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Nestlé can legally set up bottling plant, city attorney says

by Kathleen Haley, published on October 27, 2009 at 10:35 PM

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Nestlé has a green light in Sacramento, according to the city attorney’s office.

The Nestlé company’s work to set up a water bottling plant in Sacramento is allowed under the city’s existing laws, City Attorney Eileen Teichert’s office said Tuesday.

It was clear at Tuesday’s City Council meeting that the City Council and city staff are on-board with the Nestlé company’s plans to bottle and sell tens of millions of gallons of Sacramento’s water.

The city had placed a stop-work order on Friday at the plant on Nestlé intends to use for its operations. The city said it wanted to verify whether Nestlé had broken any of the city’s permitting and building laws. In turn, Nestle had said the city’s decision to release a stop-work order may have been illegal.

The stop-work order will now be removed. Some of the work that was being carried out at the site can continue as soon as tomorrow, according to Acting Community Development Director David Kwong. He said the company must still follow a process and timeline with the city to start work on other tasks to retrofit the plant, which is located at 8670 Younger Creek Drive.

The city is stopping the Facilities Permit Program that Nestlé was accepted under. City staff officials told the City Council Tuesday that the permitting program is not up to date with city building codes. Councilman Kevin McCarty indicated in a phone interview after the meeting that there may be significant problems with the program, calling it a "can of worms that's being opened."

During the meeting, Shaina Meiners of Sacramento spoke against Nestlé’s water bottling business. “I am aghast that Nestlé can come in, in this very secretive way,” Meiners said.

Matt Mahood of the Sacramento Metro Chamber was in favor of Nestle’s plant. He noted that the unemployment rate in Sacramento is approaching 12 percent. Rules cannot be changed on companies mid-stream, he said.

Councilwoman Bonnie Pannell said staff did not inform the City Council about early developments with Nestle’s plans to build in Sacramento. She asked, “Why weren’t we briefed?”

The discussion at the City Council meeting changed in light of Teichert’s analysis that Nestlé did not break laws. Councilman Kevin McCarty had proposed an interim urgency ordinance to mandate special permits for beverage bottling plants in the city. The ordinance would enable the Planning Commission or City Council to examine plans to expand or build beverage bottling plants. Nestle’s plans were not considered by the Planning Commission or the City Council; the city’s current rules did not require Nestle to go through that step.

McCarty’s proposal no longer applied to Nestlé after Teichert’s legal opinion.

However, McCarty’s proposal is not dead. Instead, it will consider future water bottling plants. The proposal will be moved to the city’s Law and Legislation Committee.

Along with McCarty’s proposal, the council decided it also wanted Law and Legislation to examine the issue of tiered water rates.

Photo by Anthony Bento.

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

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October 27, 2009 | 11:31 PM
"It was clear at Tuesday’s City Council meeting that the City Council and city staff are on-board with the Nestlé company’s plans to bottle and sell tens of millions of gallons of Sacramento’s water."

The phrase "on-board" is somewhat unclear in this context: Are the Council and staff enthisiastically supportive or are they simply in agreement, perhaps reluctantly, regarding the legality of the plans?

Or somewhere in between those interpretations?
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October 28, 2009 | 8:56 AM
Is their enthusiasm necessary, or just their acceptance? Sometimes, politics is the art of the possible--it isn't necessary to have everyone cheering for your side, just to have a majority willing to go along with it.
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October 29, 2009 | 10:19 AM
In case you missed this piece of news by Cosmo Gavin

"Revolving door: One of the Mayor's top advisors goes to work for Nestle "

" Michelle Smira, one of Kevin Johnson’s top volunteer advisors, is leaving city hall, and going to work as a consultant for Nestle."

"Smira gave her resignation last week, on October 22, ..."

"She told SN&R that she’s giving up her role as an official volunteer advisor to the mayor in order to work on Johnson’s strong mayor initiative. She also said that she was not leaving her City Hall role because of any legal conflict of interest, but because she would not otherwise have time to run her public relations business, MMS Strategies. "

Read it all at:

http://www.newsreview.com/sacramento/snog/blogs


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October 28, 2009 | 12:07 AM
I was there, Tony, and your guess is as good as mine as to how supportive the individual councilmembers are of the project.

Based on what was communicated at the meeting, both verbally and non-verbally, I would say that Vice Mayor Hammond is the only councilmember who objects to the idea of the City selling its public water to be bottled and sold for profit.

Councilmember McCarty, of course, has also expressed concern, and did so again tonight. He said he thought the Council owed it to the public to get the issue right. Councilmember Pannell expressed confusion at why the Council had not been informed by Community Development Department about the project before things progressed so far, and she warned Dept. Manager Kwong not to "do this in my district."

