Newton Independent

Skiff board to again meet privately on operational assessment

By PETER HUSSMANN

The Skiff Medical Center Board of Trustees will again meet behind closed doors to discuss the findings of the recently completed operational assessment.

The board has scheduled a 3 p.m. meeting today to discuss the report.

Last week, the board deferred action on the adoption of an operational budget for the next fiscal year - which begins Wednesday - in order to continue to study the suggestions made in the report by consulting firm B.E. Smith.

At the meeting, the board was presented two budget scenarios, one including the consultant's recommendations and one without. Though limited in detail, the two scenarios projected vastly different financial outcomes (net financial losses of $3.6 million under current operations versus a $742,000 loss with the consultant's recommendations in effect) for the city-owned hospital through the end of the next fiscal year.

The operational assessment was undertaken upon the advice of a Des Moines consultant who gave a scathing review of the hospital's operations after a cursory look following the resignation of Skiff's former administrator. Since that time the hospital's chief financial officer and human resources director have also resigned - and are suing a local doctor for defamation over their resignations - and the chief medical officer has left to take other employment.

Two former Skiff executives sue Newton doctor over their resignations

By PETER HUSSMANN

Two former Skiff Medical Center executives have filed a lawsuit against a local doctor claiming he engaged in a smear campaign to get the women fired from their positions at the city-owned hospital.

Cheryl Ritter, the former vice president and chief financial officer at Skiff, and Gena Garber, the former director of human resources at the hospital, filed suit last week against Dr. Gary Richardson alleging he "engaged in an effort to harm the professional reputations" of both women.

"Richardson's objective was the termination of Cheryl Ritter's and Gena Garber's employment with Skiff," the lawsuit alleges.

The suit, filed last Thursday on behalf of the women by Des Moines lawyer Joseph Cacciatore, claims Dr. Richardson's "malicious acts and statements ... created an environment where it became impossible for (Ritter and Garber) to effectively perform their respective duties at Skiff, causing their resignations in March of 2009."

In making the claim of Dr. Richardson's malicious activity, the suit notes a February 2009 letter to the editor in The Newton Daily News where Dr. Richardson states "(T)he two executives - the chief financial officer and the human resources director - have taken over the culture of Skiff. You ask nearly any physician or employee, these two are responsible for the declining employee morale, bloated management staff, constant conflicts with physicians, and poor financial performance of the hospital. Many physicians and employees have called for the dismissal of these two former Maytag managers, without satisfaction."

The suit goes on to note a comment attributed to Dr. Richardson in the Newton Independent where he allegedly says "(T)he problems can all be traced back to the CFO and HR director. Until this is recognized and dealt with Skiff will not be able to move forward and succeed."

The two former Skiff executives also claim Dr. Richardson "falsely and unfairly criticized the performance" of Ritter and Garber "and/or called for the termination of their employment with the hospital" at Skiff executive committee meetings and in private and public meetings of Skiff employees and members of the general public.

"Richardson's statements as described above where libelous per se because such statements falsely attacked Cheryl Ritter's and Gena Garber's competence and skill in the occupations in which each of them earned their living," the lawsuit states in claiming damages for defamation and interference with their contractual relationship with Skiff. "Richardson's statements... also falsely attacked the integrity and moral character of Cheryl Ritter and Gena Garber."

The suit seeks compensatory and punitive damages for the two women's loss of earnings, expenses in seeking other employment, mental anguish, emotional distress and damage to their reputations.

"Richardson's wrongful conduct was willful and wanton and done with malice or in reckless disregard of the rights of Cheryl Ritter and Gena Garber," the lawsuit alleges.

The two women are seeking a jury trial. Dr. Richardson has yet to file an answer to the petition.

Foreman's funeral set for Friday

Newton Independent

Funeral services for long-time Newton City Councilman Ron Foreman will be held at 11 a.m. Friday, July 3, at First United Methodist Church, 210 N. 2nd Ave. E.

