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Iowa’s wind power ‘paramount’ to Apple’s decision on new data centers

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Apple CEO Tim Cook.

If the energy from wind turbines hadn’t been here, the chief executive of Apple today said his company would not have chosen Iowa as the site for two new data centers.

During an interview with Radio Iowa this afternoon, Apple CEO Tim Cook called renewable energy “paramount” to the decision.

“For us, that’s kind of a gate. If we couldn’t do that, we would not be here,” Cook said. “To Iowa’s credit, Iowa saw this and had the vision to work with the utilities and so forth so it could happen. I think that says a lot about the people here and how they work together.”

Officials with the State of Iowa and the City of Waukee voted to provide more than $200 million dollars worth of tax breaks and other incentives to Apple for the project. Apple will spend nearly $1.4 billion on construction and, once completed, about 50 full-timers will work at the data centers. Critics are already questioning the return on state and local governments’ investment.

Governor Kim Reynolds and Apple CEO Tim Cook.

“The thing that’s probably not understood about Apple is we’re the largest taxpayer in the United States,” Cook told Radio Iowa. “…We pay what we owe and, in addition to that, we wanted to contribute to the community.”

Cook pledged Apple will contribute up to $100 million toward public improvements in Waukee, including construction of a new sports complex.

“I’m hoping to personally enjoy it myself and we look forward to growing jobs over time,” Cook said. “There will be a ton of construction jobs in addition. We’re estimating 550 or so initially, but I suspect we’ll be building more buildings as well.”

Today was not Cook’s first visit to Iowa. Cook spent a week in Iowa in the late ’80s or early ’90s, riding his bicycle along the RAGBRAI route.

“That trip made a permanent impression,” said Cook, who did pedal for 100 miles during the “century” day of the ride. “The friendliness, the openness — strangers were inviting you into their home and that just doesn’t happen everywhere.”

Cook was surprised when the governor told him the ride continues to be an annual event and Cook spoke fondly of cycling through small towns in Iowa.

Many of the residents in Iowa’s small towns and rural areas cannot connect to the internet with their Apple devices, however. Cook, who grew up in a community of about 3000 residents, pounded his index finger into the table as he spoke about that lack of connectivity.

“I think that it’s critical that every person in America have broadband — every single one — because, if not, people get left behind,” Cook told Radio Iowa. “And that’s not acceptable.”

Cook indicated Apple’s “current role” in technology deserts is to provide iPads and other devices to more than 100  “underserved schools” around the country. Cook visited an education center in Waukee earlier this afternoon where high schoolers are working on high-tech projects, developing apps and even providing IT services to local companies.

“They inspire me,” Cook said, “and they are the fuel which pushes us to keep innovating and keep creating and pushing the envelope.”

AUDIO of Radio Iowa interview, 7:00

State officials focus ‘more visibility’ on cyber security (AUDIO)

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Bob Von Wolffradt

Bob Von Wolffradt

The chief information officer for the State of Iowa joined the governor today in unveiling a report that outlines a new cyber security strategy for state government. Bob Von Wolffradt says state government is entrusted with a lot of data.

“What we’re trying to do is provide a lot more visibility on cybersecurity from a threat perspective, but also a mitigation perspective,” Von Wolffradt says. “And also to help our employees to navigate and deal with all of the electronic data that passes in front of them.”

Governor Branstad says the digital world is a “rapidly changing environment.”

“The present law enforcement agents, they didn’t get training in cybersecurity when they went through the Law Enforcement Academy,” Branstad says. “But it’s become a much bigger issue here in recent years and that’s the reason why we think we need but also the people that have been in law enforcement for some time.”

State employees need more training, too, according to Branstad.

“It’s an ongoing thing that we all need to work on,” Branstad says.

Governor Terry Branstad.

Governor Terry Branstad.

Branstad points to what happened in South Carolina in 2012. An international hacker gained access to a computer in South Carolina’s Department of Revenue, exposing more than 3.5 million Social Security numbers and nearly 400,000 credit card numbers belonging to South Carolina taxpayers. The chief information officer for the State of Iowa says computer systems in each state agency here are being graded to identify and fix risks.

“We want to report that to the governor so he has a really good idea of what’s going on in the executive branch,” Von Wolffradt says.

Von Wolffradt plans to launch a more robust public education campaign in October about cybersecurity in Iowa schools and businesses. Governor Branstad says cyber security isn’t an “easy” topic.

