WEDNESDAY, JUNE 24, 2020 | IN THIS ISSUE

• GoDaddy restructuring to impact 134 Iowa employees
• JBS unveils plan to invest $5M in three Iowa locations
• Marion IUB member takes top spot with Colorado utility
• In the CBJ: New COVID-19 liability law eases worries
• Rural bankers survey shows weak economy continues
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
GoDaddy restructuring to impact 134 Iowa employees
An internet domain registrar and web hosting service with a major presence in Hiawatha said today it will be implementing a restructuring that impacts hundreds of employees in response to a changing business environment.

GoDaddy Inc., said this morning that due to struggles with its outbound sales unit in the United States, 814 employees were either departing, relocating or transitioning to other roles within the company.

Of those, reports news partner KCRG TV-9, 134 of those jobs are at its Hiawatha-based facility.

The company said employees would be offered the chance to move to a consolidated sales center in Gilbert, Arizona, with some eligible to shift from the outbound to inbound business unit.

Those who are departing the company are being placed on paid administrative leave immediately through Sept. 1. Severance packages after that date will provide two weeks of pay for each full year of service for those that qualify for four weeks. Health care benefits will be extended until Sept. 30, with the company covering COBRA premiums for employees affected on an elective basis through Dec. 31.

The company cited slower demand for “do-it-for-you” services that have a higher cost, and an overall decrease in sales from outbound calling to its customers.

The company will take a $15 million pre-tax charge in its financial reporting for severance and benefit costs but does not expect an impact on their overall revenue trajectory due to strength in other units.

"Even as our overall business continues to perform well and we are updating our revenue guidance for Q2 as evidence of that, we are still facing challenges in U.S. outbound sales, including GoDaddy Social sales," GoDaddy CEO Aman Bhutani said in a letter to employees , adding that while outbound sales had made "many creative efforts" to reverse the impacts of COVID-19, the results were far below what was needed for the operations to be sustainable.

"In addition, we’ve learned our sales teams are more effective when they are together, in a high energy in-office environment, and yet we are faced with the challenge of adjusting our office facilities for safety in a COVID-19 world," Mr. Bhutani added. "We’ve decided to form a single Sales Center of Excellence in Gilbert, Arizona, which impacts our Iowa-based inbound sales teams."
JBS unveils plan to invest $5M in three Iowa locations
JBS USA, which operates more than 60 meat, poultry and prepared foods plants across the country, including four in Iowa, has announced plans to invest $5 million in three Iowa communities to help them respond to the coronavirus pandemic and look to the future.

The American-based food company and owner of Plumrose USA, a premium branded meat company, said today it will include Marshalltown, Ottumwa and Council Bluffs in its new national $50 million Hometown Strong initiative.

“ We take great pride in feeding millions of American families every day,” said Andre Nogueira, JBS USA CEO, in a release. “And this year brought home the fact that our responsibilities – and the challenges we can help solve – go beyond the production of quality food. We’re deeply connected to our communities, and Hometown Strong is our way of showing that commitment and support. We know each community need is different and we’re listening to local leaders to determine where help is needed most.”
 
JBS USA will partner with local officials and community leaders in the three Iowa communities to identify investment projects that strengthen towns where team members live and work.
 
“Iowa is central to the world’s food supply and JBS USA plays a critical role in food production,” said Iowa Gov. Kim Reynolds, adding she appreciated the investment as the state continues to monitor and respond to the COVID-19 pandemic.
 
JBS USA has a significant presence in the state of Iowa, employing more than 4,800 people and paying local producers nearly $1.7 billion each year to support four Iowa facilities, including two fresh pork facilities in Marshalltown and Ottumwa, and two Plumrose USA consumer-ready production facilities in Council Bluffs. The company has an annual payroll in Iowa of more than $270 million, and contributed more than $30 million in taxes and more than $155 million in capital investments over the last five years.
 
Nationally, the $50 million investment will include donations to alleviate food insecurity, strengthen long-term community infrastructure and well-being, and support COVID-19 emergency response and relief efforts. All funds will be committed by the end of the year.
Marion IUB member takes top job at Colorado utility
Nick Wagner, a member of the Iowa Utilities Board (IUB) since 2013, has been named vice president, Colorado Regulatory Affairs & Policy, with Black Hills Energy in the company's Denver office.

Black Hills operates in Iowa and seven other states.

Mr. Wagner, who will transition to his new role in July, was appointed to the IUB in May 2013 by then-Gov. Terry Branstad and reappointed to a six-year term in 2019 by Gov. Kim Reynolds. During his tenure, he worked to improve the efficiency of the agency and focused on balancing the interests of utilities and customers.

