August 2020 Port Council Meeting

Our mission is to operate a safe, effective, and reliable transportation system for the islands of Martha’s Vineyard and Nantucket with a commitment to sustainability, accessibility, our port communities, and public engagement.

Posted August 3, 2020 8:45 AM

WOODS HOLE, MARTHA’S VINEYARD & NANTUCKET STEAMSHIP AUTHORITY

PORT COUNCIL Wednesday, August 5, 2020 9:00 AM

First Floor Meeting Room (Room #103), SSA Administrative Offices 228 Palmer Avenue, Falmouth, MA 02540

NOTE: Due to ongoing concerns regarding COVID-19, the Steamship Authority meeting room will be CLOSED TO THE PUBLIC during this session. The public may participate in the meeting, including Public Comment, by going to zoom.us and using meeting ID 851-3455-6877. Participants can also use the same meeting ID and join telephonically by calling one of the following numbers: 669-900-6833, 346-248-7799, 929-436-2866, 253-215-8782, 301-715-8592, or 312-626- 6799.

1. Recording Announcement

2. Minutes

a) Approval of the Minutes of the July 1, 2020 Meeting

3. Management Report

a) COVID-19

b) Business Summary for the Month of June 2020

c) Updates on Current Projects including:

1. M/V Katama Dry Dock 2. HMS Status

d) Report on Martha’s Vineyard Summer and Fall 2021 Operating Schedules

e) Revisions to the Customer Policies and Procedures Handbook

f) Solar Panel Feasibility Study at Thomas B. Landers Rd.

g) Demonstration in Mobile Ticketing Application

4. Treasurer’s Report

a) Report on the 2019 Audit

5. Old/New Business

6. Public Comment

These agenda items are those that the Chairman reasonably anticipates will be discussed at the meeting. Not all items listed may in fact be discussed, and other items not listed because they are not anticipated by the Chairman to be discussed may also be brought up for discussion to the extent permitted by law. The Port Council’s practice is to reserve time under New Business for topics that the Chairman does not anticipate will be discussed at the meeting. Other topics not listed but discussed by the Port Council during previous meetings might also be brought up for discussion by other Port Council Members under Old Business even though the Chairman does not anticipate a discussion about any such topics.

228 Palmer Avenue, Falmouth MA 02540 Telephone: (508) 548-5011 1 August 2020 Port Council Meeting

MINUTES

OF THE

PORT COUNCIL

OF THE

WOODS HOLE, MARTHA’S VINEYARD AND NANTUCKET STEAMSHIP AUTHORITY

July 1, 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; Robert S.C. Munier of Falmouth; Nathaniel E. Lowell of Nantucket; and George J. Balco of Tisbury (all of whom participated via Zoom videoconferencing).

Port Council Members absent: Mark H. Rees of Fairhaven.

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 9:03 a.m.

2. Mr. Anthes-Washburn announced that Mr. Driscoll was making a video and audio recording of today’s meeting, as was Noah Asimow (representing the Vineyard Gazette).

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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 and 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. Huss and a second by Mr. Balco, the Port Council voted 6-0 to approve the minutes of their meeting in public session on June 3, 2020.

5. Mr. Davis provided an update on the Authority’s activities and performance regarding the COVID-19 pandemic. Preliminary traffic numbers through June 30, 2020, show the Authority has carried 58% of expected passengers (down 143,000), 85% of automobiles (down 7,700) and 93% of trucks (down 1,000). Based on just the traffic figures, Mr. Davis said a $2,500,000 shortfall in revenues is expected for the month, which is likely to be more than $3,000,000 when other revenue sources are factored in.

Mr. Davis noted passenger numbers have been increasing, which is to be expected at this time of year, but the gap between actual traffic and forecasted traffic remains fairly steady. In April, for example, the Authority was approximately 5,300 passengers per day behind budget; in June, that figure was approximately 4,800 passengers per day.

Mr. Rozum then reviewed advanced reservation figures by month, a seven-day moving average of traffic, and credit card receipts by date versus 2019 to further illustrate the Authority’s performance. Mr. Balco asked if the Authority was now in a position to be realizing positive cash flow; Mr. Rozum said yes, with Mr. Davis adding it was not as much as he would like, but it was, at least, positive.

Mr. Davis said the current modified schedule has been extended to July 16, 2020, and he anticipated it would be further extended through the middle of August. Based on the demands seen to date, he said this level of service should be able to meet or exceed demand. The M/V Iyanough remains on a four (4) round-trip daily schedule, and the ridership numbers have been slowly increasing on that route. Reservations have been capped at 50% of the vessel’s capacity, and so far there have been no cutoffs based on that figure. If demand increases, then the fifth trip may be added, he said.

Mr. Huss noted he has seen customers on board vessels not wearing face masks and that he was informed of a situation wherein a woman wearing one was made to feel uncomfortable by a group of individuals who were not, so she got up and moved. Mr. Huss asked if the customer should have informed the purser, and Mr. Davis said yes, or any crew member. He added that crew members are going around telling people to wear their face coverings, but as soon as the crew member walks away some passengers simply remove them at that point. Announcements are made on board the vessel and at the terminals, and

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copious signage has been posted, he said. Nonetheless, staff receive near-daily reports of passengers not wearing masks and it is a challenge, since the Authority does not have the ability to issue fines and, if a passenger indicates he or she has a medical condition that precludes the wearing of a mask, Authority personnel cannot ask any other questions. He said the Authority also stresses daily the need for its employees to wear a mask. Overall, Mr. Davis said Authority personnel are doing a great job in this regard despite the challenges.

Mr. Huss asked about the new electrostatic sprayer the Authority is using to clean, and Mr. Davis said the loaner was received at the end of last week. He said he was hoping it could be used to clean the M/V Iyanough in between trips, but that potential application turned out to be impractical so it is being used on the overnight cleanings of the vessel.

Mr. Munier stated the Authority needs to constantly remind its employees the importance of wearing a mask, not only for the protection of the customers but their coworkers as well.

6. Mr. Rozum then reviewed the May 2020 business summary, which showed that the Authority carried fewer passengers (90,495, down 67.9%), automobiles (22,844, down 45.7%) and trucks (13,078, down 34.5%) than it had in May 2019. The total income for the month was approximately $11,190,000, while total expenses were approximately $10,027,000, for a net operating income of approximately $1,163,000, which was approximately $3,252,000 less than anticipated in the 2020 budget. Mr. Rozum said year- to-date losses were approximately $22,792,000, which was $8,819,000 more than anticipated in the budget.

Mr. Balco said he would like the Port Council to recommend to the Board that they establish a subcommittee to revise Section 9 of the Authority’s Enabling Act to allow for larger reserve funds to be built up by the Authority that would cover these circumstances.. Mr. Lowell asked if that had not been done already; Mr. Davis said the Authority was having ongoing discussion with the Executive Office of Administration and Finance in this regard and, while the priorities had been the immediate cash needs of the Authority, the long-range picture needed to be considered as well. Mr. Lowell asked if the motion needed to specify how much would build up in the reserve fund; Mr. Balco said it would be up to the subcommittee to review and determine proposed changes.

The Port Council, upon Mr. Balco’s motion and Mr. Huss’ second, then voted to make the recommendation to the Authority Board.

7. Mr. Cloutier provided an update on the Woods Hole Terminal Reconstruction Project and shared some recent photographs from the site. He noted the Authority tested a vessel docking in the new Slip No. 2 and it went well. He anticipates the slip will be open on Friday, July 3, 2020, for use over the holiday weekend. He said the side-loading platform should be available for use the following week and the railings were being installed.

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Mr. Shufelt said the pavers on the passenger walkway looked nice, and Mr. Cloutier said the film that had been on the paver bricks was able to be cleaned off and the installation went well.

Mr. Munier asked how the passenger float was constructed, and Mr. Cloutier said it was basically a barge with an aluminum deck that is eight (8) to nine (9) feet above the barge structure.

Mr. Davis said once the passenger pier was finished that side loading of vessels would be possible from both Slip No. 2 and Slip No. 3.

7. Mr. Amundsen then provided an update with photographs on the dry dock of the M/V Katama at Thames Shipyard in New London, Connecticut, which he said had only started days earlier. The project’s budget is $788,507, he said.

8. Mr. Amundsen then provided an update with photographs of the Oak Bluffs Terminal repairs, which he said concluded on time and on budget. He discussed Piling No. 2, which encountered resistance while being driven so it was secured using a cement jacket. Mr. Shufelt asked if the pile was driven into the cement, and Mr. Amundsen clarified the cement casting was made around the piling after it was driven to its maximum possible depth. Mr. Davis said the Authority’s engineering firm will start on specifications for the remaining repairs so the dock can be back to its full functionality in 2021.

9. Mr. Davis said following the public hearing on June 11, 2020, regarding the 2021 Draft Operating Schedules, staff was still working on evaluating the comments from the hearing and those received via email. The hearing did make clear there were no objections to the Nantucket portion of the schedule or for the winter and spring operating schedules on the Vineyard route, so those were being presented for approval. By and large, he said, those schedules were the same as what was approved in 2019 and 2020, with only a few adjustments due to dates and repair schedules.

The Port Council then, upon a motion from Mr. Balco and a second from Mr. Lowell, voted 6-0 to recommend approval of the operating schedules for 2021 on the Nantucket route and the 2021 operating schedules for the winter and spring on the Vineyard route.

10. In response to a question from Mr. Huss, Mr. Davis said the Authority was continuing to work with the U.S. Coast Guard regarding a recent incident in which a passenger aboard the M/V Gay Head was found in Hyannis Harbor by a Hy-Line Cruises vessel.

11. Mr. Davis presented an update to the Medical Travel Policy, relating a recent incident with a customer who was trying to get off-island to pick up a loved one at a Boston hospital and bring him back to his Island residence. Mr. Davis said the policy allows for either

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reservation staff or the terminal agent to make a decision regarding preferential boarding in circumstances when a customer must travel without delay due to an urgent health issue; in the case of this customer, there was some ambiguity regarding whether or not the policy would apply. Therefore, Mr. Davis said staff was recommending that the language be changed to eliminate that ambiguity and to state that it would apply in similar situations, which he said would be an improvement to the policy.

The Port Council then, upon a motion from Mr. Balco and a second from Mr. Lowell, voted 6-0 to recommend approval of the change in the Medical Travel Policy as presented.

12. Mr. Driscoll provided an update on the second round of the high-speed passenger book promotion, which was authorized by the Board following the delay of the high-speed service to Nantucket due to COVID-19. The second round of the sale ran from June 8-21, 2020, during which time the Authority sold an additional 997 ticket books, for a total sold during 2020 of 2,407 books. While that total is still below the average sales since 2012, the second round increased this year’s sales by 71%, he said.

13. Mr. Davis stated the Authority was preparing to dispose of surplus property in accordance with the terms of its Procurement Policy. The property includes, but is not limited to, more than one (1) dozen pallets of computers, printers, scanners, power supplies, routers, servers and monitors; various older vehicles and related equipment; as well as four (4) shuttle buses powered by compressed natural gas. The only source of CNG fuel on the Cape recently shut down, so the buses are of no use to the Authority’s operations. Mr. Davis said representatives from Metrowest Regional Transportation Authority inspected the buses and have expressed interest in purchasing them for their operations.

The Port Council then, upon a motion from Mr. Balco and a second from Mr. Huss, voted 6-0 to recommend to the Board that the general manager be authorized to arrange for the disposal of the surplus property as recommended by staff and in accordance with the Authority’s Procurement Policy.

14. Mr. Lowell thanked everyone for their efforts to restore the freight drive-on, drive-off services on the Nantucket route, stating that the service is important not only to the truckers but the Authority as it can help fill the late boat with trucks that would otherwise have to run during peak hours. Mr. Davis said an agreement with the unions was forthcoming and that materials were en route to help employees perform the services safely.

15. Mr. Davis said RSM signed off on the 2019 financial statements the prior day and thanked Mr. Rozum and his team for their promptness in responding to the auditors’ many requests during the process.

16. In response to a request for public comment, Dukes County Commissioner Leon Brathwaite thanked the Authority for its efforts to amend the Medical Transportation

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Policy. Regarding the disposal of surplus equipment, he reminded the Authority to be sure that all the hard drives were wiped, even those on scanners and printers. Mr. Davis confirmed that the hard drives had been removed from the relevant equipment.

17. Rachel Self identified herself as the customer to whom Mr. Davis referred during discussion of the Medical Travel Policy. She said she was very grateful to the Authority for changing the policy so that similar situations would not happen again. She said the Authority is the only option for people who need to get off-island with a vehicle and it seems that the process of doing so in an emergency has become more adversarial, which she said is unfortunate. She asked that the Authority increase its employee education so these requests are approached from a place of common sense and empathy. Mr. Davis said part of the process following the change in policy would be working with personnel so they understand the importance of these situations. Mr. Anthes-Washburn thanked Ms. Self and said he hoped this fix would make for a better process.

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

A TRUE RECORD ______Eric W. Shufelt, Secretary

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Documents and Exhibits Used at the Port Council’s July 1, 2020 Meeting

1. Agenda for the Port Council’s July 1, 2020 Meeting, posted June 29, 2020.

2. Minutes of the Port Council’s June 3, 2020 Meeting in Public Session (draft dated June 25, 2020).

3. Chart, Advanced Reservation Activity By Month, All Routes as of June 21, 2020 and June 28, 2020.

4. Chart, Traffic Statistics Comparison, 2020-2019, Using a Seven-Day Moving Average.

5. Chart, Advanced Reservation Activity By Month Comparison, 2020 vs. 2019.

6. Chart, Percent of 2019 Credit Card Receipts By Date, Using Seven-Day Moving Average.

7. Chart, Daily Vehicle Reservation Activity Comparison, 2020 vs. 2019, May 1st to June 28, Using Seven-Day Moving Average.

8. Business Summary, May 2020 (draft).

9. PowerPoint presentation, Woods Hole Terminal Reconstruction Project.

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

11. PowerPoint presentation, Oak Bluffs Terminal Repairs.

12. Unnumbered staff summary, 2021 Winter, Spring, Summer and Fall Operating Schedules for the Nantucket Route, and 2021 Winter and Spring Operating Schedules for the Vineyard Route, undated.

13. Redlined copy, “Summary of the Authority’s Policies Governing When Customers’ Vehicles May be Boarded on a Preferential Basis,” undated.

14. Staff Summary #COMM 2020-03, Review of Pre-Season Promotion for High-Speed Ticket Books, dated June 25, 2020.

15. Unnumbered staff summary, Disposal of Surplus Property, dated June 30, 2020 (draft).

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Business Summary for the Month of June, 2020

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

Number of Passengers Carried Martha's Vineyard 269,169 162,447 (106,722) -39.6% 955,062 548,413 (406,649) -42.6% Nantucket Regular 25,892 22,100 (3,792) -14.6% 103,393 72,471 (30,922) -29.9% Fast Ferry 39,495 8,951 (30,544) -77.3% 96,506 11,630 (84,876) -87.9% Subtotal - Nantucket 65,387 31,051 (34,336) -52.5% 199,899 84,101 (115,798) -57.9% Total 334,556 193,498 (141,058) -42.2% 1,154,961 632,514 (522,447) -45.2%

Number of Automobiles Carried Martha's Vineyard Regular 32,823 28,463 (4,360) -13.3% 95,203 68,785 (26,418) -27.7% Excursion 11,575 8,978 (2,597) -22.4% 78,132 51,573 (26,559) -34.0% Subtotal - M. Vineyard 44,398 37,441 (6,957) -15.7% 173,335 120,358 (52,977) -30.6% Nantucket Regular 5,741 5,347 (394) -6.9% 14,147 11,612 (2,535) -17.9% Excursion 1,046 854 (192) -18.4% 9,993 6,728 (3,265) -32.7% Subtotal - Nantucket 6,787 6,201 (586) -8.6% 24,140 18,340 (5,800) -24.0% Total 51,185 43,642 (7,543) -14.7% 197,475 138,698 (58,777) -29.8%

Number of Trucks Carried Martha's Vineyard Less than 20' - Regular 5,304 4,886 (418) -7.9% 24,613 18,613 (6,000) -24.4% Less than 20' - Excursion 2,800 2,883 83 3.0% 19,560 15,536 (4,024) -20.6% 20' and over 5,576 5,002 (574) -10.3% 26,430 21,173 (5,257) -19.9% sub-total - M.Vineyard 13,680 12,771 (909) -6.6% 70,603 55,322 (15,281) -21.6% Nantucket Less than 20' - Regular 1,030 935 (95) -9.2% 5,791 4,095 (1,696) -29.3% Less than 20' - Excursion 501 510 9 1.8% 4,395 3,514 (881) -20.0% 20' and over 3,603 3,384 (219) -6.1% 17,299 13,733 (3,566) -20.6% sub-total - Nantucket 5,134 4,829 (305) -5.9% 27,485 21,342 (6,143) -22.4% Total 18,814 17,600 (1,214) -6.5% 98,088 76,664 (21,424) -21.8%

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Business Summary for the Month of June, 2020

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

Number of Cars Parked Woods Hole, Falmouth and Cataumet 16,100 7,668 (8,432) -52.4% 47,488 21,029 (26,459) -55.7% Hyannis, Nantucket 4,484 1,504 (2,980) -66.5% 12,108 3,198 (8,910) -73.6% Total 20,584 9,172 (11,412) -55.4% 59,596 24,227 (35,369) -59.3%

Average Length of Stay - Cars Parked (Days) Woods Hole, Falmouth and Cataumet 2.07 2.29 0.22 10.6% 1.93 2.01 0.08 4.1% Hyannis, Nantucket 2.59 3.16 0.57 22.0% 2.54 3.15 0.61 24.0% Total 1.90 1.89 (0.01) -0.5% 1.90 1.89 (0.01) -0.5%

Average Revenue per Passenger * Martha's Vineyard$ 7.13 $ 7.23 $ 0.10 1.4%$ 6.98 $ 7.01 0.03$ 0.4% Nantucket 23.63 20.37 (3.26) -13.8% 22.02 18.80 (3.22) -14.6% Total $ 8.04 $ 8.07 $ 0.03 0.4% $ 8.04 $ 8.07 0.03$ 0.4%

Average Revenue per Automobile Martha's Vineyard $ 68.15 $ 77.83 $ 9.68 14.2% $ 47.52 $ 54.00 6.48$ 13.6% Nantucket 202.39 - (202.39) -100.0% 142.30 83.51 (58.79) -41.3% Total $ 32.30 $ 37.07 $ 4.77 14.8% $ 32.30 $ 37.07 4.77$ 14.8%

Average Revenue per Truck Martha's Vineyard $ 122.48 $ 126.23 $ 3.75 3.1% $ 109.17 $ 116.13 6.96$ 6.4% Nantucket 345.34 352.34 7.00 2.0% 312.61 326.22 13.61 4.4% Total $ 154.24 $ 155.24 $ 1.00 0.6% $ 154.24 $ 155.24 1.00$ 0.6%

* Excludes any town embarkation fees.

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Business Summary for the Month of June, 2020

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

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

Net Income (Loss) from Operations Operating Revenues $ 13,095,425 $ 10,609,074 $ (2,486,351) $ 13,818,210 $ (3,209,136) Other Income 322,019 255,856 (66,163) 290,225 (34,369) Total Income 13,417,444 10,864,930 (2,552,514) 14,108,435 (3,243,505)

Operating Expenses 8,995,441 7,922,665 (1,072,776) 9,757,555 (1,834,890) Fixed Charges and Other Expenses 303,358 343,104 39,746 286,435 56,669 Total Expenses 9,298,799 8,265,769 (1,033,030) 10,043,990 (1,778,221)

Net Operating Income (Loss) $ 4,118,645 $ 2,599,161 $ (1,519,484) $ 4,064,445 $ (1,465,284)

Estimated Future Unbudgeted Expenses

Operating Revenues: Auto Revenue 4,400,194 $ 4,281,041 $ (119,153) $ 5,033,972 $ (752,931) Freight Revenue 3,460,165 3,290,866 (169,299) 3,493,129 (202,263) Passenger Revenue 3,592,464 1,873,373 (1,719,091) 3,620,512 (1,747,139) Bicycle, Mail, Misc. Voyage Rev. 158,322 65,919 (92,403) 159,323 (93,404) Revenue from Terminal Operations 447,084 453,577 6,493 467,573 (13,996) Parking Revenue 907,532 544,378 (363,154) 920,159 (375,781) Rents 129,664 99,920 (29,744) 123,542 (23,622) Sub-Total - Operating Revenue 13,095,425 10,609,074 (2,486,351) 13,818,210 (3,209,136) Other Income: Interest Income 45,019 6,862 (38,157) 15,500 (8,638) Miscellaneous Income 277,000 248,994 (28,006) 274,725 (25,731) Sub-Total - Other Income 322,019 255,856 (66,163) 290,225 (34,369)

Total Income $ 13,417,444 $ 10,864,930 $ (2,552,514) $ 14,108,435 $ (3,243,505)

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

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

Operating Expenses: Wages $ 3,686,297 $ 2,883,452 $ (802,845) $ 3,507,080 $ (623,628) Pensions Health & Welfare 1,479,095 1,363,259 (115,836) 1,452,085 (88,826) Payroll Taxes 244,001 196,582 (47,419) 244,876 (48,294) Depreciation 943,586 1,149,215 205,629 1,052,589 96,626 Vessel Fuel Oil 715,116 385,449 (329,667) 751,574 (366,125) Insurance 347,599 361,687 14,088 349,786 11,901 Direct Vessel Maintenance (Excld. Wages) 155,709 372,125 216,416 1,024,335 (652,210) Direct Terminal Maintenance (Excld. Wages) 94,501 249,002 154,501 38,200 210,802 Utilities 48,534 148,122 99,588 170,635 (22,513) Other 1,281,003 813,772 (467,231) 1,166,395 (352,623) Sub-Total - Operating Expenses 8,995,441 7,922,665 (1,072,776) 9,757,555 (1,834,890)

Fixed Charges and Other Expenses: Bond Interest & Expense 261,395 307,917 46,522 246,164 61,753 Misc. Charges or Deductions 41,963 35,187 (6,776) 40,271 (5,084) Sub-Total - Other Expenses 303,358 343,104 39,746 286,435 56,669

Total Expenses $ 9,298,799 $ 8,265,769 $ (1,033,030) $ 10,043,990 $ (1,778,221)

Net Operating Income (Loss) $ 4,118,645 $ 2,599,161 $ (1,519,484) $ 4,064,445 $ (1,465,284)

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Budgetary Management Discussion and Analysis - June, 2020

Total operating revenues for June decreased by $3,209,136 or 23.2% versus the amount projected in the 2020 operating budget, for a total of $10,609,074 in operating revenues. Passenger revenues for the month were down $1,747,000 versus budget projections, which represents an decrease of 48.3%. Automobile revenues were down $753,000 or 15.0%, versus budget projections for June. Freight revenues were down $202,000, or 5.8%, versus budget projections for the month. Parking revenues were down during June by $376,000, or 40.8%. Concession revenues in June were down $101,000 or 100.00%. Rent revenues from barge unloading and rental car space were down $24,000, or 19.1%, in June versus budget.

During June, the vessels made a combined 1,987 trips. This represents a decrease of 465 trips, or 19.0%, versus the originally budgeted amount for the month. On the Vineyard route, 0 trips were canceled for mechanical reasons, 0 for weather related and 320 for traffic demands while 2 unscheduled trips and 26 available trips were added. On the Nantucket route, 12 trips were canceled for mechanical reasons, 0 for weather related and 190 for traffic demands while 21 unscheduled and 8 available trips were added.

Total operating expenses for the month were down $1,834,890 or 18.8%, versus the amount projected in the 2020 budget for a total of $7,922,665. Maintenance expenses for the month were down $556,000, or 31.5%, versus budget. Repair expenses for the M/V Martha's Vineyard were down $75,000; repairs for the M/V Woods Hole were up $21,000; repairs on the M/V Governor were up $78,000; the M/V Sankaty repair expenses were up $18,000; repairs for the M/V Nantucket were up $147,000; overhaul and repair expneses for the M/V Katama were down $831,000; repairs on the M/V Eagle were down $37,000; repairs on the M/V Gay Head were up $53,000; repairs for the M/V Island Home were down $46,000; and repairs for the M/V Iyanough were up $15,000 versus budget. Repairs to buildings and structures were up $174,000, repairs to motor vehicles were down $13,000 and repairs to office and terminal equipment was down $2,000 for the month.

Vessel fuel expense of $385,000 was down by $366,000 or 48.7% versus budget estimates. The average actual cost per gallon for vessel fuel oil in May was $1.446, including net hedging costs, while the budgeted cost was $2.207 per gallon. During June, the vessels logged 29,866 miles, which were 11,182 miles lower than budget, or a decrease of 27.2%. During June, 270,000 gallons of vessel fuel were consumed. This represents a decrease of 58,000 gallons, or 17.8%, versus budget. Insurance expenses were up $12,000 versus budget. General administrative expenses for the month were down $269,000 or 12.2%. Legal expense was up $24,000; pension expense was down $63,000, health care expense was down $40,000, Families First Coronavirus Response Act paid sick leave costs were up $14,000, disability contributions were up $35,000, unemployment contributions were up $6,000, training expense was down $19,000 and credit card expense was down $48,000.

Other income, including interest income, debt premium, grant income and license income, totaled $251,838 and was $73,387 lower than budget projections. Income deductions, including interest on funded debt and pension withdrawal, totaled $346,338 and were $61,753 higher than budget. The Authority's net operating income for the month of June, including other income, income deductions and bond interest expense, was $2,599,161 or $1,465,284 lower than the budgeted net income for the month.

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Business Summary for the Year-To-Date as of June, 2020 (Continued)

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

YTD - June YTD - June YTD ACTUAL 2020 YTD - June 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 $ 44,391,220 $ 31,425,429 $ (12,965,791) $ 46,497,274 $ (15,071,845) Other Income 1,364,246 1,187,951 (176,295) 1,301,888 (113,937) Total Income 45,755,466 32,613,380 (13,142,086) 47,799,162 (15,185,782)

Operating Expenses 51,910,912 50,751,721 (1,159,191) 55,911,312 (5,159,591) Fixed Charges and Other Expenses 1,899,729 2,054,235 154,506 1,796,029 258,206 Total Expenses 53,810,641 52,805,956 (1,004,685) 57,707,341 (4,901,385)

Net Operating Income (Loss) $ (8,055,175) $ (20,192,576) $ (12,137,401) $ (9,908,179) $ (10,284,397)

Operating Revenues: Auto Revenue $ 11,690,712 $ 9,384,094 $ (2,306,618) $ 13,505,134 $ (4,121,040) Freight Revenue 16,280,856 13,264,653 (3,016,203) 16,370,726 (3,106,073) Passenger Revenue 11,535,079 5,651,268 (5,883,811) 11,638,132 (5,986,864) Bicycle, Mail, Misc. Voyage Rev. 527,329 294,538 (232,791) 534,872 (240,334) Revenue from Terminal Operations 1,732,363 1,400,403 (331,960) 1,790,641 (390,238) Parking Revenue 2,171,611 1,160,994 (1,010,617) 2,202,767 (1,041,773) Rents 453,270 269,479 (183,791) 455,002 (185,523) Sub-Total - Operating Revenue 44,391,220 31,425,429 (12,965,791) 46,497,274 (15,071,845) Other Income: Interest Income 141,929 59,105 (82,824) 86,000 (26,895) Miscellaneous Income 1,222,317 1,128,846 (93,471) 1,215,888 (87,042) Sub-Total - Other Income 1,364,246 1,187,951 (176,295) 1,301,888 (113,937)

Total Income $ 45,755,466 $ 32,613,380 $ (13,142,086) $ 47,799,162 $ (15,185,782)

14 Page 6 August 2020 Port Council Meeting

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

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

Operating Expenses: Wages $ 18,889,796 16,110,087 $ (2,779,709) $ 18,723,599 $ (2,613,512) Pensions Health & Welfare 8,582,317 7,951,960 (630,357) 8,409,327 (457,367) Payroll Taxes 1,274,586 1,115,705 (158,881) 1,398,138 (282,433) Depreciation 5,892,936 6,356,341 463,405 6,359,084 (2,743) Vessel Fuel Oil 3,131,725 1,724,365 (1,407,360) 3,109,805 (1,385,440) Insurance 2,068,572 2,093,956 25,384 2,098,701 (4,745) Direct Vessel Maintenance (Excld. Wages) 4,031,298 8,932,538 4,901,240 7,657,418 1,275,120 Direct Terminal Maintenance (Excld. Wages) 465,554 653,240 187,686 1,747,900 (1,094,660) Utilities 572,722 1,040,656 467,934 982,166 58,490 Other 7,001,406 4,772,873 (2,228,533) 5,425,174 (652,301) Sub-Total - Operating Expenses 51,910,912 50,751,721 (1,159,191) 55,911,312 (5,159,591)

Fixed Charges and Other Expenses: Bond Interest & Expense 1,646,201 1,778,568 132,367 1,552,279 226,289 Misc. Charges or Deductions 253,528 275,667 22,139 243,750 31,917 Sub-Total - Other Expenses 1,899,729 2,054,235 154,506 1,796,029 258,206

Total Expenses 53,810,641 52,805,956 (1,004,685) 57,707,341 (4,901,385)

Net Operating Income (Loss) (8,055,175) (20,192,576) (12,137,401) (9,908,179) (10,284,397)

15 Page 7 August 2020 Port Council Meeting

Budgetary Management Discussion and Analysis: January - June, 2020

Year to date total operating revenues decreased by $15,071,846 or 32.4% versus the amount projected in the 2020 operating budget, for a total of $31,425,429 in operating revenues. Passenger revenues for the year to date were down $6,00,000 versus budget projections, which represents a 51.4% decrease. Automobile revenues were down $4,100,000 or 30.5%, versus budget projections. Freight revenues were down $3,100,000 or 19.0%, versus budget projections. Parking revenues were down, $1,040,000, or 47.3%, compared to budget forecast. Rent revenues from barge unloading and rental car space were down 186,000, or 40.8%, versus budget.

Year to date, the vessels made a combined 8,176 trips. This represents a decrease of 2,731 trips, or 25.0%, versus budget. On the Vineyard route, 12 trips were canceled for mechanical reasons, 129 for weather related and 1,761 for traffic demands, while 26 unscheduled trips and 115 available trips were added. On the Nantucket route, 12 trips were canceled for mechanical reasons, 75 for weather related and 935 for traffic demands, while 28 unscheduled trips and 27 available trips were added.

Year to date operating expenses were down $5,159,591 or 9.2%, versus the amount projected in the 2020 budget for a total of $50,751,721. Maintenance expenses for the year are down $245,000 or 1.7%, versus budget. Repairs for the M/V Martha's Vineyard were down 87,000; the M/V Woods Hole repair expense was down $7,000; repair expenses for the M/V Governor were down $324,000; overhaul and dry-dock expenses for the M/V Sankaty were up $1,290,000; M/V Nantucket repair expenses were up $215,000; repairs on the M/V Katama are down $812,000; overhaul expenses for the M/V Eagle were up $115,000; repairs on the M/V Gay Head were up $56,000; M/V Island Home repair expenses were up $547,000; and overhaul and repair expenses for the M/V Iyanough was down $114,000. Terminal and dolphin and dock repairs in Vineyard Haven were down $38,000; while Oak Bluffs were down $387,000; Woods Hole were down $108,000; Nantucket were down $367,000 and were down in Hyannis by $306,000. Motor vehicle repairs were down $75,000 and other maintenance expense was down by $198,000.

Vessel fuel expense of $1,720,000 was $1,390,000 or 44.6%, below budget estimates. The average actual cost per gallon for vessel fuel oil was $1.916 including net hedging costs, while the budgeted cost was $2.235 per gallon. 115,788 vessel miles have been logged in the year, a decrease of 40,008 miles, or 25.7%, versus budget. 1,032,000 gallons of vessel fuel were consumed. This represents a decrease of 336,000 gallons or 24.6% versus budget. General administrative expenses for the year were down 6.2%, or $809,000. Legal expense was up $11,000, pension expense was down $458,000, health care costs were down $121,000, Families First Coronavirus Response Act paid sick leave costs were up $122,000, disability contributions were up $81,000, and unemployment contributions were down $85,000. Training expense was down $14,000 and credit card fees were down $230,000.

Other income, including interest income, debt premium, grant revenue and license income, totaled $13,838,420 and was $12,291,532 higher than budget projections. Income deductions, including interest on funded debt and pension withdrawal, totaled $2,048,422 and were $263,493 higher than budget. Year to date, the Authority's net operating loss, including other income, income deductions and bond interest expense, was $20,192,575 or $10,284,396 higher than budget projections.

16 Page 8 August 2020 Port Council Meeting

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

Cash Balance - Operations Fund

Beginning Balance 7 $ 20,218,285 $ (736,684) $ 11,523,197 $ (1,476,803) Cash Receipts "=79-"76" 10,633,854 (987,112) 47,281,421 (15,367,851) Cash Receipts - Grants - - 12,389,704 12,389,704 Cash Receipts - Capital Projects - - 1,157,469 1,157,469 Cash Disbursements "-15+169" (8,070,212) (857,060) (46,108,387) 1,860,907 Cash Disbursements - Capital Projects -169 - (778,711) (778,711) Transfers to Special Purpose Funds 34-43 - - (2,682,766) (365,571) Ending Balance $ 22,781,927 $ (2,580,856) $ 22,781,927 $ (2,580,856)

$ 25,362,783 $ 25,362,783 Cash Balance - Special-Purpose Funds

Sinking Fund Beginning Balance $ 2,986,241 $ 559,054 $ 9,283,238 $ 671 Transfers from Revenue Fund - - 2,857,387 540,192 Income from Investments 1,072 (428) 38,663 17,763 Accrued Interest Received - - - - Debt Service Payments - - (9,191,975) - Ending Balance $ 2,987,313 $ 558,626 $ 2,987,313 $ 558,626

$ 2,428,687 $ 2,987,312.19 $ 2,987,313.00 Replacement Fund Beginning Balance $ 5,611,419 $ 2,902,802 $ 7,847,154 $ (2,716,263) Transfers from Revenue Fund - - Transfers from Bond Redemption - - - - Proceeds from Disposal of Property - - - - Income from Investments 2,013 313 35,138 13,238 Withdrawals - 155,000 (2,268,860) 5,761,140 Ending Balance $ 5,613,432 $ 3,058,115 $ 5,613,432 $ 3,058,115

$ 2,555,317 $ 5,613,432.40 Reserve Fund Beginning Balance $ 3,500,659 $ (183,341) $ 3,655,683 $ (16,817) Transfers from Revenue Fund - - (174,621) (174,621) Income from Investments 1,256 (1,044) 20,853 7,053 Transfers to Bond Redemption Acct. - - - - Ending Balance $ 3,501,915 $ (184,385) $ 3,501,915 $ (184,385)

$ 3,686,300 $ 3,501,914.90 Bond Redemption Account Beginning Balance $ 878,953 $ 1,973 $ 874,212 $ 132 Transfers from Revenue Fund - - - - Transfers from Reserve Fund - - - - Transfers to Replacement Fund - - - - Income from Investments 315 (235) 5,056 1,606 Ending Balance $ 879,268 $ 1,738 $ 879,268 $ 1,738

17 Page 9 August 2020 Port Council Meeting

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

$ 877,530 $ 879,268.76 Capital Improvement Fund Beginning Balance $ 13,335,343 $ (6,664,657) $ 504,959 $ 798 From Bond/Note Issue - 20,107,020 107,020 Income from Investments 4,787 4,787 49,562 49,562 Withdrawals - 500,000 (7,321,411) (6,317,250) Ending Balance $ 13,340,130 $ (6,159,870) $ 13,340,130 $ (6,159,870)

$ 19,500,000 $ 13,340,130.07 $ 25,659,870.00

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 7,035,643 To Reserve Fund - - To Bond Redemption Account - -

Total Transfers to Special Purpose Funds $ 22,959,947 $ 19,414,255

* Current estimate is based on the actual cash balance as of 06/30/2020 plus projected cash receipts and disbursements for the remainder of the year, per the 2020 Operating Budget.

18 Page 10 August 2020 Port Council Meeting

Business Summary for the Month of June, 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$ 61,020,620 $ 42,117,341 $ 103,137,961 Other Non-Service Income - Net 1,198,789 2,652,514 3,851,303 Total Income$ 62,219,409 $ 44,769,855 $ 106,989,264

% Distribution by Route 58.2% 41.8% 100.0%

Cost of Service$ 64,262,967 $ 45,992,364 $ 110,255,331

% Distribution by Route 58.3% 41.7% 100.0%

Net Operating Income by Route for 2020$ (2,043,558) $ (1,222,509) $ (3,266,067)

% Distribution by Route 62.6% 37.4% 100.0% 2017 BUDGET $$ 370,280 0 $6,834,47794.9%

* Based on actual net operating income (loss) for the first 6 months plus 6 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 June Change Year to Date Change Amount vs. Prev. Yr. Amount vs. Prev. Yr.

License Fee Income $ 91,768 $ (66,994) $ 280,955 $ (2,052,998)

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

Weather Observations # Average Maximum Temperature (Fahrenheit) 76.7 3.1 17.0 -32.1 Total Precipitation (in water equivalent inches) 1.48 -4.26 16.96 -5.33 Number of Days with Measurable Precipitation 9 (7) 69 (12)

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

19 Page 11 August 2020 Port Council Meeting

Part VII - Share of Market versus Licensed Ferry Services

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

Martha's Vineyard

Steamship Authority 162,447 (106,722) -39.6% 548,413 (406,649) -42.6%

Hy-Line Regular 0 0 0.0% 0 0 0.0% High Speed 3,187 (14,255) -81.7% 3,187 (20,581) -86.6% Subtotal Hy-Line 3,187 0 0.0% 3,187 (20,581) -86.6%

Falmouth Ferry Service 500 (1,906) -79.2% 598 (2,587) -81.2%

SeaStreak (New Bedford) 4,983 (6,086) -55.0% 5,373 (10,187) -65.5%

SeaStreak (New York City) 97 (676) -87.5% 97 (1,234) -92.7%

Total * 171,214 (129,645) -43.1% 557,668 (441,238) -44.2%

Nantucket

Steamship Authority Regular 22,100 (3,792) -14.6% 72,471 (30,922) -29.9% 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) 8,951 (30,544) -77.3% 10,207 (85,406) -89.3% Subtotal - Nantucket 31,051 (34,336) -52.5% 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) 50,660 (26,832) -34.6% 72,134 (103,903) -59.0% Subtotal Hy-Line 50,660 (26,832) -34.6% 166,784 (124,133) -42.7%

Freedom Cruise Line (Harwich) 0 (2,772) -100.0% 0 (3,416) -100.0%

SeaStreak (New Bedford) 4,125 (2,211) -34.9% 4,620 (5,451) -54.1%

SeaStreak (New York City) 69 (47) -100.0% 69 (566) -100.0%

Total 85,905 (66,198) -43.5% 255,574 (249,364) -49.4%

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 .

20 Page 12 August 2020 Port Council Meeting

MV Katama Dry Dock Thames Shipyard

21 August 2020 Port Council Meeting

MV Katama New Port Rudder & Stock Installed

22 August 2020 Port Council Meeting

MV Katama Anchor Windlass Overhaul

23 August 2020 Port Council Meeting

MV Katama Main Deck Hydro Blast and Coat

24 August 2020 Port Council Meeting

Katama Dry Dock Repair Cost Analysis

Contract Item Item Description Credit Cost 001 & 002 Dry Docking and Hull Inspection $55,790 003, 004 & 005 Hull Painting Blast & Coat, Anodes and Temp Services & Sea Valves 94,226 006 Shafts, Bearings 83,388 007 Port / Stbd Propellers 28,960 008 Port / Stbd Rudder Assemblies 89,757 009 Hull Plating and Repair 100,000 010 Superstructure Blast and Paint above Rub Rail 91,000 012 Grid Coolers 21,000 013 Steering System Upgrades 91,612 014 Bow Thruster Overhaul 51,334 015 Blast and Coast Steering Gear Flat 59,440 Transportation 22,000 Total Contract Items 788,507

Change Orders Description C001,C002,C003,C004,C005 Blast and Coat Underwater Hull Areas 154,057 C006, CO20 Pressure Wash Keel Coolers (6sets), remove keel cooler guards, renew plates 25,098 C007,C008 Rig Alternators out of vessel, Clean, Dip and Bake 16,606 C009,C010 Remove and overhaul Aux Generator, Replace rear main generator oil seal 58,229 C011,C012 Repair Crack in Skeg, Remove engine, Remove existing plate hull plate 5,249 CO13,CO16,CO17 Steel renewal upper cabin side, Renew damaged side shell, Port hull repair 36,508 C014,CO15m Overhaul (2) Fire Pumps and (1) general service pump, Overhaul Anchor Windlass 41,377 CO18 Replace concrete 5,257 CO19, Crop/renew wasted deck stbd iwo stbd exhaust. 7,874 Total Change Orders 350,255

Grand Total Contract and Change Orders 1,138,762

25 August 2020 Port Council Meeting DRAFT – July 30, 2020

PURPOSE:

To recommend that the Members approve the Authority’s 2021 Summer and Fall Operating Schedules for the Martha’s Vineyard route and to provide the Members with a draft report explaining the Authority’s reasons for approving the Authority’s proposed 2021 Summer Operating Schedules for the Martha’s Vineyard route, which were the subject of a petition filed by 58 Falmouth residents pursuant to Section 15A of the Authority’s Enabling Act (“Section 15A”), so that the Members can issue the report on those proposed schedules in accordance with Section 15A.

BACKGROUND:

After the Authority advertised its proposed 2021 Operating Schedules in April and May 2020, it received a petition from 58 Falmouth residents on May 29, 2020 objecting to the proposed scheduling of the 5:30 a.m. freight trip from Woods Hole during the Authority’s proposed 2021 Summer Operating Schedules for the Martha’s Vineyard route and asking that the Authority hold a public hearing on those proposed schedules pursuant to Section 15A. The Authority conducted that public hearing on June 11, 2020. Section 15A of the Enabling Act now requires the Authority, after considering the testimony at the public hearing, to issue a report either maintaining its original proposed schedules, or making modifications to them, and explaining their reasons therefor.

The staff has prepared the accompanying draft report for the Members explaining the reasons for their recommendation that the Authority maintain its original proposed 2021 Summer Operating Schedule for the Martha’s Vineyard route.

At their August 5, 2020 meeting, the Port Council voted to recommend [ ].

26 August 2020 Port Council Meeting DRAFT – July 30, 2020

RECOMMENDATION:

It is recommended that the Members: . issue the Authority’s report on the proposed 2021 Summer Operating Schedules for the Martha’s Vineyard route in the form accompanying this staff summary, with whatever revisions they may determine to be appropriate; . approve the Authority’s 2021 Summer Operating Schedules for the Martha’s Vineyard route as set forth in the attachment to this staff summary for the reasons explained in their report; and . also approve the Authority’s 2021 Fall Operating Schedules for the Martha’s Vineyard route as similarly set forth in the attachment to this staff summary.

______Robert B. Davis, General Manager

- 2 -

27 August 2020 Port Council Meeting

Proposed 2021 Summer Operating Schedules

for the

Martha’s Vineyard Route

28 August 2020 Port Council Meeting 2021 Martha's Vineyard 05/19/2021 - 06/23/2021

TRIP LV WH DUE VH DUE OB VESSEL TRIP LV VH LV OB DUE WH 45 45 45 Daily WH 200 5:30 AM 6:15 AM Daily NAN/MAR 6 6:00 AM 6:45 AM Daily 201 5:30 AM 6:15 AM GOV 202 6:30 AM 7:15 AM HAZ/Wed Daily 5 6:00 AM 6:45 AM IHM/NAN 8 7:00 AM 7:45 AM Daily 203 6:30 AM 7:15 AM HAZ/M-Sat WH 204 7:30 AM 8:15 AM Daily 7 7:00 AM 7:45 AM NAN/MAR 10 8:15 AM 9:00 AM Daily 205 7:30 AM 8:15 AM GOV 206 8:35 AM 9:20 AM Daily 9 8:15 AM 9:00 AM IHM/NAN 12 9:30 AM 10:15 AM Daily 207 8:35 AM 9:20 AM WH 208 9:50 AM 10:35 AM HAZ/M-Sat Daily 11 9:30 AM 10:15 AM NAN/MAR 14 10:45 AM 11:30 AM Daily 209 9:50 AM 10:35 AM GOV 210 11:05 AM 11:50 AM Daily 13 10:45 AM 11:30 AM IHM/NAN 16 12:00 PM 12:45 PM Daily 211 11:05 AM 11:50 AM WH 212 12:20 PM 1:05 PM Daily 15 12:00 PM 12:45 PM NAN/MAR 18 1:15 PM 2:00 PM Daily 213 12:20 PM 1:05 PM GOV 214 1:35 PM 2:20 PM Daily 17 1:15 PM 2:00 PM IHM/NAN 20 2:30 PM 3:15 PM Daily 215 1:35 PM 2:20 PM WH 216 2:50 PM 3:35 PM Daily 19 2:30 PM 3:15 PM NAN/MAR 22 3:45 PM 4:30 PM Daily 217 2:50 PM 3:35 PM HAZ/Wed GOV 218 4:05 PM 4:50 PM Daily 21 3:45 PM 4:30 PM IHM/NAN 24 5:00 PM 5:45 PM Daily 219 4:05 PM 4:50 PM WH 220 5:20 PM 6:05 PM Daily 23 5:00 PM 5:45 PM NAN/MAR 26 6:15 PM 7:00 PM Daily 221 5:20 PM 6:05 PM GOV 222 6:30 PM 7:15 PM Daily 25 6:15 PM 7:00 PM IHM/NAN 28 7:15 PM 8:00 PM Daily 223 6:30 PM 7:15 PM WH WH 224 ** 7:30 PM 8:15 PM Daily 27 7:30 PM 8:15 PM NAN/MAR 30 8:30 PM 9:15 PM 225 ** 7:45 PM 8:30 PM GOV 226 ** 8:45 PM 9:30 PM Daily 29 8:30 PM 9:15 PM IHM/NAN 32 9:30 PM 10:15 PM 227 ** 8:45 PM 9:30 PM WH Daily 31 9:45 PM 10:30 PM NAN/MAR

M/V Nantucket -TBD based on repair schedule. M/V Martha's Vineyard - TBD based on repair schedule. M/V Island Home - TBD based on repair schedule. M/V Nantucket - TBD based on repair schedule. Bold indicates freight vessel - limited passenger capacity Freight vessel trips will not appear on pocket schedules or color brochures. During peak travel periods, such as school vacation weeks, unscheduled trips may be added to meet traffic demands. ** Unscheduled freight trips available to operate, if needed.

M/V Nantucket or Triple crew - Operates 7 days a week from 6:00am - 10:30pm. M/V Martha's Vineyard

M/V Island Home or Triple crew - Operates 7 days a week from 6:00am - 10:15pm. M/V Nantucket * Hazardous trips Monday - Friday and non-hazardous when running on Saturdays and Sundays M/V Woods Hole Triple crew - Operates 7 days a week from 5:30am - 7:15pm and available to operate until 9:30pm, if needed.

M/V Governor Triple crew - Operates 7 days a week from 5:30am - 7:15pm and available to operate until 9:30pm, if needed.

29 Draft: 03-09-2020 Proposed: xx-xx-2020 Approved: xx-xx-2020 August 2020 Port Council Meeting 2021 Martha's Vineyard 06/24/2021 - 09/09/2021

TRIP LV WH DUE VH DUE OB VESSEL TRIP LV VH LV OB DUE WH 45 45 Daily NAN 200 5:30 AM 6:15 AM Daily MAR 6 6:00 AM 6:45 AM Daily 201 5:30 AM 6:15 AM GOV 202 6:30 AM 7:15 AM HAZ/Wed Daily 5 6:00 AM 6:45 AM IHM 8 7:00 AM 7:45 AM Daily 203 6:30 AM 7:15 AM NAN 204 7:30 AM 8:15 AM M-F 229 6:45 AM 7:30 AM HAZ SAN 230 7:45 AM 8:30 AM Daily 7 7:00 AM 7:45 AM MAR 10 8:15 AM 9:00 AM Daily 205 7:30 AM 8:15 AM HAZ/Sat GOV 206 8:35 AM 9:20 AM Daily 9 8:15 AM 9:00 AM IHM 12 9:30 AM 10:15 AM Daily 207 8:35 AM 9:20 AM NAN 208 9:50 AM 10:35 AM M-F 231 9:00 AM 9:45 AM SAN 232 10:15 AM 11:00 AM HAZ Daily 11 9:30 AM 10:15 AM MAR 14 10:45 AM 11:30 AM Daily 209 9:50 AM 10:35 AM GOV 210 11:05 AM 11:50 AM HAZ/Sat Daily 13 10:45 AM 11:30 AM IHM 16 12:00 PM 12:45 PM Daily 211 11:05 AM 11:50 AM NAN 212 12:20 PM 1:05 PM M-F 233 11:30 AM 12:15 PM SAN 232 12:45 PM 1:30 PM Daily 15 12:00 PM 12:45 PM MAR 18 1:15 PM 2:00 PM Daily 213 12:20 PM 1:05 PM GOV 214 1:35 PM 2:20 PM Daily 17 1:15 PM 2:00 PM IHM 20 2:30 PM 3:15 PM Daily 215 1:35 PM 2:20 PM NAN 216 2:50 PM 3:35 PM 235 * 2:00 PM 2:45 PM SAN 236 * 3:15 PM 4:00 PM Daily 19 2:30 PM 3:15 PM MAR 22 3:45 PM 4:30 PM Daily 217 2:50 PM 3:35 PM HAZ/Wed GOV 218 4:05 PM 4:50 PM Daily 21 3:45 PM 4:30 PM IHM 24 5:00 PM 5:45 PM Daily 219 4:05 PM 4:50 PM NAN 220 5:20 PM 6:05 PM Daily 23 5:00 PM 5:45 PM MAR 26 6:15 PM 7:00 PM Daily 221 5:20 PM 6:05 PM GOV 222 6:30 PM 7:15 PM Daily 25 6:15 PM 7:00 PM IHM 28 7:15 PM 8:00 PM F,S,S 223 6:30 PM 7:15 PM NAN 224 7:30 PM 8:15 PM M-TH 223 6:30 PM 7:15 PM NAN 224 ** 7:30 PM 8:15 PM Daily 27 7:30 PM 8:15 PM MAR 30 8:30 PM 9:15 PM F,S,S 225 ** 7:45 PM 8:30 PM GOV 226 ** 8:45 PM 9:30 PM Daily 29 8:30 PM 9:15 PM IHM 32 9:30 PM 10:15 PM F,S,S 227 ** 8:45 PM 9:30 PM NAN Daily 31 9:45 PM 10:30 PM MAR

Bold indicates freight vessel - limited passenger capacity. Freight vessel trips will not appear on pocket schedules or color brochures. During peak travel periods, such as school vacation weeks, unscheduled trips may be added to meet traffic demands. Trips 205 & 210 will not operate as hazardous on 07/04/20 and 09/07/20 *Unscheduled trips on Monday through Friday that are available to operate, if needed. **Unscheduled trips on Mon, Tues, Wed & Thurs that are available to operate, if needed.

M/V Martha's Vineyard Triple crew - Operates 7 days a week from 6:00am - 10:30pm.

M/V Island Home Triple crew - Operates 7 days a week from 6:00am - 10:15pm. M/V Governor Triple crew - Operates Monday through Thursday from 5:30am to 7:15pm, Fridays, Saturdays and Sundays from 5:30am to 9:30pm.

M/V Nantucket Triple crew - Operates Monday through Thursday from 5:30am to 7:15pm, Fridays, Saturdays and Sundays from 5:30am to 9:30pm.

M/V Sankaty Single crew - Operates Monday through Friday from 6:45am to 1:30pm. 30 Draft: 03-09-2020 Proposed: xx-xx-2020 Approved: xx-xx-2020 August 2020 Port Council Meeting 2021 Martha's Vineyard

09/10/2021 - 10/18/2021

TRIP LV WH DUE VH DUE OB VESSEL TRIP LV VH LV OB DUE WH 45 45 45 Daily KAT 200 5:30 AM 6:15 AM Daily NAN 6 6:00 AM 6:45 AM Daily 201 5:30 AM 6:15 AM GOV 202 6:30 AM 7:15 AM Daily 5 6:00 AM 6:45 AM IHM 8 7:00 AM 7:45 AM Daily 203 6:30 AM 7:15 AM HAZ/M-Sat KAT 204 7:30 AM 8:15 AM HAZ/Wed Daily 7 7:00 AM 7:45 AM NAN 10 8:15 AM 9:00 AM Daily 205 7:30 AM 8:15 AM GOV 206 8:35 AM 9:20 AM Daily 9 8:15 AM 9:00 AM IHM 12 9:30 AM 10:15 AM Daily 207 8:35 AM 9:20 AM KAT 208 9:50 AM 10:35 AM HAZ/M-Sat Daily 11 9:30 AM 10:15 AM NAN 14 10:45 AM 11:30 AM Daily 209 9:50 AM 10:35 AM GOV 210 11:05 AM 11:50 AM Daily 13 10:45 AM 11:30 AM IHM 16 12:00 PM 12:45 PM Daily 211 11:05 AM 11:50 AM KAT 212 12:20 PM 1:05 PM Daily 15 12:00 PM 12:45 PM NAN 18 1:15 PM 2:00 PM Daily 213 12:20 PM 1:05 PM GOV 214 1:35 PM 2:20 PM Daily 17 1:15 PM 2:00 PM IHM 20 2:30 PM 3:15 PM Daily 215 1:35 PM 2:20 PM KAT 216 2:50 PM 3:35 PM Daily 19 2:30 PM 3:15 PM NAN 22 3:45 PM 4:30 PM Daily 217 2:50 PM 3:35 PM HAZ/Wed GOV 218 4:05 PM 4:50 PM Daily 21 3:45 PM 4:30 PM IHM 24 5:00 PM 5:45 PM Daily 219 4:05 PM 4:50 PM KAT 220 5:20 PM 6:05 PM Daily 23 5:00 PM 5:45 PM NAN 26 6:15 PM 7:00 PM Daily 221 5:20 PM 6:05 PM GOV 222 6:30 PM 7:15 PM Daily 25 6:15 PM 7:00 PM IHM 28 7:15 PM 8:00 PM Daily 223 6:30 PM 7:15 PM KAT KAT 224 ** 7:30 PM 8:15 PM Daily 27 7:30 PM 8:15 PM NAN 30 8:30 PM 9:15 PM 225 ** 7:45 PM 8:30 PM GOV 226 ** 8:45 PM 9:30 PM Daily 29 8:30 PM 9:15 PM IHM 32 9:30 PM 10:15 PM 227 ** 8:45 PM 9:30 PM KAT Daily 31 9:45 PM 10:30 PM NAN

M/V Martha's Vineyard 10/20/18 - 10/22/18

Bold indicates freight vessel - limited passenger capacity. Freight vessel trips will not appear on pocket schedules or color brochures. During peak travel periods, such as school vacation weeks, unscheduled trips may be added to meet traffic demands. ** Unscheduled freight trips available to operate, if needed.

M/V Nantucket Triple crew - Operates 7 days a week from 6:00am - 10:30pm.

M/V Island Home Triple crew - Operates 7 days a week from 6:00am - 10:15pm. * Hazardous trips Monday - Friday and non-hazardous when running on Saturdays and Sundays M/V Governor Triple crew - Operates 7 days a week from 5:30am - 7:15pm and available to operate until 9:30pm, if needed.

M/V Katama Triple crew - Operates 7 days a week from 5:30am - 7:15pm and available to operate until 9:30pm, if needed.

31 Draft: 03-09-2020 Proposed: xx-xx-2020 Approved: xx-xx-2020 August 2020 Port Council Meeting

Proposed 2021 Fall Operating Schedules

for the

Martha’s Vineyard Route

32 August 2020 Port Council Meeting 2021 Martha's Vineyard

10/19/2021 - 01/04/2022

TRIP LV WH DUE VH DUE OB VESSEL TRIP LV VH LV OB DUE WH 45 45

Daily KAT 200 5:30 AM 6:15 AM Daily NAN/MAR 6 6:00 AM 6:45 AM Daily 5 6:00 AM 6:45 AM IHM 8 7:00 AM 7:45 AM Daily 203 6:30 AM 7:15 AM HAZ/M-Sat KAT 204 7:30 AM 8:15 AM HAZ/W Daily 7 7:00 AM 7:45 AM NAN/MAR 10 8:15 AM 9:00 AM Daily 9 8:15 AM 9:00 AM IHM 12 9:30 AM 10:15 AM Daily 207 * 8:35 AM 9:20 AM HAZ/M-F KAT 208 9:50 AM 10:35 AM HAZ/M-Sat Daily 11 9:30 AM 10:15 AM NAN/MAR 14 10:45 AM 11:30 AM Daily 13 10:45 AM 11:30 AM IHM 16 12:00 PM 12:45 PM Daily 211 11:05 AM 11:50 AM KAT 212 * 12:20 PM 1:05 PM HAZ/M-F Daily 15 12:00 PM 12:45 PM NAN/MAR 18 1:15 PM 2:00 PM Daily 17 1:15 PM 2:00 PM IHM 20 2:30 PM 3:15 PM Daily 215 1:35 PM 2:20 PM HAZ/W KAT 216 2:50 PM 3:35 PM Daily 19 2:30 PM 3:15 PM NAN/MAR 22 3:45 PM 4:30 PM Daily 21 3:45 PM 4:30 PM IHM 24 5:00 PM 5:45 PM Daily 219 4:05 PM 4:50 PM KAT 220 5:20 PM 6:05 PM Daily 23 5:00 PM 5:45 PM NAN/MAR 26 6:15 PM 7:00 PM Daily 25 6:15 PM 7:00 PM IHM 28 7:15 PM 8:00 PM Daily 223 6:30 PM 7:15 PM KAT F&Sun KAT 224 ** 7:30 PM 8:15 PM Daily 27 7:30 PM 8:15 PM NAN/MAR 30 8:30 PM 9:15 PM Daily 29 8:30 PM 9:15 PM IHM 32 9:30 PM 10:15 PM F&Sun 227 ** 8:45 PM 9:30 PM KAT Daily 31 9:45 PM 10:30 PM NAN/MAR

M/V Nantucket 10/16/2021 - 11/23/2021 M/V Martha's Vineyard 11/24/2021 - 01/04/2022

Bold indicates freight vessel - limited passenger capacity. Freight vessel trips will not appear on pocket schedules or color brochures. During peak travel periods, such as school vacation weeks, unscheduled trips may be added to meet traffic demands.

* Trips 207 and 212 may operate as Hazardous on Monday through Friday, if needed. ** Unscheduled freight trips on Monday through Thursday and Saturday are available to operate, if needed.

M/V Katama will not operate on Thanksgiving Day (11/25/2021) M/V Katama will not operate on Christmas Day (12/25/2021) or New Years Day (01/01/2022)

M/V Nantucket or Triple crew - Operates 7 days a week from 6:00am - 10:30pm. M/V Martha's Vineyard

M/V Island Home Triple crew - Operates 7 days a week from 6:00am - 10:15pm.

M/V Katama Triple crew - Operates Monday through Thursday & Saturday from 5:30am to 7:15pm, Friday and Sunday 5:30am to 9:30pm.

* Hazardous trips Monday - Friday and non-hazardous when running on Saturdays and Sundays

Proposed:33 xx-xx-2020 Draft: 03-09-2020 Approved: xx-xx-2020 August 2020 Port Council Meeting DRAFT – July 30, 2020

Report Issued under Section 15A of the Authority’s Enabling Act

on the Proposed 2021 Summer Operating Schedules of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority

Introduction

Section 15A of the Enabling Act of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the “SSA”) requires the SSA to post and advertise in newspapers with general circulation in Falmouth, Barnstable, Martha’s Vineyard, Nantucket and New Bedford all of its proposed schedule changes at least 60 days prior to their effective date. St. 1960, c. 701, §15A. Accordingly, the SSA placed advertisements of its proposed 2021 Winter, Spring, Summer and Fall Operating Schedules for the period from January 4, 2021 through January 4, 2022 in the following newspapers:

. The Cape Cod Times and The Standard-Times on April 29, 2020. . The Inquirer and Mirror on April 30, 2020; . The Falmouth Enterprise and the Vineyard Gazette on May 1, 2020; and . The Martha’s Vineyard Times on May 14, 2020.

The SSA’s Enabling Act also provides that, if the SSA receives a petition within 30 days of those advertisements that is signed by not less than 50 persons who are residents of any of those communities requesting a public hearing on the proposed schedule changes, the SSA is to conduct a public hearing within 14 days of receiving the petition. On May 29, 2020, the SSA received a petition with respect to its proposed 2021 Summer Operating Schedules for the Martha’s Vineyard route that was signed by 58 residents of the Town of Falmouth (Appendix A). Therefore, the SSA held a public hearing on its proposed schedules on Zoom (due to the COVID-19 pandemic) on June 11, 2020.

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The Petitioners’ Objection to the SSA’s Proposed Schedules

In their petition (Appendix A), the 58 Falmouth residents have objected to the SSA’s scheduling of a 5:30 a.m. freight trip from Woods Hole1 before the SSA’s Long-Range Vineyard Transportation Task Force has begun to function, and they have requested that the SSA postpone approval of a 5:30 a.m. freight trip from Woods Hole until a future date when the Long-Range Vineyard Transportation Task Force is functioning. As in the past, the petitioners have objected to large trucks traveling to that 5:30 a.m. ferry because they wake up Falmouth residents beginning at 4:45 a.m. and earlier. The petitioners do not object to cars traveling on that ferry.

The Public Hearing on the Proposed Schedules

SSA Members James M. Malkin (Dukes County), Kathryn Wilson (Falmouth), Robert F. Ranney (Nantucket) and Robert R. Jones (Barnstable) attended the public hearing on the proposed 2021 Summer Operating Schedules via Zoom. Also attending the hearing via Zoom were the SSA’s General Manager Robert B. Davis, Communications Director Sean F. Driscoll, Director of Shoreside Operations Alison Fletcher, Counsel Steven M. Sayers, and 56 other people, 15 of whom gave testimony that day. Their testimony is summarized below:

1. Damien Kuffler (Woods Hole) – Mr. Kuffler referred to the economic crisis that the SSA has found itself in during this pandemic and said the financial problems are largely attributable to its Enabling Act. He requested a modification of the SSA’s Enabling Act and asked for a clear definition of what the SSA’s slogan means to be the “Lifeline to the Islands.”

2. Christine Todd (Dukes County Commissioner, Vice Chair, Oak Bluffs) – Ms. Todd expressed concern that changing the 5:30 a.m. freight ferry to New Bedford would increase the costs of freight and transportation that would be passed on to island residents who were already taking a hit during this pandemic. Further, she cited concerns that moving one freight boat to New Bedford would open up the possibility of too many boats operating out of New Bedford and she called for a cost-effective way to continue to manage all freight out of the Woods Hole route.

3. Keith Chatinover (Dukes County Commissioner, Edgartown) – Mr. Chatinover reiterated Ms. Todd’s sentiments and said that New Bedford was not an alternative to consider. He said the 5:30 a.m. freight boat must continue to operate out of Woods Hole as it was critical for the transportation of goods and services to the island and occurred during an hour when it would not cause traffic congestion for island residents who would be out and about at later hours. He sympathized with the people of Woods Hole but emphasized the criticality

1 As advertised, the SSA’s proposed 2021 Summer Operating Schedules for the Martha’s Vineyard route (Appendix B) include a 5:30 a.m. trip from Woods Hole with the Motor Vessel Governor from May 19, 2021 through October 18, 2021.

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of both the Woods Hole to Vineyard Haven and Vineyard Haven to Woods Hole trips that bring products and supplies to vendors.

4. Tristan Israel (Dukes County Commissioner, Chair, Tisbury) – Mr. Israel stated that he supported the two previous statements by his fellow Dukes County Commissioners. He said he sympathized with Woods Hole residents but stressed the importance and vitality of the 5:30 a.m. freight ferry to the island of Martha’s Vineyard.

5. Leon Brathwaite (Duke County Commissioner, West Tisbury) – Mr. Brathwaite inquired whether this was an issue of twenty (20) trucks or ten (10). He reasoned that either number was not a lot of traffic and sincerely hoped that the SSA would continue its 5:30 a.m. freight trip so that products could be brought to the island’s vendors and shelves could continue to be stocked in a timely manner.

6. Melinda Loberg (Tisbury Selectman, Chairman, Tisbury) – Ms. Loberg said crucial goods and services were delivered on the 5:30 a.m. freight ferry. She said that everyone chooses where they live and all places have different negative impacts. She empathized with the residents of Woods Hole as she, too, lived near the SSA’s port of Vineyard Haven and can hear the trucks backing up and unloading at all hours of the day. She further argued that people living on the mainland have the benefit of traveling on roads that operate twenty- four hours a day, seven days a week, versus the people on the islands who travel on roads with restrictions that prevent them from traveling before 5:30 a.m. or after 9:45 p.m. and the SSA was already packing a lot into a short period of time. Ms. Loberg made it known that she was in favor of keeping the 5:30 a.m. freight boat for the businesses on Martha’s Vineyard.

Later in the hearing, Ms. Loberg responded to another person’s testimony on trucks downshifting on Woods Hole Road; she said that there need to be efforts in enforcement to reign in truck drivers who behave that way. She also said that she did not want to leave anyone with the impression that the island is unwilling to think about any other alternatives, citing two previous studies on moving freight ferries to New Bedford and discussions with Mr. Packer on ways to help the SSA eliminate freight with the use of his barge. She said the inquiries into New Bedford came back with considerably higher costs than Woods Hole and, although they have had many conversations with Mr. Packer, none of them elicited a solution to date. Ms. Loberg also stated that she wanted to impress on everyone that she was happy to investigate other options if another alternative were presented.

7. Jonathan Goldman (Woods Hole) – Mr. Goldman applauded Mr. Kuffler’s previous comments on the SSA’s statutory mission to serve as “Lifeline to the Islands” and called for a detailing of the products that were being delivered during these early morning freight ferries that were deemed crucial and vital to the island. He wanted to know if they were time sensitive or medical products or other life-saving devices. Mr. Goldman agreed that everyone has made choices as to where they live but that the disturbances to the village of Woods Hole never seem to pan out and some kind of agreement needs to be made between the mainland and Martha’s Vineyard that allows for both give and take. From his perspective, the people of Woods Hole must “take it” because they live on the mainland

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with access to roads twenty-four/seven (24/7) whereas the people on Martha’s Vineyard do not have the same access to travel. He further stated that there is no oversight or group looking over what the SSA is doing and that this same issue regarding early morning freight has been falling on deaf ears for countless years. He urged all communities involved to look for ways to ensure that both Woods Hole and Martha’s Vineyard do not suffer. He reiterated Mr. Kuffler’s request for an explanation of what is being transferred and how it is being transferred so that a logistical solution could be investigated.

8. John Woodwell (Woods Hole) – Mr. Woodwell called attention to Ms. Loberg’s previous testimony and said that her statements about choosing to live on the island, limitations of travel and the crucial, essentialness and vitality of goods are just not true. He expressed his opinion that “waking up one’s neighbor at 4:45 in the morning is inconsiderate”; that “waking up one’s neighbor at 4:45 in the morning repeatedly is rude”; and that “defending one’s right to do so as somehow ‘vital,’ ‘must,’ ‘essential,’ ‘crucial’” is “absurd and offensive to hear.” He called for freight trucks to be sent to New Bedford, citing a freight program from 2000-2001 that was run by Craig Johnson of Flagship Management in Florida which Mr. Woodwell said was lucrative for Mr. Johnson but caused the SSA to lose money under its own poor management. He urged the SSA to move forward by reducing both the number of cars and the number of trips to Martha’s Vineyard and moving the 5:30 a.m. freight boat to a more appropriate time. He noted that the 5:30 a.m. freight boat had only been added to the schedule in 2012, and therefore, it was not essential, saying that “there is no crisis without a 5:30 boat.”

Mr. Woodwell later urged all hearing participants to look up and read Garrett Hardin’s “Tragedy of the Commons” and, in doing so, to think about all the costs of these early morning freight ferries, including the costs that are transferred to the residents of Woods Hole, the costs to the environment, and the costs to the taxpayers.

9. John Gore (Woods Hole) – Mr. Gore, who lives in Woods Hole just past Church Street, opposite the Treehouse Lodge motel, advised the SSA to take the lead on “traffic calming” before adding more trips to its schedule. He suggested working with local authorities, posting signs, adding speed traps and otherwise engaging police to mitigate the problems created by truck drivers on Woods Hole Road as they enter and exit the port. He stated that he cannot use his front bedroom due to the affronting noise of the trucks. He said that the way the trucks are “racing” to meet deadlines as they come in and out of Woods Hole, as well as the noise they create, “is very loud, is very dangerous, and is very threatening.” He was amazed there had yet to be any fatalities caused by the “reckless” driving of trucks on Woods Hole Road. Mr. Gore recognized that speed is one of the biggest issues but also felt trucks could be noisy even without the factor of speed.

10. Stephen Laster (Woods Hole) – Mr. Laster noted that this was his first hearing and that he appreciated being given the opportunity to speak via the video conferencing platform due to the current pandemic restrictions. He voiced his concern that while it was important to give public officials the opportunity to speak first, it was not appropriate for them to speak first if they were solely speaking on their own behalf and that it was especially intimidating and difficult for him to speak out as a citizen when he felt the public officials’ arguments

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were based only on opinion with no evidence. Mr. Laster urged the SSA and all communities to work together to find a logistical solution that would benefit everyone involved. He suggested freight trucks could be scheduled later in the day to ready the island businesses for their morning supplies and stock just as easily as they’d been doing via the early morning freight trips. He called for a new initiative, including an evaluation of any biases like the aforementioned practice of allowing public officials to speak first, and a solution that would give the residents of Woods Hole a peaceful night’s rest.

11. Eugenie Kuffler (Woods Hole) – Ms. Kuffler stated that she had been to the last hearing on the SSA’s operating schedules at Falmouth High School on September 9, 2019 to protest early morning trucks and the situation had yet to improve. She felt the quality of life for persons in Woods Hole, specifically the social eco-system, was hampered by the third slip under construction that would be taking out a piece of the Luscombe Ave sidewalk where people, both locals and travelers, shared space while they waited for the ferry or rested from the bike path. Ms. Kuffler suggested the SSA reduce its schedule, starting with the 5:30 a.m. freight trip out of Woods Hole, and conduct a traffic study to find a solution that would maintain the quality of life that the residents of Woods Hole strived to uphold.

12. Phil Richardson (Woods Hole) – Mr. Richardson, another resident of Woods Hole, said he looks out his window to see the barges owned by Mr. Packer (of R.M. Packer Co.) traveling with freight, fuel and trucks on its daily trips to the island and suggested that the SSA seek out Mr. Packer’s assistance in putting their freight from the 5:30 a.m. trip onto his barge.

13. Becky Conners (Woods Hole) – Ms. Conners, manager of the Sands of Time Inn on Woods Hole Road and resident living just across the street at the corner of Church Street and Woods Hole Road, complained of not being able to use her front bedroom as Mr. Gore had also stated. She expressed safety concerns every time she had to cross the road between work and home due to the high speed of truck drivers especially as they came around the bend by Church Street. Ms. Conners reiterated some of the noise complaints made prior, describing the downshifting of trucks as a “horrible, loud, jarring noise.” She further stated that she would be willing to lend her driveway to local police to enact traffic enforcement in that area.

14. Dawna Hammers (Woods Hole) – Ms. Hammers said that she had moved to Woods Hole from a similar community in Vermont where she had been plagued by a freight train crossing much like the truck traffic of Woods Hole Road. She works in downtown Falmouth and has witnessed trucks driving at “scary” and excessive speeds around the tight bend in the road just before Main Street. Her primary concern was for the endangerment of persons who could potentially be killed on that road by one of the trucks. She also expressed concern for the safety of animals in the area and both environmental and noise pollutants caused by the trucks. Ms. Hammers asked the SSA to devise a “creative solution” and suggested that the SSA transfer freight from the 5:30 a.m. trip to New Bedford or to other boats on the SSA’s schedule at later times of day.

15. Nat Trumbull (Woods Hole) – Mr. Trumbull, a resident of Woods Hole, stated that his goal was to correct any inaccuracies that had been primary talking points for years by the SSA.

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He prefaced his testimony by summarizing the three topics he would address, including the short history of the 5:30 a.m. freight trip, the economics and environmental impacts of using New Bedford as a supplemental port, and the current petition that led to this hearing.

On the topic of the relative newness of the 5:30 a.m. trip, which began in 2012, Mr. Trumbull reminded all participants that the Dukes County SSA Member at the time, Marc N. Hanover, had cautioned against the potential need to discontinue the early morning freight trip due to excessive noise. He also made reference to a Port Council member who had voted against adding the 5:30 a.m. trip to the 2012 schedule. Mr. Trumbull said that the length of trucks on the 5:30 a.m. trip needed to be considered with trucks of a certain length being sent on later ferries. He invited participants to review the commentary of hearings past on the same topic, to review the Cape Cod Commission’s annual traffic report; and to review audio and video of disturbances from the 5:30 a.m. freight boat on a website created for the traffic concerns in Woods Hole (woodshole.net). Mr. Trumbull reiterated the importance of investigating the nature of the goods and asked what the nature of the urgency was with which they must be brought to the island of Martha’s Vineyard so early each day. From his physical view, he saw mostly gravel, stone, mulch, trash and recyclables, none of which he considered time-sensitive.

Mr. Trumbull recognized that the island has concerns with the high costs of moving the freight boat to another boat out of New Bedford. He instead proposed that freight be moved by barge from the Bourne and Wareham area to Martha’s Vineyard. He suggested that the costs of traveling by barge would be less than traveling by boat; the water route was a more direct route and had a larger footprint and therefore was better for the environment; and he estimated that 70% to 80% of trucks coming into Woods Hole probably passed through New Bedford and this alternative would combat the ever-increasing issue with congestion on Cape Cod. Mr. Trumbull pointed out that the operator of the New Bedford freight ferry experiment of 2000-2001 had made money on the route but its mismanagement by the SSA only led to confusion for truck drivers making reservations, poor timing of schedules and a loss in revenue for the SSA itself. Further, he said that the SSA has been unwilling to accept proposals for freight out of New Bedford and suggested that moving freight trucks to New Bedford would open up valuable spaces for vehicles for both residents of the island and Woods Hole and Falmouth who have been complaining about the lack of available reservations.

Directing his attention to the current petition, Mr. Trumbull noted that while this was an unusual year in which the SSA’s Board needed to spend much time and consideration on the financial impacts of the pandemic, keeping the 5:30 a.m. freight ferry was “not a way to save money.” He referenced again how the trip had only come into the schedule eight (8) years ago and, therefore, could not be as critical as its proponents had claimed since supplies and goods had been delivered to island’s vendors for so many years prior without issue. Since 2012, he also noted three (3) round-trip freight boats had been added to the schedule later in the day. In dealing with issues related to the current pandemic, Mr. Trumbull observed that the SSA had made several changes in its schedule the past few months and inquired why there couldn’t be change around the 5:30 a.m. freight trip. He urged the SSA to shorten its inclusion in its summer schedule from one that lasted six (6)

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months, from May to October, during a time when roads are already congested. He didn’t see a need to rush into approving the 2021 operating schedules at this time. Mr. Trumbull felt the SSA was unwilling to compromise and was concerned that the SSA was only acting for its financial gain, was unethical in its inability to consider other solutions, and was alienating the residents of Woods Hole by not listening to their concerns. Mr. Trumbull urged the town of Falmouth to look at the way Barnstable made an agreement with the SSA restricting its schedule to a maximum number of trips every day. He further argued that Falmouth could have more to say on the use of travel on Woods Hole Road since the state highway of Woods Hole Road did not extend all the way to the SSA’s port.

Mr. Trumbull concluded his testimony with a call for the SSA to change its Enabling Act but requested one line remain from section six (6): “The exercise of the powers granted by this act will be in all respects for the benefit of the people of the commonwealth, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions.” He called for the SSA to “live up this line” and reminded participants that “it is our Commonwealth too.”

Written Testimony Regarding the Proposed Schedules

Although Section 15A of the SSA’s Enabling Act requires it only to consider the testimony given at the June 11, 2020 public hearing, the SSA decided that, because parties who may be affected by the proposed schedule changes may not be able to attend the hearing, it should in fairness also consider any written testimony that is submitted regarding the proposed schedule changes. Therefore, in its Notice of Public Hearing, the SSA stated that it would consider such written testimony that is submitted electronically to [email protected] or addressed to General Manager Robert B. Davis.

Copies of all of the written testimony received by the SSA are included as Appendix C to this report and, therefore, that testimony does not need to be (and is not) described herein. The following individuals submitted written testimony: 1. Douglas Amon (Woods Hole); 2. Rod & Carissa April (Woods Hole); 3. Jane Evelyn Atwood (Woods Hole); 4. B. J. Atwood-Fukuda & Koichi Fukuda (Woods Hole); 5. Bob Bennett (Falmouth); 6. Ed Brakeman (Woods Hole); 7. Roberta Brooks (Woods Hole); 8. Becky Conners (Woods Hole); 9. Kate Nace Day (Woods Hole); 10. Paul & Mia De Weer (Woods Hole); 11. G. L. Dunn (Woods Hole);

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12. Edgartown Board of Selectmen (Edgartown); 13. Jan Elliott (Woods Hole); 14. Gerry Fine (Falmouth); 15. Ted & Meg Fitzelle (Woods Hole); 16. E. M. Frye (Woods Hole); 17. Jonathan Goldman (Woods Hole); 18. Nicole Goldman (Woods Hole); 19. John C. Gore (Woods Hole); 20. John W. Grande (Tisbury); 21. Dawna Hammers (Woods Hole); 22. David Hastings (Woods Hole); 23. Jennifer Hastings (Woods Hole); 24. Marko Horb (Falmouth); 25. Richard Hugus (Woods Hole); 26. Robert Jaye (Woods Hole); 27. Robert Kinnecom (Tisbury); 28. Damien Kuffler (Woods Hole); 29. Eugenie Kuffler (Woods Hole); 30. Suzanne Kuffler (Woods Hole); 31. Stephen Laster (Falmouth); 32. Paul E. Lobo (Falmouth); 33. Richard Lovering (Woods Hole); 34. James Mavor (Woods Hole); 35. Margaret McCormick (Woods Hole); 36. Bruce McNamee (Edgartown); 37. Dianne McPherson (Woods Hole); 38. Russell G. Murphy (Falmouth); 39. Ann Newbury (Woods Hole); 40. Jim Newman; 41. Trina Novak (Woods Hole); 42. Oak Bluffs Board of Selectmen (Oak Bluffs); 43. David Prosten & Sarah Flynn (Falmouth); 44. Patricia Riccardelli (Woods Hole); 8 of 19

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45. Philip Richardson (Woods Hole); 46. Nan & Walter Schanbacher (Woods Hole); 47. Ann Sears (Falmouth); 48. Peter Shile (Woods Hole); 49. Deborah Siegal & Richard Payne (Falmouth); 50. Andrew Solow (Woods Hole); 51. Pam & Wallace Stark (Woods Hole); 52. Betsy Stegeman (Woods Hole); 53. Judith Stetson (Woods Hole); 54. Nathaniel Trumbull (Woods Hole); 55. Dave & Pat Tucker (Woods Hole); 56. Unknown; 57. Unknown (Woods Hole); 58. Jane Vose; 59. John Vose; 60. Stephen & Carol Wagner (Woods Hole); 61. Don & Myrna Weiss (Woods Hole); 62. John Woodwell (Woods Hole); and 63. Barbara Zeidan.

