THE CRAZY PELICAN OYSTER BAR & GRILL - PROPOSAL FOR - Port San Luis Harbor District
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PROPOSAL FOR
THE CRAZY PELICAN
OYSTER BAR & GRILL
At
TRAILER BOAT LAUNCH BUILDING
PORT SAN LUIS HARBOR DISTRICT
SUBMITTED BY: Edward (Butch) and Barbara Powers
DBA: The Crazy Pelican Oyster Bar & Grill
PO Box 368
Avila Beach, CA 93424
(805) 801-0751, (805) 541-3474 (fish)
oldeportfish1@outlook.com
JULY 24, 2018
1
INTRODUCTION
As the Proposers, we are pleased with the opportunity Port San Luis
Harbor District (PSLHD) has extended by providing an invitation to submit a
Request for Proposal for a Retail Market, Deli, and/or Other Related
Retail Services at the Trailer Boat Launch Building.
The Proposers, Edward (Butch) and Barbara Powers, are the current
owners of the businesses known as Olde Port Fish & Seafood Company,
Inc. and The Treasure Chest at the end of Harford Pier on District property.
This RFP provides a unique opportunity for us to “think-outside-the-
preverbal box” and create a business plan for an Oyster Bar & Grill.
This plan creates a new idea for a business that has NEVER before
existed at the Trailer Boat Launch Building.
Our business plan satisfies our local coastal related and visitor
serving requirements. It also satisfies coastal dependent because we
will buy crabs and other seafood from our local commercial fishermen
as well as shellfish farms.
In this proposal, we will show how our business model will be financially
feasible by minimizing start-up costs and monthly operational costs which
maximizes more customer seating, with a fast table-turnover.
More customers = more monthly rent to the Harbor District.
Thank You,
Edward (Butch) and Barbara Powers
Respectively submitted on July 24, 2018
2
TABLE OF CONTENTS
Proposal Summary 5
1. Mission Statement 5
2. Discussion of our response process to this RFP 6
3. Proposer Goals 9
4. Summary of Relevant Experience, Knowledge and Expertise 9
5. Summary of Tenant Improvement Plan 11
6. Summary of Start-Up Plan 12
7. Summary of Operation Plan 12
8. Summary of Maintenance Plan 12
Proposer Information 13
1. Principals 13
2. Financial 13
3. Experience 14
a. Resume: Barbara Powers 15
b. Resume: Edward (Butch) Powers 16
c. References 16
Proposal Information Detailed 17
1. Tenant Improvement Plan 17
2. Start-Up Plan 22
3. Operation Plan 25
a. Type of Service 25
b. Business Ambiance Plan 26
c. Organizational Structure 26
d. Marketing and Advertising 28
e. Conservation and Recycling 28
3
f. Accessibility Plan 29
4. Maintenance Plan 29
5. Rental Guarantee Offer 30
6. Feasibility 30
a. Estimated Cost for Tenant Improvements 31
b. Estimated Cost for Start-Up Expenses 31
c. Estimate of Equity and Debt Requirements 31
d. Lease Agreement Term 32
e. Pro forma Projection 32
7. Acceptance of Lease Agreement Terms and Conditions 32
Certification of Proposer Information 34
1. Labor Law Compliance Certification 34
2. Prosper Certification 34
3. Authorized to Release Information 37
ATTACHMENTS
Attachment 1: Sample Menu 39
Preliminary Floor Plans – Depicting Inside
Attachment 2: 41
Measurements
Attachment 3: Preliminary Floor Plan – Equipment Placement 42
Attachment 4: Pro Forma 2019 - 2033 43
4
PROPOSAL FOR THE TRAILER BOAT LAUNCH BUILDING LEASE SITE
PROPOSAL SUMMARY
1. Mission Statement
2. Discussion about our response to this RFP
3. Proposer Goals
4. Summary of Relevant Experience, Knowledge and Expertise
5. Summary of Tenant Improvement Plan
6. Summary of Start-Up Plan
7. Summary of Operation Plan
8. Summary of Maintenance Plan
1. MISSION STATEMENT
The fundamental mission of The Crazy Pelican Oyster Bar & Grill is to
procure and offer to the public popular shellfish both locally caught
species from Port San Luis Harbor fishermen and from other west coast
sources from Alaska to Mexico. The Proposers strive to obtain
sustainable and responsibly caught or responsibly farmed seafood from
commercial fishermen and seafood farmers.
The Proposers secondary mission of The Crazy Pelican Oyster Bar &
Grill is to provide a clear and precise shellfish experience for all District
visitors to this establishment.
2. DISCUSSION ABOUT OUR RESPONSE TO THIS RFP
To begin this discussion, the intention is to show the readers of this RPF
the proposer’s thinking process in coming up with a viable business
plan. The RFP states (page 15, section II. Proposal Information, third
sentence) to “submit additional information to enhance your proposal”.
The Proposers do this so the reader can get a full picture and keep
clarity to this RFP. The intent is not to supply more information than
requested or needed.
5
The District RFP states using this space as a “Market/Deli, and/or Other
Related Retail Services,” (although “other related retail services” is
subjective), the Proposers are convinced the market/deli WILL NOT be a
financially feasible venture for that type of business long term.
The main reason for this opinion is the fact that Red Tail campgrounds
will most likely create and build out their own store for groceries/deli,
beer/wine, camping/RV supplies, take-out food/café/coffee shop and gift
shop at the new site on the 26 acres.
At Red Tail’s sister location in Buellton, California (Flying Flags RV
Resort & Campground), they have all of this. For RedTail to finance this
camping facility, this is a necessary “value-add” so they can help make
their project financially feasible – even if they compete with other
lessees within the District.
Due to this probable competition, the Proposers thought outside “the
box” and come up with a new idea to lessen competition in an already
TIGHT market – mostly due to finite parking which limits customer
patronage.
