This actually sounds like the very reason that we are now required to have auxilliary grounding terminals on the outside of our service panels- so that things like this control panel have a place to run terminate their ground wires.
I'd downplay the instructions to ground to the water main; sure, you're also required for the water main to be one of your 'grounding electrodes,' but I would allow you to connect to anything in the 'grounding network.' What I would not allow is the -far too common- practice of the low voltage guy banging in his little, independent, ground rod. After all, ALL electrodes must be bonded together.