Woods Hole, Martha's Vineyard and Nantucket Steamship Authority

AUTHORITY MEMBERS ROBERT B. DAVIS General Manager JAMES M. MALKIN Martha's Vineyard Member, Chairman MARK K. ROZUM Treasurer/Comptroller KATHRYN WILSON Falmouth Member, Vice-Chairman TERENCE G. KENNEALLY

MOIRA E. TIERNEY General Counsel New Bedford Member, Secretary

ROBERT F. RANNEY Nantucket Member

ROBERT R. JONES Barnstable Member

June 15, 2020

TO: Authority Members

FROM: Robert B. Davis

SUBJECT: Authority Meeting – June 16, 2020

The purpose of this memorandum is to outline briefly the items on the agenda for the discussion at the Authority’s meeting to be held Tuesday, June 16, 2020, First Floor Meeting Room (#103), SSA Administrative Offices, 228 Palmer Avenue, Falmouth, MA.

Item No. 1. Entertain Motion to Enter Into Executive Session

Item No. 2. Approval of Minutes

Minutes of the Authority’s May 5, 2020 meeting were forwarded to the members on June 12, 2020.

Item No. 3. Port Council’s Report on its June 3, 2020 Meeting

Item No. 4. General Manager’s Report

This report will be presented by the General Manager, Robert B. Davis, and will include the following:

(a) COVID-19 i. Activities to Date ii. Future Considerations (b) Results of Operations – Business Summary for the Month of April 2020 (c) Update on Current Projects i. Woods Hole Terminal Reconstruction Project (Marine) ii. Vessel Dry-Dock and Repair Projects iii. Oak Bluffs Pier Repairs iv. Vineyard Haven Transfer Bridge Repairs (d) 2021 Operating Schedules – Update on Public Hearing Held June 11, 2020

228 Palmer Avenue • Falmouth, Massachusetts 02540 • Telephone: (508) 548-5011

MEETING MEMORANDUM PAGE 2

Item No. 5. Treasurer/Comptroller’s Report

This report will be presented by the Treasurer/Comptroller, Mark K. Rozum.

(a) 2021 Budget Policy Statement – Please see Staff Summary #A-651 Proposed 2021 Budget Policy Statement. Item No. 6. Procurement

(a) To Authorize the General Manager to Award Contract No. 02-2020, “Dry-dock and Overhaul Services for the M/V Katama” Item No. 7. Old/New Business

Item No. 8. Items Not Reasonably Anticipated by the Chair

Item No. 9. Public Comment

______Robert B. Davis General Manager

MINUTES OF THE WOODS HOLE, MARTHA’S VINEYARD AND NANTUCKET STEAMSHIP AUTHORITY

The Meeting in Public Session May 5, 2020

The Members of the Woods Hole, Martha's Vineyard and Nantucket Steamship Authority met this 5th day of May, 2020, beginning at 10:00 a.m., in the first-floor meeting room (Room 103) of the Authority’s administrative offices, located at 228 Palmer Avenue, Falmouth, Massachusetts. All five (5) members participated via Zoom video conferencing: Chairman James M. Malkin of Dukes County; Vice Chairman Kathryn Wilson of Falmouth; Secretary Moira E. Tierney of New Bedford (who joined the meeting during discussion of the preliminary April traffic figures); Robert F. Ranney of Nantucket (who participated via telephone and not video); and Robert R. Jones of Barnstable (who joined during discussion of the Oak Bluffs terminal project).

The following members of management were also present: General Manager Robert B. Davis; General Counsel Terence G. Kenneally; Treasurer/Comptroller Mark K. Rozum; Communications Director Sean F. Driscoll; Director of Marine Operations Mark H. Amundsen (who participated via Zoom videoconferencing); and Director of Human Resources Janice L. Kennefick.

Video and Audio Recording of Today’s Meeting:

Mr. Malkin announced that Steve Baty of All Media Productions was taking a video and audio recording of today’s meeting in public session on behalf of Martha’s Vineyard Community Television, also known as MVTV. Mr. Driscoll was making an audio and video recording of the meeting; Noah Asimow (representing the Vineyard Gazette) indicated he was making an audio recording of the meeting.

Remote Participation by All Members:

Mr. Malkin announced that, in response to Governor Charles Baker’s executive orders concerning the necessity to conduct public meetings in line with social distancing guidelines during the current state of emergency involving the COVID-19 pandemic, all Board Members were participating remotely in the day’s meeting because their physical attendances would be unreasonably difficult. All Board Members were participating in the meeting by the Zoom video May 5, 2020 Minutes of the Public Session

conferencing app and all members were to be clearly audible to each other. As a result of the Members’ remote participation in this meeting, any and all votes taken by the Members today were to be taken by roll call vote.

Report on COVID-19:

Mr. Davis stated that the passenger traffic for April ended up being approximately 16% of expectations, or down 160,000 passengers overall; automobile traffic was 23% of expectations, or down 25,000 automobiles overall; and truck traffic was 40% of expectations, or down 10,000 units. Although the month’s finances had not closed, Mr. Davis said he anticipated that projected revenues would be approximately $5,000,000 below projections, not including revenues from other sources.

Through May 4, 2020, Mr. Davis said traffic numbers had slightly increased, but there were no significant movements and that, overall, the Authority was still far off expectations.

Regarding advance reservations, the Authority has seen an increase of approximately 5,000 vehicle reservations for the month of May as of May 4, 2020, but the 21,180 total was still far below the same timeframe for 2019 (45,990). This reservation decrease continues through the summer months, although Mr. Davis noted the decreases compared to last year were smaller in subsequent months, with the numbers of reservations in September and early October almost equal to that of 2019. Mr. Davis said there have been cancellations but that, overall, reservation activity has been in positive territory in recent days.

Ms. Tierney asked Mr. Davis if he had projected how the Authority’s finances will perform if traffic stays at May’s levels and the Authority does not receive any additional governmental funding. Mr. Davis said staff have considered a number of different scenarios and that, in the scenario Ms. Tierney described, the Authority would incur a loss of $60,000,000 by the end of the year. Other scenarios show a gradual increase in traffic, which result in less of a loss. Ms. Tierney asked when the Authority would run out of operating cash at its current burn rate; Mr. Davis said, with the approximately $8,000,000 the Authority was due to receive from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, its cash reserves would last through approximately July 31, 2020. The $10,000,000 made available through a line of credit would extend that date to approximately Labor Day.

Mr. Malkin asked what business model would allow the Authority to continue to operate under these circumstances without receiving additional

Page 2 May 5, 2020 Minutes of the Public Session

funding. He asked that the issue be discussed at a future meeting. Ms. Tierney said her major concern was how the Authority could maintain barebones service to both islands under these conditions.

Regarding the Oak Bluffs Pier:

Mr. Davis noted that the bid package for the Oak Bluffs pier repairs had been issued and the Authority had heard concerns from several vendors who would normally bid on such a project. Specifically, Mr. Davis said that the vendors were concerned about the scope of work and the timeframe for the delivery specified in the bid package.

One potential alternative was to issue a revised construction schedule, which would entail doing only those repairs that would make the pier accessible for automobiles and pickup trucks. Mr. Davis said the driving force behind the change was the timeframe to order pile caps for the project, which had a longer lead-time than other materials. Although the change would necessitate adjustments to the schedules to move truck traffic to Vineyard Haven, Mr. Davis said he believed it was the only way to make the June 22, 2020 opening date.

Mr. Davis noted that he had conversations with Angela Grant, the administrator at the Vineyard Transit Administration, about running shuttle bus service from Vineyard Haven to Oak Bluffs for those passengers wishing to travel to the other terminal. Mr. Davis said Ms. Grant had said it should not be a problem to do so, which would help bring foot traffic to Oak Bluffs.

Mr. Malkin asked if the work was done in this fashion whether or not the spring repairs would have to be redone once the entire pier was completed or if there would be additional repairs. Mr. Davis said the work would not have to be redone, but the overall project would be less efficient, as there would be a second round of mobilization costs and some of the decking would have to be pulled up a second time. Mr. Malkin noted that limiting the scope of the project now would also help the Authority’s finances. Mr. Davis said the Authority had already purchased the materials, and Mr. Amundsen said the critical portion of the project was the labor costs. The proposal represents roughly an eighty percent (80%) reduction in the overall scope of work, Mr. Amundsen added.

Ms. Wilson asked if the reason the entire project could not be completed was the availability of materials or the overall timeframe. Mr. Davis said the piles would be available in time to do the entire project in the specified timeframe, but the pile caps require a longer lead-time.

Page 3 May 5, 2020 Minutes of the Public Session

Ms. Tierney asked if any change orders were anticipated for the project, and Ms. Wilson additionally asked if the timeframe for the material delivery was realistic. Mr. Davis said it was a matter of how soon the piles and caps could be cut and treated. He also said that some materials might ship earlier than anticipated if they are ready ahead of schedule.

Ms. Wilson asked what the cost difference was to do the project in two phases, to which Mr. Amundsen replied that the Authority had not received any bids so he could not answer that question. Once the bids were received, it would be possible to offer a more informed answer to that question, he said. Ms. Wilson said she was concerned, as she did not know how this part of the project fits into the overall scope of the work.

Ms. Tierney asked if the cash projections Mr. Davis cited earlier included the Oak Bluffs repairs, to which Mr. Davis replied they did.

Mr. Malkin said he supported going forward with the limited repair to get the Oak Bluffs terminal up and running as soon as possible.

Treasurer’s Report:

Mr. Rozum said that, following the prior discussion on the line of credit, Martha’s Vineyard Savings Bank had offered a proposal, as had Cape Cod Five Cents Savings Bank. Both institutions were able to move the twelve (12)-month “seasonal clean up” period to eighteen (18) months. Cape Cod Five also lowered the minimum interest rate to two and three-quarters percent (2.75%), while Martha’s Vineyard Savings Bank was offering two and a half percent (2.5%). Based on the two offers, Mr. Rozum said he was recommending Martha’s Vineyard Savings Bank based upon the lower minimum rate and current rate, but he noted that both banks were very responsive and easy to work with.

IT WAS VOTED – upon Ms. Tierney’s motion, seconded by Mr. Jones – to authorize the General Manager to execute the line of credit with Martha’s Vineyard Savings Bank as proposed.

