Two Sacramento city councilmembers are raising concerns and voicing skepticism about the Nestle company’s plan to set up a plant to bottle and sell water from the American River.

Councilmembers Kevin McCarty and Lauren Hammond are advocating for the City Council to get involved in the city’s negotiations with Nestle, which so far have been managed by city staffers.

Nestle Waters North America’s plan to set up shop in Sacramento early next year is drawing attention. A group of citizens created "Save Our Water Sacramento" to oppose Nestle’s plans. The group is calling for the City Council to set a moratorium on beverage bottling plants in Sacramento.

The company noted in a statement that it plans to start operations by bottling 30 million gallons of Sacramento water annually at a Florin/Fruitridge industrial park site. Nestle would buy the water from the city on a yearly basis. But a city staff memo dated Sept. 14 points out a different figure — it says the Nestle plant would use 81 million gallons, or 250-acre-feet of water annually.

McCarty said he is concerned about the project’s environmental impacts and said the proposal sounds like a “sweetheart deal.” He criticized city staff for giving him a “weak response” on the project’s details. He said he’s now going to engage in “further exploration to get to the bottom of this,” adding that he wants to have a thoughtful discussion on whether the project makes sense.

Hammond has also entered the debate, saying that city staffers need to look to the City Council for public policy direction before entering into an agreement with Nestle.

Hammond and McCarty are running against each other for Assemblyman Dave Jones’ seat in 2010.

A Sept. 14 memo from Utilities Department Director Marty Hanneman notes that Nestle’s planned use of 81 million gallons per year is “less than .2 percent of the city’s current demands.” Hanneman said the project does not fall under California Environmental Quality Act requirements.

Assistant City Manager John Dangberg responded to McCarty's criticism, saying that Nestle is not obtaining special water rates from the city. The company would pay the same water rates as any other water user in Sacramento, he said. The company is also going through the permitting process with the same requirements that other entities face, and is not receiving special incentives, Dangberg noted.

The company's proposal meets conditions under city requirements that allow it to apply for a building permit without going through the City Council or the Planning Commission, he said.

Meanwhile, Chris Kemp, Sacramento Plant Manager for Nestle Waters North America, said the company is taking all legally required steps in setting up its plant.

“We look forward to working with the members of the city council to provide them with information about our company and operations as we become an employer and neighbor in the Sacramento community,” Kemp said. "We are complying fully with the permitting requirements of the appropriate city, state and federal governmental authorities.”

Kemp said the public is invited to ask questions about the project at the “Ask Us” section on its website.

Kathleen Haley is a staff reporter for The Sacramento Press. Staff Reporter Suzanne Hurt contributed to this report.