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confidenceconfidenceconfidence PASSENGER VESSEL ASSOCIATION tel 1 800 807-8360 fax 703 518-5151 APRIL 2016 FOGHORN 3 Volume 15 Number 03 APRIL 2016 FOGHORN USPS Number 023-702 is published monthly except combined JanuaryFebruary by Philips Publishing LLC 2201 West Commodore Way Seattle WA 98199. Periodicals postage paid at Seattle WA and at additional mailing offices. POSTMASTER Send address changes to FOGHORN co Passenger Vessel Association 103 Oronoco Street Suite 200 Alexandria VA 22314. Copyright 2016 by the Passenger Vessel Association. All rights reserved. No part of this publication may be reproduced without the written consent of the Passenger Vessel Association. PRINTED WITH SOY INK FOGHORN Focus FOGHORN is a monthly publication of the Passenger Vessel Association. Copyright 2016. All rights reserved. President Margo Marks Beaver Island Boat Company Charlevoix MI Vice President Jeff Whitaker Hudson River Cruises Inc. Kingston NY SecretaryTreasurer Gus Gaspardo Padelford Packet Boat Co. Saint Paul MN Board Members Bob Bijur Island Queen Cruises Miami FL Chip Collopy Shoreline Marine Company Chicago IL Richard Davison Star of Honolulu Cruises and Events Honolulu HI Jim DeSimone Staten Island Ferry Staten Island NY Bob Lawler Entertainment Cruises Boston MA Alison Nolan Boston Harbor Cruises Boston MA Bob Scribner Charleston Harbor ToursSchooner Pride Charleston SC Colleen Stephens Stan Stephens Glacier and Wildlife Cruises Valdez AK Jim Swindler Golden Gate Bridge Highway and Transportation District San Francisco CA Associate Member Representative Carl J. Micu John Deere Power Systems Waterloo IA Past Presidents Dave Anderson Fire Island Ferries Bay Shore NY Terri Bernstein B.B. Riverboats Newport KY Carolyn Horgan Blue and Gold Fleet San Francisco CA Executive Director John R. Groundwater Legislative Director Edmund Welch Regulatory Affairs Consultant Peter Lauridsen Director of Finance Leslie Kagarise Director Public Affairs and Development Jennifer Wilk Director of Regulatory Affairs and Risk Management Eric Christensen General Counsel Steven Bers Whiteford Taylor and Preston Editorial Offices Managing Editor Karen Rainbolt 2771 Houston Dr. Los Osos CA 93402 tel 571 388-7752 Contributing Editor Richard Purinton Washington Island Ferry Line Washington Island WI Advertising and Business Offices Publisher Peter Philips Advertising Sales Bill Forslund bill 2201 West Commodore Way Seattle WA 98199 tel 206 284-8285 fax 206 284-0391 Human Resources About the Cover Spirit of Washington operated by Entertainment Cruises was the site of the PVA Presidents Closing Dinner and Awards Ceremony for the PVA Annual Convention at MariTrends 2016 on January 26. Story on Entertainment Cruises page 29. Columns 4 Presidents Letter 5 Executive Directors Letter 15 Regulatory Report 18 Legislative Report 20 Legal 22 Safety Matters 26 How PVA Benefits You 28 Member News 29 Newswire 30 PVA Calendar 30 Advertisers Index 6 Training TodayThe Benefits of Emergency Cross Training Richard Paine Jr. explains why cross training all employees benefits the entire organization. 10 The Marijuana Challenge Potential Conflicts Between State and Federal Law Lee Seham and Mark Meeker examine the potentially conflicting laws regarding marijuana and how they impact vessel operators. 13 Building the Farm Team Bob Shaw makes the case for building your optimal team from the ground up. 20 Personal Liability for WageHour Compliance Steve Bers delves into the complex issue of complying with the Department of Labors wage versus salary laws and what it all means for vessel operations. 4 APRIL 2016 FOGHORN Human Resources Department Check While completing a recent insurance renewal application one of the questions asked of our company made me pause. Does the Applicant have a Human Resources or Personnel Department Being a small business my initial response was no. However after further reflection I checked the yes box. As a small business in the ferry transportation industry we operators wear many hats. Most of our op- erations do not draw lines between departments. Our company for the most part consists of three depart- ments The dock the boat and the office departments. Within these areas or depart- ments we accomplish many tasks. We operate without a great deal of compart- mentalization which means we must all strive to become experts in many areas which is close to impossible or reach out to other experts outside of our business for support and advice. I have found great value in networking with other ferry boat operators I have met at PVA meetings. Recently I had discussions comparing wage benefits and other infor- mation with multiple managers with operations very similar to ours. I am constantly amazed at how alike our concerns are. It is vital we stick together and share our successes and our lessons learned with our industry peers. We are fortunate to have the technology resources we have today. How different it was even 20 years ago without todays Internet resulting in the availability of high-speed information. Thankfully there are many webinars online classes and various associations out there to help us. These modes of education and training provide our management and employees many devel- opment opportunities. On the downside of technology is the inability to remove ourselves from it. Some call this the big blur of being online all the time logged into technol- ogy. There is a blur between work and home. No gen- eration has ever been this connected indeed it can argued that some employees are never disconnected from work. Besides the distraction factor this brings to mind the concern of the work-life balance and wage and hour laws. New to the Human Resource challenge is a three- generational difference between the Millennials Gen X and their Baby Boomer parents. Employers are dealing with helping three generations of workers cohesively work as a team to serve their customers. With the economic downturn the situation has become worse with so many Baby Boomers unable to retire and now being supervised by Gen X employees and Millennials. Managing this new generation alongside the older genera- tion is a skill employers need to develop. This decade has seen the rise of technology-based training employee development pod casts telese- minars online learning screen capture and recording software to name a few. These advances in technology allow our employees to learn and be trained without traveling long distances. In remote locations such as Beaver Island where many of our employees live 32 miles out in the middle of Lake Michigan this saves our company a great deal in travel expenses. Our ferry operation has been fortunate to have long-term employees with a great deal of knowledge developed over their tenures. We are working at mentoring young employees to fill future positions. We must prepare the next generation of employees for the future and develop these young talented employees strengths and abilities to contrib- ute. Our managers wear many hats. Together with the support of outside resources we stay in compliance adapt to new regulations and laws hire and train employees maintain our vessels and the ferry keeps running. So does our company have a Human Resource Department I like to think of our company as a team of humans with resources. So yes I guess we do. Very respectfullyVery respectfully Margo Marks President n LETTER FROM THE PRESIDENT Margo Marks New to the Human Resource challenge is a three-generational difference between the Millennials Gen X and their Baby Boomer parents. APRIL 2016 FOGHORN 5 LETTER FROM THE EXECUTIVE DIRECTOR John Groundwater An Active Season Unfolds As you know PVA manages a variety of governmental issues of importance to your business. Not surprisingly many of these issues track across several years before they are resolved in the best interest of PVA members and the passenger vessel industry at-large. As a result it is imperative that PVA stay engaged over the long term to ensure continuity and success. PVAs recent victory on the one-size-fits-all Out-of- Water Survival Craft issue is a great example of this and is typical of the required investment of time energy and expertise over many years to effectively manage issues affecting the industry. In reality the Survival Craft issue took more than six years of focused attention by PVA vol- unteers and staff before it was finally and successfully resolved. The following chronicles some of the major mile- stones that were achieved. Evolution of PVAs Work on the One-size-fits-all Out-of-Water Survival Craft Issue 2010 Congress passed Coast Guard Authorization Act that required all impacted vessels to replace life floats with Inflatable Buoyant Apparatus IBAs. 2012 PVAand others convinced Congress to push back the enforcement date of the above law by 30 months. 2013 PVAurged Congress to require Coast Guard to study the efficacy of the change. 2013 The subsequent Coast Guard report came out against one-size-fits-all approach of requiring IBAs. 2015 PVA successfully persuaded Congress to repeal the previous one-size-fits-all Out-of-Water Survival Craft by passing the Coast Guard Authorization Act of 2015 with the superseding language. 