When this RFP was announced by the District, the Proposers began
“brainstorming” ideas to create a business with a fresh and updated
concept and still offer products patrons would expect to find at a working
harbor or waterfront.
There are concerns because the Proposers have been around this
building and businesses on and off since 1978 and have seen and
experienced the proverbial “roller-coaster ride” unique to this harbor.
6
Other concerns include:
Is this geographical space financially feasible?
Some past tenants have had negative issues with retail at this
location because when parking is limited, it is not human nature to
work hard to find a parking spot.
Traffic flow at times is questionable as to allow car movement that
creates confusion for visitor parking – especially in peak season.
Flooding in winter months from high tide storm surge is known to be
a risk factor. It causes business closures and additional flood
associated costs. Insurance premiums could be much higher.
Visitors come to purchase specific products common to harbor or
waterfronts. Hopefully, they will find that parking space to eat
oysters and visit other lessee businesses.
Signage (District’s restrictions to signage) is a problem that needs
to be addressed to seek a solution and maybe change a District
ordinance.
How to maximize parking availability?
Currently there are small number of pedestrians, hikers and
bicyclists from the existing District camping that helps to minimize
parking.
RedTail may help alleviate parking in some way in the future by
possibly providing a shuttle type of service.
The two existing tenants are in this building. One is renting kayaks
and has retail sales. The other is launching boats and has retail
sales. Each has a large customer base with parking needs. A
boat-trailer/truck take up two spaces each.
Paddle Sports hours: 9 am – 5 pm daily (weather permitting)
Boat Launch hours: 6 am – 4 pm daily (weather permitting)
The Proposers seek to NOT have the same operating hours as
much as possible hoping to minimize parking demand especially in
7
How to maximize parking availability?
peak months.
The Proposers envision hours to be 12 pm – 8 pm daily (or as
weather permitting) when there is more available spaces.
What coastal related and visitor-serving Business Model can survive
this location with its “seasonal roller-coaster” nature of commerce at
Port San Luis?
This location will be seasonal like the other two coastal related
businesses in this same building.
The seasonal nature lends itself to this business model of
GRILLING on an outside patio area.
This will not be a restaurant in the sense that it is projected having
year around cooking facilities.
The Proposers do not wish to compete with the other three
restaurant facilities now existing at Port San Luis Harbor.
The allotted interior useable space as listed on RFP is actually
smaller than issued drawing making it a “hole-in-the-wall”.
Costs are reduced by the simplicity of the business plan. The
Proposers are able to keep opening and operational overhead
costs lower because the Proposers can store products at the other
owned Port San Luis Harbor businesses as well as off-site.
The Proposers are experienced in the fish and seafood industry on
many levels.
8
3. PROPOSER’S GOALS
The Crazy Pelican Oyster Bar & Grill will be guided by the above
mission statement and will continue to do so along with this proposed
business” if successful in being awarded this new lease. Additionally,
the Proposers will continue to support the District’s goals and objectives.
These are:
a) To create a unique business model that NEVER has before existed
at the Boat Launch Building at Port San Luis.
b) Strive to meet the Coastal Act Priorities and Coastal Dependent
Uses. To assure public accessibility to coastal dependent, coastal
related, and visitor serving uses conforming to the San Luis Obispo
General Plan (San Luis Bay Coastal Area Plan).
c) Strive to meet the District’s Master Plan guidelines.
d) Satisfy visitor-serving needs as discussed in the District’s Master
Plan.
e) Be a profitable enterprise.
f) Maximize rental income to PSLHD.
g) Procure fresh, responsibly caught product from Commercial
Fishermen and other fish vendors.
h) Procure fresh, sustainably farmed product from licensed seafood
farmers from San Diego, Santa Barbara, Morro Bay, CA and up the
west coast to Alaska.
4. SUMMARY OF RELEVANT EXPERIENCE, KNOWLEDGE AND EXPERTISE
As the proposers, Butch and Barbara Powers, have a shared/combined
number of 70+ experienced years being part of the vast number of
working members from the unique community of Port San Luis.
9The Proposers are community-minded people that have been involved
in development of the District throughout the years. Since 1978, their
experience at Port San Luis has ranged from being owners/operators of
several retail businesses to owners/operators of fishing boats involved in
various commercial fisheries.
Currently, both Proposers have continuous retail experience since 2013
owning and operating The Treasure Chest business. In addition, they
are the current owners of local fish businesses of which there are two
“brick and mortar” locations and three Farmer Market locations.
The Proposers most recent relevant experience is the relocation of the
Arroyo Grande retail fish market to the new Grover Beach retail fish
market on May 11, 2018. The new location’s 2,200 square foot interior
was remodeled into a new retail fish market. The Proposers worked with
City of Grover Beach and San Luis Obispo County Health Departments
with the permit process. The space is nautically decorated and has
many delighted customers. It is clean, fresh and pleasant. It has a
great assortment of fish displayed in a nice showcase.
105. SUMMARY OF TENANT IMPROVEMENT PLANS
For The Crazy Pelican Oyster Bar & Grill, the Proposers envision the
allotted 1,064 square foot empty shell and will transform it into an
updated compact, “hole-in-the-wall” oyster bar & grill (and more). The
actual site itself is close to move-in-ready. For the Proposer’s purposes,
the opening costs will be lower because we already have much of the
needed equipment.
The Proposer’s business model will be kept simple and minimal yet
deliver a powerful opportunity to operate efficiently monthly because of
the ability to easily access The Proposers other fish market business
resources. The Proposers will be able to use a walk-in refrigerated
cooler located off-site. This allows the storage for a few hundred dozen
oysters. Utilizing the off-site refrigerated cooler will save money on
monthly electricity charges. Additionally, it frees up space otherwise
11needed to install a minimum of 10’x10’ refer with condenser/machinery.
This saved space allows for eating area.