History of the SSA’s Early Morning Trips from Woods Hole

The history of the SSA’s early morning trips from Woods Hole is described in the previous reports it issued on August 15, 2017 on the SSA’s proposed 2018 Winter and Spring Operating Schedules (the “August 15, 2017 Section 15A Report”) and on October 17, 2017 on the SSA’s proposed 2018 Summer and Fall Operating Schedules (the “October 17, 2017 Section 15A Report”). In summary:

. Until 2007, the SSA’s first regularly scheduled trip from Woods Hole was a freight trip that left at 6:15 a.m. that was designated as a hazardous cargo trip on Mondays through Fridays throughout the year (as well as on Saturdays during the summer operating schedules).

. Since 2007, the SSA has regularly scheduled the first trip of the Island Home (or a substitute ferry) to leave Woods Hole at 6:00 a.m., the same time that the Martha’s Vineyard (or another substitute ferry) historically has made (and continues to make) its first daily sailing from Vineyard Haven.

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. In September 2011, the SSA tried out a revised schedule for the Governor on a trial basis, having its first trip leave Woods Hole at 5:45 a.m. instead of 7:30 a.m. through the remainder of the 2011 Late Summer Operating Schedule.

. Since 2012, the SSA has regularly scheduled the first trip of the Governor to leave Woods Hole at 5:30 a.m. during the summer operating schedules.

. In 2013, the SSA began regularly scheduling its first freight trip to leave Woods Hole at 5:30 a.m. during the spring operating schedules as well, but for the reasons described in the August 15, 2017 Section 15A Report this 5:30 a.m. trip has not been operated during any of the SSA’s spring operating schedules since 2017.

. In 2015, the SSA also regularly scheduled its first freight trip to leave Woods Hole at 5:30 a.m. during the fall operating schedule. However, in 2016 the SSA stopped operating this trip during the fall operating schedule on December 8, 2016; in 2017 the SSA stopped operating this trip on October 28, 2017; and this trip has not been operated during any of the SSA’s fall operating schedules since then.

. By contrast, in its October 17, 2017 Section 15A Report, the SSA concluded that it could not continue to fulfill its statutory obligation of providing adequate transportation for the island of Martha’s Vineyard during its summer operating schedules without continuing to operate its 5:30 a.m. freight trip from Woods Hole. However, in order to mitigate the impact of that trip on Woods Hole residents, it adopted certain new operating policies for that trip beginning in 2018, including the following: . Limiting the size of the trucks the SSA carries on its 5:30 a.m. freight trip from Woods Hole to trucks that are less than 40 feet in length, so that less noise is generated by the trucks that drive to the SSA’s Woods Hole terminal in the early morning hours. . Requesting that freight shippers participating in the SSA’s bulk freight reservation program who request reservations on the 5:30 a.m. freight trip from Woods Hole have their truck drivers not exceed the speed limit on any roads in Falmouth or 35 miles per hour, whichever is lower, in order to reduce the noise from those trucks even more. . Reviewing all of the SSA’s other efforts to mitigate noise from the early morning operations of the Woods Hole terminal, including but not limited to prohibiting trucks from arriving at the terminal earlier than necessary to be processed and loaded onto the SSA’s ferries, to ensure that those efforts are followed and to see how they can be improved.

. In 2019, the SSA ran essentially the same summer operating schedules that it had run in 2018 (and with the same new operating policies for the 5:30 a.m. freight trip from Woods Hole), and approved them again for 2020 for the period from May 15, 2020 through October 20, 2020. However, due to the emergency created by the COVID-19 pandemic, beginning March 22, 2020, the SSA modified its operating schedules to reduce the amount of its service from what had been originally approved and, as a result, the SSA did not begin to operate the 5:30 a.m. freight trip from Woods Hole this year until June 17, 2020.

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As now proposed, the SSA’s 2021 Summer Operating Schedules would operate from May 19, 2021 through October 18, 2021, beginning four days later and ending two days earlier than the summer operating schedules the SSA originally had approved for 2020. As a result, the SSA’s proposed 2021 Summer Operating Schedules for the Martha’s Vineyard route essentially would be the same summer schedules as the SSA ran in 2018 and 2019 (as well as the same summer schedules that were approved for this year), which included the 5:30 a.m. freight trip from Woods Hole with the motor vessel Governor during this time period. The SSA is also proposing to continue to limit the size of the trucks the SSA carries on its 5:30 a.m. freight trip from Woods Hole to trucks that are less than 40 feet in length, which it began doing in 2018, so that less noise is generated by the trucks that drive to the SSA’s Woods Hole terminal in the early morning hours.

Discussion

A. The SSA needs to continue to operate its 5:30 a.m. freight trip from Woods Hole during its 2021 Summer Operating Schedules.

There should be no mistake in anyone's mind that the SSA’s paramount interest is to ensure that the islands of Martha's Vineyard and Nantucket are provided with adequate transportation of persons and necessaries of life on a year-round basis. The island economies are and will continue to be strongly affected by the cost of their transportation service to and from the mainland, whether it is paid for entirely through passenger, freight or automobile rates or through a combination thereof. Either inadequate service or unnecessarily expensive service will jeopardize their future. Frequency and reliability of service are still the key to their stability and well-being. Accordingly, the interest of the islands is paramount and must be the overriding consideration in evaluating the SSA’s proposed operating schedules.

In this regard, island officials have adamantly opposed the elimination of the 5:30 a.m. freight trip from Woods Hole during the SSA’s summer operating schedules, arguing that eliminating the trip would have a substantial adverse impact on the island because the island’s residents, businesses and daily commuters rely on the early morning boats for their workforce and daily deliveries. In addition, they argue that any reduction in ferry service during the early morning would increase traffic congestion on the island, impede public transit service, and prevent the smooth and timely flow of goods and services to the island. As stated for the Edgartown Board of Selectmen by Edgartown Town Administrator James Hagerty, in his June 24, 2020 letter to the SSA’s Board:

The Board of Selectmen of Edgartown were very distressed to hear, particularly now, that the Steamship Authority is considering stopping the 5:30 a.m. freight boat to Martha’s Vineyard. This boat is vital to the Vineyard and the Town of Edgartown. Just nine months ago a public hearing was held on this same topic and the Island Towns were very clear in their position; the 5:30 a.m. ferry is crucial to the logistics of the Island.

This essential service facilitates everything from medical appointments to connecting flights from Logan Airport. It would be unfeasible to expect the delivery of food and other supplies to occur mid-morning when Edgartown’s 11 of 19

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antiquated roads are filled with traffic and pedestrians. During this trying time we need to set conditions for the success of commercial enterprises and the Island’s majority, rather than implement haphazard changes that would only benefit a small minority of Falmouth residents. In the next several weeks the Island’s population will swell to over 100,000 people. The second and third order effects of this surge can only be negated by a steady stream of supplies flowing from the mainland. An interruption of service in any fashion would ultimately be extremely detrimental to this cycle.

Similarly, on behalf of the Oak Bluffs Board of Selectmen, Oak Bluffs Town Administrator Robert L. Whritenour, Jr. wrote to the SSA’s Board on June 12, 2020, saying:

The Board of Selectmen of the Town of Oak Bluffs became aware as a body that the Steamship Authority would be conducting another public hearing today for the purpose of hearing yet another [] request to reduce service to the Island of Martha’s Vineyard by eliminating the 5:30 A.M. ferry. At their regular meeting held June 9, 2020, the Board of Selectmen voted to direct me to prepare correspondence to you reiterating their strong opposition to this reduction in service and to urge you to reject this latest proposal. Just nine months ago a public hearing was held on this same topic and the Island communities were very clear in pointing out the tremendous negative impact that this change would have on our residents. The repeated requests to bring this matter up over and over amount to nothing short of bullying tactics to interfere with service to the Island.

The Oak Bluffs Board of Selectmen sent a detailed letter outlining their issues and concerns in September of 2019, and they have asked that I include this letter with my correspondence to clearly outline their concerns which are the same now as they were less than a year ago.2 Whether it is access to medical services and doctor appointments, or the delivery of food and other critical supplies, the early boat fulfills an enormously important role in preserving a modicum of the quality of life enjoyed by mainland residents. It now appears mean-spirited and abusive of the public process to repeatedly attempt to deny these most basic connections for the residents of Martha’s Vineyard in light of the demonstrated need.

As the island officials have pointed out, the SSA has twice previously concluded that it needs to continue to operate its 5:30 a.m. freight trip from Woods Hole during its summer operating schedules based upon essentially the same testimony it has received in connection with this most

2 The letter from the Oak Bluffs Board of Selectmen referred to by Mr. Whritenour was dated September 3, 2019 and signed by Brian Packish, as Chair of the Oak Bluffs Board of Selectmen. It is included in Appendix C to this report as part of the written testimony received by the SSA. It was also included in Appendix C to the SSA’s October 15, 2019 Section 15A Report as part of the written testimony received by the SSA regarding its proposed 2020 Summer Operating Schedules, and the SSA quoted from that letter on pages 10-11 of its previous report. 12 of 19

45 August 2020 Port Council Meeting DRAFT – July 30, 2020 recent hearing. Indeed, the SSA reached this conclusion most recently less than a year ago in the report it issued on October 15, 2019 on its proposed 2020 Summer Operating Schedules (the “October 15, 2019 Section 15A Report”) and there has been no material change in the relevant circumstances since that report was issued.3 Accordingly, the SSA once again concludes that it needs to continue to operate its 5:30 a.m. freight trip from Woods Hole during its 2021 Summer Operating Schedules not only based upon the further written testimony it has received from island officials, but also for the same reasons it concluded it has needed to continue operating that trip during its 2018 and 2020 summer operating schedules. Those reasons were described in detail in the SSA’s previous October 17, 2017 Section 15A Report and its previous October 15, 2019 Section 15A Report, and the SSA incorporates those two reports in this report by reference.4

B. The SSA expects that the Long-Range Vineyard Transportation Task Force will soon be meeting to attempt to identify reasonable steps that can be taken to address issues and concerns about freight and other traffic in the SSA’s affected communities on a long-term basis.

Even the 58 Falmouth residents who submitted their petition to the SSA seem to recognize that there is a need for the SSA to continue operating the 5:30 a.m. freight trip during its summer operating schedules until long-term solutions for the communities’ regional traffic problems are developed and implemented. In their petition, the 58 Falmouth residents have only objected to the SSA’s scheduling of a 5:30 a.m. freight trip from Woods Hole before the SSA’s Long-Range Vineyard Transportation Task Force (the “Task Force”) has begun to function, and they have requested that the SSA postpone approval of a 5:30 a.m. freight trip from Woods Hole only until a future date when the Task Force is functioning.

3 Earlier this year, the SSA experienced a precipitous drop in traffic during the initial months of the COVID-19 pandemic. In response, the SSA temporarily reduced the level of service it provided to Martha’s Vineyard, including delaying the commencement of the 5:30 a.m. freight trip from Woods Hole from May 15, 2020 to June 17, 2020, until the SSA’s vehicle traffic, particularly its freight traffic, began to return to 2019 levels. This delay in the commencement of the 5:30 a.m. freight trip this year demonstrates that the SSA is scheduling the 5:30 a.m. freight trip only when the SSA believes it is necessary to fulfill its statutory obligation of providing adequate transportation for the island of Martha’s Vineyard. Indeed, even though there are good reasons to schedule the 5:30 a.m. freight trip from Woods Hole on a year-round basis, in 2017 the SSA decided to eliminate that trip during the spring and fall seasons in light of the competing interests of the Woods Hole community, and the SSA reversed its initial decision to operate it during the 2018 winter season for the same reasons as well. See p. 10, supra.

4 Both reports can be found on the SSA’s website, www.steamshipauthority.com. To view and download the reports, click on the “About Us” tab on the website’s home page and then, when the “About Us” webpage loads, click on “Policies, Forms and Information.” Scroll down that webpage to the section entitled “Reports on Proposed Operating Schedules” where links to the reports are included in the list of reports in that section. 13 of 19

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The Task Force referred to by the petitioners was established on October 15, 2019 by a unanimous vote of the SSA’s Board to work together with the Martha’s Vineyard Commission, the Towns of Falmouth, Oak Bluffs and Tisbury, and the City of New Bedford, and with public input, to attempt to identify reasonable steps that can be taken to address issues and concerns about freight and other traffic in each of those communities on a long-term basis. Promptly after the Task Force was established, the SSA’s General Manager, Robert B. Davis, designated himself and the SSA’s Counsel, Steven M. Sayers, to be the SSA’s representatives on the Task Force, and sent invitations to all of the communities asking them to participate in this endeavor and designate their representatives on the Task Force. Also, on January 21, 2020, the SSA’s Board unanimously voted to include representatives of the Dukes County Commissioners on the Task Force as well.

On December 16, 2019, the Falmouth Select Board appointed Falmouth Selectman Douglas C. Brown and a town employee to be determined by Falmouth Town Manager Julian M. Suso to be their representatives on the Task Force. The Tisbury Select Board then asked Messrs. Davis and Sayers to attend their January 29, 2020 meeting to discuss the purpose of the Task Force and to answer any questions they might have. After that discussion, the Tisbury Select Board decided to seek volunteers to serve as Tisbury’s representatives on the Task Force and advertised the availability of these positions on the Town’s website, asking Tisbury residents to submit their letters of interest by March 23, 2021. Similarly, the Oak Bluffs Board of Selectmen asked Messrs. Davis and Sayers to attend their February 25, 2020 meeting to discuss this subject, after which they too agreed to appoint two representatives to the Task Force.

Unfortunately, on March 10, 2020, Governor Charlie Baker declared a state of emergency due to the COVID-19 pandemic and the efforts of all public officials on Martha’s Vineyard were overwhelmingly devoted to ensuring the immediate health and safety of their residents rather than long-range transportation planning. Similarly, the SSA was confronted with an unexpected challenge to remain financially afloat amid a precipitous drop in traffic levels while at the same time developing and implementing new operational measures to address the dangerous health risks posed by the virus. Nevertheless, while it may have taken longer than the petitioners desired, in June and July 2020, the Dukes County Commissioners appointed Leon Brathwaite and Keith Chatinover as their representatives on the Task Force, the Martha’s Vineyard Commission appointed Doug Sederholm and Jim Vercruysse, and the Tisbury Select Board appointed John Cahill. As a result, the Task Force now has a quorum of appointed representatives who are prepared to work collectively in their attempt to identify and develop long-term solutions for the communities’ regional transportation issues.

C. Meanwhile, the SSA is continuing to attempt to find practical ways to mitigate noise generated by its Woods Hole ferry service that can be implemented sooner rather than later.

While the SSA envisions that the Task Force will present the best opportunity to identify and develop long-term solutions for the communities’ traffic problems, it has attempted on its own to identify and implement feasible measures to mitigate the noise and other issues experienced by Falmouth residents due to the SSA’s Woods Hole ferry terminal operations. Indeed, for the last several years the SSA has taken a number of actions to reduce the noise generated from the early morning operations at its Woods Hole terminal, which are described in the SSA’s August 15, 2017

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Section 15A Report, its October 17, 2017 Section 15A Report, and its October 15, 2019 Section 15A Report.

Nevertheless, at the September 9, 2019 hearing on the SSA’s proposed 2020 Summer Operating Schedules, Falmouth residents made it clear that the SSA’s efforts to mitigate noise from its ferry operations were not enough. In response, on October 15, 2019, the SSA established another working group (the “Working Group”) with the Martha’s Vineyard Commission and the Towns of Falmouth, Oak Bluffs and Tisbury to focus exclusively on identifying and developing reasonable and practical ways to monitor and enforce compliance with the SSA’s current noise mitigation policies as well as identifying and developing additional ways to mitigate traffic issues arising from the SSA’s Woods Hole ferry terminal operations which can be implemented sooner rather than later.

Promptly after the Working Group was established, the SSA’s General Manager, Robert B. Davis, designated the SSA’s Director of Shoreside Operations, Alison Fletcher, and the SSA’s Counsel, Steven M. Sayers, to be the SSA’s representatives on the Working Group, and sent invitations to all of the communities asking them to participate in this endeavor and designate their representatives on the Working Group. Also, on January 21, 2020, the SSA’s Board unanimously voted to include a representative of the Dukes County Commissioners on the Working Group Force as well. On December 16, 2019, the Falmouth Select Board appointed Falmouth Selectman Douglas H. Jones and Woods Hole resident Nathaniel Trumbull to be their representatives on the Working Group. Then, in January and February 2020, both the Tisbury Select Board and the Oak Bluffs Board of Selectmen similarly agreed to appoint their representatives to the Working Group; but, again, those appointments were delayed during the state of emergency that Governor Charlie Baker declared on March 10, 2020 due to the COVID-19 pandemic.

In February 2020, even though the island communities had not yet appointed their representatives to the Working Group, the SSA and Falmouth Working Group members began working together to attempt to find ways to mitigate traffic and noise issues arising from the SSA’s Woods Hole ferry terminal operations. This work has included: . Discussing with Martha’s Vineyard freight truck driver Steve Araujo noise and other traffic issues associated with freight trucks traveling on Woods Hole Road. . Discussing with Falmouth Police Chief Edward Dunne possible ways how the Town of Falmouth can enhance enforcement of both the speed limit on Woods Hole Road and the no idling law on the SSA’s Woods Hole terminal property. . Preparing and sending out a revised version of the SSA’s periodic letter to its regular freight customers, advising them that the SSA will be strictly enforcing its terminal traffic and noise mitigation policies and that they will forfeit their reservations if any of their drivers intentionally or repeatedly violate them. In the letter, the SSA also advises its freight customers that, in the future, freight carriers will not be allowed to make reservations for early-morning trips to or from Woods Hole for any truck that has a record of excessive noise on Woods Hole Road, whether the noise is due to the driver’s use of the truck’s Jake brakes or due to the truck’s age or lack of proper maintenance.

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. Posting new signs at the Woods Hole terminal telling people that the idling of engines in violation of the Massachusetts General Laws is prohibited and also telling them what the penalties are for violating the law. . Creating a new SSA email address to receive emails from the public with specific complaints about excessive noise and traffic issues in Woods Hole due to the SSA’s ferry operations. That new email address is [email protected]. . Adding “Woods Hole Traffic” to the list of subjects on the SSA’s Customer Feedback webpage about which the public can contact the SSA via its website. . Having the SSA’s Operations and Communications Center monitor the Woods Hole terminal early in the morning to see if any trucks arrive at the terminal earlier than they are allowed. That information is provided to the SSA’s Director of Shoreside Operations, Alison Fletcher, who is then responsible for contacting the freight customer to ensure their compliance with the SSA’s allowed arrival times for the Woods Hole terminal. . Adding language to the SSA’s vehicle reservation confirmation emails asking all of the SSA’s automobile and freight customers to obey all posted speed limits and all other traffic laws, signs and restrictions, and to drive at all times in a safe and courteous manner towards other drivers, bicyclists, pedestrians and residents of the SSA’s surrounding communities.

In June and July 2020, the Dukes County Commissioners appointed John Cahill as their representative on the Working Group, and the Martha’s Vineyard Commission appointed Mike Mauro. As a result, the Working Group now has a quorum of appointed representatives who are prepared to continue working collectively on attempting to find more short-term measures that can be taken to mitigate noise and traffic issues arising from the SSA’s Woods Hole terminal operations.

D. The SSA would like to address specific issues and questions that were raised by Woods Hole/Falmouth residents in their testimony.

At the public hearing and in their written testimony, several Woods Hole/Falmouth residents raised specific issues and questions to which the SSA believes it should respond. They are as follows:

. The most frequent complaint raised by Woods Hole/Falmouth residents is their perception that the SSA has failed to take any steps to supplement its Martha’s Vineyard freight route with an additional mainland port, such as New Bedford, which could be used for the transport of non-time-sensitive goods (e.g., gravel, stones, bark mulch, trees, construction and demolition materials, trash and recyclables) and large freight trucks. But the SSA anticipates that the possibility of increasing the amount of freight service to Martha’s Vineyard from New Bedford or another mainland port will be one of the topics explored by the Task Force as it investigates how the SSA will be able to accommodate the island’s anticipated future traffic demands. Moreover, there already is a private company, Tisbury Towing & Transportation, Inc., that provides freight service for bulk, break-bulk and containerized cargoes to Martha’s Vineyard from New Bedford by barge. In addition, in April 2016, the SSA issued a preliminary report on the feasibility of freight service between

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New Bedford and Martha’s Vineyard, in which it identified various alternatives for such a service, described how each of those alternatives would address the concerns and needs of the traveling public and each of the SSA’s interested constituent communities (Martha’s Vineyard, New Bedford and Woods Hole), and presented for further investigation and development a proposed potential model for the service that the SSA believes has the greatest chance of success over the long term. The SSA then hired Craig Johnson of Flagship Management to further explore the possibility of a freight ferry service between New Bedford and Martha’s Vineyard that would be operated by a private vessel operator. In August 2017, Mr. Johnson issued his initial report in which he concluded that a private ferry operator could successfully provide a freight ferry service between New Bedford and Martha’s Vineyard consistent with the SSA’s proposed service model. See the SSA’s August 15, 2017 Section 15A Report, at pp. 32-34 and Appendices G & H; and the SSA’s October 17, 2017 Section 15A Report, at pp. 18-28 and Appendix E.

. Several Woods Hole/Falmouth residents observed that the SSA was able to operate prior to 2012 without a 5:30 a.m. ferry and they therefore questioned why the 5:30 a.m. ferry is essential today. In short, the 5:30 a.m. freight trip is necessary because the island’s summer transportation demands have increased substantially since 2011, as shown by the 21% increase from 2011 to 2019 in the number of trucks carried by the SSA to and from Martha’s Vineyard during the months of June through September. The SSA also notes that it has addressed this issue in detail in both its October 17, 2017 Section 15A Report and its October 15, 2019 Section 15A Report. Those reports demonstrated how all of the SSA’s trips from early morning through late afternoon effectively have operated at full capacity over the past few years during the summer season to the point where scheduling the 5:30 a.m. ferry was the only way to ensure that all freight shippers carrying goods to Martha’s Vineyard are able to travel to and from their island destinations during their drivers’ regular working hours.

. Woods Hole resident Nathaniel Trumbull has stated that the SSA has only made “some minor changes in recent years to the length of the trucks allowed on the 5:30AM ferry,” noting that only trucks that are less than 40 feet in length are allowed on that boat. The SSA does not consider this change to be a minor one, as it has imposed significant restrictions on how the SSA can load not just the 5:30 a.m. ferry, but all of its later ferries, in the most effective manner, and the principal reason for this limitation on the length of trucks that can travel on the 5:30 a.m. ferry is to reduce the amount of early-morning noise in Woods Hole. As the SSA described in its October 17, 2017 Section 15A Report, at pp. 34-36, the noise from an automobile traveling at 30 miles per hour (which may be around 62 decibels) is less than the noise from a medium (box) truck traveling at the same speed (which may be around 73 decibels), which in turn is less than the noise from a large truck (tractor trailer or tanker) also traveling at the same speed (which may be around 80 decibels).5 Further, the box trucks carried on the 5:30 a.m. ferry are not equipped with

5 Sound levels are a measure of pressure in air from its source to the surroundings, and are measured in decibels. Because the decibel scale is a logarithmic scale, changes in sound levels are not linear and sound levels cannot be added by ordinary arithmetic means. The intensity or “power” of a sound doubles roughly every 10 decibels. 17 of 19

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engine compression brakes (so-called “Jake brakes”), which create even more noise when used on Woods Hole Road.

. Mr. Trumbull also reported that a citizens group had monitored truck traffic on the 5:30 a.m. freight ferry over a 10-day period from June 17 through June 26, 2020 and observed numerous times that trucks arrived at the Woods Hole terminal prior to the permitted time of 5:10 a.m. and were allowed by the SSA to check in. In response, the SSA notes that the 10-day period monitored by the citizens group began on June 17, 2020, the first day of the 5:30 a.m. freight trip this year. The SSA had decided to implement an initial educational approach towards truck drivers who arrived early for the 5:30 a.m. trip, handing each of them a copy of the letter it had sent to its regular freight shippers advising them of the SSA’s terminal traffic and noise mitigation policies. Then, on June 24, 2020, the SSA began emailing the freight shippers’ dispatch offices directly whenever one of their drivers arrived early. The freight shippers repeatedly apologized and assured the SSA that they would work with their drivers to make sure that they adhered to the allowed arrival times. They also expressed some confusion over the allowed arrival time for the 5:30 a.m. ferry because the SSA’s standard vehicle confirmation email instructs all of the SSA’s customers to arrive at least 30 minutes prior to sailing to guarantee their space. To dispel this confusion, the SSA created a “Confirmation Reminder” email that is now sent to all freight shippers with reservations for trips from Woods Hole to Martha’s Vineyard telling them what the allowed arrival times are for the Woods Hole terminal.6 Since then, truck drivers’

6 The email states:

Trucks (whether traveling with reservations or on standby) are prohibited from arriving at the Woods Hole terminal prior to 6:30 a.m., except as follows:

 Trucks with reservations for the 5:30 a.m. trip may arrive at the terminal beginning at 5:10 a.m.  Trucks with reservations for the 6:00 a.m. trip may arrive at the terminal beginning at 5:30 a.m.  Trucks with reservations for the 6:30 a.m. trip may arrive at the terminal beginning at 6:00 a.m.  Trucks with reservations for the 7:00 a.m. trip may arrive at the terminal beginning at 6:15 a.m.

Trucks that arrive at the Woods Hole terminal earlier than the above times will not be allowed to travel on standby that day and/or may forfeit their reservations. Please refer to the "Shippers Letter" that was mailed out at the beginning of the season for more information.

Once arriving at the terminal, do not idle your vehicle longer than five (5) minutes in accordance with the Massachusetts Anti-Idling Laws. Shippers who idle their vehicles unnecessarily will be asked to leave the terminal and will forfeit their reservation. 18 of 19

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compliance with the SSA’s allowed arrival times has vastly improved and there is now seldom a day when a regular freight shipper with a reservation on the 5:30 a.m. ferry arrives at the Woods Hole terminal prior to 5:10 a.m., even by a few minutes.

. Mr. Trumbull also provided the SSA with the citizens group’s second report in which it described the observable contents of the goods and materials shipped on the trucks that took the 5:30 a.m. freight trip over an 8-day period from June 17 through June 24, 2020, saying that 44 of the 87 trucks transported on the 5:30 a.m. ferry over that period were carrying no food at all and that the goods they were carrying included “such non-time sensitive items as stones, landscaping materials and equipment, and lumber.” Based upon this report, Mr. Trumbull has challenged the SSA’s position that the majority of goods and materials carried on the 5:30 a.m. freight trip are essential within that time frame. The SSA respectfully disagrees. First, based on the SSA’s records, more trucks carrying food traveled on the 5:30 a.m. freight trip from June 17 through June 24, 2020 than are listed in the citizens group’s report, and a substantial number of additional food trucks traveled on that trip the last two days of the citizens group’s 10-day study (June 25 and 26, 2020) that were not included in their second report. But more importantly, food is not the only commodity that is essential to the island and its residents’ quality of life. In addition to carrying food trucks on the 5:30 a.m. ferry, the SSA carries common carriers (e.g., Federal Express and U.P.S.), home products and appliance supply trucks, independent trades and services (e.g., plumbing, electrical and landscaping), and mail and newspaper delivery trucks. All of these freight shippers are providing necessaries of life for the island and need to travel as early as possible in the morning (because there is often no space for them later in the day) to ensure that they can make all of their multiple deliveries, or get in close to a full day’s work, or provide the public with their mail and daily newspapers. See Town of Bourne v. Plante, 429 Mass. 329, 333 (1999) (“The plaintiffs would have us conclude that the Authority has only a narrow governmental purpose which must focus solely on the needs of the permanent residents and economies of Martha's Vineyard and Nantucket and not on the needs of summer residents, tourists, and others who make use of the Authority's services. This interpretation is based on a stunted reading of the Authority's enabling legislation and overlooks pertinent precedent.”).

. Finally, Woods Hole resident Roberta Brooks has asked whether the SSA provides Falmouth taxpayers with discounted or free tickets to travel to Martha’s Vineyard. In response, the SSA notes that senior citizens (age 65 or older) who are year-round Falmouth residents are eligible for a senior citizen passenger fare, which is 50% of the regular adult passenger fare. Eligible senior citizen Falmouth residents can contact the SSA’s Group Sales office at [email protected] to request an application.

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Petition to Steamship Authority for Public Hearing on Proposed Schedules in 2021

May 29, 2020

Dear Steamship Authority General Manager Robert Davis,

Following submission of 50 signatures from Falmouth residents and a public hearing on August 26, 2019, the Steamship Authority Board voted to approve the "Report Issued

Operating Schedules" in October 2019. (1) The Report stated that a Long-Range Vineyard Transportation Task Force (2) would begin to function as a response to the Steamship Authority's decision on the public hearing.

The Task Force was supposed to address a wide range of transportation impacts (3) raised by residents during the August 26, 2019 public hearing.

Has the Long-Range Vineyard Transportation Task Force begun to meet? Have ce? Have any recent steps been undertaken to approach New Bedford or other mainland ports about the possibility of serving as a supplemental port for non-time-sensitive freight (for example, bulk construction materials, bulk landscaping materials, construction and demolition waste, single stream recyclables) for shipping to and from create a regional transportation plan to help mitigate impacts in Bourne, Falmouth, and other communities in southeastern Massachusetts?

Our information is that the Task Force has not yet been formed.

We find it unacceptable on the part of the Steamship Authority that it is proposing a 5:30AM freight schedule from Woods Hole terminal for 2021 before the Long-Range Vineyard Transportation Task Force has begun to function. We request that the Steamship Authority postpone approval of a 5:30AM freight schedule from Woods Hole terminal (as in the past, we object to the SSA-related large trucks traveling to the 5:30AM ferry that wake up Falmouth residents beginning at 4:45AM and earlier; we do not object to cars on that ferry) until a future date when the Long-Range Vineyard Transportation Task Force is functioning as the Steamship Authority promised in its Report eight months ago.

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We request that you conduct a public hearing, to be held within 14 days of receipt of this petition, on Steamship Authority proposed operating schedules for 2021, per Section 15A of the SSA Enabling Act.

Sincerely,

1 Arden Edwards 353 Woods Hole Road, Falmouth, MA 02540 2 Nina Levinthal c/o Flora Schiminovich, 7 Hilton Ave., Woods Hole 3 Laura Hastings 18 Spencer Baird Road, Woods Hole, MA 4 Jennifer Hastings 18 Spencer Baird Road, Woods Hole, MA 02543 5 Jan Elliott PO Box 598 Woods Hole MA 02543 6 Ann Newbury PO Box 724, Woods Hole MA 02543 7 John E. Dowling 106 Ransom Road, Falmouth 8 Patricia Tucker 1 Buzzards Bay Ave., Woods Hole 9 Camilla King 16 Butler St, Woods Hole 10 Peter Shile 25 Gardiner Road, Woods Hole, MA 03543 11 Anne D. Halpin 319 Woods Hole Rd. Falmouth 02540 12 Richard Lovering 338 Woods Hole Rd, Falmouth MA 02540 13 Stephen Gellis 24 Spencer Baird Rd Woods Hole 14 Elizabeth Farnham 101 Stoutenburgh Lane 15 David Hastings 18 Spencer Baird Rd. Woods Hole MA 16 Judith G. Stetson 261 Quissett Ave., Woods Hole, MA 02543 17 Jane E. Atwood 41 High Street, Woods Hole MA 02543 18 David Tucker 1 Buzzards Bay Avenue, Woods Hole, MA 02543 19 Bonnie Simon 144 Gardiner Rd., Woods Hole 20 Paul Lobo 114 Ships Watch Falmouth 21 Penelope McGill 8 Quissett Harbor Rd. Falmouth 22 Joseph Klimek 8 Quissett Harbor Rd. Falmouth 23 Hannah Coppola 40 Eric Clauson Lane, Falmouth, MA 24 Judith L. Day 55 Larches Way, PO Box 717, Woods Hole, MA 02543 25 Kate N. Day 5 Bowditch Road, Woods Hole MA 26 Russell G Murphy 5 Bowditch Road, Woods Hole 02543 27 Philip L Richardson 146 Church Street, Woods Hole, MA 28 Trina 19 Standpipe Hill Rd, Woods Hole, MA 02543 29 Bronwen Polloni 24 Sumner Street, Woods Hole 30 Walt Schanbacher 14 Cowdry Road, Woods Hole, MA 02543 31 Gerald J Fine 21 Church Street, Woods Hole 32 Catherine Bumpus 45 Millfield St Woods Hole, MA 02543 33 Nan Schanbacher 14 Cowdry Rd, Woods Hole, MA 02543 34 James Mavor 19 Standpipe Hill Rd, Woods Hole, MA

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35 John Bruce 14 School St., Woods Hole 36 Jonathan Goldman 12 Sidney Street, Woods Hole 37 Nicole Goldman 12 Sidney Street, Woods Hole, MA 02543 38 Wendy Nies 39 Eugenie Kuffler 49 Gosnold Road, Woods Hole 02543, MA 40 Rebecca Truman 3 Little Harbor Road, Woods Hole 41 Julia Leshin 59 Church Street, Woods Hole MA 02543 42 Barbara Jones 38 Locust St, Falmouth, MA 02540 43 Suzanne Kuffler 49 Gosnold Road, Woods Hole 44 Richard Balkin 3 Oyster Pond Rd 45 Valerie Walbek 32 Buzzards Bay Avenue 46 Susanna McKenna 90 Woods Hole Rd. 47 Gregory Wozena 296 Woods Hole Rd., Falmouth, MA 48 Shirley Wozena 296 Woods Hole Rd, Falmouth, MA 02540 49 Nan Logan 482 Woods Hole Road 50 Alberto Collasius jr 11 Juniper Point Rd 51 Damien Kuffler 49 Gosnold Rd., Woods Hole, MA 02543 52 Diana Roth 42 Glendon Road, Woods Hole

Margaret 53 McCormick 44 Quissett Ave, Woods Hole MA 02543 54 Kristin Alexander 101 Cumloden Drive, Falmouth, MA 02543 55 Andrew R Solow 44 Quissett Ave, Woods Hole MA 02543 56 Elena Trumbull 11 Church St., Woods Hole MA 02543 57 Nat Trumbull 11 Church St., Woods Hole MA 02543 58 John Woodwell 64 Church St., Woods Hole MA 02543

(1) See https://www.steamshipauthority.com/writable/versioned_downloadable_forms/p ath/report_-_proposed_2020_summer_operating_schedules_-_final.pdf

(2) The purpose of the Long-Range Vineyard Transportation Task Force ("Report," pg. 15) is "to identify reasonable steps that can be taken to address issues and concerns about freight and other traffic in each of those communities [Falmouth, Oak Bluffs, Tisbury, and New Bedford]."

(3) For photographs of those and other impacts, see www.woodshole.net

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Steve Sayers

From: Douglas Amon > Sent: Saturday, June 13, 2020 10:19 AM To: schedules Subject: Steamship Traffic

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe. on Woods Hole Road. PLEASE ask your BUS drivers to slow down from the Quissett lights to Woods Hole. 40 MPH NOT 50 Thank You. Doug Amon 8 Quissett Avenue Woods Hole

Sent from my iPhone

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Steve Sayers

From: Carissa April < > Sent: Thursday, June 18, 2020 1:29 PM To: schedules Subject: Concern with ferry schedule

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Greetings, We have noticed so much noise with large trucks going to and from SA terminal in Woods Hole. We live along Woods Hole Rd, set back from the road. When we are in our yard, driveway or garden, or we are outside on our deck, the noise from the trucks is so loud we have to stop our conversations to let them go by so we can be heard. Lately, there has also been more jake-breaking than ever, not sure why that change. We are very concerned with the additional freight traveling these roads and the noise and wear and tear they bring. We urge you to please consider alternate routes for getting freight to the island.

Thank you. Ron & Carissa April Woods Hole, MA

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Steve Sayers

From: Jane Evelyn Atwood > Sent: Tuesday, June 16, 2020 9:32 AM To: schedules Subject: schedule Woods Hole

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Please cut back the number of early morning trips that are the cause of noise and clog the main road with huge trucks that have no business being in little Woods Hole. This kind of cargo should leave from New Bedford or another similar port that is more appropriate for freight. I am part of a family who is a property owner in Woods Hole, as my parents were before. Jane Evelyn Atwood

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Steve Sayers

From: B J Atwood-Fukuda < > Sent: Wednesday, June 17, 2020 5:26 AM To: schedules Subject: freight traffic in Woods Hole

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

As property owners in Woods Hole for thirty years—one of us a lifetime summer resident—we're adding our voices to the chorus of protest against the use of our village as a freight corridor. These trucks are noisy, dangerous, and unwelcome, and there is absolutely no need for them to pass through here. The proper departure point for freight to the Vineyard is not our small village, but a city (with ferry service also in place) that accommodates such traffic routinely, such as—yes---New Bedford. Respectfully, B J Atwood-Fukuda and Koichi Fukuda Woods Hole

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Steve Sayers

From: Bob Bennett < > Sent: Saturday, June 13, 2020 6:04 PM To: schedules Subject: Trucks on Woods Hole Road

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

As a resident of Falmouth, living just off Woods Hole Road, I urge you to delay using Woods Hood Road for large trucks for early morning runs. We can hear the traffic on Woods Hole Road already (we are on Sippewissett Rd) and this traffic will wake us up before 5 am every morning.

Thanks, Bob Bennett, Sippewissett Road Falmouth, MA

Thanks, Bob

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Steve Sayers

From: Sent: Friday, June 19, 2020 8:50 PM To: schedules Subject: Steamship Authority traffic issues on Woods Hole Rd.

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I’m sending this to highlight what happens at our house in the early morning as the trucks travel down Woods Hole Road on their way to the ferry at Woods Hole. Our house is on the corner of Woods Hole Road & Ransom Road. The early morning truck traffic wakes us up every every morning with the trucks downshifting through their gears to come to a stop at the traffic signal at Oyster Pond Road & Woods Hole Road. In addition to the noise the whole house vibrates when they apply their air brakes. We’ve had issues with nail pops and cracking tile grout due to the constant vibrations.

We totally understand the need for trucks supplying March’s Vineyard but are still puzzled why these trucks cannot use the ferries out of the commercial port at New Bedford. In addition to the noise we also contend with litter, and the slaughter of the abundant wildlife that live in our area and move around in the early morning. Not a day goes by that some dead animal does not turn up on the read.

Thank you for your attention to these concerns.

I Sent from my iPad

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From: Gerry Fine < > Sent: Monday, June 15, 2020 8:55 AM To: schedules Subject: Steamship Traffic in Woods Hole

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I remain concerned about early morning truck traffic in Woods Hole and along Woods Hole Road, especially due to safety issues, and ask for reconsideration of the 5:30AM freight ferry.

And, just to reassure Commissioner Todd, I am a Falmouth resident.

Best,

Gerry Fine

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Steve Sayers

From: Meg & Ted < > Sent: Saturday, June 13, 2020 12:32 PM To: schedules Subject: To much freight going via Woods Hole to the Vineyard

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Dear Steamship Authority Board of Governors,

I ask that you not ignore our concern.We have personally worked trying to alleviate these problems for thirty years and have never gotten anywhere.So we write again asking to please hear our concerns. Years ago, former Falmouth Fire Chief Peck showed a film of a gas tanker flipping over into a Virginia neighborhood similar to the Falmouth/Woods Hole neighborhoods the tankers drive through very early in the morning.All the houses in the neighborhood caught fire; a tragedy that our community would like to avoid.Our hands are tied without your acknowledgment of this problem. Please, no more ignoring this reality. Children stand by the edge of these roads waiting for their school buses.It’s dangerous and you know it and it is your responsibility to change things. Sincerely, Ted and Meg Fitzelle

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GoldmanArts com ______instagram com/jon goldman studio facebook com/goldmanarts

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Steve Sayers

From: John Gore > Sent: Saturday, June 13, 2020 1:08 PM To: schedules Subject: Truck menace on Woods Hole Road

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I am writing to express my concerns about the traffic, particularly the increasing number of large trucks, that are ruining the quality of life for residents of Woods Hole, especially those who border Woods Hole Road. There is an urgent need to reduce the number of vehicles in total, the number that operate outside normal waking hours, but also the speed and noise of ALL trucks that use the ferry.

I own a house in Woods Hole near the junction of Woods Hole Road and Church Street. It was built in 1923 and so is “non-conforming” with modern setbacks, and was built before the modern road was widened and open to high volume traffic. It is consequently very close to the road and directly exposed to the noise, fumes and disturbance of traffic entering the port, more than most others. Our chief complaint is that drivers show no restraint at entering a heavily populated area, they disobey speed limits, they belch black fumes and emit horrendous noises (brakes and gears especially) even in the wee hours when others are asleep. Our front bedroom is unusable, especially in summer when the traffic is highest and windows are open. My other major concern is the inherent danger to pedestrians and homes from the sheer speed and mass of trucks entering and leaving the port. As they ascend Woods Hole Road and cross Inner Harbor they accelerate up the incline at maximum thrust, crashing through their gears and again emitting noise and fumes. This continues with increasing engine roars all the way at least to the level section before the turn off to Nobska Road. Coming into town they make the last turn just before Nobska at high speed and then rapidly decelerate, crashing loudly through their gears, emitting loud noises from the engine throttling and their brakes. A slight error would readily cause trucks to crash into the houses on the side of the road, a catastrophe waiting to happen when the roads are slick or the drivers are tired. The difference to the truckers of going more slowly, more quietly and with less menace cannot be more than two minutes if we instituted strict traffic calming zones and insisted on slower, quieter, calmer behaviors instead of macho aggression. But the impact on the environment and enjoyment of the village of Woods Hole for many of the residents and visitors would be huge.

I look forward to learning more about plans to abate the nuisance of the traffic in my neighborhood.

Sincerely Dr. John C.Gore 530 Woods Hole Road

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Steve Sayers

From: John Grande, Town Administrator Sent: Thursday, June 11, 2020 2:02 PM To: Steve Sayers Cc: [email protected]; James Rogers; [email protected] Subject: FW: Petition to Steamship Authority from Woods Hole residents and hearing on 11 June at 430PM

Sent from Mail for Windows 10

John “Jay” W. Grande, Town Administrator Town of Tisbury 51 Spring Street, P O Box 1239 Vineyard Haven, MA 02568

(O) 508-696-4203

From: John Grande, Town Administrator Sent: Wednesday, June 3, 2020 1:09 PM To: James Malkin; James Hagerty; Robert Whritenour; Tim Carroll; Jennifer Rand; Jeff Town Maddison Subject: RE: Petition to Steamship Authority from Woods Hole residents and hearing on 11 June at 430PM

Hello

Last year the Steamship Authority held a public meeting in the Falmouth High School at the request of Woods Hole Residents. Feels like less than a year ago. Island representatives came over along with several citizens to indicate the necessity for having the early morning vessels. I believe the SSA Board at the time took a vote and/or voice consensus concerning the schedule in agreement with interested parties that supported the retaining the early boat(s). Not sure of the entire agenda, but could not login. Bob Davis should have letters from Oak Bluffs and Tisbury which were entered into the record from the prior meeting. I do not think it is fair to us to come out again to defend something that was thoughtfully considered and decided, if that is what is proposed.

Jay

Sent from Mail for Windows 10

John “Jay” W. Grande, Town Administrator Town of Tisbury 51 Spring Street, P O Box 1239 Vineyard Haven, MA 02568

(O) 508-696-4203

From: James Malkin Sent: Tuesday, June 2, 2020 4:06 PM 1 83 August 2020 Port Council Meeting To: James Hagerty; Robert Whritenour; John Grande, Town Administrator; Tim Carroll; Jennifer Rand; Jeff Town Maddison Subject: Petition to Steamship Authority from Woods Hole residents and hearing on 11 June at 430PM

Dear Towns:

The attached webpage is a copy of a petition by 50+ Woods Hole residents to the SSA regarding the 2021 proposed schedule. There will be a Zoom public meeting on this petition on June 11 at 430 - notices will be sent to the papers. Please make your BOS aware of this petition and request that someone from your town attend to present your views.

Essentially, the petition asks to eliminate early morning truck schedules to MV, to approach New Bedford or other posts to serve for construction materials, landscaping materials, waste and recyclables and to mitigate impacts in Bourne, Falmouth and other communities in SE Mass.

I am sure you are aware of our islands needs and the potential impacts of these elements in the petition on costs and operations.

As a Board Member, I will be observing. It will be helpful for the island to make views known.

Thanks -

https://remote.steamshipauthority.com/owa/,DanaInfo=ssaadmcas3.steamshipauthority.com,SSL+attac hment.ashx?attach=1&id=RgAAAABcXhcKKa6dSabHZsoMxGr0BwCdESlK4kPbSpoq5YvTfVqXAAAAAAEM AACdESlK4kPbSpoq5YvTfVqXAAA4QWO6AAAJ&attid0=EACwF615IIzqT70+oRJatNAS&attcnt=1

Stay safe, wash and distance -

JMM

Everything returns to the Earth - either as food or as poison

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85 August 2020 Port Council Meeting Hello,

I want to inform you that a petition has been submitted to the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority by no fewer than 50 Falmouth residents who have requested a public hearing on the proposed 2021 Winter, Spring, Summer and Fall Operating Schedules. Specifically, the request objects to the inclusion of the 5:30 a.m. freight trip from Woods Hole on the schedules before the Long-Range Vineyard Transportation Task Force, which the Authority Board voted to approve at its October 15, 2019 meeting, is formed and begins to function.

Pursuant to the Authority’s Enabling Act, a public hearing will be held at 4:30 PM Thursday, June 11, 2020 via Zoom videoconferencing. The public may participate in the meeting, including offering testimony, by going to zoom.us and using meeting ID 895 6301 9690. Participants can also use the same meeting ID and join telephonically by calling one of the following numbers: (669) 900-6833, (346) 248-7799, (929) 436-2866, (253) 215-8782, (301) 715-8592, or (312) 626- 6799.

You can find more information on the hearing here: https://www.steamshipauthority.com/about/news.

Thank you.

Bob

Robert B. Davis General Manager Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority 228 Palmer Avenue Falmouth, Massachusetts 02540 508-548-5011 ext. 200

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Town of Tisbury Office of the Town Administrator 51 Spring Street, P.O. Box 1239 Vineyard Haven, MA 02568 (Tel. 508-696-4203)

August 19, 2019

Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Board P.O. Box 284 Woods Hole, MA 02543

Robert R. Jones, Chairman Marc N. Hanover, Vice Chairman Kathryn Wilson, Secretary Moira E. Tierney Robert F. Ranney

Re: Reduction in Service to the Island of Martha’s Vineyard

Dear Members of the Board:

We recently learned of a pending request before you to eliminate the 5:30 a.m. ferry service to the island. The Tisbury Selectmen adamantly oppose any reduction in service.

The Town of Tisbury is the year-round port for the Island of Martha’s Vineyard for the transit of passengers, freight and vehicles. Our residents, businesses and daily commuters rely on the early morning boats for our workforce, daily deliveries and to meet medical appointments off island. Eliminating or reducing the morning ferry service from and to Woods Hole, and specifically the 5:30 a.m. ferry service to the island, will have a substantial adverse impact on the island. The reduction in ferry service will increase traffic congestion on island, impede public transit service provided by the Vineyard Transportation Authority and unnecessarily prevent the smooth and timely flow of goods and services to the island.

The Steamship Authority provides an essential service for the island towns. This essential service cannot be met with an elimination or reduction in service. We believe the current schedule for ferry service provided by the Steamship Authority is just meeting the minimum needs of the island.

Sincerely,

John Grande, Town Administrator

Cc. Robert B. Davis, General Manager George J. Balco, Port Council Chairman

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Steve Sayers

From: Dawna Hammers < Sent: Sunday, June 14, 2020 12:09 PM To: schedules Subject: No 5:30 freight boat!

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Dear Steamship Authority, I’m greatly concerned a 5:30 freight truck boat will bring too many big, noisy, polluting and dangerous trucks traveling too fast down Woods Hole Rd too early in the morning into precious, quaint, historic Woods Hole. This will be both very disturbing to hard working residents As well as dangerous due to the many oil and gas trucks traveling on icy roads. There’s no great need for this, just capitalistic greed and overdevelopment. PLEASE STOP THIS FROM HAPPENING! Thank you very much, Dawna

Sent from my iPhone

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Steve Sayers

From: Dawna Hammers < > Sent: Wednesday, June 10, 2020 9:43 PM To: schedules Subject: Freight trucks

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Dear Steamship Authority, The amount of increased freight trucks that you are proposing to have go up and down Woods Hole Rd is LUDICROUS!

As it is there are too many cars and trucks racing beyond the speed limit everyday let alone more.

Woods Hole is too small and too precious. We expect that you respect and protect the people who live and work here at all costs.

We all need to simplify and downsize for the health of the people and the planet NOW.

I also speak on behalf of the endangered encroached upon wildlife that live in this area... turkeys, deer, fox, coyotes etc.

Noise pollution is real and adds to stress and air pollution leads to more cases of COVID cases!

PLEASE STOP THIS DESTRUCTION & TURN THIS SHIP AROUND!

Dawna Hammers 326 Woods Hole Rd

Sent from my iPhone

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Steve Sayers

From: Marko Horb < > Sent: Thursday, June 11, 2020 1:08 PM To: schedules Subject: Traffic issues

Dear Steamship Authority, I received a letter in the mail from one Nat Trumbull asking me to sign a petition in regards to "concerns about Steamship Authority traffic growth". I want to state that I have no such concerns. I live on the corner of Woods Hole Road and Mullen Way (4 Mullen way) and my bedroom window faces woods hole rd. I am not bothered by any Steamship Authority traffic and was fully aware of such traffic when I purchased the house. I want to state that as only 58 residents signed their petition this does not represent other individuals in the Falmouth/Woods Hole area who have no issues. We don't have a petition to sign since one is not needed. I have no issues with traffic using Steamship Authority since this is the main route that must be used. If I had concerns I would not have bought a house that is adjacent to Woods Hole Rd. Please be aware there are many citizens like myself who have no concerns and support the new schedule and the 5:30am addition. the volume of traffic and noise is minor.

Sincerely Marko Horb 4 Mullen Way Falmouth, MA

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Steve Sayers

From: Richard Hugus < > Sent: Saturday, June 13, 2020 11:13 AM To: schedules Subject: Comment on Steamship Authority traffic

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Dear Steamship Authority Board,

Two Dukes County commissioners have questioned whether commenters on Steamship Authority traffic problems are even residents of Falmouth, I assure you that I am a resident, I own a house on Woods Hole Road, and I am opposed to the addition of a 5:30 AM freight boat to the Authority's schedule on the grounds of noise, air pollution, and safety. My mailbox is five feet from your trucks and l live in the back of my house in order to avoid noise from the road. Several times a day, trucks engine brake on the downhill by my house, and it is truly obnoxious.

The rights of Martha's Vineyard should not come at the expense of Woods Hole. If the new freight boat is so vital, I see no reason why it can't run out of New Bedford.

Richard Hugus

312 Woods Hole Rd.

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Steve Sayers

From: Suzanne Kuffler < > Sent: Sunday, June 14, 2020 8:27 PM To: schedules Subject: Scheduling matters

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I support residents of Falmouth/Woods Hole who are affected by truck noise related to the 5:30 AM ferry out of WH. I cannot find a serious, convincing reason that this ferry run cannot be move up an hour or even more on a regular basis. Were the Vinyarders to seriously consider how they would like this situation themselves, no doubt dealing with slightly later delivery times would seem the most reasonable of concessions and one that can be lived with. Lack of sleep has no benefits or even remediation except for better sleep environments. I am beginning to see this matter as a sound civil rights practice. Please remove the early morning (5:30 AM) ferry. Let’s be ahead of the curve on this matter and set a good policy example for everyone. Suzanne Kuffler Woods Hole

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Steve Sayers

From: Stephen Laster < > Sent: Thursday, June 11, 2020 12:25 PM To: schedules Subject: Comments on proposed schedule

Dear Steamship Board of Governors and Mr. Davis,

As a concerned citizen of Falmouth, I am writing in deep opposition to your current and proposed schedule. I am opposed to the continuation of the 5:30 am departure from Woods Hole and request you change your schedule such the first departure is at 6:30am

As you well know, your schedule results in truck traffic down the Woods Hole Rd as early as 4:30am. Many of these trucks operate in violation of Falmouth noise ordinances and many are encouraged to stop and illegally park on the dirt siding about 1 mile out of town given your rules about entering the Woods Hole terminal. The net result of these actions, that are directly tied to your schedule, is that many of us are unable to sleep past 4:30 am. This situation is frankly unacceptable.

I must also remind you that when I bought my house on the Woods Hole Rd some 26 years ago, your operations did not cause these issues. At the time of our purchase, your company was run as a compassionate and constructive member of the Woods Hole community. You provided good jobs and were a good neighbor. Your leadership was able to balance the island and mainland needs and we were able to get a good night of sleep. I am not sure what compelled you to change and to operate under a scorched earth policy towards Falmouth. Whatever the driver, it is truly shameful that the leadership of the Steamship is unable and unwilling to work towards a compromise.

Given the state of the world today and the shakey state of the Steamship, I encourage you to take a change of strategy. I encourage you to find common ground and once again become a positive member of the larger Woods Hole community. Changing your schedule so we can sleep is the moral solution. Operating the Steamship with a view towards the total economic cost and not just financial profit and loss is the right thing to do. Building a community bridge across Vineyard Sound is the right thing to do.

Please do the right thing and change your schedule. Compromise is a true demonstration of leadership.

With Respect and Deep Concern

Stephen Laster

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Steve Sayers

From: Ann Newbury < > Sent: Saturday, June 13, 2020 11:05 AM To: schedules Subject: Traffic pressure

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I am a year around resident of woods hole. The truck traffic on our village roads, the early morning noise from them and the parking on Bar Neck Road is problematic. Too many early trips of the ferries could be alleviated by bringing New Bedford facilities on line. Now is the time to keep the Woods Hole terminal at a smaller size and make a start at investing in diversification by developing New Bedford.

Your terminal development at Woods Hole is decidedly ugly and overbearing from the water and we town residents have rights to be out there.

Please consider the town you are destroying as you plot to make more money and serve people who live elsewhere.

Thank you,

Ann Newbury Woods Hole, Ma Sent from Ann Newbury

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Steve Sayers

From: David Prosten < > Sent: Saturday, June 13, 2020 3:21 PM To: schedules Subject: SSA and Woods Hole Road

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Friends, we are year-round residents at Treetops, a condo development on Woods Hole Road in Falmouth, midway between the villages of Falmouth and Woods Hole, and we’re asking that the 5:30 a.m. freight run from Woods Hole be relocated to New Bedford. The truck sounds at that time of morning are just too much, and the noise is often exacerbated by the use of jake brakes (which are >always< too much, regardless of the time of day). We haven't talked to every single neighbor in our 62-home community, but each that we have discussed it with agrees there’s a problem that needs to be fixed.

Sincerely, David Prosten & Sarah Flynn 64 Landfall Falmouth

Sent from my iPad

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Steve Sayers

From: Patti Riccardelli < > Sent: Saturday, June 13, 2020 1:22 PM To: schedules Subject: Noise and traffic

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I am a resident of Treetops. It is evident that there is an increase in large vehicles heading for the ferry. These noise is annoying and the traffic is even more so. I wonder if some of these vehicles might be routes through Plymouth or New Bedford. Patricia Riccardelli 84 Ships Watch Treetops

Sent from my iPhone

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96 Locust St. Falmouth, MA 02540

June 15, 2020 Atty. Steve Sayers, Steamship Authority

Dear Mr. Sayers,

I watched the Steamship Authority hearing on Zoom last Thursday and would have offered the following comments if I had been able to find the “speak” button. Please include these comments with the other testimony concerning SSA truck traffic on Woods Hole Road and Locust Street, Falmouth.

I live in a 230-year-old house on Locust Street (the upper part of Woods Hole Road) in Falmouth. The house stands very close to the two-lane road, and it vibrates and shudders when the long trucks race to and from the Steamship Authority docks in Woods Hole. The sound is particularly alarming when these behemoths hit the two cracks in the road in front of my house. (We asked the town to fill them in January.) I’m not sure how much more stress the house and its occupants can take.

The house and others nearby are of some value to the town. They are in Falmouth’s Village Green National Historic Register district. They are on the Historical Society’s Village Green Walking Tour. We have lived here since 1983 when traffic to the island of Martha’s Vineyard was much less noticeable. Oil tankers did not use the road, trucks supplying the Vineyard were smaller and some used private freight boats from off-Cape. The quality of life on the street was pretty good.

As the Vineyard became an increasingly popular destination in the 90ies, the SSA eventually responded to the rising complaints about the traffic noise and congestion with a parking lot and busing system to reduce car traffic on the road. However, around the same time the SSA began handling all the trucks and tankers to the Vineyard out of Woods Hole. The people of Woods Hole and Falmouth have been asking the SSA to shift freight operations to New Bedford since that time.

The more recent introduction of long, long-haul trucks onto this residential street now makes it imperative for the SSA to either move freight operations to New Bedford or Bourne, or go out of the freight business. It is not fair for the SSA to destroy part of one member town to benefit another member town.

We have tried to adapt to our new living conditions. We no longer use the front rooms of our house. The back door is our front door, But now even at the back of the house, it is hard to converse outside when one of the long trucks is

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passing. Yes, we could move to another house, if we could sell this one. But because the SSA has made Locust Street a truck route, houses on the street no longer sell.

I know it takes time to resolve problems like this, but we have been talking with the SSA about the truck traffic for years. It is time for action. I offer three suggestions:

Raise SSA freight rates to make it more feasible for a private business to undertake shipping these trucks from New Bedford or some other mainland port.

Or, raise rates on the huge trucks to encourage shippers to return to using smaller trucks.

Or, explore with the Mass Maritime Academy and the Cape Cod Canal the possibility of using their docking facilities for Vineyard freight either temporarily or permanently.

At the hearing you mentioned that a special SSA-Falmouth Committee is looking at several ideas that I think would prove helpful. Please act on them.

The proposals would:

Require truckers to adjust their equipment to reduce the noise on the Woods Hole run. Start with the long Cape Cod Express trucks. There are two or three that seem to use this road once or twice a day. They are by far the noisiest on their return run when they are empty and speeding over the cracks in the road. It sounds like something large and metal is loose and crashing around in the back of the trucks. Or, possibly the connection between the cab and the van is too loose. Test the sound volume of traffic on Locust St. You are welcome to put a meter on our property. Ask the state and town to reduce and enforce speed limits on the road. I think the northbound speed limit is 25 mph, but the trucks slow down only when traffic is backed up.

And, finally, ask the state Transportation Dept. to fill the cracks in Locust Street. Sincerely,

Ann Sears

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Steve Sayers

From: Deborah Siegal < > Sent: Saturday, June 13, 2020 8:42 PM To: schedules Subject: Schedules

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Dear Steamship Authority Board:

I am not a Woods Hole resident, but have lived in Falmouth for 40 years. Life for everyone I know has been increasingly and adversely impacted on a regular basis by the excess of traffic going to the Vineyard.

What has added insult to injury, however, has been the early morning truck traffic on Rte. 28 headed for the first ferry leaving Woods Hole. We live in West Falmouth, approximately 1/2 mile west of that road, and are frequently awakened at 4:30 to 5:00 a.m. in the warmer months when our bedroom windows are open.

I suspect that the hard-working, year-round residents of the Vineyard aren't the ones receiving this excess of "goods" that is so terribly important. New Bedford wants this traffic. Falmouth doesn't.

Sincerely, Deborah Siegal Richard Payne

-- This email has been checked for viruses by AVG. https://www.avg.com

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Steve Sayers

From: Sent: Saturday, June 13, 2020 11:15 AM To: schedules Subject: early boat

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I'm a year-round Woods Hole resident. I also have a family home in Chilmark. I listened to the recent public meeting about the boat schedule. As I'm sure you heard, the early freight boat is a big problem here in Woods Hole. The truck noise and traffic begin around 4:30 AM and deprive residents of the right to live in peace in their homes. Many of the truck drivers flout the law by speeding and by parking illegally in the turnout on Woods Hole Road. This is not directly your fault but you could do something about it and have not. The arguments presented in favor of retaining the early boat were not persuasive. It is clearly there for the convenience of the Vineyard without due regard for the inconvenience (and worse) of Woods Hole residents. Your intransigence on this and other issues is not going to end well for the Steamship Authority. Dealing honestly and effectively with the early boat is not only the right thing to do, it is the smart thing to do.

Andrew Solow Quissett Avenue Woods Hole

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Pam and Wallace Stark

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Steve Sayers

From: Sent: Saturday, June 6, 2020 1:31 PM To: schedules Subject: public hearing on proposed schedule changes June 11

Thank you for holding a public hearing on proposed schedule changes.

Due to my personal technical limitations I cannot attend, but I would like to submit the following comment:

The early morning freight ferry from Woods Hole should be canceled, or at the very least restricted to passenger cars only. The noise and vibrations of heavy trucks barreling down Woods Hole Road into our small village should not ever be allowed until a 6:30 AM ferry at the very earliest. All of your customers should be reminded of the 40 mph speed limit on Woods Hole Road. It drops to 35 mph near the intersection of Harbor Hill Road.

Thank you for your consideration, Judith Stetson 261 Quissett Ave. Woods Hole, MA 02543

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Steve Sayers

From: Nathaniel Trumbull > Sent: Monday, June 8, 2020 11:24 AM To: Steve Sayers; Alison Fletcher; schedules; Doug Jones; Kathryn Wilson Subject: Fwd: Sippiwissett/Quissett Ave. corridor

Alison and Steve,

I am forwarding the message (I removed the author's name) below as it mentions a GPS issue in another context.

Please see the other comments as well.

Nat

------Forwarded message ------Date: Mon, Jun 8, 2020 at 9:56 AM

Good Morning Nat, In reference to our call a few weeks ago, I'd like to propose adding the automobile traffic into any environmental impact study and include the Sippiwissett/Quissett Ave corridor as well. Although most trucks stay on Woods Hole Rd, GPS assisted drivers often come off at Quissett Hbr Rd and continue onto Quissett Ave. And hundreds of cars a day use Quissett/Sippiwissett as an alternate route, whether due to local knowledge or due to GPS. Our Quissett Hbr/Quissett Ave corner stop is assaulted environmentally as a result, including stop and go exhaust emissions, brake pad particulate, various fluid leakage etc. A couple questions/proposals- 1. Is the Sippiwissett/Quissett Ave corridor under state supervision similar to Woods Hole Rd/Rt 28, or does Falmouth have a say in regulating/restricting traffic on it? 2. Should emphasis on New Bedford be strictly for freight? Why can't provisions be added to include car traffic coming up 95/195 etc? 3. Environmental studies should include HUMAN physical and psychological impact. The most obvious perhaps being air quality, but also including sleep loss/deprivation, extreme levels of noise pollution affecting mental health etc. There must be existing scientific studies to aid this.

Thanks,

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Public comment from Nat Trumbull, read during public hearing on June 11, 2020

Dear Steamship Authority Board members,

I would like to address three topics. The first topic is a short history of the 5:30AM freight scheduling from Woods Hole, the second is about the economics and environmental considerations of a mainland port such as New Bedford as a potential supplemental freight port for the islands, and the third is more specific to our petition.

1. First a short history of the 5:30AM freight truck scheduling

The Steamship Authority has known about its freight truck impacts on Falmouth residents, and especially its early morning impacts, from before it began scheduling a 5:30AM ferry with freight trucks in 2012.

I quote from the October 2011 Steamship Board meeting minutes, when a 5:30AM freight schedule was first proposed from Woods Hole: "Mr. Hanover ... cautioned that there should not be any excessive noise in either Woods Hole or Vineyard Haven, observing that if the Authority's operations begin to cause problems at that time of the morning, the early trips may have to be discontinued." The Falmouth Port Council member at the time voted against a 5:30AM freight scheduling from Woods Hole.

In other words, Steamship Authority leaders understood that such early morning freight had the potential to wake up hundreds of Falmouth households on a daily basis, which by all accounts, has continued for the last eight, and now nine, years. 1

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The first three years, in clear violation of Section 15A of the Enabling Act, the Steamship Authority ran no public announcement about the introduction of the 5:30AM freight ferry as it began in 2012.

Nor was the new 5:30AM freight trip listed on the Steamship Authority's published schedule. The SSA from the beginning did not even notify, much less consult with, Falmouth residents about its new schedule.

While the SSA has made some minor changes in recent years to the length of the trucks allowed on the 5:30AM ferry (trucks of up to 40' are still allowed on that freight boat), Falmouth residents still face trucks racing through residentially zoned neighborhoods for the 5:30AM boat for almost six months of the year.

This has meant heavy trucks in residentially zoned parts of Falmouth beginning at 4:45AM. There are cases of truck arrivals much earlier than 4:45AM. I would direct you to the photo and video evidence at www.woodshole.net

I would also encourage Board members to go back and look at the dozens and dozens of submitted written comments, all on the SSA website, a petition of more than 229 residents in July 2017, and letters from Falmouth selectmen and Representative Fernandes about the Steamship Authority’s “noise pollution,” in the words of Representative Fernandes in his letter.

The SSA's refrain, in response to our objections to the noise, is that truck demand to the Vineyard is up. This is true, at the rate of about 4% a year (a doubling every 18 years). A few Vineyard leaders have pointed out that Woods Hole's own traffic is also up. This is true.

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I have looked into the annual traffic counts of Class 5 vehicles (trucks, buses) on Woods Hole Road conducted by the Cape Cod Commission. I have compared those actual traffic counts on Woods Hole Road with the daily SSA-truck count to the Vineyard for the same dates, together with SSA buses.

These figures show that 2/3 of the trucks and buses on WH Road (and an even larger percentage if you take the longer trucks) are going to or from the Vineyard.

One other episode of note: In 2018 the SSA added three round-trip freight trips later in the day during the summer months (ironically those three trips were added in response to Falmouth residents request for a public hearing in 2017 about rescheduling the 5:30AM freight; the Vineyard got three new round-trip freight runs in 2018 from our public hearing process, and Falmouth residents were left with a 5:30 freight ferry still carrying trucks).

2. I would like to comment briefly on the failure of the SSA to take any steps to supplement its Vineyard freight route with an additional mainland port. Yes, New Bedford is geographically further. But that's not relevant for non-time-sensitive goods. That's not how it works with waterborne deliveries (see goods from China).

Martha's Vineyard receives and sends a lot of non-time-sensitive goods.

Whether it be gravel, stones, bark mulch (a driver last Sunday morning reported he was delivering 100 yards of bark mulch to the Vineyard in his 53’ trailer), truck- length long trees, construction and demolition materials, trash, or recyclables, the Steamship Authority sends it all through Woods Hole.

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Our estimate is that 70-80% of the trucks delivering goods to the Vineyard go right by New Bedford on Route 195. What about the cost of wear and tear to trucks, time spent in congestion (and creating congestion for others), and diesel fuel of those trucks as they loop up to Wareham, up and down the Bourne Bridge, through two rotaries, and into residential neighborhoods in Falmouth to Woods Hole, a distance of 39 miles by road from New Bedford? The SSA operates like these costs are externalities to its operations. But someone is paying for them. In the case of Falmouth residents, we are paying for those costs in terms of being woken up by early morning noise, by diesel soot, and overall congestion.

We hear that New Bedford, because it is further, is more expensive, and will raise the cost of goods on the Vineyard. The MV Commission's Regional Transportation Plan 2020-2040 cites the finding that prices on the Vineyard are really not as dependent on freight rates as Vineyard residents (or I used to) think. The finding, and I would urge SSA Board members to read that finding, is that only 1-2% of the final cost of goods on the Vineyard depend on the final waterborne leg of delivery from the mainland to the Vineyard. (See http://www.mvcommission.org/sites/default/files/docs/Martha%27s%20Vineyar d%20RTP%202020-2040%20FINAL%20%28APPROVED%29%208-22- 19%20opt 0.pdf, page 57).

I know this seems counter-intuitive, but think of the tens of thousands of dollars of goods being carried by most trucks. A slight increase in cost of freight would be almost imperceptible in the final cost of goods on the Vineyard.

If freight by barge could be organized more broadly (and I think we all would agree that it could cost less than what the SSA charges on its existing vessels), non-time-sensitive goods may well be less expensive on the Vineyard.

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The fact that the Vineyard could source to a wider range of providers of goods more competitively through New Bedford is something that you may not hear from bulk shippers who are operating today.

What about from an environmental perspective? We have looked at this closely and I can assure you that 10-12 trucks burn up more fuel on the 39-mile run from NB to WH by 195 and Route 28, plus WH to Vineyard by Steamship Authority vessel, than a straight waterborne run from the Vineyard to New Bedford.

With reasonably fuel-efficient ships, and especially if they can slow down, fuel and carbon footprint are decreased. This is all the more true if barging freight to the Vineyard.

Putting passengers and trash and demolition materials on the same boat makes no sense in this day and age. Passengers and freight have different needs. Passengers need toilets and refreshments. Freight does not.

What about the experiment a full 20 years ago for freight delivery from New Bedford? Well, speak with anyone. The freight route for those two summers of 2000 and 2001 was mismanaged from the start. Drivers who wanted to be on the New Bedford route could not get reservations easily. The timing was less than ideal in terms of Vineyard arrival and departure time. Speak with crew from that period and they will tell you the same thing. Yes, the SSA lost money on the route, but the third-party operator also made more than a million dollars, according to court testimony that came out later.

The most convincing evidence to me of the viability of a New Bedford waterborne freight route comes from Craig Johnson, who was one of the third-party operating staff of the New Bedford freight experiment in 2000 and 2001. Mr. Johnson came back after the second summer of the freight experiment from New Bedford and

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submitted a formal request to operate freight as a private operator on that route. He of all people was in a position to know if it would work. The Steamship Authority denied his application, said the Steamship Authority would do it itself, and then never did.

I have said this before elsewhere, but the fact that the SSA is unwilling to provide and publicize a formal Request for Proposals for freight service from the mainland to the Vineyard smacks of protectionism (we know the argument, without dominating the market, the SSA will never survive through the winter). This is archaic thinking. The Vineyard good market is six to eight times larger than it was 60 years ago when the Enabling Act provided the Steamship Authority with licensing rights over all other freight carriers. This argument justifies just more and more spending and overspending by the SSA, of which we have seen our share in Falmouth and Woods Hole (and to which we could devote a separate public hearing).

Wouldn’t Vineyard residents themselves be interested in shifting some freight to a mainland port in terms of providing for some redundancy of freight service through only Woods Hole? Aren't those trucks on SSA vessels taking up valuable space that Vineyard residents and visitors may need for their own cars? Wouldn't there be interest in future waterborne travel from New Bedford for cars to and from the Vineyard for those traveling to and from points south?

3 The third topic concerns the petition from Falmouth residents.

I know the Board members are singularly focused on the SSA's bottom line this year. But insisting on a 5:30AM freight scheduling is not the way to save money. You made delivery to the Vineyard work without a 5:30AM freight boat up until 8 years ago. Since then, you have added three new round-trip freight trips in as recently as 2018.

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Not listening to, alienating, and demonstrating to Falmouth residents just how disenfranchised we are about Steamship Authority decision-making that impacts our neighborhoods directly is not the way forward.

After the Steamship Authority’s last public hearing in October 2019, the SSA promised us in a lengthy report, in what was essentially the decision from that public hearing, a Long-Range Vineyard Transportation Task Force. The Board unanimously approved that report.

Where is the Task Force? This should not be a case where COVID-19 intervened. Falmouth appointed two representatives, including a selectman, to the Task Force at the end of last year.

There's been no reason why that Task Force could not have been convened, and met remotely. I assume when that Task Force eventually will be convened that it will meet large remotely.

By all reports, demand will continue to be soft in summer 2021. It’s therefore particularly offensive to see that the Steamship is insisting on keeping a schedule for summer 2021 with 5:30AM freight from Woods Hole for almost six months from May 2021 through October 2021.

Are Vineyard roads really so congested during the second half of September and all of October that you need 5:30AM freight deliveries? Something is wrong here. Need I remind you that September and October are when our children are supposed to be back in school and families, among other Falmouth residents, can make good use of a full night's sleep?

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137 August 2020 Port Council Meeting

At our hearing today, we are requesting specifically that the Steamship Authority wait until a later date to approve its 5:30AM freight scheduling for summer 2021. We do not understand the rush. I would note that the summer schedules in past years have traditionally not been approved until September of the preceding year.

Under circumstances of so many unknowns concerning demand for 2021, postponing approval of the 2021 summer schedules seems the only reasonable approach to take, rather than a scorched earth approach as concerns early morning freight scheduling from Woods Hole.

I do remember one comment at one of our first public hearings about the 5:30AM freight: Could the Steamship Authority not simply wait 1/2 hour to start your freight operations out of Woods Hole? You are bothering hundreds of households.

Falmouth residents have already made compromises. We originally asked for a first freight boat to be only at 6:30AM out of Woods Hole. We now are asking that only 5:30AM freight be eliminated? Can the Steamship Authority not make any meaningful compromises?

In conclusion, I find the Steamship Authority's response to so many of our concerns, and over such a long period, to be unethical.

There are other solutions for bringing non-time-sensitive freight to the Vineyard if that freight cannot be carried later in the day from Woods Hole.

Unlike Barnstable which has an agreement with the Steamship Authority for a maximum number of boat trips permitted daily, the Town of Falmouth currently has no such agreement with the Steamship Authority. 8

138 August 2020 Port Council Meeting

One of the initiatives we will be pursuing in Falmouth is a citizens petition article for our town meeting with the goal of placing limits on the Steamship Authority's growth in Falmouth. Barnstable will be the precedent for us.

I would point out that a state highway does not extend jurisdictionally all the way to 1 Cowdry Road in Woods Hole from Bourne. There are at least two sections of roads to the Woods Hole Terminal that belong fully to the Town of Falmouth and over which Falmouth has say. Our goal will be for Falmouth to take back those road sections under its own rules.

The Steamship Authority's insistence on the 5:30AM freight scheduling from Woods Hole only motivates us more strongly to pursue changes to the Enabling Act.

A push for change to the Enabling Act may be gaining ground on the Vineyard, as the Steamship Authority for too long has flooded the Vineyard with autos and ran roughshod over Vineyard residents’ own environmental and other sensitivities. See for example “The Steamship Authority, Supplying the Demand” in the Vineyard Conservation Society’s newsletter last year (http://www.vineyardconservation.org/httpssitesgooglecomavineyardconservatio norgvineyard-conservation-societyHome/almanac-archive/the-steamship- authority-supplying-the-demand)

This year’s economic crisis will likely only place a more critical public eye on the need for change to the Enabling Act.

At the same time, I would ask that the Steamship Authority not frame your response to our request today only within the context of COVID-19; that is, we do

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not want to hear that you cannot do this or that in 2021 because of COVID-19 conditions. That is unacceptable to us.

The Enabling Act has been changed before. It will be changed again. Falmouth residents will be heard. One phrase in Section 6 of the current Enabling Act should be kept: “The exercise of the powers granted by this act will be in all respects for the benefit of the people of the commonwealth, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions.” It’s time for the Steamship Authority to live up to at least this part of its charter. It’s our Commonwealth too.

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152 KWWSVZZZPYWLPHVFRPZRRGVKROHUHVLGHQWVGHQRXQFHHDUO\IHUU\WUXFNV  August 2020 Port Council Meeting

25 COMMENTS

1. New News June 12, 2020 at 12:47 pm

I’m hoping the Woods Holers were served good cheese with their whines.

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o dondondon12 June 12, 2020 at 5:15 pm

new news– the residents of woods hole have every right to express their displeasure about truck traffic going down their roads every morning at 5 AM.

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o Pekinfinearts June 13, 2020 at 12:52 am

Fabulous!

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2. dondondon12 June 12, 2020 at 1:59 pm

Another reason to have electric vehicles and ferries.

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o ajay June 13, 2020 at 10:46 pm To run electric ferries how much will the ticket prices have to increase?

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ƒ dondondon12 June 14, 2020 at 11:53 am AJ Over the long haul, electric ferries are cheaper to run because of reduced maintenance cost and cheaper fuel per mile prices. Electric ferries also have the added benefit of no diesel exhaust if you happen to be sitting outside. No chance of fuel leaks, and no chance of having the bilges pumped out accidentally. But back to the cost. The short answer to your question is that as long as we can get competent management, ticket prices should go down.

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ƒ TQ June 14, 2020 at 3:10 pm Donx3…where would you propose putting the massive recharging stations that would be required? Not a lot of available space in WH, VH, OB.

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ƒ dondondon12 June 15, 2020 at 8:56 am tq– good point. My rough calculation of that is larger than I would have expected. It comes out to about 8,000 cu ft. or a 20 ft cube, for a quick charging station. Likely less for slower charging station. But we could easily

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expect it to be the size of 2 car garage. Do you have any more accurate info on that question ? Probably wouldn’t need one in O.B Thanks for bringing that up. I hadn’t thought about it.