2016 President signs the Coast Guard Authorization Act of 2015 into law. While the above scenario seems incredible in terms of the time and steps involved it is nonetheless fairly typical of how our representative system of government in Washington D.C. works. The legislative process is of- tentimes unhurried and methodical shifting with public opinion and reacting ever so slowly to the priorities of our government representatives and the nation as a whole. Because of this it is critically important to have an orga- nization such as PVA constantly involved in represent- ing your interests. And that is why your continuing PVA membership is so important to our ongoing success. While your membership support is a critical component to sustaining our continued strength as an organization your involvement as a volunteer is just as important. PVA Congressional Fly-InApril 26 2016 An extremely easy and enjoyable way to volunteer and to get involved in furthering the understanding about the passenger vessel industry in Congress is to take part in PVAs Congressional Fly-In scheduled April 26 in Washington D.C. This annual association activity is extremely popular and involves PVA members from every corner of our country. During the course of the Fly-In PVAattendees will meet with members and staff of the U.S. Senate and House of Representatives on Capitol Hill to discuss the passenger vessel industry and the issues of significance to it. PVA members who have participated in the past have come away with not only a new appre- ciation for the operation of our government but they also have felt that they have made a real contribution to PVAs legislative goals and to the industry. There is real value in this event and I heartily encourage you to participate. Please know that you dont have to an expert on the issues you just have to take the first step by joining us. I assure you that you will be glad that you did. Join A PVA Committee A great deal of the successful work of PVA occurs though its committee structure. These are the places in which many decisions are made about PVA positions and where new ideas and projects are born. If you think that you have to be a content expert or that taking part in a committee will take a great deal of time think again. Committee meetings are very often scheduled in con- junction with another PVA meeting or at PVAs annual convention making it easy for you to get involved. It will be easy for you to get up-to-speed on the current issues and programs but it is your input and your opinion as a passenger vessel operator that matter most in this process. If you would like to get involved I encourage you to contact me directly and I will help you identify a committee that is right for you. In the meantime please let me know whenever we can be of assistance to you. Sincerely John R. Groundwater Executive Director n 6 APRIL 2016 FOGHORN FOGHORNFOCUS HUMAN RESOURCES O wners and operators of passenger vessels are quite familiar with the time and expense necessary to train their crew to meet the many safety regulations and require- ments of todays maritime industry. However sometimes an owner or operator can develop tunnel vision and forget those employees who are not hired to perform vessel duties outside of the Captain Mate and other vessel crew. The problem with focusing on one safety training goal person or department is that owners and operators limit themselves by not developing a training program that broadens the scope of training to staff across the operation. Since the typical crew includes many diverse employees in a multitude of different roles nearly all wearing different hats cross training will benefit the safety of the vessel her passengers and crew. It may also save you money on your cost of personnel casualty losses and insurance for the operation as a whole. Recently I was introduced to a United States Coast Guard USCG inspector while attending a local Coast Guard small passenger vessel industry day aboard Hornblower Infinity. The inspector went out of her way to inform me on how impressed she was with the results of a recent inspection aboard the Statue Cruises fleet. The inspector pointed out that prior to conducting a fire drill she tested a conces- sion stand staff employee on how to handle different types of fire and emergency scenarios on board. The employee provided details not only of the correct duties assigned to him on the Station Bill but other crewmembers firefight- ing and emergency duties as well. She commended the team at Statue Cruises for including staff training that in her eyes went above and beyond normal industry emergency response training. Obviously as owners and operators we love hearing positive feedback from the Coast Guard but there are greater underlying benefits to training staff across different depart- ments that can be valuable to us all. Such benefits include emergency response effectiveness promotional opportuni- ties and cost savings. Emergency Response Effectiveness During an emergency onboard a vessel crew are typically trained to meet the safety expectations of their position described on the Emergency Station Bill. However what happens if key members of the response team are the victims or restricted in their availability to respond Who fills the role of the nozzle man on a fire hose or lowers the rescue boat if those crewmembers arent there Training Today The Benefits of Emergency Cross Training By Richard J. Paine Jr. Statue Cruises The key is cross training. As we are all well too familiar the sea can be unforgiv- ing and mariners for centuries have been notorious for formulating contingency plans. Nevertheless those contin- gency plans are only as strong as the preparation taken and maritime safety training should be no different. The training development of employees such as the kitchengalley wait staff and onboard hospitality department are perfect can- didates to receive additional safety training on emergency response duties. It is important to keep in mind that cross training shouldnt end solely with those employees working onboard the vessel. Shoreside personnel including sales and ticket personnel can also benefit from basic emergency response and safety training. Emergency sound signals alert the crew of emergency situations onboard but there is value for alerting those not onboard the vessel as well. A shoreside team trained to recognize dangers associated with the vessel and its operations can incorporate a commonsense safety response into their job functions. Cross training prepares them for such a response. A few short or long blasts on the ships whistle can initiate potential responses of the shoreside staff that can include simply notifying a supervisor or tempo- rarily slowing down a ticket line. Such simple actions can be critical to providing a timely response to an emergency and as importantly helping to maintain control of the situation. Advancement Opportunities Successful owners and operators realize the importance of keeping their employees especially those employees that are hardworking good employees. In most cases those hard- working good employees are interested in furthering their knowledge and thus their careers. It is not an uncommon story in this industry to hear of a Captain who started with THE SCANIA MARINE SOLUTION. Out there confidence in performance reliability and operating economy are the only things that count. With this in mind we created the Scania marine solution An array of flexible products paired with guidance and installation support from Scania. Whatever your specification we will provide you with the optimal Scania marine solution. Power at work every inch of the way. POWER AT WORKEngines for propulsionEngines for auxiliary applications Tailored transmissionsType-approved instrumentation Complete and Committed. 8 APRIL 2016 FOGHORN FOGHORNFOCUS HUMAN RESOURCES About the Author Richard J. Paine Jr. is a licensed mariner with 20 years of maritime experience ranging from deep sea tugs and towing and passenger vessels. He has been in shoreside management for over ten years and is currently the Associate Director of Safety Training Environment Affairs at Statue Cruises a Hornblower company. Rich can be reached at Feb 1 2012 Run as is a company as employee tending the bar or waiting tables. Each story may be a bit different but holds a similar narrative. It nearly always includes an individual in ownership or manage- ment who saw something special in that employee and that drive or eagerness to learn more about the vessel was the key to that employee standing out. It can be easy to overlook the potential of an employee from a non- vessel department especially in larger operations but providing additional emergency training is the first step to finding that diamond in the rough. Cost Savings The potential financial benefits of implementing a crossover department training plan can be seen throughout an operation. Such areas include 1 Recruitment The need to recruit and train new hires will be reduced. The time necessary to post job vacancies interview and train new hires will be minimized due the promotion potential of candidates already within the or- ganization. A natural order to career advancement onboard the vessel will develop purely by providing greater vessel emergency training to additional employees. 2 Insurance Owners and operators will have stronger safety records that will provide greater negotiating terms for their insurance quotes and policies. Insurance premiums may be lowered due to a reduction in incidents or less severe incidents. Insurance underwrit- ers are always interested in hearing of successful training programs that will support the insured. 