the port of johnstown management committee · 2018-08-17 · the port of johnstown management...

THE PORT OF JOHNSTOWN MANAGEMENT COMMITTEE

THE TOWNSHIP OF EDWARDSBURGH CARDINAL Meeting of Jan. 24, 2018 6:30pm Council Chambers, Municipal Office — Spencerville, Ont.

AGENDA

1. Call to Order

2. Approval of Agenda

3. Disclosure of Pecuniary Interest & the General Nature Thereof

4. Delegations and Presentations

5. Minutes of the previous POJ Committee Meeting • Meeting Dec 20U' - special meeting (morning) • Meeting Dec. 20th - regular meeting (afternoon)

6. Business Arising from Previous PMC Minutes (if any)

7. Discussion item a) Auditors letter / Response b) Cruise Ships c) Port Day (General discussion — no handouts)

8. Action/Information Items a) Year End Report (separate e-file) b) General Managers Report — December c) Y.T.D stats d) Y.T.D Investments — Dec. 31, 2017

9. Approval of Disbursements — Port accounts (separate a-file)

10. Council Inquiries or Notices of Motion

11. Chair's Report

12. Question Period

13. Closed Session a) Business agreement (separate e-file) b) Employee Relations (separate e-file)

14. Adjournment

MINUTES PORT OF JOHNSTOWN MANAGEMENT COMMITTEE

ADMINISTRATION BUILDING B, PORT OF JOHNSTOWN WEDNESDAY, DECEMBER 20, 2017

11:00AM

Present: Mayor Patrick Sayeau, Chair Councillor Michael Barrett (arrived at 12:12pm) Councillor Gerry Morrell Mr. Joe Hendriks Mr. Frank McAuley

Regrets: Deputy Mayor Peggy Taylor Councillor Kane Smail

Guest: MP Cord Brown

Staff: Robert Dailey, General Manager Rebecca Williams, Deputy Clerk

Call to Order

Mayor Sayeau called the meeting to order at 11:43am.


Moved by: C. Morrell seconded by: F. McAuley that Committee approve the agenda as presented.

Carried

3. Disclosure of Pecuniary Interest & the General Nature Thereof - None

4. Delegations

a) Port Presentation to MP Gord Brown

The Port GM and Mayor Sayeau summarized the Port's new marine terminal and the resulting calcium chloride business with Morris Chemicals. The Port GM highlighted the new riverfront dock and the various project cargo and break bulk cargo that has arrived at the Port since the completion of the riverfront dock.

The Port GM summarized the new grain bins construction process and highlighted that two additional bins have been constructed in the summer and fall of 2017. There was a general discussion with respect to the total investment and total additional storage capacity that has been achieved through the construction of the annex grain bins. The Port GM summarized the total grain handled per year from 2008 to 2016 with a line graph chart

Page 1 of 2 Port Management committee - December 20, 2017

and highlighted that the overall total grain per year has had a steady increase since 2013.

Mayor Sayeau provided an overview of the Port finances, noting that there has been a year end surplus for the past number of years. It was noted that the Port investment account is approximately $6.2 million with $1.35 million divested to the Port of Johnstown (formerly Port of Prescott) during the transition from Ports Canada. There was a general discussion with respect to the money received through the divestiture agreement and how the Port intends to use the money in the future.

The Port GM and Mayor Sayeau provided the Committee and MP Brown an overview of numerous future capital and re-investment projects with approximate costs, including: railway bridge over County Road 2, development of west uplands area, rehabilitation of load out spouts for loading vessels, rehabilitation of elevator dock concrete wall, rehabilitation of Port dock wall, and the riverfront dock resettling asphalt project.

Mayor Sayeau highlighted two concerns that require MP Brown's assistance, specifically the CBSA easement agreement that the Port entered into with CBSA in 2016. It was noted that the CBSA legal team has not registered the easement on title. Mayor Sayeau also requested MP Brown's assistance in contacting Transport Canada to discuss possible contributions or funding for the CN railway bridge project.

Committee thanked MP Brown for attending the special Port Management Committee meeting and his continued support and assistance.

5. Question Period - None

6. Adjournment

Moved by: M. Barrett seconded by: G. Morrell that the meeting adjourn at 12:31pm.

Carried

These minutes were approved by Port Management Committee this 24 11 day of January, 2018.

Chair Deputy Clerk

Page 2 of 2 Port Management Committee - December 20,2017

MINUTES PORT OF JOHNSTOWN MANAGEMENT COMMITTEE

MUNICIPAL OFFICE — SPENCERVILLE WEDNESDAY, DECEMBER 20, 2017

1 :30PM

Present: Mayor Patrick Sayeau, Chair Deputy Mayor Peggy Taylor Councillor Michael Barrett Councillor Gerry Morrell Councillor Karie Small Mr. Joe Hendriks Mr. Frank McAuley

Guest: Joanne Glaser, Cornerstones Management Solutions Ltd

Staff: Robert Dailey, General Manager Kevin Saunders, Operations Manager Deb McKinstry, CAO/Clerk Rebecca Williams, Deputy Clerk

Call to Order

Mayor Sayeau called the meeting to order at 1:30pm.


Moved by: G. Morrell seconded by: M. Barrett that Committee approve the agenda as presented.

Carried

3. Disclosure of Pecuniary Interest & the General Nature Thereof — None

4. Delegations — None

5. Minutes of the Previous POJ Committee Meeting

Moved by: P. Taylor seconded by: M. Barrett that Port Management Committee receives and approves the minutes of Port Management Committee meeting dated November 22, 2017.

