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Board to seek legal review after grand jury scrutiny of water agreement with country club

Rancho Murieta Community Services District Board · July 2, 2026
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Summary

Directors reviewed the 1987 recycled-water agreement that obligates the country club to accept recycled water, discussed potential costs and infrastructure gaps if the club changes ownership or folds, and agreed to send the agreement for legal analysis before responding to a grand jury report and any press coverage.

Rancho Murieta directors spent substantial time July 2 discussing a long-standing recycled-water arrangement with the local country club and how the district should respond to a recent grand jury report and news coverage.

Committee members reviewed the 1987 agreement and an associated master plan that the board said obligates the country club to accept recycled water. "Both of those mandate that the club take that water," a committee member said, summarizing the district's interpretation of the permit and master-plan provisions. Directors debated whether the district can charge the club for water it is required to accept and whether the district bears the cost to manufacture or dispose of recycled water.

The committee member sketched ballpark math for billing scenarios and warned of broader infrastructure constraints: the district has limited purple-pipe distribution for recycled water and would need new pumps, tanks and piping to repurpose or redirect flows — work that could cost millions. Past problems with recycled-water deliveries and associated costs were also referenced.

Board members said they would not make contract or pricing decisions without counsel. Staff agreed to forward the 1987 agreement to the district's attorney (Jennifer) for analysis and to include a discussion item on recycled-water policy in the July board packet. Directors also agreed to post a brief notice on the website acknowledging receipt of the grand jury report and providing a link, noting the district has 90 days to prepare a formal response.

No vote was taken; the board tasked staff with getting legal analysis and preparing a measured public response.