The Proposers will beautify the interior with a flowing floor plan and add
a bar top with stools. The Proposers will make these upgrades while
keeping the rustic, historical character of Port San Luis surroundings.
6. SUMMARY OF START-UP PLAN
The Crazy Pelican Oyster Bar & Grill plans to start operation within 90
days of lease being finalized.
After lease approval, The Crazy Pelican Oyster Bar & Grill will secure
final drawings and all finalized build-out plans. The plans will be
submitted for approvals from various agencies such as the building
department, SLO Health Department.
The detailed start-up plan will describe the interior surrounds and
improvements.
7. SUMMARY OF THE OPERATION PLAN
This plan will streamline and make operating the business more
efficient. By keeping operations simple, the Proposers can economize
on space and cost constraints while achieving the opportunity to
promote higher sales volume.
All this will be discussed in Detailed Operational Plan (page 25). It lists
the type of service and directs the reader to the sample menu plan.
8. SUMMARY OF MAINTENANCE PLAN
Routine checks of exterior surrounds will be conducted to check for
trash or other debris. Birds create messes including feathers and will be
cleaned up. The Proposers will follow guidelines to maintenance
requirements in the lease.
12THIS CONCLUDES THE PROPOSAL SUMMARY SECTION. PLEASE
SEE A MORE DETAILED DESCRIPTION LATER ON UNDER THE
PROPOSAL INFO PLANS.
13PROPOSER INFORMATION
Per the District’s request, the following Proposer information is provided:
a. Principals
b. Financial
c. Experience
a. Principals
1) Edward (Butch) and Barbara Powers will be the principals as
sole proprietors.
2) Description of the proposed development entity is:
The Crazy Pelican Oyster Bar & Grill
b. Financial
The following documents were separately addressed & submitted to
Phil Sexton, District Accountant.
1) Balance and income statements for partners for 2016 and 2017
2) Tax Returns - Submitted to Phil Sexton, District CPA are:
i. Corporate Tax Return 2017 – Olde Port Fish & Seafood
Company, Inc.
ii. Personal Tax Returns for 2016, 2017
3) Lending Institution Information
i. Prior business relationships with the general/operating
partners
The Proposers are husband and wife and have
conducted business together for over 30 years.
ii. Credit facility available to the general/operating partners
The Proposers are self-funded
14 The Proposers have strong credit scores and have
access to credit if needed.
iii. List of any defaulted loans
None – not ever
iv. List of any loans that are subject to forbearance
agreements, etc.
None – not ever
4) Litigation History Over the Past 10 Years
None – not ever
5) Financial References
i. Leann Liscomb, Infinity Accountancy Group
1108 E Grand Avenue, Arroyo Grande, CA 93420; 805-481-2280
ii. Bruce Ekmanian, CPA, Ekmanian Tax and Accounting
404 Branch Street, Arroyo Grande, CA 93420; 805-556-4512
c. Experience
As mentioned in the summary of relevant experience section, the
Proposers have a combined 70+ years of experience. The Proposers
experience as it relates to the proposed The Crazy Pelican Oyster Bar &
Grill is varied. To operate an entity such as this, it requires many years
of experience to be successful. This includes retail experience to the
general public, knowledge of bookkeeping systems, inventory control,
ordering product, cashiering, banking, knowledge of fisheries and
fishing, and operating or deck-handing on fishing boats.
The next two pagers are the Proposer’s resumes:
15BARBARA POWERS
1) Bachelor of Science, Cal Poly – San Luis Obispo (1978)
2) California General Building Contractor “B” classification -
License # 762789 (1999 - present)
3) Several years as Concessionaire PSLHD, dba as:
4) Port San Luis Marine Supply (1978-1996)
a. Retail sales of marine hardware, boat supplies and
equipment
5) Port San Luis Water Taxi (1978-1983)
6) Port San Luis Bait & Tackle (1983-1996)
a. Sales of bait and tackle, food, beverages and boat fuel
at the boat launch.
7) The Fish Lady (1987-1996)
a. Co-founded with Butch Powers.
b. Located on Harford Pier (old BJ’s location), we started
the live fishing fishery and purchased fish and crabs
from commercial fishermen.
c. Sold retail fish, seafood and seashells and maintained
“touch tanks” for education to the public.
8) The Treasure Chest - Harford Pier (June 2013 – present)
a. Co-founded with Butch Powers; retail sales of ocean
novelties.
b. Added Avila Pier location (2015 - present)
9) Olde Port Fish & Seafood Co., Inc. (April 2017 – present)
a. Co-owner with Butch Powers. Retail & Wholesale sales
of fish and seafood.
16EDWARD (BUTCH) POWERS
Commercial fisherman (50+ years)
Several years as Concessionaire PSLHD, dba as:
1. The Fish Lady (1987-1996)
a. Co-founded with Barbara Powers.
b. Located on Harford Pier (old BJ’s location), we started the
live fishing fishery and purchased fish and crabs from
commercial fishermen.
c. Sold retail fish, seafood and seashells and maintained “touch
tanks” for education to the public.
2. The Treasure Chest - Harford Pier (June 2013 – present)
d. Co-founded with Barbara Powers; retail sales of ocean
novelties.
e. Added Avila Pier location (2015 - present)
3. Olde Port Fish & Seafood Co., Inc. (April 2017 – present)
a. Co-owner with Barbara Powers. Retail & Wholesale sales
of fish and seafood.
Port San Luis Fishermen’s Association (2002 – present)
a. Active member and current president
Community Affairs
a. Active in community affairs that involve fishing and
fishermen’s livelihoods.
