HMS Ferries, Inc. Request for Information. HMC Management Herron Island Homeowners Association. Passenger Ferry Service Herron Island, WA

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HMS Ferries, Inc. Herron Island Homeowners Association Passenger Ferry Service Herron Island, WA

Mr. Mike Graham HMC Board President P.O. Box 119 Lakeybay, WA 98349 Dear Mr. Graham: HMS Ferries, Inc. is a world class vessel management company, that is interested in competing for a contract to operate the Herron Island Ferry. In response to your request for information, the following is provided: 1. Company Background HMS Ferries, Inc. (HMS) is a world leader in passenger vessel operations and has a rich history as a high-quality vessel operator in locations throughout the United States and North America. Our reputation as a collaborator and our success in providing transportation equity and access to waterfront communities is unmatched. HMS provides an exceptional customer service experience and achieves the objectives of a safe and reliable system that you are seeking for the Herron Island ferry service. Last year HMS provided over 2 million guests a memorable experience aboard the many ferry vessels it operates. HMS s goal is to support the mission and goals of HMC. We consider ourselves full partners, sharing the same vision as HMC in the development of this exciting opportunity. Our experience in maritime hospitality, high quality vessel operations, and our strong safety record will best serve the Herron Island community. Our corporate strengths lie in our Core Values, which includes a commitment to Innovation. We have introduced leading-edge technologies and concepts to the ferry industry throughout our history, including extensive crew training programs, maximizing operational efficiencies and effective marketing. Our successful technological advances include extensive electronic Management systems, electronic Operational Situation and Incident reporting, on-line training modules, a Customer Service Program, and HMS is the only domestic passenger vessel company to have received an American Bureau of Shipping certification for its Safety Management System. These strengths combine to create an organization that is responsive to our partners, financially stable and constantly seeking improvement. Adhering to these standards requires daily, weekly and monthly inspections, as well as annual auditing, which provides the company with a support tool for checking operating standards and looking for opportunities for improvement.

The HMS Training and Qualification program begins on the employee s first day, and includes a specific focus on maintaining a safe environment for our employees and our guests, while providing first-class customer service. A key advantage to partnering with HMS is our expert skills to assist our partners and help them achieve their goals. Our programs will be structured around supporting the community and our guests. We place special focus upon environmental and marine transportation matters, including working with our partners to adopt green technology and harbor ecology. For example, in Alabama we are working with the Department of Alabama Transportation to convert a conventional powered car and passenger ferry to an all-battery powered ferry, which will make it the first all battery powered ferry of this magnitude in the United States. 2. Technical Expertise The key to providing safe, reliable and efficient passenger vessel service begins with strong training and maintenance system. HMS employs HELM Connect Maintenance Software to manage vessel maintenance and related inventories for its entire fleet. The HELM Connect Maintenance system is a web based solution that helps our engineering team manage the maintenance, inspection and repair of systems and equipment to enhance the reliability, safety, and performance of individual vessels and fleets. It provides both the framework and the data content to ensure all of the maintenance and inspection recommendations of the vessel builder, equipment manufacturers, and regulatory agencies are cataloged and performed at preestablished intervals. Vessel systems and equipment that are maintained in accordance with manufacturer s recommendations are less likely to have major equipment failure or vessel damage/loss caused by insufficient/incorrect maintenance, corrosion, chafe, unusual wear, vibration, and other anomalies. In addition, our Fleet Technical Division, which is comprised of highly experienced and licensed Naval Engineers with over 100 years of combined Naval Engineering expertise, provides technical oversight and expertise of the entire maintenance system. The Fleet Technical Division also supports all major maintenance and repair work. 3. Regulatory HMS Ferries plays a leadership role in several maritime industry organizations, such as the Passenger Vessel Association, the Ship Operations Cooperative Program, U.S. Coast Guard Area Maritime Security Committees, Harbor Safety Committees, and State Maritime Federations. In addition, HMS Ferries employs several retired senior Coast Guard officers who are recognized Maritime Safety and Security experts.

4. Experience No other passenger ferry operator in the U.S. comes near HMS level and range of operational experience, technical knowledge, regulatory compliance, can-do spirit and commitment to excellence. HMS has been responsible for twenty-three (23) ferry project start-ups and ferry service operations - both domestically and internationally. Project sites have ranged throughout the U.S., as well as Japan, Trinidad, the Bahamas, and Canada. In 2016 HMS Ferries safely carried over two-million guests. HMS currently provides a wide range of vessel management services as follows: Active Clients Ferries Type Capacity Client Since City of Jacksonville 1 Pax and Vehicle 204 Pax / 38 1997 Pierce County Ferry 2 Pax and Vehicle 288 Pax / 56 2002 215 Pax / 56 Alabama DOT 2 Pax and Vehicle 1 / 28 2005 1 / 18 Alabama DOT 1 Pax and Vehicle 1 / 15 2007 Central Oklahoma Transportation and Parking Authority (OK) 3 Pax-Only 2009 Military Sealift Command Trust for Governors Island, NY Rock Island Metropolitan Mass Transit District Delaware River Development Corporation 2 High-Speed Pax/Vehicle 2 Pax and Vehicle Pax-Only 900 Pax / 260 900 Pax / 260 1,242 Pax / 38 73 Pax 3 Pax-Only 4 Pax-Only 517 Pax 22 Pax 22 Pax 22 Pax 2010 2012 2015 2015 City of St. Petersburg 1 Pax Only 1 2016