Visitation with the family will be from 5 to 8 p.m. Thursday, July 2, at Wallace Family Funeral Home, 1115 E. 19th St. N.

The full obituary may be read here.

AT fundraiser weekend

Newton Independent

This looks like fun.

Dunn named regional ISU Extension education director

Newton Independent

Brian Dunn has been named the regional Iowa State University Extension Education Director for a four-county area that includes Jasper County, news reports indicate.

Dunn, currently the Extension education director in Mahaska County, will oversee the Jasper, Poweshiek, Marion and Mahaska County areas.

The Extension Service is restructuring its Extension Service county office system into a 20 region system.

Alan Keninger, the current Jasper County Extension education director, will leave his current position Aug. 31, he previously told the Newton Independent.

You can read the Ottumwa Courier's article on the transition here.

More cuts planned for Iowa court sytem

Newton Independent

The state court system announced this afternoon that it plans to leave open 50 vacant court staff positions and well as laying off another 15 people, including 13 court reporters, in a second round of budget cuts.

"We must operate within the limits of our appropriate from the legislature," said Chief Justice Marsha Ternus of the Iowa Supreme Court. "As stewards of public funds, the Supreme Court is resolved to do everything in its power to reduce our operating expenses. However, as the leaders of the Iowa's justice system we are deeply concerned about the impact of continuing cuts will have on our ability to deliver quality court services to the public. Because of the effects of the nation's economic downturn, people need court services now more than ever."

You can read the release here.

IPP: Utilities spinning consumer cost of climate bill

Newton Indpendent

The Iowa Policy Project is weighing in today on the climate bill saying utility companies are using scare tactics by telling consumers the measure would cause significant increases in their energy bills.

The House of Representatives is expected to take up the legislation aimed at reducing greenhouse gas emissions on Friday.

You can read the Iowa Policy Project's analysis - that says costs to consumers would be significantly lower than what utility representatives are telling customers - here.

Will franchise fees be coming to a city near you?

By PETER HUSSMANN

It will be interesting to see how cities across Iowa use the gift Gov. Chet Culver plopped in their laps at the end of the legislative session.

A new state law allows cities to collect a franchise fee of up to 5 percent on electric and natural gas utility services.

While utility customers may not like it, especially due to the recent rate hikes Alliant and Black Hills utility users have seen on their electric and natural gas bills, the law could provide cities with a new revenue stream that does not involve property taxes.

Newton City Administrator Tom Wardlow said city officials have not even had discussions about discussing it.

"More analysis of the new law is needed and we have not had a chance yet to do so," he said.

One such analysis would be how implementing a franchise fee would impact a city's local option sales tax collections. Under the law, cities are not allowed to collect the one-cent local option sales taxes on natural gas and electric services if a franchise fee is in place.The City of Newton collected more than $1 million in local option sales taxes last year.

Prior to the governor's's action, cities were allowed to collect franchise fees but only up to the amount it cost to regulate the utility. The City of Des Moines faces the possibility of returning millions to local residents after a court ruling found the city was collecting fees in excess of the cost of regulation. The new law eliminates that provision.

Before implementing a franchise fee, cities will be required to prepare a "revenue purpose statement" that specifies how the fees will be used. The legislation spells out that the money can be used for a variety of purposes, including property tax relief, public safety, economic development, facility and infrastructure repair and even for such things as energy conservation measures for low-income home owners, property tax abatements and building permit fee abatements.

More funding released for dislocated Maytag workers

Newton Independent

Sen. Charles Grassley, R-Iowa, announced in a release on Wednesday that more federal money will be flowing from Washington, D.C., to continue to assist displaced Maytag workers.

Grassley said the U.S. Department of Labor has released $254,945 through the National Emergency Grant program to assist former Maytag workers obtain training.

"This assistance will continue to help provide training and new skills to the workers at Maytag and Whirlpool so they can get back on their feet and compete for new jobs in the future," Grassley said.

