RFP Movable License Proposal for Kayak/SUP Rentals and Instruction on Port San Luis Harbor District Property

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1 RFP Movable License Proposal for Kayak/SUP Rentals and Instruction on Port San Luis Harbor District Property Momentum Paddle Sports Inc. DBA: Central Coast Kayaks; Prokayakfishing.com Tom Reilly President 1879 Shell Beach Rd Pismo Beach CA (805) October 3, 2016

2 Table Of Contents 1.0 Business Statement 1.1 Mission Statement Business Plan 2.1 Executive Summary Management Goals and Objectives The Target Market Marketing Plan Pricing Strategy The competition Estimated Revenue and Costs Experience 3.1 Owners Staff Equipment References Certification of Signer Statement of Acceptance 12

3 1.1 Business Statement Our Passion, Our Mission As long-time residents of the Central Coast and lifelong outdoor & watersport enthusiasts, we strive to share our love of the ocean and the surrounding area with our guests. We are fortunate to be surrounded by some of the most pristine coastline and incredible sea life in the State. We want to inspire and help people to get outdoors and experience the natural beauty of the world around them. Paddle. Explore. Discover. Our Business, Our Philosophy Central Coast Kayaks has been a fixture in Shell Beach since Offering locals and area visitors the opportunity to learn, explore, discover, and embrace life s adventures. Providing our guests with a positive experience is our priority, leaving our guests with a passion to continue their exploration and adventure in their own life is our ultimate dream. Being a close-knit, local business, we believe that our customers are of utmost importance and our employees are family. Our employees are our backbone and our connection to the customer. Aligning ourselves with likeminded, passionate, and adventure-seeking employees gives you, the customer, an enjoyable and unforgettable paddling experience. The diversity of coastline from Pismo Beach to Port San Luis provides paddlers a wide array of opportunities to get on the water. We look forward to helping people discover the beautiful Central Coast.

4 2.0 Business Plan Momentum Paddle Sports, Inc Shell Beach Road, Pismo Beach California Executive Summary Momentum Paddle Sports, Inc. (MPS) is the parent company of Central Coast Kayaks and PRO Kayak Fishing. Tom Reilly of Nipomo, CA and Eric Tebbets of Los Osos, CA are the owners of Momentum Paddle Sports Inc. Originally, Tom Reilly and Eric Tebbets started prokayakfishing.com as a partnership in the summer of PRO Kayak Fishing (PKF) is an online retail store specializing in the sale of kayaks and kayak fishing accessories. The focus is to provide an outlet for the latest kayaks and accessories in the kayak fishing market. In early 2016, Tom and Eric purchased Central Coast Kayaks (CCK) from the original owner, Paul Schiro. Central Coast Kayaks has been a successful business in Pismo Beach, CA since 1993, offering kayak rentals, tours, classes, and retail. CCK is located at 1879 Shell Beach Road, Pismo Beach, CA Tom worked at CCK for over 8 years as Lead Instructor and guide. With the purchase of Central Coast Kayaks and merging it with the online component of PRO Kayak Fishing, Momentum Paddle Sports, Inc. was born. The company is now a full service, multifaceted entity offering kayak and Stand Up Paddle board (SUP) rentals, tours, sales, repairs, guided fishing trips, and instruction with a focus on expanding recreational activities and instruction to the residents and visitors of San Luis Obispo County.

5 2.2 The Management The company is structured as a S-corporation. Tom Reilly is the President and CEO of Momentum Paddle Sports, Inc. He handles the day-to-day operations at the company s physical location, Central Coast Kayaks. Along with running the brick and mortar shop he also manages the companies employees, training, scheduling, and designs the business s tours and classes. He is the lead guide and instructor for the stores customers and for employee training. He worked for Central Coast Kayaks and helped to run the rental operations at Avila and Old Port Beach from Eric Tebbets is the Vice-President and COO of Momentum Paddle Sports, Inc. He handles the back-end of the business including purchasing and marketing of Central Coast Kayaks and PRO Kayak Fishing. He also runs and manages the businesses online store component, prokayakfishing.com. 2.3 The Goals and Objectives Momentum Paddle Sports, Inc. is a full service paddle sports company offering kayak and standup paddle board (SUP) rentals, tours, instructional classes, repair, and retail sales of kayaks, boards, and paddle sports gear and accessories. It also has American Canoe Association trained and Certified guides, instructors and California Fish and Wildlife licensed fishing guides. As long-time residents of the Central Coast and lifelong outdoor & watersport enthusiasts, we strive to share our love of the ocean and the surrounding area with our guests. We are fortunate to be surrounded by some of the most pristine coastline and incredible sea life in the State. We want to inspire and help people to get outdoors and experience the natural beauty of the world around them. With our location in Pismo Beach we primarily operate in the open ocean below the bluffs along Shell Beach. While this area offers fantastic views and an incredible paddling experience for our customers, it does have limitations. Because we operate in unprotected waters we are limited to fair weather days. The wind and swell can hamper our operation and shut us down completely at times.

