west valley
Volume 31 Issue 27 Goodyear, AZ
May 20, 2020
Business Briefcase
BY TOM SCANLON
West Valley View Managing Editor
IN THE BIZ
“Risky Business” isn’t just the name of an ’80s Tom Cruise movie—it’s the unfortunate theme for many entrepreneurs, during and after the COVID-19 pandemic. Keeping a sharp eye out for the legality of things in our litigious society, the Glendale Chamber of Commerce hosted a Zoom meeting May 14 that offered legal tips for businesses reopening in a pandemic. There was plenty to chew on for patrons, as well. Christopher Callahan, Alexis Glascock, Mario Vasta and Terry Evans from Fennemore Craig Attorneys took turns talking about “how to manage risk and minimize the risk of claims now that Arizona’s stayat-home order is beginning to phase out.” They said as customers return to your business, there are ample possibilities for contract and tort disputes. Callahan noted Rep. Andy Biggs of the 5th Congressional District (Chandler, Queen Creek) introduced legislation aimed at protecting businesses. According to a Biggs press release, his bill is “to protect businesses taking reasonable steps to prevent the transmission of COVID-19 from frivolous negligence claims.” The Biggs bill “requires a specific jury instruction in civil actions in federal court that include a claim alleging negligence arising from the transmission of COVID-19 (i.e., coronavirus disease 2019) and a request for damages. “Specifically, a court must instruct the jury that negligence may not be found solely on the basis of holding oneself open for business.” H.R. 6601 was introduced by Biggs April Public Notices ............... page 3 © Copyright, 2020 West Valley View, Inc.
23 and referred to the Judiciary Committee the same day. Biggs is also on the Judiciary Committee. Evans then took over to talk about insurance coverage. He stressed for business owners to read the fine print on their policies at renewal time and be on the lookout for “communicable disease exclusion”—which could, theoretically at least, allow an insurance company to wash its hands of any claim during a pandemic. “I’ve seen two renewals where they tried to slip them into policies,” he said. And, he added, with so many people working from home, the “workplace” definition has often changed. “If you’re working from home and trip over your dog at 2 a.m.—technically, that’s workers’ compensation,” Evans said. Callahan then jumped in to note most insurance policies don’t cover “business interruption” due to COVID-19. Loss of business income “has to result from physical loss or damage to your property,” Callahan said. He pointed to exclusionary language in most policies: “We will not pay for loss or damage caused by or resulting from any virus, bacterium or other microorganism. …” Callahan noted that the most common claim in our litigious society falls in the category of negligence. Checking temperatures before allowing employees to work is one way to show “duty” if a person alleges they caught COVID-19 at your workplace and sues you, Callahan said. The attorney stressed it may be important to show “you’ve acted reasonably.” “That can be you’re following guidelines—state or local official guidelines— (USPS 004-616) is published weekly
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Steven Strickbine, publisher Christina Fuoco-Karasinski Executive Editor
maintaining social distancing, wearing masks and gloves, avoiding direct contact with customers as much as possible.” And, if you find out an employee is sick from the virus, do you tell customers? “Technically, it’s a good thing,” Callahan said. “However, there are HIPAA (Health Insurance Portability and Accountability Act) guidelines.” Meaning: Trying to avoid one lawsuit could be a trap for another. Another conundrum came up with the idea of having customers sign waivers promising not to sue if they contract COVID-19 at your business. “That might give them the idea to sue you,” Callahan said. •Looking at things from all angles is great for lawyers but can leave the rest of us feeling cynical. To cleanse the palate, so to speak: Panda Cares, the philanthropic arm of Panda Express, has donated $77,760 worth of personal protective equipment to Phoenix Children’s Hospital. The donation includes 9,600 KN95 respirators and 80,000 single-use surgical masks. “This donation is simply monumental when it comes to fighting the spread of coronavirus, and for protecting our health care workers, patients and families,” said Steve Schnall, senior vice president of Phoenix Children’s Hospital. “Panda Express and Panda Cares have made an extraordinary effort to provide this equipment the hospital relies on to give and receive best-in-class care.” Panda Express has multiple locations in the West Valley, including Goodyear, Glendale and Peoria. Subscriptions are $26 for 2 years, $14 for one year. Periodicals postage paid at Phoenix, AZ 85026.