3. DeanRosenthalMV June 12, 2020 at 6:12 pm

I’m with Woods Hole on some of this — when their houses were purchased, many of them, the kind of traffic that existed then was exponentially less. It’s not as simple as “we all choose where we buy our houses”. And for Vineyarders who whine that Woods Hole is whining, give us a break! Do you really want to hear trucks squeal at 5:30? But it sounds like the actual problem is dangerous driving and gear shifting and brakes in that department. Is it really the case that things can’t be adjusted? I have NEVER been up that early on MV and I’ve lived here almost a decade (the rare night owl who lives here) but I find it hard to believe that island traffic is at top rush hour before 7:30-8 AM. We really can’t push things up? That seems ridiculous. Maybe commission a traffic study and see what the facts are.

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o SallyGeorge June 13, 2020 at 10:28 pm It’s not about Island traffic. It’s about the trucking coming down out of Boston or from NYC being able to operate as efficiently as possible before they even get on that boat. When you force them to run in traffic, you force them to run dirty and expensive. Thats more pollution for the Cape and higher costs for the Island. Or worse, trucks kill the route entirely.

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ƒ ajay June 14, 2020 at 11:14 am

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This is the Vineyard. Stop being sensible.

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4. viewfromhere June 12, 2020 at 8:23 pm

New Bedford was already tried a couple of times for freight and failed. These people in Woods Hole constantly complain about all things SSA. I think the SSA was there before you bought your house and will be there long after. Food and products have to be delivered to the island in the early morning to schedule main street deliveries to not screw up traffic too much on island. The trucking companies and the SSA have tried to be very accommodating to the Woods Hole residents, but they won’t let it go until they shut down all traffic morning, noon or night. Good luck with that

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5. oceanna June 12, 2020 at 9:46 pm

i happen to know a lot of people who live and work in woods hole. they are warm, friendly and generous. most islanders think of woods hole as just a bump in the road that you pass through on the way to and from the boat. but it is a proud little village with a rich history, just as the island is. smug islanders may say, “well, they shouldn’t have chosen to live there” yet i believe many of the people who live along woods hole road live in houses that have been in the family for many years. i liken it to chilmark (i don’t know why) where they have family houses that have been passed down and are now occupied by grown children, grandchildren, etc. so even though they chose to live there, they aren’t newbies who decided to put up a mansion on woods hole road and then realized it was noisy. many are simply invested in their homes. of course, we know there are quite a few little inns along the road as well, which i’m sure we are sometimes glad they are there

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when we get “stuck on the other side”. so here is their problem, as i understand it. the huge freight trucks that barrell down the road in the wee hours of the morning are breaking down the curves and hill leading to the steamship. also sometimes when they arrive early and aren’t allowed down into the lot, they will park along the side of the road or even side of driveways when homeowners and hotel guests are trying to sleep. i imagine if one lived in vineyard haven or oak bluffs on the ONLY exit road from the steamship and every morning you had to wake to that noise, it would be very disturbing. maybe a compromise can be made but it bothers me when some island people just want to brush this issue aside and not work with it. that’s my 2 cents.

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6. BigT June 12, 2020 at 10:49 pm

I feel bad for the people that have to deal with this. I completely understand the need for getting supplies to the island and I don’t know that there is a good solution but some common ground needs to be found somehow. It’s not fair to just keep blowing these folks off. We put a man on the moon there must be a way to make this work better for everyone.

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7. Pekinfinearts June 13, 2020 at 12:53 am

Increased freight from New Bedford seems the obvious solution. What’s the problem with diverting some to New Bedford, a truly commercial port?

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8. aquinnah June 13, 2020 at 12:36 pm

Great points, oceanna & BigT. I do hope there’s some middle ground to be found. If not, I can understand why the needs of MV have to be prioritized, but we shouldn’t fault those in Woods Hole for voicing frustration. I’m guessing any of us would feel the same in their shoes. Islanders (me included) have complained about far less. Imagine if any of these residents have dogs. ϊ Mine would turn into Looney Tunes if they had to hear trucks outside the driveway that early.

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9. SallyGeorge June 13, 2020 at 10:20 pm

Eliminating the early boats will make this more expensive for islanders and increase pollution for the people of Woods Hole. When trucks run slow, they run dirty and expensive. It is ideal to have them running at off hours throughout the week rather than force them to sit in high season traffic down the docks.

It seems like anyone with any grasp of these realities left the conversation long ago.

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o dondondon12 June 14, 2020 at 12:00 pm Sally—There are financial trade offs– just because it might cost another 2 cents to get a t shirt here does not mean the people of woods hole have to suffer. there are more considerations than just the Vineyard people and their pocketbooks. Why would trucks “run slow”(er) later in the day ? And PLEASE, if you are concerned about the air pollution in Woods hole, please ask the steamship parking employees to tell people to turn off their cars when waiting for the boat.

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ƒ SallyGeorge June 14, 2020 at 2:29 pm The trucks run slower later in the day because there is more traffic. Carriers operate on paper thin margins as it is. Making their work any less profitable will only incentivize them to abandon the route entirely.

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10. ajay June 13, 2020 at 10:44 pm

The way to fix the Woods Hole problem is to move the whole.operation to New Bedford. New Bedford is a true commercial port, not some sleepy little out of the way Cape Cod town, they like trucks 7/24. The SSA is a true commercial operation, it has no place in a sleepy little research based village.

The fun part will be watching the Woods Hole merchants scream and yell. I am going to guess that over half of their annual gross income comes from Vineyard traffic.

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o viewfromtheregion June 14, 2020 at 10:42 am

Fact check: Only 3-4 Woods Hole businesses adjacent to the Steamship Authority terminal in reality benefit from the Steamship Authority. Pie in the Sky, Quicks Hole, Woods Hole Inn, one or two of the ice cream shops, and that’s about it. Very few Vineyard travelers venture to merchants past the Eel Pond Bridge. If we’re talking about truck drivers only, Pie in

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the Sky is the only merchant they might visit and they don’t have time for it. Pie has more than enough local business, thank you. The vast majority of Vineyard travelers simply don’t leave an extra cent in Woods Hole or Falmouth, except perhaps at the filling station. It’s very hard to quantify what the Steamship Authority brings to Falmouth at all except for congestion and embarkation fees, for which Falmouth’s own budget isn’t desperate. The Steamship Authority pays no taxes to the town, nor has it ever been generous enough to offer even a small PILOT contribution. (Watch the SSA at the end of the year as it metes out its assessments to port towns due to SSA operating losses this year and 5-10 years of embarkation fees to Falmouth will be gone in one fell swoop).

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o SallyGeorge June 14, 2020 at 2:31 pm

This has been raised from time to time, but increasingly, it’s a fantastic idea. Is any current talk of this limited to freight only or the whole operation?

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11. BigT June 13, 2020 at 11:01 pm

I’m just wondering if the use of Jake Brakes is prohibited along this route? If not that would be a good place to start on reducing the noise. Just a thought

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o ajay June 14, 2020 at 11:17 am

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The problem with the use of Jake Brakes is that they do not allow the service brakes to get hot enough for them to fail.

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12. lisa22 June 14, 2020 at 12:47 pm

I feel so bad for wh residents putting up with this. it’s like having DOPES for neighbors it saps your peace

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162 August 2020 Port Council Meeting Bourne, Falmouth, and other communities in southeastern Massachusetts?

Our information is that the Task Force has not yet been formed.

The Steamship Authority in 2018 increased its schedule from Woods Hole to three more round-trip freight runs a day to Martha’s Vineyard in summer. Fifty-six one-way SSA boat trips are proposed to be scheduled each day between Woods Hole and the Vineyard in summer 2021.

We find it unacceptable on the part of the Steamship Authority that it is proposing a 5:30AM freight schedule from Woods Hole terminal for 2021 before the Long-Range Vineyard Transportation Task Force has begun to function.

We request that the Steamship Authority postpone approval of a 5:30AM freight schedule from Woods Hole terminal (as in the past, we object to the SSA-related large trucks traveling to the 5:30AM ferry that wake up Falmouth residents beginning at 4:45AM and earlier; we do not object to cars on that ferry) until a future date when the Long-Range Vineyard Transportation Task Force is functioning as the Steamship Authority promised in its Report eight months ago.

Sincerely,

1. John T. Vose

468 Woods Hole Road, Woods Hole, MA

I am opposed to the constant increase in vehicular traffic to the Vineyard particularly the very early boat for trucks. The new dock should have been built in New Bedford which can be accessed by a 4 lane highway and not a narrow 2 lane road through a residential neighborhood.

2. Jane Vose

PO Box 489, Woods Hole, MA 02543

Your growth is untenable. Seriously consider New Bedford.

3. Georgianne Dunn

34 Ransom Rd

2 163 August 2020 Port Council Meeting 4. Margaret S Dimmock

330 Woods Hole Rd Falmouth

5. Barbara Christopher

254 Woods Hole Road, Falmouth, MA 02540

Every element of the freight traffic on Woods Hole Road negatively impacts us: the early morning heavy, noisy traffic, the speed of the trucks, the impact on the road itself where every hump, hole and crack is accentuated by the heavy trucks.

6. Mary Jo Mahan

3 Kettle Hole Rd

7. Brian Mahan

3 Kettle Hole Rd

8. Barbara Zeidan

9 Huettner Rd

The increased Steamship Authority traffic and the increased buses that consistently exceed the speed limit makes it so dangerous when walking on Woods Hole Road to get to Church Street or into Woods Hole. The buses drive so fast that the wind from the bus feels like it will knock you over. So frustrating and scary! No regard for pedestrian safety.

9. Dr. John Gore

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30 Woods Hole Road

It's not just the number of trucks - it's the noise, speed and danger that matter. It is essential, whatever the schedule, to institute traffic calming and penalize truckers who do not mitigate noise level and speed.

10. Ron April

448 Woods Hole Rd

11. CARISSA APRIL

448 Woods Hole Rd

12. Richard Hugus

312 Woods Hole Rd.

13. Mary R Thompson

14. Robert Bennett

312 Woods Hole Rd.

15. Diane Buhl

35 Carey Lane

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16. Mark Polebaum

35 Carey Lane

17. Martha Bennett

503 Sippewissett Rd Falmouth

18. Andrea Anderson

471 Sippewissett Road

------Forwarded message ------From: Nathaniel Trumbull < Date: Fri, May 29, 2020 at 7:35 PM Subject: Submission of petition from 58 Falmouth residents requesting a public hearing about SSA 2021 schedules To: Robert Davis , Terence Kenneally ,

Dear Mr. Davis,

Please find attached a petition from 58 Falmouth residents requesting that the Steamship Authority hold a public hearing about SSA proposed schedules for 2021.

All petitioners are being blind copied in this email.

Thank you for confirming receipt of our petition.

Sincerely,

Nat Trumbull 11 Church St., Woods Hole, MA 02543

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--

Petition to Steamship Authority for Public Hearing on Proposed Schedules in 2021

May 29, 2020

Dear Steamship Authority General Manager Robert Davis,

Following submission of 50 signatures from Falmouth residents and a public hearing on August 26, 2019, the Steamship Authority Board voted to approve the "Report Issued under Section 15A of the Authority’s Enabling Act on the Proposed 2020 Summer Operating Schedules" in October 2019. (1) The Report stated that a Long- Range Vineyard Transportation Task Force (2) would begin to function as a response to the Steamship Authority's decision on the public hearing.

The Task Force was supposed to address a wide range of transportation impacts (3) raised by residents during the August 26, 2019 public hearing.

Has the Long-Range Vineyard Transportation Task Force begun to meet? Have Martha’s Vineyard residents been appointed to serve as members of the Task Force? Have any recent steps been undertaken to approach New Bedford or other mainland ports about the possibility of serving as a supplemental port for non-time- sensitive freight (for example, bulk construction materials, bulk landscaping materials, construction and demolition waste, single stream recyclables) for shipping to and from Martha’s Vineyard? Has the Task Force considered how those steps could begin to create a regional transportation plan to help mitigate impacts in Bourne, Falmouth, and other communities in southeastern Massachusetts?

Our information is that the Task Force has not yet been formed.

We find it unacceptable on the part of the Steamship Authority that it is proposing a 5:30AM freight schedule from Woods Hole terminal for 2021 before the Long-Range Vineyard Transportation Task Force has begun to function. We request that the Steamship Authority postpone approval of a 5:30AM freight schedule from Woods Hole terminal (as in the past, we object to the SSA-related large trucks traveling to the 5:30AM ferry that wake up Falmouth residents beginning at 4:45AM and earlier; we do not object to cars on that ferry) until a future date when the Long-Range Vineyard Transportation Task Force is functioning as the Steamship Authority promised in its Report eight months ago.

We request that you conduct a public hearing, to be held within 14 days of receipt of this petition, on Steamship Authority proposed operating schedules for 2021, per Section 15A of the SSA Enabling Act.

Sincerely,

1 Arden Edwards 353 Woods Hole Road, Falmouth, MA 02540 2 Nina Levinthal c/o Flora Schiminovich, 7 Hilton Ave., Woods Hole 3 Laura Hastings 18 Spencer Baird Road, Woods Hole, MA 4 Jennifer Hastings 18 Spencer Baird Road, Woods Hole, MA 02543

6 167 August 2020 Port Council Meeting 5 Jan Elliott PO Box 598 Woods Hole MA 02543 6 Ann Newbury PO Box 724, Woods Hole MA 02543 7 John E. Dowling 106 Ransom Road, Falmouth 8 Patricia Tucker 1 Buzzards Bay Ave., Woods Hole 9 Camilla King 16 Butler St, Woods Hole 10 Peter Shile 25 Gardiner Road, Woods Hole, MA 03543 11 Anne D. Halpin 319 Woods Hole Rd. Falmouth 02540 12 Richard Lovering 338 Woods Hole Rd, Falmouth MA 02540 13 Stephen Gellis 24 Spencer Baird Rd Woods Hole 14 Elizabeth Farnham 101 Stoutenburgh Lane 15 David Hastings 18 Spencer Baird Rd. Woods Hole MA 16 Judith G. Stetson 261 Quissett Ave., Woods Hole, MA 02543 17 Jane E. Atwood 41 High Street, Woods Hole MA 02543 18 David Tucker 1 Buzzards Bay Avenue, Woods Hole, MA 02543 19 Bonnie Simon 144 Gardiner Rd., Woods Hole 20 Paul Lobo 114 Ships Watch Falmouth 21 Penelope McGill 8 Quissett Harbor Rd. Falmouth 22 Joseph Klimek 8 Quissett Harbor Rd. Falmouth 23 Hannah Coppola 40 Eric Clauson Lane, Falmouth, MA 24 Judith L. Day 55 Larches Way, PO Box 717, Woods Hole, MA 02543 25 Kate N. Day 5 Bowditch Road, Woods Hole MA 26 Russell G Murphy 5 Bowditch Road, Woods Hole 02543 27 Philip L Richardson 146 Church Street, Woods Hole, MA 28 Trina 19 Standpipe Hill Rd, Woods Hole, MA 02543 29 Bronwen Polloni 24 Sumner Street, Woods Hole 30 Walt Schanbacher 14 Cowdry Road, Woods Hole, MA 02543 31 Gerald J Fine 21 Church Street, Woods Hole 32 Catherine Bumpus 45 Millfield St Woods Hole, MA 02543 33 Nan Schanbacher 14 Cowdry Rd, Woods Hole, MA 02543 34 James Mavor 19 Standpipe Hill Rd, Woods Hole, MA 35 John Bruce 14 School St., Woods Hole 36 Jonathan Goldman 12 Sidney Street, Woods Hole 37 Nicole Goldman 12 Sidney Street, Woods Hole, MA 02543 38 Wendy Nies 39 Eugenie Kuffler 49 Gosnold Road, Woods Hole 02543, MA 40 Rebecca Truman 3 Little Harbor Road, Woods Hole 41 Julia Leshin 59 Church Street, Woods Hole MA 02543 42 Barbara Jones 38 Locust St, Falmouth, MA 02540 43 Suzanne Kuffler 49 Gosnold Road, Woods Hole 44 Richard Balkin 3 Oyster Pond Rd 45 Valerie Walbek 32 Buzzards Bay Avenue 46 Susanna McKenna 90 Woods Hole Rd. 47 Gregory Wozena 296 Woods Hole Rd., Falmouth, MA 48 Shirley Wozena 296 Woods Hole Rd, Falmouth, MA 02540 49 Nan Logan 482 Woods Hole Road 50 Alberto Collasius jr 11 Juniper Point Rd 51 Damien Kuffler 49 Gosnold Rd., Woods Hole, MA 02543 52 Diana Roth 42 Glendon Road, Woods Hole 53 Margaret McCormick 44 Quissett Ave, Woods Hole MA 02543 54 Kristin Alexander 101 Cumloden Drive, Falmouth, MA 02543 55 Andrew R Solow 44 Quissett Ave, Woods Hole MA 02543

7 168 August 2020 Port Council Meeting 56 Elena Trumbull 11 Church St., Woods Hole MA 02543 57 Nat Trumbull 11 Church St., Woods Hole MA 02543 58 John Woodwell 64 Church St., Woods Hole MA 02543

(1) See https://www.steamshipauthority.com/writable/versioned_downloadable_forms/path/report_- proposed 2020 summer operating schedules - final.pdf

(2) The purpose of the Long-Range Vineyard Transportation Task Force ("Report," pg. 15) is "to identify reasonable steps that can be taken to address issues and concerns about freight and other traffic in each of those communities [Falmouth, Oak Bluffs, Tisbury, and New Bedford]."

(3) For photographs of those and other impacts, see www.woodshole.net

8 169 August 2020 Port Council Meeting

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Day 1.

June 17 (Wed.)

Arrival time at Crane St. bridge

4:55AM Truck with stones (also circled down Water St. first)

Video of stones truck turning onto Water St. WH Village (see https://youtu.be/e0P-xja6B38) Video of stones truck arrival at WH Terminal (see https://youtu.be/PbIvWkZAuzs)

5:06AM Cape Coastal, appears to be carrying landscaping materials (https://youtu.be/9DOR8bXZlCg and 2:00 timestamp)

2

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Day 2.

June 18 (Thurs.)

Arrival time at Crane St. bridge

4:55AM UPS cab 4:59AM US Foods (see https://youtu.be/BAPgHLUpZwI for this and following trucks) 4:59AM Appliance truck 5:00AM Crane Appliance 5:01AM Crane Appliance 5:02AM Gordon Food Service

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Day 3.

June 19 (Fri.)

Arrival time at Crane St. bridge

4:57AM Service Milton truck (see https://youtu.be/wbrAje3sABk for this at 4:00 timestamp and other trucks below) 4:58AM Sid Wainer and Son 4:58AM Dole and Bailey Food Service 5:06AM Crane Appliance (goes down Water St., will circle back at 5:08AM) 5:07AM Sysco (dangerously stops at WH Road, Crane St. intersection for 2 min.) 5:07AM Sysco (dangerously stops at WH Road, Crane St. intersection for 2 min.) 5:09AM Silvia Nursery (dangerously cuts ahead of first stopped Sysco truck at intersection) 5:09AM US. Foods (dangerously cuts ahead of first stopped Sysco truck at intersection)

4

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Day 4.

June 20 (Sat.)

Arrival time at Crane St. bridge

4:53AM black plastic delivery (goes to Water/Railroad, see at 5:01AM in video) 4:59AM Sysco (see https://youtu.be/YGJnWJNYGuE at 6:00 timestamp for this and trucks below) 5:00AM horses delivery (goes to Water/Railroad, see return to Crane St. bridge at 5:05AM) 5:01AM black plastic delivery on truck 5:03AM Sid Wainer and Son

5

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Day 5.

June 21 (Sunday)

(see https://youtu.be/mtqCpJPbQ-Y at Church St. intersection)

6

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Day 6.

June 22

4:52AM Dennison Lubricants truck (leaves WH Terminal to go back in Falmouth direction (see https://youtu.be/egiIAN7g2xM) 5:00AM Ritz cracker truck (see https://youtu.be/9LTK 3Q20go at 0:30 timestamp for this and other trucks below) 5:07AM Dennison Lubricants truck is back from Falmouth direction 5:08AM Gordon Food Service 5:08AM US Foods 5:08AM Service truck (Milton) 5:09AM Sysco

7

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Day 7.

June 23 (Tues.)

4:58AM Dole and Bailey Food Hub (see https://youtu.be/kg5OmDBlaqY and 05:49 min. time stamp) 5:08AM F.B. Webb Company (Daikin AC) 5:08AM Cape Cod Commercial Linen

8

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Day 8.

June 24 (Wed.)

4:43AM Black truck observed parked at Sands of Time (license CT AU45364), see again at 4:58 below

(see https://youtu.be/reGXAYi8w9M for this and other trucks below) 4:59AM Black truck above 5:07AM White truck with trailer 5:09AM Sid Wainer and Son 5:09AM Crane Appliance

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Day 9.

June 25 (Thurs.)

4:55AM F.W. Webb truck observed parked at Sands of Time, see again at 5:09AM below

5:06AM Crane Appliance (see https://youtu.be/mcx0LSxev5M at 14 min. timestamp for this truck and other trucks below) 5:08AM Crane Appliance 5:09AM F.W. Webb (appliances) 5:09AM Gordon Food

10

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Day 10.

June 26 (Fri.) direction (see video at https://youtu.be/7XEkts3UH4g)

4:58AM White straight truck, unmarked (see https://youtu.be/29r7qWM5mw0 at 6:35 min. timestamp for this truck and other trucks below) rniture

5:09AM HT Berry 5:09AM Sysco

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June 17, 2020, Wednesday

1. Truck with stones* 2. Sysco 3. Brown tank truck (unclear what liquid is, but not food)* 4. Sysco 5. Sysco 6. Ritz cracker truck 7. Marvin (house materials)* 8. Truck (countertops)* 9. Unidentified white truck (food is unlikely, no refrigeration unit)* 10. Utility truck* 11. Red dump truck (definitely not food)* 12. Yellow truck carrying lumber* 13. Truck with covering on trailer (likely landscaping materials)* 14. Sid Wainer 15. Crane Appliance*

June 18

1. M.A.P. Insulation Co.* 2. UPS large cab (no trailer)* 3. Crane Appliance* 4. Crane Appliance* 5. U.S. Foods 6. F.W. Webb (appliances)* 7. Gordon Food Service 8. Gordon Food Service 9. Sid Wainer and Son 10. Truck with black garbage-like containers on back, labeled Trident* 11. Mid-Cape (says "Views" on truck, possibly windows)*

June 19

1. Sid Wainer and Son 2. Dole and Bailey Food Hub 3. Crane Appliance* 4. Sylvain Nursery* 5. US. Foods 6. Sysco 7. Sysco 8. Crane Appliance* 9. Gordon Food Service 10. Gordon Food Service 11. US. Foods 12. US. Foods

2 183 August 2020 Port Council Meeting 13. Sid Wainer and Son 14. Sysco 15. Service truck*

June 20

1. Sysco 2. Sid Wainer 3. Crane Appliance* 4. Crane Appliance* 5. Crane Appliance* 6. Boat on trailer* 7. Truck carrying some black stackable plastic items (100% not food)* 8. Horse trailer with horses*

June 21, Sunday

1. Landscaping tractor*

June 22

1. Dennison Lubricants* 2. US Foods 3. Milton Service truck* 5. Ritz cracker truck 6. Gordon Food Service 7. Gordon Food Service 8. Sysco 9. Sysco 10. Sid Wainer and Son 11. Sysco 12. White truck unmarked (unlikely food, no refrigeration unit)* 13. Empty long truck*

June 23

1. Dole and Bailey Food Hub 2. US. Foods 3. US. Foods 4. Gordon Food Service 5. Gordon Food Service 6. Black covered truck with garbage-like container (definitely not food)* 7. Truck with empty truck bed*

3 184 August 2020 Port Council Meeting 8. Daikin (appliances)* 9. Cape Cod Commercial Linen* 10. Sid Wainer and Son 11. Landscaping equipment/large tractor carried on truck*

June 24

1. Spacefitters, black truck* 2. Sid Wainer and Son 3. Baynes Electric Supply* 4. Truck with covered goods (looks like lumber)* 5. Crane Appliances* 6. Sysco 7. Sysco 8. Ron's Trucking Corp. (looks like moving company, not food)* 9. Ritz cracker truck 10. Cape Cod Linen* 11. Sysco 12. Crane Appliance* 13. Heavy red construction truck loaded with sand*

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Results of 8-day monitoring of truck inventory on 5:30AM freight ferry, WH to VH, June 17 to June 24, 2020

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Monitoring of truck inventory on 5:30AM freight ferry, Woods Hole to Vineyard Haven, June 17 to June 24, 2020

87 trucks were carried on the 5:30AM freight ferry over the 8-day period of June 17 to June 24, 2020

44 trucks were carrying no food at all, and included such non-time- sensitive items as stones, landscaping materials and equipment, and lumber

*Trucks on 5:30AM ferry without food

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Day 1.

June 17, 2020, Wednesday

1. Truck with stones* 2. Sysco 3. Brown tank truck (unclear what liquid is, but not food)* 4. Sysco 5. Sysco 6. Ritz cracker truck 7. Marvin (house materials)* 8. Truck (countertops)* 9. Unidentified white truck (food is unlikely, no refrigeration unit)* 10. Utility truck* 11. Red dump truck (definitely not food)* 12. Yellow truck carrying lumber* 13. Truck with covering on trailer (likely landscaping materials)* 14. Sid Wainer 15. Crane Appliance*

3

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Day 2.

June 18

1. M.A.P. Insulation Co.* 2. UPS large cab (no trailer)* 3. Crane Appliance* 4. Crane Appliance* 5. U.S. Foods 6. F.W. Webb (appliances)* 7. Gordon Food Service 8. Gordon Food Service 9. Sid Wainer and Son 10. Truck with black garbage-like containers on back, labeled Trident* 11. Mid-

4

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Day 3.

June 19

1. Sid Wainer and Son 2. Dole and Bailey Food Hub 3. Crane Appliance* 4. Sylvain Nursery* 5. US. Foods 6. Sysco 7. Sysco 8. Crane Appliance* 9. Gordon Food Service 10. Gordon Food Service 11. US. Foods 12. US. Foods 13. Sid Wainer and Son 14. Sysco 15. Service truck*

5

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Day 4.

June 20

1. Sysco 2. Sid Wainer 3. Crane Appliance* 4. Crane Appliance* 5. Crane Appliance* 6. Boat on trailer* 7. Truck carrying some black stackable plastic items (100% not food)* 8. Horse trailer with horses*

6

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Day 5.

June 21, Sunday

1. Landscaping tractor*

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Day 6.

June 22

1. Dennison Lubricants* 2. US Foods 3. Milton Service truck* 5. Ritz cracker truck 6. Gordon Food Service 7. Gordon Food Service 8. Sysco 9. Sysco 10. Sid Wainer and Son 11 Sysco 12. White truck unmarked (unlikely food, no refrigeration unit)* 13. Empty long truck*

8

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Day 7.

June 23

1. Dole and Bailey Food Hub 2. US. Foods 3. US. Foods 4. Gordon Food Service 5. Gordon Food Service 6. Black covered truck with garbage-like container (definitely not food)* 7. Truck with empty truck bed* 8. Daikin (appliances)* 9. Cape Cod Commercial Linen* 10. Sid Wainer and Son 11. Landscaping equipment/large tractor carried on truck*

9

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Day 8.

June 24

1. Spacefitters, black truck* 2. Sid Wainer and Son 3. Baynes Electric Supply* 4. Truck with covered goods (looks like lumber)* 5. Crane Appliances* 6. Sysco 7. Sysco

9. Ritz cracker truck 10. Cape Cod Linen* 11. Sysco 12. Crane Appliance* 13. Heavy red construction truck loaded with sand*

10

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Steve Sayers

From: David Tucker < > Sent: Saturday, June 13, 2020 5:25 PM To: schedules Cc: Nathaniel Trumbull Subject: truck traffic

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

We Tuckers trace our Woods Hole residency to the 1950s and to our home ownership in Woods Hole to 2010. We want to put in writing that we are strongly opposed to the proposed significant increase by the Authority of truck traffic on Woods Hole Road to and from the ferry terminal downtown. The village should not be further burdened by all of the noise that the truck traffic creates. Please respect our wishes to keep the village and Falmouth a place of quiet enjoyment.

Dave and Pat Tucker 1 Buzzards Bay Avenue Woods Hole, MA 02543

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Steve Sayers

From: John Vose > Sent: Wednesday, June 17, 2020 8:01 AM To: schedules Subject: traffic volume Woods Hole Road

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

I am opposed to the continuing increase in vehicular traffic to the Vineyard, particularly early boat for trucks.

Sincerely, John T. Vose

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Steve Sayers

From: Barbara Zeidan < > Sent: Monday, June 15, 2020 10:37 AM To: schedules Subject: Steamship authority bus drivers consistently speeding on Woodshole rd.

WARNING: This email originated from outside of The Steamship Authority. Please use CAUTION when clicking links, opening attachments, or providing information unless you recognize the sender and know the content is safe.

Hello, The steamship Authority bus drivers exceed the speed limit making it extremely Dangerous for Pedestrians walking on the sidewalk on near Glendon , Standpipe and Church street. I tried to signal for a bus Driver to slow down last summer ad they actually gave my the finger.

Sent from my iPhone

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STAFF SUMMARY Date: July 17, 2020 File# GM-746

TO: FOR: FROM:

General Dept.: General Manager Vote Manager Author: Robert B. Davis

Board Subject: Proposed Feasibility Study for x x Information Members Solar Panels at Thomas B. Landers Parking Lot

PURPOSE:

To advise the Members on the initiation of a feasibility study for a solar project at the Thomas B. Landers Parking Lot in Falmouth.

BACKGROUND:

Since the completion of the Thomas B. Landers Parking Facility in June 2015, various groups have periodically inquired into the availability of the property for solar energy generation. Following the most recent inquiry, this past fall, staff investigated how best to proceed with seeking proposals.

Procurement Officer, Margaret Nickerson, reviewed Requests for Proposals (RFP) from other public agencies and municipalities for solar projects within the Commonwealth. During this review it was noted that the Massachusetts Bay Transportation Authority (MBTA) had recently completed the implementation of solar carports at its surface parking lots and garages. In early March 2020, a meeting was arranged with Jones Lang LaSalle Americas, Inc. (JLL), which had managed the project on behalf of the MBTA. The attached proposal was subsequently submitted by JLL to perform due diligence as to the feasibility of the site for solar development.

The Massachusetts Department of Energy Resources recently unveiled emergency revisions that double the capacity of the state incentive program designed to spur small- and medium-scale solar projects. The Solar Massachusetts Renewable Target Program, known as SMART, ensures that state incentives will be available for solar developers, which may make this project more viable. While under Massachusetts General Law an alternative to the issuance of an RFP for solar projects exists, the staff is proceeding in accordance with the terms and conditions of the Authority’s Procurement Policy. (See attached M.G.L. c. 164 §137)

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RECOMMENDATION:

Presented for informational purposes, no action required in accordance with the terms and conditions of the Authority’s Procurement Policy.

______Robert B. Davis General Manager Attachments

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STEAMSHIP AUTHORITY SOLAR DUE DILIGENCE AT LANDERS PARKING FACILITY

Proposal for Consulting Services

Prepared for: Peggy Nickerson Procurement Officer Woods Hole, Martha’s Vineyard, and Nantucket Steamship Authority 228 Palmer Avenue Falmouth, MA, 02540 Email: [email protected]

Contact: Mike Travaline, Senior Associate Jones Lang LaSalle Americas, Inc. One Post Office Square, Ste. 2600 Boston, MA 02110 Phone: (617) 531-4241 Email: [email protected]

TRADE SECRET/COMPANY PRIVATE – DO NOT DISCLOSE – This proposal includes data that shall not be disclosed outside the Government/Organization and shall not be duplicated, used or disclosed—in whole or in part—for any purpose other than to evaluate this proposal. If, however, a contract is awarded to this offer as a result of—or in connection with—the submission of this data, the Government/Organization shall have the right to duplicate, use or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Government/Organization’s right to use information contained in this data if it is obtained from another source without restriction. The data subject to this restriction is contained within the proposal and each page is marked accordingly.

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Table of Contents

Cover Letter 2 Executive Summary 3 Experience and Qualifications 4 Project Approach 5 Team Structure 9 Team Bios 10

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Ms. Peggy Nickerson Procurement Officer Woods Hole, Martha’s Vineyard, and Nantucket Steamship Authority 228 Palmer Avenue Falmouth, MA, 02540 Email: [email protected]

Re: Steamship Authority Solar Project Advisory Proposal

Ms. Nickerson,

Jones Lang LaSalle Americas, Inc. (JLL) is pleased to submit the following proposal to assist the Woods Hole, Martha’s Vineyard, and Nantucket Steamship Authority (“Steamship Authority”) with Comprehensive Solar Development Plan and Project Delivery Support. JLL is a world-class, globally integrated real estate services firm with a significant presence in the New England area, and throughout the country. Our team consists of professionals with a broad range of relevant technical advisory experience on behalf of transit agencies that is unmatched by other organizations. With a dedicated group that is focused on energy and sustainability services, and in particular the solar energy market, we are intimately familiar with the challenges and opportunities that are presented when considering the development and operation of solar arrays in Massachusetts and the surrounding region. JLL will take a two-pronged approach to a potential solar project at the Landers Parking Facility. First, JLL will perform comprehensive due diligence on the viability of solar at the site, which will include site assessment and engineering considerations, financial analysis and modeling, and market outreach. At the conclusion of our diligence, we will deliver a Business Case Analysis to the Steamship Authority which will confirm the feasibility of solar at the Landers Parking Facility and provide an estimate of the output and value to the Steamship Authority that would be produced. Once solar feasibility is confirmed, the second phase of our approach would focus on transaction execution. This would include the drafting and release of a Request for Proposals, site marketing, bid analysis, lease negotiation, and project construction and energization. In the proposal, we go into detail about how we will execute on everything from due diligence to project completion. We are excited about this opportunity and look forward to hearing back from you.

Sincerely,

Mike Travaline Senior Associate, JLL Public Institutions [email protected] 617-531-4241

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Executive Summary

This proposal to the Woods Hole, Martha’s Vineyard, and Nantucket Steamship Authority (“Steamship Authority”) is an overview and pricing of JLL Public Institutions and the firm’s capability to consult the Authority in regard to potential solar panel installation and development at the Thomas B. Landers Parking Facility located at 22 Technology Park Drive in East Falmouth, Massachusetts.

The Public Institutions group at JLL is comprised of 600+ public sector specialists focused solely on working with clients in and around public agencies and their capital projects. JLL works on a wide range of real estate matters, including feasibility analysis, development advisory, and ground lease structures. Their experience will be of great value to the Steamship Authority team throughout the solicitation and potential implementation of this proposed solar development at the Landers Parking Facility site.

JLL’s vision for the due diligence related to this potential solar development site is similar to previous projects in the renewable energy sector we have completed for likeminded clients.

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Experience and Qualification

JLL has experience supporting numerous public sector clients with their renewable energy projects. This experience is applicable to the support we would provide the Steamship Authority. Since 2014, JLL has been supporting the Army’s Office of Energy Initiatives (OEI) to develop renewable projects in order for the U.S. Army to meet their ambitious sustainability goals.

JLL collaborated and leveraged industry relationships, including utility providers, developers, manufacturers, financiers and associates to develop public-private partnership opportunities for Army energy assets through ground lease transactions, power-purchase agreements, easements and other methods and processes. JLL performed initial due diligence, solicitation development, evaluation support, and transaction support for 10 projects totaling over 350 MW. JLL is currently assisting with developing two existing projects while helping with initial due diligence for two other projects.

JLL has project managed the Massachusetts Bay Transportation Authority’s (MBTA) solar carport project for the past three years. This project will implement 29 solar carports at MBTA surface parking lots and garages and produce approximately 25 megawatts of energy annually. The MBTA will receive approximately $1,500,000 per year in Ground Lease Payments.

Most recently, JLL has supported the Washington Metropolitan Area Transit Authority (WMATA) with a project where WMATA will lease its parking lots and garage rooftops to a solar developer who in turn will pay an annual rent to WMATA. JLL conducted extensive due diligence that included understanding the local Solar Renewable Energy Certificate (SREC) market, holding discussions with several potential developers while also developing a financial model that included all development cost assumptions which allowed JLL to provide WMATA with indicative lease payments. JLL also drafted the RFP that was well received by industry, evaluated proposals, and now is assisting in negotiations with the selected developer.

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Project Approach

JLL will approach this potential development site for the Steamship Authority through three initial due diligence phases. These phases will include Site Assessment and Engineering, Financial Analysis, and Market Outreach. Using data and market sounding gleaned from this process, our team will be able to provide a final recommendation to the Steamship Authority in the form of a proposed Helioscope and Business Case Analysis by which the Authority will be able to make a final decision based on our findings.

Phase I. Site Assessment and Engineering Considerations

1. The JLL team will conduct a thorough review of the existing site conditions to determine site suitability, taking the following metrics into account:

. Parcel size . Slope . Shading and physical obstructions . Surface condition of parking lot 2. JLL will seek to understand the engineering considerations that could affect a potential solar installation at the parking lot site. These considerations include potential interconnection points, interconnection considerations, electrical distribution ability, and the ability for the existing grid infrastructure to handle additional power.

3. Our team will create indicative one-line diagrams that show a potential solar array layout with interconnection points predetermined for the review of the Steamship Authority team.

4. The JLL team will draft an indicative helioscope that indicates the potential array design assumptions and the modeled output of the predetermined solar array layout. This will provide a better idea of what output a solar project on the site could achieve and how much ground rent could be paid to the Steamship Authority.

Phase II. Financial Analysis and Modeling

1. JLL will create a financial model that will determine the potential revenue generation and return on investment to the Steamship Authority.

2. Our team will obtain development cost estimates using a wide range of industry-specific sources located in comparable markets. These estimates will create accurate assumptions for the Steamship Authority to base its eventual cost estimates on as the installation gets underway.

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3. Using similar methodology, JLL will create financing assumptions that will allow the Steamship Authority to accurately create a set of financial guidelines by which these assumptions can adhere to. This will also include the creation of offtake assumptions.

4. The JLL team will create a market-accurate assumption set of current SREC and Massachusetts state and federal solar tax credit guidelines, including a potential forecast of how that market may shift in the coming 12-month period. This exercise will allow the Steamship Authority to best predict how revenue might be affected by any foreseen changes in the solar market and financial landscape during this time.

Phase III. Market Sounding and Outreach

1. The JLL team will reach out to solar developers both locally and nationwide in an attempt to gauge market interest in the potential installation at the Steamship Authority’s parking facility in Falmouth.

2. Through this market outreach, JLL will obtain developer feedback related to the market’s “must-haves” for a potential deal at this location.

3. This process will further include an overview of the existing regulatory environment from the developer side, which will create added clarity to how the Steamship Authority may want to proceed with a potential solicitation for this installation.

Final Product. Business Case Analysis

JLL will incorporate the findings of these three phases of due diligence to create a Business Case Analysis report, ultimately setting forth a potential path to implementation for the Steamship Authority that will encompass the financial, environmental, and regulatory aspects of a potential solar development at the Landers Parking Facility site. The Steamship Authority will be able to use this analysis to make an ultimate decision for the short- and long-term viability of this potential project.

Timeline.

The Business Case Analysis will be completed within three months of engagement between JLL and the Steamship Authority.

Cost.

The cost of the initial phase of work will be $50,000 which will be payable upon submission of final Business Case Analysis.

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Transaction Execution Approach.

JLL’s approach involves the transaction phase during which we will develop detailed requirements for the project, document the relationships among the parties involved in the transaction, define performance objectives and risk allocation strategies (including key performance indicators and milestones), and structure the transaction such that it attracts strong developer interest and competition. The transaction execution phase involves a number of key activities, including: • Developing a detailed procurement strategy and timeline; • Identifying proposal evaluation and selection criteria; • Populating a data room with materials needed for developer due diligence; • Drafting RFP documents; • Organizing and facilitating an Industry Day • Managing developer interactions and procurement-related inquiries; • Assisting in the source selection process, including review and evaluation of up to 10 proposals; • Developing follow-up questions for up to four respondents determined to be in the competitive range (two-step process potentially to include best and final offers); • Quantifying results of the proposal evaluations process and updating JLL’s financial model and business case analysis; • Conducting due diligence on developers; and • Summarizing results and preparing recommendation memo. The phase will result in a recommendation of a developer and transaction structure. This recommendation and the process undertaken to arrive at this point will be summarized in a memorandum which is intended to support the Steamship Authority designation decision. As part of this effort, JLL’s technical personnel will assist with drafting of the RFP, review proposals, and participate on site visits. This process will take 3 to 4 months depending on procurement requirements and market interest. Transaction Negotiation.

Following the deal execution step, JLL will support the transaction negotiation and closing process. This may involve the negotiation of a standard form of lease agreement (with attachments for requirements specific to the type of project). Having advised on multiple solar transactions ranging in size from 500 kW to 500 MW, JLL has worked hand-in-hand with transaction counsel during negotiations. For this transaction, we will be keenly focused on the developer obligations for the site’s development and will seek assurances of developer commitment to its proposed schedule. During this period, the property is tied up and the developer will need to meet specific milestones related to interconnection, off-take and financing in order to ensure the project proceeds as scheduled. Accordingly, JLL will support the Steamship Authority with negotiation of contract performance security, contractual remedies and termination provisions. JLL expects that negotiation of the lease documentation will take 2 to 3 months, depending on availability of the developer and Steamship Authority personnel.

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During the negotiation of legal and commercial issues, JLL will be focused on achieving an outcome that meets the Steamship Authority’s objectives while supporting a reasonable allocation of risk among the parties that enables the project to secure financing under acceptable terms. The conclusion of this phase will be the commercial closing of the transaction. Our team will work closely with the Steamship Authority including assisting in finalizing agreements, managing the closing checklist, and addressing issues that will be required of the financing process. Implementation and Monitoring.

While the commercial closing is often considered the end of a process, it is JLL’s experience that this really represents the beginning of a long-term relationship that requires ongoing attention and diligence by all parties. JLL recognizes that this phase involves significant effort by both parties to ensure long-term success. Typically, JLL supports the implementation process through the development and administration of post-award monitoring programs, assistance in contract amendments and resolution of disputes, and in key performance indicator measurements and verification. For this project in particular, the commercial close will involve lease execution at which point the selected developer will need to invest in project development activities that lead to financing and construction. Accordingly, JLL will monitor activities related to each site to ensure key activities are underway to ensure financial closing will occur on time. Additionally, JLL will provide engineering reviews of design documentation, review developer documentation related to milestone completion, will conduct on-site reviews and will monitor the acceptance testing process. To the extent issues arise, JLL will evaluate the situation, assess implications under the project agreements and present recommendations to the Steamship Authority regarding courses of action. Our approach to these activities involves proactively monitoring to avoid surprising situations and remedy issues efficiently and effectively. JLL assumes that the implementation and monitoring process will last approximately 10 months and the level of effort will intensify on and around key developer milestones. Timeline. JLL estimates that the length of time from RFP drafting to project completion will be 15 to 17 months.

Proposed Fees.

JLL will negotiate a fee structure with the Steamship Authority prior to initiation of the Transaction Execution. This fee may be a fixed fee, or a commission fee based on the value of the Ground Lease payments that will be made to the Steamship Authority by a developer. The fee will cover JLL’s work from the drafting of the RFP to the completion of the project.

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Team Structure

Project Team Lead

Mike Travaline Senior Associate , Public Institutions

JLL Client Service Delivery Leads

Transaction Advisor Energy Market Expert

Brian Oakley Bryan Thomas Dan Edwards Senior Vice President, Vice President, Public Senior Analyst, Public Institutions Institutions Public Institutions

Staff Biographies are located on the proceeding page.

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Mike Travaline

Senior Associate, Public Institutions

Current Responsibilities Mike Travaline is a Senior Associate at JLL on the Public Institutions Team based out of Boston, Massachusetts. Mr. Travaline delivers a diverse array of services including feasibility and demand analysis, zoning analysis, public-private partnership (P3) advisory, brokerage and disposition services, project management, and public procurement expertise. Mr. Travaline works as a local account lead for transportation agencies, public agencies, municipalities and higher education groups to deliver on their real estate needs. Experience Mr. Travaline is the account lead for JLL’s work with the Massachusetts Bay Transportation Authority (MBTA), Massachusetts Department of Transportation (MassDOT), and Hull Redevelopment Authority. Mr. Travaline’s responsibilities have included strategic advisory, identifying underutilized assets throughout a Representative Clients client’s portfolio, procuring development deals, leading the brokerage process for all client dispositions, and project management. Mr. Travaline has closed or • Massachusetts Bay Transportation put under agreement transactions valued at over $50 million for these clients Authority while prioritizing their operational needs. • Massachusetts Department of As part of his work on the MBTA account, Mr. Travaline is the project manager for Transportation the Solar Carport Project which is a project that will install solar carports at 29 • MassDevelopment MBTA parking lots and garages. • Hull Redevelopment Authority • Boston Planning and Mr. Travaline also serves as the exclusive broker for all of MassDevelopment’s Development Agency land offerings in Devens, Massachusetts. As part of this effort, Mr. Travaline has • identified end-users and tenants which would contribute to the economic MassDevelopment growth of the region by providing jobs, tax revenue, and employee training • General Services Administration opportunities. • University System of New Hampshire In addition to his experience listed above, Mr. Travaline provides real estate • University of Massachusetts consulting services and P3 advisory services to clients that include the Boston Planning and Development Agency, the General Services Administration, the Building Authority University System of New Hampshire, and the University of Massachusetts • University of Connecticut Building Authority.

Prior to joining JLL in 2015, Mr. Travaline worked as a residential investment Achievements sales and leasing agent in Boston, Massachusetts. • 7+ years of real estate experience Education and Affiliations Mr. Travaline earned a degree in History from the College of the Holy Cross in Worcester, Massachusetts. Mr. Travaline is currently pursuing a Master’s Degree in Real Estate from Georgetown University.

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Brian Oakley

Executive Vice President, Public Institutions

Current Responsibilities

Mr. Oakley is an Executive Vice President in JLL’s Public Institutions group. He serves clients in government across the U.S., advising on all aspects of large-scale energy and transportation public-private partnership (P3) transactions. Areas of expertise include P3 program implementation and administration, project development, public finance and nonrecourse project finance, financial modeling, and transaction negotiation.

Experience Mr. Oakley has over 28 years of experience in providing financial advisory services Representative P3 Projects to public and private infrastructure clients. A registered Municipal Advisor, he has • Lead capital markets advisor to Howard advised on a wide variety of P3 transactions, ranging from energy services to University in steam plant modernization recreational facilities and has represented public sponsors, private developers and P3 project. transaction lenders. For the past 20 years, Mr. Oakley has advised USDOT’s TIFIA loan program and has advised on over a dozen transportation P3s involving a • Lead capital markets advisor to National myriad of alternative delivery methods and financing structures. Mr. Oakley also Biodefense Campus Central Utilities advises sponsors and lenders on energy generation and efficiency projects utilizing Plant Project restructuring. alternative finance structures. • Lead capital markets advisor on transportation P3 advisory engagements Mr. Oakley is recognized as an expert in assisting Federal agencies, local with the U.S. DOT. authorities, municipalities and corporations with project financing, credit analyses and risk assessment. Over the course of his career, Mr. Oakley has advised on over • 10 years of experience advising the US $25 billion in infrastructure and energy transactions and possesses in depth Department of Energy clean energy knowledge of the credit criteria utilized by rating agencies and lenders for the P3 financing program. non-recourse project finance structures. Mr. Oakley has also served as an advisor • Senior financial advisor to customer on to bond trustees and lenders in assessing options for troubled projects in recent 10MWAC solar array paired with bankruptcy. battery storage procured under a long- Before joining JLL via acquisition in 2018, Mr. Oakley was a Principal at Scully term P3. Capital Services, Inc. for over 23 years where he led the firm’s P3 advisory practice. Achievements Prior to that, Mr. Oakley worked at Ernst & Young where he performed utility tariff • Registered Municipal Advisor with SEC studies and supported P3 transactions. and the MSRB. Education and Affiliations • 28+ years of experience in infrastructure Mr. Oakley received a Master of Business Administration and a Master of finance (specializing in energy, Environmental Management with a Specialization in Resource Economics and transportation, water and wastewater). Policy from the Duke University. He received his Bachelor of Arts in Economics from • Total capital investment portfolio over Trinity College. Mr. Oakley is registered as a Municipal Advisor with SEC and the $25 billion. MSRB. He is also registered with FINRA as a Financial & Operations Principal (Series 27), Municipal Securities Representative (Series 52), Uniform State Securities Agent (Series 63), Investment Banking Representative (Series 79), and General Securities Representative (Series 7).

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Bryan Thomas

Vice President, Public Institutions

Current Responsibilities Based in Washington, DC, Mr. Thomas is a Vice President in JLL’s Public Institutions group, where he delivers comprehensive energy and real estate advisory services to public sector clients. He develops and executes strategies to help organizations achieve their objectives through public-private partnerships and other venture opportunities. Mr. Thomas has a thorough understanding of procurement and development of power and infrastructure projects, including identifying, organizing, and leading teams in procurement and execution of successful projects, and has closed over $1.7B of Public-Private Partnership transactions. He has extensive experience conducting project financial due diligence for renewable energy, utility distribution systems, and various real estate asset classes.

Currently Mr. Thomas serves as a senior advisor to the Army’s Office of Energy Initiatives, supports the Air Force’s utilities privatization efforts, and leads a renewable energy portfolio effort for the Washington Metropolitan Area Transit Authority (WMATA). Representative Clients Experience • U.S. Army Office of Energy Initiatives (OEI) Mr. Thomas has extensive experience supporting clients in developing comprehensive • U.S. Air Force energy solutions. He is a key member of a team seeking a single industry partner to • WMATA integrate the energy delivery chain (commodity purchase, onsite generation, distribution, and end-use efficiency and consumption) to cost effectively deliver reliable, resilient and efficient energy to military installations. Supporting the Army’s Achievements Office of Energy Initiatives (“OEI”), he served as the lead advisor resulting in • 15 years with JLL transactional closings for 7 utility scale renewable energy projects totaling over 300MW. • 20-year U.S. Army career These projects involved “behind the meter” PPAs and grid-facing ground leases. He has led biomass and solar energy feasibility studies as well as microgrid studies in an effort to find energy resilience solutions. Additionally, he is leading efforts to privatize utility distribution systems at military installations and has analyzed capital projects in the Republic of Korea and Australia.

Prior to joining JLL in 2004, Mr. Thomas completed a 20-year career in the U.S. Army serving in operational, leadership, training and planning roles. Noteworthy was an assignment as an Assistant Professor of Economics at West Point (the U.S. Military Academy) where his responsibilities included directing and teaching courses in the undergraduate economics and finance programs. He also participated in international exercises in the Republic of Korea, Thailand, Kosovo, and Poland, and was stationed in Germany.

Education & Affiliations

Mr. Thomas holds an M.B.A. from the Ross School of Business at the University of Michigan. He received a Bachelors of Science from the United States Military Academy at West Point. He is a certified Project Management Professional (PMP) and a LEED Green Associate.

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Dan Edwards

Senior Analyst, Public Institutions

Current Responsibilities Dan Edwards is a Senior Analyst at JLL on the Public Institutions team based out of Boston, Massachusetts. Mr. Edwards delivers an array of services including project management, consulting, underwriting, and proposal drafting. Mr. Edwards works with public agencies, municipalities, and higher education groups to execute on all facets of their real estate needs. Experience Mr. Edwards is heavily involved in JLL’s work with the Massachusetts Bay Transportation Authority, Massachusetts Department of Transportation, and Hull Redevelopment Authority. Mr. Edwards’ responsibilities include strategic advisory, financial analysis, project specific modeling and underwriting, and consulting clients in all aspects of real estate operations and dispositions. Mr. Edwards also works on the exclusive brokerage team in charge of MassDevelopment’s land offerings in Devens, Massachusetts, a former Representative Clients military installation turned Economic Development Zone. • Massachusetts Bay Transportation Authority Prior to joining JLL, Mr. Edwards worked in capital markets brokerage focusing on • Massachusetts Department of multifamily and hospitality developments in markets such as South Florida, Phoenix, St. Transportation Louis, and Dallas. Mr. Edwards was an early-stage employee at WeWork, working as a • MassDevelopment Project Manager, and played an integral role in the company’s expansion into the • Hull Redevelopment Authority Washington, DC metro area as well as on special projects within the company that • Boston Planning and implemented proprietary space solutions for a wide range of clients. Mr. Edwards also Development Agency worked directly in the early stages of the company’s live/work concept, and helped execute • the project’s launch in Arlington, Virginia in 2016. Before WeWork, Mr. Edwards worked in MassDevelopment the commercial real estate research department at CoStar Group at the firm’s headquarters • General Services Administration in Washington. • University System of New Hampshire Education and Affiliations • University of Massachusetts Mr. Edwards earned a Bachelor’s degree in Economics from Salve Regina University in Building Authority Newport, Rhode Island and is pursuing a Master’s in Real Estate at Georgetown University. • University of Connecticut Mr. Edwards is a member of the Urban Land Institute and REFA Boston.

Achievements

• 6+ years of real estate experience

220 10/30/2015 General Laws: CHAPTER 164, Section 137 August 2020 Port Council Meeting

Print

PART I ADMINISTRATION OF THE GOVERNMENT

TITLE XXII CORPORATIONS

CHAPTER 164 MANUFACTURE AND SALE OF GAS AND ELECTRICITY

Section 137 Participation in group purchasing of electricity, natural gas, telecommunications services or similar products

Section 137. Notwithstanding any general or special law to the contrary, (i) any non­profit institution in the commonwealth or any agency, executive office, department, board, commission, bureau, division or authority of the commonwealth, including the executive, legislative and judicial branches of the commonwealth, or of any political subdivision thereof, or of any authority established by the general court to serve a public purpose, may, unless located within the boundaries of a community served by a municipal light department, participate in and become a member of any competitively procured program organized and administered, under this chapter, by or on behalf of any public instrumentality of the commonwealth or of any subsidiary organization thereof for the purpose of group purchasing of electricity, natural gas, telecommunications services or similar products; (ii) the disposition of municipal or state real property by lease, easement or license for renewable energy shall not require competitive bidding when part of a power purchase agreement or a net metering agreement in a program organized and administered under this section; (iii) any agency, executive office, department, board, commission, bureau, division or authority of the commonwealth, including the executive, legislative and judicial branches of the commonwealth, may, on behalf of the commonwealth, dispose of real property, by lease, easement or license, which is part of a power purchase agreement or net metering agreement in a program organized and administered under this section, including, but not limited to, construction of renewable energy projects on state property; and (iv) any renewable energy project which is part of a power purchase agreement or net metering agreement in a program organized and administered under this section and considered to be public construction shall be subject to sections 26 to 27D, inclusive, of chapter 149.

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STAFF SUMMARY Date: July 30, 2020 File# L-501

TO: FOR: FROM:

General Dept.: Legal x Vote Manager Author: Terence G. Kenneally x Board Subject: Amendments to the x x Information Members Authority’s Customer Handbook

PURPOSE:

To advise the Members of updates and amendments to the Authority’s published Customer Handbook.

BACKGROUND:

The recent review and approval of the amendment of the Authority’s Medical Travel Policy coincided with a more comprehensive review of the Authority’s Customer Handbook. During the review, several previously approved policies required editing as well as updates to new personnel and seating capacities onboard vessels in addition to numerous general grammatical edits. The attached revised Customer Handbook includes updates to the following previously approved policies:

1. Lifeline Cards and Ferry Pass Cards (Approved - April 2018 & September 2018); 2. Travel Policy for Medical Appointments (Approved - September 2018); 3. Prohibition on the use of e-cigarette and vaping-related products (Approved - June 2019); 4. Extension of ticket usage and refund limits to two years from date of purchase (Approved – March 2020); and 5. Emergency Transportation and Preferential Boarding Policies (Approved – July 2020).

All remaining substantive edits to the Customer Handbook are highlighted within the attached copy for your review and reference. All general grammatical edits have been made without highlighting them for ease of reading and reference.

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RECOMMENDATION:

Presented for informational purposes, no action is required.

______Terence G. Kenneally General Counsel

Attachment

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To our customers:

The following document is the current version of the Steamship Authority’s “Customer Policies and Procedures Handbook.” The Customer Handbook will always be a “work in progress” that the Authority will continue to develop in response to customer needs and suggestions.

If you have any comments, observations, questions, suggestions or complaints about any of the policies or procedures described in the following Customer Handbook, please email them to our General Manager, Robert Davis, who will forward all emails to the appropriate employees at the Steamship Authority to ensure that they are considered. Although it may take some time, we will respond to each email that we receive so that you know whether we have revised any of our policies or procedures in response to your comment. Further, even if we conclude that nothing should be revised, we will still try to explain our reasons for maintaining our current policies. Mr. Davis’s email address is [email protected].

Thank you in advance for taking the time to help us improve our customer service here at the Steamship Authority and the manner in which we fulfill our statutory mission of providing adequate transportation of persons and necessaries of life for the islands of Nantucket and Martha's Vineyard.

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Customer Policies and Procedures Handbook

As Revised through July 24, 2020

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TABLE OF CONTENTS

A. TERMS AND CONDITIONS OF TRAVEL

1. General Terms and Conditions of Travel...... 1

2. Vehicle Limitations...... 3

3. Restricted Articles...... 5

4. Vehicle Boarding Priorities...... 6

4.1 General Boarding Priorities...... 6 4.2 Exceptions to General Boarding Priorities...... 7 4.3 Emergency Transportation Policy...... 9

5. Vehicle Standby Travel...... 12

5.1 Vehicle Standby Travel on the Martha's Vineyard Route...... 12 5.2 Vehicle Standby Travel on the Nantucket Route...... 13 5.3 Preferential Boarding of Certain Customers Traveling on Standby. 16

6. Passenger Travel...... 18

6.1 General Provisions Governing Passenger Travel...... 18 6.2 Passenger Boarding Priorities...... 19 6.3 Baggage...... 19 6.4 Pets...... 21

B. PASSENGER FARES

1. Regular Individual Fares...... 1

1.1 Conditions Applicable to All Regular Individual Fares...... 1 1.2 Types of Regular Individual Fares...... 2 1.2.1 Adult Fares...... 2 1.2.2 Children Fares...... 2 1.2.3 Infants...... 2

2. Discounted Individual Fares...... 2

2.1 Conditions Applicable to All Discounted Individual Fares...... 2

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2.2 Types of Discounted Individual Fares...... 3 2.2.1 Senior Citizen Fares...... 3 2.2.2 Individuals with Disabilities...... 3 2.2.3 Legally Blind Passengers...... 4 2.2.4 Furlough Fares...... 4 2.2.5 Island Public Officials Traveling on Official Governmental Business...... 4

3. Group Fares...... 5

3.1 Conditions Applicable to All Group Fares...... 5 3.2 Types of Group Fares...... 6 3.2.1 Regular Group Fares...... 6 3.2.2 Student and Youth Group Fares...... 6

4. Multiple-Ticket Books/Lifeline Cards/Ferry Pass/EFERRY...... 7

4.1 Conditions Applicable to All Ticket Books/Lifeline Cards...... 7 4.2 Types of Ticket Books/Lifeline Cards...... 7 4.2.1 General Ticket Books/Lifeline Cards ...... 8 4.2.2 High-Speed Ferry 10-Ride Ticket Books...... 8 4.2.3 46-Ride Calendar Month Ticket Books/Lifeline Cards. . . . . 8 4.2.4 Student Ticket Books/Lifeline Cards...... 8 4.2.5 Senior Citizen Ticket Books/Lifeline Cards ...... 9 4.2.6 Children Ticket Books/Lifeline Cards...... 9 4.2.7 Ticket Books/Lifeline Cards for Individuals with Disabilities ...... 10 4.2.8 High-Speed Ferry 10-Ride Ticket Books for Frequent Medical Travel...... 10

5. Embarkation Fees...... 11

C. NON-COMMERCIAL VEHICLE FARES

1. Eligibility...... 1

2. Regular Automobile Fares...... 2

2.1 Items Included in the Regular Automobile Fare...... 2 2.2 Fares for Automobiles are Based upon Length...... 2 2.3 Extended Loads Included in the Length of Vehicles...... 2 2.4 Additional Charge for Trailer...... 3 2.5 Wide Loads and Wide Vehicles Charged Double the Applicable Fare...... 3 2.6 No Additional Charge Based upon the Height of a Vehicle...... 3

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3. Multiple-Trip Non-Commercial Automobile Ticket Books ...... 3

4. Excursion Fares...... 4

4.1 Eligibility Requirements...... 4 4.2 Items Included in an Excursion Fare...... 5 4.3 Additional Charge for Longer Vehicles...... 6 4.4 Excursion Fare Travel Restricted to Specific Vehicles...... 6 4.5 Special Restrictions Applicable to Excursion Fare Travel...... 7 4.6 Exceptions for College Students and Active Military Personnel . . . 8 4.7 Special Excursion Fares for Multiple Medical Treatments...... 8 4.8 Inter-Island Motorcycle Excursion Fare...... 9

5. Passenger Group Vehicle Fares...... 9

6. Island Public Officials Traveling on Official Governmental Business...... 10

D. COMMERCIAL VEHICLE FARES

1. Definition of a “Commercial” Vehicle...... 1

2. Regular Commercial Vehicle Fares...... 1

2.1 Items Included in the Regular Commercial Fare...... 2 2.2 Fares for Commercial Vehicles are Based upon Length...... 2 2.3 Extended Loads Included in the Length of Vehicles...... 2 2.4 Additional Charge for Trailer...... 2 2.5 Wide Loads and Wide Vehicles Charged Double the Applicable Fare...... 2 2.6 No Additional Charge Based upon the Height of a Vehicle...... 2

3. Special Commercial Vehicle Fares...... 3

3.1 Ambulances...... 3 3.2 Hearses...... 3 3.3 Buses...... 3 3.4 School Buses...... 3 3.5 Camping Vehicles...... 3 3.6 Livery Vehicles...... 4 3.7 Vehicles Carrying the United States Mail...... 4 3.8 Vehicles Carrying Livestock...... 4 3.9 Vehicles Carrying Fresh Fruits, Vegetables, Fish or Shellfish. . . . . 5 3.10 Vehicles Carrying Recyclable Materials or Solid Waste...... 6 3.11 Vehicles Carrying Hazardous Materials...... 6

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E. RESERVATIONS

1. General Reservation Information...... 1

1.1 Vehicles on All Vessels and High-Speed Ferry Passengers...... 1 1.2 Motorcycles, Other Items and Passengers on Traditional Ferries. . . 2 1.3 Contacting the Authority to Make a Reservation...... 2 1.4 Customer Accounts...... 3

2. High-Speed Passenger Ferry Reservations...... 4

3. Making Vehicle Reservations...... 5

3.1 When to Make Reservations...... 5 3.2 Reservation Restrictions...... 6 3.3 Information Needed to Make a Reservation...... 6 3.4 Paying for a Reservation...... 8 3.5 Prepaying Fares for Passengers Traveling with Vehicles...... 8 3.6 Wait Listing...... 8 3.7 Reservation Confirmations...... 10

4. Special Circumstances for Vehicle Reservations...... 11

4.1 Reservations for Vehicles Being Transported without Drivers. . . . . 11 4.2 Reservations for Vehicles Needing to be Towed or Pushed...... 11 4.3 Reservations for Customers with Disabilities...... 11 4.4 Reservations for Customers Traveling in Rental Cars...... 12 4.5 Reservations for Customers Traveling to Medical Appointments. . . 12 4.6 Reservations for Automobile Dealerships and Rental Car Companies...... 12 4.7 Restrictions for Vehicles Carrying Certain Commodities...... 13

5. Changing Vehicle Reservations...... 13

5.1 Changes Made at Least Fourteen (14) Days in Advance ...... 13 5.2 Changes Made with Less Than Fourteen (14) Days’ Notice...... 14 5.3 Certain Changes Not Subject to the Above Restrictions...... 15

6. Canceling Vehicle Reservations...... 15

6.1 Segments of Trip Eligible for Refund...... 15 6.2 Reservations Canceled on Same Day Made...... 16 6.3 Advance Notice Required for Refund...... 16 6.4 Return of Unused Ticket Required for Refund...... 17 6.5 Refund of Passenger Fares...... 17

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7. Unused Reservations...... 17

8. Commercial Vehicles Waitlisted for One Segment of Travel...... 18

F. SPECIAL RESERVATION PROGRAMS

1. Availability of Special Reservation Programs...... 1

2. Bulk Freight Reservation Program...... 3

2.1 Eligibility...... 3 2.2 Submission of Bulk Freight Reservation Requests...... 3 2.3 Processing of Bulk Freight Reservation Requests...... 4 2.4 Deposit Requirements...... 7 2.5 Transferring, Changing and Canceling Bulk Freight Reservations. . 8

3. Preferred Space Program...... 9

3.1 Eligibility...... 9 3.2 Travel in Preferred Spaces Restricted to Specific Vehicles...... 9 3.3 Special Restrictions Applicable to Preferred Space Reservations. . 9 3.4 Availability of Preferred Space Reservations...... 10 3.5 Advance Reservation of Preferred Spaces by Eligible Customers. . 11

4. Head start Reservation Program...... 12

4.1 Eligibility...... 12 4.2 Special Rules for Headstart Reservations...... 12 4.3 Availability of Headstart Reservations...... 14

5. Tour Bus Reservation Program...... 15

5.1 Eligibility...... 15 5.2 Submission of Tour Bus Reservation Requests...... 15 5.3 Processing of Tour Bus Reservation Requests...... 16 5.4 Payment Requirements...... 16 5.5 Transferring, Changing and Canceling Tour Bus Reservations. . . . 17

G. PARKING

1. Parking Availability...... 1

2. Designation of Parking Space Use...... 2

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3. Parking Charges...... 3

4. Parking Permits...... 4

4.1 Eligibility for Permits...... 4 4.1.1 On-Site Terminal Parking Permits...... 4 4.1.2 Off-Site Parking Permits...... 5 4.1.3 Off-Season Permits...... 5 4.2 Terms and Conditions of Permits...... 6

5. Parking at the Vineyard Haven and Nantucket Terminals...... 7

6. Complimentary Parking...... 8

6.1 Authority and Port Council Meetings...... 8 6.2 Other Complimentary Parking...... 8

H. MISCELLANEOUS SERVICES

1. Drive-on / Drive-off Services...... 1

2. Towing / Pushing Services...... 3

3. Vehicle Assistance Services...... 5

4. Release and Indemnification Agreement...... 5

I. SALES AND REFUNDS

1. Sales of Tickets, Ticket Books, Lifeline Cards and Reservations...... 1

1.1 Paying for a Ticket, Ticket Book, Lifeline Card or Reservation. . . . 1 1.2 Conditions of Sale for Tickets, Ticket Books and Lifeline Cards. . . 2 1.3 Authority Charge Accounts...... 2 1.4 Steamship Authority Gift Cards...... 4 1.5 Authority Gift Certificates...... 5

2. Refunds and Redemptions of Tickets and Ticket Books...... 6

3. Lost Vehicle Tickets...... 7

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J. SECURITY

1. General Security Procedures...... 1

2. Firearms, Other Weapons, Explosives and Incendiaries...... 1

3. Other Potentially Dangerous Items...... 4

K. ACCESSIBILITY

1. General Assistance...... 1

2. Accessible Vessels...... 1

3. Policies to Assist Individuals with Disabilities...... 2

3.1 Availability of Accessible Parking Spaces...... 2 3.2 Advance Reservation of Preferred Spaces by Eligible Customers...... 2 3.3 Preferential Boarding of Individuals with Disabilities Traveling on Standby...... 2 3.4 Emergency Transportation Policy...... 2 3.5 Discounted Passenger Fares...... 2

4. Availability of a Complaints Resolution Official (“CRO”) ...... 3

L. HAZARDOUS CARGO

1. General Requirements for Hazardous Cargo Transport...... 1

2. Incidental Carrying of Small Tanks of Hazardous Cargo...... 1

2.1 Securing Approved Containers of Small Quantities of Hazardous Cargo...... 1 2.1.1 Gasoline...... 1 2.1.2 Propane...... 2 2.1.3 Acetylene...... 2 2.1.4 Oxygen...... 2 2.2 Requirements for Carrying Small Containers of Hazardous Cargo. . 2

3. Requirements for the Transport of Other Hazardous Cargo...... 3

4. Special Requirements for Hazardous Transport Vehicles...... 5

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5. Certain Types of Hazardous Cargo...... 6

6. Operation of Vehicle Refrigeration or Heating Equipment...... 6

M. VESSEL INFORMATION

1. Allocation of Vehicle Spaces...... 1

2. Vessel Passenger Capacities...... 3

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235 August 2020 Port Council Meeting Part A – Terms and Conditions of Travel

A. TERMS AND CONDITIONS OF TRAVEL

This Part A describes the Authority’s terms and conditions of travel:

. The Authority’s general terms and conditions of travel, including the Authority’s right to refuse passage to anyone or any vehicle, to cancel or reroute any trip, to require customers generally to operate their own vehicles on and off the vessels, and the Authority’s limitation of liability (Section 1).

. Height, length, width and weight limitations of vehicles traveling with the Authority, as well as limitations of trailers pulled by vehicles traveling with the Authority (Section 2).

. Restricted articles on the Authority’s vessels, including but not limited to hazardous cargo, solid and liquid waste, livestock and agricultural products (Section 3).

. Vehicle loading priorities, including arrival procedures for customers with vehicle reservations, exceptions to those priorities for emergencies and disruptions of service, and the Authority’s emergency transportation policy (Section 4).

. Vehicle standby travel (traveling without a vehicle reservation), including the different procedures governing vehicle standby travel on the Martha's Vineyard route and the Nantucket route, and the Authority’s policy allowing the preferential boarding of individuals with disabilities traveling on standby (Section 5).

. Passenger travel policies, including passenger boarding priorities, baggage limitations and rules governing passengers traveling with pets (Section 6).

1. GENERAL TERMS AND CONDITIONS OF TRAVEL.

1.1 The Authority at its sole judgment and discretion may refuse passage to anyone and/or may refuse to transport any vehicle except on such conditions as may be required by the Authority. The Authority without notice may cancel any sailing or limit the number of passengers and/or vehicles allowed on any sailing. The Authority may also refuse passage to individuals and/or transportation of their vehicles if the carrying capacity of a vessel is reached before sailing time.

1.2 The Authority neither agrees nor guarantees to carry any motor vehicles by any particular boat or trip, or to the exclusion of other freight. The Authority also reserves the right to deviate from or to cancel sailing schedules with or without notice, and the Authority assumes no liability for loss, damage or expense which

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may result therefrom. The Authority also reserves the right in all cases and without liability to substitute one vessel for another.

1.3 Motor vehicles and motor boats transported on the Authority’s vessels may have gasoline in their fuel tanks. A motor boat may also have up to six gallons of additional gasoline, provided the gasoline is appropriately stowed therein in one or more approved containers that are closed and in good condition, as more fully described in Part L of this Handbook entitled “Hazardous Cargo.” One propane tank, acetylene tank or oxygen tank may also be transported by a customer in a vehicle only in compliance with Part L of this Handbook. No customer traveling without a vehicle may carry any gasoline, propane, acetylene or oxygen on board any vessel, unless a passenger needs oxygen for medical reasons.

1.4 Each customer transporting a motor vehicle is required to have a driver available to operate the customer’s vehicle at all times while the vehicle is on the property or a vessel of the Authority. It is the customer’s responsibility to operate the vehicle whenever it is moved under its own power, including driving the vehicle on and off the vessel. The Authority is not responsible in any way for the operation of the customer’s motor vehicle, although on its Hyannis-Nantucket route only, the Authority will provide a customer with “drive-on/drive-off” services for his or her vehicle in accordance with Section 1 of Part H of this Handbook.

1.5 All passengers and their vehicles are subject to screening by the Authority for security purposes, in accordance with Part J of this Handbook. In addition, shippers of freight on trucks will be required to open their vehicles for inspection of contents, when requested by the Authority. The purpose of this additional inspection is not only to determine that no dangerous or prohibited articles have been accepted for transportation, but also to verify the description of the vehicle’s contents if a higher rate might apply.

1.6 Vehicle engines must be turned off while the vessel is underway, and customers may not restart their engines until directed by a vessel crewmember.

1.7 Massachusetts law prohibits smoking anywhere in or upon any Authority vessel. All smoking materials (including but not limited to matches, cigars, cigarettes and pipes) must be extinguished prior to boarding. The Authority also prohibits the use of e-cigarettes and vaping products anywhere in or upon any Authority vessel in the same manner it prohibits smoking. (Please see the Authority’s Rules and Regulations Governing Public Conduct on Terminal Property for the Authority’s restrictions on smoking and the use of e-cigarettes on Authority property.)

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1.8 Massachusetts law also prohibits passengers from consuming alcoholic beverages aboard any Authority vessel other than those sold by the Authority’s licensed concessionaire. Passengers are not allowed to bring alcoholic beverages on or off a vessel except for such beverages as they are transporting as personal baggage in unopened containers which may not be opened while the vessel is underway. Further, the Authority’s licensed concessionaire may not serve alcoholic beverages to any passenger while the vessel is at dockside or prior to casting off. Nor may alcoholic beverages be served on trips of more than two (2) hours to any passenger within one-half hour before the vessel docks.

1.9 The Authority prohibits the smoking or any other use of marijuana anywhere in or upon any Authority vessel or on any Authority property.

2.0 The Authority will not be responsible for loss from theft or pilferage of freight or any other items carried in or on a customer’s vehicle.

2.1 The Authority shall not be liable for any personal injuries (including death) or property damage or loss, or any expense caused directly or indirectly by war, atomic weapons, radioactive force, epidemics, acts of terrorism, strikes, lock-outs, workers or other persons taking part in labor disturbances, riots, civil commotions, rebellions or insurrections.

2. VEHICLE LIMITATIONS.

2.1 Height Limitations.

The height of vehicles traveling on the Authority’s vessels may not exceed:

2.1.1 Vehicles traveling on the M/V Nantucket: thirteen (13) feet.

2.1.3 Vehicles traveling on all other vessels: thirteen (13) feet, six (6) inches (although vehicles as high as fourteen (14) feet might be able to be carried on the freight boats under ideal tide conditions).

2.2 Length Limitations.

Unless specifically approved by a Truck Coordinator in the Authority’s Mashpee Reservations Office (for vehicles with reservations) or the Terminal Agent at the departure terminal (for vehicles traveling without reservations), the length of

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vehicles traveling on the Authority’s vessels may not exceed seventy-four (74) feet, eleven inches (although vehicles exceeding seventy-five (75) feet might be able to be carried on these vessels with the approval of the Terminal Agents at both the port of embarkation and the port of destination).

2.2.1 Vehicles Longer than Sixty-Five (65) Feet. Vehicles that exceed sixty-five (65) feet in length must have two (2) feet of ground clearance (they cannot be Low-boys). Otherwise they can only be accommodated under ideal tide conditions.

2.2.2 Oak Bluffs Terminal Length Restrictions. Vehicles traveling to Oak Bluffs may not exceed sixty-five (65) feet, and vehicles traveling from Oak Bluffs may not exceed sixty (60) feet.

2.3 Width Limitations.

Unless specifically approved by a Truck Coordinator in the Authority’s Mashpee Reservations Office (for vehicles with reservations) or the Terminal Agent at the departure terminal (for vehicles traveling without reservations), the width of vehicles traveling on the Authority’s vessels may not exceed:

2.3.1 At the Wheel Base: nine (9) feet, six (6) inches.

2.3.2 Above the Wheel Base: eleven (11) feet, six (6) inches.

In addition, vehicles wider than eight (8) feet, six (6) inches need to reserve and pay for a “double-width” space.

2.4 Weight Limitations.

Unless specifically approved by a Truck Coordinator in the Authority’s Mashpee Reservations Office (for vehicles with reservations) or the Terminal Agent at the departure terminal (for vehicles traveling without reservations), the weight of vehicles traveling on the Authority’s vessels may not exceed:

2.4.1 52,000 pounds for vehicles up to thirty (30) feet long.

2.4.2 86,000 pounds for vehicles thirty (30) feet or more in length.

Vehicles in excess of the above weights may be accepted for travel only if the customer complies with all conditions as may be required by the Authority for such travel. Heavy equipment with metal tracks must also provide plywood to drive on and off the vessel.

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2.5 Trailer Limitations.

Because customers traveling on the M/V Gay Head, the M/V Katama and the M/V Sankaty are generally required to back their vehicles onto or off of those vessels, the Authority strongly discourages customers with vehicles towing trailers (except tractor-trailers) from traveling on the M/V Gay Head, the M/V Katama or the M/V Sankaty. Customers with vehicles towing trailers who choose to travel on any of those vessels will be responsible for loading and unloading their vehicles safely and quickly within the normal time constraints of the loading and unloading process. Failure to do so will result in the imposition of a drive-on/drive-off charge if the Authority elects to drive the vehicle and trailer on the customer’s behalf under Section 1 of Part H of this Handbook (available on the Hyannis-Nantucket route only) or in the Authority’s refusal to allow the customer to board the vessel with his or her vehicle and trailer (and, as a result, in the customer’s forfeiture of his or her reservation and ticket).

3. RESTRICTED ARTICLES.

3.1 Shipment Weight and Dimensional Limitations.

3.1.1 Acceptance of vehicle shipments is subject to gross weight and dimensional limitations established by the Authority, which may vary among vessels and ports. Shipments in excess of the weight and dimensional limitations will only be accepted upon prior arrangements with the Authority.

3.1.2 Pieces of machinery, and other cumbersome or heavy articles may be refused unless it has previously been ascertained that such pieces or articles can be safely and appropriately handled by the Authority.

3.2 Vehicles Carrying Certain Commodities.

Vehicles carrying garbage and/or trash, solid or liquid waste, septage, recyclable materials (including crushed vehicles), livestock (including live bees), agricultural products, fresh fish and/or shellfish (shucked or in the shell), construction demolition materials, or any other odorous or dangerous commodity will not be accepted for shipment unless the customer complies with the following conditions:

3.2.1 The shipments must be properly contained and covered so as to prevent spillage/leakage and to minimize odors.

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3.2.2 Unless otherwise approved by the Authority in advance, the customer must provide a driver who shall be required to remain with the vehicle at all times.

3.2.3 The customer shall be responsible for any and all clean-up or washdown charges associated with any accidental spillage or leakage.