References
NAME PROFESSION PHONE # KNOWN
SINCE
Travis Evans Commercial Fisherman 805-489-6223 1978
Bill Ward Commercial Fisherman 805-441-1372 1978
Archie Ponds Wholesale Fish Buyer 805-748-6438 1990
Chris Buccat Wholesale Fish Buyer 805-714-5162 2008
Terrie Sween Personal friend 760-793-4638 1978
17II. PROPOSAL INFORMATION SECTION - DETAILED
The following elements will be covered in this Proposal Information Section:
A. Tenant Improvement Plan – Detailed
B. Start-Up Plan – Detailed
C. Operation Plan – Detailed
D. Maintenance Plan – Detailed
E. Rental Guarantee Offer
F. Feasibility
G. Acceptance of Lease Agreement Terms and Conditions
A. TENANT IMPROVEMENT PLAN (DETAILED)
Present estimated cost, name of preferred licensed contractor,
drawings of proposed tenant improvements and estimated time to
complete. The information should take into consideration required
building permits and ADA access.
1) The total estimated overall, finished build-out cost is approximately
$38,500. (see table e. below for cost detail)
2) General Building Contractor for this project is:
i. Quine’s Enterprises owned by Barbara Powers
ii. License #762789, issued in May,1999 by CA State
License Board. Classification: B – General Building
Contractor.
3) Drawing of floor plan – (see attachments #2 and #3 on pages 41-42)
4) Estimated opening date is late February 2019.
1) On October 23, 2018 the winning lease agreement to be
tentatively approved by Board of Commissioners.
182) Submit necessary architectural drawings and blueprints to SLO
County Health Department and any other necessary county
agencies. Final approval is estimated at 4-6 weeks.
3) Apply for a permit from ABC for a 41 License - On-sale and off-
sale beer and wine for Bona Fide Public Eating Place.
i. Permit takes 60-90 days to finalize.
4) Begin purchase of equipment and fixtures.
5) Finalize DBA paperwork with county.
6) Obtain new business bank account.
7) Establish new vendors (suppliers for beer/wine, sodas, bread,
paper products.)
a. Begin interior renovations
1) Upon approved Plans from necessary agencies. Probable time
to approved plans Dec. 10, 2018.
2) At this time, renovations can begin in the interior space.
a. Renovations of the interior offered space will be straight
forward and inexpensive. There is no need to move any
walls.
3) The kitchen area already has most of the conforming items
needed to get Health Department approval. It has the needed
plumbing, drains and water accesses. Also included are
required wall coverings and ceramic flooring. The electrical is
upgraded and should be completely adequate.
4) The “non-kitchen” flooring is made of VCT tiles and is in decent
shape and will not be covered or removed at this time.
5) The renovation steps will be:
19a. Washing, cleaning, painting.
b. Minor plumbing to add back the kitchen sinks, electric
water heater. Install water plumbing for ice machine.
c. Install all kitchen fixtures.
d. Install oyster bar area (filled with ice).
e. Install sales counter with POS system.
f. Install bar tops, bar stools, bistro tables.
g. Install interior decorations.
b. Table of Estimated Costs
PERMITS FEES
Commitment fee to Harbor $5,000
District
Health Dept Fee $1,700
Other County fees $1,800
ABC fees – SLO County $2,000
Sub Total Permits $10,500
20EQUIPMENT & FIXTURES COST EQUIPMENT
TO PURCHASE
Floor model Flake ice $5,000
machine – 1200 pounds day
Two (2) fish totes 4’ x 2’ to $1,100
hold iced oysters
One (1) pellet burning BBQ $2,500
grill/smoker unit and one (1)
propane grill are intended to
use outside. Rolls inside at
closing time.
3-4 outdoor patio tables with $2,000
umbrellas
Purchase 33 feet bar top $2,500
Purchase 20 barstools $2,000
Purchase or build 4-5 Bistro $1,200
tables – stand-up tables
Purchase or build sales $400
counter
Upgrade some indoor lighting $500
with nautical themed lighting
and lamps. Other décor.
Build oyster-shucking $2,500
table/bar with capacity to hold
flake ice.
Sub Total Equipment and
Fixtures $19,700
21INSTALLATIONS Cost
Clean interior. Paint walls, $300
ceilings, trim, moldings, doors.
Install new ice machine + $200
minor plumbing.
Install 33 feet of bar $400
countertop along east and
south walls in eating area.
Install Bistro tables $500
Install oyster shucking bar $500
Install POS system we $ 0
already have.
Sub Total Installations $1,900
MINOR PURCHASES TO Cost
GET STARTED
Restaurant supplies: $1,500
Napkins, plates, cups,
eating utensils and other
paper products
Napkin dispensers
Condiment holders
Pots, pans, knives and
other cook utensils.
Trays, platters, etc.
Wood pellets, mitts
Food Purchases – beginning $1,200
inventory
Cleaning Supplies to include $250
chemicals, paper towels,
brushes, rags, etc.
Sub Total Minor Purchases $2,950
22TOTALS
Permits and Fees $10,500
Equipment and Fixtures $19,700
Installations $ 1,900
Minor Purchases $ 2,950
Contingencies – 10% $ 3,500
TOTAL ESTIMATED COSTS $38,550
This business model proposed maximizes and streamlines many
aspects of this location. The Proposers can minimize operational costs
with the ability to store seafood – mainly oysters - using an existing
walk-in refrigeration off-site. Additionally the Proposers can get the crab
already precooked eliminating the needs for live tanks taking up table
space.
B. START UP-PLAN (DETAILED)
Description of the Physical Facilities
The Crazy Pelican Oyster Bar & Grill will create a business
environment that is consistent with the values of the District and follows
the Master Plan. The unique environment of the Boat Launch building
will be embraced. Situated next to the harbor water, this tan colored,
stucco building with a red tiled roof almost gives the flair of Mexican -
adobe theme in a rustic Harbor surrounded by natural coastal
vegetation.
The interior site has a very simple and open floor plan, which lends itself
to a nautical themed environment. It has a large 9’9” window that looks
out beyond the boat hoist to the water and the hills.