3 General risk An emergency of any kind has the power to potentially cripple an owner or operator.Afire that is not contained in the galley can spread throughout the vessel and can cost the owner thousands in repairs or even a total loss. Overall the best management practices both onboard and onshore include a strong and successful cross training plan to anticipate and respond to real and potential emer- gencies. Conducting personnel and department-wide crossover emergency training offers owners and operators the framework to build a well-trained capable staff and provide a safer more enjoyable experience for your passen- gers. n 10 APRIL 2016 FOGHORN FOGHORNFOCUS HUMAN RESOURCES C alifornia became the first state to legalize marijuana for medical uses in 1996 but since then many other states have legalized some form of marijuana use. Currently medical marijuana is legal in 23 states and the District of Columbia plus four of those states and D.C. also have legalized its recreational use for those age 21 and over. The liberalization of state marijuana laws appears likely to continue with as many as 19 states considering marijuana-related ballot initiatives in the coming year. Factors contributing to this movement include a growing acceptance of the medical benefits of marijuana a desire to reduce incarceration rates and a belief that marijuana use is a victimless crime. Beyond societys changing attitudes state governments have an economic motive for welcoming legalized marijuana just as several have welcomed legalized gambling. In Colorado where both medical and recreational marijuana use is now legal taxes on marijuana expanded the state coffers by approximately 70 million during fiscal year 2014-15 exceeding even alcohol tax revenues. The state of Washington collected 67.5 million in taxes during its first year with both recreational and medical marijuana sales. But regardless of the trend towards commercialized marijuana at the state level it is still illegal under federal law. The Controlled Substances Act CSA lists marijuana as a Schedule 1 drug meaning its use is unlawful throughout the United States with or without a medical prescription an act of Congress would be required to change that. While the Department of Justice DOJ has elected to refrain from aggressive enforce- The Marijuana Challenge Potential Conflicts Between State and Federal Law By Lee Seham Esq. and Mark Meeker Esq. American Maritime Safety Inc. Alaska Hawaii States with Medical Marijuana Medical ment with respect to small scale intra- state production and consumption this restraint merely constitutes an exercise of prosecutorial discretion rather than a change in federal law.According to the DOJ neither state nor local law provides a legal defense to a violation of federal law including a civil or criminal violation of the CSA. Recently this clash between state and federal marijuana laws played out in a Colorado case involving Brandon Coats a quadriplegic a medical marijuana prescription holder and formerly a customer service representa- tive for Dish Network. Mr. Coats used medical marijuana during his off-hours to treat muscle spasms. But Dish main- tained a zero-tolerance drug policy so in 2010 when a random drug test came back positive for marijuana he was terminated. At trial Mr. Coats argued Alaska Hawaii Adding Possible 2016 Ballot States Medical Medical recreational Medical voting on recreational Medical andor recreational legalization proposed APRIL 2016 FOGHORN 11 FOGHORNFOCUS HUMAN RESOURCES Navigating your risks day and night. As the owner of a passenger vessel you face tough decisions every day from hiring qualied crew to making sure your vessel is in prime condition. At Aon we spend day and night thinking about your maritime risks so buying insurance doesnt have to be another tough decision. We work with you to develop creative approaches and customized solutions that deliver more efficiencies improved protability and greater value. For more information please call 1.800.730.7053 or visit passengervessel.commember-resources.htmlinsurance Risk. Reinsurance. Human Resources. Navigating your Aon Risk Solutions Marine that he was protected by Colorados lawful activities statute because his marijuana use is permitted under state law and he only consumed it outside of work. Ultimately however the states Supreme Court sided with Dish finding that a lawful activity must be lawful under both state and federal law and the federal government considers marijuana illegal. T h e U . S . D e p a r t m e n t o f Transportation DOT also maintains that Schedule 1 drugs including marijuana are not authorized for any reason. As such Medical Review Officers MROs will not verify a drug test as negative based on learning that either a physician recommended that the employee use medical marijuana or that the employee used recreational marijuana. The rationale for the DOTs drug testing program can be traced back to marijuana-related accidents such as the ConrailAmtrak accident on January 4 1987 that resulted in 16 fatalities and 174 injuries. There the National Transportation Safety Board determined that the probable cause of the accident was the engineers failure to stop his train as a result of being impaired by marijuana. The impact on transportation safety in the wake of this state-by-state le- galization of marijuana is a matter that deserves close scrutiny. As with alcohol marijuana consumption slows reaction time impairs judgment of time and distance and decreases co- ordination. After alcohol marijuana is the drug most often linked to driving under the influence. Recent findings include the 2013 Governors Highway Safety Association report that showed drugs were found in almost 40 of fatally injured drivers tested which was comparable to alcohol. Early reports from Colorado indicate that marijuana-related traffic deaths are up 32 percent. Previously marijuana factored into 10 of all traffic deaths but that has now jumped to 20 percent. Meanwhile marijuana- related hospitalizations have increased 38 percent. Within the maritime industry the percentage of random drug tests that yielded a positive result increased slightly from 2013 to 2014 rising from 0.62 percent to 0.64. If that indus- try-wide percentage should reach or exceed 1 the U.S. Coast Guard could raise the annual random testing re- quirement from the current 25 back up to 50. It is noteworthy that during that same timeframe 2013 to 2014 marijuana was responsible for a sig- nificantly higher percentage of those positive tests up from 63 to 73. Mariners should be wary of the potentially career-ending impact of marijuana use. Unlike alcohol which metabolizes within hours the active ingredient in marijuana THC can remain in the bodys fatty tissues at de- tectable levels for days or even weeks. An individuals level of usage can impact the amount of time that THC remains detectable moderate use can yield positive test results for three to five days afterward heavy use daily 12 APRIL 2016 FOGHORN FOGHORNFOCUS HUMAN RESOURCES 100 Furuno designed Linux software improves stability reduces virus risk Fully compliant IMO systems 19 23.1 LCD or Black Box ECDIS with user supplied wide glass bridge monitors are available Simple Ethernet connection to FAR2xx7 Radars saving thousands over complex interface kits www.Facebook.comFuruno ECDISElectronic Chart Display and Information System ECDISElectronic Chart Display and Information System About the Authors Lee Seham Esq. is the General Counsel of PVA Associate Member American Maritime Safety Inc. White Plains NY and a partner in the New York law firm of Seham Seham Meltz Petersen LLP. AMS offers USCG- compliant drug and alcohol testing programs and training programs for responsible alcohol service. Mark Meeker serves as American Maritime Safetys Assistant General Counsel con- ducting on-site training classes nationwide for drug and alcohol testing as well as providing legal guidance to over 400 member companies regarding com- pliance with federal regulations. can last up to 21 days chronic use fiveday might remain detectable for up to 30 days while months of chronic use may result in positive drug test results up to six weeks afterwards. While the federal governments position on the illegality of marijuana remains clear an increasing number of states are enacting laws designed to protect the employment rights of employees who have lawfully used medical marijuana. Consequently employers need to keep abreast of the growing body of state law protecting the employment rights of such marijuana users vis-a-vis shoreside employees who are not subject to DOTUSCG testing requirements. For example states prohibiting discrimination based on legitimate medical marijuana use may also prohibit under their respective state disability anti-discrimination statutes any inquiry into prescription marijuana unless the employer can demonstrate that the inquiry is job-related and consistent with business necessity. Nevertheless to the extent such shoreside employees require a TWIC card to perform their duties it should be noted that a felony conviction for the distribu- tion possession with intent to distribute or importation of a controlled substance is treated by the Transportation Security Administration as a criminal offense dis- qualifying the individual for seven years from date of conviction and five years from the date of release from prison following a conviction. DOT regulations however effectively preempt such state laws when it comes to individuals occupying safety sensitive positions in regulated transportation industries. The DOTUSCG mandate is clear a mariner who tests positive for marijuana must be removed from safety sensitive duties as soon as practicable. In short any mariner who cares about his career must abstain from marijuana entirely. n Interior and exterior seating and accessories for any commercial vessel Passenger seats Interior benches Exterior benches Fold up seat Helm seat Bar stool Tub chair Tables Full range of accessories APRIL 2016 FOGHORN 13 BUSINESSMATTERS I n an earlier column I recounted the misadventure of losing your top sales person. You scramble and go to the outside world and find out everyone is making 15 to 20 percent more than your best person. You get creative layer in a series of one-time deals and incentives only to have this leak out to your dedicated staff in the first month. Then