3.2.4 The customer’s reservations may be restricted or consolidated, at the Authority’s sole discretion, to certain vessels and/or times of travel in order to minimize any inconvenience to the general public or other shippers.

3.3 Vehicles Carrying Hazardous Materials.

Vehicles carrying certain commodities, including but not limited to gasoline, heating oil, oxygen (compressed or liquid), propane, kerosene and other hazardous or flammable products, are required to travel only on certain restricted trips of the Authority’s freight boats (generally called “hazardous cargo” trips). Vehicles carrying any such hazardous cargo will be accepted for transportation on such trips subject to and in accordance with the provisions of Part L of this Handbook, entitled “Hazardous Cargo.”

4. VEHICLE BOARDING PRIORITIES.

4.1 General Boarding Priorities.

Except as provided in Sections 4.2 and 4.3 below, vehicles generally will be boarded onto the Authority’s vessels in the following order of priority:

4.1.1 Vehicles with Reservations: Vehicles with reservations for a particular scheduled trip generally will be boarded first, in the order they arrive and check in at the departure terminal, subject to the following conditions:

(a) A customer with a vehicle reservation must arrive and check in at the departure terminal sufficiently in advance of the scheduled trip, which is generally thirty (30) minutes before the vessel’s scheduled departure, with his or her reservation confirmation and proper identification readily available.

(b) At the Terminal Agent’s discretion, a customer with a vehicle reservation who arrives later than thirty (30) minutes before the vessel’s scheduled departure may still be boarded for that scheduled trip if the Authority has not yet finished loading all of the other vehicles for that trip and the boarding of the customer’s vehicle does

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not otherwise affect the loading of the vessel. Moreover, no standby vehicles already selected for boarding will be “bumped” from a trip to allow the boarding of any vehicle with a reservation that arrives after the standby vehicles have been selected for boarding. Because it is somewhat unpredictable when that moment in the loading process will occur for any given trip, customers who arrive later than thirty (30) minutes before their scheduled departure do so at their own risk.

(c) If a customer with a vehicle reservation is not boarded due to his or her late arrival at the departure terminal, the reserved space will be used for another vehicle(s), and the customer’s vehicle will only be able to travel on a standby basis with no priority over other standby vehicles.

4.1.2 Standby Vehicles. Vehicles traveling on a standby basis generally will be boarded second, in the order described in Section 5 below.

4.2 Exceptions to General Boarding Priorities.

4.2.1 Emergency Situations. An ambulance or a customer’s vehicle may be boarded on a preferential basis if it needs to be transported due to an “emergency situation,” in accordance with the provisions of the Authority’s Emergency Transportation Policy (see Section 4.3 below). In such an emergency situation, other vehicles with reservations may be “bumped” from their reserved trips in order to accommodate the ambulance or customer needing to travel on an emergency basis. Alternatively, the Terminal Agent may address the emergency situation by boarding the ambulance or the customer’s vehicle after boarding all vehicles with reservations but before boarding standby vehicles.

4.2.2 Disruptions in Service. In the event of a disruption in service, customers with reservations on canceled trips may make new reservations or travel on standby status when service resumes. The Authority will endeavor to help those customers make new reservations at the terminal, even though the general public may not be able to make reservations at that time. In these situations, the Authority will also create a special standby line for customers holding reservations on canceled trips; provided, however, that no special standby line will be created for customers holding reservations on canceled trips from Nantucket (because there is no space available to accommodate standby vehicles at that terminal).

Note: Customers holding reservations for canceled trips who elect to leave their cars in one of the Authority’s parking lots and return at a later date to pick up their vehicles will be issued vouchers for two

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calendar days of free parking and shall also be provided with free round trip passage for one person. (Thus, customers holding reservations on canceled trips to the Island, regardless of whether they choose to make new reservations or travel on standby status, will be able to leave their vehicles in one of the Authority’s parking lots, travel to the Island without their vehicles as soon as service resumes, and return to the mainland at a later date to pick up their vehicles.)

When service resumes, the Authority will board vehicles in the following order:

(a) emergency vehicles (which, especially after an extended service disruption, may include vehicles such as utility service vehicles and trucks carrying the United State mail, food, gasoline, heating fuel, perishable products or other commodities needed on the island);

(b) when warranted and at the Terminal Agent’s discretion, customers who had reservations for canceled trips and who need to travel without any further delay for their physical health or the physical health of animals traveling with them, in order to prevent medical emergencies from arising that cannot suitably be addressed at the port of embarkation;

(c) customers left behind due to being displaced by emergency vehicles or by customers boarded to prevent medical emergencies;

(d) customers holding reservations for the particular trip being loaded;

(e) customers who had reservations for canceled trips from the previous day(s), in the following order:

(i) at all terminals except for the Nantucket terminal, such customers will be boarded in the order they arrive and are placed in the special standby line, and

(ii) at the Nantucket terminal, such customers will be boarded starting with those who had reservations on the earliest canceled trip and then those who had reservations on each successive canceled trip (and within each canceled trip, such customers will be boarded in the order in which they booked their reservation on that trip);

(f) customers who had reservations for canceled trips earlier in the day, in the following order:

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(i) at all terminals except for the Nantucket terminal, such customers will be boarded in the order they arrive starting with the first canceled trip, and

(ii) at the Nantucket terminal, such customers will be boarded starting with those who had reservations on the earliest canceled trip and then those who had reservations on each successive canceled trip (and within each canceled trip, such customers will be boarded in the order in which they booked their reservation on that trip); and

(g) customers in the regular standby line, in the order described in Section 5 below. (Depending on the number of trips that were canceled, it also may be necessary temporarily to close the regular standby line for those customers without reservations until normal operations resume.)

After resumption of normal operations, the Operations Manager shall determine when there is no longer a need to have the special standby line for customers who had reservations for canceled trips, and the special standby line shall be closed at that time. If any customers who had reservations for canceled trips arrive after the closing of the special standby line, they shall be placed in the regular standby line with no special priority.

4.2.3 Other Circumstances. The Authority may board vehicles in a different order than generally set forth in Section 4.1 and/or Section 4.2 for other reasons, when warranted and at the discretion of the Terminal Agent. For example, the next vehicle to be boarded may not easily fit within the next available space, or a different order of boarding may improve the efficiency of the Authority’s operations or ensure compliance with United States Coast Guard requirements. Also at the discretion of the Terminal Agent, food trucks that make multiple delivery stops on Nantucket may be given standby priority for the first freight trip from Hyannis to Nantucket if they have reservations on the next trip from Hyannis and also have return reservations for the same day. The Authority also may board vehicles in a different order when unusual circumstances (such as a road closure or excessive tide conditions) occur in an effort to minimize the amount of disruption and inconvenience to its customers on an equitable basis.

4.3 Emergency Transportation Policy.

In emergency situations, the Authority will allow the emergency boarding of an ambulance or a customer’s vehicle in accordance with the following guidelines.

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4.3.1 Definition of Emergency Situation. For the purposes of this policy, an emergency situation exists in the following circumstances:

(a) An ambulance or a customer’s vehicle needs to be transported from the island to the mainland without delay for emergency medical care which is not available on the island; or

(b) A customer’s vehicle needs to be transported from the island to the mainland without delay so that the patron can attend to a death or an unexpected serious illness or injury of a member of the patron's immediate family on the mainland.

4.3.2 Emergency Transportation of Ambulances. In order for the Authority to allow the emergency boarding of an ambulance, the ambulance company or hospital must contact the Terminal Agent as soon as possible after being apprised of the emergency situation to explain the ambulance's need for emergency boarding. The Terminal Agent shall then discuss with the ambulance company and/or hospital the alternatives for boarding that are available for the ambulance, and they shall agree upon the alternative most suitable for the emergency situation presented. When deciding how an ambulance should be boarded, the Terminal Agent generally shall observe the following guidelines:

(a) An ambulance carrying an individual who needs emergency medical care shall be allowed to board immediately;

(b) An ambulance traveling to pick up an individual who needs emergency medical care also shall be allowed to board immediately, unless the ambulance company or hospital agrees that traveling on a later vessel will not pose a risk of harm to the individual;

(c) An ambulance returning to its port of origination after having carried an individual needing emergency medical care shall be allowed to board within a designated time period agreed upon between the ambulance company and the Terminal Agent, but will not necessarily be allowed to travel on the next departing vessel.

4.3.3 Emergency Transportation of Customers’ Vehicles. In order for the Authority to allow the emergency boarding of a customer’s vehicle, the customer’s attending physician (or, when the emergency involves a member of the customer’s immediate family, the physician caring for the family member) or hospital or funeral home, as the case may be, must contact the Terminal Agent to explain the customer’s need for emergency boarding. The Terminal Agent shall then discuss with the physician, hospital and/or funeral home the alternatives for emergency transportation and boarding that are available for the customer, and they shall agree upon the alternative

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most suitable for the emergency situation presented. Suitable alternatives for transportation and boarding may include the following:

(a) Immediate transportation and boarding of the customer by ambulance, which shall be encouraged by the Terminal Agent whenever there is a reasonable possibility that the customer may need medical care or monitoring while on board the vessel;

(b) Immediate boarding of the customer’s vehicle with or without accompanying medical personnel;

(c) Boarding of the customer’s vehicle within a designated time period; or

(d) Transporting the customer to the mainland without his or her vehicle, after ascertaining that the customer will be provided with alternative means of transportation upon arrival there, in which event arrangements may also be made to transport the customer’s vehicle to the mainland at a later time.

While managing the emergency situation, Tthe Terminal Agent, in his or her discretion , may take all reasonable steps and precautions to secure the timely and safe transportation of the customer in need of emergency boarding. The Terminal Agent should require the verification ofverify any information submitted prior to, at the time of, or after the customer’s arrival at the terminal. At a minimum, the Terminal Agent shall record the name, address and telephone number of the customer needing emergency boarding, as well as the physician, hospital and/or funeral home making the request. This information must remain confidential and communicated to the Authority’s Mainland Reservations Office for further handling. When requested, the Terminal Agent also shall inform the physician when the vessel carrying the customer has departed and, if the customer needs emergency boarding when returning to the island, shall advise the customer to contact the Authority's Mainland Reservations Office for that purpose.

4.3.4 Provisions for "Bumping" Other Vehicles with Reservations. A Terminal Agent may refuse to board any customer’s vehicle, whether or not that customer has a reservation for a particular trip, whenever it is necessary to board an ambulance or other vehicle in an emergency situation. In such a situation:

(a) The Terminal Agent shall first ask for volunteers, informing them when they will be transported if they agree to be "bumped" from that particular trip. If an insufficient number of customers volunteer to be "bumped" to meet the emergency situation, the Terminal Agent

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shall then “bump” the last vehicle(s) which checked in at the terminal for that particular trip.

(b) The Authority shall refund each affected customer’s one-way fare for both the “bumped” vehicle and its passengers. “Bumped” vehicles and their passengers shall travel at no charge and shall have priority for boarding on the next vessel leaving the terminal (except for vessels carrying hazardous cargo), and vehicles “bumped” as a result from that subsequent trip shall similarly be considered as having been “bumped” due to an emergency situation.

5. VEHICLE STANDBY TRAVEL.

5.1 Vehicle Standby Travel on the Martha's Vineyard Route.

5.1.1 Vehicle travel on a standby basis is generally not available on the Martha's Vineyard route during the Memorial Day Weekend, the Independence Day Holiday Week, the Labor Day Weekend, the Columbus Day Weekend, and on Fridays, Saturdays, Sundays and Mondays during the summer from late June through Labor Day.

(a) During these periods, a minimum of fifteen (15) vehicles of customers who are eligible for preferred reservations are accepted for standby travel at the Vineyard Haven and Woods Hole terminals each day (called the “Blue Line”). Vehicles used for commercial purposes are not eligible for the “Blue Line.” Based on travel conditions, this number may increase at the discretion of the agent on duty. Additionally, the availability of the “Blue Line” may be suspended or halted at any time during the day at the discretion of the agent on duty due to trip cancellations or other unforeseen circumstances.

(b) The Vineyard Haven and Woods Hole terminals will have designated areas to stage at least five (5) “Blue Line” vehicles at any given time. Customers who wish to travel using the “Blue Line” must not have a confirmed reservation or, if they do have a confirmed reservation, must be willing to forego that confirmed reservation.

(c) Those few vehicles allowed to travel on a standby basis are generally boarded onto vessels after vehicles with reservations, as space becomes available and in the order that such standby vehicles arrive and check in at the terminal of departure (except as set forth in Section 5.3 below).

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(d) Customers using the “Blue Line” are not guaranteed to travel that day. Any “Blue Line” vehicles that are not transported by the end of the day are required to leave the Authority’s property when the terminal closes for the night, and they are not given any priority for boarding the following day.

5.1.2 On all other days than those set forth in Section 5.1.1 above, vehicle travel on a standby basis is available on the Martha's Vineyard route. On such standby days, vehicles traveling on a standby basis are generally boarded onto vessels after vehicles with reservations, as space becomes available and in the order that such standby vehicles arrive and check in at the terminal of departure (except as set forth in Section 4.2 or Section 4.3 above, or in Section 5.3 below).

5.1.3 Standby vehicles that are not transported by the end of the day are required to leave the Authority’s property when the terminal closes for the night, and they are not given any priority for boarding the following day.

5.2 Vehicle Standby Travel on the Nantucket Route.

5.2.1 Standby Availability. Vehicle travel on a standby basis is available on the Nantucket route every day of the year, subject to and in accordance with the provisions of this Section 5.2.

5.2.2 Rental Cars. No more than five rental cars unaccompanied by a customer will be carried on any vessel unless all other vehicles waiting to be transported, including standby vehicles, are loaded onto the vessel; nor will any rental cars that are left for shipment be transported before any other standby vehicles.

5.2.3 Standby Procedures. The following procedures apply to standby vehicles traveling between Hyannis and Nantucket:

(a) Customers who desire to travel with their vehicles on a standby basis on the next available trip from the Hyannis terminal are required to go in person to the terminal and place their names on the standby list, while customers desiring to travel on a standby basis from the Nantucket terminal may either call or go in person to the Nantucket terminal to place their names on the standby list.

(b) The Authority will accept a customer’s name for placement on the standby list in the order received (except that the Authority reserves the right not to accept Nantucket terminal standby telephone requests from customers who have abused this policy in the past). In

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order to place his or her name on the standby list, a customer must provide the Authority with the following information:

(i) name;

(ii) size and license plate number of the vehicle that is traveling;

(iii) whether the customer already has a reservation to travel with that vehicle (and, accordingly, whether the customer is attempting to travel earlier than the time of the reserved trip) and, if so, the reservation number;

(iv) whether the customer will be using the Authority’s “drive- on/drive-off” services for the vehicle that is traveling; and

(v) even if the customer is not planning to use the Authority’s “drive-on/drive-off” services, whether he or she would elect to use them if it were to result in the customer’s vehicle being able to travel sooner on a “hazardous cargo” trip.

(c) Upon placing a customer’s name on the standby list, the Authority will provide the customer with a “standby slip” that will have the customer’s standby number and date on it. The standby slip will also have the address of the Authority’s website page on which the terminal’s current vehicle standby status will be posted (and stating which customers with specified standby numbers and dates should arrive at the terminal by a certain time), as well as the Authority’s telephone number that the customer alternatively can call to obtain the same information. Once a customer receives his or her standby slip:

(i) Nantucket terminal: Unless the customer is informed by the Authority that he or she should remain at the terminal for possible travel on the next scheduled trip, the customer must depart with his or her vehicle from the Nantucket terminal. (No spaces are available to accommodate standby vehicles at that terminal, and therefore there is no physical vehicle standby line there.) Thereafter, the customer must regularly check the Authority’s website and/or call the Authority’s telephone number set forth on his or her standby slip to find out what time the customer must return to the terminal for possible travel on a standby basis. It is the customer’s responsibility to return to the terminal at the appropriate time, and the customer’s failure to do so will result in the customer forfeiting his or her place and being dropped from the standby list.

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(ii) Hyannis terminal: If the terminal is then able to accommodate the parking of standby vehicles of customers using the Authority’s “drive-on/drive-off” services, the customer may leave his or her vehicle at the terminal and it will be transported by the Authority on a standby basis on the next available trip. Otherwise, the customer may depart with his or her vehicle from the terminal instead of waiting there for the next available trip. Thereafter, however, the customer must regularly check the Authority’s website and/or call the Authority’s telephone number set forth on his or her standby slip to find out what time the customer must return to the terminal potentially to travel on a standby basis. It is the customer’s responsibility to return to the terminal at the appropriate time, and the customer’s failure to do so will result in the customer forfeiting his or her place and being dropped from the standby list.

NOTE: During the months of July and August, customers whose vehicles are traveling on regular fares may not drop off their vehicles at the Hyannis terminal more than two calendar days in advance of their vehicle reservations. (As a result, a customer arriving with his or her vehicle at the Hyannis terminal during those months without a reservation will not be allowed to drop off the vehicle unless the terminal agent determines that it will be able to be shipped to Nantucket within twenty-four (24) hours.) However, this policy only applies to customers whose vehicles are traveling on regular fares; customers traveling on excursion fares will still be allowed to drop off their cars at the Hyannis terminal more than two calendar days in advance of their vehicle reservations.

(d) The Authority will update the standby information on its website and telephone voicemail greeting promptly after the departure of each trip. The website and telephone voicemail greeting will also inform customers when the next update is expected to be issued.

(e) Customers who are required to return to the terminal at a particular time are not guaranteed travel on the next scheduled trip, as the Authority generally will require more standby customers to return to the terminal than can be accommodated on the next trip, to take into account the possibility that other customers with reservations may fail to arrive for their reserved trips. Vehicles traveling on a

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standby basis are generally boarded onto vessels after vehicles with reservations, as space becomes available and in the order that such standby vehicles are on the standby list for each terminal (except as set forth in Section 4.2 or Section 4.3 above, or in Section 5.3 below).

(f) Once a customer is placed on the standby list, he or she must travel on the first trip that is available to the customer on a standby basis. Customers may not change their placement on the standby list except to forfeit their place and be placed at the end of the list. Nor may any customers exchange their places on the list with any other customers.

(g) Except for those customers who have forfeited their place on the standby list, customers whose vehicles have not been transported by the end of the day retain their place on the standby list for the following day. In addition, standby vehicles parked at the Hyannis terminal are not subject to any parking charges while they remain on the standby list.

5.3 Preferential Boarding of Certain Customers Traveling on Standby.

The Authority allows the preferential boarding of vehicles of certain customers traveling on standby in accordance with the following guidelines:

5.3.1 Persons Eligible for Preferential Boarding.

(a) Individuals with disabilities who are traveling on a standby basis and who must travel with their vehicles due to their disabilities are eligible for preferential boarding of their vehicles in accordance with this section. An individual with a disability may need to travel with his or her vehicle for a number of reasons, including but not limited to the need to travel with a motorized wheelchair or an adequate oxygen supply or other equipment that the individual needs due to the individual’s disability.

(b) Individuals who are traveling for medical reasons or their immediate family members or caregivers who are responsible for transporting them off-island or on-island for example, traveling off-island for the purpose of returning the individual to his/her island-based place of residence from a medical facility, are eligible for preferential boarding of their vehicles ahead of other standby customers, but only if (i) they have an urgent need to travel without additional delay because the individuals are in severe pain, distress or discomfort; or (ii) the failure to provide them with preferential boarding would

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create a potential for deterioration or instability in the individual’s physical condition or would otherwise jeopardize their care.

NOTE: Individuals traveling on standby for routine medical or dental care are not eligible for preferential boarding of their vehicles. Eligible customers may obtain “preferred spaces” for this purpose in accordance with the provisions of Part F, “Special Reservation Programs,” Section 3.5.

5.3.2 Authority Employees Responsible for Making Determinations.

The determination of whether a customer’s vehicle should receive preferential boarding under this policy shall be made by:

(a) the Supervisor on duty at the Mashpee Reservations Office, when preferential boarding is being requested during the Mashpee Reservations Office’s regular business hours; or

(b) the Terminal Agent, when a Supervisor on duty at the Mashpee Reservations Office is not available.

5.3.3 Preferential Boarding of Vehicles.

In order for the Authority to allow the preferential boarding of an individual’s vehicle under this policy, the individual or the individual’s attending physician or other person accompanying the individual, as the case may be, must contact the Mashpee Reservations Supervisor on duty or the Terminal Agent, as the case may be, to explain the need for the preferential boarding of the individual’s vehicle. The Supervisor or Terminal Agent shall then discuss with the individual, physician and/other person the alternatives for transportation and boarding that are available, and they shall agree upon the alternative most suitable for the situation presented. Suitable alternatives for transportation and boarding may include the following:

(a) Placing the individual’s vehicle at the front of the standby line, or in another preferential place in the standby line, with or without accompanying passengers;

(b) Boarding the individual’s vehicle within a designated time period; or

(c) Transporting the individual without his or her vehicle, after ascertaining that the individual will be provided with alternative means of transportation upon arrival, in which event arrangements may also be made to transport the individual’s vehicle at a later time.

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The Supervisor or Terminal Agent, in his or her discretion, may require the verification of any information submitted prior to, at the time of, or after the individual’s arrival at the terminal. At a minimum, the Supervisor or Terminal Agent shall record the name, address and telephone number of the individual needing preferential boarding, as well as the person making the request.

6. PASSENGER TRAVEL.

6.1 General Provisions Governing Passenger Travel.

6.1.1 The Authority at its sole judgment and discretion may refuse passage to anyone except on such conditions as may be required by the Authority. The Authority without notice may cancel any sailing or limit the number of passengers allowed on any sailing. The Authority may also refuse passage to individuals if the carrying capacity of a vessel is reached before sailing time.

6.1.2 Unless specifically authorized by the vessel’s Captain or the Terminal Agent, passengers are prohibited from walking onto or off of a vessel by means of the vehicle transfer bridge. Passengers must use the passenger ramp to board and disembark the vessel.

6.1.3 Passengers should always use caution when onboard a vessel, especially when it is underway or docking, as there may be sudden movements of the vessel due to changes in its course, wind and sea conditions, and the vessel coming in contact with the ferry slip or other object. For example:

(a) No passengers are allowed to stand on any stairs of a vessel or at the top of any vessel stairwell while the vessel is approaching or docking at a terminal.

(b) Passengers should listen to all of the announcements given over the vessel’s public address system and should follow all instructions of the vessel’s crew.

(c) Passengers should be careful when going through the vessel’s doorways. Not only should passengers be careful not to trip over the doors’ raised thresholds (which are higher to ensure that the vessel’s compartments are watertight), but they should also allow for the fact that the doors are of a heavier construction than doors in buildings. The doors can also move with more force due to the wind, especially when the seas are rough, and may close suddenly.

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(d) Passengers should be aware that outside decks and stairways may be slippery when wet, and they should refrain from running onboard the vessel.

(e) Passengers should not climb or sit on any of the vessel’s railings.

Passengers also should take extra care with children. All children under thirteen (13) years of age must be accompanied by an adult (a person 13 years of age or older) who is responsible for their care and conduct during the passage.

6.1.4 Passengers should properly dispose of any trash in containers and recyclable bins provided on the vessel. Passengers are not permitted to discard any item overboard and they should not leave any items unattended on an outside deck, as the wind may cause items to be blown overboard.

6.2 Passenger Boarding Priorities.

6.2.1 All passengers traveling in a vehicle with a reservation shall have boarding priority over passengers traveling in standby vehicles and walk-on passengers.

6.2.2 All passengers traveling in a vehicle traveling on a standby basis shall have boarding priority over walk-on passengers.

6.3 Baggage.

6.3.1 Passengers may travel with items of personal baggage at no additional charge, except for bicycles, surfboards (including wind surfboards) and other large objects for which a fare may be charged.

6.3.2 Many passengers prefer to have their luggage and other personal items with them in the passenger compartment instead of leaving them in the luggage carts. Under normal conditions, this does not pose any problem with the vessel’s safe operation and passenger comfort. But when the vessel is carrying a larger number of passengers, having these additional items in the passenger compartment could pose a challenge to the crew’s efforts to keep vessel aisles clear for emergency egress, to control loose items during inclement weather, and to ensure a sufficient amount of seating. Therefore, passengers may be required to utilize the luggage carts for their baggage at the discretion of the vessel’s Master. Below are guidelines that the Authority’s Masters generally follow, but nothing in these guidelines shall be construed to prevent a Master from imposing further requirements or

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more strictly limiting carriage or placement of baggage in the interest of the safety of the passengers, crew and vessel:

(a) Wheelchairs, Scooters and Baby Strollers: The Authority will attempt to accommodate all passengers traveling in or with wheelchairs, motorized scooters, baby strollers and other similar items to ensure their safety and comfort during the voyage.

(b) Personal Items: Passengers may take with them onto the vessel personal items such as brief cases, pocket books, laptop computers and small bags.

(c) Carry-On Bags: When passenger traffic is expected to be relatively light, passengers may also take with them onto the vessel small roll- on bags or luggage, medium-sized duffel bags, backpacks and items of similar size and dimensions. These are the same types of items that passengers are allowed to take with them onboard an airplane, generally with maximum dimensions of twenty-two (22) inches by fourteen (14) inches by nine (9) inches. When larger numbers of passengers are expected on a trip, the Master may determine that all such items cannot be accommodated onboard and, accordingly, may require that all roll-on bags be placed in the luggage carts or may restrict the number of roll-on bags that passengers can take onboard with them.

(d) Larger Items: Items larger than the items described above, as well as other items that are too heavy to be placed safely in the passenger area, should be placed in the luggage carts or otherwise stowed outside of the passenger compartment. These items include medium-to-large roll-on luggage, large duffel bags, coolers, cartons, sports equipment (e.g., golf clubs, boogie boards) and any other items that may create a hazard to passengers.

In any case, where the baggage items seem excessively heavy or there is any dispute as to their allowance, the Master may determine that they should be placed in the luggage carts. The total weight allowable (carry-on bags plus personal items) should not exceed twenty-five (25) pounds per passenger.

6.3.2 Firearms, other weapons, explosives, incendiaries and other dangerous articles will not be accepted for transportation except as specifically provided in Part J of this Handbook.

6.3.3 Storage of any baggage brought onboard a vessel is limited to the immediate vicinity of the person bringing the bag(s) onboard. Baggage may not be stored in escape aisles, corners, along bulkheads, or otherwise amassed to

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create a locally high fire load area or other safety hazard. No baggage may be left unattended or placed on any passenger seat or table.

6.3.4 The Authority shall not be liable for damage to or loss of personal baggage or property except in the case of the negligence of the Authority or its employees.

6.4 Pets.

6.4.1 Pets of a passenger are carried free, but must be accompanied by the passenger who is responsible for their care and conduct during the passage. Owners are required to clean up after their pets.

6.4.2 All pets must be kept on a leash or in a container, and must be under the control of the passenger at all times. Unruly pets must be escorted away.

6.4.3 No pets (except for service assistance animals) are allowed in any food service area.

6.4.4 No pets are allowed on any passenger seat or table.

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B. PASSENGER FARES

This Part B describes the Authority’s policies regarding the various types of passenger fares it offers to the traveling public. These include:

. The Authority’s conditions of travel that apply to all individual fares, and its eligibility requirements for certain discounted individual fares offered to children, senior citizens, individuals with disabilities, legally blind passengers, military service personnel, and island public officials traveling on official governmental business (Sections 1 and 2).

. The Authority’s eligibility requirements for its discounted regular group fares and student group fares, and the conditions applicable to travel under those fares (Section 3).

. The Authority’s eligibility requirements for its discounted ticket books, including its “Lifeline” 5-Ride Ticket Book, its “Ferry Pass” General 10-Ride Ticket Book, its High- Speed Ferry 10-Ride Ticket Book, its Commuter 46-Ride Calendar Month Ticket Book, its 5-Ride or 10-Ride Ticket Books, as applicable, for students, senior citizens, children and individuals with disabilities, as well as the conditions applicable to travel by means of any of those ticket books (Section 4).

. The circumstances in which the Authority is required to collect a “ferry passenger embarkation fee” in addition to each passenger fare charged to a customer (Section 5).

1. REGULAR INDIVIDUAL FARES.

1.1 Conditions Applicable to All Regular Individual Fares.

1.1.1 Tickets are transferable among individuals who are eligible for the fare charged. However, only the original purchaser of an unused ticket may receive a refund for the ticket in accordance with and subject to the provisions of Part I of this Handbook.

1.1.2 Each ticket is valid for one-way passage in either direction between the ports designated on the ticket.

1.1.3 Each ticket is valid for passage only if used within one (1) year from the date the ticket is sold.

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1.2 Types of Regular Individual Fares.

1.2.1 Adult Fares.

Individuals who are thirteen (13) years of age or over are charged the adult fare, unless eligible for a lower fare.

1.2.2 Children Fares.

Children who are five (5) years of age or over and under thirteen (13) years of age are charged the child fare, unless eligible for a lower fare, but must be accompanied by an adult (a person thirteen (13) years of age or older) who is responsible for their care and conduct during the passage.

1.2.3 Infants.

Children under five (5) years of age are carried free, but must be accompanied by an adult (a person thirteen (13) years of age or older) who is responsible for their care and conduct during the passage.

2. DISCOUNTED INDIVIDUAL FARES.

2.1 Conditions Applicable to All Discounted Individual Fares.

2.1.1 Tickets are nontransferable and valid only for transportation of the passenger for whom originally purchased.

2.1.2 Each ticket is valid for one-way passage in either direction between the ports designated on the ticket.

2.1.3 Each ticket is valid for passage only if used within one (1) year from the date the ticket is sold.

2.1.4 Eligible individuals may not purchase more than two (2) one-way discounted fare tickets at a time.

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2.2 Types of Discounted Individual Fares.

2.2.1 Senior Citizen Fares.

Individuals who are sixty-five (65) years of age or over are charged the senior citizen fare under the following conditions:

(a) The individual must be a year-round or seasonal resident of Martha's Vineyard or Nantucket, or a year-round resident of Barnstable or Falmouth. An individual is considered to be a “resident” of a particular location if he or she has a “settled place of abode” there.

(b) In order to receive this fare, an individual must provide either:

(i) a driver’s license or other government-issued identification showing his or her birth date (for proof of age) and residential address (for proof of residency in one of the above communities); or

(ii) his or her Senior Discount Travel Card issued by the Authority’s Group Sales Office.

The Authority’s Group Sales Office issues Senior Discount Travel Cards to eligible individuals upon application and appropriate documentation demonstrating their eligibility for this fare. Such documentation may include, but is not limited to, two or more telephone, water, electricity, cable/satellite or other similar utility bills issued to an individual within the last thirty days with an address in the appropriate community.

2.2.2 Individuals with Disabilities.

Individuals with disabilities may apply to the Authority’s Group Sales Office for a “Steamship Authority Transportation Access Pass” which, when approved and issued by the Authority, entitles the holder to a discounted fare upon its presentation with appropriate identification to a ticket seller. In order to be eligible for a “Steamship Authority Transportation Access Pass,” an individual must complete and submit an application for the pass in the form provided by the Authority (with certification from a licensed health care professional, if necessary) demonstrating that the individual:

(a) has a permanent physical disability that substantially limits one or more of the individual’s major life activities affecting the individual’s mobility or coordination; or

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(b) suffers from a serious, long-term mental illness, or is a current recipient of services through the Massachusetts Department of Mental Health or the Massachusetts Department of Developmental Services; or

(c) is a veteran with a disability rating of seventy percent (70%) or greater.

2.2.3 Legally Blind Passengers.

Any passenger who is legally blind travels for free with an identification from either the Massachusetts Commission for the Blind or a similar agency of another State. If the passenger is accompanied by a helper or companion, the helper or companion also travels for free.

2.2.4 Furlough Fares.

Individuals are charged the furlough fare under the following conditions:

(a) The individual must provide an active service card showing that he or she is serving in the United States Army, Navy, Air Force, Marine Corps or Coast Guard (including cadets, midshipmen and nurses of the above services), and also must be traveling at his or her own expense (either in uniform or in civilian clothes) while on official leave, furlough or pass.

(b) Reservists are also eligible for this furlough fare if they provide their Reserve card showing that they are members of a Reserve Unit and if they are also traveling in uniform at their own expense to or from non-paid reserve training activities (or, if not in uniform, they provide their orders to report for training activities demonstrating that they are traveling for this purpose).

2.2.5 Island Public Officials Traveling on Official Governmental Business.

Officials and regular employees of the towns and counties of Nantucket and Martha's Vineyard (but not consultants or other individuals doing business with a town or county who are not town or county officials or regular employees), when traveling on official governmental business, are charged fifty percent (50%) of the regular individual fare in accordance with and subject to the following conditions:

(a) Eligible individuals must present an approved travel voucher that:

(i) identifies the individual(s) who is traveling on behalf of the particular town or county;

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(ii) describes the purpose and reason for the trip in specific detail; and

(iii) is signed by an authorized official of the town or county on whose behalf the individual(s) is traveling.

For towns, the official who is authorized to sign the voucher is the Chairman of the town’s Board of Selectmen. For counties, the authorized official is the Chairman of the County Commissioners. (In the absence or incapacity of the Chairman, the voucher may be authorized and signed by any other member of the Board of Selectmen or any other County Commissioner, as the case may be.) The authorizing official must personally sign each voucher. Facsimile or signature stamps will not be accepted.

(b) The port embarkation fee (see Section 5 of this Part A) will apply to all individuals traveling under this fare.

(c) Charges for transportation provided under this fare will be billed to the respective town or county on a weekly basis and payment is due within thirty (30) days upon receipt of statement.

3. GROUP FARES.

3.1 Conditions Applicable to All Group Fares.

3.1.1 All individuals in the group must travel together on the same dates and trips from point of origin to destination and return.

3.1.2 One person in the group must be designated as the individual responsible for picking up the tickets for the group and for coordinating all other aspects of the group’s travel.

3.1.3 Group fare tickets may be purchased for either one-way passage or round- trip passage.

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3.2 Types of Group Fares.

3.2.1 Regular Group Fares.

Twenty (20) or more individuals must travel together as a group in order for the individuals to be eligible for a regular group fare.

3.2.2 Student and Youth Group Fares.

Individuals traveling as a group for student-related travel in connection with an event authorized by an Island school or a recognized Island youth group are charged the student group fare under the following conditions:

(a) The following individuals are eligible for a student group fare:

(i) Individuals for whom the involved school department is responsible financially.

(ii) Community competitive youth sports teams (such as little league, youth hockey, soccer, football and swim teams) for travel related to an event in which an Island team is participating.

(iii) Individuals traveling in Island Boy Scout, Girl Scout or 4-H Club groups.

(iv) Students (and adults accompanying them) traveling on a repetitive basis for academic, cultural, musical or athletic purposes.

Such individuals are generally limited to the student participants, coaches, chaperones, parents and spectators.

(b) Ten (10) or more individuals must travel together as a group in order for the individuals to be eligible for this student group fare; except that the Authority’s Group Sales Office in advance may authorize a particular student group to travel under a student group fare with less than ten (10) individuals. A list of all student groups that have received such advance authorization shall be maintained at all of the Authority’s terminals.

(c) The Authority may charge different fares for students and adults traveling under a student group fare; except that all individuals for whose travel a school department is financially responsible will be charged the applicable student fare.

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4. MULTIPLE-TICKET BOOKS/LIFELINE CARDS/EFERRY.

4.1 Conditions Applicable to All Ticket Books/Lifeline Cards.

4.1.1 Each ticket in a ticket book, or on a Lifeline Card, or in eFerryEFERRY is valid for one-way passage in either direction between the destinations designated in the ticket book/Lifeline Card/EFERRYeFerry.

4.1.2 The An entire ticket book must be presented at each time of passage, at which time a ticket shall be detached by the Authority ticket collector for one-way passage. Detached tickets will not be valid for passage.

4.1.3 The tickets in a ticket book on a Ferry Pass Card, a Lifeline Card, or in EFERRY eFerry or on a Lifeline Card are valid for passage only during the following time periods:

(a) The tickets in a 46-ride calendar month Lifeline Ferry Pass Card are valid for passage only during the calendar month for which the Lifeline Ferry Pass Card is sold.

(b) The tickets in any ticket book or Lifeline Card or Ferry Pass Card for passage between Woods Hole and Martha's Vineyard are valid for passage only within one two (12) years from the end of the month in which the ticket book or Lifeline Card is sold. Thus, a 10-ride Woods Hole/Martha’s Vineyard ticket book sold on June 1, 2020 will expire on June 30, 2021.

(c) There is no expiration date for tickets in 10-ride Ferry Pass ticket books for passage between Hyannis and Nantucket. The tickets in any 5-ride Lifeline Card for passage between Hyannis and Nantucket are valid for passage only within one (1) year from the end of the month in which the Lifeline Card is sold. Thus, a 5-ride Hyannis/Nantucket Lifeline Card sold on May 1, 2020 will expire on May 31, 2021.

4.2 Types of Ticket Books, Ferry Pass Cards and and Lifeline Cards.

4.2.1 General Ticket Books and Lifeline Cards.

(a) General ticket books, and Lifeline Cards, and Ferry Pass Cardss are valid for passage on the Authority’s traditional ferries (i.e., the larger passenger/vehicle ferries and the freight boats).

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(b) General Ferry Pass 10-ride ticket books are transferable, and multiple tickets from the same ticket book may be used for travel for different passengers on the same trip.

(c) General 5-ride Lifeline Cards are nontransferable and valid only for transportation of the passenger for whom originally purchased.

4.2.2 High-Speed Ferry 10-Ride Ticket Books.

(a) High-speed ferry 10-ride ticket books are valid for passage on the Authority’s high-speed ferry between Hyannis and Nantucket.

(b) High-speed ferry 10-ride ticket books are transferable, and multiple tickets from the same ticket book may be used for travel by different passengers on the same trip.

4.2.3 46-Ride Calendar Month Ticket Books and Lifeline Cards.

46-ride calendar month Lifeline Ferry Pass Cards are nontransferable and valid only for transportation of the passenger for whom originally purchased. There are also further discounted 46-ride calendar month Lifeline Ferry Pass Cards for secondary school students (but not for faculty members or college students), provided that they are purchased by a secondary school for use by individual students. They similarly are nontransferable and valid only for transportation of the secondary school students for whom they are originally purchased.

4.2.4 Student Ticket Books and Lifeline Cards.

Student ticket books, Ferry Pass Cards and Lifeline Cards are sold on the following conditions:

(a) Only individuals who are residents of Martha's Vineyard or Nantucket and who are full-time students at an off-island school are eligible for these ticket books, Ferry Pass Cards, and Lifeline Cards. In order to qualify, an individual must submit an application together with a copy of a valid student identification card, current semester course schedule, and verification of island residence.

(b) Student ticket books, Ferry Pass Cards and Lifeline Cards are nontransferable and valid only for transportation of the passengers for whom originally purchased.

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4.2.5 Senior Citizen Ticket Books, Ferry Pass Cards, and Lifeline Cards.

Senior citizen ticket books, Ferry Pass Cards, and Lifeline Cards are sold on the following conditions:

(a) Senior citizen ticket books, Ferry Pass Cards, and Lifeline Cards are sold only to those individuals who are eligible for a senior citizen fare under Section 2.2.1 of this Part B and who present the appropriate identification or Senior Discount Travel Card required under that section to receive a senior citizen fare. The Authority’s Group Sales Office issues Senior Discount Travel Cards to eligible individuals upon application and appropriate documentation demonstrating their eligibility for a senior citizen fare.

(b) Senior citizen Ferry Pass 10-ride ticket books are only transferable between the passengers who purchase the ticket books and their spouses who are similarly eligible for the senior citizen fare under Section 2.2.1 of this Part B. A maximum of two tickets from the same book may be used for travel on the same trip.

(c) Senior citizen 5-ride Lifeline Cards are nontransferable and valid only for transportation of the passengers for whom originally purchased.

(d) Eligible senior citizens may also purchase senior citizen 10-ride ticket books for travel on the Authority’s high-speed ferry. These senior citizen high-speed 10-ride ticket books have the same restrictions as the other senior citizen 10-ride ticket books.

4.2.6 Children Ticket Books and Lifeline Cards.

(a) Customers may purchase ticket books, Ferry Pass Cards and Lifeline Cards that may be used for passage by children who are five (5) years of age or over and under thirteen (13) years of age, provided they are accompanied by an adult (a person thirteen (13) years of age or older) who is responsible for their care and conduct during the passage.

(b) Tickets from children 10-ride ticket books are transferable among eligible children, and multiple tickets from the same ticket book may be used for travel by different eligible children on the same trip.

(c) Children 5-ride Lifeline Cards are nontransferable and valid only for transportation of the passengers for whom originally purchased.

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(d) Customers may also purchase children 10-ride ticket books that may be used for passage by children on the Authority’s high-speed ferry. These children high-speed 10-ride ticket books have the same restrictions as the other children 10-ride ticket books.

4.2.7 Ticket Books and Lifeline Cards for Individuals with Disabilities.

Ticket books and Lifeline Cards for individuals with disabilities are sold on the following conditions:

(a) Ticket books and Lifeline Cards for individuals with disabilities are sold only to those individuals who have a “Steamship Authority Transportation Access Pass” under Section 2.2.2 of this Part B.

(b) Ticket books and Lifeline Cards for individuals with disabilities are nontransferable and valid only for transportation of the passengers for whom originally purchased.

(c) Individuals with disabilities may also purchase 10-ride ticket books for travel on the Authority’s high-speed ferry. These high-speed 10- ride ticket books for individuals with disabilities have the same restrictions as the other 10-ride ticket books for individuals with disabilities.

4.2.8 High-Speed Ferry 10-Ride Ticket Books for Frequent Medical Travel.

Nantucket residents who require frequent medical treatment on the mainland may purchase high-speed ferry 10-ride ticket books at fifty percent (50%) of the price of the applicable 10-ride electronic ticket book price on the following conditions:

(a) The eligible resident must have at least ten five (105) scheduled medical appointments and any follow-up appointments within over a threetwelve-month period for the same medical condition.

(b) Reservations at this reduced price must be requested and arranged through the Reservation Manager or a Supervisor at the Mashpee Reservation Office.

(c) The eligible resident must provide supporting documentation from a doctor or medical office.

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5. EMBARKATION FEES.

Fares established by the Authority do not include any applicable “ferry passenger embarkation fee” imposed by the towns of Barnstable, Falmouth, Nantucket, Oak Bluffs and Tisbury under St. 2003, c.46, §129, as amended by St. 2003, c.55, §11 and St. 2004, c.65, §§44-47. In accordance with those statutes, a fifty cents ($.50) embarkation fee will be added to each passenger fare charged for travel originating in any of those towns; provided, however, that commuter excursion fares and school-related fares are exempt from this embarkation fee. For the purposes of determining whether a commuter excursion fare is exempt from the embarkation fee, "commuter fare" means any fare paid for through the purchase of a book of multiple tickets or through the Authority's Islands Preferred Excursion Program.

6. EFERRY OR OTHER ELECTRONIC TICKET DELIVERY SYSTEMS

As of 2020, the Authority was developing an eFerry ticketing program by which passenger tickets may be purchased and redeedmed via smartphone or other smart device (such as an Apple Watch, etc.). All policies in this Handbooks, including but not limited to fares, multiride cards, and refunds, remain in force regardless of the manner in which a passenger or vehicular ticket is delivered, be it electronically or via paper. The Authority is not responsible for any loss of tickets as the result of a malfunctioning electronic device or customer error in performing functions necessary with said device to redeem an Authority ticket. To redeem an eFerry ticket, customer(s) must have the electronic device on their person and it must be able to properly be read by the Authority’s electronic equipment. Any exceptions to that policy will be made by the Terminal Agent on a case-by-case basis and only after asensuring, in his or her opinion, that the customer has a valid ticket that is valid for travel.

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C. NON-COMMERCIAL VEHICLE FARES

This Part C describes the Authority’s policies regarding the various types of non- commercial vehicle fares it offers to the traveling public. These include:

. The Authority’s eligibility requirements for “non-commercial” vehicles for the purposes of such fares (Section 1).

. The Authority’s policies regarding its regular automobile fares (Section 2), its multiple- trip automobile ticket books (Section 3), and its passenger group vehicle fares (Section 5).

. The Authority’s eligibility requirements for its discounted excursion fares for non- commercial round-trip travel originating on one of the Islands, the items included in such excursion fares, and the special restrictions that apply to excursion fare travel (Section 4).

. The Authority’s eligibility requirements for its discounted fares for island public officials traveling on official governmental business, as well as the conditions applicable to travel under those fares (Section 6).

1. ELIGIBILITY.

1.1 Non-Commercial Vehicles.

The following vehicles are considered to be “non-commercial” vehicles for the purposes of this Part C:

1.1.1 Any passenger automobile (or other vehicle) that is less than twenty (20) feet in length, designed and equipped primarily for carriage of passengers and not registered as a commercial vehicle.

1.1.2 Any vehicle less than twenty-two (22) feet in length that is traveling on an excursion fare (see Section 4 of this Part C) regardless of whether it is registered as a commercial or non-commercial vehicle.

1.2 Motorcycles and Other Transported Items.

Fares for the transportation of motorcycles, bicycles, mopeds, golf carts, surfboards (including windsurfing boards) and other large items are established by the Authority at its discretion, and tickets for the transportation of such items can be purchased on the day of sailing at any ferry terminal.

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1.2.1 Any such item must be accompanied by an adult who is responsible for the item.

1.2.2 Fares for the transportation of such items do not include transportation for the persons accompanying them. Passenger fares are covered under Part B of this Handbook.

1.2.3 The fare for a motorcycle with a side car or trailer shall be greater than the fare for a motorcycle without a side car or trailer, in accordance with the fares established by the Authority.

1.3 Commercial Vehicles.

All other vehicles (namely, those vehicles not described in Section 1.1 or Section 1.2 above) are considered to be “commercial” vehicles regardless of whether they are registered as commercial or non-commercial vehicles. Vehicle fares for commercial vehicles are governed by the provisions of Part D of this Handbook.

2. REGULAR AUTOMOBILE FARES.

2.1 Items Included in the Regular Automobile Fare.

A regular non-commercial automobile fare is for the transportation of the vehicle and its load, if any. The fare does not include transportation for the vehicle’s driver or any other passengers.

2.2 Fares for Automobiles Are Based Upon Length.

The fare for an automobile whose length is greater than seventeen (17) feet shall be greater than the fare for an automobile whose length is seventeen (17) feet or less, in accordance with the fares established by the Authority.

2.3 Extended Loads Included in the Length of Vehicles.

An automobile’s length includes any load on the vehicle extending beyond the vehicle’s front or rear bumper (including but not limited to a bicycle rack).

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2.4 Additional Charge for Trailer.

The Authority charges an additional fare for any trailer towed by an automobile. Such additional fares are in such amounts as are established from time to time by the Authority, but the total fare for an automobile and trailer shall not exceed the applicable commercial vehicle fare for a vehicle of their combined length, as determined under the provisions of Part D of this Handbook.

2.5 Wide Loads and Wide Vehicles Charged Double the Applicable Fare.

Automobiles that are more than eight (8) feet, six (6) inches wide or are carrying loads that are more than eight (8) feet, six (6) inches wide are charged double the fare that is otherwise applicable to a vehicle of its length.

2.6 No Additional Charge Based Upon the Height of a Vehicle.

There shall be no additional charge based upon the height of a vehicle. However, vehicles over six (6) feet, six (6) inches in height may be restricted to particular vessels, trips, or spaces in vessels.

3. MULTIPLE-TRIP NON-COMMERCIAL AUTOMOBILE TICKET BOOKS.

The Authority issues multiple-trip ticket books for non-commercial vehicles in accordance with fares established by the Authority. Each ticket in a ticket book is valid for one-way passage in either direction between the destinations designated in the ticket book.

3.1 Additional Charge for Automobiles Longer than Twenty (20) Feet.

A customer using a multiple-trip automobile ticket book for the transportation of a non-commercial automobile whose length is greater than twenty (20) feet shall be required to pay an additional charge for each trip, in accordance with the fares established by the Authority.

3.2 Ticket Book Restrictions.

3.2.1 The use of a ticket book is restricted to no more than two passenger automobiles with common ownership whose registration numbers have been electronically recorded at the time of the ticket book’s issuance.

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3.2.2 Passengers traveling on a group fare may not pay for their vehicle’s transportation by means of a multiple-trip automobile ticket book.

3.3 Time Restrictions for the Use of a Ticket Book.

The tickets in a multiple-trip automobile ticket book are valid for transportation only during the following time periods:

3.3.1 The tickets in a 10-trip automobile ticket book for trips between Woods Hole and Martha's Vineyard are valid for transportation only within one (1) year from the date the ticket book is sold.

3.3.2 The tickets in a 6-trip automobile ticket book for trips between Hyannis and Nantucket that are sold at a price that reflects a discount from the Authority’s regular automobile fare for vehicles less than seventeen (17) feet in length are valid for transportation within two (2) years from the date the ticket book is sold.

3.3.3 The tickets in a 6-trip automobile tick book for trips between Hyannis and Nantucket that are sold at a price that reflects no discount from the Authority’s regular automobile fare for vehicles less than seventeen (17) feet in length have no expiration date.

4. EXCURSION FARES.

Non-commercial vehicles originating from either Martha's Vineyard or Nantucket and traveling on a round-trip basis are eligible for island-to-mainland round-trip excursion fares in accordance with and subject to the following conditions.

4.1 Eligibility Requirements.

4.1.1 Any resident of Martha's Vineyard or Nantucket is eligible for an “excursion” fare when traveling with a vehicle that is registered at an address on Martha's Vineyard or Nantucket to the resident or someone else in the resident’s household.

4.1.2 In order to receive this fare, an individual must:

(a) have his or her name be contained in the most recent official list prepared by a town on Nantucket or Martha's Vineyard pursuant to Mass. G.L. c. 51, §§ 4-7, of persons residing in that town (the town’s so-called “Street List”), or provide the Authority with a certificate

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from the Town Clerk of a town on Nantucket or Martha's Vineyard, pursuant to Mass. G.L. c. 50, § 8, certifying that, although the individual’s name was omitted from that town’s most recent Street List, the individual since has established his or her right to be listed in that Street List; and

(b) provide to the Authority a copy of his or her Massachusetts driver’s license or other government-issued identification showing his or her residential address on Martha's Vineyard or Nantucket; and

(c) provide to the Authority a copy of the registration of each vehicle that will be used by the individual for travel under an excursion fare, in accordance with the provisions of Section 4.4 below.

Upon approval of the above documentation, the Authority will issue the customer a Profile number which must be referred to when purchasing any ticket or making any reservation for travel on an excursion fare.

4.1.3 A customer will continue to be eligible for excursion fares until the end of the second calendar year after his or her Profile number is issued, at which time the customer must renew his or her Profile account. The Authority will notify each customer of the need to renew his or her Profile account at least one month prior to its expiration.

4.2 Items Included in an Excursion Fare.

4.2.1 Automobiles.

An excursion fare for an automobile is for the transportation of the vehicle and its load, if any. The fare also includes transportation for up to two (2) adults and two (2) children who are passengers in the automobile. The children must be twelve (12) years of age or younger. No additional passengers are included in the excursion fare.

4.2.2 Motorcycles.

An excursion fare for a motorcycle is for the transportation of the motorcycle and its load, if any. The fare also includes transportation for the motorcyclist and one other individual traveling with the motorcycle.

4.2.3 Livestock.

An excursion fare for a livestock vehicle or vehicle and livestock trailer combination is for the transportation of the vehicle, trailer, livestock, and up to two adults and two children who are passengers in the vehicle. The

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children must be twelve (12) years of age or younger. No additional passengers are included in this excursion fare.

4.3 Additional Charge for Longer Vehicles.

4.3.1 Automobiles Longer than Twenty (20) Feet.

The fare for a vehicle traveling on an excursion fare whose overall length (including any extended loads) is greater than twenty (20) feet (provided that it is less than twenty-two (22) feet) shall be greater than the fare for an automobile traveling on an excursion fare whose overall length is twenty (20) feet or less, in accordance with the fares established by the Authority.

4.3.2 Livestock Vehicles Longer than Forty (40) Feet.

The livestock excursion fare for vehicles or vehicle/trailer combinations whose overall length (including any extended loads) is forty (40) feet or greater shall be greater than the livestock excursion fare for vehicles or vehicle/trailer combinations whose overall length is less than forty (40) feet, in accordance with the fares established by the Authority.

4.4 Excursion Fare Travel Restricted to Specific Vehicles.

4.4.1 An eligible customer may travel on excursion fares only with those vehicles that are specifically listed in his or her Profile account as being registered at an address on Martha's Vineyard or Nantucket to persons living in the customer’s household, except that:

(a) a vehicle may be registered to the customer’s business with an island address if the customer provides the Authority with a copy of the current coverage selection page of the vehicle’s insurance policy;

(b) a vehicle may be registered to a company that is leasing the vehicle to the customer if the customer provides the Authority with copies of both the current coverage selection page of the vehicle’s insurance policy and the customer’s lease agreement for the vehicle showing the customer’s island residential address;

4.4.2 All vehicles traveling on excursion fares must be under twenty-two (22) feet overall length (including extensions). Vehicles eligible for excursion fare travel include automobiles, motorcycles (with or without side cars), livestock vehicles (with or without a trailer), campers and commercially registered vehicles under twenty-two (22) feet overall length. Vehicles under twenty-two (22) feet overall length traveling with a trailer may still

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be eligible for excursion fare travel, but if the combined overall length of the vehicle and trailer exceeds twenty-two (22) feet, the trailer will be charged a regular fare (see Section 2.4 of this Part C) in addition to the vehicle’s excursion fare.

4.4.3 Only the vehicle whose registration number appears on the excursion fare ticket will be allowed to travel on the trip for which the ticket was issued.

4.4.4 The individual traveling on an excursion fare must use the same vehicle on each segment of the round trip, unless the Authority specifically approves the customer’s use of a different vehicle on the trip’s return segment. Such approval generally will be granted if the different vehicle is a newly purchased vehicle (which must also be registered on the island) or is being used by the customer while his or her profiled vehicle is being repaired.

4.5 Special Restrictions Applicable to Excursion Fare Travel.

4.5.1 Travel on an excursion fare may not be used for commercial or business purposes. Accordingly, customers traveling on an excursion fare may not carry cargo, freight or passengers for commercial purposes in either direction.

4.5.2 Excursion fares are available only on a round-trip basis for trips originating on one of the Islands. Accordingly, the off-island portion of an excursion- fare ticket must be used in order for the return ticket to be valid.

4.5.3 Individuals traveling on an excursion fare must start and complete their travel within a 31-day period. In other words, they must make their return trip to the Island no later than thirty (30) calendar days after the date of the vehicle’s trip from the Island under the ticket’s first segment. Thus, if an individual leaves the Island on Friday, January 1st, he or she must return to the Island by Sunday, January 31st, in order for his or her return excursion- fare ticket to be valid. If an individual does not return to the Island within thirty (30) calendar days from his or her Island departure, the individual will be charged a regular automobile one-way fare to return to the Island in addition to the excursion fare the individual already has paid.

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4.6 Exceptions for College Students and Active Military Personnel.

4.6.1 An Island resident who has his or her own Profile account pursuant to which he or she is eligible to travel on an excursion fare and who is either:

(a) a college student who provides documentation to the Authority from the registrar’s office of his or her college verifying that he or she is a full time student for that current semester (which documentation must be provided each semester of the student’s college enrollment); or

(b) an individual in active military service who provides the Authority with an active service card showing that he or she is serving in the United States Army, Navy, Air Force, Marine Corps or Coast Guard

may travel on an excursion fare on a one-way basis (for one-half of the applicable round-trip excursion fare) regardless of the port of origin and regardless of whether he or she is returning to the Island earlier or later than thirty (30) calendar days from the date of the vehicle’s trip from the Island.

4.6.2 An Island resident may be issued a Profile account pursuant to which he or she will be eligible to travel on an excursion fare even though his or her vehicle is not registered on one of the Islands and he or she does not have a Massachusetts driver’s license or other government-issued identification showing his or her residential address on one of the Islands only if the Island resident provides documentation to the Authority verifying that he or she is a resident of the Island because he or she is stationed in active military service there. In these circumstances, the individual’s eligibility to travel on an excursion fare expires when he or she is no longer stationed in active military service on one of the Islands.

4.7 Special Excursion Fares for Multiple Medical Treatments.

Island residents who need to travel with their vehicles for frequent medical treatments or appointments on the mainland may also be eligible to travel on a special excursion fare (equal to fifty percent (50%) of the applicable automobile excursion rate, based on the time of the year and the size of the vehicle) under the following terms and conditions:

4.7.1 Only island residents who are already eligible for the automobile excursion rate and are profiled as such in the Authority’s reservation system are eligible for this special excursion fare.

4.7.2 Eligible island residents must have a series of at least five (5) scheduled medical appointments and any follow-up appointments within a twelve-

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month period ten scheduled medical treatments or appointments over a three-month period for the same medical condition.

4.7.3 Vehicle reservations at this special excursion fare must be requested and arranged through the Reservation Manager or a supervisor at the Mashpee Reservation Office.

4.7.4 Supporting documentation from a doctor or medical office must be provided at the time of the request for this special excursion fare.

4.7.5 The Reservation Manager and supervisors are allowed, at their discretion, to make other special travel arrangements upon request for those island residents requiring frequent treatments or appointments on the mainland for the same medical condition.

4.8 Inter-Island Motorcycle Excursion Fare.

Eligible island residents who wish to travel by motorcycle on a round-trip basis between the islands may travel on an inter-island motorcycle excursion fare that represents the combined total of the motorcycle excursion fares for each island. Individuals traveling on this excursion fare must start and complete all four segments of their travel within a 31-day period.

5. PASSENGER GROUP VEHICLE FARES.

Passengers who are traveling together under an Authority-issued group fare pursuant to Part B, Section 3 of this Handbook may also make reservations, if available, for the vehicle(s) in which they are traveling at the applicable passenger group vehicle fare established by the Authority in accordance with and subject to the following conditions:

5.1 All passenger group vehicle fare reservations must be made through the Authority’s Group Sales Office.

5.2 Passenger group vehicle fare reservations may not be made for more than one vehicle per every five passengers traveling in the group.

5.3 Customers may make passenger group vehicle fare reservations only for automobiles, pick-up trucks and panel vans.

5.4 The vehicles traveling on the passenger group vehicle fare must travel on the same trips as the group of passengers for whom the reservation is made, except when scheduled and approved by the Authority’s Group Sales Office to travel independently.

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5.5 Passenger group vehicle fares do not include transportation for the vehicle’s driver or any other passengers.

6. ISLAND PUBLIC OFFICIALS TRAVELING ON OFFICIAL GOVERNMENTAL BUSINESS.

Vehicles traveling on official governmental business of a town or county of Nantucket or Martha's Vineyard will be charged fifty percent (50%) of the full regular vehicle fare in accordance with and subject to the following conditions:

6.1 Eligibility Requirements for Fare.

6.1.1 Officials and regular employees of the towns and counties of Nantucket and Martha's Vineyard must be traveling with the vehicle on official governmental business. Consultants or other individuals doing business with a town or county who are not town or county officials or regular employees are not eligible for this fare.

6.1.2 Freight shipments of a town or county of Nantucket or Martha's Vineyard (including but not limited to road salt, cold patch, and other similar shipments) shall be eligible for this fare, provided that such shipments are being transported in a town- or county-owned vehicle.

6.1.3 Vehicles traveling under this fare may not use any preferred spaces. Any vehicle that does use a preferred space shall be charged the applicable full regular vehicle fare.

6.2 Items Included in an Island Governmental Fare.

An Island governmental fare is for the transportation of the vehicle and its load, if any. The fare does not include transportation for the vehicle’s driver or any other passengers. Passenger fares for officials and regular employees of the towns and counties of Nantucket and Martha's Vineyard traveling with the vehicle on official governmental business are covered under Section 2.2.5 of Part B of this Handbook.

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6.3 Requirement of Approved Travel Voucher.

Eligible individuals must present an approved travel voucher that:

6.3.1 identifies the name and title of each individual who is traveling in the vehicle on behalf of the particular town or county;

6.3.2 describes the purpose and reason for the trip in specific detail; and

6.3.3 is signed by an authorized official of the town or county on whose behalf the individual(s) is traveling.

For towns, the official who is authorized to sign the voucher is the Chairman of the town’s Board of Selectmen. For counties, the authorized official is the Chairman of the County Commissioners. (In the absence or incapacity of the Chairman, the voucher may be authorized and signed by any other member of the Board of Selectmen or any other County Commissioner, as the case may be.) The authorizing official must personally sign each voucher. Facsimile or signature stamps will not be accepted.

6.4 Billing and Terms of Payment.

Charges for vehicles transported on an Island governmental fare will be billed to the respective town or county on a weekly basis and payment is due within thirty (30) days upon receipt of statement.

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281 August 2020 Port Council Meeting Part D – Commercial Vehicle Fares

D. COMMERCIAL VEHICLE FARES

This Part D describes the Authority’s policies regarding the various types of commercial vehicle fares it offers to the traveling public. These include:

. The Authority’s definition of a “commercial” vehicle (Section 1).

. The Authority’s policies regarding its regular commercial vehicle fares (Section 2).

. The Authority’s eligibility requirements for its special commercial vehicle fares, the items included in such special fares, and the special restrictions that apply to travel under those fares (Section 3).

1. DEFINITION OF A “COMMERCIAL” VEHICLE.

The following vehicles are considered to be “commercial” vehicles for the purposes of this Part D:

1.1 Any vehicle registered as a commercial vehicle;

1.2 Any vehicle twenty (20) feet or more in length (including trucks, pickup trucks, panel vans, tractor trailers, and truck/trailer combinations in which the trailer is connected by a disk, hook or ring hitch) regardless of whether it is registered as a commercial or non-commercial vehicle;

provided, however, that vehicles under twenty-two (22) feet in length traveling on excursion fares are not considered to be “commercial” vehicles even though they may be registered as such.

2. REGULAR COMMERCIAL VEHICLE FARES.

Subject to the provisions of Section 3 below regarding special commercial vehicle fares for certain vehicles and vehicles carrying certain commodities, commercial vehicles are eligible for regular commercial vehicle one-way fares in accordance with and subject to the following conditions.

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2.1 Items Included in the Regular Commercial Vehicle Fare.

A regular commercial vehicle fare is for the transportation of the vehicle and its load, if any. The fare does not include transportation for the vehicle’s driver or any other passengers.

2.2 Fares for Commercial Vehicles Are Based Upon Length.

Commercial vehicles whose length is less than seventeen (17) feet are charged the same regular fare. Commercial vehicles whose length is seventeen (17) feet or more are charged greater fares than commercial vehicles whose length is seventeen (17) feet or less, based upon the length of the vehicle (in an initial three-foot increment, then in five-foot increments for vehicles up to seventy (70) feet in length, and in one-foot increments thereafter).

2.3 Extended Loads Included in the Length of Vehicles.

A commercial vehicle’s length includes any load on the vehicle extending beyond the vehicle’s front or rear bumper (including but not limited to a bicycle rack).

2.4 Additional Charge for Trailer.

The Authority charges an additional fare for any trailer towed by a commercial vehicle. Such additional fares are in such amounts as are established from time to time by the Authority, but the total fare for a vehicle and trailer shall not exceed the applicable commercial vehicle fare for a vehicle of their combined length.

2.5 Wide Loads and Wide Vehicles Charged Double the Applicable Fare.

Vehicles that are more than eight (8) feet, six (6) inches wide or are carrying loads that are more than eight feet, six (6) inches wide are charged double the fare that is otherwise applicable to a vehicle of its length.

2.6 No Additional Charge Based Upon the Height of a Vehicle.

There is no additional charge based upon the height of a vehicle. However, vehicles over six (6) feet, six (6) inches in height may be restricted to particular vessels, trips, or spaces in vessels.

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3. SPECIAL COMMERCIAL VEHICLE FARES.

The Authority has established special commercial vehicle fares for certain vehicles and vehicles carrying certain commodities as set forth in the categories below. Unless otherwise stated within a particular category, the special fares for such vehicles are still increased based upon their length and width in accordance with and subject to the conditions set forth in Section 2 above.

3.1 Ambulances.

An ambulance fare includes the transportation of the vehicle, the vehicle’s driver, one attendant and the patient. Ambulance fares also increase based upon the vehicle’s length, and are in such amounts as are established from time to time by the Authority.

3.2 Hearses.

A hearse fare includes the transportation of the vehicle, the vehicle’s driver, and the decedent. Hearse fares do not increase based upon the vehicle’s length, but are in such amounts as are established from time to time by the Authority.

3.3 Buses.

A general bus fare includes the transportation of the vehicle and the vehicle’s driver. If the bus is a tour bus, the fare also includes the transportation of one escort. General bus fares are in such amounts as are established from time to time by the Authority.

3.4 School Buses.

A school bus fare includes the transportation of the vehicle and the vehicle’s driver. School bus fares are in such amounts as are established from time to time by the Authority.

3.5 Camping Vehicles.

The fare for a camping vehicle (including campers, truck-mounted campers, and mobile homes with built-in provisions for sleeping and cooking facilities) is only for the transportation of the vehicle and its load, if any. The fare does not include transportation for the vehicle’s driver or any other passengers. Camping vehicle fares are in such amounts as are established from time to time by the Authority.

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3.6 Livery Vehicles.

The fare for a livery vehicle (a vehicle designed and equipped primarily for the carriage of passengers and registered as a commercial or livery vehicle) is only for the transportation of the vehicle and its load, if any. The fare does not include transportation for the vehicle’s driver or any other passengers. Livery vehicle fares are in such amounts as are established from time to time by the Authority.

3.7 Vehicles Carrying the United States Mail.

The fare for a vehicle carrying the United States Mail under contract with the United States Postal Service is only for the transportation of the vehicle and its load, if any. The fare does not include transportation for the vehicle’s driver or any other passengers. Fares for vehicles carrying the Unites States Mail are in such amounts as are established from time to time by the Authority or provided for by contract with individual customers and/or the United States Postal Service.

3.8 Vehicles Carrying Livestock.

The fare for a vehicle carrying livestock is only for the transportation of the vehicle and its load. The fare does not include transportation for the vehicle’s driver or any other passengers. Fares for vehicles carrying livestock are in such amounts as are established from time to time by the Authority. In order to qualify for this fare, all livestock shipments must comply with the following conditions:

3.8.1 The shipments must be properly contained and covered so as to prevent spillage/leakage and to minimize odors.

3.8.2 The customer must provide a driver who shall be required to remain with the vehicle at all times.

3.8.3 The customer shall be responsible for any and all clean-up or washdown charges associated with any accidental spillage or leakage.

3.8.4. The customer’s reservations may be restricted or consolidated, at the Authority’s sole discretion, to certain vessels and/or times of travel in order to minimize any inconvenience to the general public or other full-fare paying shippers.

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3.9 Vehicles Carrying Fresh Fruits, Vegetables, Fish or Shellfish.

The fare for a vehicle traveling from Nantucket or Martha's Vineyard carrying fresh fruits and/or vegetables grown on the Island or fresh fish and/or shellfish (shucked or in the shell) to the mainland is only for the transportation of the vehicle and its load. The fare does not include transportation for the vehicle’s driver or any other passengers.

3.9.1 Eligibility Requirement. In order to receive this fare, the vehicle must be carrying a minimum of 500 pounds of fresh fruits and/or vegetables grown on the Island or fresh fish and/or shellfish.

3.9.2 Special Restrictions Applicable. This fare applies to both segments of a round trip originating on the Island unless the vehicle carries freight to the Island on its return segment. If the vehicle does carry freight to the Island, it shall be charged the full regular commercial vehicle fare for that return segment of the round trip. In order to qualify for this fare, all shipments must meet the following terms and conditions:

(a) The shipments must be properly contained and covered so as to prevent spillage/leakage and to minimize odors.

(b) Unless specifically approved by the Authority in advance, the customer must provide a driver who shall be required to remain with the vehicle at all times.

(c) The customer shall be responsible for any and all clean-up or washdown charges associated with any accidental spillage or leakage.

(d) The customer’s reservations may be restricted or consolidated, at the Authority’s sole discretion, to certain vessels and/or times of travel in order to minimize any inconvenience to the general public or other full-fare paying shippers.

3.9.3 Minimum Fare to be Charged. Fares for vehicles carrying fresh fruits and/or vegetables grown on the Island or fresh fish and/or shellfish to the mainland are in such amounts as are established from time to time by the Authority, but in no event shall a fare charged to a vehicle in this category be less than a full regular commercial vehicle fare for a vehicle whose length is seventeen (17) feet or more but less than twenty (20) feet.

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3.10 Vehicles Carrying Recyclable Materials or Solid Waste.

The fare for a vehicle traveling from Nantucket or Martha's Vineyard carrying recyclable materials or solid waste to the mainland is only for the transportation of the vehicle and its load, and applies only to the one-way segment of the vehicle’s trip from the Island to the mainland. The fare does not include transportation for the vehicle’s driver or any other passengers.

3.10.1 Different Fares Based Upon Types of Shipments. Fares for vehicles carrying recyclable materials or solid waste to the mainland are in such amounts as are established from time to time by the Authority, but the Authority shall establish different rates of fare for such vehicles based upon whether they are carrying recyclable materials or carrying solid waste.

3.10.2 Special Restrictions Applicable. In order to qualify for this fare, all recyclable material and solid waste shipments must meet the following terms and conditions:

(a) The shipments must be authorized in writing by the sponsor of a refuse or recycling program recognized by an Island town or county.

(b) The shipments must be properly contained and covered so as to prevent spillage/leakage and to minimize odors.

(c) Unless specifically approved by the Authority in advance, the customer must provide a driver who shall be required to remain with the vehicle at all times.

(d) The customer shall be responsible for any and all clean-up or washdown charges associated with any accidental spillage or leakage.

(e) The customer’s reservations may be restricted or consolidated, at the Authority’s sole discretion, to certain vessels and/or times of travel in order to minimize any inconvenience to the general public or other full-fare paying shippers.

3.11 Vehicles Carrying Hazardous Materials.

The fare for a vehicle carrying hazardous materials is only for the transportation of the vehicle and its load, if any. The fare applies to any vehicle designed to carry hazardous materials even though the vehicle may be empty on one segment of its trip. The fare does not include transportation for the vehicle’s driver or any other passengers. Fares for vehicles carrying hazardous materials are in such amounts as are established from time to time by the Authority. For the special restrictions that

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288 August 2020 Port Council Meeting Part E - Reservations

E. RESERVATIONS

This Part E describes the Authority’s various policies regarding reservations for both non- commercial vehicles and commercial vehicles on all of its vessels and routes, as well as for passengers traveling on the Authority’s high-speed ferry between Hyannis and Nantucket. (The Authority does not accept passenger reservations for passengers traveling on any of its large passenger/vehicle ferries or freight boats.) These policies include:

. General reservation information, including how to contacting the Authority to make a reservation and what a Profile Account is (Section 1).

. How to mMakeing, change changing and cancelling passenger reservations for passengers traveling on the Authority’s high-speed passenger ferry between Hyannis and Nantucket, and the Authority’s policy regarding unused passenger reservations that are neither changed nor canceled in accordance with the applicable restrictions (Section 2).

. How to Mmakeing vehicle reservations (Section 3). That section also includes a description of the Authority’s wait listing capabilities.

. How to makeMaking vehicle reservations for customers with disabilities or who are traveling to medical appointments, and for other special circumstances, such as when vehicles need to be transported without drivers or need to be towed or pushed, and for customers traveling in rental cars (Section 4).

. How to changeChanging or cancelling vehicle reservations, and the restrictions applicable to any such changes and cancellations (Sections 5 and 6).

. The Authority’s policy regarding unused vehicle reservations that are neither changed nor canceled in accordance with the applicable restrictions (Section 7).

This Part E does not address the Authority’s “stand-by” travel policies, which are described in Part A of this Handbook, entitled “Terms and Conditions of Travel.” Nor does this Part E address the Authority’s parking policies, which are described in Part G of this Handbook.

1. GENERAL RESERVATION INFORMATION.

1.1 Vehicles on All Vessels and High-Speed Ferry Passengers.

Customers may make reservations for both non-commercial vehicles and commercial vehicles on all of the Authority’s vessels and routes, as well as for passengers traveling on the Authority’s high-speed ferry between Hyannis and Nantucket. Part E: 1 Last Revised: March 20, 2018

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1.2 Motorcycles, Other Items, and Passengers on Traditional Ferries.

1.2.1 Persons traveling in a group with of five (5) or more motorcycles are encouraged to make reservations to ensure that there will be sufficient space for their motorcycles on the vessel.

1.2.2 Otherwise, motorcycles, bicycles and mopeds do not require reservations, and tickets for their transportation can be purchased on the day of sailing at any ferry terminal. However, they will be transported only on a space available basis.

1.2.3 Passengers traveling on any of the Authority’s large passenger/vehicle ferries or freight boats similarly do not require reservations, and tickets for their transportation can be purchased on the day of sailing at any ferry terminal. Generally, the Authority’s large passenger/vehicle ferries have more than sufficient capacity for all passengers who arrive to travel on a particular trip. The Authority’s freight boats, however, have limited passenger capacity and may sometime be prohibited from carrying any passengers at all due to the commodities being carried on a particular trip.

1.3 Contacting the Authority to Make a Reservation.

Reservations may be requested by any of the following means:

1.3.1 By the internet at "http://www.steamshipauthority.com".

1.3.2 By mail, addressed to the Authority’s Reservation Office, 509 Falmouth Road, Suite 1-C, Mashpee, MA 02649.

1.3.3 By telephone, at any of the following telephone numbers during regular office hours:

(a) Mashpee Reservation Office for all reservations – (508) 477-8600

(b) Mashpee Reservation Office for high-speed ferry passenger reservations - (508) 495-3278 (FAST)

(c) Martha's Vineyard Reservation Call Center – (508) 693-9130

(d) Toll-Free from Nantucket – (508) 228-3274

(e) Vehicle Day of Sailing Reservations (available only on “Vehicle Reservation Only” days) – (508) 477-7447

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(f) TTY for the hearing impaired – (508) 540-1394

(g) Special Telephone Line for Freight Trucks – (508) 477-8715

1.3.4 In person during regular office hours at the Authority’s Reservation Office, 509 Falmouth Road, Suite 1-C, Mashpee, MA 02649. Customers may also make reservations in person at any of the Authority’s ferry terminals whenever those terminals are open, except that high-speed ferry passenger reservations may be made only at the Authority’s Hyannis and Nantucket terminals.

1.4 Customer Accounts.

1.4.1 A customer who provides the Authority with certain identifying information will be issued a “User Name” and “Profile Number” for his or her vehicle reservations and high-speed passenger ferry reservations that the customer can then refer to when purchasing vehicle or high-speed passenger ferry tickets or making vehicle or high-speed passenger ferry reservations. Customers who provide additional documentation demonstrating their eligibility for one or more of the Authority’s special vehicle reservation programs will also be able to use their User Name and Profile Number to make reservations under those programs.

1.4.2 A customer will continue to have the same Profile Number. A customer who is originally eligible for one or more of the Authority’s special vehicle reservation programs at the time he or she was issued a Profile Number will continue to be eligible for those programs until the Authority notifies the customer of the need to renew his or her Profile account at least one month prior to its expiration.

1.4.3 A customer who provides the Authority with a valid email address will be able to request reservations over the internet at the Authority’s website, www.steamshipauthority.com. Customers who provide a valid email address may request a “PIN” for internet access to their reservation information. Any customer who has a Profile account and PIN or who has a User Name and PIN may elect to choose his or her own unique and customized “User Name and Password” that can then be used to gain internet access to his or her Profile account. This option is only available at the Authority’s website, www.steamshipauthority.com.

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2. HIGH-SPEED PASSENGER FERRY RESERVATIONS.

2.1 When to Make Reservations.

Customers may make passenger reservations for the Authority’s high-speed passenger ferry at any time of the year to the extent the Authority has made such reservations available. Reservations can be made up to two hours before the scheduled departure.

2.2 Information Needed to Make a Reservation.

Customers must provide the following information in order to make a reservation:

2.2.1 The following information regarding the person traveling under the reservation: Name; Address; and Telephone number. (The customer may also provide this information by providing his or her Profile Number, see Section 1.4, above.)

2.2.2 The following information regarding each segment of the trip being reserved: Date; Time; Departure Terminal; and Destination Terminal.

2.3 Paying for a Reservation.

2.3.1 A customer must pay for a reservation in full at the time of booking.

2.3.2 Acceptable methods of payment (in United States currency only) include all acceptable methods of payment for a ticket or ticket book listed in Part I of this Handbook, as well as tickets from a valid Authority 10-Ride High- Speed Ferry Ticket Book.

2.4 Changing Reservations.

A customer may change a reservation by telephone or in person through the Authority’s Reservation Office at any time during the Reservation Office’s normal operating hours, or at any time on the Authority’s website, or in person at the Authority’s Nantucket terminal or Hyannis terminal whenever those terminals are open.

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2.5 Canceling Reservations.

A customer may cancel a reservation at any time during the Reservation Office’s normal operating hours (or any time on the Authority’s website), in which event the value of the canceled reservation will be fully refunded to the customer if the reservation is canceled at least two hours before the scheduled departure. (For the cancellation of a reservation that had been paid for with a ticket from a 10-trip ticket book, the Authority will return a ticket to the customer’s ticket book for future use in lieu of a refund.)

2.6 Unused Reservations.

In the event a reservation is neither canceled nor changed with advance notice, nor used as reserved, no refund shall be issued for the unused reservation. However, the ticket shall remain valid for travel on a standby basis if it is used within two (12) years from the date the reservation was originally booked. In the event the reservation was paid for with a ticket from a 10-trip ticket book, upon the customer’s request the Authority will return a ticket to the customer’s ticket book for future use in lieu of a refund, and there will be no onetwo-year limitation on the ticket’s validity.

3. MAKING VEHICLE RESERVATIONS.

3.1 When to Make Reservations.

3.1.1 The Authority has a “Bulk Freight Reservation” program governing when customers eligible for that program may begin making reservations for commercial vehicles traveling under that program. (See Part F, entitled “Special Reservation Programs,” Section 2, for the rules governing the Authority’s Bulk Freight Reservation Program.)

3.1.2 The Authority has the following special reservation programs governing when customers eligible for those programs may begin making reservations for both non-commercial and commercial vehicles (with certain restrictions) traveling under those programs:

(a) The Preferred Space Program, which governs when eligible customers may begin making reservations for certain vehicle spaces for trips originating on one of the Islands. (See Part F, entitled “Special Reservation Programs,” Section 3, for the rules governing the Authority’s Preferred Space Program.)

