Newton Independent

Counties blast DHS chief's erroneous comments

Newton Independent

The Iowa State Association of Counties issued a blistering press release following erroneous comments attributed to Department of Human Services Director Charles Krogmeier in Friday's edition of the Des Moines Register.

Krogmeier was commenting on the state of the mental health delivery system throughout the state and was quoted as saying it might be time to "get rid of county mental health systems and instead have one statewide system."

In the same article, the DHS director noted that Iowa was the only state in the country with a mix of county and state control of mental health systems. In fact, ISAC noted in its release, counties administer mental health services in 22 states representing 70 percent of the population of the United States.

The release indicates the DHS over the past 10 years "has shown little interest in working with the counties to implement the changes needed."

You can read the release here.

Newton's request for I-JOBS funding to rectify sewage backups denied

By PETER HUSSMANN

The City of Newton's application for a $1.8 million grant to fix sewage backup problems in the western portion of the city through funding from the competitive portion of the state's I-JOBS program was denied last week by the committee charged with reviewing the funding requests.

On Wednesday, the review committee of the I-JOBS board of directors recommended that 57 projects in 42 cities and 32 Iowa counties be approved by the full board when it meets in Waterloo today.

The I-JOBS initiative calls for the investment of a total of $830 million over a two-year period to improve Iowa's infrastructure. A portion of the total, $165 million, was earmarked to the Local Infrastructure Program. Of that, $118.5 million was made available on a competitive basis. The state received 136 applications totaling more than $333 million in requests before the Aug. 3 deadline.

In submitting the funding request for the Newton Sewer Backup Relief project, Bob Main, acting as interim public works director at the time, noted the problems residential property owners are having with sewer backups during periods of heavy rain.

"The trunk sewers serving the western portion of the city are significantly undersized," Main wrote in the application. "As a result, sewer overloading and backups occur during peak rain events. These have resulted in frequent basement flooding for residents in certain low-lying areas."

In outlining the scope of the project, the city proposed installing a parallel trunk sewer along most of the trunk sewer route, with a total length of approximately 7,000 feet. Main noted that most of the sewer length is in undeveloped areas but in developed areas the plan called for the replacement of the trunk sewer or the installation of a pump station to be used during peak flows to push water downstream to the parallel trunk sewer.

In touting the economic impacts of the proposed project, Main noted the significant hardships caused to residents impacted by the frequent sewage backups.

"The residents in the impacted areas have experienced frequent flooding of their basements with raw sewage during periods of heavy rainfall," he noted. "As a result, these homeowners have experienced extreme difficulties selling their homes. In addition, the residents are unable to leave their homes unattended during periods of wet weather due to the fear of possible flooding."

Main indicated the total project cost would be $3.6 million. In the application, Main noted that should the grant be received, the city would apply for a loan from the State Revolving Fund to finance the additional costs and adjust sewer rates to provide for the loan repayment.

Newton scored 69 points on its application, well below the threshold of the projects being recommended for approval. The review committee voted to defer 36 projects that could become eligible for funding if additional money is made available. The remaining 43 projects, including Newton's, were rejected.

You can read the complete list of projects submitted and the recommendations from the review committee here and Newton's application for the funding here.

It's Your Money

Newton Independent

The City of Newton expended more than $950,000 in July, including a payment of nearly $400,000 to Manatt's for work on the East Eighth Street North relocation. Following is a sampling of the payments made by vendor, city department and purpose:

Acme Materials Co. - Golf - sand - $632.22
Adjutant General of Iowa - Police - tactical training - $220
Brown's Shoe Fit Company - Parks - clothing allowance - $139.95
Carl's Mowing - Police - mowing - $165
Central Iowa Regional Transportation - Public Works - assessment - $2,080
Ed Clements - Fire - license - $40
Dodd's Trash Hauling & Recycling - Public Works/Golf - trash and recycling - $41,337.92
Forbes Office Solution - All Departments - supplies - $2,195.25
Fox Engineering - Landfill - service/leachate - $8,500
IMWCA - All Departments - workers comp/workers comp insurance - $78,211.68
Interstate Insurance Services - Tort Liability Insurance - airport liability renewal - $13,171
Iowa Communities Assurance Pool - Tort/Landfill/Golf - insurance package renewal - $165,679.89
Iowa League of Cities - Executive/Administration/Legal - meeting/membership dues - $4,136
Iowa Telecom - All Departments - telephone service - $3,883.79
Iowa Workforce Development - Library/Golf - unemployment - $1,028.11
Jasper County Sheriff - Public Works - service - $60.80
Machin LC - Water Pollution Control - sewer repair - $8,09.36
Manatt's - Maytag Plant 2 TIFF/Landfill - Payment 4 E. 8th St. N./backfill - $399,858.71
Marsden Building Maintenance - City Center - supplies - $2,091.64
Metro Waste Authority - Landfill - quarterly fee - $7,770.84
Newton Pizza Ranch - Parks - resale - $705.37
Skiff Medical Center - Fire - expenses - $300
Water Department - All Departments - water - $8,162.02
Total - $950,441.94

Today is the 40th anniversary of plane crash that claimed boxing champion Marciano

Newton Independent

Today marks the 40th anniversary of Rocky Marciano in a plane crash near the Newton airport.

Marciano was flying from Chicago, after having had dinner at the home of Andy Granatelli of STP fame, headed toward Des Moines where he was to speak at a party for a friend. He was hoping to fly back to Florida to spend the day with his wife on his 46th birthday.

The evening grew drizzly and misty. The pilot, Glen Belz, who had limited air time, radioed the Newton airport around 9 p.m. and said he would be landing. He gave no indication of trouble with the plane.

Coming in too low, the plane struck a tree at the Henry Eilander farm approximately 1.5 miles from the Newton airport. The wings and motor were ripped from the plane as it skipped across the ground coming to rest in a creek bed.

Marciano, Belz and traveling companion Frank Ferrel were all killed. The crash was ultimately ruled pilot error.

Marciano is the only undefeated heavyweight champion in history, compiling a 49-0 record with 43 knockouts.

Ten years ago, on the 30th anniversary of his death, the City of Newton proclaimed Rocky Marciano Day. A display in Marciano's honor used to be displayed at the International Wrestling Institute in Museum, including a statue created by local artist Nick Klepinger.

Marciano's hometown newspaper in Brockton, Mass., remembers the champion in a story today.

Suspect, victim identified in fatal Baxter crash

Newton Independent

News reports are identifying the victim and individual charged in connection with a fatal accident near Baxter Saturday night.

Barbara Purtilo, 62, of Newton was killed in the accident. Charges are pending against Roger Hofer, 39, of Cambridge. More can be read here.

Reporter's Notebook: It would have been a classic

By PETER HUSSMANN

I can only imagine the sinking feeling City Administrator Tom Wardlow must have had in his gut. Scenarios of citizen outrage must have raced through his head.

On Thursday, the police-chief-turned-city-administrator learned that the DOT was announcing that it let the "East 31st Street North and North 19th Avenue East" road project that is to be paid for through the federal stimulus funds allocated to Newton. The local newspaper announced it, too.

One problem. That's not the road project the Newton City Council had identified for use of the stimulus funds.

It once was but council members shot down staff recommendations to use the $647,000 in federal money on a section of roadway that did not need upgrades as dearly as many other areas in the community. The council identified seven other roadway sections for use of the stimulus funds.

Again, I can only imagine Mr. Wardlow's angst upon hearing the DOT's announcement.

"What if they really did let the wrong project?" he must have thought. "How the hell am I going to explain that to the council? Chaz couldn't even spin this."

Using the detective skills honed over his long police career, Wardlow was quick to investigate. He made his findings known to council members on Thursday.

"In checking with staff today, I discovered that for some reason the DOT kept the title of the original project but did have our actual overlay project in the document," he said. "So, just to clarify, the project that was let is the street overlay project that the council decided upon and we are not doing a project on North 19th Avenue East."

Whew.

It would have been a classic, though.

Hansen, Mullan file for re-election

By PETER HUSSMANN

Newton City Council incumbents Mike Hansen and Steve Mullan have filed nomination papers to seek re-election to their second and fourth ward council seats, respectively.