Page 4 May 5, 2020 Minutes of the Public Session

VOTING AYE NAY

Mr. Malkin 35 % Ms. Wilson 10 % Ms. Tierney 10 % Mr. Ranney 35 % Mr. Jones 10 % ______

TOTAL 100 % 0 %

IT WAS VOTED – upon Mr. Jones’ motion, seconded by Mr. Ranney, to authorize Mr. Kenneally, as the Clerk of the Authority, to certify the vote on behalf of Ms. Tierney, the Authority’s Secretary.

VOTING AYE NAY

Mr. Malkin 35 % Ms. Wilson 10 % Ms. Tierney 10 % Mr. Ranney 35 % Mr. Jones 10 % ______

TOTAL 100 % 0 %

Modifications to the Authority’s Operating Schedules:

Mr. Davis said staff was considering modifications to the operating schedules in light of the recent uptick in traffic demand. Until this week, the Vineyard run was being served by the M/V Woods Hole, which was running seven (7) days a week, and the M/V Martha’s Vineyard, which was running five (5) days a week. However, as the weekend trips were becoming more in demand, Mr. Davis said the M/V Martha’s Vineyard would start to run seven (7) days a week as well, with up to four (4) round-trips per day.

On the Nantucket run, the third trip of the M/V Gay Head was being run more often than not, so adding the third trip on a permanent basis was also being considered.

Mr. Davis said he would be recommending further schedule adjustments to the Board in upcoming weeks, along with a proposal for Memorial Day weekend.

Page 5 May 5, 2020 Minutes of the Public Session

Submitted Public Comments:

Mr. Davis said, following last week’s meeting, Mr. Driscoll had received two (2) questions from the public per Mr. Malkin’s request.

The first was from Nat Trumbull of Woods Hole, who submitted the following:

“Have SSA staff or the Steamship Authority Board already communicated with town leaders of the five port towns the higher than usual possibility that the SSA will need to come to them for shortfall funding at the end of 2020, as per the Enabling Act? Is the SSA Board able to indicate already now the probability of such a shortfall this year? High, likely, unlikely, highly unlikely, etc.? Without advance planning, the towns could be in a terrible position to respond if the Steamship Authority has not communicated with town leaders in advance about the possibility of a budget shortfall.”

Mr. Davis responded that notifications were made to the appointing authorities of each Member and that several of them had offered to write letters of support for state funding assistance.

Jonathan Goldman of Woods Hole submitted the following:

“Given the rapidly changing impacts on ridership, on budgetary deficits, and even pursuit of serious ‘bailout’ sustenance funding, how is the SSA adapting its plans and dealines (sic) for the re- development of the port in Woods Hole? In specific what are your immediate plans for the current timeline regarding the existing ticket office and will online/mobile ticketing be prioritized to reduce the need for an already overdesigned plan? “(H)ow will the current crisis re-orient your immediate and long term plans regarding the temporary status of the current ticket office and when will online/mobile ticketing be prioritized to limit ticketing workers, and crew from interaction with the public?”

Mr. Davis said the Woods Hole project was paid for out of capital funds, which is why work was able to continue. He said there had been no work done on the building design since the onset of the COVID-19 situation. He said the Authority would be discussing the status of the temporary terminal building with the state building inspector.

Page 6 May 5, 2020 Minutes of the Public Session

Regarding the Board’s Next Meeting:

Mr. Malkin said he wanted to discuss the Authority’s profitability from passenger traffic and how it could compensate for those losses going forward.

Mr. Malkin asked if the Board would need to have a special meeting to award the contract for the Oak Bluffs pier repair; Mr. Davis said the deadline for the bids was to be extended to Monday, May 11, 2020, so the Board could consider the award at its next weekly meeting, scheduled for Tuesday, May 12, 2020.

At 10:49 a.m., Mr. Ranney ended his participation in the meeting.

Public Comment:

Mr. Asimow asked which bank the Authority chose for its line of credit; Mr. Davis said it was Martha’s Vineyard Savings Bank. In response to a further question from Mr. Asimow, Mr. Davis said the Authority reached out to several banks it did business with to obtain proposals. It originally had not reached out to Martha’s Vineyard Savings Bank out of a concern that the line of credit could hamper the bank’s ability to assist the local community, but bank officials stated it was not an issue and wanted to submit a proposal.

Mr. Asimow asked if June 22, 2020 was a “best-case scenario” for completion of the Oak Bluffs pier work; Mr. Davis said, until the bids were received, it remained the target date.

At approximately 10:53 a.m., Mr. Malkin said he would entertain a motion to adjourn.

Page 7 May 5, 2020 Minutes of the Public Session

IT WAS VOTED – upon Mr. Ranney’s motion1, seconded by Mr. Jones – to adjourn the meeting.

VOTING AYE NAY

Mr. Malkin 35 % Ms. Wilson 10 % Ms. Tierney 10 % Mr. Jones 10 % ______

TOTAL 65 % 0 %

A TRUE RECORD ______MOIRA E. TIERNEY, Secretary

1 Reporter’s note: Mr. Ranney made the motion prior to his departure from the meeting; the motion remained on the floor during Public Comment.

Page 8 May 5, 2020 Minutes of the Public Session

Documents and Exhibits Used at the

May 5, 2020 Meeting in Public Session of the

Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority

1. May 5, 2020 Meeting Memorandum, dated May 4, 2020. 2. Video and audio recording announcement. 3. Statement regarding remote participation. 4. Advance Reservation Activity by Month, All Routes, as of May 4, 2020.

Page 9 MINUTES

OF THE

PORT COUNCIL

OF THE

WOODS HOLE, MARTHA’S VINEYARD AND NANTUCKET STEAMSHIP AUTHORITY

June 3, 2020

First-Floor Meeting Room (Room 103) Steamship Authority Administrative Offices 228 Palmer Avenue, Falmouth, Massachusetts

Port Council Members present: Chairman Edward C. Anthes-Washburn of New Bedford; Vice Chairman Robert V. Huss of Oak Bluffs; Secretary Eric W. Shufelt of Barnstable; Mark H. Rees of Fairhaven; Robert S.C. Munier of Falmouth; Nathaniel E. Lowell of Nantucket; and George J. Balco of Tisbury (all of whom participated via Zoom videoconferencing).

Authority Board Members present: Chairman James M. Malkin of Dukes County; Vice Chairman Kathryn Wilson of Falmouth; and Robert R. Jones of Barnstable (all of whom participated via Zoom videoconferencing).

Authority Management present: General Manager Robert B. Davis; Treasurer/Comptroller Mark K. Rozum; General Counsel Terence G. Kenneally; Communications Director Sean F. Driscoll; Director of Marine Operations Mark H. Amundsen; Woods Hole Reconstruction Project Manager William J. Cloutier; Director of Shoreside Operations Alison A. Fletcher; and Director of Human Resources Janice L. Kennefick.

1. Mr. Anthes-Washburn called the meeting to order at 9:57 a.m.

2. Mr. Anthes-Washburn announced that Steve Baty of All Media Productions was making an audio and video recording of today’s meeting in open session for Martha’s Vineyard Community Television, also known as MVTV. Mr. Driscoll was making a video and audio recording of today’s meeting. Port Council Minutes – June 3, 2020 DRAFT June 12, 2020 3. Mr. Anthes-Washburn announced that, in response to Gov. Charlie Baker’s executive orders concerning the necessity to conduct public meetings in line with social distancing guidelines during the current state of emergency involving the COVID-19 pandemic, all of the Port Council members were participating remotely in the day’s meeting because their physical attendance would be unreasonably difficult. All the members were participating via Zoom videoconferencing were clearly audible to one another. As a result of the members’ remote participation, all votes taken were to be by roll call vote.

4. Upon a motion by Mr. Balco and a second by Mr. Huss, the Port Council voted 7-0 to approve the minutes of their meeting in public session on May 6, 2020.

5. Mr. Rozum then reviewed the April 2020 business summary, which showed the first full month of traffic being affected by COVID-19. In April, the Authority carried fewer passengers (30,766, down 83.8%), automobiles (7,601, down 76.6%) and trucks (7,543, down 57.8%) than it had in April 2019. The total income for the month was approximately $2,602,000, while total expenses were approximately $8,088,000, for a net operating loss of approximately $5,485,000, which was approximately $3,980,000 more than anticipated in the 2020 budget. Mr. Rozum said year-to-date losses were more than $5,500,000 ahead of projections, a trend that he said could hopefully be reversed.

Mr. Balco asked if the Authority would break even in any month soon, to which Mr. Rozum stated that May through September are typically months in which the Authority ends up in the black. At this point, he said he did not anticipate the Authority doing that, although it was encouraging to see some upward trends heading into June. Until passenger traffic rebounds, however, he said he did not see the Authority breaking even in any month except possibly July. Mr. Balco asked if the Authority would be able to maintain its cash position through the summer, to which Mr. Davis said yes.

6. Mr. Cloutier provided an update on the Woods Hole Terminal Reconstruction Project, noting that marine contractor Jay Cashman Inc. continues to make steady progress. The pace of work was not as fast this year due to the observation of COVID-19 protocols at the site, and said that the number of contractors on site at any point was limited to 35. Last year, for comparison, between 50 and 55 would have been working at any one point. Mr. Cloutier said the transfer bridge at Slip No. 2 is done and that the passenger canopy should be done at the end of the week. Landside utility work was nearly finished, and final grading and installation of bollards and light posts was to come. He said he believed that, by the end of the month, the slip would be fully operational.

Mr. Cloutier then shared some slides detailing the work at the site. In response to a question from Mr. Lowell, Mr. Cloutier stated that the new transfer bridges would be interchangeable and that, with a spare bridge now in the Authority’s possession, they could be swapped out for maintenance purposes.

Page 2 of 7 Port Council Minutes – June 3, 2020 DRAFT June 12, 2020 7. Mr. Amundsen then provided an update with photographs on marine operations projects, including the dry dock of the M/V Nantucket at Thames Shipyard in New London, Connecticut, which he said was on track to cost $1,658,031, about 25% ahead of its $1,292,027 budget. Mr. Munier stated, and Mr. Amundsen agreed, that such overages would be lower once the Authority was deeper into its preventative maintenance program.

