Newton Independent

Iowa Telecom's first quarter profits fall

Newton Independent

Iowa Telecom announced first quarter net income of $4.51 million or $0.14 per share, compared to $6.96 million or $0.21 per share in the prior year quarter.

Operating Income for the quarter was $14.86 million, compared to $19.51 million in the year-ago quarter.

Revenues for the quarter rose to $61.29 million from $60.85 million in the previous year quarter.

"Our business continued to deliver another solid quarter of overall results, despite the challenging macroeconomic environment," said Alan L. Wells, Iowa Telecom chairman and chief executive officer.

You can read the company press release here.

Skiff Medical Center freezes salaries

By PETER HUSSMANN

Skiff Medical Center employees won't be receiving pay increases or cost of living adjustments as was usual come each July 1 due to the hospital's struggling financial condition.

Skiff's board of trustees today agreed with Interim CEO Francie Jahn's recommendation that salary hikes would not be part of next fiscal year's budget considering the city-owned hospital has operational losses for the year approaching $2 million.

Jahn told the board she wrangled over whether it would be feasible to provide employees with pay increases next fiscal year but in the end told the trustees that she "would not recommend" that salary increases be included in the pending budget.

Trustee John Lee commiserated with the position the decision places employees but noted that a number of other central Iowa companies have also made the same decision and even cut back on employees' hours.

Board member Nancy Noth said it was a "hard decision," but hoped the hospital's finances would improve to the point that raises could once again be offered.

"I hope we can turn this around," she said.

What needs turning is the hospital's $1.7 million year-to-date operational loss, a figure that is $1 million ahead of the losses the hospital incurred at the same point in the last fiscal year. For 2008, Skiff recorded total losses of $1.3 million. There are three months left in this fiscal year.

Interim Chief Financial Officer David Brokaw pointed out a few bright spots in March's budget, which recorded losses of $91,000 compared to a combined $530,000 in January and February, including a $1 million increase in gross revenues and a large increase in medical/surgical procedures - primarily attributed to Dr. Ron Charles' return to practice in Newton.

Brokaw, who recently retired after 30 years as CFO at the Creston hospital, also told the board about his efforts to decrease the amount of time it takes Skiff to bill for procedures and stepped up efforts to make collections on unpaid accounts. He said he plans to hire a collections firm to attempt to lower the amount the hospital write's off in bad debt. With Gene Williamson's pending departure from the finance department, Brokaw is also working diligently to complete the coming fiscal year's budget, which the board is expected to receive at next month's meeting, the board was told.

In other action today, the trustees, with member Gary Kahn recusing himself, approved a $2,500 donation to the Newton Development Corporation, down from previous year's gifts of $10,000.

While noting the benefits the hospital receives from NDC's efforts at bringing new business to the community, board members said the $10,000 donation request from the NDC was beyond their means at this time.

"We benefit from the new business the NDC brings, but I don't see why we need to be the largest donor, or one of the largest," said trustee Jeff King, also noting the board's previous decision to freeze hospital employees' salaries as a factor in the decision to substantially lower the donation.

Elected officials voicing opposition to Alliant Energy increase

City councils in Mason City and Clear Lake have voted to officially oppose the rate increases proposed by Alliant Energy.

Alliant is proposing proposing an overall 18.1 percent rate hike which increase a typical homeowner's electric bill about $176 a year. Hearings on the matter will be held later.

The Mason City newspaper has a story on the councils' actions here.

New call center coming to Marshalltown

Newton Independent

A new call center employing 200 people will begin hiring next month reaching full capacity by this fall.

Thomas L. Cardella & Associates will employ 185 entry level workers in its new facility, along with 15 managers. Yearly payroll is expected to be about $4 million.

You can read a press release on the new venture here.

Iowa Speedway supporting lottery losers

Newton Independent

A television report today talks about a new Iowa Lottery promotion that gives Iowa Powerball losers the chance to at least redeem those non-winning tickets for discounts at statewide attractions, including the Iowa Speedway.

As reported on KWWL-TV, people who hold losing Powerball lottery tickets purchased in May and June will be able to get discounts for tickets purchased at preselected tourist venues as part of the lottery's new "staycations" promotion. You can read more about it here.

And speaking of the Iowa Speedway, it appears Pizza Ranch is now a sponsor for one of the races in the Newton track's July racing weekend. You can read that here.  

Latest updates available for Swine Flu outbreak

Newton Independent

The Centers for Disease Control reports today that the number of clinically confirmed cases of Swine Flu continues to grow both in the United States and internationally.