Carried

6. Business Arising from Previous PMC Minutes — None

7. Discussion Items — None

8. Action/Information Items

Page 1 of 4 Port Management Committee — December 20, 2017

a) Operations Manager's Report

The Operation's Manager summarized the report and Committee asked for clarification with respect to the Port reducing the number of available delivery appointments and if the reduction had any negative impacts.

b) General Manager's Report

Committee reviewed the General Manager's Report and noted that OMAFRA will publish an official crop yields report for the 2017 year. Members requested the OMAFRA report be included in an agenda package when it becomes available. There was a brief discussion with respect to the possibility of building a fertilizer holding tank and if there was still interest from the stevedore companies.

c) YTO Stats

Committee reviewed the YTD Stats and noted that the 2017 labour hours has decreased from 2016.

d) Capital Projects Update

Committee reviewed the Capital Projects Update. There was a brief discussion regarding the loading spouts project and timeline. Members confirmed that the final invoices from the new grain bins will stay within the budgeted amount. There was a general discussion regarding the installation of additional roof railings in 2018.

e) MOECC - Industrial Sewage Inspection Report -ECA

Port staff summarized the report and highlighted that the Port met all standards during the onsite inspection. Members enquired if any other local ports have been required to construct a storm water management pond.

Moved by: M. Barrett seconded by: P. Taylor that Committee receive and review items 8a) 8b) 8c) 8d) and 8e).

Carried

f) Final Environmental Report to DFO - South Nation Conservation

Committee reviewed the environmental report and commented on the fish habitats and wetland monitoring final results.

Moved by: P. Taylor seconded by: F. McAuley that Committee receive and review the Final Environmental Report as compiled and presented by South Nation Conservation.

Carried

Page 2 of 4 Port Management Committee - December 20, 2017

g) Recommendation - Capital - Internal Spouts Grain Elevator

Committee reviewed the recommendation and discussed the large difference between the successful bid and the highest bid prices. Members confirmed that all bidding companies inspected the site and provided project plans with their bid. Staff noted that the tender is only for a portion of the project, with additional work planned for the 2018 budget.

Moved by: M. Barrett seconded by: K. Smail that the Port Management Committee: 1. Award the transfer chute replacement project to Selleck Mechanical in the

amount of $69,640.66 (excluding HST) plus a 10% contingency. 2. Authorize staff to execute the contract.

Carried

h) Treasurer Report on Township/Port Bank Accounts

Committee reviewed the investment report and noted that staff will be meeting with the RBC account manager in the new year to discuss future bank account management in response to the closure of the Spencerville branch. Committee discussed the investment market and what is considered to be a competitive rate. There was a brief discussion with respect to LAS investment opportunities and if it would be a viable option for Port investments.

Approval of Disbursements - Port Accounts

Moved by: J. Hendriks seconded by: K. Smail that Committee approves payment of Port invoices as circulated.

Carried

10. Councillor Inquiries/Notices of Motion - None

11. Chair's Report

Mayor Sayeau reported the following: • Presentation to MP Brown took place at the Port of Johnstown today

to provide an overview of investments and future capital and re-investment projects

12. Question Period

The Port GM requested that the January meeting be scheduled on January 24. There was consensus from Committee to reschedule the meeting to January 24, 2018.

13. Closed Session


Moved by: F. McAuley seconded by: K. Smail that Port Management Committee proceeds into closed session at 2:42pm in order to address a mailer pertaining to:

• Personal matters about an identifiable individual, including municipal or local board employees; Specifically: Top Management Performance Review

• A proposed or pending acquisition or disposition of land for municipal or local board purposes; Specifically: Minutes of Closed Session dated July 19, 2017

Committee recessed for 10 minutes to clear the chamber.

Moved by: P. Taylor seconded by: J. Hendriks that the closed meeting does now adjourn and the open meeting of Port Management Committee does now resume at 3:58pm.

Carried

Moved by: M. Barrett seconded by: P. Taylor that Port Management Committee approves the minutes of closed session dated July 19, 2017.

Carried

Mayor Sayeau reported that Committee reviewed the closed session minutes and discussed the Top Management Performance Review process with Ms. Glaser from Cornerstones Management Solutions Ltd.

14. Adjournment

Moved by: G. Morrell seconded by: M. Barrett that the meeting adjourn at 4:00 pm.

Carried

These minutes were approved by Port Management Committee this 24th day of January, 2018.

Chair Deputy Clerk


CI IA I IIII -Dr kuhr5RruAI .11 1 I1ij1IA I)

January 15, 2018

Port of Johnstown 3035 County Road 2 Johnstown, Ontario KOB iTO

Dear Port Committee members:

Re: Audit Planning

We are writing this letter in connection with our audit of the financial statements for the period ending December 31, 2017.

Our purpose in writing is to ensure effective two-way communication between us in our role as auditors and yourselves with the role of overseeing the financial reporting process. In this letter we will:

a) Address our responsibilities as independent auditors and provide information about the planned scope and timing of our audit.

b) Request a response to some audit questions and any additional information you may have that could be relevant to our audit.

Auditor Responsibilities

The respective responsibilities of ourselves and of management in relation to the audit of financial statements are set out in the engagement letter that was signed on January 11, 2018. This engagement letter is attached as an appendix to this letter,

Planned Scope

Our objective as auditors is to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with Canadian public sector accounting standards.