Councilmember Sheedy spoke up only once to question Save Our Water Sacramento's Evan Tucker when he claimed City staff, upon being asked for more information on the project, had told him to speak to Nestle's PR firm.

Councilmembers Tretheway, Cohn, and Waters, and Mayor Johnson were very concerned that the City had stopped work at the plant and they wanted answers from Development Dept. Manager Kwong right away as to how much longer Nestle would have to wait. After Nestle got everything it wanted, Mayor Johnson apologized to them.

I don't recall Councilmember Fong saying anything.
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October 28, 2009 | 11:15 AM
Council Member Fong was very quick to raise his styrofoam cup when a citizen voiced their concern: "I am very disappointed to see how many council members have bottles of water here tonight when bottled water was banned last year for all council meetings."
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TAB
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October 28, 2009 | 2:09 AM
total fatuousness. When the media tells us we are short on water. That we must conserve, cut back usage and the farms need to ration water our city officials give a permit to one of the worlds largest water bottling companies as if was nothing more than a street vendor and to move in and start taking our water that is in limited supply and put into environmentally unfriendly bottles and our fair city fathers selling our water for chump change so Nestles can make a 10,000 percent profit is totally unacceptable by this midtown resident. They at least could have seen the writing on the wall and made a great deal more money to put into the city's coiffers which is so badly needed supposedly.
I know who i will not for in my district on our next elections.
What a shame. What a sham.
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October 28, 2009 | 4:06 AM
"The city had placed a stop-work order on Friday at the plant on Nestlé intends to use for its operations. The city said it wanted to verify whether Nestlé had broken any of the city’s permitting and building laws."

"The city is stopping the Facilities Permit Program that Nestlé was accepted under. City staff officials told the City Council Tuesday that the permitting program is not up to date with city building codes."

"Councilman Kevin McCarty indicated in a phone interview after the meeting that there may be significant problems with the program, calling it a "can of worms that's being opened." "

Sounds like it's a can of worms that's being closed.
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October 28, 2009 | 5:39 AM
The Nestle deal stinks worse than WestSac water!!! The FPP was designed to provide advantage for large firms that have an actual history in doing business with the city -- NOT for some carpetbagger to avail themselves of a backroom deal to steal our water! There needs to be a legal opinion as to whether Nestle even originally qualified for this program, AND accountability measures taken against those who ramrodded the process on their behalf -- including this mayor...

It is abundantly clear that Nestle is a bad actor in its practices to invade the quality water systems of unsuspecting or malevolently managed cities to the detriment of the citizens of such jurisdictions. The films 'FLOW: FOR THE LOVE OF WATER', and last week's 'TAPPED', demonstrate quite clearly just how insidious the corporation's practices are, how deceptive they are, and how their corporate conduct can be RUINOUS of basic community owned resources...

It was absolutely NAUSEATING to watch KJ lecture last night about 'accountability' on the whole Natomas debacle, while at the same time exercising NONE with regard to this role in this affair with Nestle... THIS should be investigated as well as the Natomas permit scandal, and HE HIMSELF should be held ACCOUNTABLE for spearheading this invasion upon Sacramento's fundamental right to clean water!
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October 28, 2009 | 11:21 AM
Don't forget that Mayor Johnson publicly and sincerely apologized TO NESTLE!!
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October 28, 2009 | 7:33 AM
What's wrong with West Sac water? Our town and our water rule and at least our city council doesn't roll over to let scumbags like Nestle muscle their way in to steal our water.
Good look watching those jobs disappear to out of towners!
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October 28, 2009 | 8:50 AM
I intended to cast no aspersions against West Sac government. However, West Sac water is well water, brownish in color, and smells like toxic waste. Despite this, your mayor is an honorable person, whom I have met and socialized with, unlike our mayor, who has a rather lurid past and whose present seems just more of the same...

The 15 - 40 'jobs' claimed by Nestle will not materialize if past practice is any indicator... based on the documentaries referenced in my earlier comment.
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October 28, 2009 | 9:02 AM
I was there. Lauren Hammond was the only council member who understood the ethical problems with bottling and exporting the finite resource of Sacramento's Municipal Water. The city council has conspired with Nestle to deprive Sacramento citizens of their water. That Nestle was allowed to begin construction, without completed permits, without all of the council members being briefed, without an environmental impact report, without input from statewide water boards, and without public review is egregious. A lawsuit against Nestle should be filed immediately.
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October 28, 2009 | 9:27 AM
Thank you, Mayor Johnson, for this clear example of how willing you are to evade laws and screw the people in favor of business. Your version of "accountability" is not anything Sacramento needs MORE of.
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October 28, 2009 | 1:21 PM
Kathleen and Suzanne,

The detailed coverage by SacPress has been excellent. Can you clarify the "can of worms" aspect of the permitting questions? Was that addressed last night or swept under the rug?

