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04 COMMISSIONER’S CORNER 06 BUSINESS BRIEFS 10 STATE OF THE ECONOMY FOR LOCAL CITIES 16 MONEY MATTERS AFFECTING SMALL BUSINESS 20 MADE IN LAKE
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FIND THE FUTURE AT LAKE COUNTY’S CITIZENS’ ACADEMY Economic development is largely a human-relationship-based endeavor driven by growing social capital. Yes, “business decisions” are made during the vetting process based on profit/loss statements and investors’ return on investment (ROI). However, the producers of a local economy, such as manufacturing, agriculture, and small business entrepreneurs, build wealth and grow in an environment that is productive, trustworthy, and has open, honest communication. One measure of an environment that builds social capital is participation in local government. Show me a community truly expanding its economic prosperity in measures such as salary growth and small business start-ups, and I will show you a community positively engaged in local government. The making of our society into a “virtual community” has some marketplace benefits but also presents a serious challenge to promoting a good environment for building social capital. Local government participation competes with media, entertainment, apathy, and understandably, the dwindling time we have with our families in modern society. A particular danger arises when misinformation, negativity, and personal attacks become prevalent on websites, social media, and sometimes even in conventional media. A community like Lake County may have the economic wind at its back, but if enough people see doom and gloom, the economy will stagnate or worse. “LOCAL G OVE R N M E NT Local government participation should not be conducted via your TV screen E NGAG E M E NT I S M EANT TO or computer screen on some blog or form of social media. Local government BE EXPERIENCED IN PERSON engagement is meant to be experienced in person through participation. The T H R O U G H P A R T I C I P A T I O N .” antidote to negativity and misinformation is to invite people into the perceived “fold” and ask them to see and touch for themselves. Lake County and its cities are working hard to promote economic development and diversify our economy. But we need your help. With respect to economic development, a diversity of thought and opinion based on facts will only help us grow and change for the better. We need to build our social capital. In our attempt to build social capital, the Lake County Board of County Commissioners (BCC) is encouraging local government participation through its upcoming Citizens’ Academy. Some cities like Clermont also have a Citizens’ Academy. A Citizens’ Academy differs from a Citizens’ Police Academy in that it encompasses a broad range of issues, not just public safety. If a resident or business owner participates in the Lake County Citizens’ Academy, they will be immersed in issues such as budgeting, code enforcement, and growth management. Furthermore, two years ago, I coordinated a County Government Efficiency Group comprised of local business leaders. Participation here made a difference as pay for performance and efficiency incentives were adopted as policy by the BCC. I anticipate the efficiency group’s work to be ongoing in the coming years as we strive for continuous process improvement. We need you! Diversifying our economy is not easy. Our greatest asset toward our aim is our people. Good social capital precedes any good economic development initiative. Stay tuned for upcoming information on the Lake County Citizens’ Academy. SEAN PARKS,
LAKE COUNTY COMMISSIONER 4 LAKE B US I N E SS MAGAZ I N E.COM
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was accepted to Class XXXV of the East Central Region of Leadership Florida, a statewide group of leaders serving Florida. “I'm honored to represent Lake County,” Sean says. He also sees it as way to assist the county with economic development goals and visions for the future.
EUSTIS APPROVES BUSINESS-FRIENDLY PROGRAMS EUSTIS // The City of Eustis is making efforts to
ensure its regulations and processes are business friendly and promote economic development, according to city officials. Eustis City Commission recently approved a 50-percent waiver of sewer impact fees for new industrial uses or expansions for businesses that meet criteria requirements. The city also gave the OK on a streamlined development plan approval process “We are leveraging our available sewer capacity as an economic development tool to encourage private investment,” says Economic Development Director Tom Carrino. For details on the impact fee waiver, call Carrino at 352.483.5435, or to learn about the streamlined development plan approval process, call 352.483.5430.
ROB FICKETT NAMED BATTALION CHIEF LEESBURG // Lake
County Fire Rescue promoted Rob Fickett from lieutenant to battalion chief during a recent pinning ceremony at Station 70 in Leesburg. “It is an honor to promote folks from within the organization who have shown their dedication to the fire service,” says Lake County Fire Chief Jim Dickerson. Fickett began his career with Lake County Fire Rescue in 2006, and the Eustis native’s grandfather retired from Leesburg Fire Department in 1984; his uncle retired from Orlando, and is an assistance chief in Mount Dora; and Fickett’s younger brother, Ryan, is also a Lake County firefighter. “I started riding along with my father-in-law at the Orlando Fire Department in 2003, and decided after riding eight shifts with him that I wanted to be a firefighter,” Fickett says. As one of six frontline battalion chiefs, he will be responsible for managing 12 fire stations, covering 600 square miles, and supervising about 25 employees. He is also an instructor at Lake Tech Fire Academy for special operations and a member of Florida Taskforce 4 as a heavy equipment and rigging specialist. He’s currently enrolled in Florida’s Emergency Management Leadership Institute program.