In developing our audit plan, we worked with management to understand the nature of the Port of Johnstown and to identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error. Our audit plan has been designed to focus on the identified areas of risk.

Our preliminary audit plan is a substantive approach on significant accounts which is consistent with previous years.

p BRIAN D. KEEN. CPA. CA (RET.) PAUL DESNOYERS, CPA, CGA, LPA MCIIAEL D. DESrATft, CPA. CA . LPA [RIN LALOND[. CPA, CA, LPA Ross M. MARKELL, CPA. CA , TER LPA IAN MURPHY. CPA, CA, LPA H. JAMES POLLOCK, CPA, CA, LPA

Materiality

For the current period, we have determined an overall materiality amount of$ 155,000. This amount will be used to:

a) plan and perform the audit; and,

b) evaluate the effects of identified and uncorrected misstatements on the audit procedures performed as well as on the financial statements.

The materiality amount will be reassessed at period end to ensure it remains appropriate.

Significant Changes During Period

The significant changes that we addressed in planning the audit for the current period are set out below:

a) Your Company

There are no specific changes to the operations of the company that would have a significant audit impact that have been brought to our attention.

b) Accounting and Control Systems

There have been no significant changes to the accounting and control systems that have been brought to our attention.

c) Accounting and Auditing Standards

There have been no changes to the accounting and auditing standards that would have a significant impact on the financial statements.

d) Regulatory Environment

To date, there are no specific changes to the regulatory environment of the Company that would have a significant impact on our audit.

Internal Control

To help identify and assess the risks of material misstatement in the financial statements, we obtain an understanding of internal control relevant to the audit. This understanding is used in the design of appropriate audit procedures. It is not used for the purpose of expressing an opinion on the effectiveness of internal control. Should we identify any significant deficiencies in the internal control and accounting systems, we will communicate them to you in our audit findings letter.

Significant Financial Reporting Risks

In planning our audit, we identify significant financial reporting risks that, by their nature, require special audit consideration. By focusing on these risks, we are able to target our procedures and deliver a high quality audit that is both efficient and effective.

We have not identified any significant financial reporting risks during our audit planning.

If there are specific areas that warrant our particular attention during the audit or where you would like us to undertake some additional procedures, please let us know.

P RtFEMC Jkl_cconN1-AN

Uncorrected Misstatements

Where we identify uncorrected misstatements during our audit, we will communicate them to you, other than those that are clearly trivial. Should uncorrected misstatements remain we will inform management and request that they be corrected. If not corrected by management, we will then request that you correct them. If not corrected by you, we will also communicate the effect that they may have individually, or in aggregate, on our audit opinion.

Timing

The proposed timing of our audit (as discussed with management) is as follows: Action Date

Planning meeting with nianagement January 22, 2018

Year end field work lanuary22,2018

Present audit findings letter to administration March 30, 2018

Approval of financial statements by Council March 30,2018

Provide the audit opinion on financial statements March 30,2018

Engagement Team

Our engagement team for this audit will consist of the following personnel: Name Role Contact Details

Ross M. Markell Ennagement Partner 613-932-3610 ext 242

Erin Lalonde Farther 613-932-3610 ,1 238

JamesSendel staff 613-932-3610ext232

Audit Findings

At the conclusion of our audit, we will prepare an audit findings letter to assist you with your review of the financial statements. This letter will include our views and comments on matters such as:

significant matters, if any, arising from the audit that were discussed with management;

significant difficulties, if any, encountered during the audit;

• qualitative aspects of the entity's accounting practices, including accounting policies, accounting estimates and financial statement disclosures;

uncorrected misstatements; and

any other audit matters of governance interest.

Audit Questions and Requests Fraud

To help us in identifying and responding to the risks of fraud within the entity, we would appreciate your responses to the following questions:

What oversight, if any, do you provide over management's processes for identifying and responding to fraud risks? Management's processes could include policies, procedures, programs or controls that serve to prevent, detect and deter fraud.

ICKDMI p UN I AN rs

2. Do you have any knowledge of any actual, suspected or alleged fraud, including misappropriation of assets or manipulation of the financial statements, affecting the entity? If so, please provide details and how the fraud or allegations of fraud were addressed.

Other Matters

Would you please bring to our attention any significant matters or financial reporting risks, of which you are aware, that may not have been specifically addressed in our proposed audit plan. This could include such matters as future plans, contingencies, events, decisions, non-compliance with laws and regulations, potential litigation, specific transactions (such as with related parties or outside of the normal course of business) and any additional sources of audit evidence that might be available.

We recognize your significant role in the oversight of the audit and would welcome any observations on our audit Plan.

This letter was prepared for the sole use of those charged with governance of Port of Johnstown to carry out and discharge their responsibilities. The content should not be disclosed to any third party without our prior written consent, and we assume no responsibility to any other person.

Yours truly,

CKDM LLP

CkFYM UP

Ross M. Markell, CPA, CA, LPA, TEP

CHAR LRED rgorr,I (JLACCCUN S

40 PORT OF JOHNSTOWN

3035 County Road 2 Johnstown, ON KOE 1TI A Division of the Corporation of the Township of Edwardsburgh/Cardinal

January 25, 2018

Telephone: 613-925-4228 Facsimile: 613-925-5022 Web site: www.portofjohnstown.com Email: [email protected]

Ross M. Markell, CPA, CA, LPA, TEP Partner CKDM 709 Cotton Mill Street Cornwall, ON K6H 7K7

Dear Sir,

Re: Port of Johnstown, Audit Planning for Year Ended December 31, 2017.