8. Mr. Amundsen then provided an update with photographs of the Oak Bluffs Terminal repairs, which he said were proceeding at a good pace and should be completed by June 15, 2020, a week earlier than initially expected.

9. Mr. Amundsen then discussed the recent Vineyard Haven transfer bridge failure, which he said had been traced to a failure of the outer race within the bridge’s sheave. It is unclear what the failure mechanism was, he said, but the repairs have been made and the bridge is now in good working order.

10. Mr. Davis noted that, while the Draft 2021 Operating Schedules were on the agenda, on Friday the Authority had received a petition from not fewer than fifty (50) Falmouth residents objecting to the continued presence of the 5:30 a.m. freight boat out of Woods Hole. Pursuant to the Authority’s Enabling Act, it now had fourteen (14) days to schedule a hearing on the petition; the hearing has been scheduled for 4:30 p.m. on Thursday, June 11, 2020, via Zoom.

11. Mr. Malkin then noted that, of the 5,000 trips run through the end of April, only eight (8) had been cancelled due to mechanical issues, which seemed to him to be a great number.

12. Mr. Davis said the draft 2020-2025 repair schedules had been presented to the Port Council for their information only. Mr. Lowell asked what vessel would be going into dry dock yet this year; Mr. Davis noted it was the M/V Katama. As a result, the freight vessel on the Vineyard route would be the M/V Woods Hole. Mr. Lowell said the operational issues were very difficult to sort out, especially in light of COVID-19, and that the staff had been doing a great job.

Mr. Anthes-Washburn asked if the repair schedule interacted with the Safety Quality Management System or was an output of it; Mr. Davis said this was the same schedule format the Authority had used for many years but that will be incorporated into the SQMS system to aid with the scheduling of preventative maintenance.

13. Mr. Rozum then reviewed the draft Budget Policy Statement for 2021, in which he noted several items that would be “fluid” due to the effects of COVID-19.

Mr. Balco said this was a time to form a committee that would review changing the Enabling Act to allow for a reserve fund of substantial size, approximately 40% to 50% of revenues, to aid the Authority in similar situations. He said he did not expect it would get into place now but that it was an appropriate time to move forward with a proposal so that these financial issues would not repeat themselves.

Page 3 of 7 Port Council Minutes – June 3, 2020 DRAFT June 12, 2020 Mr. Anthes-Washburn said the Authority should get a lot more clarity on ridership demand in the near future and asked what the schedule was for the budget process and if it should be delayed. Mr. Rozum stated that the schedule is expected to be presented to the Port Council and Board at their September meetings and approved in October. Mr. Rozum said there would be a point at which the Authority would have to set the rates for the upcoming year and that the budget timeline was set working backward from that date. Mr. Anthes- Washburn said that, by September, he hoped the Authority would be in a much better place than it was in now.

Mr. Rees said he thought the budget policy statement was good but that he did not see any mention of the recommendation from the HMS Consulting study that was completed in 2018. Mr. Rozum said he can update the statement with that information but that a lot of the recommendations that were made in 2019 were already included in the 2020 budget and, therefore, were carried into 2021.

Mr. Munier asked if the old model of assuming flat traffic based on a certain time period of data made sense given the “new normal” now facing the Authority. He said it seems that the process should be done with an open mind in terms of what 2021 demand will be like, but the question was how the budget could reflect that and what kind of participation should be expected from the Port Council and Board.

Mr. Lowell said the COVID-19 crisis has opened up the eyes of a lot of people who did not realize the Authority was not subsidized. He said he felt it would take longer than fall to really know how the Authority’s year would end and that the virus itself is secondary to how people will behave in response to the virus.

At 10:53 a.m., Mr. Shufelt ended his participation in the meeting.

Mr. Rozum said it might make sense to have an overarching COVID-19 statement as it is going to be a thread that runs through all the categories on the draft Budget Policy Statement. Because the Authority has a January-December fiscal year, it is in a bit of disadvantage in terms of planning.

Mr. Malkin asked if an estimate as to COVID-19 related expenses and revenue impacts could be established to get a handle on the pandemic’s effects on both sides of the Authority’s finances. Mr. Davis said it could, and added that he and Mr. Rozum had discussed the need for this budget to be flexible. However, the work on the budget still needed to start so the Authority could monitor summer traffic and what direction it is going in while putting together the 2021 budget.

Upon a motion from Mr. Balco and a second from Mr. Huss, the Port Council then voted 5-1 (with Mr. Rees voting no) to approve the Draft Budget Policy Statement as presented with changes that reflected the Port Council’s discussion.

14. Mr. Davis then told the Port Council that, at the Board’s March 17, 2020 meeting, he had presented a request from Plymouth & Brockton Street Railway Co. to permit its buses to

Page 4 of 7 Port Council Minutes – June 3, 2020 DRAFT June 12, 2020 use the Authority’s Woods Hole ferry terminal to run service between that site and T.F. Green Airport in Warwick, Rhode Island. The Members at that time had declined to authorize the service, citing a desire to investigate the opinion of the Town of Falmouth on the service and to also coordinate schedules with Peter Pan Bus. Co., which already provided service to and from the Woods Hole terminal.

Since then, Mr. Davis noted the request had been expanded by P&B to include service to Logan Airport as well as T.F. Green. Mr. Davis said he had not heard from the Falmouth Economic Development Investment Corp. (EDIC) as to its decision regarding the service at the Falmouth Bus Depot; additionally, Mr. Davis said he was concerned about adding service at a time when construction work was ongoing at the Woods Hole terminal.

John Cogliano, president of Plymouth & Brockton Street Railway Co., said he received a draft agreement from the Falmouth EDIC last week and that the document was under review. He said the schedule he provided to the Authority calls for three (3) round-trips to T.F. Green Airport per day, and the Boston Logan service would provide five (5) round trips per day. He said he felt the services would be of great benefit to the Authority and its customers given the capability of the service to reduce congestion at the terminal and along Woods Hole Road. He added that he felt it was in the Authority’s best interests to have more than one transportation option for its customers.

Mr. Davis said a number of issues still needed to be addressed, including how tickets would be sold and the impact on traffic at the terminal. Mr. Davis apologized for not having enough information to formulate a recommendation but asked if the Port Council wished to express an opinion on the concept via a vote.

Mr. Munier stated he felt the route to T.F. Green would be of benefit to everyone and that, if that benefit required additional routes to make the service profitable as a whole, it was a small price to pay.

Then, upon a motion from Mr. Balco and a second from Mr. Lowell, the Port Council voted 6-0 to endorse the Plymouth & Brockton service concept subject to limitations and comments by staff.

15. Mr. Rozum said the Authority was going to continue to examine the drive-on, drive-off services on the Nantucket route and look for ways to reestablish it given the lost revenue being seen due to its cancellation.

16. Mr. Munier praised the Authority’s staff for responding adeptly to the myriad changes being placed upon its service due to COVID-19. He said he appreciated the regular communication and that the staff had reacted as well as it had to the issues. Mr. Huss noted that communication on the island was much better as well and that keeping the island informed has helped everyone have a better view of the Authority.

17. In response to Mr. Anthes-Washburn’s call for public comment, Rich Saltzberg with the Martha’s Vineyard Times asked Mr. Amundsen clarifying questions regarding the

Page 5 of 7 Port Council Minutes – June 3, 2020 DRAFT June 12, 2020 Vineyard Haven transfer bridge, the Oak Bluffs terminal project, the recent gyrocompass failure on the M/V Island Home, and about the status of the Authority’s communications with the commonwealth regarding its funding.

Mr. Asimow asked if the delays in the completion of the Woods Hole terminal work for the season would affect the schedule; Mr. Davis said, with fewer vessels servicing the route, it would not.

Then, at approximately 11:22 a.m., 10:38 a.m., upon a motion from Mr. Balco and a second from Mr. Lowell, the Port Council unanimously voted to adjourn their meeting.

A TRUE RECORD ______Eric W. Shufelt, Secretary

Page 6 of 7 Port Council Minutes – June 3, 2020 DRAFT June 12, 2020

Documents and Exhibits Used at the Port Council’s June 3, 2020 Meeting

1. Agenda for the Port Council’s June 3, 2020 Meeting (posted June 1, 2020).

2. Minutes of the Port Council’s May 6, 2020 Meeting in Public Session (draft dated May 27, 2020).

3. Business Summary for the month of April 2020 (draft).

4. PowerPoint presentation, Woods Hole Terminal Reconstruction Project.

5. PowerPoint presentation, Vessel Dry-Dock and Repair Projects.

6. PowerPoint presentation, Oak Bluffs Terminal Repairs.

7. Photograph of outer race of sheave bearing on Vineyard Haven transfer bridge.

8. Notice of Public Hearing, 2021 Operating Schedules, with attachments.

9. 2020-2025 Repair Schedule as of 5/29/2020.

10. 2021 Budget Policy Statement, draft.

