3304:1-21-03 Facility announcements, application procedure, and selection.

(A) Vacant facilities shall be posted except as set forth in paragraph (K) of rule 3304:1-21-03 of the Administrative Code. If there is no qualified applicant for the facility posting BE through active participation with OVRC will determine if the vacant facility shall be reposted. The facility announcement shall be posted no less than thirty calendar days.

(B) The facility announcement shall include the following:

(1) The name, address, and number of the facility;

(2) Whether the facility is on state, federal, or private property, and if on state property that the operator must comply with sections 3304.29 to 3304.35 of the Revised Code and paragraph (A) of rule 3304:1-21-04 of the Administrative Code;

(3) Closing date and time on which the application and supporting documents must be received by the designated bureau representative;

(4) The estimated starting date for the new operator;

(5) A description of the facility with:

(a) An estimate of the number of customers served each day;

(b) Seating capacity;

(c) The types of food services the facility provides, e.g., carry-out, vending, cafeteria, or other;

(d) Equipment;

(e) Items stocked for sale;

(f) Opening day cash recommendation;

(g) Approximate initial inventory amount;

(h) Information about whether space, if any, is available at the facility for inventory storage or if the operator must provide off-site storage and product transport;

(i) The yearly total receipts and net proceeds, for up to three preceding fiscal years as records allow, or for a new facility, the projected yearly total receipts and net proceeds;

(j) Reasons for fluctuation in proceeds, if known;

(k) The days and hours of operation;

(l) The number of employees presently employed, with notation that persons who are blind or otherwise disabled and are qualified for the job shall be given preference when hiring in any BE facility;

(m) Available public transportation;

(n) Projected changes in the facility (e.g., relocation and remodeling);

(o) Any special training, physical requirements, and mobility skills required for the job;

(p) The location, type, and level of competing food service;

(q) BE designee, tour availability and special requirements;

(r) Fees, assessments, financial obligations, and other specific items required by the BGA;

(s) Security clearances required by the BGA;

(C) In order to be considered an eligible applicant, licensees who apply for the available facility must:

(1) Submit a completed application which states the applicant's name, business address, telephone number, current facility, if any, facility desired and all supporting documents using the form prescribed by BE which must be received at the specified location by the date and time specified in the facility announcement;

(2) Submit for verification the following supporting documents:

(a) Copy of current state of Ohio vendors license issued by the Ohio department of taxation;

(b) If applicable, a copy of the worker's compensation certificate verifying payments are current as of the facility announcement posting date;

(3) Have operated their current facility for at least one hundred twenty days, if the applicant has a permanent facility at the time of application;

(4) Have no past due program charges in Ohio or any other state's Randolph Sheppard program or grantor required payments as of the application deadline date.

(D) If the selection panel by majority vote determines that an applicant attempts to obtain a facility through fraud, falsification, or criminal activity the applicant shall be removed from consideration.

(E) A selection panel shall consist of the:

(1) BE program manager or designee as selection panel chair;

(2) OVRC representative and alternate for the area of the vacant facility unless the OVRC representative or alternate is an applicant for the vacant facility, or declines to serve. A member of the selection panel who has a personal interest or conflict of interest in relation to the facility or applicants, direct or indirect, shall voluntarily withdraw from the selection panel. In such case the OVRC chair or the OVRC chair's designee will participate.

(F) When there is more than one eligible applicant the selection panel will award the facility to the candidate that accumulates the most points assigned by the majority vote of the selection panel members for each of the following criteria:

(1) Applicant is a licensee, then apply the default score of nine points;

(2) Applicant was/is an operator for less than twelve months in the past twenty-four months prior to the application deadline, then apply the default score of ten points;

(3) Applicant has been an operator for twelve months or more in the past twenty-four months and has:

(a) No late reports, inventories, or payments, in the most recent twelve months of the past twenty-four months prior to the application deadline, then apply four points; or

(i) No more than one late report, inventory, or payment, in the most recent twelve months of the past twenty-four months prior to the application deadline, then apply two points.