Members of the Port of Johnstown management committee have reviewed your audit planning letter of January 15, 2018. It was discussed in detail at our meeting on January 24, 2018.

In response to your two questions: Audit Questions and Requests, noted on the third and fourth pages of your letter, the management committee responds as follows and has approved this response letter and endorsed my signature hereon.

Question 1 What oversight, if any, do you provide over management's processes for identifying and responding to fraud risks? Management's processes could include policies, procedures, programs or controls that serve to prevent, detect and deter fraud.

Answer: 1. Detailed discussion of budget estimates. 2. Formal budget approval by management committee and council of the

Township of Edwardsburgh Cardinal. 3. Governing body reviews budget to actual progress on a quarterly basis. 4. Monthly review of progress on execution of capital program. 5. High level monthly review of net gross revenue and net gross expenditures in

comparison to approved budget estimates. 6. Governing body meets monthly with senior management to review and

discuss any budget issues identified by management.

Question 2 Do you have any knowledge of any actual, suspected or alleged fraud, including misappropriation of assets or manipulation of the financial statements, affecting the entity? If so, please provide details and how the fraud or allegations of fraud were addressed.

Answer: 1. The governing body has no knowledge of any actual, suspected or alleged

fraudulent activity including any possible misappropriation of assets or manipulation of the financial statements. The governing body has not reviewed the financial statements prepared by management prior to their submission to the auditor for audit purposes.

Yours Truly,

Pat Sayeau, Chairman Port of Johnstown Management Committee

Great Lakes mayors group gets funding to study enhancing cruise ship

experience

ONTARIO--The Cruise Ship Industry Group (CSIG) received an early Christmas

present last month from the Ontario Ministry of Tourism, Culture and Sport

(MTCS) in the form of a $250,000 grant. The grant will be used to support

Ontario's Great Lakes cruising industry, including the development of an Ontario

cruise ship industry business case.

"Our government is pleased to support the development of a business case and

strategy that will help to grow the cruise ship industry on the Great Lakes,"

Eleanor McMahon, Minister of Tourism, Culture and Sport, said in a press

release. "This is another step we are taking to boost tourism in this province,

and I look forward to seeing the results of the study and what the future holds

for our Great Lakes communities."

"The funding announcement for the Cruise Ship Industry Business Case Study is

great news for the Port of Little Current and the other Great Lakes ports,"

commented Northeast Town Mayor Al MacNevin. "Now we will be able to assess

the economic impact of the industry and develop our infrastructure

accordingly."

Mayor MacNevin said that the Northeast Town has been curious about the

impact of the cruise ship industry and its potential for growth.

"Council has been wanting a study like this to tell us what the impact of the

cruise ship industry is on our port and what type of growth is predicted,"

explained Mayor MacNevin. "Cruise ship operators have suggested that the

industry could grow up to four times in the coming years. This study is going to

help us determine if that is the case, and what infrastructure we might need to

accommodate the growth and the impact for businesses in our port and others."

As The Expositor previously reported, Midland Mayor Gord McKay organized a

meeting with the CSIG partner municipalities and the ministry earlier this fall to

discuss the need for a study to look at the future growth of the cruise ship

industry and seek funding.

CSIG is made up of representatives from the following Ontario port cities:

Kingston; North East Manitoulin (Little Current); Parry Sound; Sault Ste. Marie;

Thunder Bay; Toronto; Windsor; and Midland.

"This is fantastic news for Midland and all of our partner CSIG municipalities."

said Mayor McKay. "This grant gives us the ability to fully assess what is

happening with the growing cruise ship industry, and to develop a robust

business case and strategy to significantly increase cruise ship tourism in our

region and throughout the Great Lakes. I am especially pleased that we are

partnering with the province and Ontario municipalities around the Great Lakes

to make this happen."

These feelings were shared by mayors from the many other Ontario port

municipalities.

"Working with other Ontario ports of call, the province, the Great Lakes Cruising

Coalition and Cruise Ontario, we are excited to be part of the development of a

feasibility study and identification of infrastructure needs to continue to grow

and support the cruise ship industry," said Parry Sound Mayor Jamie McGarvey.

"The Great Lakes offer a tremendous tourism opportunity and Sault Ste. Marie

is very excited to be a part of this project," added Christian Provenzano, Sault

Ste. Marie mayor. "We look forward to working with our fellow Great Lake

communities to develop this opportunity and we are confident that it will be a

very productive effort."

Working closely with the Great Lakes Cruise Coalition (GLCC) and its Canadian

arm, Cruise Ontario (CO), CSIG will develop a business case that identifies the

current state and future prospects of Ontario's Great Lakes cruise ship industry,

create a strategy to guide the development of a successful industry and identify

the needed infrastructure improvements to ports and port attractions.

1

Port of Johnstown

Port of

Johnstown

2017 Year End

Review

Prepared by: Barb DeJong, Rhonda Code, Kevin Saunders and Robert Dalley

Date: Jan. 24, 2018

2

Marine Business Report

Cargo The Port finished off the year with a total of 788,053 metric tons of cargo processed over the docks

with the Lower Lakes Towing Ltd. vessel Manitoulin being the last vessel of the year arriving on

December 28, 2017 carrying a load of salt. Salt continues to lead the way with a record year of

574,047 mt, while grain was down due to a combination of less grain arriving at the port and

approximately 37,000 mt of soybean remaining in storage at the grain elevator. This is expected to go

out by vessel in early 2018 when the St. Lawrence Seaway reopens.

