Salem Harbor Port Authority

MEETING MINUTES: May 16, 2024 A public meeting of the Salem Harbor Port Authority was convened at 5:00 pm via Zoom web conference. Members present: Kathy Winn (Chair), Mayor Pangallo, Fred Atkins, City Councilor Cindy Jerzylo, and Captain Fred Ryan Others Present: Capt. Bill McHugh – Harbormaster, Daniel Collins – Planning Department Call to Order Ms. Winn called the meeting to order at 5:00pm. Captain McHugh outlined the format for the meeting, indicating that members of the public may provide comments during the period of the meeting designated for public comment. Port Updates James Dumont and John Berry, from Crowley, were present to provide an update. Mr. Dumont reported on the grants that have been sought for the project. A Port Infrastructure Development Program grant was just submitted last week requesting additional funding. He reported on the Clean Ports Program, which is funded by the EPA through the Inflation Reduction Act. It can fund port projects that support zero emission. Crowley can be the lead applicant with a government entity as a co-sponsor, in this case the City of Salem. Mr. Dumont hopes that this application will be of unique interest because it would support decarbonization for multiple aspects of projects across Crowley’s portfolio in the United States; wind, fuel, logistics, etc. This grant would target $6M for Salem to help fund the zero emission projects at the terminal. As lead sponsor, Crowley will take on the administrative role and liability will fall on Crowley. Crowley is hoping to create an MOU that outlines this. Crowley has engaged a grant manager to assist them. Mayor Pangallo noted that this is an exciting opportunity to move the project forward. He asked if Mr. Dumont could talk more about the equipment that would be targeted for Salem. Mr. Dumont noted boom lifts, telescoping, forklifts, wheel loader, skid steer loader, and a shuttle van – all of which be electric powered. Crowley is also looking at an electrification plan. SPMT’s are expected to be on site, but haven’t gone electric. Ten charging stations are also included. The Department of Energy might also have some funding for SPMT. Captain Ryan inquired as to whether specialized counsel could be secured to ensure the City is protected. Mr. Dumont will provide contact information to Mr. Collins to this respect. Grant announcements are expected August/September 2024. Crowley is trying to avoid any cost implications to the City. Crowley would like to fund one or two personnel to provide support on this effort. Captain McHugh noted that the City has to determine quickly what kind of indemnification they have on this effort. Mr. Dumont reported that they are looking to create a strong MOU to help identify any issues to put the liability on Crowley. Captain McHugh believes the Port Authority should have an outside counsel review the necessary documents. He reported that there will be soft costs funding requests such as planning. He believes Salem is being placed in a good position through this project and grant. He believes the EPA funds will look favorably because it’s a diverse request, across multiple jurisdictions and would reduce EPA’s administrative burden by not having to award multiple grants. The required match is 20%, and Crowley is hoping to come in at 20-30% with planning costs, which would be covered by Crowley. Any equipment purchased with the funds would remain with Crowley. Captain Ryan made a motion, with a second by Mayor Pangallo, to conditionally accept the grant responsibility with Crowley based on a review by an independent legal team to ensure the City is covered, and it passed unanimously. Bob Lawlor and Jeanne Sullivan, from BHCC, were present to provide an update on the operations and marketing for the ferry. The Bowditch is a 29-year-old vessel. It has undergone a main engine overhaul, new marine reduction gear, reconditioned propellers, upper and lower hulls painted, new life rafts, new charter plotter, and new pilot house HVAC. Total ridership in 2023 season was 68,776 with October alone having 26,985. Pre-COVID annual ridership averaged in the low 60,000s. BHCC added trips and substituted a larger boat for more coverage during Haunted Happenings. Rates for 2024 will be: Commuter: Adult $16, Senior $8, Child $8 – available Monday through Friday (rush hour only) Salem Resident Rates: Adult $19, Senior $15, Child $11 Greater Salem Resident Rates: Adult $31, Senior $26, Child $19 (Beverly, Danvers, Lynn, Marblehead, Peabody, Swampscott) The schedule will not change from the 2023 schedule. They are looking to improve the passenger alert notifications to receive alerts for cancellations, schedule changes, events, specials, etc. Ridership has increased primarily due to increases during the month of October. They are looking to do a push notification, but they rely on passengers to provide the information so they can put it in their system. Working with a third-party for some passes has made it challenging. Ms. Sullivan presented information on their direct marketing and advertising overview. She reported that they do have a comprehensive marketing plan in place that includes offline media, and targeted digital PPC and paid social media campaigns. The marketing plan covers the entire Boston DMA geography from southern New Hampshire to Worcester to Cape Cod and the Islands. Sales staff and online efforts extend the reach to national and international audiences. BHCC works to drive people to the website, and the Salem Ferry is featured on the homepage for day trips, etc. There will be a heavy push over the summer – radio, television, digital billboards, street panels, QR codes, print, Google AdWords, influencers, ticket booths, etc. Salem has a dedicated website page on cityexperiences.com which assists with national reach, easy bookings. Ms. Sullivan has a been a member of Destination Salem since 2013 and actively participates in committee meetings. BHCC hosts transportation to Destination Salem’s Tourism Day, and includes the ferry in it’s direct mail and resident campaign. There is also cross-marketing on board all their 40 vehicles. BHCC also hosted a float in the 2023 Haunted Happenings parade and plan to do so again in 2024. BHCC participates in a concierge program with hotels, and it has been successful. They are also working with a PR agency, Luca PR, which has been having a successful public relations media campaign. On May 22, BHCC will host with the Salem Chamber of Commerce, a Welcome Back Ferry 2024 event from 5-7pm. The Landing will be open for the event. BHCC has been working to host more events at The Landing such as music nights and charity events. The Landing will be open Thursday through Sunday, noon through 11pm. They are hoping to work with a local establishment to provide more offerings. Mayor Pangallo is hoping to have an employee appreciation day on the ferry this summer. They currently do not advertise on the MBTA, which may be an opportunity given the current sentiments of MTBA riders and commuters driving into Boston. Port Legislation Update Captain McHugh reported that they met 1 ½ weeks ago with Senator Lovely and Representative Cruz on the home rule petition that the Authority would submit to bring more control of the SPA jurisdiction and contemplate and set safe navigational requirements. Harbormaster Report Captain McHugh reported that there has been an active season so far. He believes they have identified an OPM for the ferry terminal building, which was required. It is now on an aggressive timeline with an RFP going out soon. He expects there will be a ceremonial groundbreaking with the Crowley in June. New Business Councilor Jerzylo reported that she’s had constituents in the area of Blaney Street reach out to her concerning a lack of public parking. She inquired whether those residents could receive visitor passes for the ferry parking lot. Captain McHugh noted that this request has been made before, and that the Port Authority is not able to assist. Public Comment There were no public comments. Approval of Minutes Fred Ryan made a motion, seconded by Councilor Jerzylo, to approve the April 4, 2024 Salem Port Authority meeting minutes. The motion passed unanimously. Mayor Pangallo was absent. Adjournment Salem Harbor Port Authority adjourned at 6:20pm.