“People don’t want to talk about their vulnerabilities or whatever, but we do want the sharing of information. We want the knowledge that’s gained by those that have successfully thwarted cyber attacks to be able to be shared with others whether they’re in the private sector or state and local government…Things like utilities are a particular target that we want to protect.”

Officials are updating the state’s emergency response plans to address potential cyber attacks on physical infrastructure like power grids and water systems.

AUDIO of Branstad’s weekly news conference

Iowa’s governor in California, making pitch at BIO conference

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Governor Terry Branstad.

Governor Terry Branstad.

Governor Terry Branstad is in California today, at the BIO International Convention. He’s touting a new state tax credit for companies that develop new uses for the byproducts left behind when ethanol and biodiesel are made.

“I went to Montreal last year to tell them that we were proposing it. It passed the House,” Branstad says. “This year it passed both the House and the Senate. It’s now law, or I guess January 1st it takes effect, but we’ve already got a number of companies that are looking at it.”

Starches, sugars and oils are the left-overs from “biofuel” production. Iowa’s new “biochemical tax credit” will provide up to $10 million a year to companies that develop new products from those left-overs.

“I just think this is the next generation of quality jobs that are going to be able to be created because we have this biochemical tax credit,” Branstad says. “I want the world to know it and this is a great forum to be able to talk about that.”

More than 15,000 executives from companies in the world’s biotech and pharmaceutical industries are gathered in San Francisco for the week-long BIO convention Branstad’s attending. As Branstad meets with executives considering Iowa because of his new biochemical tax credit, he will pitch the idea of setting up operations on or near existing biofuels plants.

“You know, already you’ve got the complex at Eddyville where they’re making all kinds of products,” Branstad says.

Experts say about 30 chemicals left over from biofuel production hold the greatest potential for development.

Branstad will be in California ’til Thursday. Branstad will visit the San Francisco headquarters of McKesson while he’s there. Last year, McKesson picked Clear Lake as the site for a new warehouse in its pharmaceutical distribution network. Branstad also plans to make “prospecting” calls on California-based businesses that are considering expansion plans in Iowa.

 

Governor approves state standards for Uber, Lyft, other ride-sharing companies

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Governor Terry Branstad signs the bill regulating ride-sharing businesses.

Governor Terry Branstad signs the bill regulating ride-sharing businesses.

The governor has signed a bill into law that sets up new statewide standards for internet-based ride-sharing services like Uber and Lyft.

The new law requires background checks for drivers, to screen out those with criminal records or red flags in their driving records.

Senator Tod Bowman, a Democrat from Maquoketa, says the legislation is a compromise after two years of behind-the-scenes work.

“It protects drivers, passengers, the public and other businesses,” Bowman says.

The new law gives state officials new authority to oversee Uber, Lyft and other “transportation network companies” that let a passenger use an app on their smartphone to arrange a pick-up and pay for the ride. It lays out how much insurance the driver or the company needs to carry, plus sets some standards for vehicle safety. Uber currently operates in Des Moines, Ames, Cedar Rapids and the Quad Cities.

“For those of you that haven’t had a chance to be in a location that has Uber, it is a safe, reliable, practical and affordable alternative,” says Representative Vicki Lensing, a Democrat from Iowa City.

Iowa is now one of 32 states with laws governing how Uber and Lyft may operate. The ride-sharing companies today suspended service in Austin, Texas. On Saturday, Austin voters refused to get rid of a local ordinance requiring their drivers be fingerprinted.

Photo courtesy of the Governor’s Twitter feed @TerryBranstad.

Iowa DOT goes ‘paperless’ with construction contracts

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DOT-thmbThe Iowa Department of Transportation pays hundreds of millions of dollars to the contractors working on Iowa’s roads and bridges. DOT director Paul Trombino says his agency is managing all the “paperwork” for the projects — without paper.

“All of our contract documents are done electronically, including signatures with the industry,” he says.

The “paperless” project is called “Doc Express”.

“It’s really grown,” Trombino says. “We actually have a lot of states that are really looking to copy our process with this electronic document and we’re really sort of leading that edge from a national perspective.”

The Iowa DOT has a five-year, $3.2 billion construction budget, with designs for hundreds of projects. Contractors and subcontractors are logging onto the DOT’s “Doc Express” website to submit all the information about the projects. An electronic record is created for all contracts and any changes that are made. Officials say “Doc Express” helps avoid having paperwork lost or damaged on the worksite, plus contractors and state officials can easily sort the electronic documents to quickly find what they need.