The pair join Newton Mayor Chaz Allen and at-large councilman Dennis Julius in filing for re-election bids. The councilman serve four year terms while the mayor is elected every two years.

Harold Martin, who was unsuccessful in his bid to seek appointment to the at-large seat previously held by Ron Foreman, has also filed nomination papers. Jeremy Heaberlin, who appointed to fill the seat until the November election, has yet to file. Whoever wins that council position will be seated immediately and serve the remaining two years on Foreman's term.

Newton city officials said today that no one has filed to seek the two open seats on the Skiff Medical Center Board of Trustees. Sitting board members Gary Kahn and John Lee have told the Newton Independent they will not seek re-election this fall.

City candidates have until Sept. 17 to file nomination petitions with the city clerk.

Whirlpool announces closure of Evansville, Ind. refrigerator plant

By PETER HUSSMANN

Whirlpool announced today that it will close its Evansville, Ind., refrigeration manufacturing facility next summer. The closure will eliminate 1,100 full-time positions in mid-2010.

"This was a difficult but necessary decision," said Al Holaday, vice president of Whirlpool's North American manufacturing operations. "To reduce excess capacity and improve costs the decision was made to consolidate production within our existing North American manufacturing facilities. This will allow us to streamline our operations, improve our capacity utilization, reduce product overlap between plants and meet future production requirements."

The decision followed a review of alternatives for product consolidation within Whirlpool's refrigeration product category.

Production of top freezer refrigerators made at Evansville will be transferred to one of the company's existing manufacturing facilities in Mexico. Production of icemakers produced at the Evansville plant will be relocated to an as yet undetermined company-owned site.

Whirlpool also said it is evaluating options for the best location for the Refrigeration Product Development Center, which is co-located with the Evansville manufacturing facility and has approximately 300 employees. A decision will come at a later date.

Whirlpool said it will work with employees affected by the plant's closure.

"We are announcing this decision nearly one year in advance as part of our commitment to make the transition as smooth as possible," Holaday said.

Whirlpool, which is the world's largest home appliance manufacturer, said it will begin conversations immediately with employees regarding transition assistance. The company said it would also work with Indiana state and local officials to ensure that all available training resources are made available to affected employees.

Whirlpool produces refrigerators at a plant in Amana, Iowa.

Jahn gives update to Skiff employees

Newton Independent

Skiff Medical Center's Interim CEO, Francie Jahn, gave an update to employees on Wednesday's board meeting through an article in the hospital's newsletter released on Thursday.

Jahn talks of the Medicare funding streams the hospital is hoping to tap to increase revenues and gives a little more detail on the meeting between herself and board chair Gary Kahn with area mayors. She also talks of the hospital's collaboration with the Newton Clinic on a physician recruiting effort.

You can read the newsletter here.

Maytag's Tennessee dishwasher plant to close today

Newton Independent

The Jackson, Tenn., plant Maytag built back in the early 1990s especially for the production of dishwashers - and to move that production out of facilities in Newton - is closing today.

Whirlpool, which took over the plant after acquiring Maytag, is moving the dishwasher production to its Findlay, Ohio operation. The Tennessee plant's closure will mean the loss of 500 production jobs for the community.

The good news for Jackson, however, is that a tire production company is in the process of leasing the plant, though production at the facility will not begin in earnest until sometime next year.

You can read the story here.

Since I posted this story this morning, a little bit more information has come to light. It appears the State of Ohio earlier this week approved a $250,000 Rapid Outreach Grant to Whirlpool for costs associated with the acquisition of machinery and equipment in support of the company's $10 million expansion of its Findlay dishwasher operation. The project is expected to create 263 jobs and retain 1,700 at the plant, which is Whirlpool's prime source for dishwasher production. Local incentives are not noted.

Owner of Newton, Monroe banks told to sell or close

Newton Independent

Sioux City-based Vantus Bank, with branches in Newton, Monroe and Grinnell, has been told by federal regulators to either merge with another banking firm or close its doors.