The CDC has put together a Web page that gives U.S. citizens the latest information on the spread of the disease both nationally and across the globe. In addition, the site gives information on how individuals can protect themselves from the disease and actions that may need to be taken should its spread reach pandemic levels. It can be found and bookmarked to an individual's computer here.

And here's a map (forwarded to me by an alert reader) that shows the location of the Swine Flu cases in the U.S. and a little information about each confirmed case. 

Skiff Medical Center slows financial losses to a trickle

By PETER HUSSMANN

Skiff Medical Center lost money again last month but the pace slowed to a trickle compared to the previous two months.

For the month of March, the Newton-owned hospital recorded expenses over revenues totaling $91,434. That compares to an operating loss $200,000 in February and $330,000 in January.

For the fiscal-year-to-date, Skiff has recorded operating losses of $1.73 million, more than $1 million more than the losses reported through the first nine months of 2008 operations. Last fiscal year, the hospital ended with operational losses totaling $1.3 million. Two years ago, the hospital reported $1 million in profits from year-long operations. There are three months remaining in the hospital's current fiscal year.

Skiff Medical Center's March financial results were released in advance of the board of trustees' meeting at 11 a.m. Wednesday.

The hospital's continued financial losses are being studied as part of an operational assessment currently under way. The B.E. Smith began its study of hospital operations last week. In addition to the firm's financial analysis of operations, the group is studying Skiff's management structure and the management of its labor structure. The firm will report its findings to trustees once completed.

The operational assessment will be discussed as part of Wednesday's meeting agenda. In addition, the board will discuss the search process for a permanent chief executive officer. Other agenda items include a request from the Newton Development Corporation for a $10,000 donation, discussion of the quarterly patient satisfaction report, proposed budget assumptions and cost-of-living (salary) adjustments.

Sentencing continued for former Newton attorney on tax fraud charges

By PETER HUSSMANN

Sentencing of a former Newton attorney for failing to file state income tax returns was continued until Thursday, court officials said today.

R. Eugene Knopf had been scheduled to be sentenced on two counts of fraudulent practices in the second degree in Polk County last week. He pled guilty to the state charges on Feb. 19.

Four counts of fraudulent practices in the second degree were filed against Knopf in April 2008. The state alleged that Knopf failed to file state income tax returns for four consecutive years between 2002 and 2005. Court records further allege that Knopf did not file tax returns with the state between 1993 and 2000, though no charges were brought concerning those time frames.

Fraudulent practices in the second degree is a class D felony punishable by up to five years in prison and a $7,500 fine.

Lawmakers correct sales tax glitch

By PETER HUSSMANN

Though state lawmakers last year inadvertently opened the door for the Iowa Speedway owners to collect an additional penny rebate on taxes collected on sales of merchandise at the facility, the threshold was never traversed, state officials say.

The door was opened last year when Iowa lawmakers increased the state sales tax rate from 5 to 6 percent. The penny increase replaced individual school districts' School Infrastructure Local Option sales taxes with a statewide collection system aimed at equalizing funding sources among all districts.

Several years earlier, in assisting the Iowa Speedway's development, state lawmakers approved a measure where the owners of the racetrack are able to obtain a rebate on the state sales taxes paid by retailers at the facility for a period of 10 years, but not to exceed $12.5 million. At that time, the state sales tax was 5 percent. Only the state sales tax is subject to the rebate. The collection and distribution of Newton's local option sales tax is not impacted.

The speedway's sales tax rebate provision runs to Jan. 1, 2016 or until the full amount agreed upon has been paid. Provisions included in the law state it sunsets should ownership of the facility change.

Lawmakers this session unanimously supported - and the governor signed on April 15 - a measure that specifically limits the rebate for sales taxes collected at the speedway to not more than 5 percent of the sales price of merchandise sold at the facility.

Renee Mulvey, public information officer for the Iowa Department of Revenue, said Iowa Speedway continues to collect rebates on only 5 percent of the state sales tax and had not sought to collect on the additional penny that went into effect July 1, 2008. She said raceway officials were aware and agreed to the technical changes included in Senate File 322, the measure that includes specific language on the speedway's rebate amount.

Due to "confidentiality reasons," the Department of Finance cannot release the amount of sales tax refunded to the Iowa Speedway so far, she said.