The money released Wednesday is part of a larger supplemental National Emergency Grant of $680,802 approved in May 2007, one year after Whirlpool announced it planned to close Maytag's flagship production plant and corporate headquarters in Newton.

Reporter's Notebook: City elections coming fast

By PETER HUSSMANN

While many in Newton may only be looking ahead to plans for the Fourth of July weekend, rest assured there are many others in the community looking ahead to this fall and the coming city elections. They should prove interesting.

Three council members and the mayor are up for re-election this November, assuming they all seek another term. Mayor Chaz Allen, along with second ward council member Mike Hansen, fourth ward councilman Steve Mullan and relatively recently appointed at-large member Dennis Julius will all face the voters in the fall.

Though candidates for the council can't even turn in their nomination petitions until Aug. 24 - and have as late as Sept. 17 to declare their intention to seek office - now is the time that various interest groups begin lining up prospective challengers to incumbents and the incumbents begin laying the base for their re-election bids.

An even more interesting city election coming up this fall involves two open seats on the hospital board. Long-time board member Gary Kahn and one-term member John Lee both face re-election, again assuming the two seek another term.

To say that things have been interesting as of late over at Skiff - where they enter the new fiscal year without a budget in place - is an understatement. I suspect voters will have many choices in this election.

Even though we have yet to hit the dog days of summer, this fall's city elections are coming faster than you think.

Iowa Telecom announces third Twin Cities-area acquisition

Newton Independent

Iowa Telecom continues its acquisition spree with the announcement late this afternoon that it plans to pay $1.1 million for a telecommunications firm near the Twin Cities.

The Newton, Iowa-based telecommunications firm announced late today that it plans to acquire WH Comm, a small local telecommunications carrier in the western suburbs of Minneapolis/St. Paul. This marks the third such acquisition of carriers in the Twin Cities area.

You can read a release on the planned acquisition here. The purchase is subject to regulatory approval. 

Skiff Medical Center puts off action on budget

By PETER HUSSMANN

The Skiff Medical Center Board of Trustees today put off a decision on enacting on operating budget for the next fiscal year that potentially included recommendations from its recently completed operational assessment saying more time was needed to study both the budget and the findings of assessment study.

Agenda items pertaining to adopting a new budget for the coming fiscal year, which begins next week, and the city-owned hospital's three-year capital project plan were tabled until next month's board meeting, according to John Easley, the hospital's spokesperson.

Easley said both items were tabled to allow the board more time to study the consultant's recommendations on the hospital's operation and due to the fact the hospital has many new, interim people involved in the budgeting process.

"It's difficult to put together a planning document when you haven't made decisions in regard to the recommendations of the consultants," Easley said. "The board felt the extra time will allow them to do it right, to do it accurate."

Budget documents included in the board packet for discussion today laid out revenue and expenditure plans and outcomes for the coming fiscal year that included and excluded the consultant's recommendations. The proposals had markedly different financial outcomes for the hospital. (The Newton Independent reported that story yesterday.)

Skiff trustees met just last week with representatives of B.E. Smith on its study of the hospital's operations. Easley said the board plans another closed-door meeting on the recommendations on Tuesday, June 30.

The trustees will also take up the hospital's $2.6 million capital plan for the coming fiscal year when it meets in July. The board, however, did approve a change in policy in administratively allowed expenditures. All capital purchases of $5,000 or more, regardless of inclusion within an adopted capital program budget, will now require trustee approval. The previous limit for capital program budgeted expenditures was $15,000.

Sioux City moves to ban indoor furniture outside

Newton Independent

And you thought the Newton City Council had some funny debates.

Over in Sioux City, the city council recently passed first reading of an ordinance that would ban indoor furniture from being used outside. In other words, no more couches on the front porch.

Details of what specific items would be deemed "indoor" versus "outdoor" were not included in this Sioux City Journal piece, but the move has the support of landlords and neighborhood association leaders. The council was split. 

Jasper County jobless rate jumps

By PETER HUSSMANN

Jasper County's jobless rate jumped to 7.4 percent in May, up from the 7 percent rate recorded in April but below the rates recorded in the first three months of the year.