The bank has until Sept. 30 to either be sold or liquidated.

The story can be read here.

Lake Mills hit by layoffs, looks for help from Newton

Newton Independent

Officials in the small north-central Iowa town of Lake Mills are hoping to learn from Newton on how to rebound after being hit by major industrial job losses.

Earlier this week, officials with Cummins Filtration announced that 400 positions at its plant would be eliminated with the work going to a facility it owns in Mexico. The move was made, company officials said, because the recession has resulted in sales dropping 30 percent since November 2008 with no return expected until 2011.

In a news report, Marilyn Hoffman, executive director of the Lake Mills Chamber Development Corporation, said she hoped to reach out to Newton officials to learn how it succeeded in bringing both TPI and Trinity Towers to Newton after the closure of Maytag.

You can read the story here.

Wesley to compete with Skiff for home health care services

By PETER HUSSMANN

The home health care industry in Newton and Jasper County is going to get a little more crowded with the Wesley Services announcement that it soon plans to open a new operation out of its Park Centre facility.

Skiff Medical Center board chair Gary Kahn told members Wednesday that he had met with Wesley officials who informed him of the company's intention to begin offering a full slate of home care services in the near future. He said Wesley facilities in other communities are now offering home health care services, as well as in some instances hospice care, something the Wesley officials said they will not be doing in Newton at this time.

While Kahn was appreciative of Wesley Services being "upfront" about its decision, the question then moved to how such additional service options might impact Skiff's home health care operations.

"The question is whether there is a need for two home health care" operations in the community, Kahn said.

Kahn said Wesley is currently conducting a demographic study on the need for the services and will share that information with Skiff when complete. He also noted that Skiff is internally studying its home health care operation. He said the board will need to study the demographic assessment before deciding on any future course of action.

"It may be that there is a big need for two home health care programs," he said.

In her report to the board, Skiff Home Care Director Jennifer Jordan also noted Wesley's pending entry into the market.

"Wesley homes in Newton is opening a home care agency, as well as providing the only skilled level of care for joint replacement patients," she wrote in her report. "This is a threat to our patient population for home care (including therapy services)."

The home care director also noted that another firm is planning to soon begin health care services in the county. She said Amedysis, a national home health care firm with offices currently in Des Moines and Davenport, "is also opening a home care agency to provide services in Jasper County."

Home health care provides a variety of services including registered nursing services, home health care aides, speech and physical therapy and medical social work. It also provides infusion therapy, well-child clinics, visits to new mothers and babies, blood pressure screenings and health education.

Skiff board hopes to begin CEO interviews in November

By PETER HUSSMANN

Skiff Medical Center board members hope to start interviewing candidates for the CEO position in early November, board chair Gary Kahn said in updating the CEO search activity.

The city-owned hospital is conducting a national search for a new chief executive officer with the assistance of Slaven Management Consultants. Former Newton City Administrator Paul Wenbert is heading up the search as the western regional manager of the executive search firm.

Kahn said Wenbert was in Newton recently to interview board members and selected hospital personnel to put together a profile of the desired qualifications and attributes of the potential candidates. It can be read on the hospital's Web site by linking here.

The Skiff board chair said Wenbert has been "enthusiastic" on the response he has received from potential candidates. He noted that the hospital has a number of positive attributes appealing to potential candidates, including its personnel, culture and the fact the hospital has no debt.

However, Kahn noted, "we have got to get our finances in line."

The board's CEO search committee will meet on Oct. 12 to review the resumes and narrow the pool of potential candidates to four or five individuals, Kahn said. After that, arrangements will be made for on-site interviews with the candidates to begin sometime in "early November." 

Mayors urge better communication from Skiff

By PETER HUSSMANN

Skiff Medical Center Board of Trustees Chairman Gary Kahn briefly updated board members on his meeting with area mayors prior to Wednesday's board meeting indicating that better communications was the gist of the gathering.

Kahn said he and Interim CEO Francie Jahn met with the mayors of Newton, Baxter, Colfax and Monroe, all communities in Jasper County with Skiff Medical Center facilities, "to discuss the hospital's situation and how we're trying to improve it."