USB PROMOTIONS
Sixteen-year veteran Bill Wonus has been promoted to senior vice president in Leesburg, and Lori Johnson has moved up as branch manager in Umatilla, says Greg Nelson, president and CEO of United Southern Bank. Nelson says Wonus and Johnson’s promotions were “well deserved,” and as an independent, community bank, USB strives to promote from within the company. Wonus oversees commercial lending in the greater Leesburg area; Johnson, a 17-year USB veteran, assists with loans in Umatilla and daily banking duties. USB has been serving Lake County since 1937. LE E S B U RG //
6 LAKE B US I N E SS MAGAZ I N E.COM
B U S I N E S S
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MANAGEMENT STUDENTS PLACE FIRST AT INTERNATIONAL CONFERENCE
Organizational Management students at Lake-Sumter State College and members of the Society for Advancement of Management (SAM) won first place in the open division of the case competition at the 2016 International SAM Conference in Arlington, Virginia. Patricia Delhaye, Erica Dean, Nancy Harmon, and Kelly Armstrong won over teams from Texas A&M, Clarion University, Ohio Northern University, and Flagler College. They received the top prize for their analysis of the case study topic, “Target Corp’s Tarnished Reputation: Failure in Canada and a Massive Data Breach.” “The experience and knowledge attained from the courses in the program and their individual professional experiences coupled with their ability to collaborate made this a winning team,” says Dr. Luis Pizarro, program manager of the Bachelor of Applied Science in Organizational Management, LSSC’s first baccalaureate degree program. LE E S B U RG //
DR. WYMER APPOINTED VP AT LSSC Dr. Douglas Wymer has joined Lake-Sumter State College as vice president of academic affairs, and becomes a key member of President Stanley Sidor’s cabinet. Wymer will provide strategic oversight, lead all accreditation efforts, and oversee more than 25 academic programs, eLearning, library services, and the learning center. “Dr. Wymer has extensive experience within the Florida College System, particularly in the development of baccalaureate programs,” says Sidor. “Expanding our baccalaureate offerings is a primary strategic focus for the college, and I believe he’ll be a valuable contributor to our efforts.” Wymer most recently served as dean of baccalaureate studies and academic support at Pensacola State College. He received his bachelor’s degree in biology from Shorter University, completed his master’s degree in entomology from Clemson University, and earned his doctorate in environmental science from Tennessee Technological University. L E E S B U R G //
DISPOSE UNWANTED MATERIALS SAFELY TAVARES // Lake County Solid Waste, in partnership with the Lake County Sheriff Office, often provides mobile locations for residents to drop off used or unwanted medications and small quantities of waste products, such as lawn and gardening materials, photo and swimming pool chemicals, paint and related products, cleaning solutions, motor oil and used gas, batteries, fluorescent lamps, light bulbs, and small propane tanks. Those with larger quantities of items to dispose may call 352.343.3776 to arrange a special drop-off day at the Central Solid Waste Facility, 13130 County Landfill Road, Tavares.