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State taking steps to reopen economy, but reviving it could take years BY CHRISTOPHER SCRAGG Cronkite News
Arizona took another tentative step toward reopening the state’s economy when dine-in restaurants were allowed to resume limited service. But while reopening the economy could come relatively swiftly, experts say reviving the economy could take years. As businesses shuttered by COVID-19 and resulting high unemployment have led to a collapse in sales and income tax revenues, state and local governments may be forced to slash budgets. That, in turn, could slow the overall recovery, economists say, with fewer workers and services pumping money back into the economy. Arizona’s Joint Legislative Budget Committee predicts the state could face a $1.1 billion budget shortfall for the rest of this fiscal year and into fiscal 2021. But that’s just the midpoint of a shortfall estimated to fall between $600 million and $1.6 billion. The state may be in a relatively good position with a $973 million “rainy day” fund to draw on in emergencies like this. But if that’s not enough, Arizona – like other states – may have to make budget cuts to weather the storm. “Unlike the federal government, states can’t deficit spend and they have to balance their budgets, so you know with these types of revenue loss states could face significant cuts without assistance,” said Erica MacKellar, a policy specialist at the National Conference of State Legislatures. Gov. Doug Ducey, saying Arizona was “headed in the right direction” in terms of new COVID-19 cases, allowed reopening of retail businesses, gyms, swimming pools, barbers and salons, with social distancing rules in place. And restaurants were allowed to resume dine-in services May 11, with limits on the numbers of people who can be served at one time. But the JLBC still projects Arizona
will lose hundreds of millions in revenue this year and next from multiple sources, ranging from corporate income tax, which is expected to decline 39% this year, to income tax withholdings, predicted to drop 15% in the fourth quarter of this fiscal year. As revenues are falling, state costs will be climbing in some areas. Arizona’s Medicaid agency, the Arizona Health Care Cost Containment System, is projecting to see caseloads jump by as much as 30% by the end of fiscal 2021, bigger than the increase the state saw during the Great Recession, according to state documents. MacKellar said if states run out of money they could begin hiring freezes, or could start broadly cutting agencies. But with federal assistance and money from the state’s rainy day fund, Arizona may be able to take the economic hit and “tread water,” said state Sen. J.D. Mesnard, R-Chandler, the chairman of the Senate Finance Committee. “At this moment, I’m cautiously – but very cautiously – optimistic that everything that will come from the feds and the rainy day fund and other tools in the toolbelt, that we may not have to cut too much,” Mesnard said. “We’re just right now in a waiting game to see where the bottom is.” But with the bottom potentially as high as $1.6 billion, Mesnard said the gap will be “impossible to budget for” until the numbers become clearer. Nationwide, state budget shortfalls could total $650 billion, according to the Center on Budget and Policy Priorities. “States face a fiscal crisis that’s much worse than even during the Great Recession of a decade ago,” said CBPP fiscal director Michael Leachman, during an April conference call. “They urgently need significantly more fiscal relief from the federal government to avoid laying off workers and imposing deep budget cuts at exactly the wrong time – when those cuts
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will make an already weak economy even weaker,” Leachman said. The $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act enacted in March appropriated $110 billion to states and $30 billion to cities, but some say it’s not enough. And the Treasury Department said those funds are limited to use only for “necessary expenditures incurred due to the public health emergency,” limits the critics say are too restrictive for the broad needs of local and state governments. Mesnard said it’s a challenge “when you don’t know what the rules are for the money that you’re given.” “We’re still learning about whatever restrictions we have on how we allocate it,” Mesnard said. “Eventually they’ll put some meat on the bones as far as the money usage that’s going to the states.” In the worst-case scenario, states will have to cut their budgets but Mesnard said that would be a struggle when so much of the budget is essential services like education and health care. He called those “the last place we’re going to cut. “Those three issues, public safety, education, health care, are the three things that encompass 90% of the budget,” he said. Cuts to state and local budgets would “make the downturn worse,” said Stephanie Aaronson, an economic director at the Brookings Institute. “States would end up having to lay off civil servants and cut back on services in a way that will be detrimental to the health of the economy,” she said. Aaronson said there’s a lesson to be learned from the Great Recession in 2008. “I think one thing that made it so difficult for the country to emerge strongly from the Great Recession was the fact that state and local government spending recovered so slowly,” she said. “It was really a drag on the economy.”