your new star wants to change all your business processes what do you mean I have to collect the money why do I have to service the group how come I have to board that big group and you are both mutually relieved when this star leaves within six months. There has to be a better way There is. You must be dedicated to growing your own farm team. Free agency seldom wins championships and only ensures youll be constantly paying top dollar for others histori- cal results. Indeed I cant remember a key free agent hired under such cir- cumstances that exceeded our expecta- tions over time. There are no messiahs in business you must grow your own team. Here are some thoughts on building your farm team Be aggressive about hiring students. I have seen scores of students start in the marine crew and earn their captain license. They gained valuable experience about lead- ership seamanship and the real world. Some might take sabbaticals from life to join your team or af- terwards move on to other careers. I had a former college dropout become a captain and then even- tually become a surgeon for the U.S. Navy. A Michigan State food and beverage intern Dan Leaman is now the general manager for Entertainment Cruises complex D.C. operation. Students can fulfill peak season needs moreover they generally flock together with other high caliber friends to plus up your staff. The ones that stick will start your pipeline. For our professional positions we believed in hiring someone a year out of school let someone else teach workplace 101 and pairing them with someone with two to three years of experience to learn the ropes. When interviewing ask yourself if Building Your Farm Team By Bob Shaw Industry Consultant 14 APRIL 2016 FOGHORN BUSINESSMATTERS About the Author Bob Shaw is a veteran industry executive having led over 100 vessels respon- sible for over 10 million passen- gers a year. He can be reached at you could see promoting them one to two levels as you train them and they gain experience. If not you need to pass because you are pro- actively planning your future with people who can grow and are not placeholders. For difficult-to-retain positions have a clear path. For years the reception and administrative support roles were disasters to fill people with potential left quickly and those who stayed were just interested in a J-O-B. Make it clear that this is an entry perch to the organization and if they arent moving on to another position within the first year this will not be a good fit and they will have to move on. Make your crew ambidextrous. Information technology IT positions are always hard if you only have one person you are vul- nerable should they leave. Train interested crew in new areas like IT help desk pay-for-click admin- istration social media monitoring inventory management hourly crew recruiting and dozens of other topics. Then move them along to a new department. Youll have depth for esoteric topics plus crew who are constantly learning and are excited by the new challenges. Ive seen call center agents morph into world- class experts in important business subjects. Respect your crew. Entry-level positions may not get much respect in life and respect is the founda- tion for long-term relationships. Introduce and live by a compre- hensive service system. This will demonstrate that you believe in and have a special organization which will in turn inspire enthusiasm and loyalty throughout the farm team. Talent comes in all ages. Forgive any implied emphasis on kids but everyone today looks like a kid to me. Todays boomers are going to work forever Im one of them and many are looking for a fun energetic business that is a break from other careers. I have a high school buddy John Flynn who retired as a U.S. Navy pilot after 30 years and then started at HMS Ferries as a deckhand to get his captain license. After winning employee of the year honors he has successfully transi- tioned to a new career that offers the flexibility and travel he loves. One of my favorite Wow stories concerns a 60-year-old deckhand formerly a union operator who thrived in a service system and inspired hundreds of co-workers. Find people with the right stuff who fit in your organizations culture. It is the old idea of hire for attitude and train for skill. Tom Landry the Hall of Fame Dallas Cowboy coach would say you should find the best natural athlete not the best person in a particular position. Fortunately almost all positions can be filled by energetic people at any age. Always promote for the vacancy created by a promotion. My personal record is an initial promotion allowed us to promote four others. Thats what the farm team is all about Mentorship becomes everyones mission not just that of the owner key leader or those with special talent. Everyone must view each position as integral to the companys future and invest the time energy and wisdom to make one and all successful. Building the farm team isnt easy or fast but returns and profits are always the result of the great effort to get that flywheel going. And certainly the best answers reside with your team brain- storm with them and the right ideas will emerge. With an eye towards the future investing in your farm team will pay vast dividends with loyal dynamic crew who will bring a smile to your face every day. n APRIL 2016 FOGHORN 15 REGULATORYREPORT By Peter Lauridsen PVA Regulatory Affairs Consultant I recently had the opportunity to sit in on the opening days of testimony before the U.S. Coast Guard Marine Board of Investigation MBI convened to investigate the loss of the SS El Faro. I looked forward to being an observer to another event in the history of the Coast Guards marine casualty inves- tigation mission. While listening to the witnesses as the Board begins to assemble the facts that will become its report to the Commandant was sometimes difficult for me. The expe- rience was both a professional and a personal review. As a consultant since retirement from the Coast Guard I have followed investigations involving passenger vessels and others that had a potential impact on our marine industry as a whole. During my Coast Guard career my duties often involved marine investigation analysis inves- tigative report review and leading investigations including serving on three Commandant Marine Boards of Investigation MBI. The evolution of the Coast Guard and National Transportation Safety Board NTSB relationship is--and was--in some ways dramatic between my firsthand experience as Coast Guard officer and what I witnessed today with the El Faro investigation. The Coast Guard and its predecessor organizations has relied heavily on the investigation of marine casualties to develop remedial regulations and proactively seek improvements in the name of safety of property and life. Its stated goal in investigation is the deter- mination of cause for the purposes of review of existing regulation recom- mending new regulation enforcement of laws and regulation identifying any contributory conduct of maritime The Coast Guard and National Transportation Board History A Personal Report 16 APRIL 2016 FOGHORN REGULATORYREPORT EASY MANEUVERABILITY Give your passengers a smooth ride with reliable John Deere PowerTech propulsion and generator drive engines. With high torque and low-rated rpm they deliver excellent vessel control and quiet operation. For easy navigation on the water Nothing Runs Like A Deere. JohnDeere.commarine 60 to 559 kW 80 to 750 hp and government employees and making recommendations for further action under administrative andor federal statutes penalty processes. The Department of Transportation DOT was created by Congress in 1966 and established the NTSB as an agency under the DOT from its roots from the federal governments role in aviation safety. Its goal is the determination of probable cause and to make recommen- dations for improvement in regulation and policies involving safety in trans- portation modes. The marine transpor- tation mode was not included initially. NTSB recommendations when made are often independent of existing regu- lation the ability to create new regula- tion and may not be limited to current technology. My first experience or really non- experience with NTSB was during my casualty analysis duties. It was during the time that the NTSB did not inves- tigate or determine probable cause of marine casualties. There was a Coast Guard officer assigned to the NTSB as a liaison resource that often interacted with Coast Guard investigation policy activities. By the time of my first MBI role the Transportation Safety Act of 1974 had passed Congress. That Act included major marine accidents under NTSB purview. Major marine accidents were then defined primarily as the loss of six or more lives or the loss of an inspected vessel over 100 gross tons. When legislation increased the NTSB scope of responsibility to include marine incidents Coast Guard au- thorities remained in place so there was a shared interest in major marine accidents. My MBI experiences all post-date this expanded role of NTSB. In October 1976 the inbound Norwegian tanker Frosta collided with the Louisiana state ferry George Prince at mile 120.8 AHP in the Lower Mississippi River. The George Prince capsized and its five crewmembers and 72 passengers perished. Only 18 passengers survived. The Coast Guard convened a Marine Board of Investigation that met within days of the accident. When the Board met to take the testimony of witnesses the NTSB assigned a staff member to the panel. The Coast Guard published their Marine Casualty Report on April 18 1978. In August 1979 the down-bound Peruvian freight vessel MV Inca Tupac Yupanqui lost power and collided with the moored tank barge Panama City and its tug Capt. Norman at mile 125.4 above the Head of