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ECONOMIC OUTLOOK FOR LAKE COUNTY’S CITIES S TO R Y T H E R E S A C A M P B E L L / / / P H O TO S F R E D L O P E Z
10 LAKE B US I N E SS MAGAZ I N E.COM
The 2017 fiscal year began Oct. 1 for municipalities, and local city managers have been busy the last few months crunching numbers with their city staffs and elected officials to create effective operating budgets. Below are some indicators of how the cities are doing financially and a look at some of the big money projects. LEESBURG Financially, Leesburg is holding its own, says Leesburg City Manager Al Minner. “Things could always be better and they could be significantly worse,” Minner says, yet he’s pleased that some economic factors are trending toward improvement, such as increases in state shared revenue and the first increase in property values in more than five years. “The creation of the Fire Assessment Fee has provided real opportunity to use reserve cash and create new flexibility to tackle capital projects,” he says. There are more than $1.5 million in capital improvements the city aims to pursue in the new fiscal year, including $560,000 for road resurfacing; $300,000 for road rebuilding at 9th and Dixie; and $100,000 for a median at U.S. Highway 27/Leesburg High School. The city’s proposed budget is little over $153 million, up from $152,142,447 last year. Minner says the city also wants to continue to decrease and maintain a low electric rate, and move forward on second phase of improvements at Venetian Gardens. So what is the biggest budget challenge for Leesburg? “Sustainability,” says Minner. “To ensure that the community is moving forward the most impactful investments, while ensuring that those improvements can be sustained for a long period.” 11 2016 F OU RTH QUARTE R
EUSTIS Eustis has seen an increase in property values, population, building permits, and sales tax revenue, according to city officials. “The city’s overall fiscal health remains strong,” says Eustis City Manager Ron Neibert, who notes Eustis has exercised “fiscal restraint” with expenditures, yet one budget challenge is finding the resources to cover pension and health insurance costs, which have spiked the last few years. The city’s 2017 budget will be a little over $45 million, and top projects include: Eastern Wastewater Treatment plant expansion, $8 million, will provide new development and expand utility service to customers. Lakeview water and wastewater project, $2.5 million, involves replacing cast iron water main, manholes, repaving streets. Replace police vehicles that are more than seven years old, $175,000; purchase of fire pumper truck, $400,000-plus. Construction of new Skate Park in Sunset Island Park. The $500,000 project to be funded through a state grant, penny sales tax, parks and recreation impact fees. City streets’ maintenance/improvements, $400,000. Storm water redesign for Ruleme Street and Ardice Avenue, $300,000. “Eustis will continue efforts to encourage development by implementing businesses-friendly processes and promoting available development sites,” Neibert says. “Developing the former Waterman Hospital property in Downtown Eustis is also a big priority for us.”
TAVARES Tavares City Administrator John Drury is upbeat about the state of economy in America’s Seaplane City, and reports Tavares is doing well on the financial front. “We continue to grow at a steady pace,” he says. “Very good high wage jobs, particularly in the medical field, are being created in our city.” The city’s budget for 2017 is $41 million, and Tavares has some big projects in the works, including a $10 million Public Safety Complex to be built at the corner of Alfred and Caroline streets, which will house Tavares Police Department, Tavares Fire Department, and emergency operations. Funds for the complex come from federal grants and Lake County’s Infrastructure Sales Tax—penny sales tax—that was extended last November by voters to pay for public infrastructure and safety equipment. Tavares expects to receive about $1 million a year from the tax. Drury says Tavares also plans to bury electrical lines downtown, expand the city’s seaplane base by adding recreational boat ramps, pave roads, and add brick pavers on Ruby Street. “Our roads in our older subdivisions need attention,” Drury says. “This is very costly, but we do have a program to address roads every year.” 12 LAKE B US I N E SS MAGAZ I N E.COM
LADY LAKE Town Manager Kristen Kollgaard reports Lady Lake is doing “good” financially. “Our millage rate is being lowered to the roll-back rate of 3.3962,” Kollgaard says for the new fiscal year. Under Florida law, if a local government adopts the rollback rate, it’s not increasing taxes. Lady Lake’s general fund budget for 2017 is nearly $11 million. The biggest budget challenge for Lady Lake? “Maintaining a good level of service to our residents at a low cost,” Kollgaard says, adding her town strives to “continue to bring in commercial development, and do more paving projects.” Lady Lake has budgeted $200,000 to resurface roads. Some additional expenditures budgeted for the new year include: $55,000 for purchase of library books; $208,000 for two marked police vehicles and three marked SUV vehicles; $7,200 for a new scoreboard for Harry Sacks field; $24,000 for replacement playground structure for small children.
