Community & Labour Action

Sacramento tells Nestle: Stop building bottled water plant

Ryan Lillis, Oct. 27, 2009, Sacramento Bee - The city of Sacramento has ordered food giant Nestlé to stop work on construction of a new bottled water plant in south Sacramento while the City Council decides whether to impose new planning requirements on such facilities.

The council is scheduled to vote tonight on whether to require special permits for beverage bottling plants – which means they would have to go through public hearings before the Planning Commission and council.

Stricter environmental regulations could also be placed on the projects if the proposed ordinance is passed, said David Kwong, acting director of the Community Development Department.

"With a pending ordinance, the issue of allowing work to more forward came into question," Kwong said. "This was a prudent measure."

Brendan O'Rourke, a supply chain director for Nestlé, criticized the city for issuing the stop work order without an immediate explanation. The order – which was taped to a warehouse door around 3:45 p.m. Friday – put 80 people out of work, according to Nestlé.

Kwong said city officials contacted Nestlé on Monday to explain the delay.

"We've complied with the rules, we've followed the process and to change that process midstream is very concerning for us and for any business that would come here," O'Rourke said. He said the company has invested more than $3.8 million in the project, which is located in the Florin Fruitridge Industrial Park.

If the council votes against the special permit ordinance, city staff could decide to rescind the stop work order as early as Wednesday, Kwong said. If the ordinance passes, it will be up the council – on the advice of the city attorney whether the changes should apply to the Nestlé plant, where construction began last month, according to Kwong.

Environmental concerns and complaints that the Nestlé plant was approved without broader input led Councilman Kevin McCarty, whose district includes the facility, to call for the council discussion on stricter permits. Councilwoman Lauren Hammond also urged the discussion.

Nestlé completed the first phase of its construction on Oct. 7 and was given the authority to begin a second phase, including plumbing and electrical work, according to building officials. A third phase is pending.

Both Kwong and O'Rourke said Nestlé has complied with its permits.

City officials have said the Nestlé plant could draw an estimated 80 million gallons of water a year – or about two-tenths of a percent of the city's total water consumption.

But Nestlé officials said the amount of water drawn from the city water system will be closer to 30 million gallons next year. Another 20 million gallons of spring water will be trucked to the facility from sources in Placer, El Dorado, Tuolumne and Napa counties.

City staff said the Nestlé plant did not require special permits because it is being built in an area already zoned for industrial use.

There were no public hearings held in connection with the Nestlé plant, which was approved by staff in the Community Development Department.

McCarty said he went to the plant on Monday with a camera and that "major work" appeared to have been completed.

"I have concerns after what we saw in North Natomas that we want to make sure all permits were authorized appropriately, no special treatment was given and the correct permits were in place to do the work," McCarty said.

An investigation is under way into a series of permits that were issued by a development department supervisor to allow for new-home construction in the Natomas flood zone, an apparent violation of a federally mandated building moratorium.

McCarty said he also maintains concerns about the Nestlé plant's environmental impact.

"Water is increasingly valuable, and we want to make sure we're making smart decisions," he said.