Break bulk cargo was another good news story for the township’s port with steel beams arriving from

Europe for the construction industry, utilizing the ports newly expanded laydown areas.

• In 2013 we had 22,000 metric tons of Bauxite which is included in the total cargo

Traffic

The port experienced an increase in vessel traffic in 2017, with additional Fed Nav vessels visiting the

port to export grain and lakers bringing in salt. There were two vessels that arrived carrying steel

cargo, a new cargo for the port.

The port also received an increase in requests from vessels that were experiencing issues either with

breakdowns or access to the regular docks that they visit.

The port was proud to showcase their facility during its Port Day community event and public tours

were provided by both the Canadian Coast Guard vessel Corporate Teather and the Canadian Navy

Vessel HMCS Goose Bay. The vessels tours proved to be a popular event with over 1500 people in

attendance.

3

Vessel Commodity Metric

Tonnes Receive/Ship

1 John B. Aird Salt 5,008 R

2 Henry Jackman Salt 27,196 R

3 Robert S. Pierson Salt 16,526 R

4 Frontenac Salt 24,574 R

5 Algoma Olympic Corn 25,789 R

6 Laurentien Salt 30,487 R


8 Spartan & Spartan II Calcium Chloride 4,829 R

9 Niagara Salt 30,485 R

10 The Canadian Empress Cruise / Passengers



13 Algowood Salt 27,288 R

14 HMCS Goose Bay Public tours - Port Day

15 Corporal Teather Public tours - Port Day

16 Niagara Salt 30,486 R

17 Ocean Georgie Bain Stop over

18 Damia Desgagnes Stop over

19 Rt. Hon. Paul Martin Salt 30,314 R


21 Spartan & Spartan II Calcium Chloride 3,703 R

22 US Brig Niagara Tall ship Stop over

23 Federal Mackinac Break Bulk Cargo 2,736 R

24 Henry Jackman Salt 27,061 R

25 Argentia Degagnes Corn 4,727 S


27 Whitfish Bay Salt 29,357 R


29 Algolake Salt 22,707 R

30 Nomadic Hjellestad Break Bulk Cargo 1,937 R

31 Kaliutik/Ecosse & MM170 Project Cargo 385 S

32 Rt. Hon. Paul Martin Salt 30,280 R



35 Federal Clyde Soybeans 21,277 S



38 Kaministiqua Soybeans 25,304 S

39 Federal Welland Soybeans 23,086 S

40 Rosaire A Desgagnes Corn - 4426.49 Wheat - 2179.58 6,606 S

41 M/V Nunalik Soybeans 7,547 S

42 Federal Kushiro Wheat 17,079 S

43 Ojibway Soybeans 15,895.650 Wheat 29.365 15,925 S

44 Evans Spirit Soybeans 11,709 S

45 Thunder Bay Salt 29,015 R

46 Algoma Olympic Salt 27,574 R

47 Federal Alster Soybeans 20,480 S

48 Ojibway Soybeans 15,998 S


50 Acadia Desgagnes Corn 4,890 S

51 Algosteel Salt 24,458 R

52 Manitoulin Salt 22,176 R


TOTAL TONNES 788,053

4

Total Cargo 2017

Total cargo processed at the port in 2017 totaled 1,209,404 metric tons and is the second highest year

on record for the port. Compared to 2001 when the township first took over operations of the port,

cargo has increased from an average of 772,192 mt to 1,164,998 an increase of over 50% and the trend

continues to move in a positive direction.

Average Cargo 2001 to 2008 = 772,192 mt

Average Cargo 2009 to 2017 = 1,164,998

An average increase of 392,806 mt (51%)

5

Cargo Transportation Trends for 2017 Cargo is received and shipped by three different transportation modes: marine, truck and rail. Marine

(65%) continues to lead the way as the mode of transport preferred for bulk products in and out of the

port, followed by trucking (34%) and then rail (1%).

7

Grain Business Report

Overall, the volume of grain handled through the elevator was 623,872 MT. This represents a 20.6%

decrease when compared to the record setting volume in 2016. To put this in perspective, it should be

noted that the grain handled in 2017 is on par with the average grain handled over the previous 10

years.

The cold and wet weather in the 2017 growing season certainly had an impact on the amount of grain

seen at the Port. The soybean harvest began two weeks later than usual which in turn backed up the

corn harvest. The area was very fortunate in that some much needed warm weather arrived late

September and early October. Unfortunately, it arrived too late to benefit the soybean crop but, its

arrival did benefit the corn crop in the area. The chart shown below illustrates the volume of each

commodity handled by the Port. The highest volume crop handled by the Port is soybean while wheat

continues its downward trend in terms of volume.

8

The chart below outlines the volume of grain handled per month over the last four years to put it into

perspective. It should be noted that even though 2017 could be considered a “down” year in terms of

volume when compared to 2016, the last quarter is comparable to 2014 and 2015.