23The advertised 1,064 square foot (outside dimensions,) has
approximately 547.5 square feet for inside dimensions. It has two
interior areas and a 475 square foot conditional use outdoor patio, the
spaces are:
1. Eating area (formerly a retail area)
2. Kitchen
3. Conditional use outside patio area
1. Eating Area
At the “Front Door”, one enters and looks over to a small cozy 19’
long by 13’ area. This will be the designated interior seating area
for eating.
The two walls will have a bar top 32’ long by 12” wide. Seating
will be some bar stools. Adjacent to the bar tops (in the middle of
the room) are large steel braces as part of the boat launch hoist.
We plan to work with this space utilizing stand-up bistro tables.
The interior walls will be painted in a light aqua-turquoise blue
with attractive wall décor of sea life. Lighting will be bright in
daytime with natural daylight through the windows. In evening,
lower lighting and mirrors will reflect light from decorative marine
lamps.
2. Kitchen Description
The existing kitchen is 15’8” x 8’7” and is a compact size for this
simple operation. The kitchen will have approved plans from the
San Luis Obispo County Health Department, including permission
to do outdoor grilling.
No plans to install major kitchen equipment such as hood
vents, stoves, indoor grills or fryers.
Site for minor veggie prepping getting ready for the day’s
menu.
24 Site of making salads or cold prep food, such as shrimp
cocktails, ceviche, and various seafood sauces.
Site of minor fish cutting for poke bowls, salmon, etc.
Oyster shucking bar will be placed at the edge of the
kitchen’s east wall. Oysters will be plated raw on a bed of
flake ice for immediate consumption. Other oysters will be
shucked for grilling.
This is a photo of Zippy’s kitchen before he moved out. It has the approved
equipment, flooring, walls and janitorial attributes that the San Luis Obispo
County Health Department requires. The Proposers would:
Set-up with similar equipment and configuration
Eliminate the two shelves from view – and use a cupboard
3. Conditional Use of Patio
The last tenant used part of the conditional use area for
barbequing and outdoor dining. The Proposers plan on utilizing a
similar set-up and will be mindful of the other two tenants of this
building and respect their conditional use space as well.
25C. OPERATION PLAN (DETAILED)
The Proposer’s operation plan will adhere to the operational
requirements as described in the Lease Agreement Template, as The
Crazy Pelican Oyster Bar & Grill.
1. Type of Service
This will be a small, informal seafood eatery – with inside dining
and take-out along with beer/wine sales consistent with food
service aspects. The intent is to offer patrons a few of the most
popular shellfish and fish items while keeping as locally sourced as
possible.
Food will be offered three ways:
Raw
Cold
Grilled (outside on patio area)
26(See Attachment 1 for sample menu -pages 39 & 40)
2. Business Ambiance Plan
The general overall ambience is to offer a welcoming and fun
setting. The plan is to develop the character of an informal oyster
bar and seafood bites sitting in a relaxed nautical atmosphere.
The inside nautical atmosphere begins with the 9 foot window
looking out to the boat launch. The walls and ceiling will have
nautical décor on the walls and ceiling. Lighting will be softer in
evenings with specialty marine boat lighting.
The outside patio will provide the space needed for the two BBQs.
Please note that these portable BBQs will be rolled inside
premises every night. The pellet stove type is powered by
electricity to burn the hardwood pellets. The other is fueled by
propane. They are safe and cool down in a short time in order to
roll inside each night.
In addition, there is room for seating at 1 to 2 tables and other
benches. The patio will have 3 to 4 potted palm trees to give a
soothing feel. The Proposers envision putting out small white
lights for soft evening enjoyment.
The staff will greet customers with friendliness as they come in the
door. The staff will strive to provide a personal buying experience
and chat with them. Customers will be thanked for their business
as they leave. Friendliness is the best ambiance a place can offer.
It brings customers back next year, and they tell their friends.
3. Organizational Structure
Staffing
Edward (Butch) and Barbara Powers are working owners and
will oversee daily, weekly and monthly operations and tasks.
2728
Owners/Operators/Over- Butch and Barbara Powers
seers/Bookkeepers
Floor Supervisor During operational hours – able to lead
and perform all tasks.
Front orders/Cashiers Takes orders and dispatches them.
Cashiering – takes payments.
Oyster Shuckers Similar job to a “bartender” where staff
interact and oyster educate with the
customers while providing great
service.
BBQ Cooks BBQs food
Prep Cooks Prepares food for raw or cooking
Servers/Clean-up Serves food and cleans up
Staffing will be variable depending on the season and product
availability. Employees will perform more than one job
description listed above during a shift - depending on business.
Number of employees is variable depending on the time of
year. We will have 2 to 6 employees working different shifts. In
summer months more employees will be required. In bad
winter months, less employees will be required.
Hours of Operation
The hours of operation will be variable, depending on the
season, weather and seafood availability.
Variabilities occur from such things any of the oyster beds
being shut down during rainy weather by west coast Health
Departments and Fish & Game Wildlife Services. This is done
for a possible prevention of storm waters contaminating some
oyster beds up and down all coastlines.
The plan is to be open daily from March 1 - September 30. For
hours October 1 – February 28, the plan is to be open
weekends and other days as feasible.
29Proposed hours are:
SEASON MON – THUR FRI - SUN
Summer noon – 8pm noon – 10 pm
Spring/Fall noon – 6pm noon – 7pm
Winter Variable noon – 6pm
4. Marketing and Advertising
Social media has become a powerful source of advertising. The
Crazy Pelican Oyster Bar & Grill will utilize Facebook,
Instagram, Yelp and Google. The sites will be updated with new
pictures. Many customers will upload their own pictures and
positive comments about our shucked oyster plates and other
menu items. This is the digital form of “word of mouth.”
The staff will make sure the customers have a positive experience.
That in turn usually provides physical “word of mouth.”