The private meeting with the mayors came in advance of the Newton City Council's request at its last meeting that a Skiff representative speak to the council at its first meeting in September. Kahn told the Skiff board members Wednesday that he would speak to the city council at its Sept. 8 meeting.

The Newton council also directed its city attorney to investigate the specific responsibilities - both financially and administratively - the city has toward Skiff as a city-owned hospital.

To that end, Kahn noted to board members that recent discussions with attorneys indicated the residents of Newton are only responsible financially should the hospital issue general obligation debt. However, he noted, the city council is required to approve potential actions by the Skiff board where it might want to issue debt, for instance, for the purchase of a large piece of medical equipment.

Kahn gave little specific information to the board members on what was discussed with the mayors at Wednesday's meeting.

He did say, however, that the mayors wanted Skiff to improve upon the communications they have with the communities they serve.

"They said we need to improve on communication," Kahn said. "I said we're working on it."

Lee will not seek re-election to Skiff board

By PETER HUSSMANN

Skiff Medical Center Trustee John Lee said tonight that he will not be seeking re-election this fall.

Lee is one of two members up for election in November, along with board chairman Gary Kahn.

Kahn notified the Newton Independent last night that he, too, would not be seeking re-election to the board after 16 years of service.

In announcing his decision not to seek re-election, Lee noted the challenges facing the board moving forward.

"Obviously, from sitting at the board meetings, you realize the large amount of hard work the hospital and the board have ahead of them," Lee noted in an e-mail to the N.I.

Lee, the owner of a photography studio in Newton, the father of three boys involved in many activities, and a board member of the Newton Christian School, said "time" constraints led to his decision not to seek re-election.

"So, even though it may sound like an overused term, I just don't have the time," he said. "Too many things on the plate. You know also that your kids are only young once and so I need to focus on their things for now."

"It has been an honor and a pleasure serving the hospital and the community. Even with some controversy, I believe it is important to serve."

Skiff hears good news on additional Medicare funding streams

By PETER HUSSMANN

Skiff Medical Center could see an additional $2.5 million to $3 million flowing to its bottom line before the end of the fiscal year by taking advantage of additional funding mechanisms allowed under federal Medicare rules.

David Boyer, the interim chief financial officer now handling the financial affairs for the hospital, told Skiff board members at today's meeting that efforts previously undertaken by the hospital and another effort planned for the near future could bring substantial amounts of additional revenue. Boyer, who works for the Skiff consulting firm B.E. Smith, replaces David Brokaw, who left earlier this month.

Boyer explained that the first program started about a year ago within Skiff involves an application and review process under Medicare Disproportionate Share rules. Under the program, hospitals that have a disproportionate percentage share of patients staying at the hospital using Medicare as the source of funding compared to total patient days are eligible to receive additional funding.

Boyer said the hospital, which subcontracted to conduct a review on the possibility of receiving the additional funding, was recently notified that its fiscal year 2005 application met the criteria. He said the hospital should expect to see as much as a $200,000 reimbursement for that fiscal year.

Going forward, Boyer said he expects that final settlements will be successfully reached with Medicare for each of the ensuing four fiscal years. If approved, the net impact could be an additional $1 million into the city-owned hospital's coffers.

None of the money, he noted, had yet to be received.

Boyer also informed the board about another Medicare funding mechanism that could bring in even more revenue.

Due to the hospital's designation as a Medicare dependent, a program exists where hospital's with that classification are eligible to see additional funding should their admissions fall by 5 percent or greater from the previous fiscal year due to situations outside their control, such as the changing economic climate in Newton and Jasper County brought about by Maytag's departure. Boyer said Skiff saw its admissions drop above that threshold for each of the past two fiscal years.

The financial officer said plans are being developed to engage a company to seek additional Medicare reimbursements for Skiff under the program. If successful, the hospital could see as much as $1 million in additional Medicare reimbursements for each of the past two fiscal years. The net impact to the hospital would be between $800,000 to $850,000 for each year, taking into account the contingency fee required to be paid, he said.

"Over the next six to nine months, Skiff could see close to $3 million in additional money coming in," Boyer said.