MOUNT DORA “Our city’s finances are secure and balanced,” says Mount Dora Mayor Nick Girone. “We are using the same millage rate as we have for the last few years of 5.9970.” City budgets are supported by home values and the values in Mount Dora are “slowly approaching pre-recession values,” says Girone. “Our continuing challenge is to maintain the needs of the citizens to supply the services they want from their government with the funds available to the city,” he says. Girone praised the city personnel’s ability to work at a high level of proficiency and dedication while also “assisting the council to maintain a stable tax rate.” Mount Dora’s 2017 budget addresses the goals of residents and council, and calls for hiring of an economic development director or consulting firm “to get Mount Dora kick-started in the right direction,” says the mayor, along with the need to develop infrastructure for future growth. “We are also planning the construction of water, sewer, etc., to the north and east to address the potential growth that will come with the Wikiva Parkway,” says Girone. Mount Dora’s 2017 budget is $43.8 million. 13 2016 F OU RTH QUARTE R
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ON THE CLOCK? NEW OVERTIME AND WORKER CLASSIFICATION CHANGES GO INTO EFFECT DECEMBER 1ST S TO R Y T H E R E S A C A M P B E L L
A local attorney advises small business owners to take steps to prepare for new overtime and worker classification changes that go into effect Dec. 1 regarding their white-collar, salaried employees. “Most small business owners have no idea that just because you pay someone a salary, and even if it’s a good salary that both of you are happy with today, that doesn’t automatically mean that you are complying with federal law,” says Zachary Broome, a partner of Eustis law firm Bowen & Schroth.
Broome says it’s vital for employers to understand the new Fair Labor Standards Act (FLSA) rules because it will affect how they pay some of their employees. “The increase is doubling and that’s pretty radical,” he says. “There are going to be some people not paying attention to the salary change; they may be caught unware.” The minimum wage salary for professional, executive, administrative employees, including IT technicians and computer engineers, has been raised from $455 a week to $913
16 LAKE B US I N E SS MAGAZ I N E.COM
(annual salary of $47,476). Previously, employees were exempt from overtime pay if their salaries were $23,660 per year, and Broome says there are some small companies staffed with managers who work more than 40 hours and their pay falls under the $913 a week threshold.
“What I see most likely happening is managers at the big-box stores that might be getting paid $40,000 or $45,000 a year, they are going to have to get an increase in their salary,” Broome says. A bump in pay to more than $47,476 would make them exempt from overtime.
“I would recommend any business owner to seriously evaluate whether your employees truly do meet the exemption,” says Broome, who predicts many employers will change their salaried employees to an hourly wage of 40 hours a week at their current pay rate, as long as it’s above the minimum wage. 17
2016 F OU RTH QUARTE R
He says there is no law that employers must pay an exempt employee a salary over hourly. “As an attorney, I tell employers to err on the side of caution,” he says. “If you have someone who might be on the line of being exempt, give him an hourly pay, because as long as you pay them 40 hours a week and they work over, and then you pay overtime at time-and-one-half, then you’re fine.” During a gathering with local small business owners, Broome heard from employers wanting to know how to protect themselves from overtime claims. Broome says a proper time-keeping mechanism is a must, such as employees signing off on a time sheet of their workweek hours. “Sometimes you have to be strict, and employees might think you’re being overbearing or totalitarian about time clocks, but the reality is it’s the only way you can protect yourself,” he says. Scott Bowers, vice president of human resources at LassiterWare in Leesburg, says five to six of his company’s employees will be punching a clock as their jobs are being changed from exempt to nonexempt status. Bowers believes the new FLSA rules will force some companies to increase the cost of their goods and services; others may find they need to reduce their staff. “We have clients in the fast-food business and it’s going to be much tougher for them,” says Bowers, adding some managerial jobs could be split in half, with two managers working 29 hours a piece. Tom Brown, human resources director and chief financial officer at Beacon College in downtown Leesburg, says the new federal rules will be “problematic for a lot of businesses.”
Brown says the college is evaluating the nontraditional hours of its admissions department employees, those who work weekend open houses and evenings with college visitors. “They are not your standard 9-to-5 employees, so that makes it challenging,” Brown says. “What we are doing in anticipation of December 1 is doing some data collection in terms of how many hours they are actually working to see if this is a problem or not.” President Obama gave the Department of Labor the directive to update the FLSA minimum wage and overtime pay protection for white-collar workers, with the goal of reducing wage-and-labor lawsuits. However, Broome predicts litigation to increase. “You’re probably going to see an increase in TV advertisements, ‘Does your employer pay you a salary less than $48,000 a year? If so, come see me.’ And they’re right. It’s pretty open and shut, and that’s why it’s a pretty lucrative business (in legal cases) because there’s not a whole lot of gray area. If someone is not an exempt employee and you’re not paying them overtime, you’ve got a problem,” he says. The attorney noted one of the labor issues in federal courts involves overtime and employees’ work email on their smart phones. “There’s the presumption that they were working after hours, and that work is time they are entitled overtime. So a lot of large companies are making it a punishable offense to put your work email on your phone, even if the employee wants to do it,” Broome says. “The employer is taking the affirmative step and saying ‘you’re not allowed to do this.’”