6 Rentals and tours are the bulk of our business revenue and we would like to expand into Port San Luis because of the protection from the swell and often the wind. Port San Luis offers a great location for new paddlers such as kids, and families to engage in water sports. Momentum Paddle Sports Inc. has the skills and abilities to greater serve this area and provide increased opportunities to the public while at the same time generating revenue for both the company and the Port District. 2.4 The Target Market Our company offers outdoor recreational opportunities and equipment for local residents and for visitors who come to enjoy our beautiful weather and scenery. We offer a wide range of activities with rentals and tours that are perfect for all ages and experience levels. Port San Luis can provide paddlers with a semi protected area to get out on the water in kayaks and SUPs whether on their own during a rental or focused on skill building in a class. 2.5 Marketing Plan Our company offers outdoor recreational opportunities and equipment for local residents and for visitors who come to enjoy our beautiful weather and scenery. We offer a wide range of activities with rentals and tours that are perfect for all ages and experience levels. Our tours have been active for years and consistently sell out, especially over the summer months during tourist season. We have many customers that return year after year to go on our cave tours and to rent gear from us to explore the coastline on their own. We have 5 star ratings on both Yelp and Trip Advisor with over 250 reviews combined. According to Trip Advisor, we have the #1 rated tour for the Pismo Beach area.

7 We are proud to offer competitive pricing on our services and merchandise. We base our tour and rental prices on the uniqueness of our tours and on the existing prices of the other paddle sport rental and tour companies in the area. Our retail prices are based on MSRP and MAP pricing dictated by our vendors. Momentum Paddle Sports, Inc. uses a variety of marketing and advertising strategies. Much of the company s customers come from review sites such as Yelp and Trip Advisor along with referrals from long standing relationships with other local businesses within the hospitality industry. The company also receives referrals from partnerships with several charities and organizations that they work with. These charities and organizations include Heroes on the Water (HOW), AMP Surf, Cal Poly Adaptive Paddling, and a number of community and youth groups. Along with the local relationships they foster, we also utilize social media and trade organizations to not only bring attention to the business but to the entire Central Coast region. In addition to the company officers, Momentum Paddle Sports, Inc. has several employees. These include a full-time store manager at Central Coast Kayaks and several part-time employees. During the off peak season MPS, Inc. generally has 4-5 part-time employees. During the peak season MPS, Inc. has part-time employees. Our goal is to have the permits and equipment to begin this operation in the Spring of Momentum Paddle Sports, Inc. has their own fleet of rental/tour kayaks and SUP's (standup paddle boards) along with trailers and vehicles to move them from one location to another.

8 2.6 Pricing Strategy We are proud to offer competitive pricing on our services and merchandise. We base our tour and rental prices on the uniqueness of our tours and on the existing prices of the other paddle sport rental and tour companies in the area. Our retail prices are based on MSRP and MAP pricing dictated by our vendors. 2.7 The Competitors Competition is a natural and healthy part of business. Operating primarily in Pismo Beach, CA. is Pismo Beach Surf/Dive Shop. In Port San Luis our competition is Avila Beach Paddlesports (Avila). Tom has worked with Vince Shay at Central Coast Kayaks as a guide and staff members and has a positive working relationship with him and Avila Beach Paddle Sports. In Morro Bay, Central Coast Outdoors (Los Osos), Kayak Horizons (Morro Bay), Kayak Shack (Morro Bay), and Sub Sea Tours (Morro Bay) have rental operations. 2.8 Estimated Revenue and Costs Coastal dependent activities will be conducted at Old Port Beach and Fisherman s Beach in Port San Luis. Hours of Operations: (Based on weather conditions) Winter (Dec-Feb) Spring (Mar-May) Weekends 9-3pm 4 days/week 9-4pm Summer (Memorial day-labor Day) 7days/week 9-4:30 Fall (Sept-Nov) 4 days/week 9am-4pm

9 Year 1 Income Expenses Rentals $10000 $5000 Tours $12000 $4000 Classes $5000 $3000 Other $2500 $1000 Year 2 Income Expenses Rentals $13000 $6000 Tours $14000 $6000 Classes $6500 $3000 Other $3500 $1000 Year 3 Income Expenses Rentals $15000 $6500 Tours $16000 $7000 Classes $7500 $3500 Other $4500 $1500 These projections are based on previous income reported from Central Coast Kayaks; Extended from Shell Beach rentals and tours; and improved location for classes. The Other category would include special events such as paddle sports symposiums, instructor develop course and product demo days. Yearly increases would come from increased marketing and visibility of operations at the Port.