Page 7 of 7 Business Summary for the Month of April, 2020

Part I - Traffic Statistics Month of Month of YTD through YTD through April April April April 2019 2020 DIFF %DIFF 2019 2020 DIFF %DIFF

Number of Passengers Carried Martha's Vineyard 151,139 26,718 (124,421) -82.3% 461,145 309,800 (151,345) -32.8% Nantucket Regular 17,087 4,048 (13,039) -76.3% 54,849 37,298 (17,551) -32.0% Fast Ferry 21,649 0 (21,649) -100.0% 22,542 1,423 (21,119) -93.7% Subtotal - Nantucket 38,736 4,048 (34,688) -89.5% 77,391 38,721 (38,670) -50.0% Total 189,875 30,766 (159,109) -83.8% 538,536 348,521 (190,015) -35.3%

Number of Automobiles Carried Martha's Vineyard Regular 13,724 3,711 (10,013) -73.0% 39,340 27,084 (12,256) -31.2% Excursion 14,827 2,962 (11,865) -80.0% 52,711 36,778 (15,933) -30.2% Subtotal - M. Vineyard 28,551 6,673 (21,878) -76.6% 92,051 63,862 (28,189) -30.6% Nantucket Regular 2,043 625 (1,418) -69.4% 4,831 3,341 (1,490) -30.8% Excursion 1,922 303 (1,619) -84.2% 7,307 5,009 (2,298) -31.4% Subtotal - Nantucket 3,965 928 (3,037) -76.6% 12,138 8,350 (3,788) -31.2% Total 32,516 7,601 (24,915) -76.6% 104,189 72,212 (31,977) -30.7%

Number of Trucks Carried Martha's Vineyard Less than 20' - Regular 4,363 1,656 (2,707) -62.0% 14,106 10,475 (3,631) -25.7% Less than 20' - Excursion 3,709 1,508 (2,201) -59.3% 13,285 10,424 (2,861) -21.5% 20' and over 4,729 2,319 (2,410) -51.0% 15,398 12,541 (2,857) -18.6% sub-total - M.Vineyard 12,801 5,483 (7,318) -57.2% 42,789 33,440 (9,349) -21.8% Nantucket Less than 20' - Regular 1,103 350 (753) -68.3% 3,470 2,317 (1,153) -33.2% Less than 20' - Excursion 819 261 (558) -68.1% 3,148 2,477 (671) -21.3% 20' and over 3,162 1,449 (1,713) -54.2% 9,901 7,752 (2,149) -21.7% sub-total - Nantucket 5,084 2,060 (3,024) -59.5% 16,519 12,546 (3,973) -24.1% Total 17,885 7,543 (10,342) -57.8% 59,308 45,986 (13,322) -22.5%

Page 1 Business Summary for the Month of April, 2020

Part I - Traffic Statistics Month of Month of YTD through YTD through April April April April 2019 2020 DIFF %DIFF 2019 2020 DIFF %DIFF

Number of Cars Parked Woods Hole, Falmouth and Cataumet 6,852 628 (6,224) -90.8% 17,864 10,761 (7,103) -39.8% Hyannis, Nantucket 2,210 90 (2,120) -95.9% 3,622 1,300 (2,322) -64.1% Total 9,062 718 (8,344) -92.1% 21,486 12,061 (9,425) -43.9%

Average Length of Stay - Cars Parked (Days) Woods Hole, Falmouth and Cataumet 1.75 1.87 0.12 6.9% 1.72 1.74 0.02 1.2% Hyannis, Nantucket 2.34 5.28 2.94 125.6% 2.55 3.02 0.47 18.4% Total 1.90 1.89 (0.01) -0.5% 1.90 1.89 (0.01) -0.5%

Average Revenue per Passenger * Martha's Vineyard$ 6.90 $ 7.24 $ 0.34 4.9%$ 6.87 $ 6.86 $ (0.01) -0.1% Nantucket 22.15 17.54 (4.61) -20.8% 19.87 17.74 (2.13) -10.7% Total$ 8.04 $ 8.07 $ 0.03 0.4%$ 8.04 $ 8.07 $ 0.03 0.4%

Average Revenue per Automobile Martha's Vineyard$ 46.70 $ 55.34 $ 8.64 18.5%$ 33.03 $ 35.30 $ 2.27 6.9% Nantucket 136.11 169.58 33.47 24.6% 96.51 95.65 (0.86) -0.9% Total$ 32.30 $ 37.07 $ 4.77 14.8%$ 32.30 $ 37.07 $ 4.77 14.8%

Average Revenue per Truck Martha's Vineyard$ 111.70 $ 133.00 $ 21.30 19.1%$ 102.35 $ 109.10 $ 6.75 6.6% Nantucket 319.37 362.35 42.98 13.5% 295.89 310.58 14.69 5.0% Total$ 154.24 $ 155.24 $ 1.00 0.6%$ 154.24 $ 155.24 $ 1.00 0.6%

* Excludes any town embarkation fees.

Page 2 Business Summary for the Month of April, 2020

Part IIa- Net Income (Loss) from Operations (Monthly)

April April ACTUAL 2020 April ACTUAL 2020 ACTUAL 2019 ACTUAL 2020 vs. ACTUAL 2019 BUDGET 2020 vs. BUDGET Vs. 2020 Operating Budget

Net Income (Loss) from Operations Operating Revenues $ 7,661,469 $ 2,446,985 $ (5,214,484) $ 8,067,261 $ (5,620,276) Other Income 206,874 155,940 (50,934) 197,725 (41,785) Total Income 7,868,343 2,602,925 (5,265,418) 8,264,986 (5,662,061)

Operating Expenses 8,329,936 7,740,663 (589,273) 9,483,270 (1,742,607) Fixed Charges and Other Expenses 312,193 347,073 34,880 286,719 60,354 Total Expenses 8,642,129 8,087,736 (554,393) 9,769,989 (1,682,253)

Net Operating Income (Loss) $ (773,786) $ (5,484,811) $ (4,711,025) $ (1,505,003) $ (3,979,808)

Estimated Future Unbudgeted Expenses

Operating Revenues: Auto Revenue 1,876,766 $ 525,529 $ (1,351,237) $ 2,166,562 $ (1,641,033) Freight Revenue 3,045,151 1,471,304 (1,573,847) 3,068,989 (1,597,685) Passenger Revenue 1,994,163 285,381 (1,708,782) 2,073,956 (1,788,575) Bicycle, Mail, Misc. Voyage Rev. 79,395 (244) (79,639) 81,271 (81,515) Revenue from Terminal Operations 320,953 64,396 (256,557) 327,045 (262,649) Parking Revenue 273,857 82,683 (191,174) 277,896 (195,213) Rents 71,184 17,936 (53,248) 71,542 (53,606) Sub-Total - Operating Revenue 7,661,469 2,446,985 (5,214,484) 8,067,261 (5,620,276) Other Income: Interest Income 21,296 9,791 (11,505) 15,000 (5,209) Miscellaneous Income 185,578 146,149 (39,429) 182,725 (36,576) Sub-Total - Other Income 206,874 155,940 (50,934) 197,725 (41,785)

Total Income $ 7,868,343 $ 2,602,925 $ (5,265,418) $ 8,264,986 $ (5,662,061)

Page 3 Part IIa- Net Income (Loss) from Operations (Monthly)

April April ACTUAL 2020 April ACTUAL 2020 ACTUAL 2019 ACTUAL 2020 vs. ACTUAL 2019 BUDGET 2020 vs. BUDGET Vs. 2020 Operating Budget

Operating Expenses: Wages $ 3,167,149 $ 2,056,801 $ (1,110,348) $ 3,106,998 $ (1,050,197) Pensions Health & Welfare 1,427,699 1,555,870 128,171 1,568,961 (13,091) Payroll Taxes 208,822 188,564 (20,258) 218,628 (30,064) Depreciation 950,781 1,054,092 103,311 1,060,513 (6,421) Vessel Fuel Oil 611,157 157,099 (454,058) 606,141 (449,042) Insurance 342,866 342,004 (862) 349,784 (7,780) Direct Vessel Maintenance (Excld. Wages) 338,075 1,569,662 1,231,587 767,050 802,612 Direct Terminal Maintenance (Excld. Wages) 51,726 38,688 (13,038) 730,200 (691,512) Utilities 92,148 169,695 77,547 165,205 4,490 Other 1,139,513 608,188 (531,325) 909,790 (301,602) Sub-Total - Operating Expenses 8,329,936 7,740,663 (589,273) 9,483,270 (1,742,607)

Fixed Charges and Other Expenses: Bond Interest & Expense 270,166 306,801 36,635 246,164 60,637 Misc. Charges or Deductions 42,027 40,272 (1,755) 40,555 (283) Sub-Total - Other Expenses 312,193 347,073 34,880 286,719 60,354

Total Expenses $ 8,642,129 $ 8,087,736 $ (554,393) $ 9,769,989 $ (1,682,253)

Net Operating Income (Loss) $ (773,786) $ (5,484,811) $ (4,711,025) $ (1,505,003) $ (3,979,808)

Page 4 Budgetary Management Discussion and Analysis - April, 2020

Total operating revenues for April decreased by $5,620,276 or 69.7% versus the amount projected in the 2020 operating budget, for a total of $2,446,985 in operating revenues. Passenger revenues for the month were down $1,790,000 versus budget projections, which represents an decrease of 86.2%. Automobile revenues were down $1,640,000 or 75.7%, versus budget projections for April. Freight revenues were down $1,600,000, or 52.1%, versus budget projections for the month. Parking revenues were down during April by $195,000, or 70.2%. Concession revenues in April were down $46,000 or 100.00%. Rent revenues from barge unloading and rental car space were down $54,000, or 74.9%, in April versus budget.

During April, the vessels made a combined 770 trips. This represents a decrease of 1,102 trips, or 58.9%, versus the originally budgeted amount for the month. On the Vineyard route, 0 trips were canceled for mechanical reasons, 52 for weather related and 628 for traffic demands while 0 unscheduled trips and 4 available trips were added. On the Nantucket route, 0 trips were canceled for mechanical reasons, 36 for weather related and 390 for traffic demands while 0 unscheduled and 0 available trips were added.

Total operating expenses for the month were down $1,742,607 or 18.4%, versus the amount projected in the 2020 budget for a total of $7,740,663. Maintenance expenses for the month were down $164,000, or 7.2%, versus budget. Overhaul and dry-dock expenses for the M/V Martha's Vineyard were down $5,000; repairs for the M/V Woods Hole were up $25,000; repairs on the M/V Governor were down $188,000; the M/V Sankaty overhaul and repair expenses were up $14,000; repairs for the M/V Nantucket were up $101,000; repairs for the M/V Katama were down $3,000; repairs on the M/V Eagle were up $13,000; repairs on the M/V Gay Head were up $13,000; repairs for the M/V Island Home were up $475,000; and repairs for the M/V Iyanough were up $136,000 versus budget. Repairs to buildings and structures were down $716,000, repairs to motor vehicles were down $18,000 and repairs to office and terminal equipment was up $12,000 for the month.

