RANCHO MURIETA, CA (MPG) - Accomplishments on two different fronts were highlighted at the Rancho Murieta Community Services District meeting on Dec. 18.

The first was the conclusion of a petition drive demanding a moratorium on future development that was conducted by Save Our Lakes & Open Spaces (SOLOS). Initiated in August, the drive secured 2,025 signatures from residents.

The second was a report from General Manager Mimi Morris, who detailed 38 accomplishments by district staff over the past year “as part of the stabilization and rebuilding of the organization’s systems, staff and procedures.”

Morris also provided an update on a settlement with Sacramento County regarding district violations involving chlorine gas. Additionally, the board addressed a wide range of topics during the four-hour meeting.

Water Moratorium

After introducing herself as the president of SOLOS, Cheryl McElhany said that she was presenting 2,025 petitions demanding a moratorium on future development and read a letter outlining the reasons behind the request.

McElhany explained that the petition was based on findings documented in the draft of the CSD Integrated Water Master Plan, which indicates the community will face critical water supply issues and insufficient storage capacity in the coming years. However, she argued that the options listed in the IWMP “are not viable solutions.”

Another issue, McElhany noted, is that the CSD will soon reach the threshold of ratepayers requiring a designation as an Urban Water District. This would require the board to develop an emergency backup plan as mandated by the State Water Resources Board.

“Before any sort of water augmentation or consideration is considered for the current CSD ratepayers, a moratorium on future development must be implemented,” she said.

McElhany also referred to the August board meeting, during which the board approved the issuance of will-call letters (water hookups) for 240 lots in the already approved developments of Residences East, Riverview and the Retreats. She said that the 3:2 board approval dismayed many residents and that it jeopardized a reliable water supply to existing residents.

(Director Randy Jenco made the motion at the August meeting to approve the issuance of the will-serve letters, reasoning that opposing them would be futile. He argued that the district would face a lawsuit within a week and ultimately be compelled to provide water, resulting in significant litigation costs that would burden both the district and its ratepayers. District Counsel Patrick Enright clarified that providing water to the Rancho North subdivision was a separate issue, as it had not yet been approved by the county.)

McElhany urged the board to declare a water emergency under the applicable state code.

“It is the appropriate action to protect what precious water we have and limit the imminent threat until reliable options can be developed,” she said. “We also ask that forward movement on the IWMP be tabled until this moratorium request is formally considered by the board.”

After reading her letter, McElhany explained that all addresses on the petitions had been verified to confirm that the signers were residents. She added that SOLOS had also copied the petitions onto a flash drive to assist District Secretary Amelia Wilder.

Board President Stephen Booth told McElhany that the board couldn’t take any action because it was listed as a discussion item on the agenda.

“But it is something we need to consider whether we put it on committee or board meetings in the future,” he said.

Booth and Director Linda Butler voted against issuing the will-call letters at the August meeting. Following the meeting, John Merchant, vice president of SOLOS, initiated the petition drive. Merchant has since been elected to the CSD board.

SOLOS is a community action group that was formed in 2015 to advocate for responsible development after Rancho Murieta Properties filed an application with the county to build the Rancho North subdivision, which still hasn’t been approved. SOLOS has more than 1,400 members. 

District’s Accomplishments

During her general manager’s report, Morris noted that Booth and Butler suggested at the last Communications Committee meeting that the district should do a better job of highlighting its accomplishments. In response, she explained, she was including a list of the district’s major achievements from the past year along with a draft strategic plan.

“It’s probably no surprise that the organization was mismanaged for years,” she said. “This led to the chronic and extensive turnover in the accounting staff between 2019 and 2023, which in turn led to an almost complete loss of institutional knowledge in a variety of areas including how to use financial accounting software and how to maintain related financial journals and ledgers.”

She added that there were no written policies and procedures in place, nor was there a smooth transition between management teams.

The 38 accomplishments on her list included many highlights. Between August 2023 and November 2024, the district temporarily suspended and later reinstated late fees after resolving billing issues. In November 2023, the district hired a director of finance and administration. By December 2023, the district had reinstituted monthly budget-to-actual reporting. Additionally, from August 2023 to January 2024, the district worked to address outstanding audit issues, ultimately finalizing the 2020/21 audit.

In January 2024, the district recalculated the indirect cost rate to reduce the burden on the security budget. From March to June 2024, the district developed a balanced 2024-25 operational budget that enables the board to direct the property taxes entirely into reserves as recommended by the Grand Jury Report.

Between April and June 2024, the district resolved over 200 faulty meter readings and addressed the corresponding billing issues. From July to December 2024, it corrected errors in the accounting for the fiscal year 2021-22 in preparation for the audit.

Between March and August 2024, the district successfully collected more than $500,000 in overdue connection fees from developers. In November and December 2024, it revised its security program to ensure full security gate and patrol coverage.

Morris said her list didn’t include any of the major operational achievements such as repairs of spontaneous leaks and unexpected breaks in water and sewer lines.

Chlorine Penalties

In another part of her general manager’s report, Morris said she and Operations Manager Eric Houston had met with Sacramento County’s Environmental Management Department (EMD) to negotiate a settlement regarding reporting, training and compliance violations related to the district’s use of chlorine gas, which dated back to 2017.

Morris previously reported to the board that after the EMD notified Interim Operations Manager Travis Bohannon about the violations in June, he immediately contacted a contractor to bring the district records up to date.

Morris said the EMD team was pleased about the district’s plans to move from chlorine gas to sodium hypochlorite at both treatment plants. Although EMD originally planned to levy a $89,000 fine, the team reduced it to $16,000.

“They considered reducing it further due to our contrition and conscientiousness, but felt that due to both the staff costs they incurred in the non-compliance review effort and the severity of the noncompliance, the fine needed to be large enough to send a message to the district,” Morris said

The board approved the settlement with EMD later in the meeting.

In Other Business:

The board approved a $81,190 quote from Domenichelli & Associates to prepare a preliminary engineering design to relocate the water and sewer lines in Murieta Village. The project is expected to last 25 weeks.

Houston made his first presentation about “Water 101,” which is an educational piece he is developing for the district’s website.

The board sent a prior decision to hire an outside expert to review the draft IWMP back to the Improvement Committee to discuss what it should entail.

Morris advised the board that the district will replace a damaged payment box in the RMA parking lot.

The board authorized the Improvements Committee to solicit quotes for a bathometric study of Clementia Reservoir. Prior studies showed that Calero and Chesbro held less water than had been assumed for decades.

Resident Nicole Romeo reported on a serious water issue at her home on Fuente De Paz. Houston said he would report about it at the Jan. 7 Improvements Committee meeting.

Houston provided an update regarding a water supply augmentation fee rate study that is intended to increase the amount developers pay.

The board approved two contracts for Basin 5 off Reynosa Drive, also known as Lost Lake. The first was $10,100 for mechanical harvesting of vegetation and $5,896 for the installation of an additional fountain.

The board’s next regular meeting is at 5 p.m. Wednesday, Jan. 15.