Passes in the Mississippi River. Ten MV V Inca Tupac Yupanqui crewmembers and two Capt. Norman crewmembers died in the resultant fire. The Coast Guard convened a Marine Board of Investigation that met within days of the accident. An NTSB staff member participated in the first day or so of testimony of the witnesses. Upon his departure the NTSB member indicated that the Coast Guard report would be accepted as ful- filling NTSB responsibilities. The Coast Guard published their Marine Casualty Report on May 10 1983. In February 1983 during a winter storm the cargo vessel SS Marine Electric progressively flooded and capsized off the Virginia Capes. All but three of the 34 crewmembers perished in the cold dark waters. The Coast Guard convened a Marine Board of Investigation that met within days of the accident. The NTSB assigned two staff members to participate in the panels taking of testimony. Through them the MBI accessed some of the in- vestigative assets of the NTSB. In 1981 the Coast Guard and NTSB entered into a Memorandum of Understanding MOU that sought to clarify for each their respective un- derstandings of this area of mutual statutory and regulatory interest. There remained an aura of competition and discomfort. The NTSB Authorization Act of 2000 directed NTSB and the Coast Guard to revise their 1981 MOU. The revised MOU was signed in 2002. A news release from NTSB characterized the MOU as follows The agreement is in response to legisla- tion requiring the two agencies to clarify when the NTSB will lead a marine inves- tigation and to develop standards for deter- mining if an accident involves significant issues related to the Coast Guards per- formance of its safety functions that may require independent review. It replaces an earlier agreement dating from 1981. For the most part the Safety Board expects to concentrate its activities on passenger vessels and those marine casual- APRIL 2016 FOGHORN 17 REGULATORYREPORT 2570 Beverly Dr. 128 Aurora IL 60502 T 630.236.3500 CENTA Power trAnsmIssIon LeADIng By InnovAtIon USA based production Over 20 unique designs Over 16 million sold Torsional vibration experts Trust CENTA The Global Innovator Since 1970 CENTALINK Carbon Fiber Driveshafts Innovative flexible couplings for marine applications As a leader in passenger vessel design stability assessments and refurbishments our vessels are not only beautiful theyre also safe and efficient to operate while producing maximum profitability for owners. To bring Jensen on board for your next passenger vessel design or build contact us at 206.332.8090 or visit our website at Passenger Vessel Designs OPtimizeD fOr PrOfitability ties that risked or threatened high loss of life. Specifically the Board may elect to lead an investigation of A passenger vessel accident fire collision grounding sinking that places those on board at serious risk Avessel accident that seriously threatens port facilities for example an allision with a permanently moored vessel or high occupancy waterfront facility A cargo vessel accident that involves three or more fatalities or A multimodal marine accident that results in fatalities. In these cases when the Safety Board elects to take the lead the investigations will be conducted under established NTSB rules and procedures with the Coast Guard par- ticipating as a party to the investigation. This news release reflected in part the unease that had been cultivated in practice between the agencies over the preceding years. It also illustrated the then-NTSB priority to focus on passenger vessel safety. In 2008 the agencies entered into another MOU that replaced the 2002 version. This MOU was introduced with the following paragraph The intent of this agreement is to ensure interagency communication cooperation and coordination and to engender the de- velopment of marine safety investigation processes that will best serve the maritime community and the public at large. This agreement is not intended to limit the statutory jurisdiction of either agency or to prevent thorough investigation of marine casualties. The MOU also offered a new statement of significant marine casualty for the purposes of the MOU 1 The loss of three or more lives on a commercial passenger vessel 2 Loss of life or serious injury to twelve or more persons on any com- mercial vessel 3 The loss of a mechanically propelled commercial vessel of 1600 or more gross tons 4Any marine casualty with loss of life involving a highway bridge railroad or other shore side structure 5 Serious threat as determined by the Commandant and concurred in by the Chairman or their designees to life property or the environment by hazardous materials 6 Significant safety issues as deter- mined by the Commandant and concurred in by the Chairman or their designees relating to Coast Guard marine safety functions. This progress was demonstrated in the ongoing SS El Faro investigation. NTSB is the lead agency and responded CONTINUED ON PAGE 30 18 APRIL 2016 FOGHORN LEGISLATIVEREPORT HSCCODEANNEX10 ISO90012008 The most versatile safe and light weight seats are now... Cancun Seat By Ed Welch PVA Legislative Director T he number of PVAmembers who benefit from having a Capital Construction Fund CCF is inching up. Maybe you too should in- vestigate whether establishing such an account to defer federal income taxes and accumulate capital for vessel con- struction or acquisition makes sense for you. The CCF is available to select private-sector vessel operators and shipyards too. Some of us like to char- acterize the CCF as a maritime IRA. Because of the intricacies of federal law not every PVA vessel operator is a realistic candidate for using a CCF. But for those who are it can be a great financial tool. Currently PVAmembers with CCFs operate passenger vessels of all types throughout the Great Lakes and in Hawaii and Alaska. In addition the precedent has been established to use CCF monies for a ferry vessel re- gardless of geographic location that transports vehicles. A Capital Construction Fund is a special account authorized by federal law to enable the owner or operator of a vessel to accumulate tax-deferred earnings. The proceeds of the account are used to build a new vessel acquire another vessel reconstruct an existing vessel or pay off debt attributed to vessel acquisition. A vessel owner with a CCF may deposit a portion of yearly vessel earnings into a designated account approved by the U.S. Maritime Administration. Income taxes are deferred on the amounts deposited stated another way the passenger vessel operators taxable income for the year of the deposit is reduced by the amount placed in the Capital Construction Fund Later the operator can withdraw funds from the account to construct or acquire or reconstruct a U.S.-built U.S.-flagged vessel without subjecting the withdrawals to income tax liability. However there is a corre- sponding downward adjustment in the tax basis of the acquired vessel. Look Into the Value of a Capital Construction Fund What are the legal restrictions that cause the CCF program to be poten- tially useful for some PVA members and not for others Essentially it comes down to the type of service or the area of operation of the vessel obtained with the CCF withdrawals in the language of the federal law this is the qualified vessel. If you are a private operator and are contemplating a new vessel of the following type you should strongly look into the merits of the CCF program if you need to accumulate capital for A passenger-carrying vessel operating anywhere in the Great Lakes or their close tributaries A passenger-carrying vessel operating in or traveling to Hawaii or Alaska Avehicle-carrying ferry operating anywhere in the country but not a pas- senger-only ferry A passenger-carrying vessel operating in or traveling to Puerto Rico the U.S. Virgin Islands or Guam and A passenger-carrying vessel of any type in international service. Lets look more carefully at the vehicle-carrying ferry category. In late 2015 the Maritime Administration approved a PVA member operating on the East Coast to establish a CCF for this purpose. To our knowledge this is the first CCF of this sort to be established and it sets a precedent for the approval of similar applications by other PVA members who wish to build or acquire vehicle-carrying ferry vessels. Eligibility for vehicle-carrying ferries was created in the year 2010 when Congress amended the CCF law Public Law 110-240 section 1122. The amendment created a new class of qualified vessels for use in the short- sea transportation trade. This category APRIL 2016 FOGHORN 19 LEGISLATIVEREPORT means the carriage by vessel of cargo A that is ii loaded on the vessel by means of wheeled transportation tech- nology for transportation between two U.S. ports or between a U.S. port and a Canadian port on the Great Lakes Saint Lawrence Seaway System. This is an awkward way of saying vehicle- carrying ferry vessel but that is what it means and thats how the Maritime Administration interprets it. Unfortunately if a PVA member wishes to acquire a new passenger- only ferry or other type of passenger vessel for operation in the lower 48 states other than in the Great Lakes the CCF program is not a viable pos- sibility. PVAs Board of Directors has set a legislative goal of changes to the CCF law so that even more PVA members might have the option of using a CCF The Boards resolution states To encourage the construction of more vessels in U.S. shipyards and to increase the amount of capital available for such construction the PVA Board of Directors urges that the Capital Construction Fund law be amended so that the term qualified vessel includes any U.S.