Should the hospital continue to see such admission declines going forward, Boyer said it might be possible to have Medicare include the additional payments as part of its regular patient payments instead of going through the application process for a lump sum payment.

Skiff Medical Center reported a monthly loss of more than $607,000 in July, the first month of its fiscal year. Last fiscal year it lost $2.7 million.

Martin seeking Foreman's at-large seat

Newton Independent

Harold Martin, who was unsuccessful in his bid to be appointed to the at-large council seat left vacant due to the death of Ron Foreman, filed nomination papers today to seek the at-large seat in the November election.

Earlier this month, the Newton City Council appointed Jeremy Heaberlin to fill Foreman's unexpired term until the November election. Heaberlin has made overtures that he will seek election in November to serve the remaining two years on Foreman's term.

In what may be a first in Newton city politics, Martin has established a Web site (http://www.harold4council.org.) where residents can visit to learn more about Martin's candidacy. The site contains biographical information, as well as position statements by Martin on topics of local concern.

Gov. Culver to speak in Newton today on impact of I-JOBS

Newton Independent

Iowa Gov. Chet Culver will be in Newton later today to talk about the benefits his I-JOBS initiative and the American Recovery and Reinvestment Act is having on Newton and Jasper County.

Last month, the governor announced I-JOBS road funding for every city and county in Iowa. In Jasper County, I-JOBS will mean more than $570,000 in additional funding for city streets and county roads, the governor's office said in a statement released Tuesday announcing today's visit.

In addition, the Gov. Culver announced on Tuesday that Jasper County will receive more than $3 million in federal recovery funds for road improvements.

The governor will speak at 3.30 p.m. today at the Newton Public Works facility. He will be joined by Mayor Chaz Allen and other local officials.

Estimates show impact from local option sales taxes

By PETER HUSSMANN

"Find a penny pick it up, all the day you'll have good luck."

Local governments in Jasper County certainly adhere to that adage when it comes to the revenues they collect on the extra penny in sales taxes earmarked for their operations. And if the estimates recently released by the Iowa Department of Revenue on the amount of money county schools, cities and county government will reap in the coming fiscal year stand pat, local governments will have one other thing - sore backs.

Revenue department estimates indicate that the local option sales taxes to be collected in Jasper County and dispersed to the various governments will be more than $6.2 million in the coming year.

The Newton Community School District stands to gain the largest share of that at $1.9 million with the City of Newton and Jasper County each standing to gain $1.12 million for operational expenses.

And Newton City Administrator Tom Wardlow recently told council members that the estimate for Newton is probably low. He notedthe estimates released by the state revenue department for cities do not include the annual reconciliation payments, which the city currently has earmarked to pay for the TPI interest payment of just over $131,000. Further, he said, the estimates do not include the sales tax impacts to Newton and Jasper County from the recent NASCAR Nationwide race, where 56,000 people jammed the Iowa Speedway. (Sales taxes at the speedway are currently retained by the speedway under state legislation approved as an incentive for the track.)

"It has been our experience that these projections are calculated conservatively," Wardlow told the council.

Following is a break out of how much the Iowa Department of Revenue anticipates each city, school district and Jasper County will receive from local option taxes in the coming fiscal year. The figures for the school districts include estimated supplemental payments. The department did not include supplemental estimates for the cities and county in releasing the data.

Cities and County
Newton - $1,128,581.31
Colfax - $144,397.54
Monroe - $119,597.05
Baxter - $69,008.75
Kellogg - $38,117.52
Prairie City - $88,201.45
Lambs Grove - $14,531.77
Lynnville - $23,446.96
Mingo - $16,721.60
Reasnor - $12,029.07
Sully - $59,934.01
Valeria - $3,711.43
Oakland Acres - $10,270.37
Jasper County - $1,120,934.10
Total - $2,849,482.40

County Schools
Baxter - $220,329.12
Colfax-Mingo - $504,128.92
Lynnville-Sully - $227,480.14
Newton - $1,902,118.60
PCM - $558,916.69
Total - $3,412,973.30

Grand Total - $6,262,455.70