ACTIONS FOR SMALL BUSINESSES BEFORE DEC. 1:
• Study FLSA exempt and nonexempt status rules. Employees earning more than the new threshold of $47, 476 can be classified as exempt from overtime—if their work is mostly executive or professional. • Evaluate pay, classification of job duties. Make a list of employees who fit the whitecollar exemption and earn less than $47,476 a year. Do their job duties meet the qualifications for exempt? In order to pay employees fairly, make changes based on their roles. • Look over employees’ overtime hours. Can you can pay a 150 percent premium for those hours? Some small businesses may consider reducing the base pay so that straight pay and overtime pay combined, equal last year’s expense. • Communicate changes. Let employees know in advance of changes, and that they’re part of new federal rules.
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IF YOU CAN’T STAND THE HEAT, VENTILATE THE KITCHEN! S TO R Y D E B B I K I D D Y
Keeping a busy commercial kitchen properly ventilated is essential. If you could see inside the kitchens of your favorite restaurants in Lake County, whether it’s The Olive Garden or Red Lobster, you’d see the same name time and time again—CaptiveAire. CaptiveAire has been manufacturing commercial kitchen ventilation systems since 1976. Under the direction of founder and president, Bob Luddy, the company has more than 90 sales offices in the U.S. and Canada and six manufacturing plants, including one in Groveland. Not only is CaptiveAire known as the leading manufacturer in the industry, it was also voted Best in Class Overall under the ventilation systems category for the past 15 years. According to Trevor McLain, plant manager at the Groveland facility, CaptiveAire chose the Lake County town due to demand for products in Florida. Prior to opening, products were shipped here from Oklahoma or North Carolina.
“Florida was in our top three sales states, so it made sense for us. When we ship our hoods, they’re fairly fragile, and it costs a lot to ship them. The cost of damages and shipping were getting high, so it made sense for our customers. Rather than passing that cost on to them, we opened another factory,” says Trevor, who has a degree in physics and a masters in industrial engineering. He was previously an engineer for CaptiveAire at the Oklahoma plant. From the moment you walk into the immaculate facility, you sense employee pride and dedication to quality. To the untrained eye, the process look like a relentless maze, but the complex series of machines creates a well-known product. It begins with the layout department with the selection of metal sheets that are cut into various parts. Next the punch press, a machine from Italy that Trevor calls the “heartbeat of the plant,” cuts the necessary holes for screws, rivets, and bolts, and gener-
ates the parts in flat form. Finally, the metal goes to the machine that bends it to the correct size and shape of the fans or hoods needed. CaptiveAire recently added to their facility, almost doubling its size—from 48,000 to 84,000 square feet, looking toward future increases in business and production. The company takes energy conservation very seriously and constantly encourages customers to meet
20 LAKE B US I N E SS MAGAZ I N E.COM
governmental mandates early. “We’re developing fans that work off sensors and timers rather than manually turning them on and off, as well as regulating speed based on the temperature that’s needed,” Trevor says. Though the Groveland plant was one of the company’s smaller facilities, it has grown to 80 workers on site. “We’re producing about 10 percent of our plant sales, but we’re at one third capacity of the other factories,” Trevor says. “The first year we were doing about five to 10 hoods a day. Last year we averaged around 15 a day, and this year our goal is to get close to 20. Our sales growth this year is 40 percent over last year.” Trevor added that the company feels employees are an investment, and they appreciate the loyalty and dedicated work. Always aware of competitors, CaptiveAire seeks to be a leader in the market. “We have a really short lead time for a high quality product. If you wanted a complete hood system, we could have it for you in five days. That means our customers in binds at the jobsite know they don’t have to plan way ahead,” Trevor says. “They can just call and say, ‘Hey CaptiveAire,
can you give us this right away?’ Our customer service means we can get products to them very fast.” Trevor said he received an email the day before from a customer who needed a fan quickly in Clermont. “I just put it in the back of a truck and ran it over there.” Whether the customer is a contractor or the owner of the company, customer service is of prime importance to all employees at CaptiveAire. For ease of purchase, you can even buy
the equipment on Amazon.com. CaptiveAire’s employees enjoy giving back to the community. Trevor teaches welding at Lake Tech and has also hired graduates from their program at the plant. “What I like most about working for CaptiveAire is the challenge,” Trevor says. “With our low leadtimes and high quality, each day presents a new set of challenges. It keeps you on your toes and the day definitely goes by quickly. “ 21
2016 F OU RTH QUARTE R
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