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(b) The “Headstart” Program, which governs when eligible customers may begin making vehicle reservations for trips during the Authority’s Summer Schedule. (See Part F, entitled “Special Reservation Programs,” Section 4, for the rules governing the Authority’s Headstart Program.)

3.1.3 The Authority has a “Tour Bus Reservation” program governing when customers eligible for that program may begin making reservations for tour buses traveling on the Woods Hole/Martha’s Vineyard route under that program. (See Part F, entitled “Special Reservation Programs,” Section 5, for the rules governing the Authority’s Tour Bus Reservation Program.)

3.1.4 Except as restricted by the Bulk Freight Reservation Program, the Preferred Space Program, the Headstart Program and the Tour Bus Reservation Program, customers may make reservations for commercial and non- commercial vehicles at any time of the year to the extent the Authority has made spaces available for such commercial and noncommercial vehicle reservations. Reservations can be made up to one hour before the requested scheduled departure.

3.2 Reservation Restrictions.

3.2.1 Reservations are subject to fare restrictions and are non-transferable:

(a) Non-commercial vehicle reservations are subject to the provisions of Part C, they must be made in the name of the person traveling with the vehicle, and they are non-transferable from one person to another once made.

(b) Commercial vehicle reservations are subject to the provisions of Part D, they must be made in the name of the individual or entity who is registered as the owner of the vehicle, and they are non- transferable from one person or entity to another once made.

3.2.2 Reservations must be made for a particular vehicle (see Section 3.3.3, below), and inaccurate information about the vehicle traveling could result in the reservation being invalid for transportation and/or the imposition of additional charges (see Section 3.3.4, below).

3.3 Information Needed to Make a Reservation.

In order to make a reservation for a vehicle, a customer must provide the following information (some of which may be provided by means of the customer’s User Name or Profile Number, see Section 1.4, above):

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3.3.1 The following information regarding the person traveling under the reservation (for non-commercial vehicles) or the owner of the vehicle for which the reservation is made (for commercial vehicles): (a) Name; (b) Address; and (c) Telephone number.

3.3.2 The following information regarding each segment of the trip being reserved: (a) Date; (b) Time; (c) Departure Terminal; and (d) Destination Terminal.

3.3.3 The following information regarding the vehicle traveling under the reservation:

(a) The vehicle’s license plate number (and state of registration), unless the vehicle is a commercially registered truck twenty (20) feet or more in length;

(b) The vehicle’s year, make and model, unless the vehicle is a commercially registered truck twenty (20) feet or more in length;

(c) The vehicle’s overall height (including luggage racks and anticipated luggage) and, if the height exceeds six (6) feet, six (6) inches, the vehicle’s load;

(d) The vehicle’s overall length (including any extensions such as bike or luggage racks and anticipated bicycles and/or luggage);

(e) Whether the vehicle will be pulling a trailer and, if so, the trailer’s height and the combined length of the vehicle and the trailer (including the hitch connection); and

(f) Further, if the vehicle is carrying any freight, the type of commodity being carried (see Section 4.7 below) and the width of the vehicle and the vehicle’s trailer, if any.

3.3.4 The provision of inaccurate information (particularly the length and height of the vehicle traveling) may result in the Authority reserving insufficient space for the customer’s vehicle on the vessel, which in turn may result in the reservation being invalid for transportation and/or the imposition of additional charges. In addition, a customer arriving at the terminal with a different vehicle (even if the same size or smaller) than the vehicle for which the reservation was made will be required to provide a valid identification to establish that he or she is the person for whom the reservation has been made.

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3.4 Paying for a Reservation.

3.4.1 A customer making a reservation on the day of sailing must pay for the reservation in full at the time of booking. Otherwise, a customer must pay for a reservation in full within five (5) calendar days after the reservation is made or, if the reservation falls within those five (5) days, the day prior to sailing. If payment is not made as required, the reservation will be automatically canceled.

3.4.2 Acceptable methods of payment (in United States currency only) include all acceptable methods of payment for a ticket or ticket book listed in Part I of this Handbook, as well as tickets from a valid Authority 10-Trip Automobile Ticket Book for non-commercial vehicle reservations only.

3.5 Prepaying Fares for Passengers Traveling with Vehicles.

3.5.1 At the customer’s option, the fares for passengers traveling with the vehicle may also be prepaid, although customers who are unsure of the number of passengers may want to pay the fare for the vehicle’s driver only and purchase additional passenger tickets upon arrival at the ferry terminal.

3.5.2 Passenger fares are covered under Part B of this Handbook, except that passenger fares for eligible customers traveling on excursion fares are covered under Part C, Section 4.2.

3.6 Wait Listing.

The Authority’s reservation system has a “wait list” capability. If a customer is unable to make a reservation for the date or time desired, the customer may also request that the reservation be moved to other dates and/or times if they become available. “Wait list” requests are honored on a first come, first served basis, except for “wait list” requests for spaces allocated for commercial vehicles that are more than twenty (20) feet in length, which are honored in the following order:

1st: waitlist requests from trucks carrying hazardous cargo or trash are given priority over all other waitlist requests regardless of the size of the vehicle and regardless of the order in which the trucks carrying other commodities were placed on the waitlist, due to the limited number of hazardous and open-freight-deck trips available for trucks carrying hazardous cargo or trash;

2nd: for travel originating in Hyannis on the Nantucket route only, waitlist requests from food trucks making multiple stops on Nantucket are then given priority over all remaining waitlist requests regardless of the size of

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the vehicle and regardless of the order in which trucks carrying other commodities were placed on the waitlist; and

3rd: waitlist requests from all other trucks are then fulfilled based upon the size of the vehicle in the order in which the trucks were place on the waitlist without regard to the commodity the truck is carrying. Thus, if a 4-space opening occurs, a 4-space truck would be given that reservation (in the order it was placed on the waitlist) before that opening is made available for any remaining 3-space trucks.

Except as provided in Section 3.6.2 below, “wait list” requests are automatically processed up to forty-eight (48) hours in advance of the reserved date of departure as spaces become available due to other customers’ reservation cancellations or changes. (For example, wait list requests for customers whose reservations are for July 4th are no longer processed after midnight on July 1st.)

Important: Once a “wait list” change is made to a customer’s reservation, the Authority can only honor the reservation as changed, and cannot honor the customer’s original reservation. Accordingly, customers need to call the Authority’s Reservation Office or view their online vehicle reservations on the Authority’s website up to forty-eight (48) hours prior to their scheduled sailing to confirm whether any “wait list” changes have been made to their reservation.

3.6.1 When a customer’s reservation is changed to one of his or her “wait list” requests:

(a) if the Authority has the customer’s email address, it will email the customer a notice of the change, or

(b) if the Authority does not have the customer’s email address, it will mail the customer a notice of the change unless the change occurs one week or less before the scheduled sailing, in which event the Authority will telephone the customer to confirm the change; or

(c) if the Authority has the customer’s cell phone number and the customer chooses to be notified of such changes by text messages, the Authority will notify the customer of the change by sending the customer a text message.

Changes to a customer’s reservation resulting from the “wait list” can also be viewed from the Authority’s website, www.steamshipauthority.com, on the dashboard under my purchases.

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3.6.2 No changes to a customer’s reservation will result from a “wait list” request 48 hours or less before the scheduled day of sailing; provided, however, that the Authority will continue to process “wait list” requests for vehicles up until 12:00 noon on the day prior to their scheduled departures if the customer selects the option when making the reservation online or by telephone (or, in the case of reservations for commercial vehicles that are more than twenty (20) feet in length, submits a written request) for the Authority to continue processing the customer’s “wait list” requests beyond 48 hours before the scheduled day of sailing to a specific time no later than 12:00 noon on the day prior to their scheduled departure. However, if a customer selects this option, the Authority will not telephone the customer to confirm any change in the customer’s reservation to a “wait list” request, but instead will only need to notify the customer of the change by email (to a valid current email address given by the customer) before 2:00 p.m. on the day prior to the customer’s scheduled departure.

3.6.3 Changes to a reservation as a result of a “wait list” request are not considered “Reservation Changes” under Section 5 below; but once a reservation is changed due to a “wait list” request, the changed reservation is subject to all cancellation and change policies.

3.7 Reservation Confirmations.

3.7.1 Customers with reservations no longer will present reservation tickets at the time of sailing. Instead, customers need only have their reservation confirmations or reservation numbers upon checking in at a terminal in the event the terminal employees are unable to confirm their reservations.

3.7.2 Customers making reservations over the Internet may print copies of their confirmations on their own printers. Customers making reservations by telephone will be told their reservation numbers by the Authority’s reservation clerks (and may also ask for their reservation confirmations to be emailed to them). Customers may also obtain copies of their reservation confirmations at any of the Authority’s ferry terminals or Reservation Offices (upon presentation of proper identification). A new reservation confirmation (with the same reservation number) will be issued for any change made to a reservation.

3.7.3 Although the Authority does not routinely mail reservation confirmations, it will do so upon a customer’s request subject to the following conditions:

(a) The Authority must receive the request for the reservation confirmation more than ten (10) calendar days in advance of the scheduled sailing.

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(b) The reservation must not have been paid for by means of a pre- authorized Authority charge account. No confirmations for reservations paid for by means of a pre-authorized Authority charge account are mailed to customers or may be picked up by customers prior to the day of sailing. Instead, they are issued on the day of sailing at the Departure Terminal at the time of the customer’s arrival.

4. SPECIAL CIRCUMSTANCES FOR VEHICLE RESERVATIONS.

4.1 Reservations for Vehicles Being Transported Without Drivers.

If a customer is traveling between Hyannis and Nantucket and does not intend to have someone available to drive the vehicle on the vessel at the time of the vessel’s loading and/or to drive the vehicle off the vessel at the time of the vessel’s unloading, the customer will be required to pay the additional charges for drive- on/drive-off services when the vehicle is dropped off at the terminal from which it is to be driven onto the vessel. The Authority’s provision of such drive-on/drive- off services are also subject to the provisions of Part H of this Handbook.

4.2 Reservations for Vehicles Needing to be Towed or Pushed.

If a customer’s vehicle will need to be towed or pushed onto or off of a vessel by the Authority at the time of the vessel’s loading or unloading, the customer when making the reservation may pre-pay the additional charges for such towing/pushing services; provided, however, that the Authority’s provision of such towing/pushing services are subject to the provisions of Part H of this Handbook.

4.3 Reservations for Customers with Disabilities.

The Authority will attempt to accommodate the special reservations needs of customers with disabilities or who are traveling with another individual with a disability. Such customers may contact the Authority (see Section 1.3 above) in order to discuss their particular situations and review what accommodations the Authority can provide.

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4.4 Reservations for Customers Traveling in Rental Cars.

Customers traveling in rental vehicles may make reservations in their own name. At the time of booking, a customer traveling in a rental vehicle should provide as much vehicle information as possible regarding the rental vehicle and may use his or her own name as the license plate number and/or such other “dummy” information as is necessary to make the reservation, or the customer instead may simply provide vehicle information about his or her own vehicle (as opposed to the rental vehicle). Customers are cautioned, however, not to underestimate the length or height of their rental vehicles (see Section 3.3.4, above). In accordance with Section 3.3.4, above, the Authority’s terminal employees will establish that the customer is the person for whom the reservation has been made when the customer arrives at the departure terminal.

4.5 Reservations for Customers Traveling to Medical Appointments.

In the event a customer who is eligible for a “preferred space” needs to make a reservation for the purpose of traveling off-island for a medical appointment, and no reservations are then available to the general public for the date or time needed by the customer, the customer may be able to reserve a “preferred space” for this purpose in advance of the time that they otherwise become available for booking in accordance with and subject to the provisions of Part F, entitled “Special Reservation Programs,” Section 3.5.

4.6 Reservations for Automobile Dealerships and Rental Car Companies.

Automobile dealerships and automobile rental companies may make reservations for the transportation of new, used or rental cars that are part of their inventory in accordance with and subject to the following additional conditions:

4.6.1 Conditions applicable to the Hyannis/Nantucket route:

(a) Reservations may be made for no more than five such cars on any one vessel trip, unless approved by the Authority’s Reservation Manager in advance.

(b) No such cars will be carried during peak travel times (which, during the summer, are Thursdays, Fridays, Saturdays, Sundays and holidays) unless approved by the Authority’s Reservation Manager in advance.

4.6.2 Conditions applicable to the Woods Hole/Martha’s Vineyard route:

(a) No more than ten such cars may be carried on any vessel.

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(b) The customer must make certain that each such car is accompanied by a driver to drive the car on and off the vessel.

4.7 Restrictions for Vehicles Carrying Certain Commodities.

Depending upon the type of commodity carried, a customer’s vehicle may be required to travel upon certain conditions and only on certain trips of particular vessels.

4.7.1 Commodities such as gasoline, heating oil, oxygen, propane and other hazardous or flammable products are restricted to traveling on “hazardous cargo” trips (see Part L of this Handbook).

4.7.2 Commodities such as garbage and/or trash, solid and liquid waste, septage and recyclables (including crushed vehicles); livestock (including live bees); agricultural products (including mussels); construction demolition materials; and any other odorous or dangerous commodities are subject to certain conditions and may be restricted to certain trips as well (see Section 3.2 of Part A of this Handbook.

5. CHANGING VEHICLE RESERVATIONS.

A customer may change a vehicle reservation with the Reservation Office by telephone or in person during its normal operating hours, or in person at any of the Authority’s ferry terminals whenever those terminals are open, or any time on the Authority’s website, "http://www.steamshipauthority.com", in accordance with and subject to the following conditions:

5.1 Changes Made At Least Fourteen (14) Days in Advance.

Changes made to vehicle reservations at least fourteen (14) days in advance of the scheduled departure (or up to 6:00 a.m. the calendar day before the scheduled departure for vehicles, other than tour buses, that are twenty (20) feet or more in length) are subject to the following conditions:

5.1.1 If the reservation has not been changed before, the customer may change the reservation (either one-way or round-trip) at no additional charge;

5.1.2 If the reservation already has been changed one or more times, the customer may change the reservation upon payment of an additional $10.00 charge;

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5.1.3 A reservation may not be changed to a departure date later than one two (12) years after the date the reservation is originally booked;

5.1.4 In order to change any reservation to another date on which a different fare applies, the customer must pay the difference between the applicable fare and the fare previously paid at the time the change is made; except that this provision shall not apply to a customer who changes a reservation that was made for a date within the Authority’s winter schedule to another date within the same winter schedule and the increase in fare is due to an intervening implementation of a general fare increase.

5.2 Changes Made With Less Than Fourteen (14) Days’ Notice.

Changes made to vehicle reservations within fourteen (14) days of the scheduled departure (or after 6:00 a.m. the calendar day before the scheduled departure for vehicles, other than tour buses, that are twenty (20) feet or more in length) are subject to the following conditions:

5.2.1 The changed reservation will not be eligible for a refund if subsequently canceled;

5.2.2 If the reservation has not been changed before, the customer may change the reservation at no additional charge;

5.2.3 If the reservation already has been changed one or more times, the customer may change the reservation upon payment of an additional $10.00 charge;

5.2.4 A reservation may not be changed to a departure date later than one two (12) years after the date the reservation is originally booked;

5.2.5 In order to change any reservation to another date on which a different fare applies, the customer must pay the difference between the applicable fare and the fare previously paid at the time the change is made; except that this provision shall not apply to a customer who changes a reservation that was made for a date within the Authority’s winter schedule to another date within the same winter schedule and the increase in fare is due to an intervening implementation of a general fare increase.

5.2.6 No reservation may be changed later than one hour before the scheduled departure. In the event a reservation is neither changed with at least one (1) hour advance notice nor used as reserved, no refund shall be issued to the customer, although the reservation may be used for stand-by travel solely on the date for which the trip was scheduled and possibly, at the Authority’s discretion, the following day. (See Section 7 below)

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5.3 Certain Changes Not Subject to the Above Restrictions.

5.3.1 For vehicles that are twenty (20) feet or more in length, a customer may reduce the reserved space requirement for the vehicle for a lower applicable fare if notification is made to the Reservation Office later than 24 hours in advance of the scheduled departure. In the event the customer does not notify the Reservation Office of a reduced space requirement for the vehicle prior to that time, the customer will be responsible to pay the fare for the vehicle size as reserved.

5.3.2 Customers may always make the following changes to their reservations without any additional charges or penalties or being considered a “reservation changes” under Section 5.1 or 5.2 above:

(a) Changing their license plate numbers;

(b) Adding or subtracting passengers;

(c) Changing a reservation to another trip on the same day;

(d) Changing a reservation to a preferred space reservation on the same day; and

(e) Changing vehicles within the same rate category.

6. CANCELING VEHICLE RESERVATIONS.

A customer may cancel a reservation with the Reservation Office by telephone or in person during its normal operating hours, or in person at any of the Authority’s ferry terminals whenever those terminals are open, or any time on the Authority’s website, "http://www.steamshipauthority.com", in which event the value of the canceled reservation, less applicable charges, will be refunded to the customer only in accordance with and subject to the provisions of this section.

6.1 Segments of Trip Eligible for Refund.

6.1.1 The Authority will refund one-way segments of a regular fare reservation in accordance with the provisions of this section regardless of whether other one-way segments of the reservation have been used.

6.1.2 The Authority will refund an excursion fare reservation in accordance with the provisions of this section only if no segments of the reservation have been used.

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6.2 Reservations Canceled on Same Day Made.

Any reservation made and canceled on the same day is fully refundable without the payment of any additional processing fee.

6.3 Advance Notice Required for Refund.

6.3.1 If the cancellation notice is received by the Authority at least fourteen (14) days in advance of the scheduled departure for a vehicle reservation (or by 6:00 a.m. the calendar day before the scheduled departure for vehicles, other than tour buses, that are twenty (20) feet or more in length), the customer will be issued a full refund less a $10.00 processing fee, unless the reservation was previously changed with less than fourteen (14) days’ notice prior to the previously scheduled departure (or after 6:00 a.m. the calendar day before the previously scheduled departure for vehicles, other than tour buses, that are twenty (20) feet or more in length); provided, however, that:

(a) if the reservation was paid for through an Authority Company Charge Account, no processing fee will be charged; or

(b) if the reservation was paid for with a ticket from a 10-trip automobile ticket book, the ticket will be returned to the customer’s ticket book for future use in lieu of a refund.

6.3.2 No refund will be issued for a reservation canceled later than fourteen (14) days before (or, for vehicles, other than tour buses, that are twenty (20) feet or more in length, after 6:00 a.m. the calendar day before) the scheduled departure or for a reservation reflecting a change in a previous reservation with less than fourteen (14) days’ notice prior to the previously scheduled departure (or, for vehicles, other than tour buses, twenty (20) or more in length, after 6:00 a.m. the calendar day before the previously scheduled departure).

6.3.3 Notwithstanding the provisions of Sections 6.3.1 and 6.3.2 above, a customer will not be charged any processing fee and/or denied a refund if the reservation is canceled for any of the following reasons:

(a) an error on the part of an Authority reservation agent in making the reservation, but only if the Authority is notified of the error within ten (10) days after the reservation ticket is issued to the customer;

(b) a medical emergency or death in the customer’s immediate family;

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(c) a missed connection due to adverse weather conditions;

(d) interruption or lack of boat service as reserved by the customer.

6.4 Return of Unused Ticket Required for Refund.

If a customer has been issued a ticket for the reservation being canceled, the customer must also return the unused ticket to the Authority within one two (12) years of the date of the first departure of the canceled reservation in order to receive any refund due. In the event the customer has lost the unused ticket, the customer must instead complete and return a “Lost Ticket Application” within one two (12) years of the date of the first departure of the canceled reservation. Customers who receive a refund based upon their submission of a “Lost Ticket Application” shall remain financially responsible for the ticket if it is presented for transportation and mistakenly honored by the Authority.

6.5 Refund of Passenger Fares.

Customers should be aware that pre-paid passenger fares might be eligible for a refund even if the associated vehicle reservation is not. Refunds of passenger fares are governed by the provisions of Part I of this Handbook.

7. UNUSED RESERVATIONS.

In the event a reservation is neither canceled with at least fourteen (14) days advance notice (or by 6:00 a.m. the calendar day before the scheduled departure for vehicles, other than tour buses, twenty (20) feet or more in length), nor changed with at least one (1) hour advance notice, nor used as reserved, no refund shall be issued for the ticket. In these circumstances, the ticket shall be valid only for stand-by travel solely on the date for which the trip was scheduled. At the Authority’s discretion, the ticket may instead be valid only for stand-by travel on the following day. In either case, the vehicle shall have no priority over other stand-by vehicles.

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8. COMMERCIAL VEHICLES WAITLISTED FOR ONE SEGMENT OF TRAVEL.

If a customer has requested a round-trip reservation for a vehicle, other than a tour bus, that is twenty (20) feet or more in length, and has received a reservation for a one-way segment of that round trip, but is still on the wait list for the other one-way segment, the customer will have until 12:00 noon the calendar day before the scheduled departure of the reserved one-way segment to either change or cancel that reservation before incurring any of the charges or penalties described in any of the preceding Sections 5.1, 5.2, 6.3 and 7 for failing to change or cancel the reservation prior to 6:00 a.m. the calendar day before the scheduled departure.

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F. SPECIAL RESERVATION PROGRAMS.

This Part F describes the Authority’s special reservations programs. These include:

. The Authority’s Bulk Freight Reservation Program. To ensure the adequate transportation of necessaries of life for the Islands, the Bulk Freight Reservation Program provides commercial freight shippers the opportunity to make their necessary and anticipated freight truck reservations for six- to nine-month periods into the future before any vehicle spaces are made available to non-commercial customers. (Section 2.)

. The Authority’s Preferred Space Program. To assist island residents in traveling back and forth to the mainland for their medical and other daily living needs, the Preferred Space Program provides island residents the opportunity to make a limited number of reservations for such travel either seven days or one day before their day of sailing. (Section 3.) Island residents who need reservations due to their disabilities or for medical appointments may be able to reserve Preferred Spaces even sooner (Section 3.5).

. The Authority’s Headstart Reservation Program. To provide island residents more assistance in traveling back and forth to the mainland for their medical and other daily living needs during the summer season when vehicle reservations are more difficult to obtain, the Headstart Reservation Program provides island residents a short opportunity to make a limited number of reservations for such travel during the summer season before most of the Authority’s remaining available spaces are made available for reservations by the general public (Section 4).

. The Authority’s Tour Bus Reservation Program. To ensure that tour bus reservations are processed in a fair and consistent manner, the Tour Bus Reservation Program provides tour bus customers to make their anticipated reservations for travel on the Woods Hole/ Martha’s Vineyard route during the following year’s summer operating schedules after bulk freight reservations for those schedules are processed but before any vehicle spaces are made available to non-commercial customers during those schedules. (Section 5.)

1. AVAILABILITY OF SPECIAL RESERVATION PROGRAMS.

1.1 Approval of Operating Schedules.

The Authority’s governing Members approve the Authority’s vessel operating schedules generally in six-month increments, one of which usually coincides with the Authority’s off-season schedules (November through April), and the second of which usually coincides with the Authority’s summer schedules (May through October). However, the actual dates of such periods vary from year to year.

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1.2 Allocation of Vehicle Spaces.

After the Members approve a particular schedule, the Authority segregates available vehicle reservations by vessel as follows:

1.2.1 A certain number of spaces are allocated for commercial vehicles, other than tour buses, that are more than twenty (20) feet in length based upon the actual number of such vehicles carried by the Authority during the same period the previous year. These spaces are available for reservations as follows:

(a) First, in accordance with the procedures set forth in Section 2, below, entitled “Bulk Freight Reservation Program”;

(b) Then, to the extent any of these allocated spaces are not reserved during the “Bulk Freight Reservation Program,” they remain available only to commercial vehicles, other than tour buses, that are more than twenty (20) feet in length until the Authority transfers them to the pool of spaces available for reservations by the general public (generally fourteen (14) days before the day of sailing).

1.2.2 A certain number of spaces on the Woods Hole/Martha’s Vineyard route are allocated for tour buses. These spaces are available for reservations in accordance with the procedures set forth in Section 5, below, entitled “Tour Bus Reservation Program.” If any of these allocated spaces are not reserved during the “Tour Bus Reservation Program,” they are transferred to the pool of spaces available for reservations by the general public.

1.2.3 The Authority designates a certain number of spaces as “Preferred Spaces.” These spaces are available for reservations in accordance with the procedures set forth in Section 3, below, entitled “Preferred Space Program.” If any of these allocated spaces are not reserved prior to the particular day of sailing, they are transferred to the pool of spaces available for reservations by the general public.

1.2.4 After the completion of the Authority’s Bulk Freight Reservation Program and Tour Bus Reservation Program, and the allocation of Preferred Spaces, the remaining spaces are placed into the pool of spaces available for reservations by the general public as follows:

(a) If the remaining spaces are for periods during the Authority’s non- summer schedules, they are immediately placed into the pool of spaces available for reservations by the general public.

(b) If the remaining spaces are for periods during the Authority’s summer schedules, they initially are made available for reservations

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only in accordance with the procedures set forth in Section 4, below, entitled “Headstart Reservation Program.” After the completion of the Headstart Reservation Program, the remaining spaces for periods during the Authority’s summer schedules similarly are placed into the pool of spaces available for reservations by the general public.

2. BULK FREIGHT RESERVATION PROGRAM.

2.1 Eligibility.

All persons or entities who wish to make advance reservations for commercial vehicles, other than tour buses, that are more than twenty (20) feet in length (as defined in Part D, entitled “Commercial Vehicle Reservations”) are eligible to participate in the Authority’s Bulk Freight Reservation Program.

2.2 Submission of Bulk Freight Reservation Requests.

2.2.1 The Authority notifies all entities who participated in the Bulk Freight Reservation Program during the previous year, as well as all additional entities who have asked to participate in the Bulk Freight Reservation Program, of the deadlines for submitting bulk reservation requests for the next available seasonal schedule or schedules. The notice informs each participant of the date that bulk reservation requests will begin to be processed (the “First Deadline”), as well as the last date that participants can submit bulk reservation requests for the applicable schedule or schedules (the “Final Deadline”).

2.2.2 The Authority accepts bulk reservation request forms by email, through the mail, by delivery services (such as Federal Express and UPS), or in person only at the Mashpee Reservation Office (office hours are 7:30 am to 4:00 pm daily). The Authority does not accept faxed requests.

2.2.3 Participants are required to submit a separate bulk reservation request for each vehicle by seasonal schedule, and each request must contain the following information:

(a) the type of commodity carried (i.e., United States Mail, hazardous materials, trash, food or other commodities); and

(b) the route for which the request is made (i.e., Martha's Vineyard or Nantucket).

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In the event a reservation is made for a participant to carry a certain type of commodity, the participant must carry that type of commodity on the trip(s) for which the reservations were made. Failure to do so may result in the forfeiture of reservations, and the Authority may spot check carriers to verify the commodity being carried.

2.2.4 When submitting a bulk reservation request, a customer may also request, if the Authority is unable to provide the customer with a reservation for the date or time desired, that its reservation be moved to other dates and/or times if they become available. Such “wait list” requests are honored on a first come, first served basis, and are automatically processed up to 48 hours in advance of the reserved departure (or, if the customer requests, up to noon the day before the reserved departure) as spaces become available due to other customers’ reservation cancellations or changes. See Part E of this Handbook.

2.2.5 The Authority reserves the right to “smooth out” a participant’s reservation requests (e.g., changing a request for three round trip reservations on Tuesdays to one round trip reservation on Tuesdays, Wednesdays and Thursdays) and to limit the number of a participant’s reservation requests for a particular day for good cause shown (such as improving the efficiency of the Authority’s operations and/or preventing material disruptions to the schedules of other freight shippers who provide necessaries of life for the islands). However, the Authority will consult with the participant before taking any such action under this section.

2.3 Processing of Bulk Freight Reservation Requests.

2.3.1 Daily Lottery Drawings. All bulk reservation requests received by the First Deadline are placed into one group and processed in the order they are assigned by the lottery drawing described in Section 2.3.2 below. The lottery assignment procedure is then repeated daily for bulk reservation requests received after the First Deadline through the Final Deadline. All bulk reservation requests received after the Final Deadline are processed in the order received after the processing of all requests received by the Final Deadline.

2.3.2 Separate Lottery Drawings for Each Type of Commodity Carried. The order in which customers’ bulk freight reservation requests are processed is determined by the Authority by conducting separate lottery drawings among reservation requests for each type of commodity carried. The Authority then processes the requests as follows:

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(a) The reservations for shippers carrying the United States Mail under contract with the Authority are processed first.

(b) The reservations for shippers carrying hazardous materials on average at least three times per week during the applicable schedule are processed second (to the extent there is sufficient deck space on designated hazardous trips), and the order in which each such shipper’s reservations are processed (to a maximum of one round trip [or two one-way trips, one in each direction] each day) is determined by a lottery drawing; provided, however, that in the event a shipper requests reservations for more than one round trip [or two one-way trips, one in each direction] each day, those additional requests are processed in a second round in the same order (with the same maximum number of allowed reservations), and such subsequent rounds as are necessary to process all of the shipper’s reservation requests. In the event a shipper requests reservations for more than one round trip [or two one-way trips, one in each direction] each day, its requests are processed in the order of priority stated by the shipper on its request forms.

(c) The reservations for shippers carrying hazardous materials on average less than three times per week during the applicable schedule are processed third (to the extent there is sufficient deck space on designated hazardous trips), following the same lottery process as described in paragraph (b) above.

(d) The reservations for shippers carrying trash or septage (both solid and liquid waste) are processed fourth (to the extent there is sufficient deck space on open deck freight vessels), following the same lottery process as described in paragraph (b) above.

(e) The reservations for shippers carrying food on average at least three times per week during the applicable schedule, but not more than 110% of each shipper’s actual average number of sailings during the previous year’s applicable schedule, are processed fifth, again following the same lottery process as described in paragraph (b) above; provided, however, that:

(i) trucks in the “food” commodity class must have at least fifty percent (50%) of their load as food in order to receive a priority over trucks carrying other commodities; and

(ii) during the summer season, food shippers that make six (6) or more delivery stops on Nantucket shall be given a priority in obtaining reservations over other food shippers that make less than six (6) delivery stops on Nantucket.

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(f) The reservations for shippers carrying food on average less than three times per week during the applicable schedule, but not more than 110% of each shipper’s actual average number of sailings during the previous year’s applicable schedule, are processed sixth, again following the same lottery process as described in paragraph (b) above and subject to the same requirements and priorities as described in paragraph (e) above.

(g) The reservations for shippers carrying other commodities on average at least three times per week during the applicable schedule, but not more than 110% of each shipper’s actual average number of sailings during the previous year’s applicable schedule, are processed seventh, again following the same lottery process as described in paragraph (b) above; provided, however, that the Authority may give priority in this category to licensed and registered common carriers.

(h) The reservations for shippers carrying other commodities on average less than three times per week during the applicable schedule, but not more than 110% of each shipper’s actual average number of sailing during the previous year’s applicable schedule, are processed eighth, again following the same lottery process as described in paragraph (b) above.

(i) The remaining reservations for shippers in categories (e) through (h) above (i.e., reservations for trips exceeding 110% of each shipper’s actual average number of sailings during the previous year’s applicable schedule), in the same order and following the same lottery process as described above.

NOTES: When determining a shipper’s actual average number of sailings per week during the previous year’s applicable schedule, the Authority will group together the sailings of all shippers among whom reservations are authorized to be transferred, and shall allocate the sailings among those shippers based upon the actual usage of each shipper.

The Authority will process all of the reservation requests of a new participant in the Bulk Freight Reservation Program without any limitation based upon its actual number of sailings during the previous year’s applicable schedule, provided that the Authority determines, in its sole judgment, that the entity is a bona fide new participant and is not a successor to, or affiliated with, any other prior or current participant.

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2.3.3 Reservation Confirmations. After the bulk freight reservation requests are processed, the Authority mails to each participant confirmations of its bulk freight reservations.

2.4 Deposit Requirements.

2.4.1 Deposit Required for Bulk Freight Reservations. In order to make any reservations under the Authority’s Bulk Freight Reservation Program, a participant must provide a prepaid deposit to the Authority in the amount of ten percent (10%) of the aggregate value of its bulk freight reservations. Deposits must be paid by the due dates set forth below, unless another due date for a deposit is established by the Authority.

Operating Schedules for Due Date which Reservations are Made for Deposits

Winter Operating Schedules December 1st Spring Operating Schedules December 1st Summer Operating Schedules March 1st Fall Operating Schedules September 1st

2.4.2 Deposit Only Partially Refundable. In the event a participant cancels more than twenty percent (20%) of its bulk freight reservations, it shall be responsible for the amount of any additional bulk freight reservations it cancels up to the amount of its deposit, even though the participant, under Part C of this Policy Handbook, otherwise would have been allowed to cancel any or all of its reservations at least twenty-four (24) hours in advance of their scheduled departures and not be subject to any cancellation penalties. The Authority shall apply the deposit to pay for canceled reservations in excess of twenty percent (20%) of the bulk reservations made by the participant and then will refund the remaining amount, if any, to the participant at the end of the bulk freight reservations period.

2.4.3 Deposits Required for Additional Commercial Reservations. After the conclusion of the bulk reservation period, a participant in the Bulk Freight Reservation Program may make one or more additional reservations for commercial vehicles thirty (30) days or more in advance of their scheduled departures as follows:

(a) For participants who have an Authority Company Charge Account in good standing, upon payment of a nonrefundable deposit in the amount of ten percent (10%) of each reservation, which deposit must be paid at the time the reservation is confirmed, unless another due date for the deposit is established by the Authority; or

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(b) For participants who do not have an Authority Company Charge Account in good standing, upon payment in full for each reservation at the time the reservation is booked.

Participants in the Bulk Freight Reservation Program may also make additional commercial vehicle reservations for scheduled departures within the following thirty (30) days in the same manner that any other customer may make such reservations.

2.5 Transferring, Changing and Canceling Bulk Freight Reservations.

2.5.1 Bulk freight reservations are nontransferable, except that a participant may transfer one or more of its reservations to any other shipper who has been included by the participant on a list provided to the Authority in advance of approved shippers to whose billing accounts one or more of its reservations may be transferred. The original shipper of record for the reservation will be financially responsible for any discrepancies in usage. In addition, for a reservation to be transferred to another billing account, the commodities being carried must be like in nature unless there is no vehicle on the wait list for that trip at the time the reservation is transferred (or, if the reservation is transferred later than 12:00 noon on the day prior to the scheduled departure, there was not vehicle on the wait list for that trip when the Authority stopped processing wait list requests for that trip). Example: a reservation originally carrying a hazardous load cannot be changed to a food load unless there is no vehicle on the wait list for that trip at the time the reservation is transferred or, if the reservation is transferred after 12:00 noon on the day prior to the scheduled departure, there were no vehicles on the wait list for that trip when the Authority stopped processing wait list requests for that trip.

2.5.2 The procedures, restrictions and penalties governing the changing and cancellation of commercial vehicle reservations, set forth in Part E of this Policy Handbook, apply to the changing and cancellation of bulk freight reservations, except as otherwise provided in this Part F, Section 2.

2.5.3 Participants of the Bulk Freight Reservation Program who cancel more than one-third of their bulk reservation requests will also be assessed an additional penalty when the Authority processes the following year’s bulk reservation requests. Bulk freight reservation requests submitted by such participants will be processed after all others, and such participants may also risk being removed from the Bulk Freight Reservation Program entirely in the future.

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3. PREFERRED SPACE PROGRAM.

3.1 Eligibility.

The following individuals are eligible for the Authority’s Preferred Space Program:

3.1.1 Any individual who is eligible to travel on an excursion rate. See Part C, Section 4.1, of this Handbook.

3.1.2 Any individual who is a year-round or seasonal resident of Martha's Vineyard or Nantucket. An individual is considered to be a “resident” of a particular location if he or she has a “settled place of abode” there. An individual must provide two types of documentation of his or her island residency. Such documentation may include, but is not limited to, two or more telephone, water, electricity, cable/satellite or other similar utility bills issued to the individual at his or her island address within the last thirty (30) days.

3.2 Travel in Preferred Spaces Restricted to Specific Vehicles.

An individual traveling under the Authority’s Preferred Space Program must travel with a vehicle less than twenty-two (22) feet in length that is listed in his or her Profile account and is either:

3.2.1 registered in his or her name; or

3.2.2 registered in a name of his or her business, provided that the individual has provided the Authority with a copy of the appropriate insurance coverage selection page; or

3.2.3 leased to the individual or his or her business, provided that the individual has provided the Authority with a copy of the appropriate insurance coverage selection page and a copy of the lease agreement.

3.3 Special Restrictions Applicable to Preferred Space Reservations.

Reservations for Preferred Spaces for non-commercial vehicles are subject to all of the provisions applicable to non-commercial vehicle reservations set forth in Part C of this Handbook, and reservations for Preferred Spaces for commercial vehicles are subject to all of the provisions applicable to commercial vehicle reservations set forth in Part D of this Handbook. In addition, reservations for Preferred Spaces are subject to the following special restrictions:

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3.3.1 Travel under the Authority’s Preferred Space Program may not be used for commercial or business purposes.

3.3.2 Preferred Space reservations and tickets are available only on the following bases:

(a) For both segments or either segment of a round trip originating on one of the Islands. If the individual uses a preferred space for only one segment of the round trip, he or she may use a standard space for the other segment of the trip in either direction. In any event, however, the off-island portion of the ticket must be used in order for the return ticket to be valid.

(b) For a one-way trip originating on one of the Islands.

3.3.3 The individual traveling under the Authority’s Preferred Space Program must use the same vehicle on each segment of a round trip, unless the Authority specifically approves the customer’s use of a different vehicle on the trip’s return segment. Such approval generally will be granted if the different vehicle is a newly purchased vehicle or is being used by the customer while the vehicle with which he or she traveled off-island is being repaired.

3.3.4 Eligible individuals are limited to one Preferred Space reservation (either one-way or round-trip) per day (although the return travel does not have to be on the same day as the off-island segment of the trip).

3.3.5 Preferred Space reservations must be paid for in full at the time of booking.

3.3.6 Preferred Space reservations are non-refundable and non-transferable.

3.4 Availability of Preferred Space Reservations.

3.4.1 To the extent they have not been booked under Section 3.5 below, Preferred Space reservations are sold as follows:

(a) For travel between Nantucket and Hyannis:

(i) At the Nantucket terminal for reservations made in person only beginning at 6:45 a.m. on the day prior to the island departure date.

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(ii) On the Authority’s website "http://www.steamshipauthority.com" or by phone at the Authority’s Mashpee Reservations Office (508-228-3274 or 508-477-8600) beginning at 7:30 a.m. on the day prior to the scheduled sailing.

(b) For travel between Martha's Vineyard and Woods Hole, on the Authority’s website, "http://www.steamshipauthority.com", or by phone at either the Authority’s Mashpee Reservation Office (508- 477-8600) or the Authority’s Martha's Vineyard Reservation Call Center (508-693-9130), or in person at the island terminals or the Mashpee Reservation Office as follows:

(i) A portion of the available Preferred Spaces are sold beginning at 7:30 a.m. seven days prior to the island departure date.

(ii) The remaining portion of the available Preferred Spaces are sold beginning at 7:30 a.m. on the day prior to the island departure date.

3.5 Advance Reservation of Preferred Spaces by Eligible Customers.

The Authority allows preferred spaces to be reserved in advance by eligible customers who must travel with their vehicles either (a) due to their disabilities; or (b) for medical appointments or treatments; or (c) to attend a funeral service upon the death of a member of their immediate family; provided, however, that such reservations must be made in accordance with the following guidelines.

3.5.1 Persons Eligible for Advance Reservation of Preferred Spaces. The Authority will allow individuals to reserve preferred spaces before they are released to other preferred customers only if the individuals:

(a) are profiled as being eligible to reserve a preferred space; and

(b) they have a need to travel with their vehicles either due to their disabilities, or for medical appointments or treatments, or to attend a funeral service upon the death of a member of their immediate family.

3.5.2 Procedure for Advance Reservation of Preferred Spaces. Eligible customers may make advance reservations of preferred spaces as follows:

(a) Eligible customers requesting such reservations should contact the Mashpee Reservations Office during regular office hours at any of

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the following telephone numbers and ask to speak to the Supervisor on duty:

(508) 477-8600 (508) 693-9130 (508) 228-3274

(b) Before being allowed to reserve a preferred space in advance, eligible customers will be required to submit written verification of their eligibility and need for the advance reservation, in such form as determined by the Supervisor. For example, the Supervisor may determine that such verification should be in the form of a letter from the customer’s attending physician or health care facility. The Supervisor will also advise each customer of the manner in which the verification should be submitted (e.g., by mail or fax).

3.5.3 Other Transportation Alternatives. In the event there are no reservations for a preferred space available for an eligible customer, the Supervisor will discuss with the customer other transportation alternatives that might be available and appropriate for the situation presented. Such alternatives may include the preferential boarding of the customer’s vehicle under the Authority’s Emergency Transportation Policy or under the Authority’s Policy Allowing the Preferential Boarding of Vehicles of Certain Individuals with Disabilities.

4. HEADSTART RESERVATION PROGRAM.

Vehicle reservations for the Authority’s summer schedules are initially made available in accordance with the Authority’s Headstart Reservation Program, after the completion of the Authority’s Bulk Freight Reservation Program and Tour Bus Reservation Program, and the allocation of Preferred Spaces.

4.1 Eligibility.

The only individuals who are eligible for the Authority’s Headstart Reservation Program are those individuals who are eligible and registered for the Authority’s Preferred Space Program under Section 3.1 above.

4.2 Special Rules for Headstart Reservations.

4.2.1 Each eligible customer is allowed to make up to five vehicle reservations (one way or round trip) under the Headstart Reservation Program.

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4.2.2 A customer may make any of his or her five Headstart reservations in either his or her own name, or in another person’s name. Except as set forth in Section 4.2.3 below, the customer must provide the correct name, address, telephone number, license plate and vehicle information (make, model, year, height and length) for the person who will be using each reservation. A customer’s failure to provide accurate vehicle dimensions, including roof top carriers and attached bicycles, could void reserved space and/or impact rate. See Part C of this Handbook, entitled “Non-Commercial Vehicle Reservations,” Section 2.4, and Part D of this Handbook, entitled “Commercial Vehicle Reservations,” Section 2.4.

4.2.3 A customer may temporarily designate up to three of his or her Headstart reservations as transferable reservations, which will be held under the customer’s name without any information regarding the person (or vehicle) who will be using such reservation, in which event:

(a) The Authority will send a “transfer slip” to the customer for each transferable Headstart reservation made, which the customer must return to the Authority no later than the reservation’s Cancellation Deadline, as set forth in Section 4.2.3(e) below (even if the customer decides to keep the reservation for his or her own use), with the name, address and license plate and vehicle information of the person using the reservation.

(b) Upon receipt of a completed “transfer slip,” the Authority will issue a ticket to the person who is identified in the “transfer slip” as the person who will be using the reservation.

(c) Any transferable Headstart reservation for which a completed “transfer slip” is not received by the Authority by the reservation’s Cancellation Deadline, as set forth in Section 4.2.3(e) below, will be canceled; and

(d) The Authority will assess a $10.00 processing fee for any refund of a canceled transferable reservation, regardless of whether the customer cancels the reservation before the reservation’s Cancellation Deadline with or with the submission of a completed “transfer slip” for the reservation or whether the reservation is canceled due to the customer’s failure to submit a completed “transfer slip” for the reservation by the reservation’s Cancellation Deadline.

(e) The Cancellation Deadline for any Headstart reservation that is a transferable reservation is May 15th of that year or thirty (30) days in advance of the scheduled departure of the first segment of the reservation, whichever is later.

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Example: A customer has a transferable Headstart reservation for a mainland departure on May 30th and a return trip from the island on June 30th. The Cancellation Deadline for that reservation is May 15th.

Example: A customer has a transferable Headstart reservation for a mainland departure on August 1st and a return trip from the island on August 14th. The Cancella- tion Deadline for that reservation is July 2nd.

4.2.4 All Headstart reservations must be paid for at the time of booking, and the method of payment for a reservation cannot be changed after the Authority issues a confirmation of the reservation.

4.2.5 Except as otherwise provided in this Section 4, Headstart reservations for non-commercial vehicles are subject to all of the provisions applicable to non-commercial vehicle reservations set forth in Part C of this Handbook, and Headstart reservations for commercial vehicles are subject to all of the provisions applicable to commercial vehicle reservations set forth in Part D of this Handbook.

4.3 Availability of Headstart Reservations.

4.3.1 Headstart reservations are first made available to those eligible customers making such reservations by mail (addressed to the Authority’s Mashpee Reservation Office only) or over the internet at the Authority’s website, beginning on a date designated by the Authority (“Opening Day”).

(a) Headstart reservation requests may be submitted by mail in advance of Opening Day, and all such requests received on or before Opening Day will be processed by the Authority at the start of business on Opening Day in the order of date received.

(b) Headstart reservation requests may be submitted over the internet at "http://www.steamshipauthority.com" beginning on Opening Day (provided the customer has registered with the Authority and has been issued an appropriate Profile Number with a User Name and PIN or password to access online service).

The Authority does not accept faxed or emailed Headstart reservation requests.

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4.3.2 The Authority also designates a later date when it will accept Headstart reservation requests by telephone as well as by mail and over the internet (“Telephone Opening Day”).

4.3.3 Finally, the Authority designates a date after the Telephone Opening Day for the completion of the Headstart Program, and the remaining spaces for periods during the Authority’s summer schedules are placed into the pool of spaces available for reservations by the general public on that date.

5. TOUR BUS RESERVATION PROGRAM.

Tour bus reservations for the Authority’s summer schedules on the Woods Hole/Martha’s Vineyard route are initially made available in accordance with the Authority’s Tour Bus Reservation Program, after the completion of the Authority’s Bulk Freight Reservation Program.

5.1 Eligibility.

All persons or entities who wish to make advance reservations for tour buses for travel during the summer schedules on the Woods Hole/Martha’s Vineyard route are eligible to participate in the Authority’s Tour Bus Reservation Program.

5.2 Submission of Tour Bus Freight Reservation Requests.

5.2.1 The Authority notifies all entities who participated in the Tour Bus Reservation Program during the previous year, as well as all additional entities who have asked to participate in the Tour Bus Reservation Program, of the deadline for submitting tour bus reservation requests for travel on the Woods Hole/Martha’s Vineyard route during the following year’s summer schedules. The notice informs each participant of the date that tour bus reservation requests for travel on the Woods Hole/Martha’s Vineyard route during those schedules will begin to be processed (the “Deadline”).

5.2.2 The Authority accepts tour bus reservation request forms by email, through the mail, by delivery services (such as Federal Express and UPS), or in person only at the Mashpee Reservation Office (office hours are 7:30 am to 4:00 pm daily). The Authority does not accept faxed requests.

5.2.3 Participants are required to submit a separate tour bus reservation request for each tour bus.

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5.2.4 When submitting a tour bus reservation request, a customer may also request, if the Authority is unable to provide the customer with a reservation for the date or time desired, that its reservation be moved to other dates and/or times if they become available. Such “wait list” requests are honored on a first come, first served basis, and are automatically processed up to 48 hours in advance of the reserved departure (or, if the customer requests, up to noon the day before the reserved departure) as spaces become available due to other customers’ reservation cancellations or changes. See Part E of this Handbook.

5.3 Processing of Tour Bus Reservation Requests.

5.3.1 Lottery Drawing. All tour bus reservation requests received by the Deadline are placed into one group and processed in the order they are assigned by the lottery drawing described in Section 5.3.2 below. All bulk reservation requests received after the Deadline are processed in the order received after the processing of all requests received by the Deadline.

5.3.2 Processing of Requests. The order in which each customer’s reservations are processed (to a maximum of one round trip [or two one-way trips, one in each direction] each day) is determined by a lottery drawing; provided, however, that in the event a customer requests reservations for more than one round trip [or two one-way trips, one in each direction] each day, those additional requests are processed in a second round in the same order (with the same maximum number of allowed reservations), and such subsequent rounds as are necessary to process all of the customer’s reservation requests. In the event a customer requests reservations for more than one round trip [or two one-way trips, one in each direction] each day, its requests are processed in the order of priority stated by the customer on its request forms.

5.3.3 Reservation Confirmations. After the tour bus reservation requests are processed, the Authority provides each participant with confirmations of its tour bus reservations.

5.4 Payment Requirements.

5.4.1 Customers With Authority Company Charge Accounts. Customers with Authority Company Charge Accounts in good standing are required to provide a prepaid deposit to the Authority in the amount of ten percent (10%) of the aggregate value of their tour bus reservations at the time the Authority provides them with their tour bus reservation confirmations, and are then required to pay in full the remaining balance due for each tour bus

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reservation no later than thirty (30) days prior to the travel date of that reservation.

5.4.2 Customers Without Authority Company Charge Accounts. Customers who do not have Authority Company Charge Accounts in good standing are required to pay for their tour bus reservations in full at the time the Authority provides them with their tour bus reservation confirmations.

5.4.3 Required Payments for Additional Tour Bus Reservations. After the conclusion of the tour bus reservation period, a participant in the Tour Bus Reservation Program may make one or more additional reservations for tour buses thirty (30) days or more in advance of their scheduled departures as follows:

(a) For participants who have an Authority Company Charge Account in good standing, upon payment of a deposit in the amount of ten percent (10%) of each reservation, which deposit must be paid at the time the reservation is confirmed, and then payment in full of the remaining balance due for each reservation no later than thirty (30) days prior to the travel date of that reservation; or

(b) For participants who do not have an Authority Company Charge Account in good standing, upon payment in full for each reservation at the time the reservation is booked.

Participants in the Tour Bus Reservation Program may also make additional tour bus reservations for scheduled departures within the following thirty (30) days in the same manner that any other customer may make such reservations.

5.5 Transferring, Changing and Canceling Tour Bus Reservations.

5.5.1 Tour bus reservations are nontransferable.

5.5.2 The procedures, restrictions and penalties governing the changing and cancellation of vehicle reservations, set forth in Part E of this Policy Handbook, apply to the changing and cancellation of tour bus reservations.

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G. PARKING

This Part G describes the Authority’s various parking facilities and its policies regarding the parking of vehicles at those facilities. These policies include:

. Parking availability at the Authority’s various terminals and off-site facilities (Section 1) and how the use of those parking spaces are designated (Section 2).

. How customers generally are charged for parking at the Authority’s terminals and off-site facilities (Section 3).

. The types of parking permits that are available for those who need to park at the Authority’s mainland terminals or facilities on a frequent basis (on-site permits, off-site permits, and off-season permits), how the Authority prioritizes the issuance of those parking permits, and the rules and regulations pertaining to those parking permits (Section 4).

. The rules surrounding the limited parking that is available at the Authority’s Vineyard Haven and Nantucket Terminals (Section 5).

. How the Authority provides free parking to the public for the purpose of attending Authority or Port Council meetings, and how the Authority’s General Manager may authorize free parking in certain other circumstances (Section 6).

1. PARKING AVAILABILITY.

For the convenience of its customers, the Authority operates parking facilities located at several of its terminals as well as at numerous off-site locations.

1.1 Woods Hole / Falmouth / Bourne. The Authority operates several parking facilities in connection with its Woods Hole terminal operations. These facilities are located in Falmouth (on Palmer Avenue and off of Thomas B. Landers Road on Technology Park Drive) and Bourne (on Route 28A in the village of Cataumet on a summer seasonal basis only). The terminal itself only has a limited number of short-term (15-minute) parking spaces available for the pick-up and drop-off of passengers. The only other spaces at the terminal (which are located in the back parking lot east of Little Harbor) are reserved for use by customers who have purchased parking permits to allow them to park in the back lot at the Woods Hole terminal (see Section 4, below).

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1.2 Vineyard Haven. The Authority’s Vineyard Haven terminal has only a few parking spaces that are available for use by the Authority’s customers for medical emergencies only.

1.3 Oak Bluffs. The Authority does not have any parking facilities available for its customers at its Oak Bluffs terminal.

1.4 Hyannis. The Authority operates several parking facilities in connection with its Hyannis terminal operations. These facilities are located at the terminal itself, as well as at various addresses in the village of Hyannis (Lewis Bay Road, Yarmouth Road and Brooks Road).

1.5 Nantucket. The Authority’s Nantucket terminal has only a few parking spaces for use by the Authority’s customers.

2. DESIGNATION OF PARKING SPACE USE.

To the extent parking spaces are available, the Authority designates them for use by the Authority’s customers in accordance with and subject to the provisions of this Part G as follows:

2.1 A certain number of parking spaces at each of the Authority’s terminals (and also at the more convenient of its mainland off-site parking facilities) are reserved for use as accessible parking spaces. If such an accessible parking space is used on a daily basis, it is subject to the provisions of Section 3 below; if the customer using an accessible parking space is eligible and purchases a parking permit in lieu of paying the daily parking charge, the space is instead subject to the provisions of Section 4 below.

2.2 Most of the remaining spaces at each of the Authority’s mainland terminals are reserved for use by customers who have purchased parking permits to allow them to park at that particular terminal (see Section 4, below).

2.3 A certain number of parking spaces at the more convenient of the Authority’s mainland off-site parking facilities are reserved for use by customers who have purchased parking permits to allow them to park at those particular facilities (see Section 4, below).

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2.4 The remaining spaces at the Authority’s mainland terminals and off-site parking facilities are available for use by the general public as set forth in Sections 3, 4 and 6 below.

2.5 The remaining spaces at the Authority’s Vineyard Haven and Nantucket terminals are available for use by the general public as set forth in Section 5 below.

3. PARKING CHARGES.

3.1 Except as provided in Sections 4, 5 and 6 below, customers are charged such rates as may be established from time to time by the Authority for the parking or storage of their vehicle at any of the Authority’s parking facilities for each calendar day or portion thereof that the vehicle is parked or stored there. Such rates may vary among the Authority’s different parking facilities as well as among different times of year.

3.2 In order to gain entrance to one of the Authority’s parking facilities and also establish the number of days (or fractions thereof) that a vehicle is parked there, if the facility is equipped with a parking ticket dispenser, a customer must take a parking ticket from the dispenser upon his or her entrance to the parking facility. Upon exiting the facility, the customer must give the ticket back for collection. If a customer fails to give a ticket back for collection upon exiting the facility, the Authority will charge the customer an amount equivalent to the aggregate of the charges that the customer would have incurred for parking in that facility for each calendar day the vehicle has been there, but no less than for a minimum of seven (7) calendar days. If a customer who is charged the seven-day minimum amount later submits his or her parking ticket showing that the customer’s vehicle was not parked in that facility for seven (7) calendar days, together with the receipt for the seven-day minimum amount so paid, the customer will be refunded the difference between that amount and the rate the customer would have been charged for the actual calendar days (or portions thereof) parked had the customer presented the parking ticket for collection at the time of exit.

3.3 Vehicles parked at parking facilities which are not equipped with parking ticket dispensers shall also be subject to parking charges, as follows:

3.3.1 Upon entering the facility, a customer shall tell the parking lot attendant on duty the number of calendar days (or portions thereof) his or her vehicle will be parked at that facility, and the customer shall pay the attendant the appropriate parking charges for that time period in advance. The attendant

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shall then provide the customer with a receipt stating the time period for which the appropriate parking charges have been paid.

3.3.2 In the event a customer does not remove his or her vehicle from the facility within the time period for which the parking charges have been paid, the customer will be required to pay all additional parking charges due before the vehicle will be allowed to leave the facility. Further, the Authority may tow any vehicle that is left in the facility beyond the time period for which a customer has paid for parking, and may then store the vehicle at any of the Authority’s other facilities until the customer pays all additional parking charges due. In such an event, the Authority may also require the customer to reimburse the Authority for all reasonable towing and other expenses incurred.

3.4 Vehicles transported on the Authority’s vessels that are not immediately removed from the Authority’s terminals upon reaching their ports of destination shall also be subject to parking charges; provided, however, that a customer who has purchased “drive-off” services in connection with the transportation of his or her vehicle (see Part H of this Handbook) may remove the vehicle (when the destination terminal is open) any time within 24 hours after the vehicle’s arrival at the destination terminal without incurring any additional parking or storage charges.

4. PARKING PERMITS.

In lieu of paying parking charges on a calendar-day basis, eligible customers may purchase parking permits that allow them to park at specific parking facilities on the mainland from January 1st through December 31st of each year (unless such permits are only valid for the “off-season” as set forth in Section 4.1.3 below) for a flat fee. The fees for parking permits are established from time to time by the Authority and vary between permits that allow year-round parking and those that allow parking only during the off-season, and between permits that generally allow customers to park at on-site facilities at an Authority terminal and those that allow customers to park only at off-site parking facilities.

4.1 Eligibility for Permits.

4.1.1 On-Site Terminal Parking Permits.

Based upon the limited number of parking spaces available at the Woods Hole or Hyannis terminal, the Authority annually issues permits that allow parking at each terminal to customers in the following order of priority:

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(a) Customers who are renewing their permits for parking at that particular terminal.

(b) Customers with physical disabilities. (The Authority relies on whether a customer has been issued an “accessible” license plate to determine whether that person should be issued an on-site terminal parking permit based upon his or her disability.)

(c) Customers who travel most frequently on a regular basis throughout the year.

Customers purchasing on-site terminal parking permits must execute a Parking Permit Agreement (see Section 4.2 below), pay the applicable fee, and provide the Authority with a copy of the current certificate of registration for the vehicle to be permitted. The vehicle must be registered in either the customer’s name, or the name of a person residing in the customer’s household, or the name of the customer’s business. On-site parking permit purchases and renewals are handled by the Authority’s Accounting Department.

4.1.2 Off-Site Parking Permits.

The Authority generally has an unlimited number of off-site parking permits in connection with Woods Hole and Hyannis terminal operations. Customers purchasing off-site parking permits must execute a Parking Permit Agreement (see Section 4.2 below) and pay the applicable fee. Off- site parking permit renewals and purchases are handled by both the Authority’s Accounting Department and its parking lot attendants at the off- site parking facilities for which the permits are issued.

4.1.3 Off-Season Permits.

The Authority makes available three types of off-season parking permits that are subject to all of the terms and conditions of annual parking permits, except that they are valid only during one of the following off-season periods:

(a) from September 15th through December 31st; or

(b) from January 1st through May 14th; or

(c) for bona fide students and teachers, a time period that coincides with their academic year.

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4.2 Terms and Conditions of Permits.

Each customer who purchases a parking permit must agree in writing to the following terms and conditions upon which the Authority issues the permit:

4.2.1 Term. The parking permit is valid only for the period from January 1st through December 31st of each year (except for an off-season permit, which is valid only from September 15th through December 31st or from January 1st through May 14th or, for bona fide students and teachers, a time period coinciding with their academic year).

4.2.2 Price Non-Refundable. The price of the parking permit is not refundable under any circumstances.

4.2.3 Permit Good for One Vehicle Only. The parking permit is in the form of a decal issued by the Authority and affixed to the vehicle by the Authority's parking lot personnel. The permit is good for one vehicle only, which is identified by the customer. If the permit is for on-site terminal parking, the customer must also certify that the vehicle is registered in either the customer’s name, or the name of another person residing in the customer’s household, or the name of the customer’s business.

4.2.4 Transfer of Permit. The permit shall only be allowed to be transferred from one vehicle to another only in certain circumstances, such as when a permitted vehicle is wrecked and/or the customer purchases a new vehicle. In addition, in those circumstances when the Authority allows a permit to be transferred, the Authority may impose a fee for the transfer in such amount as it may establish.

4.2.5 Limitation of Liability. The customer must agree that his or her vehicle is accepted for parking only upon the condition that neither the Authority nor any of its employees are responsible for the vehicle or its contents or accessories. Parking in the Authority's parking lots shall be at the customer’s own risk. Neither the Authority nor any of its employees shall be responsible for any personal injuries or for damage to, or theft of, the vehicle or its contents or accessories. The customer must also agree that the Authority, by issuing a parking permit to the customer, is granting the customer only a license to park in its parking lots and that no bailment is created.

4.2.6 Parking Rules and Regulations. The customer must agree to comply with all applicable rules, regulations and procedures regarding permit parking in the Authority's parking lots, as they may be amended and supplemented from time to time, and to follow the instructions of the Authority’s parking lot personnel. In particular, on-site terminal parking permit holders must acknowledge and agree that they are not “guaranteed” spaces at the terminal

Part G: 6 Last Revised: March 21, 2017

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and that, if there are no spaces available there, they will follow the instructions of the Authority's parking lot personnel and, if requested to do so, park at an off-site parking facility.

4.2.7 Revocation of Permit. The customer must agree that if he or she alters the permit or transfers it from one vehicle to another, or if he or she willfully violates any of the Authority's rules, regulations or procedures regarding permit parking in the Authority's parking lots, the permit will be revoked and confiscated without any refund, and the customer will be prohibited thereafter from participating in the Authority's parking permit program.

4.2.8 Entire Agreement. The customer must acknowledge that no employee of the Authority has the authority to vary any of the terms and conditions of this agreement, and that the permit is issued by the Authority and accepted by the customer upon the foregoing terms and conditions.

5. PARKING AT THE VINEYARD HAVEN AND NANTUCKET TERMINALS.

5.1 Parking at the Vineyard Haven Terminal.

The Authority’s Vineyard Haven terminal has only a few parking spaces that are available for use by the Authority’s customers for medical emergencies only. Any customer who needs to park at the terminal for a medical emergency should contact the Vineyard Haven Terminal Manager or the Terminal Agent on duty. The customer may be required to provide documentation of such an emergency before being allowed to use any parking that may be available. The customer will also be required to pay parking charges for the use of the space, in such amounts as are established from time to time by the Authority.

5.2 Parking at the Nantucket Terminal.

The Authority’s Nantucket terminal has only a few parking spaces for use by the Authority’s customers. The spaces are made available on a first-come/first-served basis to those customers traveling on the Authority’s ferries, at the discretion of the Nantucket Terminal Manager and/or the Terminal Agent on duty. Parking for the first calendar day (or portion thereof) is free, but the customer must pay parking charges for each subsequent calendar day or portion thereof that the vehicle is parked or stored there, in such amounts as are established from time to time by the Authority.

Part G: 7 Last Revised: March 21, 2017

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6. COMPLIMENTARY PARKING.

6.1 Authority and Port Council Meetings.

When the Authority has suitable parking spaces available, it provides free parking to the public for the purpose of attending any meeting of the Authority or the Port Council. Such free parking is only provided on the particular day of the meeting, only to those individuals who actually attend the meeting, and only at such terminal and/or other facility designated by the Authority. (For example, the Authority may provide free parking at its Hyannis terminal for mainland residents who are attending an Authority meeting on Nantucket, in which event the Authority may also provide those residents with free passage on its ferries that day in order to attend the meeting.)

6.2 Other Complimentary Parking.

Except as previously described in this Part G, the Authority generally does not provide any free or complimentary parking to the public. In his or her discretion, however, the Authority’s General Manager may authorize free parking for a customer at such terminal or facility and for such time period as the General Manager deems appropriate. For example, the General Manager may authorize a few months of free parking at one of the Authority’s mainland terminals for an island resident who needs to travel repeatedly to the mainland for chemotherapy. The General Manager may also authorize free parking for public officials or employees of other governmental entities who are traveling on the Authority’s ferries in connection with the performance of their official duties (but not for their personal use or benefit).

Part G: 8 Last Revised: March 21, 2017

332 August 2020 Port Council Meeting Part H – Miscellaneous Services

H. MISCELLANEOUS SERVICES

This Part H describes miscellaneous services provided by the Authority. These services include:

. Drive-on/Drive-off Services for customers only on the Hyannis/Nantucket route who are not able to have a driver to drive their vehicles on or off the vessel (Section 1).

. Tow/Push Services for customers who need to have their vehicles towed or pushed onto or off of the vessel because of such reasons as dead batteries, flat tires and engine problems or who need to have trailers towed or pushed onto or off of the vessel (Section 2).

. Vehicle Assistance Services for customers who need special assistance, such as jumpstarting dead batteries or gaining access to their locked vehicles (Section 3).

. A description of the Release and Indemnification Agreement that customers must agree to before the Authority will provide any of the above services (Section 4).

1. DRIVE-ON / DRIVE OFF SERIVCES.

When a vehicle is transported without a driver and the customer fails to have driver on hand at the time of loading or unloading of the vessel, the Authority will provide the customer with an employee to operate the customer’s vehicle in driving it on or off the vessel, as the case may be (drive-on/drive-off services) only at its Hyannis terminal and Nantucket terminal, subject to and in accordance with the following terms and conditions:

1.1 Acceptance of Drive-on/Drive-off Vehicles at the Authority’s Discretion.

1.1.1 The Authority, at its sole judgment and discretion, may refuse to accept for transportation any vehicle for which a customer does not have a driver to drive the vehicle on and off the vessel at the time of the vessel’s loading and unloading. For example, the Authority will not accept such a vehicle when there is no parking available at the vehicle’s destination terminal, or when the Authority has an insufficient number of employees available to operate the vehicle.

NOTE: Section 5.2 of Part A of this Customer Handbook, entitled “Vehicle Standby Travel on the Nantucket Route,” sets forth additional terms and conditions for customers whose vehicles are traveling on a standby basis on the Nantucket route, including those customers who wish to use the Authority’s “drive-on/drive-

Part H: 1 Last Revised: December 15, 2015

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off” services for the vehicle that is traveling. The following restrictions are included in those additional terms and conditions:

(a) Nantucket terminal: Unless the customer is informed by the Authority that he or she should remain at the terminal for possible travel on the next scheduled trip, the customer must depart with his or her vehicle from the Nantucket terminal. No spaces are available to accommodate standby vehicles at that terminal, and therefore there is no physical vehicle standby line there.

(b) Hyannis terminal: If the terminal is then able to accommo- date the parking of standby vehicles of customers using the Authority’s “drive-on/drive-off” services, the customer may leave his or her vehicle at the terminal and it will be transported by the Authority on a standby basis on the next available trip. Otherwise, the customer may depart with his or her vehicle from the terminal instead of waiting there for the next available trip. During the months of July and August, customers whose vehicles are being transported on regular fares may not drop off their vehicles at the Hyannis terminal more than two calendar days in advance of their vehicle reservations. As a result, a customer arriving with his or her vehicle at the Hyannis terminal during those months without a reservation will not be allowed to drop off the vehicle unless the terminal agent determines that it will be able to be shipped to Nantucket within twenty-four (24) hours.

1.1.2 The Authority will not provide drive-on/drive-off services for any vehicle that is twenty (20) feet or more in length unless the customer has a pre- authorized Authority charge account.

1.1.3 The Authority provides drive-on/drive-off services only at its Hyannis terminal and its Nantucket terminal. It does not provide any drive-on/ drive- off services at its Woods Hole terminal, Vineyard Haven terminal, or Oak Bluffs terminal.

1.2 Drive-on/Drive-off Service Charge.

1.2.1 The Authority will assess a service charge for providing the customer with an employee to operate the customer’s vehicle in driving it on or off the vessel, as the case may be. The service charge is assessed each time an Authority employee drives the customer’s vehicle on or off a vessel. Thus, if the Authority is required to drive the vehicle both on and off the vessel,

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two separate service charges will be assessed.) However, the Authority may waive this service charge when, for the Authority’s convenience, the Authority arranges to have the customer’s vehicle transported at certain non-peak travel times or to have the customer’s driver travel separately from the vehicle.

1.2.2 A customer who has purchased “drive-off” services in connection with the transportation of his or her vehicle may remove the vehicle any time (when the destination terminal is open) within twenty-four (24) hours after the vehicle’s arrival at the destination terminal without incurring any additional parking or storage charges. Vehicles remaining at the destination terminal for more than twenty-four (24) hours after their arrival, however, are subject to the normally applicable parking charges. Further, if the Authority is required to move the vehicle to an off-site parking area in Hyannis after that 24-hour period, the Authority will assess a $50.00 service charge for providing the customer with an employee to drive the customer’s motor vehicle to the off-site parking area. The service charge is in addition to any drive-on/drive-off service charge assessed under Section 1.2.1 above and any parking charge assessed under this Section 1.2.2.

1.3 Executed Agreement Required for Drive-on/Drive-off Services.

The Authority will provide drive-on/drive-off services only after the customer agrees electronically or in writing, in a form provided by the Authority, to the terms and conditions set forth in Section 4 below.

2. TOWING / PUSHING SERVICES.

The Authority will provide a customer with an employee and a vehicle (such as a tow motor) to tow or push the customer’s vehicle or trailer onto or off of a vessel at the time of the vessel’s loading or unloading (towing/pushing services), subject to and in accordance with the following terms and conditions:

2.1 Acceptance of Vehicles and Trailers at the Authority’s Discretion.

The Authority, at its sole judgment and discretion, may refuse to accept for transportation any vehicle or trailer that cannot be loaded or unloaded onto a vessel under its own power and needs to be towed or pushed onto or off of the vessel at the time of the vessel’s loading or unloading. For example, the Authority will not accept any such vehicle or trailer if the loading of its vessel(s) may be unduly delayed, or if the appropriate equipment is not available to tow, push and/or transport the vehicle or trailer safely.

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2.1.1 The Authority will not accept for towing or pushing onto or off of a vessel any trailer that weighs more than 7,500 pounds (including its load), or is more than thirty (30) feet in overall length, or is more than eight (8) feet, six (6) inches wide.

2.1.2 Customers should arrange for any towing/pushing services before drop-ping off at an Authority terminal any vehicle or trailer that needs to be towed or pushed. Arrangements may be made by contacting the Terminal Manager for the terminal where the services will be needed. Upon arrangement with the Terminal Manager in advance, customers usually will be allowed to drop off vehicles or trailers at a terminal on Mondays through Thursdays if they are to be towed or pushed shortly after they are dropped off, but during the summer schedule customers generally will not be allowed to drop off vehicles or trailers on Fridays through Sundays to be towed at a later time.

2.2 Towing/Pushing Service Charge.

2.2.1 The Authority will assess a service charge whenever it is required to tow or push a customer’s vehicle or trailer onto or off of a vessel at the time of the vessel’s loading or unloading. If the Authority is required to tow or push the vehicle or trailer both on and off the vessel, two separate service charges will be assessed. This service charge will apply regardless of the reason why the customer’s vehicle or trailer needs to be towed or pushed (e.g., dead battery, flat tire(s), engine problems, key locked inside vehicle).

2.2.2 Any vehicle or trailer that is pushed off an Authority’s vessel at the time of the vessel’s unloading and is not immediately removed from the Authority’s terminal upon reaching its port of destination shall also be subject to parking charges. Further, if the Authority has the vehicle or trailer towed to an off- site parking area in Falmouth or Hyannis, the customer will be responsible for all expenses incurred by the Authority in so having the vehicle or trailer towed off-site. Such parking charges and expenses are in addition to any charge assessed under Section 2.2.1 above.

2.3 Executed Agreement Required for Tow/Push Services.

The Authority will provide tow/push services only after the customer agrees electronically or in writing, in a form provided by the Authority, to the terms and conditions set forth in Section 4 below.

Part H: 4 Last Revised: December 15, 2015

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3. VEHICLE ASSISTANCE SERVICES.

The Authority will provide a customer with vehicle assistance services not otherwise described in this Handbook (such as jumpstarting a vehicle’s dead battery or attempting to open the door or trunk of a customer’s locked vehicle), subject to and in accordance with the following terms and conditions:

3.1 Provision of Such Services at the Authority’s Discretion.

The Authority, at its sole judgment and discretion, may refuse to provide any such vehicle assistance services. For example, the Authority will not provide such services if its employees are needed for other duties, if it does not have the appropriate equipment available to provide such services, or if providing such services would pose a threat to the safety of any of the Authority’s employees.

3.2 Vehicle Assistance Service Charge.

The Authority will assess a service charge of $25.00 per employee per hour (with a minimum service charge of $12.50 per employee) whenever it provides any vehicle assistance services.

3.3 Executed Agreement Required for Vehicle Assistance Services.

The Authority will provide vehicle assistance services only after the customer agrees electronically or in writing, in a form provided by the Authority, to the terms and conditions set forth in Section 4 below.

4. RELEASE AND INDEMNIFICATION AGREEMENT.

The Authority will provide drive-on/drive-off services, tow/push services and/or vehicle assistance services only after the customer agrees electronically or in writing, in a form provided by the Authority, to the following terms and conditions:

4.1 To assume all liability which may arise from the operation of customer’s motor vehicle by the Authority’s employee(s) or otherwise from the provision of the services;

4.2 To indemnify the Authority for any claims arising therefrom; and

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4.3 For drive-on/drive-off services:

4.3.1 that the Authority is providing an employee to operate the customer’s vehicle at the customer’s request and, while the employee is operating the vehicle, the employee shall be deemed an agent of the customer and not of the Authority;

4.3.1 to waive any right to notice of the arrival of the motor vehicle at the port of destination; and

4.3.2 to maintain insurance satisfactory to the Authority which provides coverage for the Authority and its employee, as additional insureds, for claims arising from the employee’s operation of the vehicle.

Part H: 6 Last Revised: December 15, 2015

338 August 2020 Port Council Meeting Part I – Sales and Refunds

I. SALES AND REFUNDS

This Part I describes the Authority’s policies regarding how customers may pay for tickets, ticket books, Lifeline Cards and reservations, under what conditions customers may obtain refunds, and when the Authority will honor a lost vehicle ticket. These policies include:

. The methods of payment for tickets, ticket books, Lifeline Cards and reservations, as well as the conditions of sale for tickets, ticket books and Lifeline Cards, and information regarding Authority charge accounts and gift certificates (Section 1).

. The Authority’s policies regarding the refund and redemption of tickets, ticket books and Lifeline Cards (Section 2).

. The Authority’s policies regarding lost vehicle tickets (Section 3).

1. SALES OF TICKETS, TICKET BOOKS, FERRY PASS CARDS, LIFELINE CARDS AND RESERVATIONS.

1.1 Paying for a Ticket, Ticket Book, Ferry Pass Card, Lifeline Card or Reservation.

Acceptable methods of payment (in United States currency only) for a ticket, ticket book, Ferry Pass Card, Lifeline Card or reservation include:

1.1.1 Cash (only when received in person by the Authority within the applicable time limit).

1.1.2 Travelers checks (only when received in person by the Authority within the applicable time limit) and only upon the Authority’s witnessing the counter- signature of the customer.

1.1.3 Major credit cards (American Express, Discover, Master Card and Visa) and debit cards.

1.1.4 Personal checks (only when received in person by the Authority within the applicable time limit) and for only the amount of the transaction, upon presentation of proper identification, and subject to fees and penalties if not honored by the customer’s financial institution. If a dishonored personal check has been used to pay for a reservation, the reservation will also be canceled.

Part I: 1 Last Revised: March 20, 2018

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1.1.5 Pre-authorized Authority charge accounts, except that that customers traveling on excursion fares may not pay for their reservations or tickets by means of an Authority approved charge account.

1.1.6 A valid Authority gift certificate or gift card.

1.2 Conditions of Sale for Tickets, Ticket Books and Lifeline Cards.

All tickets, ticket books and Lifeline Cards are sold in accordance with and subject to the following express conditions:

1.2.1 Tickets, ticket books or Lifeline Cards that are mutilated, altered or erased are void for passage or refund, and are subject to confiscation by any Authority agent or ticket collector.

1.2.2 Nontransferable tickets, ticket books or Lifeline Cards that are presented for passage by any person other than the original purchaser of the ticket, ticket book or Lifeline Card are also subject to confiscation by any Authority agent or ticket collector.

1.2.3 The Authority is not responsible for the loss of any ticket, ticket book or Lifeline Card.

1.3 Authority Charge Accounts.

1.3.1 The Authority extends credit by means of an Authority Charge Account only to the following customers:

(a) Commercial businesses who transport freight (including rental vehicles) between the mainland and the Islands;

(b) Island hospitals and the Red Cross; and

(c) State and island governmental entities (e.g., counties, towns, school districts, the Martha's Vineyard Commission).

Customers with Authority Charge Accounts may use those accounts only to charge fares for the transportation of freight, ambulances, automobiles and passengers necessary for or incidental to the conduct of their businesses or charitable or governmental purposes, as the case may be, and not for any other purpose.

Part I: 2 Last Revised: March 20, 2018

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1.3.2 An eligible customer must complete and submit a notarized credit application in order to obtain an Authority Charge Account. Commercial businesses must also comply with the following requirements:

(a) The notarized credit application must also list five trade references and one bank that may be contacted by the Authority.

(b) A notarized Personal Guarantee must be completed by either the owner or chief executive officer of the customer stating that he or she is personally responsible for the payment of all charges made by the customer if for any reason the customer does not meet its financial obligation to the Authority; provided, however, that the Authority may waive this personal guarantee requirement if the customer has a BB2 or higher Dun & Bradstreet rating or if the customer provides the Authority with its current audited financial statement showing a minimum net worth of at least $100,000.

(c) Based upon the responses obtained from the customer’s references (as well as the Dun & Bradstreet Credit Advisory Report regarding the customer), the Authority’s Treasurer or Assistant Treasurer will decide whether to approve an Authority Charge Account for the customer and, if so, what the account’s credit limit shall be.

1.3.3 Reservations charged by customers to their Authority Charge Accounts are subject to all the rules and conditions applicable to such reservations, except that customers charging their reservations on their Authority Charge Accounts are not required to pay for their reservations at the time of booking and are not subject to the $10.00 processing charge for any refund due to a reservation cancellation regardless of when the customer notifies the Authority of such cancellation.

1.3.4 Generally on a weekly basis, the Authority will mail a statement to each customer with an Authority Charge Account setting forth:

(a) All trips and other fares and fees charged to the customer’s account since the date of its last statement (together with copies of all new invoices);

(b) All payments and credits applied to the customer’s account since the date of its last statement;

(c) All invoices that were listed in the customer’s prior statement and remain outstanding; and

(d) All finance charges that are due and outstanding.

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1.3.5 A customer is required to pay in full all amounts shown to be due on its statement within ten (10) calendar days after the date set forth on the statement, unless the customer is a governmental entity, in which event it must pay the full amount due within thirty (30) calendar days. In the event a customer fails to pay any amount that is due within the thirty (30) calendar days after the date set forth on the statement, such amount shall be subject to a finance charge equal to one and one-half percent (1.5%) of the unpaid balance per month.