MAY 20, 2020
Public Notice ARTICLES OF ORGANIZATION HAVE BEEN FILED IN THE OFFICE OF THE ARIZONA CORPORATION COMMISSION FOR I Name: MQM INVESTMENTS, LLC II The address of the registered office is: 1511 S 84TH DRIVE, TOLLESON, AZ 85353, The name of the Statutory Agent is: MICHAEL QUINTANA III Management of the Limited Liability Company is vested in a manager or managers. The names of each person who is a manager and each member who owns a twenty percent or greater interest in the capital or profits of the limited liability company are: MAN-AGER: MICHAEL QUINTANA, 1511 S 84TH DRIVE, TOLLESON, AZ 85353. Published West Valley View/ Business May 13, 20, 27, 2020 / 30514
Public Notice NOTICE OF PUBLIC HEARING CITY OF TOLLESON CITY COUNCIL NOTICE IS HEREBY GIVEN that the City of Tolleson Mayor and Council will conduct a PUBLIC HEARING on TUESDAY, JUNE 9, 2020 beginning at 6:00 P.M. via Zoom Conference at https://us02web.zoom. us/j/5439720804 or via telephone at 1-253-215-8782 (Meeting ID: 543 972 0804), for the purpose of: Soliciting comments from interested parties in reference to Site Plan Application #20050001 as submitted by Jay Irvine, on behalf of Trammell Crow Company, to construct a 282,000 square foot industrial building and related site improvements at the northwest corner of 104th Avenue and Cowden Lane – 420 South 104th Avenue, Tolleson, AZ. The lot (APN 101-02-003S) is approximately 701,621 square feet and is currently zoned Light Industrial (I-1). Please visit the City’s website
at www.tolleson.az.gov/archive to view the agenda with detailed participation instructions. Published in the West Valley View and West Valley Business on Wednesday, May 20, 2020. / 30686
the community. If Home Rule is not continued, the City will be required to cut spending to the current estimated state-imposed limitation even though it has the money to pay for the expenses. Written comments may be sent to City of Tolleson, City Clerk’s Office, 9555 West Van Buren Street, Tolleson, Arizona 85353 or emailed to cityclerk@tolleson. az.gov. Written comments may also be submitted at the public hearing via Zoom by clicking the chat button. Any interested person may participate and be heard at the public hearings. Published in the West Valley View and West Valley Business on Wednesday, May 20, 2020 and Wednesday, May 27, 2020. /Users/elainecota/Desktop/06 09 20 and 06 23 20 Alternative Expenditure Limitation Public Hearings - Home Rule Option. docx Published in the West Valley View and West Valley Business on Wednesday, May 20, 27, 2020. / 30687
Public Notice CITY OF TOLLESON, ARIZONA PUBLIC NOTICE OF HEARINGS FOR HOME RULE OPTION Pursuant to Arizona State Law, A.R.S. § 41-563.01, notice is hereby given that the City Council of the City of Tolleson, Arizona will hold two public hearings at the dates and times set forth below to consider approval of Resolution No. 2421 proposing the Home Rule Option – Alternative Expenditure Limitation to maintain local control over the City of Tolleson budget for the next four years and submitting the issue to the qualified voters of the City of Tolleson: THE TOLLESON CITY COUNCIL WILL HOLD A PUBLIC HEARING AT ITS REGULAR MEETING ON JUNE 9, 2020 AT 6:00 P.M. THE TOLLESON CITY COUNCIL WILL HOLD A PUBLIC HEARING