It appears the info provided here was correct, the permitting was not completed correctly. The Stop Work order was legal. The process also should not have been applied for under a particular program that is now being ended.

Where is the accountability here? If the process was followed correctly, it's important to know that. Otherwise, this is a huge end run around the public and the process.

Thank you.


"The city had placed a stop-work order on Friday at the plant on Nestlé intends to use for its operations. The city said it wanted to verify whether Nestlé had broken any of the city’s permitting and building laws. In turn, Nestle had said the city’s decision to release a stop-work order may have been illegal.

"The stop-work order will now be removed. Some of the work that was being carried out at the site can continue as soon as tomorrow, according to Acting Community Development Director David Kwong. He said the company must still follow a process and timeline with the city to start work on other tasks to retrofit the plant, which is located at 8670 Younger Creek Drive.

"The city is stopping the Facilities Permit Program that Nestlé was accepted under. City staff officials told the City Council Tuesday that the permitting program is not up to date with city building codes. Councilman Kevin McCarty indicated in a phone interview after the meeting that there may be significant problems with the program, calling it a "can of worms that's being opened." "
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October 28, 2009 | 2:11 PM
Hi Marion, Thanks for your comment. Even though the city is stopping its Facilities Permit Program, the city attorney's office finds that Nestle's work should be legally granfathered in. The Sacramento Press will be following up with more coverage on the program and looking into why McCarty thinks it's a "can of worms." City staff officials, meanwhile, say the program is being closed because it's not up-to-date with city building codes. Thanks, Kathleen
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October 28, 2009 | 2:47 PM
Ah, the magic words "Grandfathered In." And another reason Nestle was in such a rush to get the work done.

Thank you for the reply and SacPress' excellent coverage.
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October 28, 2009 | 2:51 PM
Mr. McCarty no doubt suspects that lawsuits could be aflyin' on both sides of this issue because the FPP process was not intended for firm's like Nestle, which no doubt was why the deal at least initially was carried out in secret. On the Nestle side, because their project was accepted by the city with under the fast-track process, and then stopped due to pending proposals to impose additional CEQA/EIR requirements, which even for a few days no doubt cost at least some quantifiable damages, there may be exposure to the city for its equivocal process. There seem to be plenty causes of action to go around, but this deal's genesis as a backroom deal by our 'strong mayor' wannabe is of prime culpability, in my humble opinion...
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edited on  October 28, 2009 | 3:35 PM
Yes, I agree with all the opponets to Nestle making money with one of our "natural" resources, despite being pro-labor. There has to be a better way to bring jobs here. Thanks to the few Council members who have our best interest at heart and can see the long-term implications of this project.

We already are rationed, and someday will all be billed according to the amount of water we use. It is hard to imagine the future impact of our environment, since no study was done...but doesn't it seem obvious that somewhwere downstream this will be harmful?

Almost as important is the disgust many taxpayers (& future taxpayers) with the process that predeeded Tuesday's meeting. Our democratic system has been undermined again regarding water rights and big contracts without our input. Why is the Mayor even asking for more power when something like this can occur without even the Council being better informed so they can better inform us?

OK, so I object to it politically & environmentally.. But that's not all.

I'm writing to remind us that water in plastic bottles is a convenience we've become too accustomed to. I'm not an expert, but please check out the impact these plastic bottles cause already. I don't want my city to contribute to this mess. Though I occasionally find it to be the only source of water (I can't drink tap water due to an allergic reaction caused by something in it), I've stopped purchasing it & refill glass bottles with filtered water. I realize I'm blessed to even have this choice.

If you have the choice to stop purchasing water in plastic bottles, please do so. Unfortunately when our political system fails us we must act on our own to solve the problem. Let's make it less profitable for Nestle by not purchasing their water. They wouldn't be here if we didn't demand their product.
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October 28, 2009 | 3:33 PM
With regard to the plastic water bottle issue, of which I am not nearly as informed as I'd like to be, water is only one product that is packaged so -- there are MANY products that I purchase in plastic containers that are unavailable in any other form, such as milk or juice... Now, I realize that milk and dairy products aren't all that great for humans and hasn't been packaged in the nice glass half gallon containers it once was for years, and juices are best consumed fresh, but I don't have a cow, and I only have an orange tree in my yard... What are some practical ways of adapting in order to avoid purchasing products in plastic containers??? This might make a great article for someone who has an expertise or significant curiosity and energy about this topic... Thank you for any information you can provide...
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October 28, 2009 | 4:00 PM
Frozen juice concentrate is often cheaper, uses less packaging and is mixed with tap water in your reusable pitcher. Iced tea, tap water plus tea plus your refrigerator. Tap water as a beverage, with or without a Brita pitcher. Instant fruit-drink mixes, from Crystal Light to Gatorade to Kool-Aid. And yeah, when your orange tree is producing, fresh-squeezed orange juice!
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October 28, 2009 | 4:04 PM
bbbbmer: You are so right to bring up the whole plastic package industry. I can't avoid some products either. This is just one I can do something about & it feels good!