-flagged passenger vessel or small passenger vessel. This will require an act of Congress. There are not quite 20 passenger vessel operators throughout the nation that currently have approved CCFs. Despite the laws restrictions even more PVA members who dont currently take advantage of the CCF program are eligible to do so right now. It would be prudent to look into whether you might be one of them. Unlike some federal programs its relatively easy to set up and maintain a CCF. The Maritime Administration has an informative CCF web site simply Google Marad CCF and youll be directed right there. If youd like a MARAD powerpoint presentation on CCF simply email me at ewelchpas- For more informa- tion you can also contact Mr. Daniel Ladd at MARADs Office ofFinancial Approvals at 202 366-5737 or daniel. n 20 APRIL 2016 FOGHORN Complete control and steering systems for vessels of all types and sizes. 1 604572-3935 Surrey BC Canada KOBELT MANUFACTURING CO.LTD. O n more than one occasion I have heard PVA members say that they have mixed feelings about attending my seminars the information is helpful but they never walk out feeling positive as each new legal development seems to create a greater burden or risk for vessel operators. In most cases there is little basis for great concern however a recent case just issued on March 17 2016 by the U.S. Court of Appeals Second Circuit should give concern to any vessel operator which fails to comply with the requirements of the federal wage hour and overtime laws Fair Labor Standards Act or the Family and Medical LeaveAct FMLA. In Graziadio v. Culinary Institute of America an employee claimed that she was not given the leave rights to which she was entitled under the FMLAin the care of her son. She filed suit against her employer as well as the Director of Human Resources individually. The Director of Human Resources moved to dismiss herself from the suit on the basis that she was not an employer and thus exempt from being named in the suit or having personal liability even if FMLA rights were incorrectly denied. The Second Circuit ruled against the Director of Human Resources explaining that for purposes of the FMLA as well as for the federal wage LEGAL By Steven E. Bers Esq. PVA General Counsel Personal Liability for WageHour Compliance APRIL 2016 FOGHORN 21 QUALITY FERRIES FROM THE VIGORKVICHAK TEAM 144-CAR FERRY KVICHAK 400 PASSENGER-ONLY-FERRY 206.545.8485 KVICHAK.COM SALESKVICHAK.COM 1.855.VIGOR99 VIGOR.NET MARINESALESVIGOR.NET LEGAL hour and overtime laws employer is defined as encompassing any person who acts directly or indirectly in the interest of an employer to any of the employees of such employer. In applying this standard the Court outlined the factors it will consider in determining if in the economic reality a particular individual should be deemed to have employer status and thus be a possible target for personal suit whether the alleged employer 1 had the power to hire and fire the employees 2 supervised and controlled employee work schedules or conditions of employment 3 de- termined the rate and method of payment and 4 maintained employ- ment records. . . . .No one of the four factors standing alone is dispositive . . . and any relevant evidence may be examined so as to avoid having the test confined to a narrow legalistic defini- tion. In short if you are the wage and hour program decider you can be a defendant. To passenger vessel owners espe- cially smaller operators in which the owner is sometime chief cook and bottle washer the message is sobering. If there is a wage hour overtime or FMLA violation of law the usual rules about being protected by the corporate entity format will not apply. This treatment is different from most federal anti-discrimination laws in which personal liability is usually not a risk. It has always stood as a healthy practice to have an employers wage and benefit practices audited by knowledgeable employment counsel to assure compliance with the often complicated and counterintuitive em- ployment laws. This case is a strong reminder that doing so may be smart in the protection not only of the business but also in the protection of an owners own personal assets. One final note is important the Department of Labor now has proposed regulations that would increase the mandatory salary which must be paid to an executive or ad- ministrative employee to be classified as overtime exempt. Although a final articulation of the new standard is yet to be issued it is anticipated that by the end of the year 2016 that mandatory salary level will be increased to approx- imately 54000 per year. Especially in view of the personal liability confirmed in this recent case vessel owners are well advised to keep current in moni- toring wage and hour law changes in 2016. n About the Author Steve Bers is an attorney at Whiteford Taylor and Preston in Baltimore MD and PVAs General Counsel. He is a frequent FOGHORN con- tributor as well as a popular speaker at the PVA meetings and conventions. He also assists PVA members through the PVA Legal 410-347-8724 or 22 APRIL 2016 FOGHORN SAFETYMATTERS By Eric Christensen Director of Regulatory Affairs and Risk Management T here seems to be some confusion among mariners operating do- mestically regarding the rela- tively new Mariner Medical Certificate. Part of the confusion stems from the fact that not all mariners have a medical certificate yet. Below you will find useful information on the certifi- cate and how it is integrated into your merchant mariner credential. What is the Medical Certificate The medical certificate is a relative- ly new document that serves as proof that a mariner meets the required regu- latory medical and physical standards in 46 CFR 10.30110.306. The medical certificate is the Coast Guards autho- rization that a mariner has met the following requirements Demonstrated adequate hearing and speech to communicate ef- fectively and detect any audible alarms Has no medical condition disorder or impairment that will prevent the effective and safe conduct of the mariners routine and emergency duties Any limitations restrictions and waivers are clearly documented Is not taking medication that has side effects that will impair judgment balance or any other requirements for effective and safe performance of routine and emergency duties on board and For mariners operating internation- ally has the physical capability to fulfill all the requirements of basic training as required by Section A-VI1 of the 2010 Standards of Training Certification and Watchkeeping STCW. Why a Separate Certificate As part of the 2013 rulemaking to incorporate the 2010 Amendments of Understanding the New Mariner Medical Certicate 1 920.686.5117 burgerboat.comcommercial LUCIA Delivered June 24 2015 89 27m Steel Passenger Vessel Proudly built in the USA Burger is recognized worldwide for quality custom vessels that provide years of dependable service. Quality Commercial Vessels... Built by Burger to Your Requirements Aluminum and Steel Fabrication Passenger Vessels Research Vessels Fast Crew Boats Fast Supply Boats Wind Farm Support Vessels Fishing Vessels Other Vessels to 260 80m APRIL 2016 FOGHORN 23 SAFETYMATTERS the STCW Convention into U.S. regu- lations the Coast Guard made other necessary changes to the domestic now referred to as national mariner credentialing regulations for the purposes of reorganization clari- fication and needed updates. The medical certificate was a product of those changes and ensures a consistent process to recognize mariner medical fitness for all U.S. mariners regardless of where in the world they operate. Implementation As of January 24 2014 the Coast Guard began issuing medical certifi- cates to each qualified mariner when processing an application that requires a medical evaluation such as issuing an original raise-in-grade or renewal credential. This will be the first time mariners with national endorsements will receive a medical certificate. If a mariner still has a valid credential and only a national endorsement then a medical certificate will be issued at their next application requiring medical evaluation. For mariners holding STCW endorsements the Coast Guard completed issuing medical certificates to all mariners holding valid interna- tional endorsements as ofApril 2 2014. A mariner may not serve under the authority of their STCW endorsement without holding a valid medical certifi- cate as per 46 CFR 15.401. First Class Pilots continue to be subject to the annual physical examina- tion requirements of 46 CFR 11.709b but a new medical certificate will only be issued every two years. Pilots will receive a medical certificate at their next annual medical review or when processing an application that requires a medical evaluation. The Application Process The Coast Guard medical forms CG-719K or CG-719KE serve as the application form for a medical certificate. In order to renew the medical certificate prior to expira- tion mariners must submit an ap- plication through a Regional Exam Center REC. Sending applications directly to the National Maritime Center will likely result in delays as the application will be returned to the mariner for proper submission to the NMC. A mariner credential application CG-719B is not required and there are no fees associated with applying for a medical certificate. As long as a mariner has a valid medical certificate there is no need to submit a medical exam form with a mariner credential application. Put Your Fleet at Your Fingertips gplink_halfpage.indd 1 1142015 33702 PM 24 APRIL 2016 FOGHORN Period of Validity What is with the 3 separate expiration dates Please note on Figure 1 right that there are three expiration dates across the top of the medical certifi- cate. The expiration dates are tied to the type of endorsements the mariner has on his or her credential National mariners Medical certificates issued to