“Doc Express” is configured for use on smart phones, tablets or laptops, so contractors can refer to documents and make adjustments in the field rather than waiting ’til they return to the office.

Prosecutor, Iowa Lottery official talk about Hot Lotto verdict

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Rob Sand.

Rob Sand.

A Polk County jury found a former Iowa Lottery contractor guilty of two counts of fraud for allegedly manipulating the numbers so he could try to claim a multi-million dollar Hot Lotto prize back in 2011.

Lawyers for 52-year-old Eddie Tipton argued he was not the person on surveillance video seen buying the ticket and there was no evidence he manipulated the numbers draw by a computer.

Assistant Attorney General Rob Sand, prosecuted the case for the state. “I think it’s a good verdict, that shows that modern juries today — just people off the street — understand the inner workings of technology are mostly proven by through circumstances around them than what we see directly,” Sand says. “And I think that’s a good indication that these crimes are prosecutable in the future, even if we lack the absolute direct evidence.”

Tipton worked for the Multi-State Lottery Association as information security director, and prosecutors showed how he could have manipulated the computer program to draw the numbers that he wanted. Sand believes the testimony of people who identified Tipton from the surveillance video of the convenience store where the ticket was sold was a key in the verdict. “They aren’t people who are trying to identify a stranger, but individuals watching the video saying ‘I know that person,’ is very strong evidence of identification,” Sand says.

He says those identifications, combined with the other evidence that showed how Tipton could have used a program to erase any traces of what he had done. “There’s simply too many coincidences for it to be a series of coincidences. And I think the jury at that point likely thought these are not coincidences, but clues that all have a single explanation as to a variety of explanations,” Sand explains. The ticket for the 14 million dollar prize was turned just before it was set to expire on December 29, 2011. A New York attorney tried to claim the prize for a trust incorporated in Belize. Iowa Lottery officials refused to pay out the prize after people involved in the trust refused to reveal their identities.

That led to a lot of mystery surrounding the case. Sand says the case also gained national attention because it was unusual. “I think it is to my knowledge the first time that someone has been accused of fixing a lottery game that is run through a computer program,” Sand says. “I know, I think in the 1980’s maybe the 1990’s there was a scandal in Pennsylvania with individuals who were I think were injecting dye into roller balls in a Powerball type game — which is I think is what led to the use of computer programs in a game like this.”

Tipton faces 10 years in prison and is schedule to have a sentencing hearing on September 9th.

The guilty verdict in the Hot Lotto case brings the story one step closer to a conclusion in what Iowa Lottery spokesperson Mary Neubauer says has been one of the strangest in the history of the organization.

“There is no doubt this has been a fascinating case. I think we said several times that the best fiction writer could not have made up the reality that occurred,” Neubauer says. The Iowa Lottery refused to pay out the jackpot until it had more information on the winner, and Neubauer says that shows the system worked.

“This is just a really important reminder that lotteries have to keep monitoring and making improvements to stay ahead of people who would try to beat the system,” Neubauer says. “We never will be able to stop people from trying to commit crimes — but we need to have strong procedures in place to catch and prevent them when they do. And we think the system worked in this particular case.”

Neubauer says they made adjustments made as information came out about this case. “There have been some things that we have changed because of the particular things we have learned in this case,” Neubauer says. She says she’s not going to reveal the changes to keep them from anyone who might want to try to cheat the system.

The Hot Lotto prize in question would have been around 10 million dollars if taken in cash, and was worth just over 14 million dollars at the time the ticket was turned in. The Iowa Lottery used the money from that jackpot for another promotion after deciding there was not enough information to pay it out.

 

Governor signs broadband expansion bill into law (AUDIO)

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Governor Brandstad, Lt. Governor Reynolds, State Representatives Peter Cownie and Rob Taylor. (L-R)

Governor Brandstad, Lt. Governor Reynolds, State Representatives Peter Cownie and Rob Taylor. (L-R)

Governor Terry Branstad traveled to an ag equipment dealership in Perry today to sign the “Connect Every Acre” high-speed broadband bill into law. The governor signed the bill at a table set up in a machine shed which housed several large pieces of John Deere Ag equipment.