(4) Applicant had a plan of corrective action in the twenty-four months prior to the application deadline, then apply minus two points;

(5) Applicant file demonstrates a pattern of customer or grantor complaints in the last three years, then apply minus four points;

(6) Applicant has supplied the selection panel a copy of their current safety and sanitation certificate, then apply one point;

(7) Applicant has supplied the selection panel a copy of their current CPR/first aid certificate, then apply one point;

(8) Applicant has supplied the selection panel documentation demonstrating attendance at an in-service training in the twenty-four months prior to the application deadline, then apply one point for each with a maximum of two points;

(9) Applicant has supplied the selection panel verified documentation of a college degree or five years experience in business management, then apply one point;

(10) Applicant during their career has managed a facility for a minimum of one year with the same service format (i.e. vending, cafeteria, counter, or combination), then apply three points;

(11) Applicant has job description on file with BE or has no employees, then apply one point;

(12) Applicant has written cleaning schedule in current location, then apply one point;

(13) Applicant has supplied the selection panel documentation for current marketing strategy implemented within two years prior to the application deadline, then apply one point;

(14) Applicant meets or exceeds gross profit goal percentage in the most recent twelve months of the past twenty-four months prior to the application deadline, then apply one point;

(15) Applicant meets or exceeds net profit goal percentage in the most recent twelve months of the past twenty-four months prior to the application deadline, then apply one point.

(G) In case of a tie in point totals the selection panel will further evaluate the tied applicants by using criteria in paragraph (F)(3) of this rule looking back in one year increments for each of the tied applicants adding additional points for each year the criteria is met until the tie is broken or a maximum of three years have been evaluated. In the event a tied applicant's record is not comprised of three additional years the facility will be awarded to the applicant with the longest record that generates the most additional points. If after the additional three year evaluation there is still a tie, the selection panel chair shall draw lots to determine the selected operator.

(H) If by majority vote the selection panel determines that none of the applicants meet the requirements of paragraph (C) of this rule, a determination for reposting the vacant facility shall be made per paragraph (A) of this rule.

(I) If the successful applicant declines the facility then the next applicant with the most total points shall be offered the facility. Ties shall be broken as listed in paragraph (G) of this rule.

(J) Successful applicants who decline the facility after the award offer shall not be an eligible candidate for any operator openings for one hundred twenty calendar days. If the awarded facility is a new or temporarily closed facility in which the actual opening has been delayed more than thirty calendar days from the opening date stated in the facility announcement this penalty shall not apply.

(K) BE may enter into a BTOA for up to twelve months to ensure the continued operation of a vacant facility or to establish reliable sales data. Any extension beyond twelve months requires the active participation of the OVRC. The BTOA shall:

(1) State the duties of the operator as defined in the BTOA;

(2) State that the temporary operator shall not take leave without approval of BE;

(3) State that prices shall not be altered by the temporary operator without the consent and/or direction of BE;

(4) State that the agreement may be terminated immediately without cause upon written notice of either party.

(L) Temporary facility assignments shall be offered to displaced operators based on length of time displaced and if no displaced operators accept the assignment, then to licensees with the least income. For purposes of this rule, "least income" shall be determined by adding the operator's net proceeds from all BE facilities as reflected on the operator's MOR for the previous twelve months. Ties in least income shall be broken based on seniority. If there is still a tie the BE designee shall draw lots to determine the selected operator. All offers shall be for net proceeds basis first then offered on a fee basis.

(M) In situations where there is a possibility of the loss of a facility or sales figures need to be established or re-established, an exception to the displaced operator/low-income priority may be made by BE, with the active participation of the OVRC.

(N) Operators/licensees are not eligible for temporary facility assignments if they:

(1) Have past due program/grantor debt; or

(2) Have submitted three or more late reports and/or payments in the previous twelve months; or

(3) Have pending discipline; or

(4) Have been removed from a facility according to paragraphs (C)(1), (C)(2), (C)(4) and (D) of rule 3304:1-21-09 or rule 3304:1-21-13 of the Administrative Code in the previous twelve months of the date on which the temporary assignment is offered; or

(5) Are on a plan of corrective action.

(O) BE will maintain and update the licensee seniority list quarterly.

Replaces: 3304:1-21-03

Effective: 01/01/2010
R.C. 119.032 review dates: 11/19/2014
Promulgated Under: 119.03
Statutory Authority: 3304.29(D)
Rule Amplifies: 3304.28 , 3304.34
Prior Effective Dates: 3/21/79, 5/1/83, 1/12/90, 11/1/93, 10/4/99, 10/1/06