Vessel fuel expense of $157,000 was down by $449,000 or 74.1% versus budget estimates. The average actual cost per gallon for vessel fuel oil in April was $1.532, including net hedging costs, while the budgeted cost was $2.219 per gallon. During April, the vessels logged 11,396 miles, which were 15,756 miles lower than budget, or a decrease of 58.0%. During April, 103,000 gallons of vessel fuel were consumed. This represents a decrease of 144,000 gallons, or 58.3%, versus budget. Insurance expenses were down $8,000 versus budget. General administrative expenses for the month were down $120,000 or 5.2%. Legal expense was down $16,000; pension expense was down $128,000, health care expense was up $54,000, Families First Coronavirus Response Act paid sick leave costs were up $82,000, disability contributions were up $3,000, unemployment contributions were down $23,000, training expense was down $10,000 and credit card expense was down $88,000.

Other income, including interest income, debt premium, grant income and license income, totaled $155,940 and was $41,785 lower than budget projections. Income deductions, including interest on funded debt and pension withdrawal, totaled $347,073 and were $60,354 higher than budget. The Authority's net operating loss for the month of April, including other income, income deductions and bond interest expense, was $5,484,811 or $3,979,808 higher than the budgeted net loss for the month.

Page 5 Business Summary for the Year-To-Date as of April, 2020 (Continued)

Part IIb- Net Income (Loss) from Operations (Year to Date)

YTD - April YTD - April YTD ACTUAL 2020 YTD - April YTD ACTUAL 2020 ACTUAL 2019 ACTUAL 2020 vs. YTD ACTUAL 2019 BUDGET 2020 vs. YTD BUDGET Vs. 2020 Operating Budget

Net Income (Loss) from Operations Operating Revenues $ 20,359,599 $ 14,766,551 $ (5,593,048) $ 21,268,587 $ (6,502,036) Other Income 788,205 738,489 (49,716) 775,438 (36,949) Total Income 21,147,804 15,505,040 (5,642,764) 22,044,025 (6,538,985)

Operating Expenses 33,204,430 36,065,684 2,861,254 37,175,905 (1,110,221) Fixed Charges and Other Expenses 1,280,285 1,352,854 72,569 1,214,810 138,044 Total Expenses 34,484,715 37,418,538 2,933,823 38,390,715 (972,177)

Net Operating Income (Loss) $ (13,336,911) $ (21,913,498) $ (8,576,587) $ (16,346,690) $ (5,566,808)

Operating Revenues: Auto Revenue $ 4,218,087 $ 3,039,892 $ (1,178,195) $ 4,923,496 $ (1,883,604) Freight Revenue 9,240,013 7,519,743 (1,720,270) 9,300,838 (1,781,095) Passenger Revenue 4,931,563 2,918,544 (2,013,019) 5,030,872 (2,112,328) Bicycle, Mail, Misc. Voyage Rev. 245,147 148,337 (96,810) 251,011 (102,674) Revenue from Terminal Operations 923,482 643,690 (279,792) 951,326 (307,636) Parking Revenue 558,051 362,640 (195,411) 566,876 (204,236) Rents 243,256 133,705 (109,551) 244,168 (110,463) Sub-Total - Operating Revenue 20,359,599 14,766,551 (5,593,048) 21,268,587 (6,502,036) Other Income: Interest Income 66,251 47,070 (19,181) 55,000 (7,930) Miscellaneous Income 721,954 691,419 (30,535) 720,438 (29,019) Sub-Total - Other Income 788,205 738,489 (49,716) 775,438 (36,949)

Total Income $ 21,147,804 $ 15,505,040 $ (5,642,764) $ 22,044,025 $ (6,538,985)

Page 6 Part IIb- Net Income (Loss) from Operations (Year to Date)

YTD - April YTD - April YTD ACTUAL 2020 YTD - April YTD ACTUAL 2020 ACTUAL 2019 ACTUAL 2020 vs. YTD ACTUAL 2019 BUDGET 2020 vs. YTD BUDGET Vs. 2020 Operating Budget

Operating Expenses: Wages $ 11,651,371 10,728,530 $ (922,841) $ 11,635,506 $ (906,976) Pensions Health & Welfare 5,385,401 5,528,662 143,261 5,525,821 2,841 Payroll Taxes 756,962 778,833 21,871 845,600 (66,767) Depreciation 3,998,570 4,246,969 248,399 4,253,667 (6,698) Vessel Fuel Oil 1,648,820 1,091,237 (557,583) 1,666,584 (575,347) Insurance 1,377,739 1,390,265 12,526 1,399,130 (8,865) Direct Vessel Maintenance (Excld. Wages) 3,509,777 8,214,319 4,704,542 6,365,263 1,849,056 Direct Terminal Maintenance (Excld. Wages) 150,606 216,763 66,157 1,414,350 (1,197,587) Utilities 450,499 692,176 241,677 651,610 40,566 Other 4,274,685 3,177,930 (1,096,755) 3,418,374 (240,444) Sub-Total - Operating Expenses 33,204,430 36,065,684 2,861,254 37,175,905 (1,110,221)

Fixed Charges and Other Expenses: Bond Interest & Expense 1,110,611 1,152,963 42,352 1,051,745 101,218 Misc. Charges or Deductions 169,674 199,891 30,217 163,065 36,826 Sub-Total - Other Expenses 1,280,285 1,352,854 72,569 1,214,810 138,044

Total Expenses 34,484,715 37,418,538 2,933,823 38,390,715 (972,177)

Net Operating Income (Loss) (13,336,911) (21,913,498) (8,576,587) (16,346,690) (5,566,808)

Page 7 Budgetary Management Discussion and Analysis: January - April, 2020

Year to date total operating revenues decreased by $6,502,037 or 30.6% versus the amount projected in the 2020 operating budget, for a total of $14,766,551 in operating revenues. Passenger revenues for the year to date were down $2,110,000 versus budget projections, which represents a 42.0% decrease. Automobile revenues were down $1,880,000, or 38.3%, versus budget projections. Freight revenues were down $1,780,000 or 19.1%, versus budget projections. Parking revenues were down, $204,000, or 36.0%, compared to budget forecast. Rent revenues from barge unloading and rental car space were down $110,000, or 45.2%, versus budget.

Year to date, the vessels made a combined 4,859 trips. This represents a decrease of 1,384 trips, or 22.2%, versus budget. On the Vineyard route, 8 trips were canceled for mechanical reasons, 127 for weather related and 842 for traffic demands, while 24 unscheduled trips and 49 available trips were added. On the Nantucket route, 0 trips were canceled for mechanical reasons, 71 for weather related and 429 for traffic demands, while 7 unscheduled trips and 13 available trips were added.

Year to date operating expenses were down $1,110,221 or 3.0%, versus the amount projected in the 2020 budget for a total of $36,065,684. Maintenance expenses for the year are up $551,000, or 4.9%, versus budget. Overhaul repairs for the M/V Martha's Vineyard were flat; the M/V Woods Hole overhaul repair expense was down $23,000; overhaul expenses for the M/V Governor were down $244,000; overhaul and dry-dock expenses for the M/V Sankaty were up $1,250,000; M/V Nantucket repair expenses were up $124,000; repairs on the M/V Katama are up $20,000; overhaul expenses for the M/V Eagle were up $172,000; repairs on the M/V Gay Head were up $11,000; M/V Island Home repair expenses were up $457,000; and overhaul and repair expenses for the M/V Iyanough was down $170,000. Terminal and dolphin and dock repairs in Vineyard Haven were down $42,000; while Oak Bluffs were down $552,000; Woods Hole were down $82,000; Nantucket were down $347,000 and were down in Hyannis by $277,000. Motor vehicle repairs were down $43,000 and other maintenance expense was down by $163,000.

Vessel fuel expense of $1,091,000 was $575,000 or 34.5%, below budget estimates. The average actual cost per gallon for vessel fuel oil was $1.872 including net hedging costs, while the budgeted cost was $2.267 per gallon. 65,448 vessel miles have been logged in the year, a decrease of 18,700 miles, or 22.2%, versus budget. 583,000 gallons of vessel fuel were consumed. This represents a decrease of 152,000 gallons or 20.7% versus budget. General administrative expenses for the year were up 0.4%, or $35,000. Legal expense was down $48,000, pension expense was down $153,000, health care costs were up $128,000, Families First Coronavirus Response Act paid sick leave costs were up $88,000, disability contributions were up $23,000, and unemployment contributions were down $84,000. Training expense was up $30,000; while credit card fees were down $53,000, telephone and communications expense was down $28,000.

Other income, including interest income, debt premium, grant revenue and license income, totaled $738,489 and was $36,949 lower than budget projections. Income deductions, including interest on funded debt and pension withdrawal, totaled $1,352,854 and were $138,044 higher than budget. Year to date, the Authority's net operating loss, including other income, income deductions and bond interest expense, was $21,913,498 or $5,566,808 higher than budget projections.

Page 8 Part III - Cash Balances Variance Variance April, 2020 vs. Budget Year to Date vs. Budget Amount Positive / (Negative) Amount Positive / (Negative)

Cash Balance - Operations Fund

Beginning Balance 7 $ 11,448,836 $ (6,184,314) $ 11,523,197 $ (1,476,803) Cash Receipts "=79-"76" 2,982,341 (8,177,144) 30,718,710 (9,348,078) Cash Receipts - Grants - - 124,525 124,525 Cash Receipts - Capital Projects - - 1,157,469 1,157,469 Cash Disbursements "-15+169" (6,555,128) 2,961,506 (32,186,375) 541,936 Cash Disbursements - Capital Projects -169 - (778,711) (778,711) Transfers to Special Purpose Funds 34-43 - - (2,682,766) (1,620,290) Ending Balance$ 7,876,049 $ (11,399,952) $ 7,876,049 $ (11,399,952)

$ 19,276,001 $ 19,276,001 Cash Balance - Special-Purpose Funds

Sinking Fund Beginning Balance$ 2,982,453 $ 1,811,485 $ 9,283,238 $ 671 Transfers from Revenue Fund - - 2,857,387 1,794,911 Income from Investments 2,188 1,438 35,991 17,341 Accrued Interest Received - - - - Debt Service Payments - - (9,191,975) - Ending Balance$ 2,984,641 $ 1,812,923 $ 2,984,641 $ 1,812,923