Iowa Workforce Development released the unemployment information at the county level today. Last week the state department announced that statewide unemployment had jumped to 5.8 percent in May, up from 5.1 percent the month earlier. Last month's statewide unemployment rate was the highest recorded in 22 years.

State officials said the May increase was due to a surge in new labor force entrants and a drop in employment numbers, especially in the goods-producing sectors.

Jasper County's unemployment rate is higher than most surrounding counties. A map showing statewide county-by-county May unemployment rates can be viewed here.

Skiff board to consider budget proposal that includes operational assessment recommendations

By PETER HUSSMANN

Skiff Medical Center Board of Trustees will consider approving an operating budget for the next fiscal year that implements the recommendations of the recently completed operational assessment when it meets in regular session at 9:30 a.m. Tuesday.

Board members have been presented two operating budget proposals for the new fiscal year which begins July 1, one based on the unknown recommendations of consultant B.E. Smith and one based on current operations at Skiff.

Trustees met in a closed-door meeting last Tuesday afternoon to hear the findings of Smith's assessment of operations at Skiff. The board agreed to pay up to $70,000 to conduct the assessment "to review recent events that have weakened (the) hospital's mission and performance" at the recommendation of a previous consultant who earlier this year offered a scathing public review of his findings during a quick look into the internal operations of the city-owned hospital.

The operational assessment was to 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, according to information provided by hospital officials.

The two one-page draft budget proposals included in packet information provided to trustees in advance of Tuesday's public meeting offer no details on the operational assessment recommendations. However, the two drafts detail markedly different financial results from operations depending upon which is approved. (The Newton Independent was required to pay $11 to receive the meeting packet.)

The 2009-10 budget draft prepared based on current operations at Skiff shows net operating revenue for the year of just under $38 million with total expenses just topping $42 million. Including budgeted non-operating revenue of $415,000 and the net loss for the hospital would be more than $3.6 million at the end of the next fiscal year under this budget scenario.

Preparing a proposed budget with the consultants' recommendations shows dramatically different results. Net operating revenue would increase to $39.2 million with total operating expenses falling to just over $40 million. Again using the $415,000 in budgeted non-operating revenue and the net loss at the end of the next fiscal year falls to $742,256.

Year-to-date revenues over expenses from operations currently stands in a $2.3 million hole with only June results yet to report. Last year through May, operating losses at Skiff stood just over $1 million.

Skiff trustees are reportedly scheduled to meet again behind closed doors on the results of the operational assessment on June 30.

There were no minutes included in the board packet for Tuesday's meeting concerning last week's closed door session with the consulting firm that indicated why the public was excluded from the meeting. Minutes from the next day's trustee finance committee meeting were included in the packet where it shows the committee did discuss the two budget scenarios.

State law allows government bodies to hold closed sessions but "only by affirmative public vote of either two-thirds of the members of the body or all of the members present at the meeting. The vote of each member on the question of holding the closed session and the reason for holding the closed session by reference to a specific exemption under (Chapter 21.5 of the Iowa Code) shall be announced publicly at the open session and entered in the minutes. A governmental body shall not discuss any business during a closed session which does not directly relate to the specific reason announced as justification for the closed session."

Jasper County tax sale nets $552,000

By PETER HUSSMANN

Investors paid approximately $552,000 in outstanding taxes on 426 parcels throughout Jasper County in the recently completed annual tax sale, statistics released Friday by the Jasper County Treasurer's Office indicate.

County Treasurer Doug Bishop and his staff conducted the sale on Monday, June 15 where the unpaid taxes on all but 48 of the available parcels were purchased. As of June 1, when the annual delinquent tax list is printed, there were 581 delinquent parcels in the county with approximately $714,000 in taxes owed. The June 1 parcel figure represented a 4 percent increase over last year's rates.