Whirlpool's 1Q profit falls, but beats expectations

Newton Independent

Shares of Whirlpool stock were on the rise this morning, up $6 a share in early trading, on news that even though its first-quarter profit fell 28 percent, the results still beat analyst's expectations.

The world's largest manufacturer of home appliances said earnings slid to $68 million, or 91 cents a share, in this year's first quarter compared to $94 million, or $1.22 a share in the same period a year ago.

Earnings were helped by cost reductions, including a post-retirement benefit plan change that impacted former Maytag workers in Newton, and productivity initiatives. Whirlpool said those gains, however were offset by higher material costs and lower global sales, down 23 percent to $3.57 billion.

Whirlpool's press release on its first quarter earnings can be read here.  You can find the company's  first quarter SEC filing here.

Iowa's First Lady visits with Newton Quakerdale students

Newton Independent

Iowa's First Lady Mari Culver visited with students at Quakerdale in Newton recently. Pictured in back are Timber, Morgan, Culver and Brandon. The second row includes Alyssa, Ali, Kayla and Tabby. In front is Brentt. Culver stopped at the facility to support the efforts of emergency youth shelters and help create an awareness of their importance to communities statewide.

Central Iowa Water involved in $5 million eastern Iowa project

Newton Independent

Water will begin flowing to a rural communities in eastern Iowa by the end of the year after loans and grants were approved for Newton-based Central Iowa Water Association to construct distribution lines and water towers.

The funding will allow Central Iowa Water to supply water service to residences and businesses that previously had relied on wells for their water needs.

The U.S. Department of Agriculture Rural Development funds — a $2.9 million loan and a grant of $2,050,000 — will help pay for construction of 33 miles of distribution lines and two water towers to provide water to as many as 547 residents and businesses in Buchanan County. The project had earlier received a $900,000 Community Development Block Grant.

Buchanan County is east of Waterloo.

A Cedar Rapids Gazette news story on the project can be read here.

Iowa Telecom eliminates 20 jobs from Minnesota purchase

Newton Independent

Twenty employees of a small Minnesota telephone company acquired by Iowa Telecom early last year were notified on Friday that they no longer have a job.

The employees of Lakedale Telephone Company were told their positions are being eliminated due to overlapping duties and operational efficiences brought about by Iowa Telecom's purchase of the phone company last year.

In February 2008, Iowa Telecom purchased Bishop Communications for $43.9 million. Bishop Communications was a privately held holding company whose operations included the Lakedale Telephone Company, a rural telecommunications provider covering 378 square miles in central Minnesota.

You can read a local report on the job positions being eliminated here and Iowa Telecom's February 2008 press release concerning the purchase of the Minnesota phone company here. 

Iowa Telecom will release its first quarter financial results before the market opens on Thursday. Further information can be found here.

Former car dealer dismisses legal malpractice suit against two Newton lawyers

By PETER HUSSMANN

The former owner of a local car dealership who had filed a legal malpractice lawsuit against two Newton attorneys voluntarily dismissed the claims earlier this month.

Ira Mitchell, the former owner of Ira Mitchell Motors in Newton, filed the action in Jasper County District Court in the fall of 2007 againstNewton attorneys Ken Smith and Steve Holwerda. Both were were working for the law firm Selby, Updegraff and Smith at the time the action arose. In addition, Mitchell brought Maples Chevrolet into the suit on a breach of contract claim.

According to the petition, Mitchell, who was represented in the malpractice suit by Des Moines attorney Alfredo Parrish, entered into an Asset Purchase Agreement in April 2002 with Maples Chevrolet to purchase the Chevrolet, GMC and Cadillac dealership. Maples Chevrolet retained ownership of the real estate. Mitchell entered into a $1.26 million lease purchase agreement with James Maples that required Mitchell to complete the purchase within five years.

At the same time, court records state, Mitchell hired the Selby law firm to provide legal services for his car dealership organization. Holwerda was the attorney in the firm assigned the work. Court records state that Mitchell later learned that Smith was representing Maples and another local car dealership owner, Dean Lauterbach.

In late 2006 and 2007, Lauterbach and Mitchell entered into negotiations that ultimately led to Mitchell's sale of the GMC franchise to Lauterbach for $600,000. Mitchell was represented by Holwerda while Lauterbach was represented by Smith, the suit states.

In the spring of 2007, court records state, Mitchell began exploring the possibility of selling his Chevrolet and Cadillac dealerships. Negotiations again occurred between Mitchell, Lauterbach and Maples, as owner of the property. At the same time, Mitchell also entered into "confidential discussions" with General Motors to obtain a buyer for his Chevrolet and Cadillac franchises.