$ 1,171,718 $ 2,984,640.89 $ 2,984,641.00 Replacement Fund Beginning Balance$ 5,604,302 $ 1,090,335 $ 7,847,154 $ (2,716,263) Transfers from Revenue Fund - - Transfers from Bond Redemption - - - - Proceeds from Disposal of Property - - - - Income from Investments 4,111 1,311 30,119 11,769 Withdrawals - 1,655,000 (2,268,860) 5,451,140 Ending Balance$ 5,608,413 $ 2,746,646 $ 5,608,413 $ 2,746,646

$ 2,861,767 $ 5,608,412.86 Reserve Fund Beginning Balance$ 3,496,218 $ (183,132) $ 3,655,683 $ (16,817) Transfers from Revenue Fund - - (174,621) (174,621) Income from Investments 2,565 265 17,721 8,571 Transfers to Bond Redemption Acct. - - - - Ending Balance$ 3,498,783 $ (182,867) $ 3,498,783 $ (182,867)

$ 3,681,650 $ 3,498,783.53 Bond Redemption Account Beginning Balance$ 877,838 $ 2,008 $ 874,212 $ 132 Transfers from Revenue Fund - - - - Transfers from Reserve Fund - - - - Transfers to Replacement Fund - - - - Income from Investments 644 94 4,270 1,970 Ending Balance$ 878,482 $ 2,102 $ 878,482 $ 2,102

Page 9 Part III - Cash Balances Variance Variance April, 2020 vs. Budget Year to Date vs. Budget Amount Positive / (Negative) Amount Positive / (Negative)

$ 876,380 $ 878,482.49 Capital Improvement Fund Beginning Balance$ 18,857,564 $ 18,857,564 $ 504,959 $ 798 From Bond/Note Issue - 20,107,020 20,107,020 Income from Investments 13,558 13,558 36,166 36,166 Withdrawals (1,288,585) (1,288,585) (3,065,608) (2,561,447) Ending Balance$ 17,582,537 $ 17,582,537 $ 17,582,537 $ 17,582,537

$ - 0+ $ (17,582,537.00)

Part IV - Cash Transfers to Special Purpose Funds for 2020

2020 2020 Cash Transfers from Revenue Fund: Budget Estimate To Sinking Fund (for current debt service requirements) $ 12,378,612 $ 12,378,612 To Replacement Fund (2020 max. transfers - $12,808,152) 10,581,335 976,294 To Reserve Fund - - To Bond Redemption Account - -

Total Transfers to Special Purpose Funds $ 22,959,947 $ 13,354,906

* Current estimate is based on the actual cash balance as of 4/30/2020 plus projected cash receipts and disbursements for the remainder of the year, per the 2020 Operating Budget.

Page 10 Business Summary for the Month of April, 2020

Part V - Allocation of Net Operating Income by Route for 2020

Allocation of Net Operating Income by Route for 2020

Martha's Vineyard Nantucket Total Operating Revenues$ 65,913,873 $ 45,793,896 $ 111,707,769 Other Non-Service Income - Net 1,169,153 2,759,138 3,928,291 Total Income$ 67,083,026 $ 48,553,034 $ 115,636,060

% Distribution by Route 58.0% 42.0% 100.0%

Cost of Service$ 67,617,077 $ 46,566,160 $ 114,183,237

% Distribution by Route 59.2% 40.8% 100.0%

Net Operating Income by Route for 2020$ (534,051) $ 1,986,874 $ 1,452,823

% Distribution by Route -36.8% 136.8% 100.0% 2017 BUDGET $$ 370,280 0 $6,834,47794.9%

* Based on actual net operating income (loss) for the first 4 months plus 8 months of projected net operating income (loss) for the remainder of the year, per the 2020 Operating Budget

Part VI - Share of Market versus Licensed Ferry Services April Change Year to Date Change Amount vs. Prev. Yr. Amount vs. Prev. Yr.

License Fee Income$ 6,374 $ (60,967) $ 157,981 $ (2,175,972)

April Change Year to Date Change Amount vs. Prev. Yr. Amount vs. Prev. Yr.

Weather Observations # Average Maximum Temperature (Fahrenheit) 51.6 -4.2 12.9 -43.9 Total Precipitation (in water equivalent inches) 5.07 0.53 12.91 0.15 Number of Days with Measurable Precipitation 16 (6) 46 (3)

# Based on NOAA, National Climatic Data Center unedited climatological data for Barnstable Airport in Hyannis

Page 11 Part VII - Share of Market versus Licensed Ferry Services

April Change Year to Date Change Number of Passengers Carried Amount vs. Prev. Yr. Amount vs. Prev. Yr.

Martha's Vineyard

Steamship Authority 26,718 (124,421) -82.3% 309,800 (151,345) -32.8%

Hy-Line Regular 0 0 0.0% 0 0 0.0% High Speed 0 0 0.0% 0 0 0.0% Subtotal Hy-Line 0 0 0.0% 0 0 0.0%

Falmouth Ferry Service 0 0 0.0% 0 0 0.0%

SeaStreak (New Bedford) 0 0 0.0% 0 0 0.0%

SeaStreak (New York City) 0 0 0.0% 0 0 0.0%

Total * 26,718 (124,421) -82.3% 309,800 (151,345) -32.8%

Nantucket

Steamship Authority Regular 4,048 (13,039) -76.3% 37,298 (17,551) -32.0% Fast Ferry (Prior to April 2) 0 0 0.0% 1,423 530 59.4% Fast Ferry (April 2) (in service 2019) 0 0 0.0% 0 0 0.0% Fast Ferry (April 3 and after)(in service 2020) 0 (21,649) 0.0% 0 0 0.0% Subtotal - Nantucket 11,443 11 0.1% 38,721 (38,670) -50.0%

Hy-Line Regular 0 0 0.0% 0 0 0.0% HighSpeed (Prior to April 2) 0 0 0.0% 94,650 (18,645) -16.5% HighSpeed (April 2)(IYA in service 2019) 0 0 0.0% 0 0 0.0% HighSpeed (April 3 & after)(IYA in service 2020) 3,642 (34,661) -90.5% 3,642 (34,661) -90.5% Subtotal Hy-Line 35,977 1,564 4.5% 98,292 (54,891) -35.8%

Freedom Cruise Line (Harwich) 0 0 0.0% 0 0 0.0%

SeaStreak (New Bedford) 0 0 0.0% 0 0 0.0%

SeaStreak (New York City) 0 0 0.0% 0 0 0.0%

Total 7,690 (72,336) -90.4% 137,013 (93,561) -40.6%

M/V Iyanough in service 04/03/2019 - 01/03/2020 and 04/03/2020 - 01/03/2021. * Note: Island Queen passenger service is grandfathered and as such traffic counts are not included .

Page 12 Woods Hole Terminal Reconstruction Project update Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Board meeting – June 16, 2020

STAFF SUMMARY Date: June 11, 2020 File# A-651

TO: FOR: FROM:

General Dept.: Accounting X X Vote Manager Author: Mark K. Rozum

Board Subject: 2021 Budget Policy Statement X Information Members

PURPOSE: To review and approve the proposed budget policy guidelines to be used in the preparation of the Authority’s 2021 Operating Budget.

BACKGROUND: The Management Staff is in the preliminary stages of developing next year’s proposed operating budget. This includes the preparation of a vessel maintenance overhaul schedule and a tentative operating schedule.

Attached please find a copy of the proposed 2021 Budget Policy Statement. The proposed 2021 operating schedule and attached 2020-2025 vessel repair schedules will be used as the basis for estimating next year’s cost of service.

We expect to be in a position to review a preliminary 2021 Operating Budget with the Board by the September meeting. A final draft of the proposed 2021 Operating Budget will be presented for the Board’s review and approval at the Authority Meeting in October.

We will also be preparing a 5-year projection of revenues and expenses based on anticipated growth rates and other factors that could impact the need for further cost reductions and/or rate increases in the years 2021 through 2025. This projection will be included with the final draft of the operating budget.

The Port Council at their June meeting voted to recommend that the 2021 Budget Policy Statement be adopted as proposed with the amendment of maintaining flexibility due to COVID19 while creating the 2021 Operating Budget. A new category addressing the impacts of COVID19 has been added to the 2021 Budget Policy Statement.

RECOMMENDATION: The Management Staff is requesting that the attached 2021 Budget Policy Statement be adopted as proposed.

______APPROVED: ______Mark K. Rozum Robert B. Davis Treasurer/Comptroller General Manager

Page 1 2021 BUDGET POLICY STATEMENT

2021 OPERATING BUDGET

The following guidelines are to be used in the preparation of the Authority’s 2021 Operating Budget:

COVID19

All of the assumptions, forecasts and calculations used for creating the 2021 Operating Budget’s revenues and expenses will be adjusted based on developments associated with the impacts of COVID19. Management will continuously monitor these impacts and maintain flexibility during the 2021 Operating Budget process.

Operating Revenues

Projected Traffic Levels –Historically, operating revenues as based on the actual traffic statistics for the most recent twelve (12) month period. Due to the impacts of Covid-19, estimated operating revenues for the 2021 budget will initially be based on actual traffic statistics for the period of March 1, 2019 through February 28, 2020.

Please find the attached graphs showing the total number of passengers, automobiles and trucks carried on a rolling twelve (12) month basis since January 2014. Also attach please find an attached graph showing the total number of cars parked for the comparable time period.

Operating Expenses

Operating Schedule – The proposed 2021 Operating Budget will be based on the proposed 2021 operating schedules.

Maintenance and Repairs – The Authority’s vessels, terminals, vehicles and equipment shall be properly maintained in order to ensure the continuation of a safe and reliable transportation system.

Each of the Authority’s vessels will be scheduled for an approximate 4-6 week overhaul period, not including any required dry-dockings. All vessels will undergo their annual maintenance overhauls, including mandatory dry-dockings. (See attached 2020 – 2025 Repair Schedules.)

The vessels which have scheduled dry-dockings in 2021 are the M/V Martha’s Vineyard, the M/V Woods Hole, the M/V Gay Head, the M/V Governor and the M/V Sankaty.

Pending a more thorough evaluation of each of the facilities, no significant terminal repair projects are currently anticipated. Nevertheless, each of the Authority’s terminals will continue to be properly maintained and the anticipated expenses to do so will be included in the 2021 maintenance budget.