national mariners will be issued for a maximum of 5 years. In the event there is a limitation re- striction or waiver granted to the mariner a time restricted medical certificate may be issued. See below for more details. Mariners who sail under the authority of an STCW endorse- ment The expiration date ap- plicable to a mariner serving onboard vessels to which STCW applies will be for up to 2 years past the date of examination unless the mariner is under the age of 18 in which case the maximum period of validity will be 1 year. Mariners who sail as a pilot The expiration date applicable to a mariner serving under the authority of an endorsement as First-Class Pilot or acting as a pilot under another endorsement will be a maximum period of 2 years. The expiration date is tied to the date of issuance. The Coast Guard considers the date of examination to be the date that it approves the issuance of a medical certificate. It will not coincide with the date the medical practitioner signed the form 719K or 719 KE nor will it necessarily coincide with the issuance date of the medical certifi- cate or mariner credential. Limitations Restrictions and Waivers The Coast Guard established as part of the 2013 rule a process to issue limitations restrictions and waivers for medical conditions which allow the Coast Guard to track SAFETYMATTERS Fast Page Loads Streamlined Checkout Multiple Account Sign-Ons Improved Search Quick Order Easy Invoice Look-up Requisition Lists Over 85000 products for your business 28 regional distribution centers Same-day van delivery 260 stores The most-knowledgeable and seasoned sales representatives in the industry Your 247 destination thats packed with the features you need to get the most out of your time and money. All backed by the power of Port Supply. 1-800-621-6885 or visit Increased Inventory Availability Let MCM manage your insurance so you can focus on your voyage MCM is a leading independent insurance brokerage based in the Pacific Northwest. Our marine practice group has more than 100 years of combined experience placing insurance and managing the marine industrys unique risks. Whether were working with vessel operators builders repair facilities or suppliers we create specialized solutions that meet each clients needs. EMpLoyEE BEnEfits ExECutivE BEnEfits REtiREMEnt pLans insuRanCE advisoRy pRopERty CasuaLty Contact Damon L. Nasman at 206 262-6375 or email Figure 1 APRIL 2016 FOGHORN 25 SAFETYMATTERS C M Y CM MY CY CMY K SCA0089A Ad - Foghorn.pdf 1 11172015 123320 PM mariner fitness where necessary. 46 CFR 10.301 states For an applicant who does not possess the vision hearing or general physical condition necessary a medical cer- tificate may be issued with appropri- ate limitations waivers andor other conditions as specified by the Coast Guard. Mariners may receive a time-re- stricted certificate. Those certificates will expire in either one or two years depending on the medical condition condition status and the need for periodic medical evaluations. This one or two-year expiration date will apply to all medical certificate categories i.e. National Certificates STCW and pilot. Applicants must comply with the ac- companying waiver letter in order to renew their certificate. Medical waivers no longer require a return signature. The limitations restrictions that result in the issuance of a medical waiver will be listed on the mariners medical certificate. The mariner will receive a medical waiver via mail outlining the terms and condi- tions required to meet the requirements of the waiver. Mariner Responsibility Once a mariner receives a medical certificate in the mail he or she must sign it and place it in their merchant mariner credential. The certificate is designed to be folded in half and placed in the pocket in the back of the credential booklet normally reserved for the TWIC. The medical certifi- cate is not valid until signed by the mariner. If a mariner renewed his or her credential after January 24 2014 and did not get s medical certificate or perhaps it was lost they can contact the Regional Exam Center of their choice and request another certificate. Above all mariners must not allow the medical certificate to expire. For more information about the medical certificate mariners can contact the National Maritime Center their local Regional Exam Center or the PVA staff. n 26 APRIL 2016 FOGHORN HOW PVA BENEFITS YOU By Jen Wilk Director Public Affairs and Development PVA Working For You P VA members and staff have been participating in Coast Guard Industry Day events around the country. These events are geared toward the issues of importance to small passenger vessel operators provide providing updates to on regu- latory legislative and inspection topics relevant to operators as they ramp up for the busy spring operating season. Over the past few years these events have grown to include more port areas and larger attendance. PVAs engagement at these meetings with Coast Guard and industry operators continues on the work done for members to build important working relationships and healthy dialogue on the issues that impact your business. PVA is working for you. Participation in Industry Days also highlights PVA and its members com- mitment to safety. As operators look forward to preparing for the spring season they are working toward the common goal of continuing the excellent safety record of our industry. Thanks to the expertise and profes- sionalism of our industry operators and who are dedicated continuous im- provement toward advancing safety and security of our industry. Industry Day meetings benefit operators through ongoing educational updates on policy changes fostering PVA Participates in Coast Guard Industry Days Nationwide Dan Fitzgerald with PVA Member Company Freehill Hogan Maher LLP left answers attendees questions about emergency preparedness at New York Industry Day. APRIL 2016 FOGHORN 27 HOW PVA BENEFITS YOU conversation with the Coast Guard and getting to know their inspectors before they come onboard. Also the discussion and networking shared between fellow local operators can fa- cilitate port-wide problem solving and identifying business solutions to meet the challenges of operating a passenger vessel business The strong programing provided by the Coast Guard at these events provides critical policy updates operators. At some of the Industry Day meetings PVA staff was asked to present on issues impacting the industry as well as provide an overview of the appeals process. A major topic was the change in the law one-size-fits-all Out-of-Water Survival Craft. PVA thanked members and our partners in the maritime industry for their help advocating for this change. By mobilizing industry advocacy through a broader coalition across the country with a unified message was critical in successfully changing the law. PVA made sure to reinforce that because of the new law operators can continue to operate with life floats and the current Coast Guard regulatory system for survival craft remains in effect. Manufacturers have been contacted by Coast Guard notifying them of their ability to continue to provide approved life floats to industry. Also discussed was AIS implemen- tation. The final rule went into effect March 1 2016 or for seasonal operators when they start up operations. Increased sales through our multiple low to no cost marketing plans. Decreased operating cost by eliminating redundancy and automating workflow for better efficiency. Flexible management tools to give you the ultimate control over your sales and operations. DESTINATION MANAGER THE COMPLETE SALES AND MANAGEMENT SYSTEM Formally Virtual Ticketer No Risk Free Trial Tim Eversole Director of Sales and Support Tel 504 840-9800 X 113 Toll Free 877 265-3521 X 113 Cell 859 652-9885 YOUR COMPLETE TICKETING SOLUTION. Michael Brydon Director of Sales and Support Tel 504 840-9800 X 101 Toll Free 877 265-3521 X 101 Cell 504 914-7334 Gordon Stevens President CEO New Orleans Steamboat Company Gray Line Tours We have been using the Virtual Ticketer for six years and have been extremely pleased with the product software and service. We give this reservation system our very highest recommendation. ................................................................................................. Hugh Mackenzie General Manager Kingston 1000 Islands Cruises and Trolley The advantage with Ticketer is that its client based. This allows us to provide a customer multiple events packages or services all under one reservation which has contributed to our success. ......................................................................................... Rose M. Christian Treasurer Native Son Ferry The Virtual Ticketer has increased our revenues with new sales capabilities and has helped us better manage our company by streamlining our operations. Increased sales through our multiple low to no cost marketing plans. Decreased operating cost by eliminating redundancy and automating workflow for better efficiency. Flexible management tools to give you the ultimate control over your sales and operations. DESTINATION MANAGER THE COMPLETE SALES AND MANAGEMENT SYSTEM Formally Virtual Ticketer No Risk Free Trial Tim Eversole Director of Sales and Support Tel 504 840-9800 X 113 Toll Free 877 265-3521 X 113 Cell 859 652-9885 YOUR COMPLETE TICKETING SOLUTION. THE VIRTUAL TICKETER Applications for waivers are available. Additionally the topic of cybersecu- rity was talked about. The presenta- tions focused generally on awareness. However operators should know that while this is a hot topic in at-large for passenger vessels there are no regu- lations in place. There is discussion of a NVIC being drafted by Coast Guard to provide guidance on how operators might prepare to enhance their