At this point, Mitchell contends in his suit, "confidences and secrets" were disclosed to Smith who in turn passed that information on to Maples and Lauterbach. Mitchell claims Smith contacted General Motors representatives suggesting legal action might be taken should the automobile company assist Mitchell in the sale of his franchises in an effort to prevent other prospective buyers from having an opportunity to attain the dealership.

In his suit, Mitchell claims Smith's and Holwerda's actions were professionally negligent, a breach of their fiduciary relationship, negligent misrepresentation and constituted fraudulent nondisclosure. Mitchell claimed the actions of the two attorneys were "willful and wanton" and sought punitive damages. He later brought in loss of consortium claims on behalf of his wife and children.

His case against Maples involved a breach of contract after the former car dealer owner obtained a Forcible Entry and Detainer judgment against Mitchell to remove him from the property. Maples also filed a counterclaim against Mitchell saying their agreement to extend the lease purchase deadline past the April 2007 deadline was breached after Mitchell failed to make monthly $13,000 payments. After Mitchell dismissed his suit, Maples filed a motion to dismiss the counterclaim against Mitchell.

Smith and Holwerda vehemently denied Mitchell's allegations and aggressively defended their positions.

Mitchell's decision to dismiss the suit appears to have hinged on a district court judge's ruling in January that ordered Mitchell to disclose confidential attorney-client communications between the former Newton car dealer and his malpractice attorney. During discovery depositions, it was found that Mitchell may have used Parrish in negotiations to dispose of his automotive franchise interests, the basis for the damages he claimed in the suit. On a motion to compel, the judge granted Smith's and Holwerda's effort to pursue that line of inquiry. 

While Parrish was granted discretionary review by the Iowa Supreme Court on the district court's ruling, the suit was voluntarily dismissed before that argument could be made to the court. On April 6, Mitchell filed paperwork with the court dismissing the action with prejudice, meaning it cannot be refiled.

It's never too late to get a good deal on a Hummer

Newton Independent

Here's a new twist on paid obituaries - a relatively recent phenomenon of the newspaper industry as it scratches for cash.

An obituary published in the Arizona Republic on Thursday notes the untimely passing of Chuck Dimmick, a NASCAR racing fan who died suddenly while watching his favorite driver, Jeff Gordon, race in California earlier this month.

Noting the traditional information like next of kin, time of service and memorials, the family (or someone) showed Chuck was a true company guy in his position as director of marketing for the Lund Cadillac Group.

"We are sure he would still want all to know that 0.9% financing is still available on all New 2008 Hummer H2s," the obituary states.

You can read it here.

City tries to tamp out condo fire wall rumors

By PETER HUSSMANN

City officials are trying to extinguish persistent rumors circulating in the community that a recent fire at a southeast Newton three-plex exposed serious building code violations through the release of a report by the local fire marshal concerning his investigation into the cause of the blaze.

On the evening of April 3, Newton firefighters were called to 1419 S. 13th Ave. E. to fight a blaze that broke out in the attic area in one of the three units of the residential rental property. Firefighters were able to keep the blaze from spreading to the adjoining units but they did receive smoke and water damage. Damage to the unit was estimated at the time at $150,000.

Since that time, city council members and local officials have been questioned about whether the structure met building codes. Specifically, residents questioned whether the unit contained a fire wall in the attic area of the structure, a requirement under city building statutes.

On Monday, acting City Administrator Darrin Hamilton provided Newton City Council members with a copy of the fire marshal's report on the blaze to Fire Chief Ed Clements. The memo was provided in response to a letter Newton Mayor Chaz Allen received from local resident Pete Koppin specifically asking whether the structure complied with local building codes.

"After looking at the condo that burned on South 13th Avenue East, I would think that you should (do) a complete exam of the property to find why there are no fire walls between the two units and in the attic to stop the spread of fire across the roof," Koppin wrote to the Newton mayor. "I would hope that when built this property had all of the inspections due at the time and the rental inspections have been made. I would like some response on this as soon as possible in the interest of public safety."

In his report, Newton Fire Marshal Mike Knoll says the unit did contain a firewall and its presence helped stop the blaze from spreading to the adjacent units.

"After careful review of the fire at 1419 S. 13th Ave. E. on April 3, 2009, the fire was held to one unit due to the firewall that was in the attic and the proper construction of these units," Knoll's report states. "The fire wall in the attic was 5/8 inch sheet rock and withstood the intensity of the fire long enough until the fire department was able to gain control of the fire. Naturally, this fire wall was destroyed after being under heavy fire conditions and the fire department putting water on the fire.

