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Concerns raised by individuals at Claystone public hearing
Patricia Harcourt
A proposed material change to Claystone Waste Ltd.’s municipally controlled corporation business plan heard concerns from residents at a public hearing April 5.
Nobody spoke in favour of the proposal. However, four persons did speak up against the plan and two others gave comments to the hearing members, composed of Beaver County councillors. The hearing was the county’s to gather opinions prior to the April 19 meeting where the matter would be debated regarding support for the changes.
Questions concerning the change were asked by those speaking regarding the meaning of the proposals, liability and accountability issues, incineration projects being allowed and the corporate business plan going forward.
Questions were posed by several who attended, and explanations provided by officials from Claystone Waste.
The material change was explained as a plan to expand their mandate to allow the company to acquire other companies, enter into joint ventures and/or establish subsidiaries.
Claystone was asked why it feels it necessary to make these changes, and the response was that it was necessary to remain “an industry leader” and to be adaptable to rapid change.
One change has been the marked decline of municipal solid waste coming into the regional landfill due to “changing market conditions.”
Zero waste and emission reductions are the latest trends that will “force the waste management industry to adapt and pursue new waste to energy and other clean technology projects,” was the response.
The result is a need to diversify to develop new revenue sources, which is the point of the “material change” proposal which Claystone says will “promote future growth and ensure the sustainability of municipal dividends, and Claystone operations in the years to come.”
Claystone calls the changes to allow for acquiring other companies, entering into joint ventures and establishing subsidiaries as “prudent approach to pursue opportunities in a manner that minimizes risk and maximizes returns…”
Some examples were given in response to a question asking for more clarity on what this change would accomplish. The examples included acquiring a transportation or hauling company to add to service offerings, partnering on new clean technology projects like waste to energy, and owning or operating waste management facilities outside the Beaver region as a subsidiary.
It was clarified that more trucks owned by Claystone doesn’t necessarily mean more waste coming into the landfill, but that the trucks doing the hauling
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The following Development Application has been APPROVED (except where otherwise noted) by the Development Authority under the provisions of Land Use Bylaw No. 98-801, subject to the right of appeal to the Subdivision and Development Appeal Board.
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Subdivision and Development Appeal Board Beaver County, Box 140 Ryley, Alberta T0B 4A0 (780) 663-3730 would be Claystone owned instead of outside owned trucks.
“It would also mean Claystone could own and operate waste management facilities in other areas of the province which would not affect the Beaver Region except for increasing the dividends for the municipal owners,” stated the response.
To make the material change, at least two of the five shareholding municipalities representing 75% of the company’s voting shares must consent to it. The municipalities with ownership in Claystone are the Towns of Viking and Tofield, the Villages of Holden and Ryley, and Beaver County.
A Claystone Waste subsidiary would have to “adhere to the same constraints as the parent company.”
At the hearing, concern about there being blanket approval given to subsidiaries was expressed. The reply was that subsidiaries have to operate by Claystone’s business plan, under the company’s board of directors and senior management team “in accordance with all existing policies and the corporation’s core documents.”
Another query concerned possible changes to the company’s legal structure in making the changes, but the Claystone response was this was not the case, stating that “…in key matters where a major or material change to the Claystone Waste business plan is to be considered, the decision is not made by the Claystone Waste Board of Directors but is subject to municipal council approval which allows for direct resident input.”
Rejection of waste incineration projects was also on the minds of the public at the meeting. A medical waste facility had been fought by Ryley and county residents a decade ago that had been proposed for the county’s Equity Park. The project did not proceed, and residents were concerned Claystone’s waste to energy projects might include waste incineration.
But Claystone stated it was not including such plans in its future: “Incineration is an outdated technology that Claystone is not interested in pursuing,” causing air pollution and release of harmful chemicals.
The company also rejected the idea of including waste from outside the province stating this is not allowed in the updated business plan.
“There are no changes in the business plan to out of province restrictions,” was the company response.
Reeve Kevin Smook presided over the hearing and had stated that the purpose was for discussion only of the proposal. The matter will be debated by county council at the April 19 regular meeting.
Prior to that, councillors were using that time to consider the comments made at the hearing before coming together to discuss it.
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