What you're really starting discussion on here is the ultimate "can of worms". How can we individually help improve our quality of life and pass it on to further generations? Wow! There's a topic that should get more attention. But I don't want to stray too far from the matter at hand. Is there still a way to stop this project? Will Sacramento ever be able to "just say no" to this like we did when we voted to close a nuclear plant?
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October 28, 2009 | 4:20 PM
Ladies and Gentlemen! I now present to you... YOUR HUMBLE PRESIDENT OF THE METRO CHAMB... oooops, I mean MAYOR OF THE CITY OF SACRAMENTO! Enjoy.

http://www.sacfortourists.com/post/226275672/k-j-cares-more-about-nestle-than-sacramentans
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edited on  October 28, 2009 | 4:40 PM
So it's not a Back Room Deal -- it's a Side Room Deal. It's done in the open, behind closed doors.

It's reduced to another braindead soundbite: "Jobs is good."

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October 28, 2009 | 4:59 PM
By allowing Nestle to move forward, the City Council is complicit with Nestle in taking water from fresh springs in a number of counties and exporting that water to their Sacramento facility to bottle under the Arrowhead label. The counties are: Placer, El Corado, Tuolumne, and Napa Counties - some many hundreds of miles from Sacramento and may not be the only ones for spring water sources they'll use. When it comes to C02 emissions from trucking and global warming, this is not a green business development, , something the Mayor says he wants to promote.
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October 28, 2009 | 5:22 PM
Nestle is a dirty company. The Sacramento City Council should be ashamed. They need to be aware of Nestle's history of child slavery use on the Ivory Coast, see
http://www.babymilkaction.org/ram/ilrf06/childslavery06.html and more specifically related to Sacramento, Nestle's predatory practices wherever they set-up a water plant. See www.stopnestlewaters.org This is a very poor decision whether it creates jobs or not. You just climbed in bed with a devil.
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October 28, 2009 | 7:09 PM
Isn't that plant also downstream from Aerojet?? nice. No toxic sludge there.

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October 28, 2009 | 11:18 PM
It's not clear if the underground plume extends to where the plant is or if Nestle will also be tapping underground aquiifers.
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October 28, 2009 | 7:33 PM
The defense for the City against any claims by Nestle, should the plant be subject to CEQA/EIR and other permit conditions, and hopefully an eventual closure, would be changed circumstances revealed by such an analysis that an environmental impact report would reveal.

This can also be imposed by litigation against Nestle by the Save Our Water group, if the group demonstrates reasonable cause that Nestle violates a material and substantive environmental code, and with a friendly judge who might be inclined to weigh for the community and impose injunctive relief against Nestle while battling this cause out in court, it could mean that Nestle would depart out the same back door they entered into this town...

Let us pray....
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October 28, 2009 | 9:57 PM
Vote with your dollar. Go to the root of the issue and abstain from buying bottled water. If there is no demand, there will be no bottlers. Idealistic, but it's a starting point.
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edited on  October 29, 2009 | 12:40 PM
If you don’t want the water, don’t buy it. The pocket book is what matters to business.
Remember, if we ban water many will just replace it with what is convenient...high fructose corn syrup soft drinks and that isn’t a healthy choice.
I think a more realistic approach is to encourage companies like Nestle to design their products to be more environmentally friendly and design their products to be used, reused, and recycled and when the life their water bottle is over, it can be reclaimed into a harmless substance.
Banning bottled water has become the latest fad and we hear that water bottles are responsible for everything from supporting nasty military juntas to causing every cancer known to mankind. With so much misinformation and hype it is no wonder that consumers are confused. Remember, it is a business and if it isn’t selling…it won’t last.
The bottom line to me is that consumers should have the choice to purchase which ever beverage they desire. However, I believe that in the cases where plastic containers are used, they should be more earth friendly. Containers should be used, reused, recycled and reclaimed.
Banning sounds like a quick fix, before we take that step, let’s look at the unintended consequences which might actually cause worse problems.
Max
http://www.ensobottles.com
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October 29, 2009 | 6:02 PM
It is hard to argue with reusable containers and tap water which is basically the same water Nestle will be using. Get a good filter on your tap. There are even some very economical carbonation systems available. You may even save a few bucks in the long run...
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