"Since it was determined that the fire did start in the attic by both myself, Dave Linkletter from the state fire marshal's office and the insurance investigators and we all agreed that without the fire wall being in the attic and the proper construction of the units, that the entire structure would have been lost from the fire. The fire department received many favorable compliments from both the state fire marshal's investigator and the insurance investigators on the extinguishment of the fire without creating further damage.

"This property and the other properties have had all rental inspections completed since (their) construction with the last one being completed in May of 2008. No violations were found and the units passed inspection."

Operational assessment at Skiff under way; ad hoc committee finishes work

Newton Independent

An operational assessment of Skiff Medical Center began earlier this week to help the hospital to refocus on its mission, vision and values, according to a story in today's employee newsletter.

B.E. Smith and Associates of Lenexa, Kan., met with hospital managers on Tuesday to discuss the process involved in the weeks-long assessment. Smith was selected from four firms vying for the assignment following a consultant's recommendation to conduct such an assessment to enhance the hospital's performance. Four top administrators have resigned in recent months.

According to the report in the hospital news letter, the assessment will focus on three areas: the hospital's financial condition, how it manages its labor resources and an assessment of the hospital's organizational structure and design to ensure the hospital management structure is appropriate for its mission, size and role in the community.

The Skiff Medical Center Board of Trustees authorized the expenditure of up to $70,000 on the operational assessment study. B.E. Smith representatives will provide the board with its findings upon completion.

The employee letter news story can be read here.  The newsletter also carries a story about the ad hoc committee's third and final meeting, the development of which was another of the recommendations enacted by Skiff following the consultant's review of the hospital's internal operations.

Petitions circulating locally to get county recorder to resist same-sex marriage ruling

By PETER HUSSMANN

Petitions are circulating in Newton and are planned to be presented to Jasper County Recorder Nancy Parrott on Monday asking that she refuse to issue marriage licenses to same sex couples.

The move is part of a statewide push to get county recorders to resist issuing marriage licenses to same-sex couples after the Iowa Supreme Court cleared the way after ruling earlier this month that state law on the matter is unconstitutional.

State. Sen. Merlin Bartz, R-Grafton, is leading the petition, with the assistance of the Iowa Family Policy Center. Bartz has posted a petition and action steps to take to encourage county recorders to resist the court's ruling beginning Monday "and every day after until such conflict between the Supreme Court's opinion and the law is addressed by a vote of the people of Iowa." His Web site can viewed here.

County recorders have been told by the Iowa Attorney General's office that they do not have latitude on whether or not to issue marriage licenses to same-sex applicants. In a directive issued through the Iowa Department of Public Health, recorders in Iowa were told "they do not have the discretion or power to ignore the Iowa Supreme Court ruling." Failure to comply could lead a recorder to be removed from office.

On Wednesday, in a story in the Quad Cities Times, Bartz called the attorney general's directive a "veiled threat" and questioned why the agency is targeting action in this case when it has taken a more relaxed attitude toward the enforcement of other state laws, like immigration issues, smoke-free workplaces and "other kinds of statutes that may be broken across the state."

The news story goes on to state that former state Rep. Ed Fallon has filed a complaint against Bartz and his efforts to get county recorders to ignore the law with the Senate Ethics Committee.

Jasper County Recorder Parrott was out of the office today.

'Unleash a new clean energy economy'

Newton Independent

Several people have commented to me - and to those at many other sites - about the irony of the President's trip to Newton to tout efforts needed to be undertaken to help ween the country from its reliance on foreign oil. How much, they ask, was the president's energy consumption in traveling to Newton on Earth Day to tour a wind structural tower facility and lay out his plans for a "new era of energy exploration in America" to "unleash a new clean energy economy?"

Well, there's this from CBS.

Mayor Allen raises funds for Maytag Bowl project

Newton Independent

Newton Mayor Chaz Allen was featured in a WHO TV-13 piece on Tuesday evening concerning his efforts to raise money on behalf of local group's plan to renovate the Maytag Park Bowl area.

Allen delivered pizzas for Domino's Pizza, replete with corporate uniform, in return for the a share of the proceeds and all the tips he could secure. The money was earmarked for the Restore the Pride group and its efforts to raise $2.5 million to renovate the Maytag Bowl.

You can watch the video here.