“I am very appreciative of Ambassador Branstad and Gov. Reynolds for providing me the opportunity to serve the people of Iowa,” Mr. Wagner said in a release. “I have really enjoyed working with and have learned a tremendous amount from other board members and IUB employees. I am continually impressed with the work they all do for Iowa and I will miss the IUB.”

Board Chair Geri Huser praised Mr. Wagner’s collaborative work style and focus on technology that has made the board’s administrative functions more efficient.

“I have appreciated his vast knowledge of the utility industry and willingness to jump in and take on any challenge,” Ms. Huser said.

Mr. Wagner was elected president of the National Association of Regulatory Utility Commissioners (NARUC) in November 2018 and his year-long term focused on making NARUC a more valuable asset to regulators and state commissions by providing additional resources to aid state commissioners and staff in developing their regulatory skills. He expanded new commissioner training and helped state regulators transition from commissioner to non-commissioner roles.

Mr. Wagner also served as president of the Mid-America Regulatory Conference and previously worked as director of quality management for the ESCO Group in Marion. Prior to joining the IUB, he served four years on the Marion City Council and later served two terms in the Iowa House of Representatives.

IMAGE: Nick Wagner
In the CBJ: New COVID-19 liability law eases worries
Iowa manufacturers and meat processors have taken a heavy hit from the COVID-19 pandemic, with large-scale outbreaks making national news and factories struggling to maintain production as they cope with absenteeism and new layers of health and safety precautions.

One thing they will not have to worry about, however, are piles of costly legal actions from employees seeking compensation for falling ill on the job.

The controversial COVID-19 Response and Back-to-Business Limited Liability Act powered through both Republican-led houses of the Iowa Legislature earlier this month and was signed by Gov. Kim Reynolds on June 18. It provides liability limitations on potential COVID-19 lawsuits for a wide range of businesses and organizations including restaurants, retail establishments, medical providers, senior care facilities and meat processing plants, provided they “substantially” follow public health guidance.

Opposed by Democratic legislators, a number of legal groups and the union representing meat processing workers for offering too broad of an immunity, the law prohibits individuals from filing a civil lawsuit against a business or health care organization unless it relates to a “minimum medical condition” – a diagnosis of COVID-19 that requires inpatient hospitalization or results in death, or involves an act that was either intended to cause harm or constitutes actual malice. The liability protections would be retroactive to Jan. 1.

JD Davis, vice president of public policy for the Iowa Association of Business and Industry (ABI) said the organization made passage of limited liability protection for businesses and manufacturers one of its top two legislative priorities – along with ensuring employer-paid unemployment tax rates remained stable – in the latest shortened session.

“We were concerned it could quickly become a blame game of who, what and when,” Mr. Davis said, adding that in addition to keeping America’s food supply chain going, many manufacturers had converted lines to produce personal protective equipment, stepping up to meet the crisis head-on.

Read the full members-only story in this week's print or digital editions of the CBJ.

IMAGE: No other sector of Iowa's economy has been hit harder than manufacturing when it comes to dealing with COVID-19 outbreaks. CREDIT: UPSPLASH.COM
Rural bankers survey shows weak economy continues
A survey of rural bank CEOs showed a continued economic downturn in June , the Des Moines Business Record reports, with one-third of those surveyed reporting shutdowns of ethanol plants in their communities.

The recently released Creighton University Rural Mainstreet Index showed the index increased from May but remained weak, climbing to 37.9, up from 12.5 the previous month, but still well below the neutral growth threshold of 50.

"Even with a slight recent rebound in prices, farm commodity prices are down by 7.3% over the last 12 months," Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University’s  Heider College of Business , said in the report released late last week. "As a result, and despite the initiation of $16 billion in USDA farm support payments, only 3% of bankers reported positive economic growth."

In Iowa, the June index increased to 39.4, from 8.2 in May. The state’s farmland-price index grew to 48.3, up nearly 12 points from May, and Iowa’s new-hiring index in June climbed above neutral growth to 51.9, up from 19.4 in May, the report showed.

Compared with a year ago, jobs in rural areas of the state were down 10.9%, the survey showed.

"We are closely monitoring the conditions in the ag sector to be sure we are adequately funded in our loan loss reserve," James Brown, CEO of Hardin County Savings Bank in Eldora, said in the report.

The survey, created in 2005 by Mr. Goss and Bill McQuillan, former chairman of the Independent Community Banks of America, is a snapshot of the economy in approximately 200 rural communities with average populations of about 1,300 in 10 states that are dependent on agriculture and energy.