“Indeed the legislation will foster broadband expansion across Iowa, and assist in building Iowa for the future,” Branstad says. He praised the bipartisan support of the bill.

Lieutenant governor Kim Reynolds joined the governor at VanWall equipment for the signing. “The Connect Every Acre bill signed into law today will provide for the coordination and facilitation of broadband access in targeted services areas throughout the state,” Reynolds says. “It establishes a grant program to award grants to communication service providers.”

John Teeple

John Teeple

John Teeple, the director of John Deere’s Intelligent Solutions Group, was also on hand for the signing. “Iowa’s farms, schools and communities will be able to connect to the internet with higher capacity and speeds — enhancing distance learning opportunities and positioning rural communities to better compete in the digital economy,” Teeple says.

Teeple says the modern technology in farm equipment requires high-speed internet. “Most of the machines on display here today are equipped with advanced technologies, like cellular modems, which are wirelessly connecting them in the cab to precision farm data — such as application rates — as well as to other machine, economic, market and weather data,” Teeple says.

He was asked if the problem is lack of internet access, or download speeds, and replied that both can be issues. “We have machines today that in the field today equipped with 2-G and 3-G modems as an example, and there are definitely places in the state where there is no coverage,” Teeple explains, “And there are places where there is minimal or spotty coverage at best.”

Governor Branstad signed the broadband expansion bill into law.

Governor Branstad signed the broadband expansion bill into law.

The legislation creates a property tax exemption of 100 percent for 10 years for installations of equipment in a targeted service area and sets up a framework for a grants program for the installation of broadband service in those targeted areas. The one thing that doesn’t come with the bill is state funding, but Governor Branstad is hopeful they can win grants to get things going.

Branstad says they will look at all different sources for possible grants. “And I think there could be federal dollars available from the U.S.D.A. and other sources. We are also going to look to private sector potential sources and what the state might be able to do with different types of mechanisms,” according to Branstad.

The governor pushed for the legislation in 2014, but it failed to pass, and he says he is pleased that it passed this year. He says now that it is passed, he will look at asking the legislature for money again in the next session.

Audio: Branstad bill signing. 9:50.

 

 

Supreme Court says juror’s Facebook posts didn’t impact murder trial

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Iowa Supreme Court building.

Iowa Supreme Court building.

The Iowa Supreme Court says a former Fairfield man does not deserve a new trial on his murder conviction. Tyler Webster was found guilty of second-degree murder in the shooting death of 32-year-old Buddy Frisbie in August of 2012.

Webster appealed the conviction saying one of jurors was biased because she liked a comment on Facebook posted by Frisbee’s stepmother. He says the same juror failed to disclose she was good friends with Frisbee’s stepsister, and talked about the case at a local store. The Iowa Court of Appeals sided with Frisbee and ordered a new trial.

The Iowa Supreme Court found the juror’s connection to the stepsister and discussion in the store did not impact the verdict. The high court also ruled the “like” of Frisbee’s stepmother’s comment on Facebook “only showed a degree of empathy for a grieving stepmother who lost her son.” The ruling says if the court disqualified jurors because the showed empathy for the family of crime victims, they would have no jurors.

Justice Daryl Hecht agreed with the court’s ruling except for the issue of the Facebook post. Hecht wrote the evidence establishes the juror and Frisbie’s stepmother were more than casual acquaintances and the juror’s interactions with her on Facebook went beyond mere expressions of empathy.

Full ruling: Tyler Webster ruling PDF

Iowa lawmakers consider regulating ride-sharing services Uber, Lyft

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A bill to regulate internet-based ride-sharing services like Uber and Lyft is under consideration at the statehouse.

Uber drivers have been operating in the metro areas of Des Moines, Cedar Rapids and Council Bluffs — using their own cars and ferrying passengers who request a ride using a smart phone app. The City of Des Moines just passed an ordinance to regulate Uber drivers. Pooneet Kant, Uber’s general manager, is pressing legislators for statewide rules.

“We just think that having a uniform standard makes more sense,” Kant said after a senate subcommittee meeting this week.

The Iowa Department of Transportation is “officially undecided” on the bill, but Mark Lowe, director of the agency’s motor vehicle division, told senators a “statewide” approach is probably best.

“If you look at the nature of the business model, it’s not going to be confined to a specific city geographic boundary,” Lowe said.