Website presence is common these days and the Olde Port Fish
Market websites offers good information including seafood-
cooking recipes. If awarded this lease, the Proposers will make a
new website.
In winter when it is slow, the Proposers would like to do a
promotion to bring people to Port San Luis Harbor. This would be
a good location to draw folks out for a special event. The
Proposers are certain our fellow lessees in this building would be
happy to get involved as a joint effort.
5. Conservation and Recycling
1) The Crazy Pelican Oyster Bar & Grill will strive to conserve
water and electricity.
302) The Proposers are dedicated to the ocean environment and will
help maintain that trash does not blow into the water where a
marine bird or mammal could ingest it.
3) The plan is exactly to follow the new golden rules of reduction,
reuse and recycle.
4) The Proposers will use supplies made from recycled materials
such as take-out containers.
5) The Proposers will provide recycling receptacles where
possible.
6. Accessibility Plan
This proposed oyster bar & grill has two (2) entry/exit doors both
located at west facing side of building. One door to inside has a
handicapped ramp already approved. Additionally, the restroom
conforms to the ADA standards. Also, there is approved
handicapped parking just outside.
The Crazy Pelican Oyster Bar & Grill will provide certification
of compliance for the east-facing door consistent with the
“Americans with Disabilities Act of 1990.
D. MAINTENANCE PLAN (DETAILED)
The Crazy Pelican Oyster Bar & Grill will adhere to all maintenance
requirements outlined in the lease agreement template and agree to
adhere to the facility requirements as described.
The exterior of the building and patio will be cleaned as needed to
maintain freshness. The cleaning schedule will be on a daily, weekly
and monthly depending on the scope of the job around the exterior
perimeter.
31The interior of the building will be on a cleaning schedule consistent to
daily, weekly and monthly chores that are normal for a seafood eating
facility.
E. RENTAL GUARANTEE OFFER
The Crazy Pelican Oyster Bar & Grill will offer a rental guaranteed
Base Rent to be $1,085 per month for a total minimum rent of $13,020
per year.
The Proposers will offer Percentage Rent on Gross Receipts of 4.5% –
whichever is more – Base Rent or Percentage Rent as described in
District’s RFP and Draft Lease Template.
Gross Receipts of sales to include, but not limited to the sales of:
1. Raw and barbequed oysters, clams, mussels, and other mollusks.
Steamed or barbequed crab, shrimp and other shellfish.
2. Smoked salmon, albacore, tuna, sablefish and other smoked fish
from the Olde Port Fish Market smoker at the end of the pier.
3. Cooked, take-out seafood prepared on premises and/or at other
owned locations - steamed, smoked or barbequed. Offerings will
include bread, crackers, salads and vegetables.
4. Ready to-go-food “House Made” items such as tartar sauce, seafood
cocktail sauce, shrimp and crab cocktails and seaweed salad
5. Beverages including water, soda, other non- alcoholic drinks, beer
and wine, both on-sale and off-sale.
6. Small retail wall or gondola display of pegboard and hanging
merchandise such as seafood cookbooks, oyster and clam knives,
crab-shell crackers, crab mallets, our logo t-shirts/sweat shirts, tourist
postcards/pictures, and oyster shells.
32G. OYSTER BAR & GRILL FEASIBILITY
1. Estimated Cost for Tenant Improvements
The estimated cost for tenant improvements are outlined on page 22
and are estimated to be about $ 38,550. A Proposer, Barbara
Powers, has 19 years of experience as a licensed General
Contractor. Completing detailed and accurate estimates goes with
the job profession.
2. Estimated Cost for Start-Up Expenses
The estimated cost for start-up is included with the tenant
improvements. Since the Proposers are already in business as a
retail/wholesale fish market, they will purchase their own beginning
inventory. Some new equipment is anticipated and is listed on pages
22 as part of the whole cost. Once the equipment is installed then it is
a matter of starting inventory of paper products, and food.
3. Estimate of Equity and Debt Requirements
The estimate of equity and debt requirements will primarily be self-
funded by the Proposers. The Proposers already are in business at
Port San Luis Harbor District as a fish market and profits will be used.
In addition, other sources of income will come from the retail fish
market location in Grover Beach and the Farmer’s Market business.
The Proposers also have sources of income from “The Treasure
Chest” on District property. Some debt from banks, credit cards or
other sources are expected to be $15,000 - $25,000.
The Proposers plan to keep a very simple business model effects our
food operations to strive for a simple, (yet effective) menu of seafood
bites.
334. Lease Agreement Term
Barbara and Edward Powers, dba The Crazy Pelican Oyster Bar &
Grill, requests a lease term of 5 years with two (5) year extensions.
5. Pro forma Projection
See attachment 4, pages 43-44.
H. ACCEPTANCE OF LEASE AGREEMENT TERMS & CONDITIONS
The Proposers, Edward and Barbara Powers, have read the Lease
Agreement template provided by Port San Luis Harbor District.
The Proposers request clarification of the Draft Lease Agreement as a
whole because this template is geared for retail/wholesale seafood as
referenced on page 34. Further, much talk about pier and pier
construction, but nothing about the boat launch building and its
surrounds. The pier is mentioned on pages 2, 3, 11,13,15,16,17,18, 35.
The Proposers found most of the Lease Agreement template to be
suitable and are willing to accept the conditions, except for a few items
that need clarification listed below:
Page Where
Concern Solution
# Stated
6 of 49 (e.) monthly Asks for rent due on the The 10th of each month is better due
statements 5th of each month to holidays, peak seasons, and
bookkeeping employee availability.
9 of 49 (5.) Security There has not been Is this part of the $5,000
Deposit mention anywhere in RFP commitment fee?
about a security deposit.
34Page Where
Concern Solution
# Stated
12 of (3a.) Restricts music going Would there be times one could get
49 Restrictions outside beyond building. outside music if other lessees do
Upon Use not mind?