5. Approach to Partnering with Clients HMS provides each client with the world-class vessel management service they deserve. As a part of our client s team, HMS provides turn-key vessel management through a vast array of Operations and Management Systems that include time-tested processes, procedures, systems, and operating manuals. Our Operations and Management System includes: A Safety Management System A Safety Cadre Vessel Emergency Procedures An Operations Plan An Electronic Incident Reporting System An Electronic Situation Reporting System A Service Excellence Cadre A Training and Qualification System A standardized training portfolio A Training Database An Employee Human Resources Handbook A Drug and Alcohol Program A New Hire Orientation Program A Client Monthly Operations Report A monthly Financial Report An electronic Engineering Maintenance and Reporting System Risk Management Review of accidents to identify trends and root cause analysis Weekly General Manager Meetings with HMS Ferries Bi-Weekly General Manager Meetings with Fleet Technical Services 6. How we Handle 24/7 Vessel Operations HMS provides 24/7 operational support from a team of operational experts that combine for over 200- years of maritime experience HMS has a long history of providing a mix of commuter and tourist passenger vessel service, to a wide array of clients and partners. We have a proven ability to meet surge in passenger demand during peak seasons. For example, the car/passenger ferry service that we operate for Pierce County, WA experiences a nearly 100% increase in ridership during the peak summer months. In response, HMS prepares all year for the known increase in ridership, to include planning and conducting major vessel maintenance during the non-peak season, hiring and training additional crew and guest service personnel, and bringing into service a second vessel. This formula has proven successful for our Pierce County operation for over 10 years.

In addition to preparing for historically high demand periods, HMS also plans for known special events, such as the Fourth of July, holiday weekends, concerts, etc. that bring additional guests to the area. By working in conjunction with local community organizers and event coordinators, HMS will be able to promote and package special event operations, to include flexible scheduling around these events. Being able to accommodate the schedule to account for the timing of the known special event has historically proven to fill our vessels to capacity. 7. Ticketing: The entire HMS team is uniquely qualified in matters related to safety, security and efficiency. Specifically, our training and experience in ticketing, reservations, access controls, PCI compliance and security processing is unmatched. HMS is capable of providing a full-function Reservation and Ticketing systems that allows for reservation of seats on specific sailings through one of the following: Online Ticket Portal Mobile Application Ticket Point of sale (terminal) transactions Stand-alone Kiosk sales Not only does the system allow to reserve and purchase online and Mobile Application, but it also allows the guest to purchase Group Reservations directly on-line. In addition, we will have a Customer Service Representative Phone line for helping all guests, including those interested in Group Sales, to reserve their onboard experience. This system will be similar to the Reservation and Ticketing System currently in use at Pierce County Ferry, Cross-Bay Ferry, and Channel Cat service in Moline, IL and has a proven track record of being extremely effective. HMS will manage and maintain the system to include server hosting, routine back-ups, maintenance and software updates. The system produces all routine reports and accommodates numerous fare classes and dynamic fares, and is fully integrated with web site. 8. Initial Thoughts HMS is happy to enter discussions with HMC on how we can provide vessel management service for the Herron Island ferry and improve the overall experience for your customers. For example, the Herron Island ferry may be a prime candidate for conversion from conventional power to allbattery power, which would save the service long-term operating and maintenance costs. We are in the process of working with the State of Alabama Department of Transportation in converting one of their ferries to all-battery through a mix of federal and state grant funds.

In addition to providing an outstanding service, HMS brings an insurance capability of over one billion dollars in coverage for liability and pollution. It is unlikely that HMC is providing the proper level of coverage for the service it provides and may be putting the island community at risk. Given the ability to tap into its fleet insurance, HMS typically provides the proper level of coverage at nearly the same rate our clients historically were paying for inadequate coverage. 9. Why HMS HMS is simply the best vessel management company in the world, and is recognized as such throughout the maritime industry. We provide each of our clients with the same high standard of service and ensure we exceed their expectations. We look forward to hearing from you. If you have any questions please do not hesitate to contact me. Regards Matthew Miller Vice President, HMS Ferries, Inc. 385 Ericksen Ave, NE Suite 123 Bainbridge Island, WA 98110 206.455.0046 mmiller@hmsgm.com