1.3.6 Except for good cause shown (as determined by the Authority in its sole judgment and discretion), the Authority will automatically suspend or cancel the Authority Charge Account of any customer whose account has any amount that has been due and outstanding for at least forty-five (45) days. The Authority may also suspend or cancel the Authority Charge Account of any customer whose account frequently has had any amount that has remained due and outstanding for more than ten (10) days. Reinstatement of suspended or canceled accounts, once amounts in arrears are satisfied, is solely at the discretion of the Authority.

(a) Customers with suspended Authority Charge Accounts may still charge reservations to their Authority Charge Accounts; however, they must pay for the reservation in full by the time of travel.

(b) Customers with canceled Authority Charge Accounts may not charge anything to their Authority Charge Accounts. Any customer whose Authority Charge Account has been canceled must immediately pay for all existing reservations in full or all such reservations will be canceled. Thereafter, the customer must

1.4 Steamship Authority Gift Cards.

1.4.1 Customers may purchase Steamship Authority gift cards over the internet at "http://www.steamshipauthority.com", or by calling (508) 477-8600, or in person at any of the Authority’s terminals and reservation offices. The minimum amount of a gift card is $5.00. They may be purchased by cash, major credit card, travelers check, personal check, or pre-authorized Authority charge account (see Section 1.1 above).

1.4.2 Steamship Authority gift cards may be used to pay for any transaction with the Authority, including paying for tickets, ticket books, Ferry Pass Cards, Lifeline Cards, vehicle reservations, high-speed passenger ferry reservations, parking charges, and purchases from the Authority’s food concessionaire. The gift cards may also be used online, over the telephone, and in person at any of the Authority’s terminals and reservation offices.

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1.4.3 Customers may add to the balances of their Steamship Authority gift cards in any manner as gift cards may be purchased (see Section 1.4.1 above). Balances on gift cards will be valid forever. After presentation of the gift card to pay for any transaction with the Authority, a cash refund may be issued if the remaining value of the card is less than $20.00; provided, however, that the Authority’s Accounting Department will refund the remaining balance on a Steamship Authority gift card, no matter how large, to the original purchaser. To the extent possible, a refund is made in the same manner that the gift card was purchased. A processing fee of fifty cents ($.50) is charged for all refunds.

1.5 Authority Gift Certificates.

1.5.1 In December 2008, the Authority stopped selling Authority gift certificates, which have been replaced by Steamship Authority gift cards (see Section 1.4 above)The final possible redemption date for those gift certificates was seven (7) years from the date of purchase, or December 2015 at the latest; therefore, any remaining gift certificates in existence have no remaining value and cannot be used or traded in for an Authority Gift Card except under specific circumstances approved personally by the Treasurer or General Manager. Valid Authority gift certificates may be used for the same types of transactions as the transactions for which Steamship Authority gift cards may be used, except that gift certificates may be used only in person and, if they are used to pay Authority parking charges, they cannot exceed the amount due.

1.5.2 Gift certificates will be valid for redemption for seven (7) years from the date of purchase. After presentation of the gift certificate for ticket purchases, a cash refund may be issued if the remaining value of the certificate is less than $20.00. Anything over $20.00 will result in a Steamship Authority gift card being issued for the difference; provided, however, that the Authority’s Accounting Department will refund the remaining balance on a gift certificate, no matter how large, to the original purchaser if the certificate has not expired. To the extent possible, a refund is made in the same manner that the gift certificate was purchased. There is a fifty-cents ($.50) processing fee for all refunds.

Part I: 5 Last Revised: March 20, 2018

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2. REFUNDS AND REDEMPTIONS OF TICKETS, TICKET BOOKS, FERRY PASS CARDS, AND LIFELINE CARDS.

The redemption value of an unused or partially used ticket, ticket book or Lifeline Card issued by the Authority will be refunded only upon application by the original purchaser of the ticket, ticket book or Lifeline Card, subject to the following conditions:

2.1 The original purchaser of the ticket, ticket book or Lifeline Card must apply for a refund within one two (12) years from the date of sale of the ticket, ticket book or Lifeline Card, except that the original purchaser of a 10-Ride Ticket Book for travel on the Authority’s ferries between Hyannis and Nantucket may apply for a refund up to two years from the date of the sale of such ticket book.

2.2 A ticket, ticket book or Lifeline Card wholly unused will be redeemed at the fare paid for the ticket, ticket book or Lifeline Card, subject to the service charges described in paragraph 2.4 below.

2.3 A ticket, ticket book or Lifeline Card partially used will be redeemed by allowing the difference, if any, between the value of the transportation furnished on the ticket, ticket book or Lifeline Card at full fares, and the amount originally paid for the ticket, ticket book or Lifeline Card, subject to the service charges described in paragraph 2.4 below.

2.4 A service charge of fifty cents ($.50) for each ticket, ticket book or Lifeline Card will be made for handling the redemption of wholly used or partially used tickets, ticket books or Lifeline Cards, except that there will be no service charge to redeem a ticket, ticket book or Lifeline Card if the ticket, ticket book or Lifeline Card is not used or only partially used for any of the following reasons:

2.4.1 an error on the part of an Authority agent or ticket seller in issuing the ticket, ticket book or Lifeline Card;

2.4.2 a missed connection due to the late arrival of a boat or bus;

2.4.3 an error on the part of an Authority ticket collector in collecting the ticket or a ticket from the ticket book or Lifeline Card;

2.4.4 interruption or lack of boat service on date of arrival.

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2.5 To the extent possible, a refund is made in the same manner that the ticket, ticket book or Lifeline Card was purchased (e.g., a refund for a ticket, ticket book or Lifeline Card that was purchased with a credit card will be made by issuing a credit to the customer’s credit card account).

3. LOST VEHICLE TICKETS.

If a customer loses a vehicle ticket issued by the Authority reflecting a scheduled departure, the Authority will issue a replacement ticket in accordance with and subject to the following conditions:

3.1 A replacement ticket will only be issued to a customer on the day of the scheduled departure and at the ferry terminal from which the customer is sailing, upon presentation of proper identification, the submission of a “Lost Ticket Application,” and the payment of an additional $10.00 processing charge.

3.2 Upon issuance of a replacement ticket, the original vehicle ticket issued by the Authority shall become void and ineligible for any refund or any use for transportation. Nevertheless, a customer who receives a replacement ticket based upon his or submission of a “Lost Ticket Application” shall remain financially responsible for the ticket if it is presented for transportation and mistakenly honored by the Authority.

Part I: 7 Last Revised: March 20, 2018

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Part I: 8 Last Revised: March 20, 2018

346 August 2020 Port Council Meeting Part J - Security

J. SECURITY

1. GENERAL SECURITY PROCEDURES.

In compliance with the Maritime Transportation Security Act of 2002, the following policies have been developed and implemented to assure the security of the Authority’s terminals and vessels and safe sailing for the Authority’s passengers and crews:

1.1 Only baggage accompanied by a ticketed passenger is permitted on the luggage carts.

1.2 Access to the Authority’s vessels is limited to those individuals with tickets or official Authority identification.

1.3 Walk-on passengers are closely monitored by Authority personnel and, when appropriate, by law enforcement authorities as well.

1.4 The Authority, at its discretion, may randomly confirm passengers’ identification, and may randomly screen passengers, their belongings and their vehicles. Passengers who refuse to submit to such screening, searches and inspection will not be allowed to board any vessel.

1.5 Once boarded, passengers are not permitted to disembark without the Master’s permission until the vessel has departed and reached its destination.

1.6 The Master of a vessel has the right to seize any item he or she deem to be dangerous and to detain any person possessing such item pending the arrival of law enforcement authorities.

2. FIREARMS, OTHER WEAPONS, EXPLOSIVES AND INCENDIARIES.

Except as provided in this section, no person shall carry on Steamship Authority property or on board a Steamship Authority vessel any deadly or dangerous weapon, concealed or unconcealed, either on or about his or her person or within his or her accessible property. Part J: 1 Last Revised: June 1, 2007

347 August 2020 Port Council Meeting Part J - Security

2.1 Firearms.

A person licensed to carry firearms in accordance with Mass. G.L. c. 140, § 129B, or Mass. G.L. c. 140, § 131, shall be allowed to carry them on Steamship Authority property and on board a Steamship Authority vessel in accordance with the provisions and restrictions of his or her license, subject to the following additional restrictions:

2.1.1 Persons carrying firearms must identify themselves.

(a) Immediately upon entering onto Steamship Authority property, the person must identify himself or herself to the Terminal Manager (or in the Terminal Manager’s absence, the Terminal Agent, Assistant Agent or other Authority employee acting in that capacity) and present his or her valid License to Carry Firearms or Firearms Identification Card.

(b) Prior to boarding a Steamship Authority vessel, the person must identify himself or herself to the Vessel Captain and Vessel Security Officer (VSO) and present his or her valid License to Carry Firearms or Firearms Identification Card.

2.1.2 Firearms must be unloaded and secured.

(a) If a person is licensed to carry a concealed firearm, he or she may do so; provided, however, that the weapon must remain concealed and unloaded at all times under the direct control of such person and any ammunition is secured separately.

(b) All other persons carrying firearms must keep them unloaded and in a secure closed case at all times with any ammunition secured separately. If the person is traveling with a vehicle, the case containing the firearm shall be kept in the vehicle, which must be locked or attended at all times. If the person is traveling without a vehicle, the person shall notify the Terminal Manager, Vessel Captain and VSO, and make appropriate arrangements with the VSO to secure the firearm while the vessel is underway. Rifles and shotguns shall not be carried among passengers.

2.1.3 A person who has a firearm under his or her control shall neither consume nor be under the influence of alcohol or any illegal drug while on Steamship Authority property or on board any Steamship Authority vessel.

Part J: 2 Last Revised: June 1, 2007

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2.2 Prohibited Dangerous Weapons.

No person may carry on Steamship Authority property or on board a Steamship Authority vessel any dangerous weapon prohibited by Mass. G.L. c. 269, § 10(b). Such prohibited weapons include, but are not limited to, stilettos, daggers, knives with double-edged blades, ballistic and switch knives, blowguns, blackjacks, metal knuckles and objects of like kind.

2.3 Fireworks, Explosives and Incendiary Devices.

No person may carry on Steamship Authority property or on board a Steamship Authority vessel any fireworks, firecrackers, blasting agents, bombs or similar explosive or incendiary devices as defined in Mass. G.L. c. 148, §§ 35 & 39, unless he or she is properly licensed, has received the written permission of the appropriate Terminal Manager(s) and Vessel Captain(s), and transports such devices on vessel trips designated for the carrying of hazardous cargo, strictly complying with all directions given by the Terminal Manager(s) and Vessel Captain(s) regarding the conditions under which such devices are to be carried on those trips.

2.4 Terminal Agents May Impose Additional Restrictions.

Notwithstanding the foregoing, in his or her discretion, a Terminal Manager (or in the Terminal Manager’s absence, the Terminal Agent, Assistant Agent or other Authority employee acting in that capacity) may place additional restrictions on any person carrying a firearm or another dangerous device on Steamship Authority property, and/or may prohibit any person from carrying a firearm or another dangerous device on Steamship Authority property altogether for good cause shown. Good cause shall include, but not be limited to:

2.4.1 When the person is engaging in behavior that is threatening, intimidating, or menacing or otherwise appears to incite a breach of the peace; or

2.4.2 When the person refuses to comply with the directions of terminal employees; or

2.4.3 During times of heightened security (MARSEC Level 2 or MARSEC Level 3).

2.5 Vessel Captains May Impose Additional Restrictions.

Notwithstanding the foregoing, in his or her discretion, a Vessel Captain may place additional restrictions on any person carrying a firearm or another dangerous device on board a Steamship Authority vessel, and/or may prohibit any person from

Part J: 3 Last Revised: June 1, 2007

349 August 2020 Port Council Meeting Part J - Security

carrying a firearm or another dangerous device on board a Steamship Authority vessel altogether at any time.

2.6 Inapplicability to Law Enforcement Officers and Military Personnel.

The provisions of this section shall not apply to any law enforcement officer, agent or employee, nor to any member of the military or other service of the United States or the Commonwealth of Massachusetts; provided, however, that any such person is authorized by a competent authority to carry the firearm, weapon or another dangerous device so carried and is acting with the scope of his or her duties.

3. OTHER POTENTIALLY DANGEROUS ITEMS.

3.1 Unauthorized Potentially Dangerous Items.

The Authority shall not allow any customer to enter the Authority’s facilities and/or board a vessel with any unauthorized explosive, incendiary device, or other item that could result in a significant loss of life, significant environmental damage, a significant disruption to the transportation system, or a significant economic disruption in a particular area. Upon the discovery of such an item:

3.1.1 if the item inherently presents a significant danger to persons or property (e.g., a live grenade), the Authority shall immediately contact the local law enforcement authorities and follow their instructions; provided, however, that no attempt shall be made to prevent any customer in the possession of such an item from leaving the Authority’s property.

3.1.2 if the item inherently does not present a significant danger to persons or property (e.g., fireworks that may be safely stored in a secure manner), the Authority shall inform the customer that he or she will not be allowed entry and/or boarding with the item. The Authority also shall advise the customer that he or she may either:

(a) immediately leave the Authority’s property with such item; or

(b) turn the item over to the Authority, which will then be responsible for the item’s proper disposal. In this event, the Authority shall keep a record of any such item turned over by a customer and shall notify the appropriate law enforcement authorities that it is in possession of the item. Depending upon the nature of the item, the authorities may decide to retrieve it forthwith or at a later time in the normal course of business.

Part J: 4 Last Revised: June 1, 2007

350 August 2020 Port Council Meeting Part J - Security

3.2 Authorized Potentially Dangerous Items.

Upon the discovery of any other substance or device that is legally in the possession of a customer but nonetheless poses a danger to vessels, facilities, passengers or crew (e.g., hunting rifles), the Authority shall follow the provisions of its Policy regarding Firearms, Other Weapons, Explosives and Incendiaries (Section 3.4 of the Authority’s Rules and Regulations Governing Public Conduct on Terminal Property). Generally, pursuant to that policy, the Authority may:

3.2.1 allow such entry and/or boarding, provided that the substance or device is rendered inoperable or otherwise secured in such a manner as to eliminate or reasonably minimize the threat of danger to vessels, facilities, passengers and crew; or

3.2.2 at the discretion of the Terminal Manager or Agent, Captain, Facility Security Officer and/or Vessel Security Officer, refuse to allow the customer to enter the Authority’s facilities and/or board a vessel with such substance or device.

Part J: 5 Last Revised: June 1, 2007

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Part J: 6 Last Revised: June 1, 2007

352 August 2020 Port Council Meeting Part K - Accessibility

K. ACCESSIBILITY

1. GENERAL ASSISTANCE.

1.1 The Authority will attempt to accommodate the special reservations needs of customers with disabilities or who are traveling with another individual with a disability. Such customers may contact the Authority (see Part E, Section 1.3, of this Handbook) in order to discuss their particular situations and review what accommodations the Authority can provide. TDD for the hearing impaired – (508) 540-1394

1.2 Generally, if a customer traveling with a vehicle reservation needs assistance because of a disability, the Authority’s Reservations Office will add this information to the customer’s reservation so that the terminal employees at the terminal of departure will be alerted to the customer’s needs. At the time of boarding, the terminal employees will in turn inform the vessel’s crew of the customer’s need for assistance while on the vessel.

2. ACCESSIBLE VESSELS.

2.1 Fully Accessible Vessels. All passenger area of the following vessels are accessible by elevator: the M/V Eagle, the M/V Island Home, the M/V Martha's Vineyard, the M/V Nantucket, and the M/V Woods Hole.

2.2 Partially Accessible Vessels. Although not all passenger areas of the following vessels are accessible by elevator, certain passenger areas are accessible so that passengers with disabilities are provided with all passenger amenities: the M/V Iyanough, the M/V Governor and the M/V Sankaty.

2.3 Vessels That Are Not Accessible. None of the passenger areas on the following vessels are accessible by elevator, and passengers with disabilities do not have access to all passenger amenities: the M/V Gay Head and the M/V Katama.

Part K: 1 Last Revised: June 21, 2018

353 August 2020 Port Council Meeting Part K - Accessibility

3. POLICIES TO ASSIST INDIVIDUALS WITH DISABILITIES.

3.1 Availability of Accessible Parking Spaces.

A certain number of parking spaces at each of the Authority’s terminals (and also at the more convenient of its mainland off-site parking facilities) are reserved for use as accessible parking spaces. If such an accessible parking space is used on a daily basis, it is subject to the daily parking charges; if the customer using an accessible parking space is eligible, he or she may purchase a parking permit in lieu of paying the daily parking charge. See Part G of this Handbook.

3.2 Advance Reservation of Preferred Spaces by Eligible Customers.

The Authority allows preferred spaces to be reserved in advance by eligible customers who must travel with their vehicles due to their disabilities; provided, however, that such reservations must be made in accordance with the guidelines set forth in Part F, Section 3.5, of this Handbook.

3.3 Preferential Boarding of Individuals with Disabilities Traveling on Standby.

The Authority allows the preferential boarding of vehicles of individuals traveling on a standby basis and who must travel with the vehicles due to their disabilities, in accordance with the guidelines set forth in Part A, Section 5.3, of this Handbook.

3.4 Emergency Transportation Policy.

In certain emergency situations, the Authority allows the preferential boarding of a customer’s vehicle so that an individual can receive emergency medical care on the mainland which is not available on the island, in accordance with the Authority’s Emergency Transportation Policy. See Part A, Section 4.3, of this Handbook.

3.5 Discounted Passenger Fares.

Individuals with disabilities may apply for a “Steamship Authority Transportation Access Pass.” If eligible, they then receive discounted passenger fares upon presentation of the pass with appropriate identification. (See Part B, Section 2.2.2, of this Handbook). Blind passengers travel for free with an identification from either the Massachusetts Commission for the Blind or a similar agency of another State. (See Part B, Section 2.2.3, of this Handbook).

Part K: 2 Last Revised: June 21, 2018

354 August 2020 Port Council Meeting Part K - Accessibility

4. AVAILABILITY OF A COMPLAINTS RESOLUTION OFFICIAL (“CRO”).

4.1 Customer’s Right to Contact the Authority’s CRO.

In any situation when any person complains or raises a concern with an Authority employee about discrimination, policies or services with respect to passengers with a disability, and the employee (or the employee’s supervisor) does not immediately resolve the issue to the customer’s satisfaction or provide a requested accommodation, the customer has the right to contact the Authority’s Complaints Resolution Official (“CRO”). The employee will provide the customer with the CRO’s phone number and, if requested by the customer, the number of the Massachusetts TRS service (which is a relay service for individuals who use text telephones called “MassRelay”). The employee will also provide this information to the customer in a format he or she can use.

4.2 CRO’s Availability for Contact by Telephone.

The CRO will be available for contact on each vessel and at each terminal via telephone. The customer will be allowed to use an Authority phone (either the vessel’s phone or the terminal’s phone, as the case may be) to contact the CRO so that the call will be at no cost to the customer. In addition, the number for the MassRelay service will be available so that persons with hearing impairments may readily communicate with the CRO. The MassRelay service is available within Massachusetts only. The telephone number for the MassRelay service is 711, or customers may choose to call 1-800-439-2370 (TTY/ASCII) or 1-800-439-0183 (voice), among other telephone numbers.

4.3 Authority of the CRO.

The CRO has the authority to make dispositive resolution of complaints on behalf of the Authority. This means that the CRO has the power to overrule the decision of any personnel, except that the CRO may not countermand a decision of the master of a vessel with respect to safety matters.

4.4 Designation of the CRO.

The Authority has designated General Counsel Terence G. Kenneally to be its CRO. His telephone number is (508) 289-4301. If he does not answer the phone, the customer should leave a voicemail message asking Mr. Kenneally to call the customer back (and identifying the telephone number which Mr. Kenneally should

Part K: 3 Last Revised: June 21, 2018

355 August 2020 Port Council Meeting Part K - Accessibility call). If Mr. Kenneally does not promptly return the customer’s call, the customer should then call one of the Authority’s substitute CRO’s, as follows:

4.4.1 For the vessels: Port Captain Charles M. Monteiro – (508) 289-4213

4.4.2 For the terminals: Director of Shoreside Operations Alison A. Fletcher – (508) 289-4219.

Part K: 4 Last Revised: June 21, 2018

356 August 2020 Port Council Meeting Part L – Hazardous Cargo

L. HAZARDOUS CARGO

1. GENERAL REQUIREMENTS FOR HAZARDOUS CARGO TRANSPORT.

Except for the incidental carrying of small tanks of gasoline, propane, acetylene or oxygen by customers in vehicles in compliance with Section 2 below, vehicles carrying certain commodities, including but not limited to gasoline, heating oil, oxygen (compressed or liquid), propane, kerosene and other hazardous or flammable products, are required to travel only on certain restricted trips of the Authority’s freight boats (generally called “hazardous cargo” trips). Vehicles carrying any such hazardous cargo will be accepted for transportation on such trips only upon the following conditions:

1.1 That the customer makes prior arrangements with the Authority for the transportation of the vehicle so that the Authority may, if appropriate, refuse to accept or transport any goods which, in its judgment, are objectionable or likely to damage the vessel, docks, or other cargo, or for which, in the Authority’s judgment, it does not have safe and suitable stowage.

1.2 That the customer complies in all respects with its obligations under 49 CFR Parts 171, 172 and 176 when its hazardous materials are present on Authority property or are being carried on board an Authority vessel.

2. INCIDENTAL CARRYING OF SMALL TANKS OF HAZARDOUS CARGO.

2.1 Securing Approved Containers of Small Quantities of Hazardous Cargo.

No gasoline, propane, acetylene or oxygen (unless a passenger needs oxygen for medical reasons) may be carried on board any vessel by any customer traveling without a vehicle. Customers traveling with vehicles may transport incidental amounts of such hazardous cargo in approved containers only in their vehicles and in compliance with the following conditions. Vehicles towing trailers are treated as a single vehicle and are subject to the same restrictions.

2.1.1 Gasoline.

Motor vehicles and motor boats transported on the Authority’s vessels may have gasoline in their fuel tanks, provided that their gas caps are secured. A motor boat may also have up to two (2) other containers of gasoline not Part L: 1 Last Revised: June 16, 2014

357 August 2020 Port Council Meeting Part L – Hazardous Cargo

exceeding six gallons capacity each if they are in the motor boat, closed and in good condition.

2.1.2 Propane.

A customer traveling with a vehicle may transport one propane tank not exceeding twenty (20) pounds (a barbeque grill style container) per vehicle provided that the container (either UL or United States Coast Guard approved) is in good condition, disconnected from any device, sealed and secured in the vehicle.

2.1.3 Acetylene.

A customer traveling in a commercial vehicle may transport one acetylene tank for use in connection with the customer’s business, provided that the container does not exceed 139 cubic feet capacity, is either UL or United States Coast Guard approved, is in good condition, disconnected from any device, sealed and secured in the vehicle.

2.1.4 Oxygen.

A customer traveling in a commercial vehicle may transport one oxygen tank for use in connection with the customer’s business, provided that the container does not exceed 337 cubic feet capacity, is either UL or United States Coast Guard approved, is in good condition, disconnected from any device, sealed and secured in the vehicle.

2.2 Requirements for Carrying Small Containers of Hazardous Cargo.

2.2.1 Upon arrival at the departure terminal, any customer with hazardous cargo must tell the terminal agent the type and amount of the cargo and how it is being transported. The customer, as well as the customer’s baggage, vehicle and trailer, are then subject to inspection by the Authority, and the customer must follow all instructions given by Authority terminal and vessel employees regarding the transportation of such cargo.

2.2.2 The Authority shall deny passage to any customer attempting to transport more gasoline, propane, acetylene or oxygen than allowed, or in any container that the Authority deems unsafe or not properly secured, or which is not UL or United States Coast Guard approved, or exceeds the maximum allowed capacity. Customers with such hazardous cargo that is prohibited

Part L: 2 Last Revised: June 16, 2014

358 August 2020 Port Council Meeting Part L – Hazardous Cargo

from being carried onto any Authority vessel are responsible for disposing or safely storing such cargo prior to boarding.

2.2.3 Customers will be given the opportunity to relinquish to the Authority any container containing any hazardous cargo that is prohibited from being carried onto any Authority vessel. Customers will be informed that they may pick up their container within forty-eight (48) hours, but that after forty-eight (48) hours the Authority will dispose of the container and its contents, which will no longer be available for pickup. Customers who relinquish their containers will be provided a hazardous container claim ticket. The ticket shall be dated and placed on the container, and the ticket stub given to the customer for reclaim. Tagged containers will be stored in a designated area at the terminal for storage, reclaim and disposal.

3. REQUIREMENTS FOR THE TRANSPORT OF OTHER HAZARDOUS CARGO.

Unless transported in compliance with Section 2, above, the following requirements must be observed with respect to the transportation of any hazardous materials by any of the Authority’s vessels:

3.1 Hazardous material that is not prepared for transportation in accordance with 49 C.F.R. Parts 172 and 173 may not be transported by vessel. 49 C.F.R. § 176.3(a).

3.2 No explosive material described in 49 C.F.R. § 173.54 may be transported by vessel; certain other explosive materials may only be loaded on and unloaded from a vessel at particular facilities and anchorages; and other explosive materials may only be carried in conformance with certain additional requirements. 49 C.F.R. §§ 176.3(b), 176.4(b)&(c), 176.9 and 176.11.

3.3 Each customer, each master of the vessel and all other persons engaged in handling hazardous materials on board the vessel must comply with the applicable provisions of 33 C.F.R. Parts 6, 109, 110, 125, 126 and 160. 49 C.F.R. § 176.4(a).

3.4 The record of training required by 49 C.F.R. § 172.704(d) for a crewmember who is a hazmat employee subject to the training requirements of 49 C.F.R. Parts 171 through 179 must be kept on board the vessel while the crewmember is in service on board the vessel. 49 C.F.R. § 176.13(c).

Part L: 3 Last Revised: June 16, 2014

359 August 2020 Port Council Meeting Part L – Hazardous Cargo

3.5 No hazardous material may be transported by any Authority vessel unless the material is properly described on the shipping paper in the manner prescribed in 49 C.F.R. Part 172 and the customer has received a certificate prepared in accordance with 49 C.F.R. § 172.204. 49 C.F.R. §§ 176.24 and 176.27(a).

3.6 The customer must prepare a dangerous cargo manifest, list or stowage plan, which must be kept in a designated holder on or near the vessel’s bridge and contain certain information including, but not limited to: the name and official number of the vessel; the shipping name and identification number of each hazardous material on board; emergency response telephone numbers as required for each material; the number, description and gross weight of the packages; and the classification of the hazardous materials. 49 C.F.R. § 176.30(a). The manifest must be the same as the information furnished by the shipper on the shipping order, and the vessel’s master must acknowledge the correctness of the dangerous cargo manifest, list or stowage plan by his or her signature. 49 C.F.R. § 176.30(b)(&(c).

3.7 The customer must inspect each hold or compartment containing hazardous materials after stowage is complete. In order to ensure that the cargo is in a safe condition and that no damage caused by shifting, spontaneous heating, leaking, sifting, wetting or other cause has been sustained since loading and stowage, and an entry for each inspection must be made in the vessel’s deck log. 49 C.F.R. § 176.39(a).

3.8 If an accident occurs on board a vessel, hazardous materials may be jettisoned only if the master believes this action is necessary to prevent or substantially reduce a hazard to human life or reduce a substantial hazard to property. 49 C.F.R. § 176.45(b). When the accident results in damaged packages or the emergency use of unauthorized packaging, these packages may not be offered to any forwarding carrier for transportation. 49 C.F.R. § 176.45(a).

3.9 Repairs or work which may produce intense heat (such as welding or the use of power-actuated tools) generally may not be undertaken on any vessel having on board explosives or other hazardous materials as cargo. 49 C.F.R. § 176.54.

3.10 Hazardous materials may be handled on board a vessel only under the direction and observation of a responsible person assigned this duty. 49 C.F.R. § 176.57(a). All decks and gangways over which hazardous materials must be passed or handled in loading or unloading must be free of all loose materials before cargo handling operations begin, and no debris that creates a fire hazard or a hazardous condition for persons engaged in handling hazardous materials may be on the weather deck of a vessel during loading or unloading operations. 49 C.F.R. § 176.58.

Part L: 4 Last Revised: June 16, 2014

360 August 2020 Port Council Meeting Part L – Hazardous Cargo

3.11 When smoking is prohibited during the loading, transportation or unloading of hazardous materials, the customer and the vessel’s master are jointly responsible for posting “NO SMOKING” signs in conspicuous locations. 49 C.F.R. § 176.60.

4. SPECIAL REQUIREMENTS FOR HAZARDOUS TRANSPORT VEHICLES.

Transport vehicles loaded with hazardous materials and transported on board any Authority vessel must comply with the following special requirements in addition to the requirements prescribed in Section 3 above. 49 C.F.R. § 176.88. A transport vehicle containing hazardous materials generally may be transported on board an Authority vessel only under the following conditions:

4.1 The operator or person in charge of the vehicle must deliver to the vessel’s master a copy of the shipping papers and certificate required by 49 C.F.R. §§ 176.24 and 176.27;

4.2 The vehicle must be placed at the location indicated by the vessel’s master;

4.3 The vehicle’s parking brakes must be set securely to prevent movement;

4.4 The vehicle’s motor must be shut off and not restarted until the vessel has completed its voyage and docked;

4.5 All vehicle lights must be cut off and not relighted until the vessel has completed its voyage and docked;

4.6 The vehicle’s operator must remain with the vehicle;

4.7 No repairs or adjustments can be made to the vehicle while it is on the vessel;

4.8 No hazardous materials are to be released from the vehicle;

Part L: 5 Last Revised: June 16, 2014

361 August 2020 Port Council Meeting Part L – Hazardous Cargo

4.9 Any instructions given by the vessel’s master during the voyage and during “roll on” and “roll off” operations must be observed; and

4.10 Smoking by any person in or around a vehicle is prohibited.

5. CERTAIN TYPES OF HAZARDOUS CARGO.

Further regulations govern the transportation on the Authority’s vessels of the following types of hazardous cargo:

5.1 private automobiles carrying certain explosive materials, including permitted fireworks and small arms ammunition (49 C.F.R. § 176.90);

5.2 compressed gas cylinders (49 C.F.R. § 176.92 and 49 C.F.R. Part 176, Subpart H);

5.2 explosive materials as cargo (49 C.F.R. Part 176, Subpart G);

5.3 other flammable and combustible materials as cargo (49 C.F.R. Part 176, Subparts I and J).

6. OPERATION OF VEHICLE REFRIGERATION OR HEATING EQUIPMENT.

Vehicles fitted with refrigerating or heating equipment may also be transported on an Authority vessel; however, the refrigerating or heating equipment may not be operated while the vehicle is on the vessel unless the equipment complies with certain requirements. 49 C.F.R. § 176.93

Part L: 6 Last Revised: June 16, 2014

362 August 2020 Port Council Meeting Part M – Vessel Information

M. VESSEL INFORMATION

1. ALLOCATION OF VEHICLE SPACES.

The capacity of a vessel’s freight deck generally is referred to in terms of the aggregate number of “car-equivalent” spaces available on that freight deck. Thus, a car generally takes up one “car-equivalent” space, while a car with a trailer may take up two “car- equivalent” spaces, and freight trucks may take up to five or more “car-equivalent” spaces. Although the specific number of “car-equivalent” spaces available to be reserved for each one-way vessel trip in accordance with the allocations set forth in Parts E and F of this Handbook depends upon the specific mix of cars and trucks comprising the vessel’s vehicle load for that trip, they generally are as follows:

Normal Capacity (Number of Spaces) (with no luggage carts or bicycles on vessel)

All Cars Cars and Trucks

1.1 Larger Vehicle/Passenger Ferries:

1.1.1 M/V Eagle 54 52

1.1.2 M/V Island Home 60 60

1.1.3 M/V Martha’s Vineyard 54 50

1.1.4 M/V Nantucket 50 50

1.2 Freight Vessels:

1.2.1 M/V Gay Head 39 39

1.2.2 M/V Governor 42 39

1.2.3 M/V Katama 39 39

1.2.4 M/V Sankaty 39 37

1.2.5 M/V Woods Hole 50 44

Part M: 1 Last Revised: June 20, 2017July 24, 2020

363 August 2020 Port Council Meeting Part M – Vessel Information

1.3 Use of Some Vehicle Spaces for Other Purposes.

The Authority also uses a certain number of the available spaces on each of the vessels for other operational purposes. For example, the Authority allocates a number of vehicle spaces on each of its vessels for the placement of baggage carts and bicycles. (This number varies from vessel to vessel, and depends as well on the time of the day, the day of the week, the route, and the season.) However, the Authority does not allocate any spaces for possible use by emergency vehicles such as ambulances. For the Authority’s Emergency Transportation Policy, see Part A of this Handbook. Nor does the Authority hold back on the availability of any spaces in order to provide more spaces for customers traveling on a “stand-by” basis.

1.4 Designation of Spaces for Use in Special Reservation Programs.

1.4.1 A certain number of spaces on each vessel are allocated for commercial vehicles that are more than twenty (20) feet in length based upon the actual number of such vehicles carried by the Authority during the same period the previous year. These spaces remain available only to commercial vehicles that are more than twenty (20) feet in length until the Authority transfers them to the pool of spaces available for reservations by the general public (generally fourteen (14) days before the day of sailing). See Part F, Section 1.2.1, of this Handbook.

1.4.2 The Authority designates a certain number of spaces as “Preferred Spaces.” These spaces are available for reservations in accordance with the procedures set forth in Part F, Section 3, of this Handbook. If any of these allocated spaces are not reserved by before the particular day of sailing, they are transferred to the pool of spaces available for reservations by the general public.

1.4.3 After the completion of the Authority’s Bulk Freight Reservation Program and the allocation of Preferred Spaces, the remaining spaces are placed into the pool of spaces available for reservations by the general public in accordance with Part F, Section 1.2.3, of this Handbook.

Part M: 2 Last Revised: June 20, 2017July 24, 2020

364 August 2020 Port Council Meeting Part M – Vessel Information

2. VESSEL PASSENGER CAPACITIES AND AMENITIES.

The estimated amount of seating (both interior and exterior) and total capacity (including both passengers and crew) of each of the Authority’s vessels are as follows:

Seating Total Interior / Exterior Capacity 2.1 Larger Vehicle/Passenger Ferries: (with full food and beverage counter service)

2.1.1 M/V Eagle 464 / 600 768

2.1.2 M/V Island Home 620 / 425 1,210

2.1.3 M/V Martha’s Vineyard 328 391 / 373325 1,274

2.1.4 M/V Nantucket 263 343 / 332 768

2.2 Freight Vessels: (with beverage vending machines only)

2.2.1 M/V Gay Head 60 / 12 147

2.2.2 M/V Governor 85 / 0 256

2.2.3 M/V Katama 30 / 43 150

2.2.4 M/V Sankaty 86 / 18 300

2.2.5 M/V Woods Hole 279 / 100 453

2.3 High-Speed Passenger-Only Ferries. (with full food and beverage counter service)

2.3.1 M/V Iyanough 347 / 46 400

2.4 Passenger Restrictions on Certain Freight Trips.

Notwithstanding the passenger capacity numbers listed in Section 2.2 above, whenever a vehicle carrying hazardous material is carried on a freight vessel or the draft of that vessel exceeds certain United States Coast Guard limitations, the vessel is allowed to carry only a relatively small number of passengers (between sixteen (16) and twenty-five (25), depending upon the vessel), and those passengers can only be drivers and legitimate helpers (when there is sufficient passenger capacity) of vehicles transporting hazardous cargo or other commercial freight. Part M: 3 Last Revised: June 20, 2017July 24, 2020

365 August 2020 Port Council Meeting - Treasurer/Comptroller's report

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366 August 2020 Port Council Meeting - Treasurer/Comptroller's report

WOODS HOLE, MARTHA’S VINEYARD AND NANTUCKET STEAMSHIP AUTHORITY Report to the Authority’s Board Members – 2019 Audit

July 28, 2020

© 2020 RSM US LLP. All Rights Reserved.

367 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Table of contents

Page Status of the audit 2 Scope of the audit 3 Significant matters addressed during the audit 4-5 Required communications 7-15 Result of compliance audit – Uniform Grant Guidance 16 How to reach us 17

• Exhibit A – Management Representation Letter

This presentation is intended for the information and use of management and the Authority Board Members of Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority and is not intended to be and should not be used by anyone other than these intended parties.

© 2020 RSM US LLP. All Rights Reserved.

368 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Status of the audit

• We have completed our audit of the financial statements of Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority) as of and for the year ended December 31, 2019, in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (GAS), issued by the Comptroller of the United States. • Our opinion on those financial statements is unmodified and is dated June 30, 2020. • We have completed our testing of compliance pursuant to Uniform Grant Guidance as of and for the year ended December 31, 2019 and have issued an unmodified opinion dated June 30, 2020. • We have prepared the following presentation to assist you in fulfilling your obligation to oversee the financial reporting and disclosure process for which management of the Authority is responsible.

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369 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Scope of the audit

The Respective Responsibilities of the Auditor and Management • Our responsibilities under GAAS and GAS have been described to you in our arrangement letter dated February 7, 2020. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities which are also described in that letter. Overview of the Planned Scope and Timing of the Financial Statement Audit • We have issued a separate communication regarding the planned scope and timing of our audit and have discussed with you our identification of and planned audit response to significant risks of material misstatement. • There have been no significant scope changes in the execution of this audit plan. • Our auditing procedures were designed to address the risks identified in our planning communication. No new risks were identified during the course of the audit.

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370 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Significant matters addressed during the audit

Areas of Audit Emphasis

Our audit approach includes a risk assessment process to identify issues and areas on which we focus our audit efforts. Summarized on the following pages are certain significant matters that were addressed during our 2019 audit of the Authority that are complex, non-routine transactions or require significant estimates or judgments by management. In addition to the matters addressed in this section, we have performed procedures on all areas of Authority’s financial statements on which we report.

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371 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Significant matters addressed during the audit (continued)

• Internal accounting and financial reporting controls, including IT • Financial reporting – assessment of disclosures • Accounts receivable and proper revenue recognition • Reporting of residual net position balances • Property, plant and equipment additions and impairments, including assessment of assets placed in service • Proper cut-off of accounts payable and accrued expenses • Self-insured health plan obligations • Litigation and other contingencies • Management override of controls • Uniform Grant Guidance (UGG) compliance – Port Security Grant Program • Subsequent events • Impact of COVID-19 and assessment of going concern considerations

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Required Communications

In connection with the planning and performance of our audit we are required to communicate certain matters to the Board Members. These matters include: − Our responsibility with regard to the financial statement audit − Overview of the planning scope and timing of the financial statement audit − Preferability of accounting policies and practices − Adoption of, or change in, accounting policies − Significant or usual transactions − Management judgment and accounting estimates − Basis of accounting − Audit adjustments − Uncorrected misstatements − Other information in documents containing audited financial statements − Disagreements with management − Consultation with other accountants − Significant issues discussed with management − Difficulties encountered in performing the audit − Result of compliance audit (UGG) − Letters communicating internal control deficiencies − Significant written communications between management and our firm 6

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Required Communications (continued)

Our Responsibility Under Generally Accepted Auditing Standards (GAAS) and Government Auditing Standards (GAS) • Our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States, have been described to you in our arrangement letter dated February 7, 2020. Overview of the Planned Scope and Timing of the Financial Statement Audit • We have issued a separate communication dated February 7, 2020 regarding the planned scope and timing of our audit and have discussed with you our identification of and planned audit response to significant risks of material misstatement. Preferability of Accounting Policies and Practices • Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice.

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Required Communications (continued)

Adoption of, or Change in, Accounting Policies. • Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Authority. The Authority did not adopt any significant new accounting policies, nor have there been any changes in existing significant accounting policies during the current period. It should be noted that there were several complex standards that were required to be implemented in 2019, however, the GASB deferred implementation of certain of these standards due to the impacts of COVID-19 and modified others which eliminated certain potential impacts to the Authority.

Significant or Unusual Transactions • We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Management’s Judgments and Accounting Estimates • Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached Summary of Significant Accounting Estimates. 8

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Required Communications (continued)

Basis of Accounting

The financial statements were prepared on the assumption that the Authority will continue as a going concern. During the audit, we noted the following events or conditions that indicated the possibility of substantial doubt about the Authority’s ability to continue as a going concern: • On January 30, 2020, the World Health Organization declared the coronavirus outbreak a “Public Health Emergency of International Concern” and on March 10, 2020 declared it to be a pandemic. Actions taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, include the geographical area in which the Authority operates. We evaluated management’s assessment of the events and conditions and concluded that there was not substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

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376 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Required Communications (continued)

Audit Adjustments • Audit adjustments, other than those that are clearly trivial, proposed by us and recorded by the Authority are shown below:

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377 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Required Communications (continued)

Uncorrected Misstatement • Audit adjustments, other than those that are clearly trivial, proposed by us and recorded by the Authority are shown below:

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Required Communications (continued)

Other Information in Documents Containing Audited Financial Statements • Our responsibility for other information in documents containing the Authority’s audited financial statements is to read the information and consider whether its content or manner of its presentation is materially consistent with the financial information covered by our auditor’s report or whether it contains a material misstatement of fact. We read the Authority’s Management’s Discussion and Analysis and supplemental information and agreed the information contained therein to audited financial data and other supporting documentation as applicable. We did not identify material inconsistencies with the audited financial statements. Disagreements with Management • We encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the financial statements.

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379 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Required Communications (continued)

Consultations with Other Accountants • We are not aware of any consultations management had with other accountants about accounting or auditing matters. Significant Issues Discussed with Management Following is a description of significant issues arising from the audit that were discussed with management: • The mortality tables used within the actuarial report for the Authority’s pension plan were superseded prior to its issuance. Our internal valuation specialist estimated the change in total pension liability, if the mortality assumption was updated to the Pub-2010 mortality table, would be material to the financial statements. Subsequent to a discussion with management, the actuarial report was updated resulting in an increase in the total pension liability of $2,064,383.

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380 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Required Communications (continued)

Significant Issues Discussed with Management • During the current year, there were a number of new accounting pronouncements which required implementation for reporting in these financial statements. One of those pronouncements, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, would have resulted in significant changes to the financial statement presentation. Prior to implementation, the GASB identified a significant flaw in the standard which would have required the Authority to implement this standard for the Authority’s defined contribution plan in addition to the Authority’s defined benefit plan. The standard setters did not intend this to be a consequence of this standard. The GASB undertook immediate action to fix this flaw, only to then ultimately delay the implementation of this and other standards due to the impacts of COVID- 19. These significant swings in the implementation requirements required significant effort by the management team to understand and implement the standard appropriately and to gather all of the information necessary to properly report, in spite of the fact that this standard was ultimately not implemented.

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381 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Required Communications (continued)

Significant Difficulties Encountered in Performing the Audit • We did not encounter any significant difficulties in dealing with management during the audit. Letter Communicating Significant Deficiencies and Material Weaknesses in Internal Control Over Financial Reporting and Compliance • In our report in accordance with the Uniform Guidance, we have communicated two significant deficiencies in internal control over compliance and one finding related to compliance identified during our testing of federal awards. We have separately communicated other recommendations for best practices and recommendations in a separate communication to management. None of those matters rise to the level of a matter required to be reported to those charged with governance. Significant Written Communications Between Management and Our Firm • Copies of significant written communications between our firm and the management of the Authority, including the representation letter provided to us by management, are attached as Exhibit A.

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382 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Result of compliance audit – Uniform Grant Guidance (UGG)

This year’s audit was also performed in accordance with the UGG: Financial Statement Findings a. Internal control over financial reporting – none noted b. Compliance – none noted

Findings and Questioned Costs for Federal Awards a. Internal control over compliance − Noncompliance with Equipment Management Requirements b. Compliance − Noncompliance with Equipment Management Requirements − Untimely Filing of Data Collection Form

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383 August 2020 Port Council Meeting - Treasurer/Comptroller's report

How to Reach Us

Dan Bonnette Direct 617 241 2781 Email [email protected]

Tanya Coker-Fergusson Direct 617 241 1262 Email [email protected]

Michael Healy Direct 617 241 4614 Email [email protected]

Christopher Hughes Direct 617 241 1247 Email [email protected]

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Exhibit A – Management Representation Letter

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386 August 2020 Port Council Meeting - Treasurer/Comptroller's report

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392 August 2020 Port Council Meeting - Treasurer/Comptroller's report

© 2020 RSM US LLP. All Rights Reserved.

393 August 2020 Port Council Meeting - Treasurer/Comptroller's report

© 2020 RSM US LLP. All Rights Reserved.

394 August 2020 Port Council Meeting - Treasurer/Comptroller's report

RSM US LLP

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This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute audit, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. RSM US LLP, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person. Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed. RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent audit, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. RSM, the RSM logo and the power of being understood are registered trademarks of RSM International Association. © 2020 RSM US LLP. All Rights Reserved.

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395 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority

Financial Statements and Required Supplementary Information

Years Ended December 31, 2019 and 2018

396 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority

FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION Years Ended December 31, 2019 and 2018

C O N T E N T S

Page

Independent Auditors’ Report ...... 1-2

Management’s Discussion and Analysis (Unaudited) ...... 3-17

Financial Statements:

Statements of Net Position ...... 18-19

Statements of Revenues, Expenses and Changes in Net Position ...... 20

Statements of Cash Flows ...... 21

Notes to Financial Statements ...... 22-51

Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Pension Plan (Unaudited) ...... 52

Schedule of Employer Contributions to the Multiemployer Pension Plan (Unaudited) ...... 53

Schedule of Net OPEB Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (Unaudited) ...... 54

397 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Independent Auditor's Report

To the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority:

Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority), as of and for the years ended December 31, 2019 and 2018, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities of the Authority, as of December 31, 2019 and 2018, and the changes in financial position and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

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Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedule of Employer Contributions to the Multiemployer Pension Plan, and the Schedule of Net OPEB Liability and Related Ratios, and the notes to the Required Supplementary Information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Boston, Massachusetts June 30, 2020

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

As management of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority or Steamship Authority), we offer readers of our financial statements the following narrative overview and analysis of our financial activities for the years ended December 31, 2019 and 2018. The Steamship Authority is a public instrumentality created by the legislature of the Commonwealth of Massachusetts (the Commonwealth) under Chapter 701 of the Acts of 1960, as amended (the Act), “in order to provide adequate transportation of persons and necessaries of life for the islands of Nantucket and Martha's Vineyard”. Overview of the Financial Statements This overview and analysis is intended to serve as an introduction to the Authority’s basic financial statements. The Authority is a special-purpose governmental entity engaged in only business-type activities. As such, its financial statements consist of only those required for enterprise funds and the related notes. The Authority’s financial statements include statements of net position, statements of revenues, expenses and changes in net position, and statements of cash flows. In addition to the basic financial statements, this report includes notes to the financial statements and also contains required supplementary information (RSI) pertaining to the pension plans and the other postemployment benefit plan (OPEB) of the Authority. The statements of net position report assets plus deferred outflows of resources, liabilities plus deferred inflows of resources and the difference between them as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. Net position consists of three sections: net investment in capital assets; restricted; and unrestricted. The net investment in capital assets component of the net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. Net position is reported as restricted when constraints are imposed by third parties or enabling legislation. All other net position is unrestricted. The statements of revenues, expenses and changes in net position report the operating revenues and expenses and nonoperating revenues and expenses of the Authority for the year with the difference, the net income or loss, being combined with any capital grants and contributions, income from special-purpose restricted funds, and special items to determine the change in net position for the year. That change combined with the net position at the end of the previous year reconciles to the net position at the end of the current year. The statements of cash flows report cash and cash equivalent activities for the year resulting from operating activities, noncapital financing activities, capital and related financing activities, and investing activities. The net results of these activities added to the beginning of the year cash and cash equivalents balance reconciles to the cash and cash equivalents balance at the end of the current year. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. The basic financial statements can be found on pages 18-50 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain RSI. RSI contains data related to the Authority’s defined benefit pension plan, OPEB plan provided to its employees, and contributions made to the multiemployer plans. The RSI can be found on pages 52-54 of this report.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

Condensed Financial Information Condensed financial information from the statements of net position and the statements of revenues, expenses and changes in net position for the years ended December 31, are as follows:

2019 2018 2017

Current assets $ 19,321,980 $ 20,154,172 $ 22,156,785 Special-purpose restricted funds 22,165,378 35,430,444 38,811,941 Capital assets, net 208,850,378 199,672,741 183,033,512 Total assets 250,337,736 255,257,357 244,002,238

Deferred outflows of resources 5,453,757 4,841,472 4,204,187

Total assets and deferred outflows of resources $ 255,791,493 $ 260,098,829 $ 248,206,425

Current liabilities $ 15,512,995 $ 14,532,652 $ 14,278,931 Liabilities payable from special-purpose restricted funds 8,640,774 8,381,097 7,955,583 Noncurrent liabilities 102,628,911 109,941,031 100,830,775 Total liabilities 126,782,680 132,854,780 123,065,289

Deferred inflows of resources 2,049,416 2,326,822 911,006

Net position: Net investment in capital assets 128,100,255 118,463,899 105,700,370 Restricted 20,539,513 25,726,106 35,380,566 Unrestricted deficit (21,680,371) (19,272,778) (16,850,806) Total net position 126,959,397 124,917,227 124,230,130

Total liabilities, deferred inflows of resources, and net position $ 255,791,493 $ 260,098,829 $ 248,206,425

Operating (loss) income: Total operating revenues $ 110,673,583 $ 104,806,611 $ 102,911,758 Total operating expenses (110,995,500) (104,546,098) (95,018,138) Operating (loss) income (321,917) 260,513 7,893,620

Nonoperating revenues (expenses): Interest on bonds and other obligations (3,719,413) (3,312,809) (3,155,449) Miscellaneous revenue 4,181,406 3,628,633 3,347,832 Miscellaneous expense (26,929) (820,951) (90,035) Nonoperating revenues (expenses) 435,064 (505,127) 102,348

Income (loss) before capital grants and contributions and income from special-purpose restricted funds 113,147 (244,614) 7,995,968

Capital grants and contributions 1,452,638 407,050 1,832,879 Income from special-purpose restricted funds 476,385 524,661 475,284

Change in net position 2,042,170 687,097 10,304,131 Net position—beginning of year 124,917,227 124,230,130 113,925,999 Net position—end of year $ 126,959,397 $ 124,917,227 $ 124,230,130

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS

Comparison of Financial Condition at December 31, 2019 and 2018

The Authority’s total assets and liabilities were $250,337,736 and $126,782,680, respectively, as of December 31, 2019, as compared to $255,257,357 and $132,854,780, respectively, at December 31, 2018. The Authority’s deferred outflows of resources were $5,453,757 and $4,841,472, for the years ended December 31, 2019 and 2018, respectively. The Authority’s deferred inflows of resources were $2,049,416 and $2,326,822, for the years ended December 31, 2019 and 2018, respectively. The net position as of December 31, 2019, was $126,959,397, a 1.6% increase from the prior fiscal year-end.

The increase in total net position was $2,042,170 for the year ended December 31, 2019, up $1,355,073 from the $687,097 increase in total net position posted in 2018. Income before capital grants and contributions and income from special-purpose restricted funds in 2019 increased $357,761, or 146.3%, compared to the prior year.

The increase in income before capital grants and contributions and income from special-purpose restricted funds was attributed to a $5,886,972, or 5.6% increase in the Authority’s operating revenue, offset by a $6,449,402 increase in the Authority’s operating expense, and the net impact of changes in interest on bonds and other obligations, miscellaneous revenue and expenses. These changes are discussed in greater detail in the following sections.

During 2019, the Steamship Authority was awarded grants under the Port Security Grant Program and the Federal Transit Administration. These awards are recorded under the heading Capital Grants and Contributions in the Statements of Revenues, Expenses and Changes in Net Position.

Operating Revenues

The Steamship Authority’s total operating revenues in 2019 were $110,673,583. Total operating revenues increased by $5,866,972 or 5.6% for the year ended December 31, 2019.

The number of passengers carried decreased by 50,911 or 1.7% in 2019 from 2018. Ridership on the conventional service decreased by 14,949 riders or 0.6%, while passenger traffic carried on the M/V Iyanough decreased by 35,962 passengers or 10.5% for the year as compared to 2018. In addition, the average revenue per passenger decreased from $10.68 in 2018 to $10.30 in 2019, due mostly to the decrease in riders on the high-speed service. Total passenger revenues in 2019 were $30,938,007, a decrease of 5.2% versus the previous year.

The number of automobiles carried decreased by 4,057 or 0.8% in 2019 versus 2018. The average revenue per automobile increased from $62.05 in 2018 to $68.88 in 2019, due in part to rate increases for standard fared automobiles. Total automobile revenues in 2019 were $32,991,829, an increase of 10.1% versus the previous year.

The number of trucks carried increased by 4,771 or 2.5% in 2019 from 2018 traffic levels. The average revenue per truck increased from $151.43 in 2018 to $166.97 during 2019, due in part to an overall increase in trucks carried to Nantucket and Martha’s Vineyard as well as rate increases for trucks over 20 feet in length. Total freight revenues in 2019 were $32,612,990, an increase of 13.0% versus the previous year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Revenues…continued

Parking revenue in 2019 increased by $41,722 from 2018, primarily as a result of a rate increase during the summer season at the Falmouth area lots. The total number of cars parked decreased by 9,200 or 5.1% versus 2018. Total parking revenues in 2019 were $7,158,095, an increase of 0.6% versus the previous year.

Other miscellaneous operating revenues increased by $749,257 or 12.0% in 2019, primarily due to increases in cancellation penalties. The major sources of operating revenues for the year ended December 31, 2019, were as follows:

Other 6.3% Freight Parking 29.4% 6.5%

Passengers 28.0%

Automobiles 29.8%

Operating Expenses

The Authority’s total operating expenses in 2019 were $110,995,500; in 2018, total operating expenses were $104,546,098. Total operating expenses in 2019 were $6,449,402, or 6.2% higher than the previous year. Decreases in maintenance expenses and utilities expenses were offset by higher wages and benefits, vessel fuel oil costs, depreciation expense, insurance, and other expense, compared to the prior year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Maintenance expense decreased in 2019 versus 2018 by $732,062, or 3.6%. The decrease was primarily attributable to vessel dry-dock expense decreases of $2,219,560; increases in vessel overhaul expenses of $669,543; increases in engine parts expense of $524,248; dolphin and dock repairs expense decreases of $839,488; and increases in maintenance payroll expenses of $985,809.

Depreciation and amortization expense increased in 2019 versus 2018 by $1,325,257 or 11.5%. The increase is attributable to the addition of the Woods Hole and Vineyard Haven Sewer Pump Out projects and the first phase of the Woods Hole Marine Project.

Vessel operating expenses increased by $2,331,778 or 9.8% versus 2018 expenses. Vessel payroll expense in 2019 increased by $1,504,253 or 9.4% versus 2018 payroll expense. Vessel fuel oil expense of $7,104,567 was $611,508 or 9.4% higher in 2019 than in 2018. The average cost per gallon of fuel used operating, including hedge costs, in 2019 was $2.226, which represents an increase of 17.7% over the average cost per gallon of fuel used operating in 2018 of $2.052. In 2019, the Steamship Authority’s vessels consumed approximately 3,161,000 gallons of fuel, a decrease of 0.1% versus 2018.

Average Cost per Gallon of Vessel Fuel Oil Used (Including Net Hedge Premiums)

$4.000

$3.500

$3.000

$2.500

$2.000

$1.500

$1.000

$0.500

$0.000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVERAGE

2015 2016 2017 2018 2019

During 2019, the Authority operated 23,944 vessel trips, which represented a decrease of 53 trips, or 0.2% versus 2018.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Expenses related to Terminal Operations increased in 2019 versus 2018 by $145,289 or 1.2%. This increase was primarily attributed to a 4.5% or $455,366 increase in payroll costs, a decrease in miscellaneous terminal expenses of $160,355 and a $137,117 decrease in police services.

Expenses to operate Reservations and Customer Service decreased in 2019 versus 2018 by $55,234 or 1.8%. This decrease was primarily attributed to lower telephone expense of $19,311 or 22.6% and lower advertising expense of $30,030 or 2.3%.

General and administrative expense in 2019 increased by $3,434,374 or 10.2% versus 2018. In 2019, administration payroll expense increased by $500,833 or 12.9% versus 2018. Overall pension expense increased by $788,798 or 9.1% versus 2018. Health care costs, principally for the self-funded groups, increased by $1,495,366 or 17.7%; payroll taxes increased by $207,726 or 7.8% versus 2018; while credit card processing expenses increased by $119,281 or 5.8% versus the prior year.

The major sources of operating expenses for the year ended December 31, 2019, were as follows:

Other 13.3%

Direct Maintenance Expense (Excluding Labor) 8.9%

Insurance 3.8%

Vessel Fuel Wages, Oil Benefits and 6.4% Payroll Taxes Depreciation 56.1% 11.5%

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

56.1% of the Authority’s operating expenses in 2019 were attributed to wages and the cost of employee benefits. The Authority’s payroll in 2019 was distributed to the following functions:

Administration 10.9%

Reservations & Customer Service 3.5%

Maintenance 15.6%

Operation of Operation of Terminals & Vessels Parking Lots 43.6% 26.4%

Nonoperating Revenues (Expenses)

The Authority’s total nonoperating revenues in 2019 were $435,064 which was an increase of $940,191 over the total nonoperating expenses of $505,127 in 2018. Expenses for interest on bonds and other obligations of $3,719,413 in 2019 was an increase of $406,604 over the $3,312,809 in 2018. Miscellaneous revenue of $4,181,406 in 2019 increased by $552,773 over 2018, due mostly to an increase in license income and interest income, while miscellaneous expenses in 2019 decreased by $794,022 as compared to 2018 primarily due to a loss on the sale of property in 2018 but not in 2019.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Comparison of Financial Condition at December 31, 2018 and 2017

The Authority’s total assets and liabilities were $255,257,357 and $132,854,780, respectively, as of December 31, 2018, as compared to $244,002,238 and $123,065,289, respectively, at December 31, 2017. The Authority’s deferred outflows of resources were $4,841,472 and $4,204,187, for the years ended December 31, 2018 and 2017, respectively. The Authority’s deferred inflows of resources were $2,326,822 and $911,006, for the years ended December 31, 2018 and 2017, respectively. The net position as of December 31, 2018, was $124,917,227, a 0.6% increase from the prior fiscal year-end.

The increase in total net position was $687,097 for the year ended December 31, 2018, down $9,617,034 from the $10,304,131 increase in total net position posted in 2017 due to the increase in operating expenses. Income before capital grants and contributions and income from special-purpose restricted funds in 2018 decreased $8,240,582, or 103.1%, compared to the prior year.

The decrease in income before capital grants and contributions and income from special-purpose restricted funds was attributed to a $1,894,853, or 1.8% increase in the Authority’s total operating revenues and a $9,527,960, or 10.0% increase in the Authority’s total operating expenses. Total nonoperating revenue decreased by $607,475. These changes are discussed in greater detail in the following sections.

During 2018, the Steamship Authority was awarded grants under the Port Security Grant Program. These awards are recorded under the heading Capital Grants and Contributions in the Statements of Revenues, Expenses and Changes in Net Position.

Operating Revenues

The Steamship Authority’s total operating revenues in 2018 were $104,806,611. Total operating revenues increased by $1,894,853 or 1.8% for the year ended December 31, 2018.

The number of passengers carried decreased by 3,702 or 0.1% in 2018 from 2017. Ridership on the conventional service decreased by 44,078 riders or 1.6%, while passenger traffic carried on the M/V Iyanough increased by 40,376 passengers or 13.3% for the year as compared to 2017. In addition, the average revenue per passenger increased from $10.31 in 2017 to $10.68 in 2018, due mostly to the increase in riders on the high-speed service. Total passenger revenues in 2018 were $32,640,122, an increase of 3.5% versus the previous year.

The number of automobiles carried increased by 1,622 or 0.3% in 2018 versus 2017. The average revenue per automobile increased from $61.93 in 2017 to $62.05 in 2018, due in part to a change in the mix of automobiles carried on the Martha’s Vineyard and Nantucket routes as well as the increase in ridership during the on season. Total automobile revenues in 2018 were $29,970,953, an increase of 0.5% versus the previous year.

The number of trucks carried increased by 1,169 or 0.6% in 2018 from 2017 traffic levels. The average revenue per truck increased from $149.15 in 2017 to $151.43 during 2018, due in part to an overall increase in trucks carried to Nantucket and Martha’s Vineyard as well as the increase in ridership of the larger trucks. Total freight revenues in 2018 were $28,855,758, an increase of 2.2% versus the previous year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Revenues…continued

Parking revenue in 2018 decreased by $32,742 from 2017, primarily as a result of a decrease in cars parked at the Falmouth area lots. The total number of cars parked decreased by 2,323 or 1.3% versus 2017. Total parking revenues in 2018 were $7,116,373, a decrease of 0.5% versus the previous year.

Other miscellaneous operating revenues increased by $49,099 or 0.8% in 2018, primarily due to increases in dockage fees and miscellaneous driver service charges. The major sources of operating revenues for the year ended December 31, 2018, were as follows:

Other 5.9% Freight Parking 27.5% 6.8%

Passengers 31.1%

Automobiles 28.7%

Operating Expenses

The Authority’s total operating expenses in 2018 were $104,546,098; in 2017, total operating expenses were $95,018,138. Total operating expenses in 2018 were $9,527,960, or 10.0% higher than the previous year. Decreases in operating rents were offset by higher wages and benefits, vessel fuel oil costs, depreciation expense, maintenance expense, utilities, and other expense, compared to the prior year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Maintenance expense increased in 2018 versus 2017 by $4,319,737, or 27.4%. The increase was primarily attributable to vessel dry-dock expense increases of $1,503,390; increases in vessel overhaul expenses of $1,016,824; increases in engine parts and engine repair expense of $84,175; life raft renewal increases of $54,695; dolphin and dock repairs expense increases of $858,918; and increases in hardware and software maintenance of $462,707.

Depreciation and amortization expense increased in 2018 versus 2017 by $627,403 or 5.8%. The increase is attributable to the addition of a full year of depreciation for the Woods Hole Temporary Terminal Building and a partial year for the M/V Martha’s Vineyard Mid-Life Refurbishment and the General Administration building.

Vessel operating expenses increased by $1,574,828 or 7.1% versus 2017 expenses. Vessel payroll expense in 2018 increased by $680,883 or 4.5% versus 2017 payroll expense. Vessel fuel oil expense of $6,493,059 was $703,449 or 12.2% higher in 2018 than in 2017. The average cost per gallon of fuel used operating, including hedge costs, in 2018 was $2.052, which represents an increase of 8.8% over the average cost per gallon of fuel used operating in 2017 of $1.886. In 2018, the Steamship Authority’s vessels consumed approximately 3,165,000 gallons of fuel, an increase of 3.1% versus 2017.

Average Cost per Gallon of Vessel Fuel Oil Used (Including Net Hedge Premiums)

$4.000

$3.500

$3.000

$2.500

$2.000

$1.500

$1.000

$0.500

$0.000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVERAGE

2014 2015 2016 2017 2018

During 2018, the Authority operated 23,997 vessel trips, which represented an increase of 1,154 trips, or 5.1% versus 2017.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Expenses related to Terminal Operations increased in 2018 versus 2017 by $653,254 or 5.5%. This increase was primarily attributed to a 4.2% or $411,428 increase in payroll costs and a $185,653 or 33.9% increase in police services.

Expenses to operate Reservations and Customer Service decreased in 2018 versus 2017 by $44,631 or 1.5%. This decrease was attributed to lower payroll expense of $36,971 or 2.6%; lower traffic expense of $33,811 or 16.0%, offsetting an increase in advertising expense of $30,609 or 2.4%.

General and administrative expense in 2018 increased by $2,397,369 or 7.7% versus 2017. In 2018, administration payroll expense increased by $239,916 or 6.6% versus 2017. Overall pension expense increased by $360,397 or 4.3% versus 2017. Health care costs, principally for the self-funded groups, increased by $827,196 or 10.9%; unemployment contributions increased by $237,071 or 35.9%; long term disability expense increased by $30,801 or 5.3%; while credit card processing expenses increased by $47,377 or 2.4% versus the prior year.

The major sources of operating expenses for the year ended December 31, 2018, were as follows:

Other 14.0%

Direct Maintenance Expense (Excluding Labor) 11.1%

Insurance 3.8% Wages, Benefits and Payroll Taxes 53.9% Vessel Fuel Oil 6.2% Depreciation 11.0%

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

53.9% of the Authority’s operating expenses in 2018 were attributed to wages and the cost of employee benefits. The Authority’s payroll in 2018 was distributed to the following functions:

Administration 10.6%

Reservations & Customer Service 3.8%

Maintenance 14.3%

Operation of Operation of Vessels Terminals & 43.7% Parking Lots 27.6%

Nonoperating Revenues (Expenses)

The Authority’s total nonoperating expenses in 2018 was $505,127 which were an increase of $607,475 over the total nonoperating revenues of $102,348 in 2017. Expenses for interest on bonds and other obligations of $3,312,809 in 2018 was an increase of $157,360 over the $3,155,449 in 2017. Miscellaneous revenue of $3,628,633 in 2018 increased by $280,801 over 2017, due mostly to an increase in license income, while miscellaneous expenses in 2018 increased by $730,916 as compared to 2017 primarily as a result of the loss associated with the write-off of assets associated with the Woods Hole terminal project.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Special-Purpose Restricted Funds and Fund Transfers in 2019

The Authority’s Enabling Act requires revenue derived from its operation to be set aside each month in a specific order and in amounts as follows: (1) to the Sinking Fund, an amount sufficient to provide for the payment of the interest on and for the amortization and payment of the principal of all bonds as the same shall become due and payable; (2) to the Bond Redemption Fund, all of the remaining revenue to be used within a reasonable time for the purchase or redemption of bonds or, in the Authority’s discretion, to be transferred to the Property Replacement Fund or to the Capital Improvement Fund to be used for any purposes for which bonds may be issued; (3) to the Property Replacement Fund, such amount as the Authority may deem necessary or advisable for depreciation of property and for obsolescence and losses in respect to property sold, destroyed, or abandoned, and for improvements to, and acquisitions of, real and personal property (the Authority’s current policy is to limit any transfers to the Property Replacement Fund in any given year to the amount of the prior year’s depreciation expense); (4) to the Reserve Fund, an amount sufficient to maintain the fund at a level equal to the greater of 5% of the principal amount of all bonds outstanding, exclusive of bonds considered as defeased, or $600,000, whichever is greater; and (5) to the Operations Fund, an amount sufficient to pay the cost of maintenance, repair, and operation of the Steamship Line for the current month and the next ensuing month, and to maintain working capital for such purposes in an amount not to exceed one thirty-sixth of the operating budget for the then- current fiscal year. The Authority’s Sinking Fund balance at December 31, 2019, was $9,283,238, including income from investments of $151,439 during 2019. The Authority’s cash flow during 2019 allowed for transfers to be made to the Sinking Fund to meet the scheduled bond interest payment of $1,671,975 on September 1, 2019, and to provide for the payment of bond interest and principal due on March 1, 2020, in the amount of $1,671,975 and $7,520,000, respectively. At December 31, 2019, the Property Replacement Fund balance was $7,847,154, including income earned from investments of $278,275 during 2019. In addition, $7,817,925 was transferred from the Operations Fund to the Property Replacement Fund, an increase of $819,537 over the previous year’s transfers. Disbursements from the Property Replacement Fund in 2019, totaling $13,673,108 were comprised of the following: Woods Hole Reconstruction – Marine $6,047,215 Shuttle Buses (4) 1,843,987 WH & VH Sewer Pump Outs 1,663,146 Accounting System Replacement 894,529 Woods Hole Temporary Terminal 526,427 Servers for Admin Building 430,204 Motor Vehicles, Trailers, Equipment 414,311 M/V Martha’s Vineyard Mid-Life Reconstruction 341,547 MIS Services & Additional Equipment 329,280 Fairhaven Emergency Generator 313,956 AV1 Parking Equipment / Access Control System 225,814 PC Replacements 211,529 School Street Site Work 134,377 M/V Nantucket Davit 110,000 M/V Governor Generator 106,720 M/V Iyanough & M/V Eagle Radar 49,919 POS System for Concessions 30,147

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Special-Purpose Restricted Funds and Fund Transfers in 2019…continued

The Authority’s Reserve Fund balance at December 31, 2019, was $3,655,683, including income from investments of $87,863 during 2019.

The Authority’s Capital Improvement Fund balance as of December 31, 2019, was $505,091, including income from investments of $89,630. During 2019, disbursements from the Capital Improvement Fund totaled $8,052,781. Fund disbursements in 2019 were for the Woods Hole terminal marine construction totaling $7,974,028; and for debt expense totaling $78,753. Unexpended proceeds from Steamship Bonds are reported as assets of the Capital Improvement Fund.

The Bond Redemption Fund balance was $874,212 at December 31, 2019, including income from investments of $20,618 during 2019.

Investment income from the special-purpose restricted funds amounted to $476,386 during 2019, excluding income from investments in the Sinking Fund of $151,439.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The Authority’s capital assets as of December 31, 2019 and 2018, amounted to $208,771,625 net of accumulated depreciation. The Authority’s investment in capital assets includes vessels, buildings and structures, office and terminal equipment, motor vehicles, land, leasehold improvements, and construction projects in progress. During 2019, the Authority invested $5,786,059 in various capital assets and an additional $16,120,913 was invested in construction projects in progress.

The Authority’s capital assets as of December 31, 2018, amounted to $199,672,741, net of accumulated depreciation. The Authority’s investment in capital assets includes vessels, buildings and structures, office and terminal equipment, motor vehicles, land, leasehold improvements, and construction projects in progress. During 2018, the Authority invested $4,070,238 in various capital assets and an additional $24,850,212 was invested in construction projects in progress.

Capital asset additions were funded through the Authority’s operations funds and special-purpose restricted funds.

More detailed information regarding the Authority’s capital assets activities for 2019 and 2018 can be found in the notes to the financial statements (Note 2).

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

CAPITAL ASSETS AND DEBT ADMINISTRATION…continued

Debt Administration

The Authority is currently authorized under the provisions of the Enabling Act, as amended, to issue bonds in an amount not to exceed $100,000,000 outstanding at any one time. The Authority’s Enabling Act further provides that if at any time any principal or interest is due or about to become due on the Authority’s bonds and the funds to pay the same are not available, the Authority shall certify to the State Treasurer the amount required to meet such obligations and the Commonwealth shall pay over to the Authority the amount so certified. In the opinion of the Authority’s bond counsel, the obligation of the Commonwealth to pay the required amount to the Authority is a general obligation of the Commonwealth and the full faith and credit of the Commonwealth is pledged to make such payment. The Commonwealth has never been called upon to make payments to the Authority to meet such obligations under the provisions of the Enabling Act.

The Authority made scheduled principal payments of $7,145,000 during 2019. In 2018, the Authority made scheduled principal payments of $6,885,000. The total amount of bonds outstanding, net of unamortized premiums of $7,545,822, was $73,450,000 as of December 31, 2019.

The Authority made scheduled principal payments of $6,885,000 during 2018. Also, in August of 2018, the Authority received $18,105,001 of net proceeds from its 2018 Series A bond issuance, with a principal amount of $15,915,000 and a premium of $2,220,192. In 2017, the Authority made scheduled principal payments of $5,805,000. The total amount of bonds outstanding, net of unamortized premiums of $8,870,748, was $80,595,000 as of December 31, 2018.

More detailed information regarding the Authority’s debt administration activities for 2019 and 2018 can be found in the notes to the financial statements (Note 3).

ECONOMIC FACTORS

The Authority’s traffic statistics for the past five years are as follows:

2015 2016 2017 2018 2019

Passengers 3,023,090 3,127,304 3,059,049 3,055,347 3,004,436 Automobiles 465,297 482,699 481,425 483,047 478,990 Trucks 172,861 182,099 189,388 190,557 195,328 Cars parked 183,526 190,026 184,084 181,761 172,561 Trips made 22,437 22,703 22,843 23,997 23,944 Nautical Miles 333,034 337,560 335,622 353,918 351,734

Demand for the Authority’s services is mainly affected by the overall economic activity on Martha’s Vineyard and Nantucket, both seasonally and year-round. The economic activity is a reflection of the overall construction on the islands and other factors, such as weather-related conditions, capacity constraints, and operational limitations, which can also have an impact on the Authority’s annual ridership volumes.

REQUESTS FOR INFORMATION

This report is intended to provide an overview of the Authority’s financial condition. Questions concerning any of the information in this report or requests for additional information should be addressed to the Authority’s Treasurer/Comptroller, 228 Palmer Avenue, Falmouth, MA 02540.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Statements of Net Position December 31, 2019 and 2018

2019 2018

ASSETS Current assets: Cash and cash equivalents $ 11,524,347 $ 13,079,516 Receivables, net 2,225,343 2,131,292 Grants receivable 124,525 217,487 Inventories 585,825 570,205 Prepaid insurance and other 4,045,079 3,648,826 Prepaid fuel hedge 895,614 506,846 Total current assets 19,400,733 20,154,172

Special-purpose restricted funds: Cash and cash equivalents: Sinking fund: Current bond maturities and interest 9,283,238 9,046,734 Redemption of bonds 874,212 853,594 Property replacement fund 7,847,154 13,424,061 Reserve fund 3,655,683 3,637,813 Capital improvement fund 505,091 8,468,242 Total special-purpose restricted funds 22,165,378 35,430,444

Capital assets: Vessels 181,014,446 161,550,147 Terminal buildings and equipment 133,669,290 112,386,801 Land and land improvements 28,591,269 28,591,269 Construction in progress 37,268,268 56,108,084 Less - accumulated depreciation (171,771,648) (158,963,560) Total capital assets, net 208,771,625 199,672,741

Total assets 250,337,736 255,257,357

Deferred outflows of resources: Deferred outflows on pensions 5,453,757 4,841,472 Total deferred outflows of resources 5,453,757 4,841,472

Total assets and deferred outflows of resources $ 255,791,493 $ 260,098,829

See notes to financial statements.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Statements of Net Position…continued December 31, 2019 and 2018

2019 2018

LIABILITIES AND NET POSITION Current liabilities: Accounts payable $ 5,538,129 $ 4,873,785 Accrued wages, vacation pay and expenses 4,238,026 4,377,872 Unearned revenue 5,152,381 4,761,314 Pension withdrawal obligation 584,459 519,681 Total current liabilities 15,512,995 14,532,652

Liabilities payable from special-purpose restricted funds: Accrued interest on Steamship Bonds 1,120,774 1,236,097 Current portion of long-term debt 7,520,000 7,145,000 Total liabilities payable from special-purpose restricted funds 8,640,774 8,381,097

Noncurrent liabilities: Long-term debt, net of current portion 73,475,822 82,320,748 Net pension liabilities 15,055,398 12,967,686 Other postemployment benefits 2,358,498 2,328,945 Pension withdrawal obligations 11,739,193 12,323,652 Total noncurrent liabilities 102,628,911 109,941,031

Total liabilities 126,782,680 132,854,780

Deferred inflows of resources: Deferred inflow gain from advance refunding 117,409 211,336 Deferred inflow on pensions 1,790,025 1,940,865 Deferred inflow on OPEB 141,982 174,621 Total deferred inflows of resources 2,049,416 2,326,822

Net position: Net investment in capital assets 128,242,237 118,463,899 Restricted 20,539,513 25,726,106 Unrestricted (21,822,353) (19,272,778) Total net position 126,959,397 124,917,227

Total liabilities, deferred inflows of resources, and net position $ 255,791,493 $ 260,098,829

See notes to financial statements.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Statements of Revenues, Expenses and Changes in Net Position Years Ended December 31, 2019 and 2018

2019 2018

Operating revenues: Passenger $ 30,938,007 $ 32,640,122 Automobile 32,991,829 29,970,953 Freight 32,612,990 28,855,758 Parking 7,158,095 7,116,373 Other 6,972,662 6,223,405 Total operating revenues 110,673,583 104,806,611

Operating expenses: Operation of vessels 26,041,219 23,709,441 Operation of terminals and parking lots 12,761,132 12,615,843 Maintenance 19,359,419 20,091,481 Reservations, advertising, and other traffic 2,946,905 3,002,139 Depreciation and amortization 12,808,087 11,482,830 General and administrative 37,078,738 33,644,364 Total operating expenses 110,995,500 104,546,098

Operating (loss) income (321,917) 260,513

Nonoperating revenues (expenses): Interest on bonds and other obligations (3,719,413) (3,312,809) Miscellaneous revenue 4,181,406 3,628,633 Miscellaneous expense (26,929) (820,951) Total nonoperating revenues (expenses) 435,064 (505,127)

Income (loss) before capital grants and contributions and income from special-purpose restricted funds 113,147 (244,614)

Capital grants and contributions 1,452,638 407,050 Income from special-purpose restricted funds 476,385 524,661 Change in net position 2,042,170 687,097

Net position, beginning of year 124,917,227 124,230,130

Net position, end of year $ 126,959,397 $ 124,917,227

See notes to financial statements.

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Page 21 Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Statements of Cash Flows Years Ended December 31, 2019 and 2018

2019 2018 Cash flows from operating activities: Payments from customers $ 110,879,615 $ 104,773,199 Payments to employees for services (40,175,447) (36,511,566) Payments to suppliers and contractors (56,005,727) (56,079,618) Net cash provided by operating activities 14,698,441 12,182,015

Cash flows from noncapital financing activities: Principal payments on withdrawal obligations (519,682) (500,284) Receipts from other funds and license activities 2,640,792 1,362,156 Net cash provided by noncapital financing activities 2,121,110 861,872

Cash flows from capital and related financing activities: Principal payments on Steamship Bonds (7,145,000) (6,885,000) Proceeds from capital debt - 18,135,192 Interest paid (3,354,418) (2,647,580) Interest paid on withdrawal liability (480,318) (499,716) Proceeds from sales of capital assets - 798,848 Capital expenditures (22,862,715) (29,436,412) Capital grant received 1,545,600 2,018,075 Net cash used in capital and related financing activities (32,296,851) (18,516,593)

Cash flows from investing activities: Interest received 180,680 90,601 Interest from special-purpose restricted funds 476,385 524,661 Net cash provided by investing activities 657,065 615,262

Net decrease in cash and cash equivalents (14,820,235) (4,857,444)

Cash and cash equivalents, beginning of year 48,509,960 53,367,405

Cash and cash equivalents, end of year $ 33,689,725 $ 48,509,961

Adjustments to reconcile operating (loss) income to net cash provided by operating activities: Operating (loss) income $ (321,917) $ 260,513 Depreciation and amortization 12,808,087 11,482,830 Changes in assets and liabilities: Receivables (179,900) (378,119) Inventories (15,620) 62,474 Prepaid insurance and other and prepaid fuel hedge (706,268) (681,284) Deferred outflows of resources (612,285) (637,285) Accounts payable 1,541,336 378,488 Accrued wages, vacation pay, and expenses (139,846) 22,037 Other postemployment benefits 29,553 (5,152) Net pension obligations 2,087,712 (7,366) Unearned revenue 391,068 349,757 Deferred inflows of resources (183,479) 1,335,122

Net cash provided by operating activities $ 14,698,441 $ 12,182,015

Supplemental disclosure of noncash transactions: $252,363 and $1,129,356, respectively, that were included in accounts payable.