AT ITS REGULAR MEETING ON JUNE 23, 2020 AT 6:00 P.M. Both hearings will be held via Zoom Conference at https:// us02web.zoom.us/j/5439720804 or via telephone at 1-253-2158782 (Meeting ID: 543 972 0804). Please visit the City’s website at www.tolleson.az.gov/archive to view the agenda with detailed participation instructions. After the second public hearing, the City Council may convene a special meeting and vote to approve the Resolution on the proposed Home Rule Option – Alternative Expenditure Limitation and submit the issue to the qualified voters of the City for their approval at the November 3, 2020 General Election. Under the Home Rule Option, the City may determine its own expenditures based on its revenue and the needs of
Public Notice CIUDAD DE TOLLESON, ARIZONA AVISO PÚBLICO DE AUDIENCIAS PARA LA OPCIÓN DE REGLA LOCAL De conformidad con la Ley del Estado de Arizona, A.R.S. § 41-563.01, se les notifica que el Concejo Municipal de la Ciudad de Tolleson, Arizona llevará a cabo dos audiencias públicas en las fechas y horarios establecidos a continuación para considerar la aprobación de la Resolución No. 2421 que propone la Opción de Regla Local – Limitación Alternativa de Gastos para mantener el control local sobre el presupuesto de la Ciudad de Tolleson durante los próximos cuatro años y presentar el tema a los votantes calificados de la Ciudad de Tolleson: EL AYUNTAMIENTO DE TOLLESON REALIZARÁ UNA AUDIENCIA PÚBLICA EN SU REUNIÓN OR-DINARIA EL 9 DE JUNIO DE 2020 A LAS 6:00
P.M. EL AYUNTAMIENTO DE TOLLESON REALIZARÁ UNA AUDIENCIA PÚBLICA EN SU REUNIÓN OR-DINARIA EL 23 DE JUNIO DE 2020 A LAS 6:00 P.M. Ambas audiencias se llevarán a cabo a través de Zoom Conference en https://us02web. zoom.us/j/5439720804 o por teléfono al 1-253-215-8782 (ID de la Reunión: 543 972 0 8 0 4 ) . Visite elsitio web de la Ciudaden www.tolleson.az.gov/archive para ver la agenda con instruc-ciones detalladas de participación. Después de la segunda audiencia pública, el Consejo de la Ciudad puede convocar una reunión especial y votar para aprobar la Resolución sobre la Opción de Regla Local -Limitación Alternativa de Gastos y presentar el tema a los votantes calificados de la Ciudad para su aprobación el 3 de noviembre de 2020 durante la Elección General. Bajo la Opción de Regla Local, la Ciudad puede determinar sus propios gastos en función de sus ingresos y las necesid-ades de la comunidad. Si la Regla Local no continúa, se re-uerirá que la Ciudad reduzca los gastos a la limitación actual estimada por el estado, aunque tenga el dinero para pagar los gastos. Pueden enviar comentarios por escrito a la Ciudad de Tolleson, Oficina del Secretario de la Ciudad, 9555 West Van Buren Street, Tolleson, Arizona 85353 o enviarse por correo electrónico a cityclerk@tolleson. az.gov. Los comentarios por escritos también pueden presentarse en la audiencia pública a través de Zoom haciendo clic en el botón de chat. Cualquier persona interesada puede participar y ser escuchada en las audiencias públicas. Publicado en el West Valley View y West Valley Business el miércoles 20 de mayo de 2020 y el miércoles 27 de mayo de 2020. / 30688
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MAY 20, 2020
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