cyberse- curity capabilities. And PVA is hearing that we may likely see application only for vessels required to have a security plan PVA thanks the Coast Guard and industry for their support of Industry Days throughout the country and urges the continuation of these valuable programs. n Jen Wilk PVAs Director Public Affairs and Development speaks to attendees about policy issues at New York Industry Day. Boston Harbor Cruises Assists in Exploration of History Channels Billion Dollar Wreck Boston-based Boston Harbor Cruises BHC Offshore Logistics Division played a critical role in sup- porting the exploration of the RMS Republic in the History Channels television series Billion Dollar Wreck as BHC vessels Warren Jr. and Mathew J. Hughes provided an ocean platform for the expe- ditions divers and equipment. Billion Dollar Wreck premiered in February and follows famed treasure hunter Martin Bayerle and his son Grant as they embark on a complex expedition in pursuit of over a billion dollars worth of treasure aboard the renowned and mysterious sunken cruise liner RMS Republic. R e p u b l i c k n o w n a s t h e Millionaires Ship sank 107 years ago. Legend has it that five tons of gold was on board when the ship bound for Russia went down. Mystery death and danger has sur- rounded Republic ever since. The wreck was discovered in 1981 by lifelong treasure hunter Martin Bayerle who holds exclusive salvage rights to the ship and has spent the last 35 years researching Republic and its reputed cargo. M o r e t h a n 1 5 B H C c r e w members led by owner Rick Nolan and Captain Tiger MacDonald assisted Bayerle in his quest. Boston Harbor Cruises is excited to be part of Historys series Billion Dollar Wreck. It was thrilling to assist the divers and the crew as they explored Republic. We look forward to seeing how the episodes unfold said Nolan. BHCs Offshore Logistics Division supplies specialized equipment vessels and crew for subsea research and testing offshore oil and gas work construction and exploration and ship support services. n Cajun Jack Swamp Tours Lester Giordano Sr. Passes Away Lester Lawrence Giordano Sr. president of Cajun Jack Swamp Tour Berwick LA passed on February 7 at age 74. Known to many as Cajun Jack Lester navigated the local Atchafalaya Basin and bayous as owner of Cajun Jack Swamp Tours. With a wealth of knowledge and a vibrant personality all of his tours were given with great detail and care. Lester proudly served in the United States Army as a gunner in the Vietnam War. Lester is survived by his three children four grandchildren his brother and sister and his companion Dawn Herbert. n Robert W. Clark St. Lawrence Cruise Lines Passes Away Robert Clark passed away Friday February 26 at age 79. Bob and his late wife Myrna started St. Lawrence Cruise Lines in Kingston Ontario. A strong supporter of the Passenger Vessel Association he urged operators to understand the regulatory aspects of the passenger vessel industry. He was a two-time recipient of the Kingston Businessman of the Year Award. n 28 APRIL 2016 FOGHORN MEMBERNEWS Maintenance Management Program Cloud Based - Access from any Device with any browser Maintenance - Inventory - Documentation Intuitive User Interface Flagship Integration Turnkey Setup w w w . W h e e l H o u s e T e c h . c o m - 9 7 8 - 5 6 2 - 5 2 1 1 Foghorn_March_2015.indd 1 2202015 34342 PM Plaunt Tranportation Bids Sad Farewell to Ray Plaunt Ray Plaunt of Plaunt Transportation Cheboygan MI passed away on February 17 at age 95. He was a sec- ond-generation owner of Plaunt Transportation which has been in operation for more than 80 years. At age 12 he started working in the business his father estab- lished and as Captain he transported passengers and supplies to Bois Blanc Island in the Straits of Macinac. He also served in the U.S. Army during World War II. He leaves behind his wife Ruth sister his children 33 grandchildren 38 great-grandchildren and one great-great grandchild. The operation continues in the family with President Curt Plaunt at the helm. n APRIL 2016 FOGHORN 29 MEMBERNEWS Former Disney Travel President Kenneth Svendsen Joins Entertainment Cruises as New CEO Earlier this year Chicago-based Entertainment Cruises announced the appointment of Kenneth Svendsen as its new chief executive officer. Svendsen 49 joins Entertainment Cruises following nearly three decades in the entertainment hospitality and travel industries. Most recently he served as president of the Walt Disney Travel Company an affiliate of The Disney Company one of the countrys largest travel wholesalers and served as senior vice president of global sales distribution and travel operations for Disney Destinations. Additionally Svendsen led Customer Relationship Management CRM for Walt Disney Parks and Resorts where he focused on one-on-one guest interactions and experiences. Prior to Disney Svendsen was senior vice president and global head of sales and reservations for Hilton Worldwide. I am excited to join Entertainment Cruises which delivers a world-class cruise experience with unmatched views of some of our nations most beautiful cities said Svendsen. Entertainment Cruises serves 1.5 million guests annually with a fleet of 30 ships in cities that include Baltimore Boston Chicago National Harbor MD Norfolk VA Philadelphia New York Fort Lauderdale Miami Boca Raton Palm Beach and Washington D.C. n Deadline for Foundation Scholarships Is June 30 Now is the time to apply for an educational grant from the Passenger Vessel Foundation PVF. Applications are due by June 30. The PVF Scholarship program promotes professional- ism safety and opportunity within the field for those individuals currently employed or who wish to become employed in the segment of maritime service represented by U.S. domestic passenger vessels. Grants are awarded with a focus on educational assistance research training and the improvement of safety within the maritime industry. For more information or to donate to the tax-deductable Foundation visit n 30 APRIL 2016 FOGHORN MEMBERNEWS ADVERTISERSINDEX April 12-13 2016 Mid-Atlantic Waterways Conference Norfolk Waterside Marriott Norfolk VA April 26 2016 PVA Congressional Fly-In Sheraton Suites Old Town Alexandria Alexandria VA January 29 - February 1 2017 PVA Annual Convention at MariTrends 2017 Washington State Convention Center Seattle Washington For more information go to SitePagescalendar.html PVA CALENDAR PVA WELCOMES NEW MEMBERS to the scene in Jacksonville with an NTSB Board member to begin the accumula- tion of evidence and be the spokesperson for the investigating agencies. The Coast Guard was then participating as the search and rescue agency and as a cooperat- ing party. The Coast Guard convened its MBI in Jacksonville on February 16 2016 with the cooperation and participation of the NTSB on the panel. This panel is the primary vehicle for Coast Guard purposes of fulfilling their statutory and regu- latory duties that CAPT Jason Neubauer outlined at the beginning of each day of testimony. It is apparent that the two agencies are operating cooperatively as outlined in the 2008 MOU. PVA in its own interest over the years proactively reached out to NTSB beginning with Chairman James Jim Hall being invited to participate in PVA meetings and discussions of means of cooperation between PVA and the NTSB staffs. That mutual cooperation has continued up to and including the current Chairman Christopher Hart who addressed our members at our convention in January at the PVAAnnual Convention at MariTrends 2016. n REGULATORY REPORT CONTINUED FROM PAGE 17 ABS Americas........................................25 All American Marine...............................29 Aon Risk Management............................11 Blount Boats Inc....................................26 Burger Boat Company.............................22 Carus AB Ltd............................................8 Centa Corporation..................................17 DBC Marine - Survitec.............................25 Dejong and Lebet...................................23 Driveline Service of Portland Inc..............30 Freedman Seating Company....................18 Front Street Shipyard.................................9 Furuno USA Inc.....................................12 GPLINK LLC............................................23 Hamilton Jet...........................................20 HUMPHREE USA LLC............................26 Jensen Maritime Consultants....................17 John Deere Power Systems.......................16 Kobelt....................................................20 MCM....................................................24 Metal Shark Aluminum Boats....................14 Motor Services Hugo Stamp....................32 MTU......................................................31 Port SupplyWest Marine........................24 Scania USA.............................................7 Springfield Group...................................10 Starboard Suite......................................19 Trans4media..........................................29 Twin Disc Inc...........................................2 UES Seating...........................................13 Vigor ....................................................21 Virtual Ticketing Solutions........................27 VT Halter Marine....................................12 WheelHouse Technologies Inc.................28 Zerve....................................................15 Pole Star Maritime LLC Woolwich ME Mr. Steve Hadik Associate Rigidized Metals Corporation Buffalo NY Mr. Dick Friedman Associate El Dorado Cruise LLC Bronx NY Mr. Dhaneshwar Ramlochan Vessel JDL Brothers LLC Rockaway Park NY Mr. Joseph Lind Vessel Partnering for success. 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