See notes to financial statements.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization

The Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority) is a public instrumentality created by the legislature of the Commonwealth of Massachusetts under Chapter 701 of the Acts of 1960, as amended (the Act). The Authority has no stockholders or equity holders.

Measurement Focus, Basis of Accounting, and Financial Reporting Presentation

The financial statements of the Authority have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government entities. The Governmental Accounting Standards Board (GASB) codification section 2100, is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Under these standards, the Authority is defined as a special-purpose governmental entity engaged only in business-type activities.

The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized at the time transportation, parking, and other services are provided. Unearned revenue represents cash received in advance of future service.

Deferred Inflows/Outflows of Resources

Deferred outflows of resources represent a consumption of net position that applies to a future period, and as such will not be recognized as an outflow of resources (expense) until that time. These items are reported as a category below the assets on the Statements of Net Position.

Deferred inflows of resources represent an acquisition of net position that applies to a future period, and as such will not be recognized as an inflow of resources (revenue) until that time. These items are reported as a category below the liabilities on the Statements of Net Position.

The Authority has the following items that qualify for reporting as deferred outflows of resources or deferred inflows of resources:

 For current refundings, resulting in defeasance of debt reported by business-type activities, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources or a deferred inflow of resources and recognized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or new debt, whichever is shorter. The Authority reports its gain or loss on advance refundings within these categories.

 For amounts not recognized in pension expense due to difference between the measurement date and the fiscal year end date are noted as deferred inflows and/or outflows from pensions and other post-employment benefits (OPEB).

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

Net Position

Net position represents the residual interest in the Authority’s assets plus deferred outflows of resources, less liabilities and deferred inflows of resources and consists of: (1) net investment in capital assets, (2) amounts restricted, and (3) amounts that are unrestricted. Net investment in capital assets consists of capital assets reduced by accumulated depreciation, deferred inflow due to advance refunding, and by any outstanding debt incurred to acquire, construct or improve those assets. Net position is reported as restricted when there are third party limitations (statutory, contractual or bond covenant) on its use. Unrestricted net position consists of all net position that does not meet the definition of either of the other two components.

Transfers and Use of Funds

The Act and the provisions of the Bond Resolutions with the Authority’s bondholders, discussed in more detail in Note 5, govern the disposition of revenue and prescribe certain accounting practices of the Authority, which include the conditions for transfers between the various accounts and the use of such funds. The Act was amended in 1985 to increase the maximum amount of funds allowed in the Operations Fund and Reserve Fund.

Cash and Cash Equivalents

Cash includes cash on hand, amounts in demand deposits and cash equivalents, which are short- term, highly liquid securities with readily determinable market values. For purposes of the accompanying statements of cash flows, the Authority considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Investments

The Authority’s investments are reported at fair value using quoted market price or the best available estimate thereof. GASB Statement No. 72, Fair Value Measurement and Application defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Authority categorizes its fair value measurements within the fair value GAAP hierarchy. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. All investment income, including changes in the fair value of investments, is reported as revenue in the accompanying statements of revenues, expenses and changes in net position. As discussed in Note 5, the Authority’s investments in 2019 and 2018 qualified to be reported as cash equivalents as the Authority participates in a qualifying external investment pool that measures all of its investments at amortized cost for financial reporting purposes. Accordingly, the Authority reports no investments at December 31, 2019 or 2018.

Inventories

Inventories of materials and supplies are stated at cost on a first-in, first-out basis.

Capital Assets

Vessels, terminal property, and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method based on the estimated service lives of the related assets. The Authority’s capitalization threshold for a single item is $5,000 or $10,000 for a group of items. The estimated service lives are as follows:

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

Capital Assets…continued

Vessels 10-30 years Buildings and structures: Buildings and wharves 30 years Sheds, fences and pavement 10-20 years Office and terminal equipment: Computer equipment 3-5 years Other 10 years Motor vehicles 5 years Leasehold improvements Shorter of remaining term of lease or estimated useful life

The Authority previously capitalized interest costs incurred in the construction of certain qualifying assets. With the adoption of the GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period in fiscal year 2019, all interest costs incurred during construction in 2019 were expensed. Capitalized interest was $350,270 in 2018. For the years ended December 31, 2019 and 2018, the Authority incurred interest expense from operations of $3,719,413 and $3,312,809, respectively.

Impairments

The Authority assesses the carrying value of property whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. The Authority recognizes impairment losses to the extent the carrying amount exceeds the fair value of the property. The Authority did not record any impairment charges related to its property as of December 31, 2019 and 2018 as there were no indicators of impairment.

Accounts Receivable

Accounts receivable are reported net of an allowance for doubtful accounts. The Authority fully reserves for all receivables greater than 90 days. The allowance for doubtful accounts was $50,000 and $50,781 at December 31, 2019 and 2018, respectively.

Unamortized Bond Premiums and Discounts

Discounts of bonds and premiums on bonds are amortized using the straight-line method over the life of the related bond issue since the results are not significantly different from the effective interest method of amortization.

Risk Financing and Related Insurance Issues

The Authority is self-insured with respect to medical benefits provided to certain employees and retirees. With respect to these medical benefits, the Authority purchases stop-loss insurance, which covers all incurred claims in excess of approximately $2,475,000 in the aggregate; up to a maximum aggregate benefit payment of $1,000,000 per person per year. The Authority purchases commercial insurance to cover all other risks of loss. During the current and previous three years, there have been no settlements in excess of insurance coverage maintained by the Authority.

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

Accrued Sick Leave and Vacation

Employees are granted sick leave and vacation in varying amounts. Upon retirement, termination, or death, certain employees are compensated for unused sick leave and vacation (subject to certain limitations) at their then-current rates of pay. The accumulated amount of sick and vacation leave is recorded as an expense and liability as the benefits accrue to employees.

Operating Revenues and Expenses

The Authority distinguishes operating revenues and expenses from nonoperating revenues and expenses in its statement of revenues, expenses and changes in net position. Operating revenues consists of those revenues earned from customers for passage of vehicles and passengers, from parking operations and ancillary activities such as concessions and driver services.

Operating expenses relate to the cost of providing those services and also include administration expenses and depreciation of capital assets. All other revenues and expenses that are not a direct result of the Authority’s functions are considered nonoperating. Examples of nonoperating items include investment earnings, interest expense, gains and losses on the disposal of capital assets and licensing fees.

Unearned Revenue

Unearned revenue consists primarily of fares received from customers for future reservations. Such amounts are recognized as revenue in subsequent periods as they are earned.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities and deferred inflows and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant use of estimates includes assumptions related to the valuation of the OPEB and pension plans, the accrual for claims to be submitted under the Authority’s self-funded health insurance, and the allowance for uncollectible accounts.

Adoption of New Accounting Pronouncements

In November 2016, the GASB issued Statement No. 83, Certain Asset Retirement Obligations. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. The Authority implemented this standard during fiscal year 2019. The implementation of GASB Statement No. 83 did not have a material impact on the Authority’s financial statements.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

In March 2018, the GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The Authority implemented this standard during fiscal year 2019. The implementation of GASB Statement No. 88 did not have a material impact on the Authority’s financial statements.

In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. The Authority implemented this standard prospectively during fiscal year 2019 and interest costs of $757,404 incurred during construction was expensed.

In August 2018, the GASB issued Statement No. 90, Majority Equity Interests – an amendment to GASB Statements No. 14 and No. 61. The GASB issued this statement to help clarify situations in which a government’s purpose for holding a majority equity interest met both the definition of an investment and the criteria to be reported as a component unit. This standard will improve the reporting of a government’s majority equity interest in a legally separate organization. The Authority implemented this standard during fiscal year 2019. The implementation of GASB Statement No. 90 did not have a material impact on the Authority’s financial statements.

The GASB has issued the following statements, which require adoption subsequent to December 31, 2019, and are applicable to the Authority. The Authority has not yet adopted these statements, and the implications on the fiscal practices and financial reports are being evaluated.

GASB Adoption Statement Required in No. Fiscal Year

84 Fiduciary Activities 2020 87 Leases 2022 91 Conduit Debt Obligations 2022 92 Omnibus 2022 93 Replacement of Interbank Offered Rates 2021 94 Public-private and Public-Public Partnerships and Availability 2023 Payment Arrangements 96 Subscription-Based Information Technology Arrangements 2023

Management has evaluated GASB No. 84 and has concluded the adoption of this standard will have a material effect on the financial statements including the inclusion of a pension fund. Management is currently evaluating the impact of the adoption of the remaining statements will have on its financial statements.

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2. CAPITAL ASSETS

Capital asset activity for the year ended December 31, 2019, was as follows:

Beginning Ending Balance Increases Decreases Balance

Capital assets, not being depreciated: Land$ 27,112,044 $ - $ - $ 27,112,044 Construction in progress 56,108,084 16,120,913 (34,960,729) 37,268,268

Total capital assets, not being depreciated 83,220,128 16,120,913 (34,960,729) 64,380,312

Capital assets, being depreciated: Vessels 161,550,147 19,464,299 - 181,014,446 Buildings and structures 92,230,615 17,821,270 - 110,051,885 Office and terminal equipment 14,891,746 1,306,527 - 16,198,273 Motor vehicles 5,264,440 2,154,692 - 7,419,132 Leasehold improvements 1,479,225 - - 1,479,225

Total capital assets, being depreciated 275,416,173 40,746,788 - 316,162,961

Less accumulated depreciation for: Vessels (93,308,548) (6,005,296) - (99,313,844) Buildings and structures (49,029,470) (4,364,635) - (53,394,105) Office and terminal equipment (12,042,417) (1,989,491) - (14,031,908) Motor vehicles (3,103,900) (448,666) - (3,552,566) Leasehold improvements (1,479,225) - - (1,479,225)

Total accumulated depreciation (158,963,560) (12,808,088) - (171,771,648)

Total capital assets, being depreciated, net 116,452,613 27,938,700 - 144,391,313

Total capital assets, net$ 199,672,741 $ 44,059,613 $ (34,960,729) $ 208,771,625

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2. CAPITAL ASSETS…continued

Capital asset activity for the year ended December 31, 2018, was as follows:

Beginning Ending Balance Increases Decreases Balance

Capital assets, not being depreciated: Land$ 27,112,044 $ - $ - $ 27,112,044 Construction in progress 34,162,905 24,850,214 (2,905,035) 56,108,084

Total capital assets, not being depreciated 61,274,949 24,850,214 (2,905,035) 83,220,128

Capital assets, being depreciated: Vessels 159,778,596 2,139,666 (368,115) 161,550,147 Buildings and structures 92,709,439 - (478,824) 92,230,615 Office and terminal equipment 13,692,581 1,159,324 39,841 14,891,746 Motor vehicles 4,620,194 771,248 (127,002) 5,264,440 Leasehold improvements 1,479,225 - - 1,479,225

Total capital assets, being depreciated 272,280,035 4,070,238 (934,100) 275,416,173

Less accumulated depreciation for: Vessels (87,589,294) (5,719,254) - (93,308,548) Buildings and structures (47,704,510) (4,132,987) 2,808,027 (49,029,470) Office and terminal equipment (11,037,996) (1,004,421) - (12,042,417) Motor vehicles (2,710,446) (419,101) 25,647 (3,103,900) Leasehold improvements (1,479,225) - - (1,479,225)

Total accumulated depreciation (150,521,471) (11,275,763) 2,833,674 (158,963,560)

Total capital assets, being depreciated, net 121,758,564 (7,205,525) 1,899,574 116,452,613

Total capital assets, net$ 183,033,513 $ 17,644,689 $ (1,005,461) $ 199,672,741

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3. STEAMSHIP BONDS OUTSTANDING

The Steamship Bonds outstanding at December 31, are as follows:

2019 2018

2009 Series A, including unamortized bond premium of $22,207 and $41,242 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 2.50% to 4.00%, requiring annual payments of principal beginning March 1, 2011 and semiannual interest payments through March 1, 2021 $ 1,122,207 $ 1,756,242

2009 Series B, including unamortized bond premium of $62,099 and $68,873 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 2.00% to 4.00%, requiring annual payments of principal beginning March 1, 2011 and semiannual interest payments through March 1, 2029 6,237,099 6,738,873

2011 Series A, including unamortized bond premium of $10,537 and $52,686 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 2.00% to 3.00%, requiring annual payments of principal beginning March 1, 2017 and semiannual interest payments through March 1, 2020 1,510,537 3,052,686

2014 Series A, including unamortized bond premium of $525,324 and $975,600 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 4.00% to 5.00%, requiring annual payments of principal beginning March 1, 2016 and semiannual interest payments through March 1, 2021 7,070,324 11,135,600

2015 Series A, including unamortized bond premium of $3,753,070 and $4,158,807 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 3.00% to 5.00%, requiring annual payments of principal beginning March 1, 2021 and semiannual interest payments through March 1, 2029 36,703,070 37,108,807

2017 Series A, including unamortized bond premium of $1,256,010 and $1,429,252 at December 31, 2019 and 2018, respectively, bearing interest at a rate of 5.00%, requiring annual payments of principal beginning March 1, 2018 and semiannual interest payments through March 2, 2027 10,521,010 11,614,252

2018 Series A, including unamortized bond premium of $1,916,576 and $2,144,288 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 3.00% to 5.00%, requiring annual payment of principal beginning March 1, 2020 and semiannual interest payments through March 1, 2028 17,831,575 18,059,288

Total Steamship Bonds 80,995,822 89,465,748

Less bonds due within one year (7,520,000) (7,145,000) Total Steamship Bonds—excluding current portion $73,475,822 $82,320,748

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3. STEAMSHIP BONDS OUTSTANDING…continued

2009 Series A Steamship Bonds — On July 21, 2009, the Authority issued $5,000,000 of 2009 Series A Steamship Bonds with interest rates ranging from 2.50% to 4.00%. The proceeds of the bonds were used to refund $5,000,000 in bond anticipation notes, the proceeds of which were used: (i) for the reconstruction and refurbishment of the M/V Nantucket, including without limitation the reconstruction of the deck, the reconstruction of the bridge, and the refurbishment of the vessel’s seating and eating areas; and (ii) to pay the cost of issuance.

2009 Series B Steamship Bonds — On December 1, 2009, the Authority issued $10,000,000 of 2009 Series B Steamship Bonds with interest rates ranging from 2.00% to 4.00%. The proceeds were used for the following purposes: (i) to acquire four (4) parcels of land located in Falmouth, Massachusetts, for parking and other purposes (Project A); (ii) the reconstruction of vessel berthing slips in Hyannis, Massachusetts, for operational efficiency purposes, including without limitation the reconstruction of dolphins, wharves, and transfer bridge and gangways (Project B and together with Project A, the Projects); and (iii) to pay the cost of issuance.

2011 Series A Steamship Bonds — On December 13, 2011, the Authority issued $6,000,000 of 2011 Series A Steamship Bonds with interest rates ranging from 2.00% to 3.00%. The proceeds of the bonds were used for: (i) the reconstruction and refurbishment of the M/V Eagle, including without limitation the replacement of decking, doors and windows; the reconstruction of the snack bar; refurbishment of the vessel’s seating and eating areas and the installation of a marine evacuation slide; and (ii) to pay the cost of issuance.

2014 Series A Steamship Bonds — On December 2, 2014, the Authority issued $20,105,000 of 2014 Series A Steamship Bonds with interest rates ranging from 4.00% to 5.00%. The proceeds of the bonds were used to: (i) refund $22,765,000 of the Authority’s 2004 Series B Bonds maturing in the years 2016 through 2021; and (ii) to pay the cost of issuance. The portion of the bond proceeds used to refund the prior bond obligations was used to purchase U.S. Government obligations, which were deposited into an irrevocable trust to pay the scheduled principal and interest on the 2004 Series B Steamship Bonds. As a result, these bonds are considered defeased by the Authority. Accordingly, the trust account assets and the liability for the defeased bonds have not been included in the Authority’s financial statements. Prior refunded obligations outstanding at December 31, 2019 and 2018, totaled $7,515,000 and $11,585,000, respectively.

2015 Series A Steamship Bonds — On May 8, 2015, the Authority issued $32,950,000 of 2015 Series A Steamship Bonds with interest rates ranging from 3.00% to 5.00%. The proceeds of the bonds were used to: (i) construct a new 235-foot passenger and vehicle vessel, the M/V Woods Hole, with a capacity of approximately 384 passengers and 50 cars, to replace the Authority’s M/V Governor; and (ii) to pay the cost of issuance.

2017 Series A Steamship Bonds — On March 29, 2017, the Authority issued $11,060,000 of 2017 Series A Steamship Bonds with an interest rate of 5.00%. The proceeds were used for the following purposes: (i) to construct a new General Administration Office Building; and (ii) to pay the cost of issuance.

2018 Series A Steamship Bonds — On August 28, 2018, the Authority issued $15,915,000 of 2018 Series A Steamship Bonds with interest rates ranging from 3.00% to 5.00%. The proceeds were used for the following purposes: (i) to reconstruct the waterside facilities at the Woods Hole Ferry Terminal; and (ii) to pay the cost of issuance.

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3. STEAMSHIP BONDS OUTSTANDING…continued

Scheduled Debt Service Requirements

The annual scheduled debt service requirements of all Steamship Bonds outstanding at December 31, 2019, are as follows, exclusive of bonds defeased:

Principal Interest Total Year Ending December 31 Payments Payments Payments

2020 $ 7,520,000 $ 3,178,781 $ 10,698,781 2021 7,865,000 2,823,844 10,688,844 2022 7,055,000 2,461,863 9,516,863 2023 7,390,000 2,109,250 9,499,250 2024 7,780,000 1,738,100 9,518,100 2025-2029 35,840,000 3,197,875 39,037,875 Total $ 73,450,000 $ 15,509,713 $ 88,959,713

Principal payments reported above are exclusive of the deferred gain arising from prior bond defeasances of $117,409 and unamortized bond premium of $7,545,822.

Bonds payable activity for the year ended December 31, 2019, was as follows:

Beginning Ending Due Within Balance Increases Decreases Balance One Year Bonds payable: Steamship Bonds $ 80,595,000 $ - $ (7,145,000) $ 73,450,000 $ 7,520,000 Issuance Premiums 8,870,748 - (1,324,926) 7,545,822 - $ 89,465,748 $ - $ (8,469,926) $ 80,995,822 $ 7,520,000

Bonds payable activity for the year ended December 31, 2018, was as follows:

Beginning Ending Due Within Balance Increases Decreases Balance One Year Bonds payable: Steamship Bonds $ 71,565,000 $ 15,915,000 $ (6,885,000) $ 80,595,000 $ 7,145,000 Issuance Premiums 7,823,671 2,220,192 (1,173,115) 8,870,748 - $ 79,388,671 $ 18,135,192 $ (8,058,115) $ 89,465,748 $ 7,145,000

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

4. LEASE COMMITMENTS

Operating Leases — The Authority has several noncancelable operating lease commitments at December 31, 2018, with terms in excess of one year. Future minimum lease payments under operating leases are as follows:

Years Ending December 31

2020 $ 654,064 2021 370,029 2022 318,191 2023 310,899 2024 233,191 2025-2028 293,750 Total $ 2,180,124

Aggregate rental expense for the years ended December 31, 2019 and 2018, was $792,912 and $768,108, respectively.

5. DEPOSITS AND INVESTMENTS

The Steamship Authority’s Board has the sole responsibility for establishing and revising investment policy. In June 2003, the Authority adopted a formal investment policy for all of its operations funds and special-purpose restricted funds. In March 2017, the Steamship Authority’s Board reaffirmed the investment policy. The investment strategy is to invest substantially in short- term securities. Permitted investments will consist of obligations issued or secured by the U.S. Government or agencies of the U.S. Government and overnight repurchasing agreements with banks or in mutual funds composed of the above types of investments. The Authority can also invest in the Massachusetts Municipal Depository Trust (MMDT or the Trust), a pooled money- market-like investment fund managed by the Commonwealth and established under Massachusetts General Laws, Chapter 29, Section 38A.

Investment options which are offered by MMDT include a cash portfolio which offers participation in a diversified portfolio of high-quality money-market instruments that seek the highest possible level of current income consistent with preservation of capital and liquidity and a short-term bond portfolio which offers participation in a diversified portfolio of investment-grade, short-term, fixed- income securities that seeks to generate performance exceeding the Barclays 1-5 year government/credit bond index, presenting a fixed-income alternative with a longer time horizon than the cash portfolio. A participant’s holdings in the Trust are not subject to creditors of the Commonwealth, nor will the Trust itself be affected by the financial difficulties of any participant. Amounts held at MMDT are uninsured and uncollateralized. The Authority’s investment balance with MMDT as of December 31, 2019 and 2018 were solely in the cash portfolio. The cash portfolio is not registered with the Securities and Exchange Commission as an investment company, but maintains a policy to operate in a manner as a qualifying external investment pool as defined by GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools.

The cash portfolio also adheres to GASB Statement No. 79, Certain External Investment Pools and Pool Participants, which amends Statement No. 31 and establishes accounting and financial reporting standards for state and local governments that participate in a qualifying external investment pool that measures for financial reporting purposes all of its investments at amortized cost. At December 31, 2019 and 2018 the Authority’s deposits with MMDT totaled $24,841,657 and $38,040,471, respectively. A copy of the financial statements of MMDT can be obtained from the Office of the State Treasurer, 1 Ashburton Place, Boston, MA 02110.

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5. DEPOSITS AND INVESTMENTS…continued

Cash and Cash Equivalents

The total amount of the Authority’s cash and cash equivalents at December 31, respectively, are as follows:

2019 2018

Cash, including trust and custody agreements $ 8,848,068 $ 10,469,489 MMDT 24,841,657 38,040,471 Total $ 33,689,725 $ 48,509,960

Custodial Credit Risk

Custodial credit risk exists for cash deposits when, in the event of a failure of a depository financial institution, the Authority’s deposits may not be recovered. The Authority does not have a formal policy with regard to custodial credit risk but generally invests in securities or financial institutions which have either short-term rating of “A” or government securities of “AAA.” Bank deposits are Federal Depository Insurance Corporation or Massachusetts Depositors Insurance Fund insured as of December 31, 2019 and 2018. Bank trust and custody agreements include pledged holdings and irrevocable stand-by letters of credit issued by the various financial institutions as collateral for the Authority’s deposits. The total amounts of Authority deposits in financial institutions, per the bank statements, at December 31, respectively, are as follows:

2019 2018

Balance per banks $ 13,620,329 $ 13,492,804 Deposits covered by: Federal Depository Insurance Corporation (1,000,000) (845,076) Massachusetts Depositors Insurance Fund (669,580) (264,160) Bank trust and custody agreements (9,270,101) (9,766,143) Total uninsured and uncollateralized deposits $ 2,680,648 $ 2,617,425

Interest Rate Risk and Credit Risk

Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment’s fair value. The Authority does not have a formal policy with regard to interest rate risk. The majority of the Authority’s investments are in MMDT, a pooled money-market-like investment fund.

Credit risk exists when there is a possibility that the issuer of an investment may be unable to fulfill its obligations. The Authority does have a formal policy with regard to credit risk. It should be noted, however, that the investment portfolio may be no more than 25% invested in securities of a single issuer, except for obligations of the U.S. Government.

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5. DEPOSITS AND INVESTMENTS…continued

Interest Rate Risk and Credit Risk…continued

The Authority maintains cash, cash equivalents, and investments available for use by all funds, in the manner provided below, as set forth by the Authority’s Enabling Act, as amended.

The revenues derived from the operation of the Steamship Authority are set aside in funds as defined in the Act and provisions of the Board Resolutions. Monies in these funds on the last day of the preceding month shall be transferred:

 To the Sinking Fund — such amount, if any, as may be required for the payment of the interest on and the principal of all bonds as the same shall become due and payable;

 To the Bond Redemption Fund — all of the remaining revenue to be used within a reasonable time for the purchase or redemption of bonds or, in the Authority’s discretion, to be transferred to the Property Replacement Fund or to the Capital Improvement Fund to be used for any purposes for which bonds may be issued;

 To the Property Replacement Fund — such amount, if any, as may be deemed necessary or advisable for depreciation of property and for obsolescence and losses with respect to property sold, destroyed, or abandoned and for improvements to, and acquisitions of, real and personal property (the Authority’s current policy is to limit any transfers to the Property Replacement Fund in any given year to the amount of the prior year’s depreciation expense);

 To the Reserve Fund — such amount, if any, as may be required to make the balance therein equal to 5% of the principal amount of all outstanding bonds, exclusive of bonds considered as defeased, or $600,000, whichever is greater; and

 To the Operations Fund — such amount, if available, as may be required to pay the cost of maintenance, repair, and operation of the Steamship Line for the current month and the next ensuing month and to maintain working capital for such purposes in an amount not to exceed one thirty-sixth of the operating budget for the then-current fiscal year.

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6. PENSION PLANS

The Authority provides retirement benefits to its employees through various defined benefit and defined contribution pension plans.

Defined Benefit Pension Plans Sponsored By the Authority:

Description of Plans

Nonunion Plan

The Authority has in effect a single employer, defined benefit pension plan established in 1968 for eligible nonunion employees (the Nonunion Plan). The Nonunion plan reporting date is February 28th of each year.

Administration of the Plan

The Nonunion Plan is administered by the Authority. The Trustee, Principal Mutual Life Insurance Company, holds the investment securities of the Nonunion Plan and executes related transactions under custodial agreements with the Nonunion Plan and the Authority. Separate financial statements are not issued for the Nonunion Plan.

Participation and Vesting

Employees not under collective bargaining agreements whose customary employment with the Authority is for at least 30 hours per week and are employed or expected to be employed on a year-round basis may participate in the Nonunion Plan.

Participants’ benefits become fully vested after five years of service in the Nonunion Plan. Benefit payments are made to participants of the Nonunion Plan or their beneficiaries in varying amounts according to the provisions of the Nonunion Plan.

Plan Amendment and Termination

The Nonunion Plan may be amended or terminated in whole or in part, at any time by the Authority, provided that no such modification, amendment, or termination shall be made that would deprive a current participant of rights or benefits provided under the Nonunion Plan.

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6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Normal Retirement Benefits

The normal form of retirement benefit is a monthly annuity payable for life with payments guaranteed for five years (optional forms of payment may be elected in advance of retirement), commencing on the normal retirement date. The normal retirement date for participants who joined the Nonunion Plan prior to March 1, 1992, is the earliest of (a) attainment of age 65 and completion of 20 years of service, (b) attainment of age 62 and completion of 25 years of service, or (c) attainment of age 60 and completion of 30 years of service. The amount of benefits is equal to 75% of average compensation for the last three years multiplied by an accrued benefit adjustment (as defined in the Nonunion Plan). The normal retirement date for participants who joined the Nonunion Plan on or after March 1, 1992, is the earliest of (a) attainment of age 65 and completion of five years of service, (b) attainment of age 62 and completion of 25 years of service, or (c) attainment of age 60 and completion of 30 years of service. The amount of benefits is equal to 2.5% of average compensation multiplied by years of service (maximum of 30 years). The normal retirement date for participants who join the Nonunion Plan on or after March 1, 2011, is the attainment of age 65 and completion of 10 years of service. The amount of benefits is equal to 2.0% of average compensation multiplied by years of service (maximum of 30 years). Average compensation is defined as average monthly pay received during the three-year period preceding the normal retirement date.

Participants in the Nonunion Plan prior to March 1, 1992, are entitled to a benefit based upon the greater of the benefits allowed under the plan as it existed prior to March 1, 1992 or the benefits allowed to participants who join on or after March 1, 1992.

Employees covered by benefit terms

At February 28, 2019, the following employees were covered by the benefit terms:

Active plan members 76 Inactive plan members entitled to but not yet receiving benefits 29 Retired plan members or beneficiaries currently received benefits 41 Total 146

Cost-of-Living Adjustment

As of March 1, 2002, the Nonunion Plan was amended to include an annual cost of living increase to participants receiving monthly payments under the Nonunion Plan. The cost of living increase is based on half of the percentage increase in the consumer price index from year to year with the aggregate cost of living increase not to exceed 50% of the value of the participant’s benefit as of the annuity starting date.

As of March 1, 2011, the Nonunion Plan was amended to exclude an annual cost of living increase to participants receiving monthly payments under the Nonunion Plan who became participants on or after March 1, 2011.

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6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Contributions

Employees who become participants in the Nonunion Plan are currently required to contribute 3.0% of salary. The Authority currently contributes 25.0% of annual covered payroll for the Nonunion Plan. For the Plan years ended February 28, 2019 and February 28, 2018, the Authority contributed $1,495,724 and $1,505,097, respectively towards the Nonunion Plan. For the period March 1, 2019 through December 31, 2019 the Authority contributed $1,526,300 towards the Nonunion Plan. These contributions are recorded as deferred outflow on pensions in the statement of net position.

Disability Benefits

There are no disability benefits payable under the Nonunion Plan.

Early Retirement Benefits

Early retirement benefits are in the same form as normal retirement benefits and commence on the early retirement date. The early retirement date must be within the 10-year period preceding the normal retirement date. Benefits are reduced for each year that the early retirement date precedes the normal retirement date.

Investments

Investments are valued as of the measurement date. Investments are in separate accounts held at The Principal Financial Group in commingled pools, rather than individual securities, and are valued at fair market value. All investments held by pension trust fund are in Level I securities, with the exception of a real estate fund valued at $1,902,533, which is a Level II investment. Principal Financial Advisors, Inc., a registered investment advisor and wholly owned subsidiary of Principal Financial Group, has been hired to manage the asset allocation strategy for the Nonunion Plan.

The investment strategy is to build an efficient, well-diversified portfolio based on a long-term, strategic outlook of the investment markets. The investment market outlook utilizes both historical-based and forward-looking return forecasts to establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the needs of the Nonunion Plan. The core asset allocation utilizes investment portfolios of various asset classes and multiple investment managers in order to help maximize the plan’s return while providing multiple layers of diversification to help minimize risk.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Actuarial Assumptions

Assumed Valuation Actuarial Cost Asset Valuation Amortization Amortization Rate of Inflation Salary Date Method Method Method Period Return Rate Increases 02/28/2019 Entry Age Market value Level dollar 20-30 years 5.50% 2.25% S5 + 1.75% 02/28/2018 Entry Age Market value Level dollar 20-30 years 5.50% 2.00% S5 + 1.75% 02/28/2017 Entry Age Market value Level dollar 20-30 years 5.50% 2.00% S5 + 1.75% 02/29/2016 Entry Age Market value Level dollar 20-30 years 6.25% 2.25% S5 + 1.75% 02/28/2015 Entry Age Market value Level dollar 20-30 years 6.25% 2.25% S5 + 1.75%

Based on PUBG-2010 General base rate mortality table projected to future years with historical and assumed mortality improvement (MI) rates using the MP-2019 mortality improvement scale, PUBG-2010 is the baseline mortality rate table underlying the SOA PUB-2010 experience study published in January 2019.

Money-weighted Rate of Return

The money-weighted rate of return is calculated as a rate of return on pension plan investments incorporating the actual timing and amount of cash flows. This return is calculated net of investment expenses. The annual money-weighted rate of return on plan investments for the measurement period of March 1, 2018 to February 28, 2019 is 1.68%.

Expected Rate of Return

The expected long-term return of 5.50% on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the Long-Term Capital Market Assumptions (CMA) 2018. The capital market assumptions were developed with a primary focus on forward-looking valuation models and market indicators. The key fundamental economic inputs for these models are future inflation, economic growth, and interest rate environment. Due to the long-term nature of the pension obligations, the investment horizon for the CMA 2018 is 20 years. In addition to forward-looking models, historical analysis of market data and trends was reflected, as well as the outlook of recognized economists, organizations and consensus CMA from other credible studies.

The plan’s target asset allocations, as of February 28, 2019, are summarized in the following table:

Expected Expected Target Arithmetic Geometric Asset Class Allocation Return Return

US Equity - Large Cap 23.44% 7.70% 6.35% US Equity - Mid Cap 2.66% 7.95% 6.35% US Equity - Small Cap 1.38% 8.50% 6.35% Non-US Equity 12.99% 7.95% 6.35% REITs 0.37% 7.60% 5.95% Real Estate (direct property) 5.67% 5.55% 5.25% TIPS 0.57% 3.50% 3.35% Core Bond 48.86% 4.00% 3.90% High Yield 4.06% 6.45% 6.00%

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Changes in the Authority’s net pension liabilities for the year ending December 31, 2019 are as follows:

Total Plan Net Pension Fiduciary Pension Liability Net Position Liability

Balance at December 31, 2018 $ 41,060,447 $28,092,761 $12,967,686

Changes for the year: Service Cost 1,144,364 - 1,144,364 Interest 2,040,465 - 2,040,465 Differences between expected and actual experience (692,738) - (692,738) Changes in assumptions 1,724,223 - 1,724,223 Contributions - employer - 1,495,724 (1,495,724) Contributions - employee - 163,708 (163,708) Net investment income - 477,170 (477,170) Benefit payments, including refunds of employee contributions (1,310,113) (1,310,113) - Administrative expenses - (8,000) 8,000 Net change 2,906,201 818,489 2,087,712 Balance at December 31, 2019 $ 43,966,648 $ 28,911,250 $ 15,055,398

Statement of Deferred Outflows and Inflows of Resources

As of February 28, 2019 the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions as follows:

Deferred Deferred Outflows of Inflows of Resources Resources

Differences between expected and actual experience $ 868,840 $ (561,968) Effects of changes in assumptions 1,673,509 (115,159) Net difference between expected and net investment income 1,385,108 (1,112,898) Employer contributions subsequent to measurement period 1,526,300 - Total Deferred Outflows and Inflows of Resources $ 5,453,757 $ (1,790,025)

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Amounts reported as deferred outflows and inflows of resources related to pensions (excluding employer contributions subsequent to measurement period) will be recognized in the pension expense as follows:

Amount to be Recognized

2020 $ 938,945 2021 409,156 2022 456,002 2023 333,329

Discount Rate

The discount rate used to determine the end of period total pension liability is 4.85%.

The plan’s fiduciary net position and benefit payments were projected to determine if the plan’s fiduciary net position was greater than or equal to the expected benefit payments for each period from 2019 to 2050.

The long-term rate of return of 5.50% is used to calculate the actuarial present value of projected payments for each future period when the projected fiduciary net position is greater than the projected expected benefit payments. Otherwise, a municipal bond rate of 3.93% is used. The municipal bond rate is from Barclays Municipal GO Long Term (17+ Y) Index, which includes 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher securities, as of the February 28, 2019 measurement date. The discount rate is a single rate that incorporates the long-term rate of return and municipal bond rate as described.

The discount rate used to determine the beginning of period total pension liability is 4.90%. The municipal bond rate as of February 28, 2018 was 3.96%.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following represents the net pension liability of the Plan as of February 28, 2019, calculated using the discount rate of 4.85%, as well as what the net pension liability would be if it were to be calculated using a discount rate that is one percentage point lower (3.85%) or one percentage point higher (5.85%) than the current rate:

1% Decrease Discount 1% Increase Plan Year Ended (3.85%) Rate (4.85%) (5.85%)

February 28, 2019 $ 21,272,228 $ 15,055,398 $ 9,887,639

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Contribution Plans Sponsored by the Authority:

Licensed Deck Officers Plan

The Authority also has a defined contribution plan for its licensed deck officers. Prior to July 27, 2013, the Authority was required to contribute an amount equal to 10.75% of base weekly earnings for each employee. Effective July 27, 2013, the Authority was required to contribute an amount equal to 7.50% of base weekly earnings for each employee. The Authority’s required and actual contributions aggregated $380,643, $353,959 and $312,051 for 2019, 2018 and 2017, respectively.

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Principal Mutual Life Insurance Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All licensed deck officers (captains, pilots, and mates) are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

Parking Lot Employees and Shuttle Bus Drivers Plan

The Authority also has a defined contribution plan for its permanent parking lot employees/shuttle bus drivers. Effective May 28, 2011, the Authority is required to contribute an amount equal to 5.0% of base weekly earnings for each permanent parking lot employee/shuttle bus driver. As a result of a collective bargaining agreement effective from May 7, 2016 through May 7, 2021, beginning December 24, 2016 the Authority discontinued making contributions to this defined contribution plan on behalf of most of its permanent parking lot employees/shuttle bus drivers. Instead, the Authority will make contributions on behalf of these employees to the New England Teamsters and Trucking Industry Pension Fund Plan. However, the Authority will continue making the contribution of 5% of base weekly earnings on behalf of a small number of permanent parking lot employees/shuttle bus drivers who were approaching retirement and wished to remain in the plan, and were allowed to do so under the collective bargaining agreement. The Authority’s required and actual contributions for this plan aggregated $4,012, $4,834 and $6,787 for 2019, 2018 and 2017, respectively.

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Prudential Trust Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All permanent parking lot employees/shuttle bus drivers are eligible to participate in the Plan. Participants are 100% vested at all times.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Contribution Plans Sponsored by the Authority…continued:

Parking Lot Employees and Shuttle Bus Drivers Plan…continued

Employee Contributions

No employee contributions are made under the Plan.

Security Employees Plan

The Authority also has a defined contribution plan for its permanent security employees. The Authority is required to contribute an amount equal to 5.0% of base weekly earnings for each security employee. As a result of a collective bargaining agreement effective from July 23, 2016 through July 23, 2021, beginning December 24, 2016 the Authority discontinued making contributions to this defined contribution plan on behalf of most of its permanent security employees. Instead, the Authority will make contributions on behalf of these employees to the New England Teamsters and Trucking Industry Pension Fund Plan. However, the Authority will continue making the contribution of 5% of base weekly earnings on behalf of a small number of permanent security employees who were approaching retirement and wished to remain in the plan, and were allowed to do so under the collective bargaining agreement. The Authority’s required and actual contributions for this plan aggregated $3,107, $2,665 and $3,908 for 2019, 2018 and 2017, respectively.

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Prudential Trust Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All permanent security employees are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

Unlicensed Vessel Employees Plan

The Authority also has a defined contribution plan for its permanent unlicensed vessel employees. Effective August 23, 2014, the Authority is required to contribute an amount equal to 3.5% of base weekly earnings for each employee. Prior to that, the Authority was required to contribute an amount equal to 10.0% of base weekly earnings for the period April 15, 2000 through August 22, 2014; 9.0% from April 17, 1999 through April 14, 2000; 7.5% from April 18, 1998 through April 16, 1999; and 6.0% through April 17, 1998. The Authority’s required and actual contributions aggregate $314,122, $280,951 and $268,780 for 2019, 2018 and 2017, respectively.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Contribution Plans Sponsored by the Authority…continued:

Unlicensed Vessel Employees Plan…continued

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Prudential Trust Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All permanent unlicensed vessel employees are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

Multiemployer - Licensed Engineering Officers Plan

The Authority contributes to a multiemployer defined contribution plan for its licensed engineering officers. The Authority is required to contribute an amount equal to 10.667% of base weekly earnings for each employee on the permanent Chief Engineers roster as of August 1, 2008, and $12.50 per day for each engineering officer not on the permanent Chief Engineers roster as of August 1, 2008. In January 2012, the Authority discontinued contributing to the multiemployer defined contribution plan and instead began contributing to a multiemployer pension plan, administered by the Marine Engineers Beneficial Association Pension Trust at a rate of 11.7% of earnings.

Administration of the Plan

The Plan is administered by the Marine Engineers Beneficial Association Pension Trust, Trustee. The Trustee holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan.

Participation and Vesting

All engineering officers (chief engineers, third assistant engineers) are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Employer Contributions

Effective August 2016, the Authority resumed contributions to the defined contribution plan at a rate of 2.74%. In August 2017, the Authority’s contribution rate changed to 4.0% and in August 2018 the contribution rate changed to 5.0%. The Authority’s required and actual contributions aggregate $148,546, $121,873 and $79,347 for 2019, 2018 and 2017, respectively.

Deferred Compensation Plan

The Authority has a deferred compensation plan, in accordance with Internal Revenue Code Section 457, available to all regular full-time employees. Under the terms of the plan, employees who wish to participate may have contributed up to a maximum of $19,000 in 2019 and $18,500 in 2018 of their annual compensation. A “catch up” contribution for those employees 50 years of age or older is allowed; this amount is limited to an additional $6,000 per year. The Authority did not contribute to the plan in 2019 or 2018.

Multiemployer Pension Plans

The Authority provides benefits to certain of its employees by making contributions to various multiemployer pension plans. Such plans are available to all full-time union employees not covered by the Authority’s single employer pension plan, and their eligibility in the plans commences upon employment. There were no outstanding payables under any of the plans for the year ending December 31, 2019. The schedule of employer contributions to the plans, presented as required supplementary information following the notes to the financial statements, present historical contributions made to each plan. None of these pension plans issue publicly available financial statements.

 The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Licensed Deck Officers. The active union contract was executed effective July 30, 2016, and has a term ending July 30, 2021. The contribution rate, effective October 29, 2013, has been negotiated at $7.50 per hour to a maximum of $315.00 per week, per employee. During 2019, contributions were made for 66 employees totaling $831,019.

 The Marine Engineers Beneficial Association (M.E.B.A.) Pension Plan covered the Authority’s Licensed Engineering Officers. The active union contract was executed effective July 30, 2016, and has a term ending July 30, 2021. The contribution rate, effective January 1, 2012, has been negotiated at 11.7% of the total wages per employee. Effective May 1, 2015, an additional $6.00 per day was redirected from the M.E.B.A. Medical and Benefits Plan towards the pension plan. During 2019, contributions were made for 49 employees totaling $457,882.

 The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Unlicensed Vessel Employees. The active union contract was executed effective April 15, 2017, and has a term ending April 16, 2021. The contribution rate, effective January 1, 2017, has been negotiated at $5.00 per hour to a maximum of $210.00 per week, per employee. During 2019, contributions were made for 195 employees totaling $1,625,323.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Multiemployer Pension Plans…continued

 The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Maintenance Employees. The active union contract was executed effective April 16, 2016, and has a term ending April 16, 2021. The contribution rate, effective April 1, 2011, has been negotiated at $6.37 per hour to a maximum of $254.80 per week, per employee. During 2019, contributions were made for 39 employees totaling $473,074.

 The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Agency and Terminal Employees. The active union contract was executed effective April 16, 2016, and has a term ending April 16, 2021. The contribution rate, effective April 1, 2011, has been negotiated at $4.64 per hour to a maximum of $185.60 per week, per employee. During 2019, contributions were made for 120 employees totaling $950,852.

 The Massachusetts Service Employee’s Pension Fund Plan covered the Authority’s Reservation Clerks and Group Sales employees. The active union contract was executed effective August 22, 2015, and has a term ending August 24, 2018. The contribution rate, effective January 1, 2016, has been negotiated at $0.50 per hour to a maximum of $20.00 per week, per employee. During 2019, contributions were made for 39 employees totaling $25,470.

 The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Parking Lot Employees/Shuttle Bus Drivers. The active union contract was executed effective May 7, 2016, and has a term ending May 7, 2021. The contribution rate, effective December 24, 2016, has been negotiated at $1.00 per hour to a maximum of $40.00 per week, per employee. During 2019, contributions were made for 43 employees totaling $50,933.

 The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Security Employees. The active union contract was executed effective July 23, 2016, and has a term ending July 23, 2021. The contribution rate, effective April 1, 2011, has been negotiated at $1.00 per hour to a maximum of $40.00 per week, per employee. During 2019, contributions were made for 11 employees totaling $18,791.

The covered payroll of such employees was $32,328,881, $30,058,984 and $28,485,627 in 2019, 2018 and 2017, respectively. The Authority’s contributions to the Plans met the contribution requirements in 2019, 2018, and 2017, and aggregated $4,287,973 (14.3% of covered payroll for employees participating in the Plans in 2019), $4,146,439 (15.9% of covered payroll for employees participating in the Plans in 2018), and $4,035,501 (15.0% of covered payroll for employees participating in the Plans in 2017).

Pension Withdrawal Obligations

In March 2011, the Steamship Authority entered into successor collective bargaining agreements, with Teamster Local 59, with respect to its maintenance employees and its agency and terminal employees. Terms of the agreements allow the Authority to withdraw from the New England Teamsters and Trucking Industry Pension Fund (the Fund). The agreements provide that the Authority shall fully satisfy its withdrawal liability to the Fund by making 300 monthly withdrawal liability payments, each in the amount of $83,333, beginning October 2011.

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6. PENSION PLANS…continued

Pension Withdrawal Obligations…continued

In addition, the Authority will enter into the New England Teamsters and Trucking Industry Pension Fund “New Employer Pool”. The Authority’s participation in the New Employer Pool requires that any future withdrawal liability be computed by the Direct Attribution Method under terms of the Employee Retirement Income Security Act of 1974 (ERISA §4211). In 2019 and 2018, the Authority made payments totaling $1,000,000, respectively, towards the withdrawal liability. Interest payments totaled $480,318 and $499,716 in 2019 and 2018, respectively. Pension withdrawal obligation totaled $12,323,652 and $12,843,333 as of December 31, 2019 and 2018, respectively, and are recorded in the Statements of Net Position using the present value of the obligation based upon incremental borrowing costs.

7. OTHER POSTEMPLOYMENT BENEFITS (OPEB)

Plan Description

In addition to the pension benefits described in Note 6, the Authority provides postemployment health care benefits for eligible employees who render at least 20 years of service and attain age 62 while in service until the employee is eligible for Medicare. The benefits, benefit level, employee contributions, and employer contributions are governed by the Authority and collective bargaining agreements. As of December 31, 2019, the actuarial valuation date, approximately 298 active employees and 26 retirees meet eligibility requirements. The plan does not issue separate stand- alone financial statements.

Benefits Provided

Medical coverage, excluding dental, under the group health insurance plan for regular full-time nonunion employees, licensed deck officers, and unlicensed vessel personnel with 20 or more years of service who retire after reaching age 62 will continue until the employee is eligible for Medicare. Coverage for the dependents of such regular full-time employees will also continue during this period provided that the employee pay 50% of the enrollment cost as established annually by the Plan administrator. Once the retired employee is entitled to Medicare, health care coverage for the employee’s spouse will continue as provided for under COBRA, provided that the employee pay 100% of the enrollment cost as established annually by the Plan administrator.

Funding Policy

Effective January 1, 2013, the nonunion retired employee must pay 20% of the enrollment cost (the working rate) as established annually by the Plan administrator. Effective July 27, 2013, the licensed deck officer retired employee must pay 20% of the enrollment cost (the working rate) as established annually by the Plan administrator. Effective August 2, 2014, the unlicensed vessel retired employee must pay 20% of the enrollment cost (the working rate) as established annually by the Plan administrator. The Authority contributes the remainder of the health plan costs on a pay-as-you-go basis.

Measurement Date

GASB Statement No. 74 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions and GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, requires the net OPEB liability to be measured as of the OPEB Plan’s most recent fiscal year-end. Accordingly, the net OPEB liability was measured as of December 31, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2019.

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7. OTHER POSTEMPLOYMENT BENEFITS (OPEB)…continued

Employees Covered by Benefit Terms – the following table represents the Plan’s membership as of December 31, 2019:

Retirees or beneficiaries currently receiving benefits 26 Active Employees 298 Total 324

Changes in the Total OPEB Liability

Increase (Decrease)

Balance at December 31, 2018 $ 2,328,945

Changes for the year: Service cost 78,214 Interest on liability and service cost 87,735 Benefit payments (136,396) Net Changes 29,553

Balance at December 31, 2019 $ 2,358,498

Sensitivity of the Total OPEB liability to changes in the discount rate

Current 1% Decrease Discount Rate 1% Increase (2.75%) (3.75%) (4.75%)

Total OPEB liability $ 2,536,539 $ 2,358,498 $ 2,198,451

Sensitivity of the Total OPEB liability to changes in the healthcare cost trends

Current 1% Decrease Trend 1% Increase (2.75%) (3.75%) (4.75%)

Total OPEB liability $ 2,212,426 $ 2,358,498 $ 2,525,051

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

7. OTHER POSTEMPLOYMENT BENEFITS (OPEB)…continued

OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

Deferred inflows of resources: Amortization $ 32,639 Total deferred inflows of resources $ 32,639

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the health care cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the plan as understood by the Authority and plan members and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The assumptions follow:

Actuarial cost method: Individual entry age normal Medical care inflation: 5.00% Discount rate: 2.74% Mortality table used: RP-2014 Blue Collar Mortality table for male and female, generational with scale MP-2016 Interest: Pay-as-you-go: 4% per year Disability: 1897 Commissioner’s Group Disability table for male and female with six-month elimination period.

Retirement rate assumptions: Age 62 63 64 65 Male 30% 25% 22% 100% Female 15% 13% 18% 100%

8. COMMITMENTS

Construction in progress at December 31, 2019 consisted of expenditures by the Authority for various construction projects, which management expects will be completed in the years 2020, 2021, and 2022. At December 31, 2019, remaining construction commitments for these capital projects aggregated $28,912,730. In addition, dry-docking and overhaul commitments for vessels aggregated $6,543,396.

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9. CONTINGENCIES

In the normal course of operations, the Authority has been named in various claims and litigation. Based upon information available to counsel and the Authority, management believes that the ultimate outcome from these claims and litigations will not have a material adverse effect on the Authority’s financial position.

The Authority applies for and occasionally receives financial assistance from the federal government’s various grant programs for specific projects. When this occurs, the entitlements to the resources are generally conditional upon compliance with terms and conditions of the grant agreements and applicable federal regulations, including the expenditure of resources for eligible purposes. Substantially all federal financial assistance is subject to financial and compliance audits. Any disallowance becomes a liability of the Authority.

10. RISK MANAGEMENT

The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority has purchased commercial insurance for these risks, except for those risks identified in the following paragraph, which the Authority accounts for in accrued expenses.

Group Health

The Authority has chosen to establish a risk financing fund for risks associated with the employees’ health insurance plan. The total charge is calculated using trends in actual claims experience. Provisions are also made for unexpected and unusual claims.

Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Liabilities are recorded as a component of accounts payable in the Authority’s statements of net position. Claim liabilities are calculated based on recent claim settlement trends, including frequency and amount of pay-outs. The calculation includes a weighted-three-year-average of claims paid by group with an adjustment made to claims to account for increases in medical cost based on the Consumer Price Index — Medical (CPI-Med). The Authority carries stop-loss insurance on individual medical claims in excess of $150,000 per person and approximately $2,475,000 in the aggregate, up to a maximum aggregate benefit payment of $1,000,000 per person per year. An analysis of claims activities is presented below:

2019 2018

Liability as of January 1 $ 195,018 $ 131,897 Current-year charges and changes in estimate 3,307,900 2,569,307 Actual claims paid (3,112,781) (2,506,186) Liability as of December 31 $ 390,137 $ 195,018

Such amounts are recorded as a component of current liabilities in the statements of net position.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

11. HEDGE PROGRAM

The Authority manages a fuel oil hedging program, which is intended to take advantage of market conditions to cap fuel expense. The objectives of the program are to (1) identify exposure to movements in energy prices, (2) understand the impact to the Authority’s financial position, (3) employ all reasonable and prudent measures to mitigate the impact of price movements, and (4) manage the volatility of energy costs to acceptable levels. The hedge program attempts to transform the unacceptable risks of skyrocketing energy prices into an acceptable form, similar to an insurance policy.

The Steamship Authority’s hedging program operates under a non-speculative philosophy and transactions are limited to expected energy volumes anticipated in the normal course of operations. The Authority’s hedging strategy may include fixed-price swaps, collars, or caps. The program is designed to allow the Authority to benefit from prices that fall below the cap while offering some protection that pricing will not exceed the cap price.

As of December 31, 2019, the Authority had executed hedging transactions for 2,730,000 gallons of fuel out of the approximate 3,298,000 gallons of fuel, which is expected to be used in 2020. The cost of these call options totaled $532,410 at December 31, 2019.

As of December 31, 2018, the Authority had executed hedging transactions for 2,898,000 gallons of fuel out of the approximate 3,304,000 gallons of fuel, which is expected to be used in 2019. The cost of these call options totaled $506,846 at December 31, 2019.

As the Authority’s hedging is for fuel oil used in the operation of its vessels and the monthly call options are for quantities lower than the quantities reasonably expected to be consumed, these activities qualify for to the exclusion provided for in GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, and therefore not required to be reported as derivative instruments.

12. SUBSEQUENT EVENTS

The Authority has evaluated events and transactions for potential recognition or disclosure through June 30, 2020, when the financial statements were available to be issued.

On January 30, 2020, the World Health Organization declared the coronavirus outbreak a “Public Health Emergency of International Concern” and on March 10, 2020 declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and action taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, include the geographical area in which the Authority operates. While it is unknown how long these conditions will last and what to complete financial effect will be to the Authority, it is reasonably possible that certain estimates made in the financial statements have been, or will be, materially and adversely impacted in the near term as a result of these conditions.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

12. SUBSEQUENT EVENTS…(continued)

The Authority entered into various irrevocable stand-by letters of credits with TD Bank, N.A. subsequent to year-end that will serve as collateral for the Authority’s public deposits subsequent to December 31, 2019. As of February 20, 2020, the issued letter of credit presented below remains outstanding:

Issuance Date Due Date Amount

January 28, 2020 March 31, 2020 $ 1,500,000

January 23, 2020 March 31, 2020 $ 2,300,000

February 20, 2020 March 31, 2020 $ 2,300,000

On February 12, 2020, the Authority’s 2020 Series A Steamship Bonds in the amount of $20,630,000 were awarded to J.P. Morgan Securities LLC. Net proceeds from the issuance total $25,813,670 and include a reoffering premium of $5,183,700. The proceeds from the bond issue are to be used (1) to reconstruct the waterside facilities at the Woods Hole Ferry Terminal; (2) the current refunding of all of the Authority’s outstanding 2009 Series B bonds maturing in year 2021 through 2029 in the aggregate principle amount of $5,660,000 and (3) to pay for costs of issuing the 2020 Series A Bonds.

On May 19, 2020 the Authority received $9,859,884 from the Coronavirus Aid, Relief, and Economic Security (CARES) Act from the Federal Transit Administration. The CARES Act provides economic assistance for workers and families, small businesses, and preserves jobs for American industries.

On May 5, 2020 the Steamship Authority executed a line of credit with Martha’s Vineyard Savings Bank in the amount of $10,000,000 with a 5 year term. The purpose of the Loan is to provide liquidity, as the Authority’s cash flow needs may require, to pay operating expenses incurred in the course of the Authority’s management and operation of the steamship line and other properties under its control.

*************

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REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Required Supplementary Information – Schedule of Changes in Net Pension Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Pension Plan (Unaudited)

December 31, December 31, December 31, December 31, December 31, Reporting Period Ending 2019 2018 2017 2016 2015

Total Pension Liability Service cost $ 1,144,364 $ 1,052,910 $ 967,905 $ 1,081,252 $ 647,483 Interest 2,040,465 1,882,289 1,793,810 1,681,088 1,632,651 Benefit payments (1,310,113) (710,728) (999,967) (370,672) (319,029) Difference between expected and actual experience (692,738) 1,130,001 579,321 (177,602) 354,985 Change in assumptions 1,724,223 - 969,280 (895,895) 2,607,925 Net change in total pension liability 2,906,201 3,354,472 3,310,349 1,318,171 4,924,015 Total Pension Liability, beginning of period 41,060,447 37,705,975 34,395,626 33,077,455 28,153,440 Total Pension Liability, end of period $ 43,966,648 $ 41,060,447 $ 37,705,975 $ 34,395,626 $ 33,077,455

Plan Fiduciary Net Position Employee contributions $ 163,708 $ 179,569 $ 167,784 $ 161,527 $ 157,177 Employer contributions 1,495,724 1,505,097 1,201,056 807,637 789,093 Net investment income 477,170 2,387,900 2,639,818 (1,179,009) 1,245,714 Benefit payments (1,310,113) (710,728) (999,967) (370,672) (319,029) Administration expenses (8,000) - (9,000) - (2,064) Net Change in Plan Fiduciary Net Position 818,489 3,361,838 2,999,691 (580,517) 1,870,891 Plan Fiduciary Net Position, beginning of period 28,092,761 24,730,923 21,731,232 22,311,749 20,440,858 Plan Fiduciary Net Position, end of period $ 28,911,250 $ 28,092,761 $ 24,730,923 $ 21,731,232 $ 22,311,749 Net Pension Liability Net Pension Liability $ 15,055,398 $ 12,967,686 $ 12,975,052 $ 12,664,394 $ 10,765,706

Ratios Fiduciary net position as a percentage of total pension liability 65.76% 68.42% 65.59% 63.18% 67.45% Covered employee payroll $ 5,593,650 $ 6,095,342 $ 5,517,416 $ 5,381,074 $ 5,160,167 Net pension liability as a percentage of covered employee payroll 269.15% 212.75% 235.17% 235.35% 208.63%

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Required Supplementary Information – Schedule of Employer Contributions to the Multiemployer Pension Plans (Unaudited)

New England Marine Engineers New England New England Teamsters and Beneficial Teamsters and Teamsters and Trucking Industry Association Trucking Industry Trucking Industry Pension Fund Pension Fund Pension Fund Pension Fund

Licensed Deck Unlicensed Vessel Maintenance Year Ending Officers Licensed Engineers Employees Employees December 31, 2009 $ - $ - $ - $ 351,984 December 31, 2010 - - - 356,664 December 31, 2011 - - - 340,040 December 31, 2012 - 253,075 - 362,013 December 31, 2013 307,582 315,703 - 366,594 December 31, 2014 699,772 313,260 466,630 358,220 December 31, 2015 707,332 354,697 1,329,894 352,182 December 31, 2016 718,879 382,758 1,343,290 376,028 December 31, 2017 745,496 391,439 1,535,842 395,985 December 31, 2018 781,425 433,482 1,502,055 421,681 December 31, 2019 831,019 457,882 1,625,323 473,074

New England Massachusetts New England New England Teamsters and Service Teamsters and Teamsters and Trucking Industry Employee's Trucking Industry Trucking Industry Pension Fund Pension Fund Pension Fund Pension Fund Parking Lot Agency & Terminal Reservation Clerks & Employees & Bus Year Ending Employees Group Sales Drivers Security Employees December 31, 2009 $ 966,960 $ 37,984 $ - $ - December 31, 2010 1,094,156 37,890 - - December 31, 2011 928,440 32,167 - - December 31, 2012 891,850 31,195 - - December 31, 2013 895,432 29,625 - - December 31, 2014 861,731 26,991 - - December 31, 2015 835,367 31,317 - - December 31, 2016 840,360 32,128 - - December 31, 2017 874,250 28,962 47,856 15,671 December 31, 2018 915,166 25,423 51,661 15,547 December 31, 2019 950,852 25,470 50,933 18,791

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Required Supplementary Information – Schedule of Net OPEB Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (Unaudited)

Reporting Period Ending 12/31/2019 12/31/2018

Total OPEB Liability Service cost $ 78,214 $ 74,846

Interest 87,735 94,253 Change in Assumptions

Benefit Payments (136,396) (141,612)

Experience (Gain) and Loss - (207,260)

Net Change in Total OPEB Liability 29,553 (179,773)

Total OPEB Liability, beginning of period 2,328,945 2,508,718

Total OPEB Liability, end of period $ 2,358,498 $ 2,328,945

Covered employee payroll $ 18,626,043 $ 17,996,177

Total OPEB liability as a percentage of covered employee payroll 12.7% 12.9%

Notes: Information provided for Required Supplementary Information will be provided for 10 years as it becomes available

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority

Financial Statements as of and for the Years Ended December 31, 2019 and 2018, Required Supplementary Information (Unaudited), Schedule of Expenditures of Federal Awards for the Year Ended December 31, 2019, and Single Audit Reports in Accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority

Audited Financial Statements and Reports Required for Audits In Accordance with Government Auditing Standards and Uniform Guidance Years Ended December 31, 2019 and 2018

C O N T E N T S

Page

Independent Auditors’ Report ...... 1-2

Management’s Discussion and Analysis (Unaudited) ...... 3-17

Financial Statements:

Statements of Net Position ...... 18-19

Statements of Revenues, Expenses and Changes in Net Position ...... 20

Statements of Cash Flows ...... 21

Notes to Financial Statements ...... 22-51

Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Pension Plan (Unaudited) ...... 52

Schedule of Employer Contributions to the Multiemployer Pension Plan (Unaudited) ...... 53

Schedule of Net OPEB Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (Unaudited) ...... 54

Schedule of Expenditures of Federal Awards……………………………………………………………… 55

Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ………..…..………………………………………………………...…… 56-57

Report on Compliance for the Major Federal Program and Report on Internal Control Over Compliance as Required by the Uniform Guidance…………...…… 58-59

Schedule of Findings and Questioned Costs……………………………………………………………… 60-62

Summary Schedule of Prior Audit Findings……………………………………………………………….. 63

Corrective Action Plan……………………………………………………………………………………….. 64

454 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Independent Auditor’s Report

To the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority:

Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority), as of and for the years ended December 31, 2019 and 2018, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities of the Authority, as of December 31, 2019 and 2018, and the respective changes in financial position and, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

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Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedule of Employer Contributions to the Multiemployer Pension Plan, and the Schedule of Net OPEB Liability and Related Ratios, and the notes to the Required Supplementary Information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The Schedule of Expenditures of Federal Awards is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2020 on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Boston, Massachusetts June 30, 2020

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

As management of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority or Steamship Authority), we offer readers of our financial statements the following narrative overview and analysis of our financial activities for the years ended December 31, 2019 and 2018. The Steamship Authority is a public instrumentality created by the legislature of the Commonwealth of Massachusetts (the Commonwealth) under Chapter 701 of the Acts of 1960, as amended (the Act), “in order to provide adequate transportation of persons and necessaries of life for the islands of Nantucket and Martha's Vineyard”. Overview of the Financial Statements This overview and analysis is intended to serve as an introduction to the Authority’s basic financial statements. The Authority is a special-purpose governmental entity engaged in only business-type activities. As such, its financial statements consist of only those required for enterprise funds and the related notes. The Authority’s financial statements include statements of net position, statements of revenues, expenses and changes in net position, and statements of cash flows. In addition to the basic financial statements, this report includes notes to the financial statements and also contains required supplementary information (RSI) pertaining to the pension plans and the other postemployment benefit plan (OPEB) of the Authority. The statements of net position report assets plus deferred outflows of resources, liabilities plus deferred inflows of resources and the difference between them as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. Net position consists of three sections: net investment in capital assets; restricted; and unrestricted. The net investment in capital assets component of the net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. Net position is reported as restricted when constraints are imposed by third parties or enabling legislation. All other net position is unrestricted. The statements of revenues, expenses and changes in net position report the operating revenues and expenses and nonoperating revenues and expenses of the Authority for the year with the difference, the net income or loss, being combined with any capital grants and contributions, income from special-purpose restricted funds, and special items to determine the change in net position for the year. That change combined with the net position at the end of the previous year reconciles to the net position at the end of the current year. The statements of cash flows report cash and cash equivalent activities for the year resulting from operating activities, noncapital financing activities, capital and related financing activities, and investing activities. The net results of these activities added to the beginning of the year cash and cash equivalents balance reconciles to the cash and cash equivalents balance at the end of the current year. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the basic financial statements. The basic financial statements can be found on pages 18-50 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain RSI. RSI contains data related to the Authority’s defined benefit pension plan, OPEB plan provided to its employees, and contributions made to the multiemployer plans. The RSI can be found on pages 52-54 of this report.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

Condensed Financial Information Condensed financial information from the statements of net position and the statements of revenues, expenses and changes in net position for the years ended December 31, are as follows:

2019 2018 2017

Current assets $ 19,321,980 $ 20,154,172 $ 22,156,785 Special-purpose restricted funds 22,165,378 35,430,444 38,811,941 Capital assets, net 208,850,378 199,672,741 183,033,512 Total assets 250,337,736 255,257,357 244,002,238

Deferred outflows of resources 5,453,757 4,841,472 4,204,187

Total assets and deferred outflows of resources $ 255,791,493 $ 260,098,829 $ 248,206,425

Current liabilities $ 15,512,995 $ 14,532,652 $ 14,278,931 Liabilities payable from special-purpose restricted funds 8,640,774 8,381,097 7,955,583 Noncurrent liabilities 102,628,911 109,941,031 100,830,775 Total liabilities 126,782,680 132,854,780 123,065,289

Deferred inflows of resources 2,049,416 2,326,822 911,006

Net position: Net investment in capital assets 128,100,255 118,463,899 105,700,370 Restricted 20,539,513 25,726,106 35,380,566 Unrestricted deficit (21,680,371) (19,272,778) (16,850,806) Total net position 126,959,397 124,917,227 124,230,130

Total liabilities, deferred inflows of resources, and net position $ 255,791,493 $ 260,098,829 $ 248,206,425

Operating (loss) income: Total operating revenues $ 110,673,583 $ 104,806,611 $ 102,911,758 Total operating expenses (110,995,500) (104,546,098) (95,018,138) Operating (loss) income (321,917) 260,513 7,893,620

Nonoperating revenues (expenses): Interest on bonds and other obligations (3,719,413) (3,312,809) (3,155,449) Miscellaneous revenue 4,181,406 3,628,633 3,347,832 Miscellaneous expense (26,929) (820,951) (90,035) Nonoperating revenues (expenses) 435,064 (505,127) 102,348

Income (loss) before capital grants and contributions and income from special-purpose restricted funds 113,147 (244,614) 7,995,968

Capital grants and contributions 1,452,638 407,050 1,832,879 Income from special-purpose restricted funds 476,385 524,661 475,284

Change in net position 2,042,170 687,097 10,304,131 Net position—beginning of year 124,917,227 124,230,130 113,925,999 Net position—end of year $ 126,959,397 $ 124,917,227 $ 124,230,130

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS

Comparison of Financial Condition at December 31, 2019 and 2018

The Authority’s total assets and liabilities were $250,337,736 and $126,782,680, respectively, as of December 31, 2019, as compared to $255,257,357 and $132,854,780, respectively, at December 31, 2018. The Authority’s deferred outflows of resources were $5,453,757 and $4,841,472, for the years ended December 31, 2019 and 2018, respectively. The Authority’s deferred inflows of resources were $2,049,416 and $2,326,822, for the years ended December 31, 2019 and 2018, respectively. The net position as of December 31, 2019, was $126,959,397, a 1.6% increase from the prior fiscal year-end.

The increase in total net position was $2,042,170 for the year ended December 31, 2019, up $1,355,073 from the $687,097 increase in total net position posted in 2018. Income before capital grants and contributions and income from special-purpose restricted funds in 2019 increased $357,761, or 146.3%, compared to the prior year.

The increase in income before capital grants and contributions and income from special-purpose restricted funds was attributed to a $5,886,972, or 5.6% increase in the Authority’s operating revenue, offset by a $6,449,402 increase in the Authority’s operating expense, and the net impact of changes in interest on bonds and other obligations, miscellaneous revenue and expenses. These changes are discussed in greater detail in the following sections.

During 2019, the Steamship Authority was awarded grants under the Port Security Grant Program and the Federal Transit Administration. These awards are recorded under the heading Capital Grants and Contributions in the Statements of Revenues, Expenses and Changes in Net Position.

Operating Revenues

The Steamship Authority’s total operating revenues in 2019 were $110,673,583. Total operating revenues increased by $5,866,972 or 5.6% for the year ended December 31, 2019.

The number of passengers carried decreased by 50,911 or 1.7% in 2019 from 2018. Ridership on the conventional service decreased by 14,949 riders or 0.6%, while passenger traffic carried on the M/V Iyanough decreased by 35,962 passengers or 10.5% for the year as compared to 2018. In addition, the average revenue per passenger decreased from $10.68 in 2018 to $10.30 in 2019, due mostly to the decrease in riders on the high-speed service. Total passenger revenues in 2019 were $30,938,007, a decrease of 5.2% versus the previous year.

The number of automobiles carried decreased by 4,057 or 0.8% in 2019 versus 2018. The average revenue per automobile increased from $62.05 in 2018 to $68.88 in 2019, due in part to rate increases for standard fared automobiles. Total automobile revenues in 2019 were $32,991,829, an increase of 10.1% versus the previous year.

The number of trucks carried increased by 4,771 or 2.5% in 2019 from 2018 traffic levels. The average revenue per truck increased from $151.43 in 2018 to $166.97 during 2019, due in part to an overall increase in trucks carried to Nantucket and Martha’s Vineyard as well as rate increases for trucks over 20 feet in length. Total freight revenues in 2019 were $32,612,990, an increase of 13.0% versus the previous year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Revenues…continued

Parking revenue in 2019 increased by $41,722 from 2018, primarily as a result of a rate increase during the summer season at the Falmouth area lots. The total number of cars parked decreased by 9,200 or 5.1% versus 2018. Total parking revenues in 2019 were $7,158,095, an increase of 0.6% versus the previous year.

Other miscellaneous operating revenues increased by $749,257 or 12.0% in 2019, primarily due to increases in cancellation penalties. The major sources of operating revenues for the year ended December 31, 2019, were as follows:

Other 6.3% Freight Parking 29.4% 6.5%

Passengers 28.0%

Automobiles 29.8%

Operating Expenses

The Authority’s total operating expenses in 2019 were $110,995,500; in 2018, total operating expenses were $104,546,098. Total operating expenses in 2019 were $6,449,402, or 6.2% higher than the previous year. Decreases in maintenance expenses and utilities expenses were offset by higher wages and benefits, vessel fuel oil costs, depreciation expense, insurance, and other expense, compared to the prior year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Maintenance expense decreased in 2019 versus 2018 by $732,062, or 3.6%. The decrease was primarily attributable to vessel dry-dock expense decreases of $2,219,560; increases in vessel overhaul expenses of $669,543; increases in engine parts expense of $524,248; dolphin and dock repairs expense decreases of $839,488; and increases in maintenance payroll expenses of $985,809.

Depreciation and amortization expense increased in 2019 versus 2018 by $1,325,257 or 11.5%. The increase is attributable to the addition of the Woods Hole and Vineyard Haven Sewer Pump Out projects and the first phase of the Woods Hole Marine Project.

Vessel operating expenses increased by $2,331,778 or 9.8% versus 2018 expenses. Vessel payroll expense in 2019 increased by $1,504,253 or 9.4% versus 2018 payroll expense. Vessel fuel oil expense of $7,104,567 was $611,508 or 9.4% higher in 2019 than in 2018. The average cost per gallon of fuel used operating, including hedge costs, in 2019 was $2.226, which represents an increase of 17.7% over the average cost per gallon of fuel used operating in 2018 of $2.052. In 2019, the Steamship Authority’s vessels consumed approximately 3,161,000 gallons of fuel, a decrease of 0.1% versus 2018.

Average Cost per Gallon of Vessel Fuel Oil Used (Including Net Hedge Premiums)

$4.000

$3.500

$3.000

$2.500

$2.000

$1.500

$1.000

$0.500

$0.000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVERAGE

2015 2016 2017 2018 2019

During 2019, the Authority operated 23,944 vessel trips, which represented a decrease of 53 trips, or 0.2% versus 2018.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Expenses related to Terminal Operations increased in 2019 versus 2018 by $145,289 or 1.2%. This increase was primarily attributed to a 4.5% or $455,366 increase in payroll costs, a decrease in miscellaneous terminal expenses of $160,355 and a $137,117 decrease in police services.

Expenses to operate Reservations and Customer Service decreased in 2019 versus 2018 by $55,234 or 1.8%. This decrease was primarily attributed to lower telephone expense of $19,311 or 22.6% and lower advertising expense of $30,030 or 2.3%.

General and administrative expense in 2019 increased by $3,434,374 or 10.2% versus 2018. In 2019, administration payroll expense increased by $500,833 or 12.9% versus 2018. Overall pension expense increased by $788,798 or 9.1% versus 2018. Health care costs, principally for the self-funded groups, increased by $1,495,366 or 17.7%; payroll taxes increased by $207,726 or 7.8% versus 2018; while credit card processing expenses increased by $119,281 or 5.8% versus the prior year.

The major sources of operating expenses for the year ended December 31, 2019, were as follows:

Other 13.3%

Direct Maintenance Expense (Excluding Labor) 8.9%

Insurance 3.8%

Vessel Fuel Wages, Oil Benefits and 6.4% Payroll Taxes Depreciation 56.1% 11.5%

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

56.1% of the Authority’s operating expenses in 2019 were attributed to wages and the cost of employee benefits. The Authority’s payroll in 2019 was distributed to the following functions:

Administration 10.9%

Reservations & Customer Service 3.5%

Maintenance 15.6%

Operation of Operation of Terminals & Vessels Parking Lots 43.6% 26.4%

Nonoperating Revenues (Expenses)

The Authority’s total nonoperating revenues in 2019 were $435,064 which was an increase of $940,191 over the total nonoperating expenses of $505,127 in 2018. Expenses for interest on bonds and other obligations of $3,719,413 in 2019 was an increase of $406,604 over the $3,312,809 in 2018. Miscellaneous revenue of $4,181,406 in 2019 increased by $552,773 over 2018, due mostly to an increase in license income and interest income, while miscellaneous expenses in 2019 decreased by $794,022 as compared to 2018 primarily due to a loss on the sale of property in 2018 but not in 2019.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Comparison of Financial Condition at December 31, 2018 and 2017

The Authority’s total assets and liabilities were $255,257,357 and $132,854,780, respectively, as of December 31, 2018, as compared to $244,002,238 and $123,065,289, respectively, at December 31, 2017. The Authority’s deferred outflows of resources were $4,841,472 and $4,204,187, for the years ended December 31, 2018 and 2017, respectively. The Authority’s deferred inflows of resources were $2,326,822 and $911,006, for the years ended December 31, 2018 and 2017, respectively. The net position as of December 31, 2018, was $124,917,227, a 0.6% increase from the prior fiscal year-end.

The increase in total net position was $687,097 for the year ended December 31, 2018, down $9,617,034 from the $10,304,131 increase in total net position posted in 2017 due to the increase in operating expenses. Income before capital grants and contributions and income from special-purpose restricted funds in 2018 decreased $8,240,582, or 103.1%, compared to the prior year.

The decrease in income before capital grants and contributions and income from special-purpose restricted funds was attributed to a $1,894,853, or 1.8% increase in the Authority’s total operating revenues and a $9,527,960, or 10.0% increase in the Authority’s total operating expenses. Total nonoperating revenue decreased by $607,475. These changes are discussed in greater detail in the following sections.

During 2018, the Steamship Authority was awarded grants under the Port Security Grant Program. These awards are recorded under the heading Capital Grants and Contributions in the Statements of Revenues, Expenses and Changes in Net Position.

Operating Revenues

The Steamship Authority’s total operating revenues in 2018 were $104,806,611. Total operating revenues increased by $1,894,853 or 1.8% for the year ended December 31, 2018.

The number of passengers carried decreased by 3,702 or 0.1% in 2018 from 2017. Ridership on the conventional service decreased by 44,078 riders or 1.6%, while passenger traffic carried on the M/V Iyanough increased by 40,376 passengers or 13.3% for the year as compared to 2017. In addition, the average revenue per passenger increased from $10.31 in 2017 to $10.68 in 2018, due mostly to the increase in riders on the high-speed service. Total passenger revenues in 2018 were $32,640,122, an increase of 3.5% versus the previous year.

The number of automobiles carried increased by 1,622 or 0.3% in 2018 versus 2017. The average revenue per automobile increased from $61.93 in 2017 to $62.05 in 2018, due in part to a change in the mix of automobiles carried on the Martha’s Vineyard and Nantucket routes as well as the increase in ridership during the on season. Total automobile revenues in 2018 were $29,970,953, an increase of 0.5% versus the previous year.

The number of trucks carried increased by 1,169 or 0.6% in 2018 from 2017 traffic levels. The average revenue per truck increased from $149.15 in 2017 to $151.43 during 2018, due in part to an overall increase in trucks carried to Nantucket and Martha’s Vineyard as well as the increase in ridership of the larger trucks. Total freight revenues in 2018 were $28,855,758, an increase of 2.2% versus the previous year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Revenues…continued

Parking revenue in 2018 decreased by $32,742 from 2017, primarily as a result of a decrease in cars parked at the Falmouth area lots. The total number of cars parked decreased by 2,323 or 1.3% versus 2017. Total parking revenues in 2018 were $7,116,373, a decrease of 0.5% versus the previous year.

Other miscellaneous operating revenues increased by $49,099 or 0.8% in 2018, primarily due to increases in dockage fees and miscellaneous driver service charges. The major sources of operating revenues for the year ended December 31, 2018, were as follows:

Other 5.9% Freight Parking 27.5% 6.8%

Passengers 31.1%

Automobiles 28.7%

Operating Expenses

The Authority’s total operating expenses in 2018 were $104,546,098; in 2017, total operating expenses were $95,018,138. Total operating expenses in 2018 were $9,527,960, or 10.0% higher than the previous year. Decreases in operating rents were offset by higher wages and benefits, vessel fuel oil costs, depreciation expense, maintenance expense, utilities, and other expense, compared to the prior year.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Maintenance expense increased in 2018 versus 2017 by $4,319,737, or 27.4%. The increase was primarily attributable to vessel dry-dock expense increases of $1,503,390; increases in vessel overhaul expenses of $1,016,824; increases in engine parts and engine repair expense of $84,175; life raft renewal increases of $54,695; dolphin and dock repairs expense increases of $858,918; and increases in hardware and software maintenance of $462,707.

Depreciation and amortization expense increased in 2018 versus 2017 by $627,403 or 5.8%. The increase is attributable to the addition of a full year of depreciation for the Woods Hole Temporary Terminal Building and a partial year for the M/V Martha’s Vineyard Mid-Life Refurbishment and the General Administration building.