35CERTIFICATION OF PROPOSER INFORMATION
1. Labor Law Compliance Certification
2. Proposer Certification
3. Authorized to Release Information
1. Labor Law Compliance Certification
The Proposers, Edward and Barbara Powers, have NOT ever had any
record or violation of the National Labor Relations Board.
In addition, other businesses currently owned by The Proposers Edward
and Barbara Powers, namely The Treasure Chest and Olde Port Fish &
Seafood Co., have NEVER had any record or violations of the National
Labor Relations Board.
2. Proposal Summary and Proposer Certification
Summary
5 Years with two (5) year
Contract Term Proposed:
extensions
Minimum Annual Rent
$1,085/month for $13,020/year
Proposed:
Percentage Rent Proposed: 4.5% of Gross Receipts
Commitment Fee (due at time Five thousand dollars ($5,000)
of proposal submission):
Lease Area: New footprint See market lease site area
(1064 sq. ft.) ID including attachment made by Port San
bathroom and closet. Conditional Luis Harbor District.
patio use of (475 sq. ft).
36Certification
I/We am (are) personally acquainted with the premises of the subject
lease and I/we have read, understand and agree with the terms and
conditions specified in this RFP document, including the Draft Lease
Agreement. I have read and received any and all written questions and
District responses produced as an addendum to the RFP.
I/We have the necessary financial resources to equip and operate the
concession, and I/we have enclosed a cashier's check in the required
amount, payable to Port San Luis Harbor District, as a guarantee that, in
the event my/our proposal is accepted and approved by the District, I/we
will execute and complete the Lease Agreement, incorporating this
proposal and all the terms and conditions contained in the RFP. The Lease
Agreement then will be executed by the District upon approval of the
appropriate State agencies.
I/We hereby certify that all responses and information provided in
connection with this proposal are true to the best of my/our knowledge and
belief, and I/we understand and agree that any misstatement or omission of
any material fact may cause forfeiture on my/our part of all rights to the
proposed agreement to be awarded by Port San Luis Harbor District.
I/we hereby submit this proposal, including all required documents and
statements. I/we represent that the signatories hold the positions set forth
below their signatures and are authorized to execute this proposal.
Signature 1
Date July 24, 2018
Signature
Print Name Edward J Powers
Position/Title Owner/Operator
Address PO Box 368, Avila Beach, CA 93424
Phone # 805-801-0752
Fax# 805-929-4022
Email butchpowers1@gmail.com
37Signature 2
Date July 24, 2018
Signature
Print Name Barbara A. Powers
Position/Title Owner/Operator
Address PO Box 368, Avila Beach, CA 93424
Phone # 805-801-0751
Fax# 805-929-4022
Email bquine@msn.com
38AUTHORIZATION TO RELEASE INFORMATION
To Whom It May Concern:
I/my company have (has) submitted a proposal to the Port San Luis Harbor
District, Avila Beach, California, for a concession operation. I hereby
authorize you to release or discuss any or all information in your
possession pertaining to me as requested by an employee or
representative of the Port San Luis Harbor District in connection with or to
verify information submitted by me in the above-referenced proposal.
PROPOSER SIGNATURE DATE SIGNED
July 24, 2018
PRINTED NAME
Edward J. Powers
POSITION/TITLE
Owner/Operator
COMPANY NAME (if applicable)
PROPOSER SIGNATURE DATE SIGNED
July 24, 2018
PRINTED NAME
Barbara A Powers
POSITION/TITLE
Owner/Operator
COMPANY NAME (if applicable)
39ATTACHMENTS
40Attachment 1: Sample Menu (page 1)
41Attachment 1: Sample Menu (page 2)
42Attachment 2: Preliminary Floor Plan - Depicting Inside Measurement
43Attachment 3: Preliminary Floor Plan – Equipment Placement
44Attachment 4 (part 1): Pro Forma Projection 2019 – 2033
The Crazy Pelican Oyster Bar & Grill
Pro Forma Projection 2019-2033
2019 2020 2021 2022 2023 2024 2025 2026 2027
ORDINARY INCOME/EXPENSE
INCOME - GROSS SALES $300,000 $330,000 $363,000 $399,300 $439,230 $483,153 $531,468 $584,615 $643,077
COST OF SALES
Seafood Purchases $120,000 $126,000 $132,300 $138,915 $145,861 $153,154 $160,811 $168,852 $177,295
Food Ingredients $18,000 $19,800 $21,780 $23,958 $26,354 $28,989 $31,888 $35,077 $38,585
Supplies Dry Goods $7,200 $7,560 $7,938 $8,335 $8,752 $9,189 $9,649 $10,131 $10,638
Resale products - non food $2,500 $2,750 $3,025 $3,328 $3,660 $4,026 $4,429 $4,872 $5,359
Seafood Spoilage $9,000 $9,450 $9,923 $10,419 $10,940 $11,487 $12,061 $12,664 $13,297