9

The wheat handled at the Port was down significantly in 2017. However, this drop in volume was not

unique to the Port. Several other elevators saw lower than expected volume as well. It appears that the

crop yields were lower in 2017 by between 25% to 30% and that producers are holding more of the

wheat in their own storage. Also of note in 2017 is that one of the more active brokers for wheat now

has their own elevator in the Winchester area and did not bring any wheat to the Port in 2017.

The amount of corn received in 2017 was also down. The start of the corn harvest was delayed due to

weather issues and this meant that one broker held onto old crop corn a little longer than expected.

Delays in the arrival of vessels for soybeans also played a part due to the lack of available storage. In

addition, producers utilizing more on farm storage also had an impact. The shortfall in corn during

harvest would have been greater without the new bins constructed at the Annex which provided an

additional 10,000 MT of storage.

On the plus side, receipts of non-GMO corn increased in 2017 to 16,871 MT which is up from the

6,231 MT that was received in 2016. The customer was satisfied with the way their corn was handled

and with the level of service provided to the point where they expressed an interest in an expanded

storage agreement to secure additional space at the Port.

Soybean volume was also down slightly mainly due to the cool and wet summer. However, the actual

volume was higher than expected by 10,000 MT to 15,000 MT. At one point in time, the Port had over

82,000 MT of soybeans in stores waiting for the arrival of several vessels. By October 18th it was

necessary to begin filling one of the Annex bins with soybeans in order to keep receiving. The vessel

delays also required that the reduction of the number of available delivery appointments during the

week of Nov. 14 to 17. The following week (Nov 20 to 24), the Port only accepted shipments of dry

corn as these loads could be received at the Annex.

11

Capital Projects

The Port of Johnstown management committee approved a total of twenty-one capital projects in 2017

totaling $3,107,800. As shown in the table below, thirteen projects were completed with a positive

variance of $198,271. Four projects are in progress, two were delayed til 2018 and the remaining two

projects were removed (explanations are listed in the table below).

Since 2010, the port has invested over 55 million dollars in both the infrastructure of the facility and

expansion projects.

Completed Projects in 2017 • Constructed two new 5,000 MT grain bins at the Annex. This increases the storage space of the

elevator and opens new possibilities for receiving grain and new products such as non-GMO

corn without reducing the storage capacity of regular corn.

• Installation of an automatic grain temperature monitoring system for all eight bins at the

Annex.

12

• Additional safety railings were installed on the roof of the main elevator.

• Roof replacement on the east end of the main elevator.

• Replacement of two faulty aerators in the main building.

• Rail repairs that included replacement of the rail on the west side of the receiving area,

replacement of 100 ties and the replacement of a crossing on Windmill Lane.

• The purchase of an oil boom for port slips alongside elevator.

• Access holes in old shipping bins to enable easier and safer access to these bins.

• Replacement of various sections of spouting in the main building.

• New control system for the grain dryer.

• An evaluation of the dust system in the main building.

• Installation of a filtration and pressure system for potable water

• Soft starts for two lofters and nine conveyors.

Maintenance – Electrical and Mechanical repairs

One of the new initiative that was undertaken in 2017 was enrolling into Hydro One’s “Class A”

Industrial Conservation Initiative. This program has saved the Port thousands of dollars in electrical

costs by reducing the global adjustment portion of our hydro bill. We have also acquired the services

of NRG Peaks Corp. to give us monthly, day ahead, same day and in day alerts, as to when a

provincial demand peak is likely to occur. These alerts will help us manage our electrical consumption

to avoid, if possible, contributing to the 5 highest provincial demand peaks of the year. Avoiding these

5 coincident peaks is where the savings are achieved.

An abbreviated summary of the activities in the maintenance department this year is shown below.

Electrical Area summary

• Installed new soft starts for the marine lofters. This will reduce the stress on the motor and belt

of each lofter during start-up. In addition, it provided a method of monitoring the electrical

load on the lofter during vessel loading to ensure the efficiency was maximized.

• Connected the thermocouples in the main building bins to the automated temperature

monitoring system.

• Serviced the dust system to improve its operation.

• Annual maintenance of dust system.

• Serviced the boiler system to improve the efficiency of its operation.

• Continued with the replacement of temperature cables that are used to monitor quality in grain

bins.

• Preventative maintenance of grain dryer.

• Installed (2) 4500 gph sump pumps in the substation basement. These were required this year

due to the high level of the river.

• Replaced 3 H.P. motor on dryer discharge drag conveyor. This motor had not failed but the

bearings were beginning to give audible indication of wear. The motor that was installed was

premium efficiency type.

• Install proximity sensors of trippers 5, 6 and 7 on springs, to prevent sensors from being

destroyed by misplaced bin spouts.

• Replaced heat detector that had failed and caused a false fire alarm.

13

Mechanical Area summary

• Annual maintenance and servicing of the equipment in the grain elevator.

• Work continued on replacing old gear boxes as part of preventative maintenance plan.

• Replaced and repaired spouting throughout the building.

• Annual preventative maintenance on Annex equipment.

• Repair work on marine loading spouts including broken pins, seized rollers, worn out spouting

and damaged cables.

• Inspection of lofters in the building and replacement of damaged buckets.

• Overhaul #6 receiving pit drag conveyor. This includes installing a new motor and drive

pulley, new liner in the conveyor, new conveyor chain and paddles. The main drive pulley was

changed to a different size to increase the speed of this conveyor by approximately 9%.

• Made repairs to #7 scale tank. One of the angle irons that the scale is comprised of had cracked

and had to be re-enforced with steel plate. At the same time adjustments were made to #7

garner gate to prevent garner leakage.