Vessel operating expenses increased by $1,574,828 or 7.1% versus 2017 expenses. Vessel payroll expense in 2018 increased by $680,883 or 4.5% versus 2017 payroll expense. Vessel fuel oil expense of $6,493,059 was $703,449 or 12.2% higher in 2018 than in 2017. The average cost per gallon of fuel used operating, including hedge costs, in 2018 was $2.052, which represents an increase of 8.8% over the average cost per gallon of fuel used operating in 2017 of $1.886. In 2018, the Steamship Authority’s vessels consumed approximately 3,165,000 gallons of fuel, an increase of 3.1% versus 2017.

Average Cost per Gallon of Vessel Fuel Oil Used (Including Net Hedge Premiums)

$4.000

$3.500

$3.000

$2.500

$2.000

$1.500

$1.000

$0.500

$0.000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVERAGE

2014 2015 2016 2017 2018

During 2018, the Authority operated 23,997 vessel trips, which represented an increase of 1,154 trips, or 5.1% versus 2017.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

Expenses related to Terminal Operations increased in 2018 versus 2017 by $653,254 or 5.5%. This increase was primarily attributed to a 4.2% or $411,428 increase in payroll costs and a $185,653 or 33.9% increase in police services.

Expenses to operate Reservations and Customer Service decreased in 2018 versus 2017 by $44,631 or 1.5%. This decrease was attributed to lower payroll expense of $36,971 or 2.6%; lower traffic expense of $33,811 or 16.0%, offsetting an increase in advertising expense of $30,609 or 2.4%.

General and administrative expense in 2018 increased by $2,397,369 or 7.7% versus 2017. In 2018, administration payroll expense increased by $239,916 or 6.6% versus 2017. Overall pension expense increased by $360,397 or 4.3% versus 2017. Health care costs, principally for the self-funded groups, increased by $827,196 or 10.9%; unemployment contributions increased by $237,071 or 35.9%; long term disability expense increased by $30,801 or 5.3%; while credit card processing expenses increased by $47,377 or 2.4% versus the prior year.

The major sources of operating expenses for the year ended December 31, 2018, were as follows:

Other 14.0%

Direct Maintenance Expense (Excluding Labor) 11.1%

Insurance 3.8% Wages, Benefits and Payroll Taxes 53.9% Vessel Fuel Oil 6.2% Depreciation 11.0%

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Operating Expenses…continued

53.9% of the Authority’s operating expenses in 2018 were attributed to wages and the cost of employee benefits. The Authority’s payroll in 2018 was distributed to the following functions:

Administration 10.6%

Reservations & Customer Service 3.8%

Maintenance 14.3%

Operation of Operation of Vessels Terminals & 43.7% Parking Lots 27.6%

Nonoperating Revenues (Expenses)

The Authority’s total nonoperating expenses in 2018 was $505,127 which were an increase of $607,475 over the total nonoperating revenues of $102,348 in 2017. Expenses for interest on bonds and other obligations of $3,312,809 in 2018 was an increase of $157,360 over the $3,155,449 in 2017. Miscellaneous revenue of $3,628,633 in 2018 increased by $280,801 over 2017, due mostly to an increase in license income, while miscellaneous expenses in 2018 increased by $730,916 as compared to 2017 primarily as a result of the loss associated with the write-off of assets associated with the Woods Hole terminal project.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

Special-Purpose Restricted Funds and Fund Transfers in 2019

The Authority’s Enabling Act requires revenue derived from its operation to be set aside each month in a specific order and in amounts as follows: (1) to the Sinking Fund, an amount sufficient to provide for the payment of the interest on and for the amortization and payment of the principal of all bonds as the same shall become due and payable; (2) to the Bond Redemption Fund, all of the remaining revenue to be used within a reasonable time for the purchase or redemption of bonds or, in the Authority’s discretion, to be transferred to the Property Replacement Fund or to the Capital Improvement Fund to be used for any purposes for which bonds may be issued; (3) to the Property Replacement Fund, such amount as the Authority may deem necessary or advisable for depreciation of property and for obsolescence and losses in respect to property sold, destroyed, or abandoned, and for improvements to, and acquisitions of, real and personal property (the Authority’s current policy is to limit any transfers to the Property Replacement Fund in any given year to the amount of the prior year’s depreciation expense); (4) to the Reserve Fund, an amount sufficient to maintain the fund at a level equal to the greater of 5% of the principal amount of all bonds outstanding, exclusive of bonds considered as defeased, or $600,000, whichever is greater; and (5) to the Operations Fund, an amount sufficient to pay the cost of maintenance, repair, and operation of the Steamship Line for the current month and the next ensuing month, and to maintain working capital for such purposes in an amount not to exceed one thirty-sixth of the operating budget for the then- current fiscal year.

The Authority’s Sinking Fund balance at December 31, 2019, was $9,283,238, including income from investments of $151,439 during 2019. The Authority’s cash flow during 2019 allowed for transfers to be made to the Sinking Fund to meet the scheduled bond interest payment of $1,671,975 on September 1, 2019, and to provide for the payment of bond interest and principal due on March 1, 2020, in the amount of $1,671,975 and $7,520,000, respectively.

At December 31, 2019, the Property Replacement Fund balance was $7,847,154, including income earned from investments of $278,275 during 2019.

In addition, $7,817,925 was transferred from the Operations Fund to the Property Replacement Fund, an increase of $819,537 over the previous year’s transfers. Disbursements from the Property Replacement Fund in 2019, totaling $13,673,108 were comprised of the following:

Woods Hole Reconstruction – Marine $6,047,215 Shuttle Buses (4) 1,843,987 WH & VH Sewer Pump Outs 1,663,146 Accounting System Replacement 894,529 Woods Hole Temporary Terminal 526,427 Servers for Admin Building 430,204 Motor Vehicles, Trailers, Equipment 414,311 M/V Martha’s Vineyard Mid-Life Reconstruction 341,547 MIS Services & Additional Equipment 329,280 Fairhaven Emergency Generator 313,956 AV1 Parking Equipment / Access Control System 225,814 PC Replacements 211,529 School Street Site Work 134,377

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

FINANCIAL ANALYSIS…continued

M/V Nantucket Davit 110,000 M/V Governor Generator 106,720 M/V Iyanough & M/V Eagle Radar 49,919 POS System for Concessions 30,147

Special-Purpose Restricted Funds and Fund Transfers in 2019…continued

The Authority’s Reserve Fund balance at December 31, 2019, was $3,655,683, including income from investments of $87,863 during 2019.

The Authority’s Capital Improvement Fund balance as of December 31, 2019, was $505,091, including income from investments of $89,630. During 2019, disbursements from the Capital Improvement Fund totaled $8,052,781. Fund disbursements in 2019 were for the Woods Hole terminal marine construction totaling $7,974,028; and for debt expense totaling $78,753. Unexpended proceeds from Steamship Bonds are reported as assets of the Capital Improvement Fund.

The Bond Redemption Fund balance was $874,212 at December 31, 2019, including income from investments of $20,618 during 2019.

Investment income from the special-purpose restricted funds amounted to $476,386 during 2019, excluding income from investments in the Sinking Fund of $151,439.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The Authority’s capital assets as of December 31, 2019 and 2018, amounted to $208,771,625 net of accumulated depreciation. The Authority’s investment in capital assets includes vessels, buildings and structures, office and terminal equipment, motor vehicles, land, leasehold improvements, and construction projects in progress. During 2019, the Authority invested $5,786,059 in various capital assets and an additional $16,120,913 was invested in construction projects in progress.

The Authority’s capital assets as of December 31, 2018, amounted to $199,672,741, net of accumulated depreciation. The Authority’s investment in capital assets includes vessels, buildings and structures, office and terminal equipment, motor vehicles, land, leasehold improvements, and construction projects in progress. During 2018, the Authority invested $4,070,238 in various capital assets and an additional $24,850,212 was invested in construction projects in progress.

Capital asset additions were funded through the Authority’s operations funds and special-purpose restricted funds.

More detailed information regarding the Authority’s capital assets activities for 2019 and 2018 can be found in the notes to the financial statements (Note 2).

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Management’s Discussion and Analysis (Unaudited) Years Ended December 31, 2019 and 2018

CAPITAL ASSETS AND DEBT ADMINISTRATION…continued

Debt Administration

The Authority is currently authorized under the provisions of the Enabling Act, as amended, to issue bonds in an amount not to exceed $100,000,000 outstanding at any one time. The Authority’s Enabling Act further provides that if at any time any principal or interest is due or about to become due on the Authority’s bonds and the funds to pay the same are not available, the Authority shall certify to the State Treasurer the amount required to meet such obligations and the Commonwealth shall pay over to the Authority the amount so certified. In the opinion of the Authority’s bond counsel, the obligation of the Commonwealth to pay the required amount to the Authority is a general obligation of the Commonwealth and the full faith and credit of the Commonwealth is pledged to make such payment. The Commonwealth has never been called upon to make payments to the Authority to meet such obligations under the provisions of the Enabling Act.

The Authority made scheduled principal payments of $7,145,000 during 2019. In 2018, the Authority made scheduled principal payments of $6,885,000. The total amount of bonds outstanding, net of unamortized premiums of $7,545,822, was $73,450,000 as of December 31, 2019.

The Authority made scheduled principal payments of $6,885,000 during 2018. Also, in August of 2018, the Authority received $18,105,001 of net proceeds from its 2018 Series A bond issuance, with a principal amount of $15,915,000 and a premium of $2,220,192. In 2017, the Authority made scheduled principal payments of $5,805,000. The total amount of bonds outstanding, net of unamortized premiums of $8,870,748, was $80,595,000 as of December 31, 2018.

More detailed information regarding the Authority’s debt administration activities for 2019 and 2018 can be found in the notes to the financial statements (Note 3).

ECONOMIC FACTORS

The Authority’s traffic statistics for the past five years are as follows:

2015 2016 2017 2018 2019

Passengers 3,023,090 3,127,304 3,059,049 3,055,347 3,004,436 Automobiles 465,297 482,699 481,425 483,047 478,990 Trucks 172,861 182,099 189,388 190,557 195,328 Cars parked 183,526 190,026 184,084 181,761 172,561 Trips made 22,437 22,703 22,843 23,997 23,944 Nautical Miles 333,034 337,560 335,622 353,918 351,734

Demand for the Authority’s services is mainly affected by the overall economic activity on Martha’s Vineyard and Nantucket, both seasonally and year-round. The economic activity is a reflection of the overall construction on the islands and other factors, such as weather-related conditions, capacity constraints, and operational limitations, which can also have an impact on the Authority’s annual ridership volumes.

REQUESTS FOR INFORMATION

This report is intended to provide an overview of the Authority’s financial condition. Questions concerning any of the information in this report or requests for additional information should be addressed to the Authority’s Treasurer/Comptroller, 228 Palmer Avenue, Falmouth, MA 02540.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization

The Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority) is a public instrumentality created by the legislature of the Commonwealth of Massachusetts under Chapter 701 of the Acts of 1960, as amended (the Act). The Authority has no stockholders or equity holders.

Measurement Focus, Basis of Accounting, and Financial Reporting Presentation

The financial statements of the Authority have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government entities. The Governmental Accounting Standards Board (GASB) codification section 2100, is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Under these standards, the Authority is defined as a special-purpose governmental entity engaged only in business-type activities.

The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized at the time transportation, parking, and other services are provided. Unearned revenue represents cash received in advance of future service.

Deferred Inflows/Outflows of Resources

Deferred outflows of resources represent a consumption of net position that applies to a future period, and as such will not be recognized as an outflow of resources (expense) until that time. These items are reported as a category below the assets on the Statements of Net Position.

Deferred inflows of resources represent an acquisition of net position that applies to a future period, and as such will not be recognized as an inflow of resources (revenue) until that time. These items are reported as a category below the liabilities on the Statements of Net Position.

The Authority has the following items that qualify for reporting as deferred outflows of resources or deferred inflows of resources:

• For current refundings, resulting in defeasance of debt reported by business-type activities, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources or a deferred inflow of resources and recognized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or new debt, whichever is shorter. The Authority reports its gain or loss on advance refundings within these categories.

• For amounts not recognized in pension expense due to difference between the measurement date and the fiscal year end date are noted as deferred inflows and/or outflows from pensions and other post-employment benefits (OPEB).

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

Net Position

Net position represents the residual interest in the Authority’s assets plus deferred outflows of resources, less liabilities and deferred inflows of resources and consists of: (1) net investment in capital assets, (2) amounts restricted, and (3) amounts that are unrestricted. Net investment in capital assets consists of capital assets reduced by accumulated depreciation, deferred inflow due to advance refunding, and by any outstanding debt incurred to acquire, construct or improve those assets. Net position is reported as restricted when there are third party limitations (statutory, contractual or bond covenant) on its use. Unrestricted net position consists of all net position that does not meet the definition of either of the other two components.

Transfers and Use of Funds

The Act and the provisions of the Bond Resolutions with the Authority’s bondholders, discussed in more detail in Note 5, govern the disposition of revenue and prescribe certain accounting practices of the Authority, which include the conditions for transfers between the various accounts and the use of such funds. The Act was amended in 1985 to increase the maximum amount of funds allowed in the Operations Fund and Reserve Fund.

Cash and Cash Equivalents

Cash includes cash on hand, amounts in demand deposits and cash equivalents, which are short- term, highly liquid securities with readily determinable market values. For purposes of the accompanying statements of cash flows, the Authority considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Investments

The Authority’s investments are reported at fair value using quoted market price or the best available estimate thereof. GASB Statement No. 72, Fair Value Measurement and Application defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Authority categorizes its fair value measurements within the fair value GAAP hierarchy. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. All investment income, including changes in the fair value of investments, is reported as revenue in the accompanying statements of revenues, expenses and changes in net position. As discussed in Note 5, the Authority’s investments in 2019 and 2018 qualified to be reported as cash equivalents as the Authority participates in a qualifying external investment pool that measures all of its investments at amortized cost for financial reporting purposes. Accordingly, the Authority reports no investments at December 31, 2019 or 2018.

Inventories

Inventories of materials and supplies are stated at cost on a first-in, first-out basis.

Capital Assets

Vessels, terminal property, and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method based on the estimated service lives of the related assets. The Authority’s capitalization threshold for a single item is $5,000 or $10,000 for a group of items. The estimated service lives are as follows:

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

Capital Assets…continued

Vessels 10-30 years Buildings and structures: Buildings and wharves 30 years Sheds, fences and pavement 10-20 years Office and terminal equipment: Computer equipment 3-5 years Other 10 years Motor vehicles 5 years Leasehold improvements Shorter of remaining term of lease or estimated useful life

The Authority previously capitalized interest costs incurred in the construction of certain qualifying assets. With the adoption of the GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period in fiscal year 2019, all interest costs incurred during construction in 2019 were expensed. Capitalized interest was $350,270 in 2018. For the years ended December 31, 2019 and 2018, the Authority incurred interest expense from operations of $3,719,413 and $3,312,809, respectively.

Impairments

The Authority assesses the carrying value of property whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. The Authority recognizes impairment losses to the extent the carrying amount exceeds the fair value of the property. The Authority did not record any impairment charges related to its property as of December 31, 2019 and 2018 as there were no indicators of impairment.

Accounts Receivable

Accounts receivable are reported net of an allowance for doubtful accounts. The Authority fully reserves for all receivables greater than 90 days. The allowance for doubtful accounts was $50,000 and $50,781 at December 31, 2019 and 2018, respectively.

Unamortized Bond Premiums and Discounts

Discounts of bonds and premiums on bonds are amortized using the straight-line method over the life of the related bond issue since the results are not significantly different from the effective interest method of amortization.

Risk Financing and Related Insurance Issues

The Authority is self-insured with respect to medical benefits provided to certain employees and retirees. With respect to these medical benefits, the Authority purchases stop-loss insurance, which covers all incurred claims in excess of approximately $2,475,000 in the aggregate; up to a maximum aggregate benefit payment of $1,000,000 per person per year. The Authority purchases commercial insurance to cover all other risks of loss. During the current and previous three years, there have been no settlements in excess of insurance coverage maintained by the Authority.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

Accrued Sick Leave and Vacation

Employees are granted sick leave and vacation in varying amounts. Upon retirement, termination, or death, certain employees are compensated for unused sick leave and vacation (subject to certain limitations) at their then-current rates of pay. The accumulated amount of sick and vacation leave is recorded as an expense and liability as the benefits accrue to employees.

Operating Revenues and Expenses

The Authority distinguishes operating revenues and expenses from nonoperating revenues and expenses in its statement of revenues, expenses and changes in net position. Operating revenues consists of those revenues earned from customers for passage of vehicles and passengers, from parking operations and ancillary activities such as concessions and driver services.

Operating expenses relate to the cost of providing those services and also include administration expenses and depreciation of capital assets. All other revenues and expenses that are not a direct result of the Authority’s functions are considered nonoperating. Examples of nonoperating items include investment earnings, interest expense, gains and losses on the disposal of capital assets and licensing fees.

Unearned Revenue

Unearned revenue consists primarily of fares received from customers for future reservations. Such amounts are recognized as revenue in subsequent periods as they are earned.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities and deferred inflows and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant use of estimates includes assumptions related to the valuation of the OPEB and pension plans, the accrual for claims to be submitted under the Authority’s self-funded health insurance, and the allowance for uncollectible accounts.

Adoption of New Accounting Pronouncements

In November 2016, the GASB issued Statement No. 83, Certain Asset Retirement Obligations. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. The Authority implemented this standard during fiscal year 2019. The implementation of GASB Statement No. 83 did not have a material impact on the Authority’s financial statements.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES…continued

In March 2018, the GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The Authority implemented this standard during fiscal year 2019. The implementation of GASB Statement No. 88 did not have a material impact on the Authority’s financial statements.

In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. The Authority implemented this standard prospectively during fiscal year 2019 and interest costs of $757,404 incurred during construction was expensed.

In August 2018, the GASB issued Statement No. 90, Majority Equity Interests – an amendment to GASB Statements No. 14 and No. 61. The GASB issued this statement to help clarify situations in which a government’s purpose for holding a majority equity interest met both the definition of an investment and the criteria to be reported as a component unit. This standard will improve the reporting of a government’s majority equity interest in a legally separate organization. The Authority implemented this standard during fiscal year 2019. The implementation of GASB Statement No. 90 did not have a material impact on the Authority’s financial statements.

The GASB has issued the following statements, which require adoption subsequent to December 31, 2019, and are applicable to the Authority. The Authority has not yet adopted these statements, and the implications on the fiscal practices and financial reports are being evaluated.

GASB Adoption Statement Required in No. Fiscal Year

84 Fiduciary Activities 2020 87 Leases 2022 91 Conduit Debt Obligations 2022 92 Omnibus 2022 93 Replacement of Interbank Offered Rates 2021 94 Public-private and Public-Public Partnerships and Availability 2023 Payment Arrangements 96 Subscription-Based Information Technology Arrangements 2023

Management has evaluated GASB No. 84 and has concluded the adoption of this standard will have a material effect on the financial statements including the inclusion of a pension fund. Management is currently evaluating the impact of the adoption of the remaining statements will have on its financial statements.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

2. CAPITAL ASSETS

Capital asset activity for the year ended December 31, 2019, was as follows:

Beginning Ending Balance Increases Decreases Balance

Capital assets, not being depreciated: Land $ 27,112,044 $ - $ - $ 27,112,044 Construction in progress 56,108,084 16,120,913 (34,960,729) 37,268,268

Total capital assets, not being depreciated 83,220,128 16,120,913 (34,960,729) 64,380,312

Capital assets, being depreciated: Vessels 161,550,147 19,464,299 - 181,014,446 Buildings and structures 92,230,615 17,821,270 - 110,051,885 Office and terminal equipment 14,891,746 1,306,527 - 16,198,273 Motor vehicles 5,264,440 2,154,692 - 7,419,132 Leasehold improvements 1,479,225 - - 1,479,225

Total capital assets, being depreciated 275,416,173 40,746,788 - 316,162,961

Less accumulated depreciation for: Vessels (93,308,548) (6,005,296) - (99,313,844) Buildings and structures (49,029,470) (4,364,635) - (53,394,105) Office and terminal equipment (12,042,417) (1,989,491) - (14,031,908) Motor vehicles (3,103,900) (448,666) - (3,552,566) Leasehold improvements (1,479,225) - - (1,479,225)

Total accumulated depreciation (158,963,560) (12,808,088) - (171,771,648)

Total capital assets, being depreciated, net 116,452,613 27,938,700 - 144,391,313

Total capital assets, net $ 199,672,741 $ 44,059,613 $ (34,960,729) $ 208,771,625

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2. CAPITAL ASSETS…continued

Capital asset activity for the year ended December 31, 2018, was as follows:

Beginning Ending Balance Increases Decreases Balance

Capital assets, not being depreciated: Land $ 27,112,044 $ - $ - $ 27,112,044 Construction in progress 34,162,905 24,850,214 (2,905,035) 56,108,084

Total capital assets, not being depreciated 61,274,949 24,850,214 (2,905,035) 83,220,128

Capital assets, being depreciated: Vessels 159,778,596 2,139,666 (368,115) 161,550,147 Buildings and structures 92,709,439 - (478,824) 92,230,615 Office and terminal equipment 13,692,581 1,159,324 39,841 14,891,746 Motor vehicles 4,620,194 771,248 (127,002) 5,264,440 Leasehold improvements 1,479,225 - - 1,479,225

Total capital assets, being depreciated 272,280,035 4,070,238 (934,100) 275,416,173

Less accumulated depreciation for: Vessels (87,589,294) (5,719,254) - (93,308,548) Buildings and structures (47,704,510) (4,132,987) 2,808,027 (49,029,470) Office and terminal equipment (11,037,996) (1,004,421) - (12,042,417) Motor vehicles (2,710,446) (419,101) 25,647 (3,103,900) Leasehold improvements (1,479,225) - - (1,479,225)

Total accumulated depreciation (150,521,471) (11,275,763) 2,833,674 (158,963,560)

Total capital assets, being depreciated, net 121,758,564 (7,205,525) 1,899,574 116,452,613

Total capital assets, net $ 183,033,513 $ 17,644,689 $ (1,005,461) $ 199,672,741

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3. STEAMSHIP BONDS OUTSTANDING

The Steamship Bonds outstanding at December 31, are as follows:

2019 2018

2009 Series A, including unamortized bond premium of $22,207 and $41,242 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 2.50% to 4.00%, requiring annual payments of principal beginning March 1, 2011 and semiannual interest payments through March 1, 2021 $ 1,122,207 $ 1,756,242

2009 Series B, including unamortized bond premium of $62,099 and $68,873 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 2.00% to 4.00%, requiring annual payments of principal beginning March 1, 2011 and semiannual interest payments through March 1, 2029 6,237,099 6,738,873

2011 Series A, including unamortized bond premium of $10,537 and $52,686 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 2.00% to 3.00%, requiring annual payments of principal beginning March 1, 2017 and semiannual interest payments through March 1, 2020 1,510,537 3,052,686

2014 Series A, including unamortized bond premium of $525,324 and $975,600 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 4.00% to 5.00%, requiring annual payments of principal beginning March 1, 2016 and semiannual interest payments through March 1, 2021 7,070,324 11,135,600

2015 Series A, including unamortized bond premium of $3,753,070 and $4,158,807 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 3.00% to 5.00%, requiring annual payments of principal beginning March 1, 2021 and semiannual interest payments through March 1, 2029 36,703,070 37,108,807

2017 Series A, including unamortized bond premium of $1,256,010 and $1,429,252 at December 31, 2019 and 2018, respectively, bearing interest at a rate of 5.00%, requiring annual payments of principal beginning March 1, 2018 and semiannual interest payments through March 2, 2027 10,521,010 11,614,252

2018 Series A, including unamortized bond premium of $1,916,576 and $2,144,288 at December 31, 2019 and 2018, respectively, bearing interest at rates ranging from 3.00% to 5.00%, requiring annual payment of principal beginning March 1, 2020 and semiannual interest payments through March 1, 2028 17,831,575 18,059,288

Total Steamship Bonds 80,995,822 89,465,748

Less bonds due within one year (7,520,000) (7,145,000) Total Steamship Bonds—excluding current portion $73,475,822 $82,320,748

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3. STEAMSHIP BONDS OUTSTANDING…continued

2009 Series A Steamship Bonds — On July 21, 2009, the Authority issued $5,000,000 of 2009 Series A Steamship Bonds with interest rates ranging from 2.50% to 4.00%. The proceeds of the bonds were used to refund $5,000,000 in bond anticipation notes, the proceeds of which were used: (i) for the reconstruction and refurbishment of the M/V Nantucket, including without limitation the reconstruction of the deck, the reconstruction of the bridge, and the refurbishment of the vessel’s seating and eating areas; and (ii) to pay the cost of issuance.

2009 Series B Steamship Bonds — On December 1, 2009, the Authority issued $10,000,000 of 2009 Series B Steamship Bonds with interest rates ranging from 2.00% to 4.00%. The proceeds were used for the following purposes: (i) to acquire four (4) parcels of land located in Falmouth, Massachusetts, for parking and other purposes (Project A); (ii) the reconstruction of vessel berthing slips in Hyannis, Massachusetts, for operational efficiency purposes, including without limitation the reconstruction of dolphins, wharves, and transfer bridge and gangways (Project B and together with Project A, the Projects); and (iii) to pay the cost of issuance.

2011 Series A Steamship Bonds — On December 13, 2011, the Authority issued $6,000,000 of 2011 Series A Steamship Bonds with interest rates ranging from 2.00% to 3.00%. The proceeds of the bonds were used for: (i) the reconstruction and refurbishment of the M/V Eagle, including without limitation the replacement of decking, doors and windows; the reconstruction of the snack bar; refurbishment of the vessel’s seating and eating areas and the installation of a marine evacuation slide; and (ii) to pay the cost of issuance.

2014 Series A Steamship Bonds — On December 2, 2014, the Authority issued $20,105,000 of 2014 Series A Steamship Bonds with interest rates ranging from 4.00% to 5.00%. The proceeds of the bonds were used to: (i) refund $22,765,000 of the Authority’s 2004 Series B Bonds maturing in the years 2016 through 2021; and (ii) to pay the cost of issuance. The portion of the bond proceeds used to refund the prior bond obligations was used to purchase U.S. Government obligations, which were deposited into an irrevocable trust to pay the scheduled principal and interest on the 2004 Series B Steamship Bonds. As a result, these bonds are considered defeased by the Authority. Accordingly, the trust account assets and the liability for the defeased bonds have not been included in the Authority’s financial statements. Prior refunded obligations outstanding at December 31, 2019 and 2018, totaled $7,515,000 and $11,585,000, respectively.

2015 Series A Steamship Bonds — On May 8, 2015, the Authority issued $32,950,000 of 2015 Series A Steamship Bonds with interest rates ranging from 3.00% to 5.00%. The proceeds of the bonds were used to: (i) construct a new 235-foot passenger and vehicle vessel, the M/V Woods Hole, with a capacity of approximately 384 passengers and 50 cars, to replace the Authority’s M/V Governor; and (ii) to pay the cost of issuance.

2017 Series A Steamship Bonds — On March 29, 2017, the Authority issued $11,060,000 of 2017 Series A Steamship Bonds with an interest rate of 5.00%. The proceeds were used for the following purposes: (i) to construct a new General Administration Office Building; and (ii) to pay the cost of issuance.

2018 Series A Steamship Bonds — On August 28, 2018, the Authority issued $15,915,000 of 2018 Series A Steamship Bonds with interest rates ranging from 3.00% to 5.00%. The proceeds were used for the following purposes: (i) to reconstruct the waterside facilities at the Woods Hole Ferry Terminal; and (ii) to pay the cost of issuance.

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3. STEAMSHIP BONDS OUTSTANDING…continued

Scheduled Debt Service Requirements

The annual scheduled debt service requirements of all Steamship Bonds outstanding at December 31, 2019, are as follows, exclusive of bonds defeased:

Principal Interest Total Year Ending December 31 Payments Payments Payments

2020 $ 7,520,000 $ 3,178,781 $ 10,698,781 2021 7,865,000 2,823,844 10,688,844 2022 7,055,000 2,461,863 9,516,863 2023 7,390,000 2,109,250 9,499,250 2024 7,780,000 1,738,100 9,518,100 2025-2029 35,840,000 3,197,875 39,037,875 Total $ 73,450,000 $ 15,509,713 $ 88,959,713

Principal payments reported above are exclusive of the deferred gain arising from prior bond defeasances of $117,409 and unamortized bond premium of $7,545,822.

Bonds payable activity for the year ended December 31, 2019, was as follows:

Beginning Ending Due Within Balance Increases Decreases Balance One Year Bonds payable: Steamship Bonds $ 80,595,000 $ - $ (7,145,000) $ 73,450,000 $ 7,520,000 Issuance Premiums 8,870,748 - (1,324,926) 7,545,822 - $ 89,465,748 $ - $ (8,469,926) $ 80,995,822 $ 7,520,000

Bonds payable activity for the year ended December 31, 2018, was as follows:

Beginning Ending Due Within Balance Increases Decreases Balance One Year Bonds payable: Steamship Bonds $ 71,565,000 $ 15,915,000 $ (6,885,000) $ 80,595,000 $ 7,145,000 Issuance Premiums 7,823,671 2,220,192 (1,173,115) 8,870,748 - $ 79,388,671 $ 18,135,192 $ (8,058,115) $ 89,465,748 $ 7,145,000

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

4. LEASE COMMITMENTS

Operating Leases — The Authority has several noncancelable operating lease commitments at December 31, 2018, with terms in excess of one year. Future minimum lease payments under operating leases are as follows:

Years Ending December 31

2020 $ 654,064 2021 370,029 2022 318,191 2023 310,899 2024 233,191 2025-2028 293,750 Total $ 2,180,124

Aggregate rental expense for the years ended December 31, 2019 and 2018, was $792,912 and $768,108, respectively.

5. DEPOSITS AND INVESTMENTS

The Steamship Authority’s Board has the sole responsibility for establishing and revising investment policy. In June 2003, the Authority adopted a formal investment policy for all of its operations funds and special-purpose restricted funds. In March 2017, the Steamship Authority’s Board reaffirmed the investment policy. The investment strategy is to invest substantially in short- term securities. Permitted investments will consist of obligations issued or secured by the U.S. Government or agencies of the U.S. Government and overnight repurchasing agreements with banks or in mutual funds composed of the above types of investments. The Authority can also invest in the Massachusetts Municipal Depository Trust (MMDT or the Trust), a pooled money- market-like investment fund managed by the Commonwealth and established under Massachusetts General Laws, Chapter 29, Section 38A.

Investment options which are offered by MMDT include a cash portfolio which offers participation in a diversified portfolio of high-quality money-market instruments that seek the highest possible level of current income consistent with preservation of capital and liquidity and a short-term bond portfolio which offers participation in a diversified portfolio of investment-grade, short-term, fixed- income securities that seeks to generate performance exceeding the Barclays 1-5 year government/credit bond index, presenting a fixed-income alternative with a longer time horizon than the cash portfolio. A participant’s holdings in the Trust are not subject to creditors of the Commonwealth, nor will the Trust itself be affected by the financial difficulties of any participant. Amounts held at MMDT are uninsured and uncollateralized. The Authority’s investment balance with MMDT as of December 31, 2019 and 2018 were solely in the cash portfolio. The cash portfolio is not registered with the Securities and Exchange Commission as an investment company, but maintains a policy to operate in a manner as a qualifying external investment pool as defined by GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools.

The cash portfolio also adheres to GASB Statement No. 79, Certain External Investment Pools and Pool Participants, which amends Statement No. 31 and establishes accounting and financial reporting standards for state and local governments that participate in a qualifying external investment pool that measures for financial reporting purposes all of its investments at amortized cost. At December 31, 2019 and 2018 the Authority’s deposits with MMDT totaled $24,841,657 and $38,040,471, respectively. A copy of the financial statements of MMDT can be obtained from the Office of the State Treasurer, 1 Ashburton Place, Boston, MA 02110.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

5. DEPOSITS AND INVESTMENTS…continued

Cash and Cash Equivalents

The total amount of the Authority’s cash and cash equivalents at December 31, respectively, are as follows:

2019 2018

Cash, including trust and custody agreements $ 8,848,068 $ 10,469,489 MMDT 24,841,657 38,040,471 Total $ 33,689,725 $ 48,509,960

Custodial Credit Risk

Custodial credit risk exists for cash deposits when, in the event of a failure of a depository financial institution, the Authority’s deposits may not be recovered. The Authority does not have a formal policy with regard to custodial credit risk but generally invests in securities or financial institutions which have either short-term rating of “A” or government securities of “AAA.” Bank deposits are Federal Depository Insurance Corporation or Massachusetts Depositors Insurance Fund insured as of December 31, 2019 and 2018. Bank trust and custody agreements include pledged holdings and irrevocable stand-by letters of credit issued by the various financial institutions as collateral for the Authority’s deposits. The total amounts of Authority deposits in financial institutions, per the bank statements, at December 31, respectively, are as follows:

2019 2018

Balance per banks $ 13,620,329 $ 13,492,804 Deposits covered by: Federal Depository Insurance Corporation (1,000,000) (845,076) Massachusetts Depositors Insurance Fund (669,580) (264,160) Bank trust and custody agreements (9,270,101) (9,766,143) Total uninsured and uncollateralized deposits $ 2,680,648 $ 2,617,425

Interest Rate Risk and Credit Risk

Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment’s fair value. The Authority does not have a formal policy with regard to interest rate risk. The majority of the Authority’s investments are in MMDT, a pooled money-market-like investment fund.

Credit risk exists when there is a possibility that the issuer of an investment may be unable to fulfill its obligations. The Authority does have a formal policy with regard to credit risk. It should be noted, however, that the investment portfolio may be no more than 25% invested in securities of a single issuer, except for obligations of the U.S. Government.

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5. DEPOSITS AND INVESTMENTS…continued

Interest Rate Risk and Credit Risk…continued

The Authority maintains cash, cash equivalents, and investments available for use by all funds, in the manner provided below, as set forth by the Authority’s Enabling Act, as amended.

The revenues derived from the operation of the Steamship Authority are set aside in funds as defined in the Act and provisions of the Board Resolutions. Monies in these funds on the last day of the preceding month shall be transferred:

• To the Sinking Fund — such amount, if any, as may be required for the payment of the interest on and the principal of all bonds as the same shall become due and payable;

• To the Bond Redemption Fund — all of the remaining revenue to be used within a reasonable time for the purchase or redemption of bonds or, in the Authority’s discretion, to be transferred to the Property Replacement Fund or to the Capital Improvement Fund to be used for any purposes for which bonds may be issued;

• To the Property Replacement Fund — such amount, if any, as may be deemed necessary or advisable for depreciation of property and for obsolescence and losses with respect to property sold, destroyed, or abandoned and for improvements to, and acquisitions of, real and personal property (the Authority’s current policy is to limit any transfers to the Property Replacement Fund in any given year to the amount of the prior year’s depreciation expense);

• To the Reserve Fund — such amount, if any, as may be required to make the balance therein equal to 5% of the principal amount of all outstanding bonds, exclusive of bonds considered as defeased, or $600,000, whichever is greater; and

• To the Operations Fund — such amount, if available, as may be required to pay the cost of maintenance, repair, and operation of the Steamship Line for the current month and the next ensuing month and to maintain working capital for such purposes in an amount not to exceed one thirty-sixth of the operating budget for the then-current fiscal year.

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6. PENSION PLANS

The Authority provides retirement benefits to its employees through various defined benefit and defined contribution pension plans.

Defined Benefit Pension Plans Sponsored By the Authority:

Description of Plans

Nonunion Plan

The Authority has in effect a single employer, defined benefit pension plan established in 1968 for eligible nonunion employees (the Nonunion Plan). The Nonunion plan reporting date is February 28th of each year.

Administration of the Plan

The Nonunion Plan is administered by the Authority. The Trustee, Principal Mutual Life Insurance Company, holds the investment securities of the Nonunion Plan and executes related transactions under custodial agreements with the Nonunion Plan and the Authority. Separate financial statements are not issued for the Nonunion Plan.

Participation and Vesting

Employees not under collective bargaining agreements whose customary employment with the Authority is for at least 30 hours per week and are employed or expected to be employed on a year-round basis may participate in the Nonunion Plan.

Participants’ benefits become fully vested after five years of service in the Nonunion Plan. Benefit payments are made to participants of the Nonunion Plan or their beneficiaries in varying amounts according to the provisions of the Nonunion Plan.

Plan Amendment and Termination

The Nonunion Plan may be amended or terminated in whole or in part, at any time by the Authority, provided that no such modification, amendment, or termination shall be made that would deprive a current participant of rights or benefits provided under the Nonunion Plan.

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6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Normal Retirement Benefits

The normal form of retirement benefit is a monthly annuity payable for life with payments guaranteed for five years (optional forms of payment may be elected in advance of retirement), commencing on the normal retirement date. The normal retirement date for participants who joined the Nonunion Plan prior to March 1, 1992, is the earliest of (a) attainment of age 65 and completion of 20 years of service, (b) attainment of age 62 and completion of 25 years of service, or (c) attainment of age 60 and completion of 30 years of service. The amount of benefits is equal to 75% of average compensation for the last three years multiplied by an accrued benefit adjustment (as defined in the Nonunion Plan). The normal retirement date for participants who joined the Nonunion Plan on or after March 1, 1992, is the earliest of (a) attainment of age 65 and completion of five years of service, (b) attainment of age 62 and completion of 25 years of service, or (c) attainment of age 60 and completion of 30 years of service. The amount of benefits is equal to 2.5% of average compensation multiplied by years of service (maximum of 30 years). The normal retirement date for participants who join the Nonunion Plan on or after March 1, 2011, is the attainment of age 65 and completion of 10 years of service. The amount of benefits is equal to 2.0% of average compensation multiplied by years of service (maximum of 30 years). Average compensation is defined as average monthly pay received during the three-year period preceding the normal retirement date.

Participants in the Nonunion Plan prior to March 1, 1992, are entitled to a benefit based upon the greater of the benefits allowed under the plan as it existed prior to March 1, 1992 or the benefits allowed to participants who join on or after March 1, 1992.

Employees covered by benefit terms

At February 28, 2019, the following employees were covered by the benefit terms:

Active plan members 76 Inactive plan members entitled to but not yet receiving benefits 29 Retired plan members or beneficiaries currently received benefits 41 Total 146

Cost-of-Living Adjustment

As of March 1, 2002, the Nonunion Plan was amended to include an annual cost of living increase to participants receiving monthly payments under the Nonunion Plan. The cost of living increase is based on half of the percentage increase in the consumer price index from year to year with the aggregate cost of living increase not to exceed 50% of the value of the participant’s benefit as of the annuity starting date.

As of March 1, 2011, the Nonunion Plan was amended to exclude an annual cost of living increase to participants receiving monthly payments under the Nonunion Plan who became participants on or after March 1, 2011.

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6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Contributions

Employees who become participants in the Nonunion Plan are currently required to contribute 3.0% of salary. The Authority currently contributes 25.0% of annual covered payroll for the Nonunion Plan. For the Plan years ended February 28, 2019 and February 28, 2018, the Authority contributed $1,495,724 and $1,505,097, respectively towards the Nonunion Plan. For the period March 1, 2019 through December 31, 2019 the Authority contributed $1,526,300 towards the Nonunion Plan. These contributions are recorded as deferred outflow on pensions in the statement of net position.

Disability Benefits

There are no disability benefits payable under the Nonunion Plan.

Early Retirement Benefits

Early retirement benefits are in the same form as normal retirement benefits and commence on the early retirement date. The early retirement date must be within the 10-year period preceding the normal retirement date. Benefits are reduced for each year that the early retirement date precedes the normal retirement date.

Investments

Investments are valued as of the measurement date. Investments are in separate accounts held at The Principal Financial Group in commingled pools, rather than individual securities, and are valued at fair market value. All investments held by pension trust fund are in Level I securities, with the exception of a real estate fund valued at $1,902,533, which is a Level II investment. Principal Financial Advisors, Inc., a registered investment advisor and wholly owned subsidiary of Principal Financial Group, has been hired to manage the asset allocation strategy for the Nonunion Plan.

The investment strategy is to build an efficient, well-diversified portfolio based on a long-term, strategic outlook of the investment markets. The investment market outlook utilizes both historical-based and forward-looking return forecasts to establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the needs of the Nonunion Plan. The core asset allocation utilizes investment portfolios of various asset classes and multiple investment managers in order to help maximize the plan’s return while providing multiple layers of diversification to help minimize risk.

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6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Actuarial Assumptions

Assumed Valuation Actuarial Cost Asset Valuation Amortization Amortization Rate of Inflation Salary Date Method Method Method Period Return Rate Increases 02/28/2019 Entry Age Market value Level dollar 20-30 years 5.50% 2.25% S5 + 1.75% 02/28/2018 Entry Age Market value Level dollar 20-30 years 5.50% 2.00% S5 + 1.75% 02/28/2017 Entry Age Market value Level dollar 20-30 years 5.50% 2.00% S5 + 1.75% 02/29/2016 Entry Age Market value Level dollar 20-30 years 6.25% 2.25% S5 + 1.75% 02/28/2015 Entry Age Market value Level dollar 20-30 years 6.25% 2.25% S5 + 1.75%

Based on PUBG-2010 General base rate mortality table projected to future years with historical and assumed mortality improvement (MI) rates using the MP-2019 mortality improvement scale, PUBG-2010 is the baseline mortality rate table underlying the SOA PUB-2010 experience study published in January 2019.

Money-weighted Rate of Return

The money-weighted rate of return is calculated as a rate of return on pension plan investments incorporating the actual timing and amount of cash flows. This return is calculated net of investment expenses. The annual money-weighted rate of return on plan investments for the measurement period of March 1, 2018 to February 28, 2019 is 1.68%.

Expected Rate of Return

The expected long-term return of 5.50% on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the Long-Term Capital Market Assumptions (CMA) 2018. The capital market assumptions were developed with a primary focus on forward-looking valuation models and market indicators. The key fundamental economic inputs for these models are future inflation, economic growth, and interest rate environment. Due to the long-term nature of the pension obligations, the investment horizon for the CMA 2018 is 20 years. In addition to forward-looking models, historical analysis of market data and trends was reflected, as well as the outlook of recognized economists, organizations and consensus CMA from other credible studies.

The plan’s target asset allocations, as of February 28, 2019, are summarized in the following table:

Expected Expected Target Arithmetic Geometric Asset Class Allocation Return Return

US Equity - Large Cap 23.44% 7.70% 6.35% US Equity - Mid Cap 2.66% 7.95% 6.35% US Equity - Small Cap 1.38% 8.50% 6.35% Non-US Equity 12.99% 7.95% 6.35% REITs 0.37% 7.60% 5.95% Real Estate (direct property) 5.67% 5.55% 5.25% TIPS 0.57% 3.50% 3.35% Core Bond 48.86% 4.00% 3.90% High Yield 4.06% 6.45% 6.00%

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6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Changes in the Authority’s net pension liabilities for the year ending December 31, 2019 are as follows:

Total Plan Net Pension Fiduciary Pension Liability Net Position Liability

Balance at December 31, 2018 $ 41,060,447 $28,092,761 $12,967,686

Changes for the year: Service Cost 1,144,364 - 1,144,364 Interest 2,040,465 - 2,040,465 Differences between expected and actual experience (692,738) - (692,738) Changes in assumptions 1,724,223 - 1,724,223 Contributions - employer - 1,495,724 (1,495,724) Contributions - employee - 163,708 (163,708) Net investment income - 477,170 (477,170) Benefit payments, including refunds of employee contributions (1,310,113) (1,310,113) - Administrative expenses - (8,000) 8,000 Net change 2,906,201 818,489 2,087,712 Balance at December 31, 2019 $ 43,966,648 $ 28,911,250 $ 15,055,398

Statement of Deferred Outflows and Inflows of Resources

As of February 28, 2019 the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions as follows:

Deferred Deferred Outflows of Inflows of Resources Resources

Differences between expected and actual experience $ 868,840 $ (561,968) Effects of changes in assumptions 1,673,509 (115,159) Net difference between expected and net investment income 1,385,108 (1,112,898) Employer contributions subsequent to measurement period 1,526,300 - Total Deferred Outflows and Inflows of Resources $ 5,453,757 $ (1,790,025)

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6. PENSION PLANS…continued

Defined Benefit Pension Plans Sponsored By the Authority…continued:

Nonunion Plan…continued

Amounts reported as deferred outflows and inflows of resources related to pensions (excluding employer contributions subsequent to measurement period) will be recognized in the pension expense as follows:

Amount to be Recognized

2020 $ 938,945 2021 409,156 2022 456,002 2023 333,329

Discount Rate

The discount rate used to determine the end of period total pension liability is 4.85%.

The plan’s fiduciary net position and benefit payments were projected to determine if the plan’s fiduciary net position was greater than or equal to the expected benefit payments for each period from 2019 to 2050.

The long-term rate of return of 5.50% is used to calculate the actuarial present value of projected payments for each future period when the projected fiduciary net position is greater than the projected expected benefit payments. Otherwise, a municipal bond rate of 3.93% is used. The municipal bond rate is from Barclays Municipal GO Long Term (17+ Y) Index, which includes 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher securities, as of the February 28, 2019 measurement date. The discount rate is a single rate that incorporates the long-term rate of return and municipal bond rate as described.

The discount rate used to determine the beginning of period total pension liability is 4.90%. The municipal bond rate as of February 28, 2018 was 3.96%.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following represents the net pension liability of the Plan as of February 28, 2019, calculated using the discount rate of 4.85%, as well as what the net pension liability would be if it were to be calculated using a discount rate that is one percentage point lower (3.85%) or one percentage point higher (5.85%) than the current rate:

1% Decrease Discount 1% Increase Plan Year Ended (3.85%) Rate (4.85%) (5.85%)

February 28, 2019 $ 21,272,228 $ 15,055,398 $ 9,887,639

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Contribution Plans Sponsored by the Authority:

Licensed Deck Officers Plan

The Authority also has a defined contribution plan for its licensed deck officers. Prior to July 27, 2013, the Authority was required to contribute an amount equal to 10.75% of base weekly earnings for each employee. Effective July 27, 2013, the Authority was required to contribute an amount equal to 7.50% of base weekly earnings for each employee. The Authority’s required and actual contributions aggregated $380,643, $353,959 and $312,051 for 2019, 2018 and 2017, respectively.

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Principal Mutual Life Insurance Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All licensed deck officers (captains, pilots, and mates) are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

Parking Lot Employees and Shuttle Bus Drivers Plan

The Authority also has a defined contribution plan for its permanent parking lot employees/shuttle bus drivers. Effective May 28, 2011, the Authority is required to contribute an amount equal to 5.0% of base weekly earnings for each permanent parking lot employee/shuttle bus driver. As a result of a collective bargaining agreement effective from May 7, 2016 through May 7, 2021, beginning December 24, 2016 the Authority discontinued making contributions to this defined contribution plan on behalf of most of its permanent parking lot employees/shuttle bus drivers. Instead, the Authority will make contributions on behalf of these employees to the New England Teamsters and Trucking Industry Pension Fund Plan. However, the Authority will continue making the contribution of 5% of base weekly earnings on behalf of a small number of permanent parking lot employees/shuttle bus drivers who were approaching retirement and wished to remain in the plan, and were allowed to do so under the collective bargaining agreement. The Authority’s required and actual contributions for this plan aggregated $4,012, $4,834 and $6,787 for 2019, 2018 and 2017, respectively.

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Prudential Trust Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All permanent parking lot employees/shuttle bus drivers are eligible to participate in the Plan. Participants are 100% vested at all times.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Contribution Plans Sponsored by the Authority…continued:

Parking Lot Employees and Shuttle Bus Drivers Plan…continued

Employee Contributions

No employee contributions are made under the Plan.

Security Employees Plan

The Authority also has a defined contribution plan for its permanent security employees. The Authority is required to contribute an amount equal to 5.0% of base weekly earnings for each security employee. As a result of a collective bargaining agreement effective from July 23, 2016 through July 23, 2021, beginning December 24, 2016 the Authority discontinued making contributions to this defined contribution plan on behalf of most of its permanent security employees. Instead, the Authority will make contributions on behalf of these employees to the New England Teamsters and Trucking Industry Pension Fund Plan. However, the Authority will continue making the contribution of 5% of base weekly earnings on behalf of a small number of permanent security employees who were approaching retirement and wished to remain in the plan, and were allowed to do so under the collective bargaining agreement. The Authority’s required and actual contributions for this plan aggregated $3,107, $2,665 and $3,908 for 2019, 2018 and 2017, respectively.

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Prudential Trust Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All permanent security employees are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

Unlicensed Vessel Employees Plan

The Authority also has a defined contribution plan for its permanent unlicensed vessel employees. Effective August 23, 2014, the Authority is required to contribute an amount equal to 3.5% of base weekly earnings for each employee. Prior to that, the Authority was required to contribute an amount equal to 10.0% of base weekly earnings for the period April 15, 2000 through August 22, 2014; 9.0% from April 17, 1999 through April 14, 2000; 7.5% from April 18, 1998 through April 16, 1999; and 6.0% through April 17, 1998. The Authority’s required and actual contributions aggregate $314,122, $280,951 and $268,780 for 2019, 2018 and 2017, respectively.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Defined Contribution Plans Sponsored by the Authority…continued:

Unlicensed Vessel Employees Plan…continued

Administration of the Plan

The Plan is administered by the Authority. The Trustee, Prudential Trust Company, holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan and the Authority.

Participation and Vesting

All permanent unlicensed vessel employees are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

Multiemployer - Licensed Engineering Officers Plan

The Authority contributes to a multiemployer defined contribution plan for its licensed engineering officers. The Authority is required to contribute an amount equal to 10.667% of base weekly earnings for each employee on the permanent Chief Engineers roster as of August 1, 2008, and $12.50 per day for each engineering officer not on the permanent Chief Engineers roster as of August 1, 2008. In January 2012, the Authority discontinued contributing to the multiemployer defined contribution plan and instead began contributing to a multiemployer pension plan, administered by the Marine Engineers Beneficial Association Pension Trust at a rate of 11.7% of earnings.

Administration of the Plan

The Plan is administered by the Marine Engineers Beneficial Association Pension Trust, Trustee. The Trustee holds the investment securities of the Plan and executes related transactions under custodial agreements with the Plan.

Participation and Vesting

All engineering officers (chief engineers, third assistant engineers) are eligible to participate in the Plan. Participants are 100% vested at all times.

Employee Contributions

No employee contributions are made under the Plan.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Employer Contributions

Effective August 2016, the Authority resumed contributions to the defined contribution plan at a rate of 2.74%. In August 2017, the Authority’s contribution rate changed to 4.0% and in August 2018 the contribution rate changed to 5.0%. The Authority’s required and actual contributions aggregate $148,546, $121,873 and $79,347 for 2019, 2018 and 2017, respectively.

Deferred Compensation Plan

The Authority has a deferred compensation plan, in accordance with Internal Revenue Code Section 457, available to all regular full-time employees. Under the terms of the plan, employees who wish to participate may have contributed up to a maximum of $19,000 in 2019 and $18,500 in 2018 of their annual compensation. A “catch up” contribution for those employees 50 years of age or older is allowed; this amount is limited to an additional $6,000 per year. The Authority did not contribute to the plan in 2019 or 2018.

Multiemployer Pension Plans

The Authority provides benefits to certain of its employees by making contributions to various multiemployer pension plans. Such plans are available to all full-time union employees not covered by the Authority’s single employer pension plan, and their eligibility in the plans commences upon employment. There were no outstanding payables under any of the plans for the year ending December 31, 2019. The schedule of employer contributions to the plans, presented as required supplementary information following the notes to the financial statements, present historical contributions made to each plan. None of these pension plans issue publicly available financial statements.

• The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Licensed Deck Officers. The active union contract was executed effective July 30, 2016, and has a term ending July 30, 2021. The contribution rate, effective October 29, 2013, has been negotiated at $7.50 per hour to a maximum of $315.00 per week, per employee. During 2019, contributions were made for 66 employees totaling $831,019.

• The Marine Engineers Beneficial Association (M.E.B.A.) Pension Plan covered the Authority’s Licensed Engineering Officers. The active union contract was executed effective July 30, 2016, and has a term ending July 30, 2021. The contribution rate, effective January 1, 2012, has been negotiated at 11.7% of the total wages per employee. Effective May 1, 2015, an additional $6.00 per day was redirected from the M.E.B.A. Medical and Benefits Plan towards the pension plan. During 2019, contributions were made for 49 employees totaling $457,882.

• The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Unlicensed Vessel Employees. The active union contract was executed effective April 15, 2017, and has a term ending April 16, 2021. The contribution rate, effective January 1, 2017, has been negotiated at $5.00 per hour to a maximum of $210.00 per week, per employee. During 2019, contributions were made for 195 employees totaling $1,625,323.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

6. PENSION PLANS…continued

Multiemployer Pension Plans…continued

• The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Maintenance Employees. The active union contract was executed effective April 16, 2016, and has a term ending April 16, 2021. The contribution rate, effective April 1, 2011, has been negotiated at $6.37 per hour to a maximum of $254.80 per week, per employee. During 2019, contributions were made for 39 employees totaling $473,074.

• The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Agency and Terminal Employees. The active union contract was executed effective April 16, 2016, and has a term ending April 16, 2021. The contribution rate, effective April 1, 2011, has been negotiated at $4.64 per hour to a maximum of $185.60 per week, per employee. During 2019, contributions were made for 120 employees totaling $950,852.

• The Massachusetts Service Employee’s Pension Fund Plan covered the Authority’s Reservation Clerks and Group Sales employees. The active union contract was executed effective August 22, 2015, and has a term ending August 24, 2018. The contribution rate, effective January 1, 2016, has been negotiated at $0.50 per hour to a maximum of $20.00 per week, per employee. During 2019, contributions were made for 39 employees totaling $25,470.

• The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Parking Lot Employees/Shuttle Bus Drivers. The active union contract was executed effective May 7, 2016, and has a term ending May 7, 2021. The contribution rate, effective December 24, 2016, has been negotiated at $1.00 per hour to a maximum of $40.00 per week, per employee. During 2019, contributions were made for 43 employees totaling $50,933.

• The New England Teamsters and Trucking Industry Pension Fund Plan covered the Authority’s Security Employees. The active union contract was executed effective July 23, 2016, and has a term ending July 23, 2021. The contribution rate, effective April 1, 2011, has been negotiated at $1.00 per hour to a maximum of $40.00 per week, per employee. During 2019, contributions were made for 11 employees totaling $18,791.

The covered payroll of such employees was $32,328,881, $30,058,984 and $28,485,627 in 2019, 2018 and 2017, respectively. The Authority’s contributions to the Plans met the contribution requirements in 2019, 2018, and 2017, and aggregated $4,287,973 (14.3% of covered payroll for employees participating in the Plans in 2019), $4,146,439 (15.9% of covered payroll for employees participating in the Plans in 2018), and $4,035,501 (15.0% of covered payroll for employees participating in the Plans in 2017).

Pension Withdrawal Obligations

In March 2011, the Steamship Authority entered into successor collective bargaining agreements, with Teamster Local 59, with respect to its maintenance employees and its agency and terminal employees. Terms of the agreements allow the Authority to withdraw from the New England Teamsters and Trucking Industry Pension Fund (the Fund). The agreements provide that the Authority shall fully satisfy its withdrawal liability to the Fund by making 300 monthly withdrawal liability payments, each in the amount of $83,333, beginning October 2011.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

Pension Withdrawal Obligations…continued

In addition, the Authority will enter into the New England Teamsters and Trucking Industry Pension Fund “New Employer Pool”. The Authority’s participation in the New Employer Pool requires that any future withdrawal liability be computed by the Direct Attribution Method under terms of the Employee Retirement Income Security Act of 1974 (ERISA §4211). In 2019 and 2018, the Authority made payments totaling $1,000,000, respectively, towards the withdrawal liability. Interest payments totaled $480,318 and $499,716 in 2019 and 2018, respectively. Pension withdrawal obligation totaled $12,323,652 and $12,843,333 as of December 31, 2019 and 2018, respectively, and are recorded in the Statements of Net Position using the present value of the obligation based upon incremental borrowing costs.

7. OTHER POSTEMPLOYMENT BENEFITS (OPEB)

Plan Description

In addition to the pension benefits described in Note 6, the Authority provides postemployment health care benefits for eligible employees who render at least 20 years of service and attain age 62 while in service until the employee is eligible for Medicare. The benefits, benefit level, employee contributions, and employer contributions are governed by the Authority and collective bargaining agreements. As of December 31, 2019, the actuarial valuation date, approximately 298 active employees and 26 retirees meet eligibility requirements. The plan does not issue separate stand- alone financial statements.

Benefits Provided

Medical coverage, excluding dental, under the group health insurance plan for regular full-time nonunion employees, licensed deck officers, and unlicensed vessel personnel with 20 or more years of service who retire after reaching age 62 will continue until the employee is eligible for Medicare. Coverage for the dependents of such regular full-time employees will also continue during this period provided that the employee pay 50% of the enrollment cost as established annually by the Plan administrator. Once the retired employee is entitled to Medicare, health care coverage for the employee’s spouse will continue as provided for under COBRA, provided that the employee pay 100% of the enrollment cost as established annually by the Plan administrator.

Funding Policy

Effective January 1, 2013, the nonunion retired employee must pay 20% of the enrollment cost (the working rate) as established annually by the Plan administrator. Effective July 27, 2013, the licensed deck officer retired employee must pay 20% of the enrollment cost (the working rate) as established annually by the Plan administrator. Effective August 2, 2014, the unlicensed vessel retired employee must pay 20% of the enrollment cost (the working rate) as established annually by the Plan administrator. The Authority contributes the remainder of the health plan costs on a pay-as-you-go basis.

Measurement Date

GASB Statement No. 74 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions and GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, requires the net OPEB liability to be measured as of the OPEB Plan’s most recent fiscal year-end. Accordingly, the net OPEB liability was measured as of December 31, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2019.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

7. OTHER POSTEMPLOYMENT BENEFITS (OPEB)…continued

Employees Covered by Benefit Terms – the following table represents the Plan’s membership as of December 31, 2019:

Retirees or beneficiaries currently receiving benefits 26 Active Employees 298 Total 324

Changes in the Total OPEB Liability

Increase (Decrease)

Balance at December 31, 2018 $ 2,328,945

Changes for the year: Service cost 78,214 Interest on liability and service cost 87,735 Benefit payments (136,396) Net Changes 29,553

Balance at December 31, 2019 $ 2,358,498

Sensitivity of the Total OPEB liability to changes in the discount rate

Current 1% Decrease Discount Rate 1% Increase (2.75%) (3.75%) (4.75%)

Total OPEB liability $ 2,536,539 $ 2,358,498 $ 2,198,451

Sensitivity of the Total OPEB liability to changes in the healthcare cost trends

Current 1% Decrease Trend 1% Increase (2.75%) (3.75%) (4.75%)

Total OPEB liability $ 2,212,426 $ 2,358,498 $ 2,525,051

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

7. OTHER POSTEMPLOYMENT BENEFITS (OPEB)…continued

OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

Deferred inflows of resources: Amortization $ 32,639 Total deferred inflows of resources $ 32,639

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the health care cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the plan as understood by the Authority and plan members and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The assumptions follow:

Actuarial cost method: Individual entry age normal Medical care inflation: 5.00% Discount rate: 2.74% Mortality table used: RP-2014 Blue Collar Mortality table for male and female, generational with scale MP-2016 Interest: Pay-as-you-go: 4% per year Disability: 1897 Commissioner’s Group Disability table for male and female with six-month elimination period.

Retirement rate assumptions: Age 62 63 64 65 Male 30% 25% 22% 100% Female 15% 13% 18% 100%

8. COMMITMENTS

Construction in progress at December 31, 2019 consisted of expenditures by the Authority for various construction projects, which management expects will be completed in the years 2020, 2021, and 2022. At December 31, 2019, remaining construction commitments for these capital projects aggregated $28,912,730. In addition, dry-docking and overhaul commitments for vessels aggregated $6,543,396.

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Page 49 Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

9. CONTINGENCIES

In the normal course of operations, the Authority has been named in various claims and litigation. Based upon information available to counsel and the Authority, management believes that the ultimate outcome from these claims and litigations will not have a material adverse effect on the Authority’s financial position.

The Authority applies for and occasionally receives financial assistance from the federal government’s various grant programs for specific projects. When this occurs, the entitlements to the resources are generally conditional upon compliance with terms and conditions of the grant agreements and applicable federal regulations, including the expenditure of resources for eligible purposes. Substantially all federal financial assistance is subject to financial and compliance audits. Any disallowance becomes a liability of the Authority.

10. RISK MANAGEMENT

The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Authority has purchased commercial insurance for these risks, except for those risks identified in the following paragraph, which the Authority accounts for in accrued expenses.

Group Health

The Authority has chosen to establish a risk financing fund for risks associated with the employees’ health insurance plan. The total charge is calculated using trends in actual claims experience. Provisions are also made for unexpected and unusual claims.

Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Liabilities are recorded as a component of accounts payable in the Authority’s statements of net position. Claim liabilities are calculated based on recent claim settlement trends, including frequency and amount of pay-outs. The calculation includes a weighted-three-year-average of claims paid by group with an adjustment made to claims to account for increases in medical cost based on the Consumer Price Index — Medical (CPI-Med). The Authority carries stop-loss insurance on individual medical claims in excess of $150,000 per person and approximately $2,475,000 in the aggregate, up to a maximum aggregate benefit payment of $1,000,000 per person per year. An analysis of claims activities is presented below:

2019 2018 Liability as of January 1 $ 195,018 $ 131,897 Current-year charges and changes in estimate 3,307,900 2,569,307 Actual claims paid (3,112,781) (2,506,186) Liability as of December 31 $ 390,137 $ 195,018

Such amounts are recorded as a component of current liabilities in the statements of net position.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

11. HEDGE PROGRAM

The Authority manages a fuel oil hedging program, which is intended to take advantage of market conditions to cap fuel expense. The objectives of the program are to (1) identify exposure to movements in energy prices, (2) understand the impact to the Authority’s financial position, (3) employ all reasonable and prudent measures to mitigate the impact of price movements, and (4) manage the volatility of energy costs to acceptable levels. The hedge program attempts to transform the unacceptable risks of skyrocketing energy prices into an acceptable form, similar to an insurance policy.

The Steamship Authority’s hedging program operates under a non-speculative philosophy and transactions are limited to expected energy volumes anticipated in the normal course of operations. The Authority’s hedging strategy may include fixed-price swaps, collars, or caps. The program is designed to allow the Authority to benefit from prices that fall below the cap while offering some protection that pricing will not exceed the cap price.

As of December 31, 2019, the Authority had executed hedging transactions for 2,730,000 gallons of fuel out of the approximate 3,298,000 gallons of fuel, which is expected to be used in 2020. The cost of these call options totaled $532,410 at December 31, 2019.

As of December 31, 2018, the Authority had executed hedging transactions for 2,898,000 gallons of fuel out of the approximate 3,304,000 gallons of fuel, which is expected to be used in 2019. The cost of these call options totaled $506,846 at December 31, 2019.

As the Authority’s hedging is for fuel oil used in the operation of its vessels and the monthly call options are for quantities lower than the quantities reasonably expected to be consumed, these activities qualify for to the exclusion provided for in GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, and therefore not required to be reported as derivative instruments.

12. SUBSEQUENT EVENTS

The Authority has evaluated events and transactions for potential recognition or disclosure through June 30, 2020, when the financial statements were available to be issued.

On January 30, 2020, the World Health Organization declared the coronavirus outbreak a “Public Health Emergency of International Concern” and on March 10, 2020 declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. The coronavirus and action taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, include the geographical area in which the Authority operates. While it is unknown how long these conditions will last and what to complete financial effect will be to the Authority, it is reasonably possible that certain estimates made in the financial statements have been, or will be, materially and adversely impacted in the near term as a result of these conditions.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Notes to Financial Statements Years Ended December 31, 2019 and 2018

12. SUBSEQUENT EVENTS…(continued)

The Authority entered into various irrevocable stand-by letters of credits with TD Bank, N.A. subsequent to year-end that will serve as collateral for the Authority’s public deposits subsequent to December 31, 2019. As of February 20, 2020, the issued letter of credit presented below remains outstanding:

Issuance Date Due Date Amount

January 28, 2020 March 31, 2020 $ 1,500,000

January 23, 2020 March 31, 2020 $ 2,300,000

February 20, 2020 March 31, 2020 $ 2,300,000

On February 12, 2020, the Authority’s 2020 Series A Steamship Bonds in the amount of $20,630,000 were awarded to J.P. Morgan Securities LLC. Net proceeds from the issuance total $25,813,670 and include a reoffering premium of $5,183,700. The proceeds from the bond issue are to be used (1) to reconstruct the waterside facilities at the Woods Hole Ferry Terminal; (2) the current refunding of all of the Authority’s outstanding 2009 Series B bonds maturing in year 2021 through 2029 in the aggregate principle amount of $5,660,000 and (3) to pay for costs of issuing the 2020 Series A Bonds.

On May 19, 2020 the Authority received $9,859,884 from the Coronavirus Aid, Relief, and Economic Security (CARES) Act from the Federal Transit Administration. The CARES Act provides economic assistance for workers and families, small businesses, and preserves jobs for American industries.

On May 5, 2020 the Steamship Authority executed a line of credit with Martha’s Vineyard Savings Bank in the amount of $10,000,000 with a 5 year term. The purpose of the Loan is to provide liquidity, as the Authority’s cash flow needs may require, to pay operating expenses incurred in the course of the Authority’s management and operation of the steamship line and other properties under its control.

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REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Required Supplementary Information – Schedule of Changes in Net Pension Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Pension Plan (Unaudited)

December 31, December 31, December 31, December 31, December 31, Reporting Period Ending 2019 2018 2017 2016 2015

Total Pension Liability Service cost $ 1,144,364 $ 1,052,910 $ 967,905 $ 1,081,252 $ 647,483 Interest 2,040,465 1,882,289 1,793,810 1,681,088 1,632,651 Benefit payments (1,310,113) (710,728) (999,967) (370,672) (319,029) Difference between expected and actual experience (692,738) 1,130,001 579,321 (177,602) 354,985 Change in assumptions 1,724,223 - 969,280 (895,895) 2,607,925 Net change in total pension liability 2,906,201 3,354,472 3,310,349 1,318,171 4,924,015 Total Pension Liability, beginning of period 41,060,447 37,705,975 34,395,626 33,077,455 28,153,440 Total Pension Liability, end of period $ 43,966,648 $ 41,060,447 $ 37,705,975 $ 34,395,626 $ 33,077,455

Plan Fiduciary Net Position Employee contributions $ 163,708 $ 179,569 $ 167,784 $ 161,527 $ 157,177 Employer contributions 1,495,724 1,505,097 1,201,056 807,637 789,093 Net investment income 477,170 2,387,900 2,639,818 (1,179,009) 1,245,714 Benefit payments (1,310,113) (710,728) (999,967) (370,672) (319,029) Administration expenses (8,000) - (9,000) - (2,064) Net Change in Plan Fiduciary Net Position 818,489 3,361,838 2,999,691 (580,517) 1,870,891 Plan Fiduciary Net Position, beginning of period 28,092,761 24,730,923 21,731,232 22,311,749 20,440,858 Plan Fiduciary Net Position, end of period $ 28,911,250 $ 28,092,761 $ 24,730,923 $ 21,731,232 $ 22,311,749 Net Pension Liability Net Pension Liability $ 15,055,398 $ 12,967,686 $ 12,975,052 $ 12,664,394 $ 10,765,706

Ratios Fiduciary net position as a percentage of total pension liability 65.76% 68.42% 65.59% 63.18% 67.45% Covered employee payroll $ 5,593,650 $ 6,095,342 $ 5,517,416 $ 5,381,074 $ 5,160,167 Net pension liability as a percentage of covered employee payroll 269.15% 212.75% 235.17% 235.35% 208.63%

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Required Supplementary Information – Schedule of Employer Contributions to the Multiemployer Pension Plans (Unaudited)

New England Marine Engineers New England New England Teamsters and Beneficial Teamsters and Teamsters and Trucking Industry Association Trucking Industry Trucking Industry Pension Fund Pension Fund Pension Fund Pension Fund

Licensed Deck Unlicensed Vessel Maintenance Year Ending Officers Licensed Engineers Employees Employees December 31, 2009 $ - $ - $ - $ 351,984 December 31, 2010 - - - 356,664 December 31, 2011 - - - 340,040 December 31, 2012 - 253,075 - 362,013 December 31, 2013 307,582 315,703 - 366,594 December 31, 2014 699,772 313,260 466,630 358,220 December 31, 2015 707,332 354,697 1,329,894 352,182 December 31, 2016 718,879 382,758 1,343,290 376,028 December 31, 2017 745,496 391,439 1,535,842 395,985 December 31, 2018 781,425 433,482 1,502,055 421,681 December 31, 2019 831,019 457,882 1,625,323 473,074

New England Massachusetts New England New England Teamsters and Service Teamsters and Teamsters and Trucking Industry Employee's Trucking Industry Trucking Industry Pension Fund Pension Fund Pension Fund Pension Fund Parking Lot Agency & Terminal Reservation Clerks & Employees & Bus Year Ending Employees Group Sales Drivers Security Employees December 31, 2009 $ 966,960 $ 37,984 $ - $ - December 31, 2010 1,094,156 37,890 - - December 31, 2011 928,440 32,167 - - December 31, 2012 891,850 31,195 - - December 31, 2013 895,432 29,625 - - December 31, 2014 861,731 26,991 - - December 31, 2015 835,367 31,317 - - December 31, 2016 840,360 32,128 - - December 31, 2017 874,250 28,962 47,856 15,671 December 31, 2018 915,166 25,423 51,661 15,547 December 31, 2019 950,852 25,470 50,933 18,791

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Page 54

Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Required Supplementary Information – Schedule of Net OPEB Liability and Related Ratios of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (Unaudited)

Reporting Period Ending 12/31/2019 12/31/2018

Total OPEB Liability Service cost $ 78,214 $ 74,846

Interest 87,735 94,253 Change in Assumptions

Benefit Payments (136,396) (141,612)

Experience (Gain) and Loss - (207,260)

Net Change in Total OPEB Liability 29,553 (179,773)

Total OPEB Liability, beginning of period 2,328,945 2,508,718

Total OPEB Liability, end of period $ 2,358,498 $ 2,328,945

Covered employee payroll $ 18,626,043 $ 17,996,177

Total OPEB liability as a percentage of covered employee payroll 12.7% 12.9%

Notes: Information provided for Required Supplementary Information will be provided for 10 years as it becomes available

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Schedule of Expenditures of Federal Awards Year Ended December 31, 2019

Pass-Through Federal Entity Federal Grantor/Pass-through CFDA Identifying Federal Grantor/Program Title Number Number Expenditures

Department of Transportation: 20.507 1368 $ 769,638 Pass-through from Cape Cod Regional Transit Authority (CCTRA): Federal Transit Administration

Department of Homeland Security: 97.056 - 683,000 Port Security Grant Program

Total Federal Expenditures $ 1,452,638

Note A: Basis of Presentation

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority) under programs of the federal government for the year ended December 31, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.

Note B: Summary of Significant Accounting Policies

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and available.

Note C: Indirect Cost Rate

The Authority has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

506 August 2020 Port Council Meeting - Treasurer/Comptroller's report

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards

Independent Auditor’s Report

To the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority:

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the Authority), as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated June 30, 2020.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Boston, Massachusetts June 30, 2020

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Report on Compliance for the Major Federal Program and on Internal Control Over Compliance Required By Uniform Guidance

Independent Auditor's Report

To the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority:

Report on Compliance for Major Federal Program We have audited the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority’s (the Authority) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Authority’s major federal program for the year ended December 31, 2019. The Authority’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.

Auditor’s Responsibility Our responsibility is to express an opinion on compliance for the Authority’s major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the Authority’s compliance.

Opinion on the Major Federal Program In our opinion, the Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2019.

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Other Matters The results of our auditing procedures disclosed instances of noncompliance which is required to be reported in accordance with the Uniform Guidance and which is are described in the accompanying schedule of findings and questioned costs as items 2019-002 and 2019-003. Our opinion on the major federal program is not modified with respect to these matters.

The Authority’s response to the noncompliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The Authority’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control Over Compliance Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we did identify a certain deficiency in internal control over compliance, described in the accompanying schedule of findings and questioned costs as item 2019-001 that we consider to be a significant deficiency.

The Authority’s response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The Authority’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Boston, Massachusetts June 30, 2020

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Page 60 Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Schedule of Findings and Questioned Costs Year Ended December 31, 2019

I. Summary of Independent Auditor's Results

Financial Statements

Type of auditor's report issued: Unmodified

Internal control over financial reporting:

. Material weaknesses identified? Yes x No

. Significant deficiencies identified? Yes x None Reported

Noncompliance material to financial statements noted? Yes x No

Federal Awards

Internal control over major programs:

. Material weaknesses identified? Yes x No

. Significant deficiency identified? x Yes None Reported

Type of auditor’s report issued on compliance for major programs: Unmodified

. Any audit findings disclosed that are required to be reported in accordance with the Uniform Guidance? x Yes No

Identification of major programs:

CFDA Number Name of Federal Program 97.056 Port Security Grant Program

Dollar threshold used to distinguish between Type A and type B programs: $ 750,000

Auditee qualified as low-risk auditee? Yes x No

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Schedule of Findings and Questioned Costs Year Ended December 31, 2019

II. Financial Statement Findings

a. Internal Control over Financial Reporting

None

b. Compliance

None

III. Findings and Questioned Costs for Federal Awards

a. Internal Control over Compliance

Grant: Port Security Grant Program CFDA #: 97.056 2019-001: Noncompliance with Equipment Management Requirements

Criteria: Per Title 2 Part 215.34(f) of the Code of Federal Regulations and the Equipment and Real Property Management section of the OMB Compliance Supplement requires the recipient's property management standards for equipment acquired with Federal funds and federally-owned equipment shall:

(1) Ensure equipment records are maintained accurately and shall include (i) a description of the equipment (ii) manufacturer's serial number, model number, or other identification number (iii) source of the equipment, including the award number (iv) whether title vests in the recipient or the Federal Government (v) acquisition date and cost (vi) information from which one can calculate the percentage of Federal participation in the cost of the equipment (vii) location and condition of the equipment and the date the information was reported (viii) unit acquisition cost and (ix) ultimate disposition data, including date of disposal and sales price or the method used to determine current fair market value where a recipient compensates the Federal awarding agency for its share.

(2) Ensure equipment owned by the Federal Government shall be identified to indicate Federal ownership.

(3) Conduct a physical inventory of equipment and the results reconciled with the equipment records at least once every two years.

Condition: No internal controls have been developed to ensure compliance with the equipment management requirements. Accordingly, an inventory of federally funded equipment was not performed as required. Further, the equipment is not identified within capital asset records as being federally funded, and specific details that are required to be maintained in asset records have not been maintained.

Cause: The Authority only periodically receives capital related grants. The overall controls of the Authority are designed to protect the Authority’s assets and to ensure proper financial reporting but have not been designed to ensure compliance with grant requirements.

Effect: The Authority is not in compliance with the Federal regulation. Failure to comply with the grant provisions could impact future federal funding.

Questioned Costs: None.

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Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Schedule of Findings and Questioned Costs Year Ended December 31, 2019

Grant: Port Security Grant Program CFDA #: 97.056 2019-001: Noncompliance with Equipment Management Requirements (Continued)

Repeat Finding: No

Recommendation: We recommend the Authority implement controls to ensure all equipment procured with federal funds are catalogued, ensuring the data fields contains all elements specified by the regulation. In addition, a control should be implemented to ensure that a biennial inventory is conducted.

Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

b. Compliance

Grant: Port Security Grant Program CFDA #: 97.056 2019-002: Noncompliance with Equipment Management Requirements

Refer to Finding 2019-001

2019-003: Untimely Filing of Data Collection Form

Criteria: Per Title 2 of the Code of Federal Regulations Section 200.512, the audit must be completed and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period.

Condition: The data collection form related to the fiscal year ended December 31, 2018 was filed after the required deadline.

Cause: Personnel and system changes contributed to the delays experienced with the completion of the audit and consequently the untimely filing with the Federal Clearinghouse.

Effect: The Authority is not in compliance with the Federal regulation. Failure to comply could impact future grant funding opportunities.

Questioned Costs: None.

Repeat Finding: No.

Recommendation: We recommend the Authority should take steps to ensure the timely completion of the single audit and consequently timely submission of its data collection form to the Federal Clearinghouse.

Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

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Page 63 Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority Summary Schedule of Prior Audit Findings Year Ended December 31, 2019

No findings were noted for the year ended December 31, 2018.

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CORRECTIVE ACTION PLAN YEAR ENDED DECEMBER 31, 2019

2019-001 2019-002: Noncompliance with Equipment Management Requirements

Condition: An inventory of federally funded equipment was not performed as required along with specific details to be maintained as part of the equipment records. In addition, the equipment has not being identified within capital asset records as being federally funded.

Corrective Action Taken or Planned: Staff from the Steamship Authority’s internal audit department will verify the inventory of the federally funded equipment on an annual basis. The equipment will be identified as being federally funded with the Capital asset records.

Anticipated Completion Date: August 15, 2020

2019-003: Untimely Filing of Data Collection Form

Condition: The data collection form related to the fiscal year ended December 31, 2018 was filed after the required deadline.

Corrective Actions Taken or Planned: The late filing for the data collection for the fiscal year ended December 31, 2018 was due to the combination of then Treasurer/Comptroller Gerard Murphy resignation effective December 31, 2018, which resulted in the General Manager Robert B. Davis assuming the additional responsibilities of the Treasurer/Comptroller position. In addition to this, the Steamship Authority transitioned from their legacy accounting system to a new Microsoft Dynamics accounting system in the 2nd quarter of 2019. The Treasurer/Comptroller position has been filled by Mark Rozum on July 1, 2019 and the Authority has fully transitioned to the new accounting system. As a result, the data collection form related to the fiscal year ended December 31, 2019 will be submitted prior to the required deadline.

Anticipated Completion Date: July 30, 2020

Responsible Party for Corrective Actions:

Name: Mark Rozum Position: Treasurer Email: [email protected]

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