County tax sales are held on the third Monday in June each year in counties across Iowa. The sales enable counties to collect unpaid taxes by investors willing to put up the cash in return for a solid rate of return, 2 percent per month or 24 percent a year. The money collected at the tax sale is subsequently distributed to the taxing jurisdictions in which the parcels sit - local school districts, cities and the county.

The parcels that went unsold had outstanding taxes totaling $5,069. Of that total, 18 parcels of real estate with $1,019 in unpaid taxes went unsold.

The majority of the unsold properties in the county were mobile homes. Thirty mobile homes with a total of $4,050 in delinquent taxes remained unsold at the end of the tax sale. Mobile homes account for 81 percent of the uncollected delinquent taxes in Jasper County for the 2009 tax sale year.

The Iowa State Association of County Treasurers attempted to put some teeth into mobile home property tax collections during the last legislative session by advocating a change in state law that would allow treasurers to put a stop on vehicle registration renewals for those with outstanding mobile home taxes. The association argued that those with outstanding court fines are currently blocked from re-registering motor vehicles until those payments are made. Legislation introduced by Rep. Paul Bell, D-Newton, went nowhere during the session.

Statewide, the amount of uncollected taxes on mobile homes is approximately $4 million.

The unsold parcels will be available at the adjourned tax sale which is set for July.

Looks like Iowa Speedway to get more IRL races

Newton Independent

Looks like the Iowa Speedway is going to host more Indy Racing League races in the coming years as reports of a contract extension appear near. Here's a report just forthcoming from Pressdog about an interview with Jerry Jauron and Stan Clement of the Iowa Speedway. You can read it here.

Wardlow resumes administrator post

Newton Independent

Newton City Attorney Darrin Hamilton relinquished his acting city administrator hat at the end of the business day on Friday with City Administrator Tom Wardlow resuming his duties today.

Hamilton has been acting in the capacity of city administrator for the past 14 weeks while Wardlow has been on extended medical leave.

For his efforts, Hamilton received an additional $100 per calendar day.

Dr. Martin ordered to pay a portion of his legal defense

By PETER HUSSMANN

Taxpayers will not pay the full cost of Dr. Angel Martin's defense on federal criminal charges of health care fraud after a federal magistrate ruled Thursday that the Newton doctor must pay for at least a portion of the cost of his federal public defender.

Magistrate Judge Ross A. Walters entered an order noting that while Dr. Martin "is eligible for appointed counsel," he must make monthly payments toward his criminal defense until a maximum of $9,600 is reached.

"The Court has determined defendant has established he is eligible for appointed counsel but that he should make periodic payments to partially defray the cost of his defense," the judge wrote. "Commencing on July 1, 2009, and on the first day of each month thereafter, defendant shall pay $1,200 to the Clerk of Court until the total amount of $9,600 is paid. Defendant shall advise the Court of any change in his financial status.

Dr. Martin was indicted by a federal grand jury in Des Moines on 31 counts of health care fraud for allegedly overcharging healthcare program administrators Medicare, Medicaid, Blue Cross and Blue Shield of Iowa and Principal Financial. He was originally scheduled to go on trial later this month following his April indictment, but the jury trial has now been pushed back to Sept. 28.

BBC-TV looking for role model Iowa family

Newton Independent

BBC television is looking for a traditional, conservative Iowa family to provide some structure for two British teenagers as part of a series it produces on parenting.

In an announcement released by the Iowa Film Office, the BBC said it is looking for an Iowa family that believes in "instilling good old-fashioned values, discipline and boundaries."

"We are looking for a traditional, conservative Iowa family (with children aged 14-16) who are proud of their strong parenting and family values and who would be willing to accommodate two British teenagers for one week in July 2009 and instill in them the values and morality they demand of their own children," twentytwenty.tv representative David Cheesman states. "The British teens will be expected to attend school, church, complete homework and help with household chores; they will not be guests in the house but new members of the family."

Producers of the show invite interested Iowa families to provide a brief description of themselves by e-mailing a note to davidcheesman@twentytwenty.tv