Levels of Employment –The numbers of employees in the terminals, the parking lot and shuttle bus operations, and reservations are expected to stay essentially the same as originally budgeted in 2020, while maintaining flexibility to respond to demand. Existing job vacancies are expected to be filled, when appropriate.

Vessel manning will be in accordance with all applicable legal and contractual requirements, taking into account anticipated service level demands. The Wiper-to-Oiler promotion training program, which has been developed these past couple of years, will be incorporated into vessel manning levels. In addition, the pilot qualification training and captain qualification training programs will also be reflected in vessel manning.

Training – The Authority will continue to provide training for its employees at levels that ensure safe and efficient operations, including the “Standards of Training, Certification and Watchkeeping for Seafarers (STCW) Basic Safety Training” for its vessel crews. This STCW training program began in the winter of 2006. Annually, some twenty to thirty (20-30) vessel crew members are trained in STCW so that the all fleet personnel participate over a five (5) year period. This training includes 1) personal survival, 2) fire prevention and firefighting, 3) elementary first aid, 4) crowd control and crisis management and 5) personal safety and social responsibilities.

The cost of customer service training, discrimination prevention training and other appropriate courses, such as additional radar training, Purser and Bosun training, rescue boat training, automated external defibrillator (AED) training, safety and ergonomics training, Facility Security Officer and Vessel Security Officer training, Marine Evacuation Slide (MES) training, hoisting equipment training, oil spill response training, hazardous materials (“HazMat”) handling and bridge resource management, will also be included in the proposed 2021 Operating Budget. New hire orientation and mentoring programs will also be included.

Staff will also be looking to add Environmental Health and Safety training courses, such as, confined space, fall protection, aerial lift, personal protective equipment (PPE), toxic and hazardous substances, hazardous waste operations and emergency response (Hazwoper), globally harmonized system (GHS), respirator fit testing/training as well as OSHA 10 Certification training.

Use of Information Systems Technologies – The Authority will continue to use information systems technologies to improve customer services and reduce operating costs where possible. Specifically, we will continue to work to increase the SSA presence on social media platforms and we plan to implement a dedicated Steamship Authority mobile application, which will include mobile ticketing capabilities for both traditional and high-speed services.

We will continue to evaluate technical enhancements to our website and mobile website that will allow us to integrate additional customer services features, with proper consideration and planning for necessary infrastructure improvements. Staff will continue to incorporate its training materials into the Learning Management System (LMS). The LMS, acts as the Authority’s central hub for delivering and managing it’s marine and shore side training and assessment programs. In addition, the Authority is currently in the process of implementing a Safety Quality Management System (SQMS).

Health Care – The 2021 Operating Budget will reflect the continuation of employee contributions equal to 20% of the expected annual cost of each employee’s medical coverage. In addition, any changes in coverage required by the Affordable Care Act and the Families First Coronavirus Response Act will be reflected in the annual cost estimates.

Vessel Fuel Oil – Currently, the barrel price of crude oil is trading in the $35 - $40 range while a year ago at this same time crude oil was trading in the $60 - $65 range. During the last three months, crude oil has traded between -$37 and $47. In the course of preparing the 2021 Operating Budget, the vessel fuel oil cost will reflect the then-current forecast for oil prices or the Authority’s hedge program cost cap including the hedging premium, whichever is lower.

The Authority will continue to make fuel and energy conservation a priority in both land and sea operations. Towards that end, schedule modifications and trip consolidations will continue to be made when practical.

Pensions and Other Postemployment Benefits – The 2021 Operating Budget will incorporate any additional expenses that have to be recognized due to the required adoption of additional Governmental Accounting Standards as they relate to Other Postemployment Benefits.

Utilities – The Authority will continue to pursue not only energy conservation measures, but also opportunities to reduce the cost for electric supply charges. In addition, we will continue to review telephone usage and calling plans to determine the prospects for any potential savings. The Authority will pursue opportunities to develop a Request for Proposals (RFP) for solar energy development on its properties.

Debt Administration – The Authority has evaluated its debt requirements including but not limited to advance refunding of existing debt and currently does not foresee any additional opportunities for restructuring during 2021. However, if, after additional evaluation, conditions are favorable for doing so, the Authority may pursue a restructuring.

Rents and Leases – The proposed 2021 Operating Budget will reflect changes in the negotiated or anticipated costs associated with leased properties used for the Authority’s parking operations, reservation office and bus maintenance facility.

Insurance – As the Authority’s marine and non-marine insurance policies are issued on a June 30th renewal basis, insurance expense for the first half of 2021 will be known. The Authority’s insurance program is extended with the same carriers for an additional two- year period. An allowance will be made for any projected increase in insurance premiums for the policy year beginning July 1, 2021.

Advertising – While the Authority will continue to maintain the same types of advertising placements currently being used, we re-evaluate on an annual basis the emphasis of the advertising program to determine the appropriate mix of media usage. These include, but are not limited to, billboards (Boston on I-93 southbound and, in past years, on I-195 in the Fall River area), television, radio, newspapers, magazines, internet, social media, visitors centers and regional Chamber of Commerce guide books. In general, the Authority has shifted its focus toward digital marketing strategies in recent years and anticipates continuing to do so in 2021.

License Fee Income

Projections will be made for anticipated license fee income from all licensed carriers, taking into account the most recent traffic expectations and changes in the licensed carriers’ traffic patterns.

Fund Transfers and Use of Special Purpose Funds

The Authority will maintain sufficient fund balances to meet the currently scheduled debt service requirements of $1,690,275 due September 1, 2021 for interest and $8,935,275 due March 1, 2022 for principal and interest.

In addition, the Authority will endeavor to fund next year’s cash transfers to the Replacement Fund in an amount not less than this year’s budgeted transfer of approximately $10,500,000 but not to exceed the Authority’s projected depreciation expense for 2020, currently estimated at $12,600,000.

Fares and Rates

The staff will be making all efforts to minimize the need for any rate increases. However, the 2021 Operating Budget will include additional revenues needed from proposed rate increases in order for the Authority to adequately cover next year’s projected cost of service, as prescribed in its Enabling Act.

PROJECTED STATEMENTS OF NET ASSETS (BALANCE SHEET); STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (INCOME STATEMENT); AND STATEMENTS OF CASH FLOW FOR THE YEARS 2022 - 2026

The Authority will update its five (5) year operating budget projections based on anticipated annual growth rates in traffic volume and projected increases in operating expenses, including the additional depreciation expense related to the Woods Hole terminal project. The budget will provide an indication of additional revenue (rate increases) that will be needed to generate sufficient cash flow to meet the projected cost of service, including cash requirements of the special-purpose funds, based on the assumptions used. Woods Hole, Martha's Vineyard and Nantucket Steamship Authority Total Passengers Carried to/from Martha's Vineyard and Nantucket - Based on a Rolling 12 Months

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

- Jul-19 Jul-18 Jul-17 Jul-16 Jul-15 Oct-19 Apr-20 Oct-18 Apr-19 Oct-17 Apr-18 Oct-16 Apr-17 Oct-15 Apr-16 Apr-15 Jan-20 Jan-19 Jun-19 Jan-18 Jun-18 Jan-17 Jun-17 Jan-16 Jun-16 Jan-15 Jun-15 Feb-20 Mar-20 Feb-19 Mar-19 Feb-18 Mar-18 Feb-17 Mar-17 Feb-16 Mar-16 Feb-15 Mar-15 Aug-19 Sep-19 Nov-19 Dec-19 Aug-18 Sep-18 Nov-18 Dec-18 Aug-17 Sep-17 Nov-17 Dec-17 Aug-16 Sep-16 Nov-16 Dec-16 Aug-15 Sep-15 Nov-15 Dec-15 May-19 May-18 May-17 May-16 May-15

All Passengers Martha's Vineyard Passengers Nantucket Passengers Woods Hole, Martha's Vineyard and Nantucket Steamship Authority Total Automobiles Carried to/from Martha's Vineyard and Nantucket - Based on a Rolling 12 Months

600,000

500,000

400,000

300,000

200,000

100,000

- Jul-19 Jul-18 Jul-17 Jul-16 Jul-15 Apr-20 Oct-19 Apr-19 Oct-18 Apr-18 Oct-17 Apr-17 Oct-16 Apr-16 Oct-15 Apr-15 Jan-20 Jun-19 Jan-19 Jun-18 Jan-18 Jun-17 Jan-17 Jun-16 Jan-16 Jun-15 Jan-15 Feb-20 Mar-20 Feb-19 Mar-19 Feb-18 Mar-18 Feb-17 Mar-17 Feb-16 Mar-16 Feb-15 Mar-15 Aug-19 Sep-19 Nov-19 Dec-19 Aug-18 Sep-18 Nov-18 Dec-18 Aug-17 Sep-17 Nov-17 Dec-17 Aug-16 Sep-16 Nov-16 Dec-16 Aug-15 Sep-15 Nov-15 Dec-15 May-19 May-18 May-17 May-16 May-15

All Automobiles Martha's Vineyard Automobiles Nantucket Automobiles Woods Hole, Martha's Vineyard and Nantucket Steamship Authority Total Regular and Excursion Automobiles Carried to/from Martha's Vineyard - Based on a Rolling 12 Months

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000 Jul-19 Jul-18 Jul-17 Jul-16 Jul-15 Apr-20 Oct-19 Apr-19 Oct-18 Apr-18 Oct-17 Apr-17 Oct-16 Apr-16 Oct-15 Apr-15 Jan-20 Jun-19 Jan-19 Jun-18 Jan-18 Jun-17 Jan-17 Jun-16 Jan-16 Jun-15 Jan-15 Feb-20 Mar-20 Feb-19 Mar-19 Feb-18 Mar-18 Feb-17 Mar-17 Feb-16 Mar-16 Feb-15 Mar-15 Aug-19 Sep-19 Nov-19 Dec-19 Aug-18 Sep-18 Nov-18 Dec-18 Aug-17 Sep-17 Nov-17 Dec-17 Aug-16 Sep-16 Nov-16 Dec-16 Aug-15 Sep-15 Nov-15 Dec-15 May-19 May-18 May-17 May-16 May-15

All Automobiles Regular Automobiles Excursion Automobiles Woods Hole, Martha's Vineyard and Nantucket Steamship Authority Total Regular and Excursion Automobiles Carried to/from Nantucket - Based on a Rolling 12 Months

