. It goes back to their mothers. And so - or other family members, primarily their mothers. And I thought that was a very important point to make. Followed - and that's 40.6% of Mexicans, followed by the Dominican Republicans that sent 49%, almost half of their money back to their mothers. And then of course it goes from there. Myth number three, immigrants don't leave when they're supposed to. They overstay their visas. And I've got to tell you that that myth is actually true. There's a lot of visas that are overstayed, and when immigrants are supposed to go back to their country of origin, they actually don't. However, most people would have you believe that those are Mexican immigrants. Well, the reality is that Canadians, specifically 119,418, overstay their visas, compared to Mexico, which is $46,658. So if we're going to build a wall, we might want to start on the Canadian border. I'm not an advocate of a wall, but if you want to go by the figures, here they are. So thank you for the opportunity. I guess my request would be that - I know we're kind of early in the game, but Governor Ducey is a big supporter of increasing trade with Page 17 of 19

21 CITY OF TOLLESON CITY COUNCIL Page 18 of 19 Mexico. We already know that they make up 40% of our trade in this country, in particular in Arizona. Jason, Mayor, if there's any way that we could tap into that, I think it would be a win-win for everybody. We have warehouses. There's economic opportunities. There's businesses in Mexico that are American-owned. There's businesses here that are Mexican-owned. And right now is a very good environment to increase that kind of cooperation, especially if it's going to create revenues for both parties. What the future holds, I honestly don't know. There's a lot of talk about NAFTA and federal changes and all that other stuff. But - MAYOR TOVAR: (Unintelligible). VICE MAYOR RODRIGUEZ: Yep, yep. But the reality is we can either sit here and wait to see what happens or we can move forward and march and render whatever successes come our way because of it. And so, I'm willing to march. So that would be my call, if at a minimum we can explore these opportunities. And if maybe one of them will land or a couple, it'll be better for everybody. MAYOR TOVAR: Absolutely. VICE MAYOR RODRIGUEZ: So, thank you for the opportunity, Mayor, for going. MAYOR TOVAR: No, absolutely. Thank you. Thank you for your time and your report back. Thank you so much. Look forward to, like you said, moving forward. Marching, marching forward, not moving forward. VICE MAYOR RODRIGUEZ: Let's do it. Let's do it. COUNCIL MEMBER BANDIN: Great. MAYOR TOVAR: All righty. So we are now, not at speed record, but under an hour. I would like to call for an adjournment. COUNCIL MEMBER BANDIN: I move to adjourn. COUNCIL MEMBER LABORIN: (Unintelligible). MAYOR TOVAR: Motion been made by Council Member Bandin. Seconded by Council Member Laborin. All those in favor of adjournment, please signify by saying "Aye." COUNCIL MEMBERS: Aye. MAYOR TOVAR: We are officially adjourned. 6:40. Page 18 of 19

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