McCloud meeting marks the end of the Nestle era

With Nestlé’s announcement to withdraw its water bottling facility plans only four days old and a public hearing on the issue of raising district water service rates, it was no surprise that last Monday’s McCloud directors meeting was packed.

With a public hearing for protest against a proposed water rate increase scheduled first, many residents presented their concerns on the issue.
Kicking off the director’s comments, Anne Simons began by noting that, “the increase was not arbitrary,” reiterating that the board felt that they had exhausted all other options and, under the circumstances, was making the best decision possible under the circumstances.

Some members of the public shared their opposing view of the situation, including one local business owner who noted, “People in this county are hurting all over,” emphasizing that, in his opinion, given the current sate of the economy, it was not the right time to be considering a rate hike. “This smacks of the Boston Tea party...taxation without representation,” he continued, drawing a burst of applause for his comment.

After hearing other comments by disgruntled citizens, many who wondered whether the district could borrow from other funds to offset the need for an increase, board members responded.

Director Dickenson did not hold back his strong feeling on what he had heard. “I’m offended by some of the comments (I have heard this evening),” he began. “To assume that we are secretly trying to take your money away is absolutely ludicrous,” he continued. “If you have the answers...great. Bring them in.”

Also chiming in was Director Kleinhans. “I’m sorry how this impacts people, but we do not have another answer,” he said.

The district received 28 letters of protest, well below the 51% of households required to overturn the board’s recommended increase. President Schoenstein noted that the number of letters required would have had to be around 350.

The board made the rate increase official, passing a motion 4-1 to establish service rates for the months of October through June in the current 2009/10 fiscal year, with water service at $31.41 per HE (household equivalent) per month, sewer service at $35.85 per HE per month and refuse service at $21.20 per HE per month. Voting against the proposed service rates was Director Stewart.

Nestle Leaves McCloud

Monday’s meeting, in some respects, marked the end of an era, as many citizens took the opportunity to comment on Nestle’s decision to abandon their bottling plant plans.

The announcement, which was made last Thursday, was a cause for celebration for some and mourning for others. Many, however, spoke of the need for the town of McCloud to work towards reconciliation and move on from this highly divisive issue.

“I’m disappointed that this did not work out. It would have been a good revenue stream for the community,” said Director Tim Dickenson, expressing a sentiment shared by many in the room.

“I’m sorry to see them go…I always though this could benefit the town. I want to thank Nestlé for considering this venture,” said Director Kleinhans. Kleinhans was one of the many present that thanked Nestlé and Project Manager Dave Palais for their time and consideration.

However, Director Brian Stewart’s comments veered away from remorse. “It appears that Nestle is making a good decision for their stockholder,” he said.

Speaking on behalf of Nestlé, Director of Natural Resources Brenden O’Rourke said that the company’s plans have changed for a variety of reason, referencing the current economy and the company’s recent development of a new facility in Sacramento.
“Much has changed for Nestle,” he said.

O’Rourke also noted that, despite the exodus, the company plans on continuing its two year Squaw Creek watershed study, much to the applause of all in attendance.

Also speaking for Nestlé, was project manager Dave Palais, who has spent the past six years working to make it happen. Palais thanked the board for their diligence and patience. “I met a lot of good friends (in McCloud),” he said, later adding that if it were not for the project, he would have never moved to Redding and met his wife.

Many citizens present lamented the loss of Nestle. “The only thing we have to sell is water!” said longtime project proponent Dorris Dragseth. “Now when (a potential water bottling company) sees the history, they are going to run.”

On the other side of the issue was Bill Korbel. “I believe our mountain water is a gift,” he said, expressing his belief that such a resource should not be squandered. To much laughter, Korbel wondered aloud whether Nestlé might, as a gesture of good will, consider donating the mill site back to the town.

Speaking on behalf of California Trout, Meadow Barr expressed thanks to Nestlé for their decision to continue the Squaw Creek studies.

She also reaffirmed Cal Trout’s commitment to developing their understanding of local hydrology in an effort to further understand how project of this nature could affect the region.

“I’m both grateful and appreciative of Nestle’s decision,” said McCloud’s Watershed Council director Debra Anderson. “I think this is a time for McCloud to put aside their disagreements and move forward.”

Closing the comment period on the issue was Woody Lowe. Lowe was one of several speaking that evening who had a prepared speech in hand.

“What a long journey we’ve had from innocence to maturity,” said Lowe “(Nestle) has done the right thing… the challenge is to move on wisely.”