Other findings in the June survey include:
  • The overall index advanced to a weak level. More than three-fourths of bank CEOs reported an economic downturn in their local area.
  • Almost one-third of bankers with local ethanol plants reported current production shutdowns, either permanent or temporary.
  • Approximately 33.5% of bankers expect low commodity prices to be the greatest economic challenge over the next 12 months for their Rural Mainstreet bank.
  • More than one-fourth, or 27.3%, of bankers indicated that rising loan defaults represented the biggest challenge for their banks for the next 12 months.
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Short Term Event Planner
 
COVID-19 Assistance for Small Businesses , by SBA, 1 p.m., online. The SBA will give an update on the Paycheck Protection Program, the Economic Injury Disaster Loan (EIDL) program and information on additional SBA resources available to assist small businesses. Free. To join, visit bit.ly/2N4YZ8N .
 
The Impact of Current Legislation on Employee Benefits Plans , by CLA, 1-2 p.m., online. Learn the latest updates on retirement plan changes, health plan provisions and the Paycheck Protection Program and retirement plan contributions. Free. To register, visit bit.ly/2BarnUm . 
 
June 25 
Working Remotely: Employer Strategies & Tips for Culture, Leadership, Flexibility & Technology , by Holmes Murphy, 10-10:45 a.m., online. Discussion topics will include culture, how to improve leadership, benefits of flexibility and the role of technology. Free. To register, visit bit.ly/2YfW7es . 
 
Fighting COVID-19 Scams: Virtual Panel with Iowa Attorney General Tom Miller , by National Consumers League, 11 a.m., online. Join this “fireside chat” with Mr. Miller and the NCL, followed by a panel discussion on resources and tips to avoid COVID-19 fraud and scams. Free. To register, visit bit.ly/3e3Us2l . 
 
June 26 
COVID-19 Assistance for Small Businesses , by SBA, 1 p.m., online. The SBA will give an update on the Paycheck Protection Program, the Economic Injury Disaster Loan (EIDL) program and information on additional SBA resources available to assist small businesses. Free. To join, visit bit.ly/2BdsvXq .
 
June 30
Coffee, Calm and Community , by Iowa City Area Development Group, 10-10:15 a.m., online. These weekly Tuesday coffee meetings will be a time to reflect, share resources and connect with other business and HR leaders. Free. To join, visit bit.ly/3fsjqsu .

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Headlines from KCRG-TV9
These news items are provided by KCRG-TV9  
 
Certain counties in Iowa are experiencing an uptick in COVID-19 cases, which Gov. Kim Reynolds attributed to more testing throughout the entire state. But the data shows that’s not the whole story. According to figures from the state’s coronavirus website, Johnson County, for example, is seeing a decrease in testing but a slight increase in positive cases, with the county’s positivity rate rising to about 13% on Monday. From May 6 to June 16, the state reported Johnson County’s rate of positive cases was no higher than 6%. Dubuque County’s testing has remained at about the same level since late May, but its positivity rate is climbing too, with the state reporting a 19% positivity rate Monday, the highest that number had been since May 8. During a stop Tuesday in Keota on her 99 County Tour, Gov. Reynolds said she will probably extend  the state’s current public health emergency proclamation , which expires Thursday, but won’t add any restrictions. That proclamation, which she signed on June 10, eased capacity restrictions on most businesses across the state while still requiring some social distancing measures. “Nope, there’s no need to do that,” she said when asked about the possibility of reinstating restrictions, adding other numbers were heading in the right direction and "right now, things are looking good, and we’re hoping that Iowans continue to do what they’ve been doing, and we’ll continue to see our numbers decrease.” Read the full story here .

The Cedar Rapids City Council voted last night to move forward negotiations with local development company 1st and 1st LLC to make plans to develop the vacant land at First Avenue and First Street west in a proposal called Kingston Landing. It currently includes plans to build a family arcade, a movie theater and a Big Grove Brewery. The city set aside this area for years hoping to build a casino, but shifted direction after being denied a casino license twice in the last six years. Local restaurants like Thew Brewery Company are hopeful to finally see something built that will increase business. Haley Flenker, owner of Thew Brewery Company, said she’s excited to see something come into the area that would help local businesses grow. “Obviously, we want something to go into this area,” Flenker said. “Part of the reason we moved into this neighborhood was the potential for growth and the fact that things were moving this direction, so to actually see something go in there would be really neat.” The proposal is estimated to cost $90-$100 million. There’s not currently a timeline for when the project could get started. The city said its next steps are to work on a project term sheet with 1st and 1st LLC.

These news items are provided by KCRG-TV9
Your KCRG-TV9 First Alert Forecast
Plan on a day very similar to yesterday, though it’ll be a bit warmer overall. Highs will be in the mid-upper 70s with comfortable humidity. Yesterday, we had some isolated showers flare up in the late afternoon and early evening, and that may very well happen again today. Most areas stay dry, though. Looking ahead, plan on a sunny and nice Thursday with highs back into the mid-80s.