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000 Jul-19 Jul-18 Jul-17 Jul-16 Jul-15 Apr-20 Oct-19 Apr-19 Oct-18 Apr-18 Oct-17 Apr-17 Oct-16 Apr-16 Oct-15 Apr-15 Jan-20 Jun-19 Jan-19 Jun-18 Jan-18 Jun-17 Jan-17 Jun-16 Jan-16 Jun-15 Jan-15 Feb-20 Mar-20 Feb-19 Mar-19 Feb-18 Mar-18 Feb-17 Mar-17 Feb-16 Mar-16 Feb-15 Mar-15 Aug-19 Sep-19 Nov-19 Dec-19 Aug-18 Sep-18 Nov-18 Dec-18 Aug-17 Sep-17 Nov-17 Dec-17 Aug-16 Sep-16 Nov-16 Dec-16 Aug-15 Sep-15 Nov-15 Dec-15 May-19 May-18 May-17 May-16 May-15

All Automobiles Regular Automobiles Excursion Automobiles Woods Hole, Martha's Vineyard and Nantucket Steamship Authority Total Trucks Carried to/from Martha's Vineyard and Nantucket - Based on a Rolling 12 Months

250,000

200,000

150,000

100,000

50,000

- Jul-19 Jul-18 Jul-17 Jul-16 Jul-15 Apr-20 Oct-19 Apr-19 Oct-18 Apr-18 Oct-17 Apr-17 Oct-16 Apr-16 Oct-15 Apr-15 Jan-20 Jan-19 Jun-19 Jan-18 Jun-18 Jan-17 Jun-17 Jan-16 Jun-16 Jan-15 Jun-15 Feb-20 Mar-20 Feb-19 Mar-19 Feb-18 Mar-18 Feb-17 Mar-17 Feb-16 Mar-16 Feb-15 Mar-15 Aug-19 Sep-19 Nov-19 Dec-19 Aug-18 Sep-18 Nov-18 Dec-18 Aug-17 Sep-17 Nov-17 Dec-17 Aug-16 Sep-16 Nov-16 Dec-16 Aug-15 Sep-15 Nov-15 Dec-15 May-19 May-18 May-17 May-16 May-15

All Trucks Martha's Vineyard Trucks Nantucket Trucks Woods Hole, Martha's Vineyard and Nantucket Steamship Authority Total Vehicles (Automobiles + Trucks) Carried to/from Martha's Vineyard and Nantucket - Based on a Rolling 12 Months

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

Total Vehicles Martha's Vineyard Vehicles Nantucket Vehicles Woods Hole, Martha's Vineyard and Nantucket Steamship Authority Total Daily Fee Cars Parked in Falmouth, Bourne and Hyannis, Nantucket - Based on a Rolling 12 Months

250,000

200,000

150,000

100,000

50,000

All Falmouth & Bourne Hyannis & Nantucket 2020 - 2025 Repair Schedule as of 05/29/2020

COI DRY-DOCK DRY-DOCK REPAIR SPRUCE UP STANDBY STATUS VESSEL Due Due START FINISH START FINISH START FINISH START FINISH

M/V MARTHA'S VINEYARD 11/25/2020 2022 06/11/2020 06/16/2020 (prior dry dock 01-11-2018) 09/09/2020 10/20/2020 (last dry dock 10-30-2019) 05/16/2021 05/24/2021 (Required by 10-31-2022) 2021 09/10/2021 10/21/2021 10/22/2021 11/23/2021 05/17/2022 05/22/2022 & 09/08/2022 10/22/2022 05/15/2023 05/23/2023 2023 09/06/2023 10/17/2023 10/18/2023 11/16/2023 05/15/2024 05/20/2024 09/06/2024 10/20/2024

M/V NANTUCKET 05/21/2020 2020 02/18/2020 04/17/2020 04/18/2020 05/20/2020 (prior dry dock 10-16-2015) (last dry dock 05-21-2018) 04/13/2021 05/15/2021 (Required by 10-16-2020) 2022 02/25/2022 03/29/2022 03/30/2022 05/16/2022

& 04/12/2023 05/14/2023

2024 02/24/2024 03/30/2024 03/31/2024 05/14/2024

04/10/2025 05/15/2025

M/V EAGLE 01/16/2021 2019 12/02/2019 01/09/2020 (prior dry dock 02-29-2016) 05/27/2020 06/04/2020 (last dry dock 12-31-2018) 2020 10/21/2020 12/07/2020 12/08/2020 01/09/2021 (Required by 02-28-2021) 06/03/2021 06/11/2021 & 12/03/2021 01/10/2022 06/01/2022 06/09/2022 2022 10/23/2022 12/06/2022 12/07/2022 01/08/2023 05/30/2023 06/07/2023 & 11/29/2023 01/09/2024 05/30/2024 06/07/2024 2024 10/21/2024 12/07/2024 12/08/2024 01/09/2025

M/V ISLAND HOME 05/20/2021 2020 01/10/2020 02/23/2020 02/24/2020 03/30/2020 (prior dry dock 03-08-2018) 06/05/2020 06/10/2020 (last dry dock 02-25-2020) & 01/10/2021 02/23/2021 (Required by 02-25-2023) 06/12/2021 06/17/2021 2022 01/11/2022 02/24/2022 02/25/2022 03/29/2022 06/10/2022 06/15/2022 & 01/09/2023 02/22/2023 06/08/2023 06/16/2023 2024 01/10/2024 02/23/2024 02/24/2024 03/24/2024 06/08/2024 06/16/2024

Repair 2020-2025 as of 05-29-20 2020-2025 Repair Schedule as of 05-29-2020.xlsx 2020 - 2025 Repair Schedule as of 05/29/2020

COI DRY-DOCK DRY-DOCK REPAIR SPRUCE UP STANDBY STATUS VESSEL Due Due START FINISH START FINISH START FINISH START FINISH

M/V WOODS HOLE 02/14/2021 2021 01/10/2020 02/17/2020 03/17/2021 03/31/2021 (prior dry dock 05-27-2016) (last dry dock 01-31-2019) 2021 01/07/2021 02/14/2021 02/15/2021 03/16/2021 (Required by 05-27-2021) & 01/11/2022 02/24/2022

2023 01/09/2023 02/16/2023 02/17/2023 03/15/2023

01/10/2024 02/23/2024

M/V SANKATY 03/04/2021 2019 10/02/2019 01/15/2020 01/16/2020 03/03/2020 01/01/2021 03/31/2021 (prior dry dock 11-14-2016) 05/25/2021 06/02/2021 (last dry dock 01-13-2020) 2020 10/18/2020 11/25/2020 09/10/2021 10/22/2021 (Required by 11-14-2021) & 10/22/2021 12/11/2021 12/12/2021 01/10/2022

2022 10/20/2022 11/21/2022

& 10/18/2023 12/04/2023 12/05/2023 01/09/2024

M/V KATAMA 05/16/2021 2019 2020 05/27/2020 07/07/2020 07/08/2020 08/06/2020 04/01/2021 06/02/2021 (prior dry dock 03-23-2015) (last dry dock 03-13-2017) & 06/03/2021 07/02/2021 (Required by 03-31-2019) 2022 05/23/2022 07/06/2022 07/07/2022 08/08/2022

& 05/30/2023 06/28/2023

2024 05/30/2024 07/07/2024 07/08/2024 08/06/2024

& 05/28/2025 06/26/2025

M/V GAY HEAD 08/30/2022 2019 08/07/2020 09/08/2020 01/01/2021 01/09/2021 (prior dry dock 01-03-2014) 10/19/2021 01/04/2022 (prior dry dock 01-15-2016) 2021 07/03/2021 08/13/2021 08/14/2021 09/09/2021 (last dry dock 08-16-2017) (Required by 08-31-2019) & 08/09/2022 09/07/2022

2023 06/29/2023 08/09/2023 08/10/2023 09/08/2023

& 08/07/2024 09/05/2024

2025 06/27/2025 08/07/2025 08/08/2025 09/06/2025

Repair 2020-2025 as of 05-29-20 2020-2025 Repair Schedule as of 05-29-2020.xlsx 2020 - 2025 Repair Schedule as of 05/29/2020

COI DRY-DOCK DRY-DOCK REPAIR SPRUCE UP STANDBY STATUS VESSEL Due Due START FINISH START FINISH START FINISH START FINISH

M/V GOVERNOR 05/16/2020 2021 2020 03/25/2020 05/14/2020 (prior dry dock 05-16-2016) 10/21/2020 10/26/2020 Winterization (last dry dock 04-17-2018) (Required by 04-30-2021) & 02/09/2021 04/05/2021 04/06/2021 05/14/2021 10/19/2021 10/24/2021 Winterization

2022 03/15/2022 05/16/2022 10/20/2022 10/25/2022 Winterization

& 02/10/2023 03/14/2023 03/15/2023 05/16/2023

2024 03/13/2024 05/14/2024 10/21/2024 10/26/2024 Winterization

& 02/12/2025 03/16/2025 03/17/2025 05/15/2025

M/V IYANOUGH 04/07/2021 2020 01/04/2020 01/09/2020 Winterization (prior dry dock 03-27-2014) 01/10/2020 02/20/2020 Engine Overhaul (#1 & #2?) (prior dry dock 04-01-2016) 2020 02/21/2020 03/09/2020 03/10/2020 03/30/2020 (last dry dock 03-20-2018) (Required by 03-30-2020) 01/04/2021 01/09/2021 Winterization 03/02/2021 03/31/2021

01/05/2022 01/10/2022 Winterization 02/22/2022 03/14/2022 03/15/2022 03/29/2022

01/03/2023 01/08/2023 Winterization 01/09/2023 03/12/2023 Engine Overhaul (#3 & #4) 03/13/2023 03/30/2023

01/04/2024 01/09/2024 Winterization 01/10/2024 02/20/2024 Engine Overhaul (#1 & #2?) 02/21/2024 03/09/2024 03/10/2024 03/30/2024

2020 2021 2022 2023 2024 2025

Repair 2020-2025 as of 05-29-20 2020-2025 Repair Schedule as of 05-29-2020.xlsx