• Replaced damaged riverfront ship fender.

• Replaced “Torque Tamer” clutches of crosscut samplers 1 and 4.

14

Health and Safety / Training / Environment

Health and Safety continues to be a priority at the port with consultant John McGeough from

Prevention and Regulatory Solutions completing valuable training in the following areas:

• Safety Committee Procedures and Function

• WHMIS

• Port H&S rules and Port Security

• Violence and Harassment

• Control of Noise Exposure

• Respirator safety

• Respirator Fit testing

• Confined Space Rescue training

• Skid Steer operation

• Aerial Lift Platform training

• Chainsaw training

• Fire Extinguisher training

Mr. McGeough also supported other areas of the business including environmental compliance. Below is a

summary of the health and safety program accomplishments for the 2017 year that were assisted by Prevention

and Regulatory Solutions Ltd.

Management Support

• Met with Operations Manager regularly to identify short and longer-term areas of program development

and training.

• Updated the hazard prevention program (HPP) for 2017, including the detailed risk assessment,

implementation plan and review with safety committee.

• Updated and reissued the main health and safety policy.

• Reviewed the full violence prevention and sexual harassment programs, including risk assessment,

policies, prevention and notification procedures, and safety committee consultation. Conducted training

for all available personnel.

• Reviewed and updated substance use policy to clarify different types of substances covered and clarify

position on addiction. Conducted training for all available personnel.

General H&S Support

• Reviewed and updated the safety committee program including procedure and training slides. The scope

of training was expanded to include recent changes to legislation, workplace inspections, and incident

investigations. Training in new program completed.

• Arranged for chainsaw training for 2 employees.

• Conducted annual WHMIS training, including both 1988 and 2015 systems.

15

• Reviewed and updated H&S rules and personal protective equipment policy. Conducted training sessions

for all available personnel.

• Reviewed and updated noise exposure policy and training program, and trained all available personnel.

• Reviewed and updated the visitor safety rules document.

• Eliminated or updated/replaced 9 redundant or obsolete 2005-era documents.

• Delivered training for returning casual employees. Subjects included H&S rules, noise exposure, violence

and harassment, WHMIS, and port security.

• Wrote draft ergonomics policy and circulated for input.

Emergency Preparedness and Fumigation

• Reviewed and updated the fumigation procedure, fumigation site plans, and internal permit forms to

include recent Ministry permit requirements and other pesticides used at the Port. Trained all fumigators

in updated documents.

• Arranged for fire extinguisher training by another training provider.

• Conducted respirator fit testing for all available personnel.

• Reviewed and updated the emergency contract list, part of the emergency action plan.

Confined Space Entry (CSE)

• Reviewed and updated the CSE procedure.

• Arranged for hands-on CSE rescue training by Multitrek (Ottawa). Arranged customized training

exercises to simulate the types of rescue scenarios specified in Port rescue plans. Provided a follow-up

report of recommendations following the rescue training.

2017 Health and Safety Metrics

• Safety committee meetings 12 regular, 3 special

• Workplace Inspections: 12

• Incident or safety investigations: 13

• Complaints: 0

• Work refusals: 0

• Accidents resulting in medical aid only: 3

• Accidents resulting in lost work days: 1

• Lost work days due to accidents: 1

Environmental Support

• Conducted site inspections and met with personnel as part of an internal gap assessment for compliance

with environmental air and water permits. Discussed findings and action plan with General Manager.

• Updated salt water operations manual specified in the water environmental permits. Reorganized manual

contents with current information and issued to General Manager.

• Conducted a training session to personnel responsible for the salt storage operations manual.

16

FINANCE REPORT

The Port of Johnstown, a division of the Township of Edwardsburgh Cardinal, has completed another

very successful year. As detailed in the information below, we have finished 2017 with the 2nd highest

surplus since the township acquired the port.

Although we experienced a 3.5% decrease in revenues as compared to 2016, this was made up with a

9% decrease in expenses, resulting in an increase surplus of 8.3% over 2016.

.

20

2017 – GM Year End Summary

The Port of Johnstown finished 2017 with record setting cargo throughput in salt resulting in an

increase in Harbour Services revenues. While the grain throughput was lower compared to past years,

the overall picture remains bright with new Non GMO corn being stored and processed through the

grain elevator. As well, the port was happy to receive new break bulk cargo in the way of steel beams

for the construction business. Several major projects were completed under budget and on time,

making this another extremely busy year.

Once again, our staff rose to the challenge including a two week period where we loaded 5 vessels

while trucks continued to bring product into the port. This involves a lot of planning and coordination

in order to keep the product moving while providing optimal service to our customers. Our quality

results continue to improve. This is the result of a tremendous amount of work that is involved in

keeping the grain elevator clean and safe to work in.

We continue to receive excellent feedback from our customers on the changes that have been made at

the port and this is further demonstrated by the same customers returning to the port year after year.

We owe a lot of our success to our loyal customers who continue to utilize our facility and provide us

with feedback so we can become better at what we do.

The township’s community port continues to hold their annual Port Day event. In 2017 this attracted

1,000 people while the vessel tours continue to be a hit among the public attracting over 1500 people.

We were happy to have our new neighbors “Giant Tiger” take part in our event as well as several grain

brokers and our stevedore Logistec/Rideau Bulk. This year’s port day event will be held Saturday June

16, 2018.