10 Tours would include: Naturalist lead tours, Guided fishing tours, Light house tours, and advanced open water tours Rentals: Both single and double sit on top kayaks that include; kayak, paddle, lifejacket, helmet and basic on-land instruction Classes: Basic sit on top kayaking, Sea Kayak basic to advanced Level 1 and Level 2 SUP flatwater Other: This would include youth school break and summer ocean adventure programs, Local and National symposiums and instructor development workshops 3.0 Experience 3.1 Owners Tom Reilly (shareholder): Tom is the primary guide and instructor for MPS, Inc. He has been paddling kayaks for over 25 years and has sought out the highest level of instruction in the paddle sports industry. He previously worked at Central Coast Kayaks under Paul Schiro for eight years and helped to develop instructional programs, and increase class use of Port San Luis. He is a Level 5 Coastal Kayaking instructor with the American Canoe Association (ACA) and a 4 star Sea Kayak Paddler with the British Canoe Union (BCU). He is a SUP (stand up paddle board) Level 2 instructor and a Surf Kayaking Instructor Trainer (IT). He has over 16 years teaching Adapted Paddling for people with physical disabilities and has taught all over the country with an Adapted Paddling instructor endorsement.

11 Tom, works closely with the Cal Poly Adapted Paddling Program at Cal Poly. He was awarded the Paul Wolffe Accessibility award in 2012 and presented at the 2013 National Paddle Sports Conference on Adaptive paddling. Tom is a California Department of Fish and Wildlife licensed fishing guide. He is also the lead Safety coordinator and instructor for the local chapter of Heroes on the Water (HOW), a non-profit organization focused on healing disabled Veterans through kayak fishing. Tom has also helped organize the annual Ken Harmount Pier to Pier paddle that helps raise money for the Junior Lifeguard program of San Luis Obispo County. This event draws close to 100 paddlers each year and people paddle from Old Port Beach in Avila to the south side of Pismo pier in Pismo Beach. Tom is committed to the helping expand paddling in our community and to bring more people to the area to experience what it has to offer. Eric Tebbets (shareholder): Eric is currently a Fire Captain and 20 year veteran with Cal-Fire here in San Luis Obispo County. He is a licensed EMT in good standing with the State of California. Primarily working behind the scenes within MPS, Inc. he handles most of the back-end work of the business. Eric is a nationally sponsored kayak fisherman, a volunteer with Heroes on the Water(HOW) and is the founder/director of the annual charity fishing tournament, The Estero Kayak Challenge. He is also in the process of obtaining his fishing guide license from the Department of Fish and Wildlife. Eric s passion for the water stems from growing up on the Central Coast and understanding the value of our region.

12 3.2 Staff John Bonaventure-Lead Guide has been paddling for over 25 years and was the Coach for the USA West world surf kayaking team in He has guided for Central Coast Kayaks for over 11 years. Brent Beltramo-Lead Guide has paddled for over 20 years on and off for Central Coast Kayaks. He was also a rescue swimmer for the USCG and deep water commercial diver. Kelsie Jarratt-Shop Manager and guide has supported Central Coast Kayaks on and off the water for over 3 years. Kelsie manages the shop and oversees reservation and rentals for Momentum Paddle Sports inc. She was a NCAA Pole Vaulter and currently paddles for Pali Kai outriggers. During the summer months we employ close to 13 part-time employees. All of our staff is CPR and Standard First Aid Certified. Our lead guides and instructors are either certified or trained to American Canoe Association standards for Coastal Kayaking Level 4 and SUP level Equipment Momentum Paddle Sports, Inc. has their own fleet of rental/tour kayaks and SUP's (standup paddle boards) along with trailers and vehicles to move them from one location to another. We use both sit on top kayaks for our rentals and tours and offer traditional sea kayaks for many of our classes. Our SUP boards are both soft topped and rigid boards for performance and safety. We require all of our clients to wear USCG approved lifejackets while using our paddling crafts and leashes on our SUPs. Our staff provides a basic lesson for free before every rental so clients can be familiar with the equipment, where to paddle and how to get back on if they fall off.

13

14 4.0 References 1. Paul M Schiro (Past Owner of Central Coast Kayaks) (805) Colleen Ghiglia (Recreation Director City of Pismo Beach ) (805) Mattie Rd Pismo Beach, CA Sean Morely (Past Manager of Instruction at California Canoe and Kayak ) (415)

15 5.0 Certification of Signer 5.1 Articles of Incorporation See Attached. 6.0 Statement of Acceptance Momentum Paddle Sports Inc. accepts the language and provisions of the Monthly Revocable License Agreement.

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