TOTAL COGS $156,700 $165,560 $174,966 $184,954 $195,566 $206,845 $218,838 $231,596 $245,173
GROSS PROFIT 143,300 164,440 188,035 214,346 243,664 276,308 312,630 353,019 397,904
OPERATING EXPENSES
Advertising & Promotion $975 $995 $1,014 $1,035 $1,055 $1,076 $1,109 $1,142 $1,176
Bank Billing/Service Charges $375 $379 $383 $386 $390 $394 $398 $402 $406
Business Licenses & Permits $150 $152 $153 $155 $156 $158 $159 $161 $162
Credit Card Processing fees $4,100 $4,182 $4,266 $4,351 $4,438 $4,527 $4,617 $4,710 $4,804
Freight $980 $1,000 $1,020 $1,040 $1,061 $1,082 $1,104 $1,126 $1,148
General Supplies $3,000 $3,150 $3,308 $3,473 $3,647 $3,829 $4,020 $4,221 $4,432
Insurance - Liability $1,150 $1,208 $1,268 $1,331 $1,398 $1,468 $1,541 $1,618 $1,699
Insurance - Workman's Comp. $5,977 $6,276 $6,590 $6,919 $7,265 $7,628 $8,010 $8,410 $8,831
Interest Expense $3,890 $4,357 $4,880 $5,465 $6,121 $6,856 $7,678 $8,600 $9,631
Internet Web Hosting $1,592 $1,624 $1,656 $1,689 $1,723 $1,758 $1,793 $1,829 $1,865
Payroll Wages $36,500 $40,880 $45,786 $49,448 $53,404 $57,677 $62,291 $67,274 $72,656
Payroll Expenses $4,745 $5,314 $5,846 $6,430 $7,073 $7,781 $8,559 $9,415 $10,356
Professional Fees $1,215 $1,580 $2,053 $2,669 $3,470 $4,511 $5,865 $7,624 $9,911
Propane/Gas $1,500 $1,545 $1,591 $1,639 $1,688 $1,739 $1,791 $1,845 $1,900
Rent Expense $20,000 $27,870 $29,355 $30,989 $32,785 $34,762 $36,936 $39,328 $41,958
Repairs & Maintenance $1,800 $1,854 $1,910 $1,967 $2,026 $2,087 $2,149 $2,214 $2,280
Taxes - Franchise Tax Board $280 $286 $291 $297 $303 $309 $315 $322 $328
Taxes - Property $275 $281 $286 $292 $298 $304 $310 $316 $322
Taxes - Sales Tax $3,800 $3,990 $4,190 $4,399 $4,619 $4,850 $5,092 $5,347 $5,614
Telephone $1,100 $1,122 $1,144 $1,167 $1,191 $1,214 $1,239 $1,264 $1,289
Uniform/Rag service $800 $816 $832 $849 $866 $883 $901 $919 $937
Utilities $9,000 $9,270 $9,734 $10,026 $10,326 $10,636 $10,955 $11,284 $11,622
TOTAL EXPENSE $103,204 $118,127 $127,554 $136,017 $145,304 $155,528 $166,832 $179,368 $193,331
Net Ordinary Income - before taxes $40,096 $46,313 $60,480 $78,329 $98,360 $120,780 $145,798 $173,651 $204,573
Net Income $40,096 $46,313 $60,480 $78,329 $98,360 $120,780 $145,798 $173,651 $204,573
45Attachment 4 (part 2): Pro Forma Projection 2019 – 2033
The Crazy Pelican Oyster Bar & Grill
Pro Forma Projections 2019-2033
2028 2029 2030 2031 2032 2033
ORDINARY INCOME/EXPENSE
INCOME - GROSS SALES $707,384 $778,123 $855,935 $941,529 $1,035,681 $1,139,250
COST OF SALES
Seafood Purchases $186,159 $195,467 $205,241 $215,503 $226,278 $237,592
Food Ingredients $42,443 $46,687 $51,356 $56,492 $62,141 $68,355
Supplies Dry Goods $11,170 $11,728 $12,314 $12,930 $13,577 $14,256
Resale products - non food $5,895 $6,484 $7,133 $7,846 $8,238.37 $8,650
Seafood Spoilage $13,962 $14,660 $15,393 $16,163 $16,971 $17,819
TOTAL COGS $259,629 $275,027 $291,437 $308,933 $327,205 $346,672
GROSS PROFIT 447,755 503,096 564,498 632,595 708,477 792,578
OPERATING EXPENSES
Advertising & Promotion $1,212 $1,248 $1,285 $1,324 $1,364 $1,405
Bank Billing/Service Charges $410 $414 $418 $423 $427 $431
Business Licenses & Permits $164 $166 $167 $169 $171 $172
Credit Card Processing fees $4,900 $4,998 $5,098 $5,200 $5,304 $5,410
Freight $1,171 $1,195 $1,219 $1,243 $1,268 $1,293
General Supplies $4,654 $4,887 $5,131 $5,388 $5,657 $5,940
Insurance - Liability $1,784 $1,873 $1,967 $2,065 $2,168 $2,277
Insurance - Workman's Comp. $9,272 $9,736 $10,223 $10,734 $11,271 $11,834
Interest Expense $10,787 $12,082 $13,532 $15,155 $16,974 $19,011
Internet Web Hosting $1,903 $1,941 $1,979 $2,019 $2,059 $2,101
Payroll Wages $78,468 $84,746 $91,526 $98,848 $106,755 $115,296
Payroll Expenses $11,392 $12,531 $13,784 $15,163 $16,679 $18,347
Professional Fees $12,884 $16,750 $21,775 $28,307 $36,799 $47,839
Propane/Gas $1,957 $2,016 $2,076 $2,139 $2,203 $2,269
Rent Expense $44,852 $48,036 $51,537 $55,389 $59,626 $64,286
Repairs & Maintenance $2,349 $2,419 $2,492 $2,566 $2,643 $2,723
Taxes - Franchise Tax Board $335 $341 $348 $355 $362 $369
Taxes - Property $329 $335 $342 $349 $356 $363
Taxes - Sales Tax $5,895 $6,190 $6,499 $6,824 $7,165 $7,524
Telephone $1,315 $1,341 $1,368 $1,395 $1,423 $1,451
Uniform/Rag service $956 $975 $995 $1,015 $1,035 $1,056
Utilities $11,971 $12,330 $12,700 $13,081 $13,473 $13,878
TOTAL EXPENSE $208,960 $226,548 $246,460 $269,149 $295,182 $325,274
Net Ordinary Income - before taxes $238,796 $276,547 $318,037 $363,446 $413,294 $467,304
Net Income $238,796 $276,547 $318,037 $363,446 $413,294 $467,304
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