The POJ staff were also busy providing tours to local grain groups as well as providing tours as prize

packages to support local fund-raising events. These tours and events like port day also help to educate

the public on this thriving enterprise located right here in their community.

Customer service, health and safety, and performance management will be our main focus in 2018 as

we continually look at making improvements on the way we do business.

This year the port also welcomed two additional public members, Joe Hendriks and Frank McAuley,

who have joined the management team and have already made an impact to the port. I would also like

to convey our appreciation to the other members of the Port Management Committee, for their

continued faith in their staff and governess of the business.

In closing, I would once more like to recognize the efforts of our staff and look forward to another

great year in 2018!

Robert Dalley

General Manager

Port of Johnstown

Genera! Managers Report—January 24, 2018

Finances— Month Ending December 31, 2017

Revenues: The Port completed the month of December $186k over budget and $115k higher than

December of 2016. Storage revenue is slightly lower than 2016 due to higher thru put compared to

December 2016.

Expenses: The Port finished the month with expenses under budget by $257k. This is a direct result of

decreased spending in outside services, supplies and electrical, also a direct result in only a 62k value of loss

of grain compared to 303K in 2016.

Surplus/Deficit: The Port finished the month exceeding budget by $443k and higher than last year by $381k.

Year to date the port's surplus is now $2,651,403, which exceeded year end budget by $701k.

Forecast: The Port is estimating an average January based on a solid start with storage for the New Year.

Non-GMO corn is also on schedule to receive and also ship out in the month of January.

The port has completed the 2017 transfers to the township in the amount of $846,340 ($758,340 + $88,000)

Actuals/Budget/Previous Year

Month EndJg December 31, 2017

Dec.2017 Actual Dec.2017 Budget Dec. 2016 Actual Revenue $1,281,022 $ 1,095,000 $ 1,166,139 Expenses - $ 592,840 $ 850,000 $ 859,339 Surplus $ 688,182 $ 245,000 $ 306,800

Year To Date - December31, 2017

YTO 2017 Actual YTD 2017 Budget YTD 2016 Actual Revenue $ 7,434,027 $ 7,330,000 $ 7,706,822 Expenses $ 4,782,623 $ 5,380,000 $ 5,258,060 Surplus $ 2,651403 $ 1.950,000 $ 2,448,762

Receivables

The port's receivables are in good shape with most outstanding invoices less than 30 days. Cash on Hand: $2,576,771

Accounts Receivable: $1,633,328

Accounts payable: $924,555

Business Report

Staff is working on budgets - first draft will be brought to Feb. meeting. (discuss process)

Preparing RFQ for office renovations.

Attending Marine Club event on Jan. 19 th, 2018— networked with stevedore and shipping companies and

discussed potential wind energy projects for the port.

Staff is working on deficiencies with fire alarm and we are conducting an engineering gap analysis to

determine budgeted cost to repair/replace system.

On Jan. 151h, our server crashed and was down 1.5 days. We are replacing server and cloning hard drive to

limit down time ($3000). The server was 8 years old. We will begin replacing every S years.

Electrical Savings (Moving to Class A Program) Month GA Class A GA Class B Savings 1 July 2017 to Dec 2017 1 $44,282 $166,283 $122çjj

*Our 8 month peak demand average is 11693 kw, which is above the 1000 kw minimum required to keep us qualified for the Industrial Conservation Initiative program

GM Report Page 1

PORT OFJOHNSTOWN - YEAR TO DATE REPORT Month Ending: December 31/17

GRAIN TERMINAL REPORT

ELEVATOR TRAFFIC INWARD OUTWARD TOTAL PREVIOUS YEAR SHIP 25,789 174,628 200,416 260,929 RAIL 5,394 163 5,557 17,213

TRUCK 274,386 141,408 415,793 506,097 MILL - 2,105 2,105 1,843

TOTAL 305,568 318,304 623,872 786,082

TOTAL INVENTORY AT ELEVATOR (TONNES) 7 93,005 105,741

HARBOUR TERMINAL REPORT

WHARF TRAFFIC INWARD OUTWARD TOTAL PREVIOUS YEAR

GRAIN OVERSEAS - - DOMESTIC 25,789 174,628 200,416 260,929

SALT RAIL - - SHIP 574,047 - 574,047 454,880

AGGREGATE LIQUID BULK

- - 8,532 - 8,5321 8,893

TOTAL 608,368 174,628 782,996 724,702 PROJECT CARGO CABLE 385 385 1,432

BREAKBULK Steel 4,673 4,673

SHIPS AT BERTH

MISC UNLOADING LOADING TOTAL PREVIOUS YEAR FOREIGN 5 5 10 8

DOMESTIC 8 26 9 43 38 TOTAL 8 31 14 53 46

LABOUR REPORT

1 CATEGORY I

_2URRENT YEAR j PREVIOUS YEAR MONTH YEAR MONTH YEAR

LABOUR HOURS ( OPER.) J _

3,768 39,688 3,422 41,933

QUALITY REPORT ii 2 131 4 Islet

I CGCRATING CURRENTYR AA.A AAA IAAI A ACIAAI

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HEALTH AND SAFETY CURRENT I YTD] Incidents or Safety Invest

Workplace Inspections

jWSIB JReportables

# of Ace. Result lin Lost days

Lost Work Days From Accidents

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the port of johnstown management committee · 2018-08-17 · the port of johnstown management...

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