And Lowe said ride-sharing services like Uber and Lyft eventually may offer new mobility to residents in areas of Iowa where taxis and bus service aren’t readily available.

Six states already have passed laws creating uniform, statewide regulations for ride-sharing companies and Iowa is among more than three dozen states which are contemplating such a move this year. The bill that is ready for debate in the Senate Transportation Committee would require background checks for Uber and Lyft drivers. It also would set a minimum level of insurance the drivers must get to cover their riders and other vehicles if they’re involved in an accident. But Doug Struyk, a lobbyist for Wells Fargo, said banks that hold the notes for car loans wouldn’t be protected if a Uber or Lyft driver totals his or her car while carrying a passenger.

“Ultimately that leaves a driver who is upside down on a note or a judgement-proof debtor, which is not a good position for our financial institutions to be in,” Struyk told senators.

The state’s largest airports are pressing senators to let airports charge Uber drivers a fee for carrying passengers to the airport — the same fee taxis, limos and shuttle buses pay for serving airline passengers. Frank Chiodo, a lobbyist for the Des Moines Airport, said it’s a fairness issue.

“Making sure that all commercial vehicles that operate and provide services at our facility are treated the same,” Chiodo said.

Jim Obradovich, a lobbyist for the Iowa Public Airports Association, said his group agrees.

“This is an issue that’s not just Des Moines,” Obradovich said. “It’s the Eastern Iowa Airport (in Cedar Rapids). It’s Dubuque and we are looking to get that airport-specific fix.”

Uber, in German, means over or above. The word uber is frequently used in texting or online to describe something that is the best or the ultimate experience.

Uber — the ride-sharing service — started in San Francisco in July of 2010. Uber and Lyft drivers can now be found in cities around the globe. Yesterday, a court in Paris declined to uphold a ban on Uber in France. Courts in Spain and the Netherlands have ruled against Uber, though, and sided with critics who contend it is unfair competition with traditional taxi services that employ professional drivers. Uber has lowered its prices in Germany to comply with a ride-sharing law in that country.

Review by State Auditor questions spending by four state health boards

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Auditor-logoA review by the State Auditor’s office that questioned the spending of four boards under the Iowa Department of Public Health has led to changes in procedures. State Auditor Mary Mosiman says the process for buying electronics raised concerns during an audit.

“Expenditures that were reimbursed to employees who had used their personal credit cards or made individual purchases of technology devices — including i-Pads, printers, scanners, laptops, GPS navigators, some cameras, a Kindle was in there, some wireless speakers — instead of going through the normal purchasing process.

The review involved the Iowa Board of Pharmacy, Iowa Dental Board, the Iowa Board of Medicine, and the Iowa Board of Nursing. “One particular individual, he has used his personal credit card to the tune of a little over 18-thousand dollars,” Mosiman say. “And when you are using your individual credit card, you can be earning reward points or other incentives that typically should be the property of the state for future savings instead of being the property of the individual. So, it’s not recommended practice.” She says individuals also paid some sale taxes that would not have been paid through the state purchasing process.

Mosiman says failing to follow state procedures left the devices open to not having the proper protection. “Without going through the department’s IT department they did not have the necessary security for data and protection that is necessary, specifically in health boards,” Mosiman explains. The report covers purchases made from July 1st of 2011 to August 31st of 2014. Mosiman says most of the purchases took place in 2011 and 2012.

The Iowa Pharmacy Board had reimbursements for equipment of more than $45,500. “We’re questioning whether all of these pieces of equipment were necessary. Because as we interviewed or discussed the matter with different employees, some of the i-Pads did not perform all of the services that they needed for technology, so they still had to use their previously issued pieces of equipment,” Mosiman says. “So, we were questioning the public purpose for all of these pieces of equipment that were purchased.”

Mosiman says they also questioned why the Pharmacy Board paid the full cost of internet service for employees, which totaled more than $14,000 in the 2013 fiscal year. There were cellphone plans paid for by the state, when there were very few calls made on the plan. The State Auditor says her organization made several recommendations on changes to bring the boards into compliance with state rules. She says changes were made soon after her office started the review.

“I think once the realized that it is considered questionable, they put procedures into play to make sure they are doing a better job of that,” Mosiman says. “So, for the most part there was a favorable response to the recommendations within our report.” Mosiman says the problems surfaced in a routine review of the purchasing process for the boards.

You can see the full report here: IDPH Boards review PDF