What RCH Water Supply Corporation Isn’t Telling YOU!

AND it is not just Water Restrictions:

RCH WSC DID NOT Publish on the August 2, 2023 Board Agenda the AQUA TEXAS AGREEMENT

• View Page 13 David Naylor signed the agreement on July 19, 2023
• View Page 2 II. BASIC SERVICES
• View Page 4 the Financial And Accounting Service

We personally obtained this information through an open records request after discussing multiple issues with TCEQ Regional Environmental Investigator on August 16, 2023.

Aqua SHALL NOT BE RESPONSIBLE FOR RCH’S CUSTOMER BILLING…

TCEQ RESOLVED AN ENFORCEMENT ACTION

II. ALLEGATION

During an investigation conducted on March 12, 2021, an investigator documented that Respondent failed to ensure additional protection was provided at all residences or establishments where an actual or potential contamination hazard exists in the form of an air gap or backflow prevention assembly (“BPA”), as identified in 30 TEX. ADMIN. CODE § 290.47(f), in violation of 30 TEX. ADMIN. CODE § 290.44(h)(1)(A). Specifically, Respondent did not ensure that additional protection was provided at connections served by on-site sewage facilities where irrigation systems were installed.

III. DENIALS

Respondent generally denies the Allegation in Section II.

• Board President signed the document on May 3, 2023. No mention of this violation and/or settlement during any maintenance reports.

ATTORNEY CONFIRMS NO AUDITS AND NO IRS FILING

TCEQ was not aware that RCH was on Stage 5 until Tuesday, August 15, 2023.

TCEQ was not aware that RCH was on Stage 5 until Tuesday, August 15, 2023.

Requirements for termination Stage 5 of the Plan may be rescinded when all of the conditions listed as triggering events have ceased to exist for a period of 2 consecutive days.

2023 Water Consumption Report

Daily we update an Excel spreadsheet with the previous gallons per day. Numbers are provided by the City of Rockwall Water Department.

RCH WSC DENIED A METER IN HIGH POINT LAKE ESTATES

McBride was told by a RCH representative that they will not give him access to potable water. He shared his perspective of the egregious mismanagement and negligence by a utility company.

Customer concerns about lump sum billing.

There is uncertainty of the billing process with the RCH Water Supply Corporation. There are regulatory agencies to file complaints with such as the Public Utility Commission.

Aqua Texas representative identified Disabled Veteran as Super Water User based off of a Social Media Post.

An Aqua Texas representative came to William Blanchette’s door to notify him that he placed a restrictor on his meter because he was identified as a super water user and later shared that it was based off a social media post where he expressed his opinion of the current water restrictions and Mr. Naylor the current board president latest actions. Prior to this incident Mr. Blanchette notified Mr. David Naylor when he purchased his home that he has not received his first bill since he moved in the first quarter. Mr. Blanchette expressed appreciation of the City of McLendon-Chisholm’s Town Hall meeting that allowed anyone to ask questions. He is concerned that if this happened to him that it could happen to anyone else that Aqua Texas and/or RCH WSC has not followed protocol from actually reading the meters with factual information to confirm that one is a super user.

RCH and Aqua Press Release.

The City of McLendon-Chisholm’s water supply is necessary for the public health and safety of this community and thus the City of McLendon-Chisholm has a vested interest in ensuring that the RCH Water Supply Corporation and its water system are properly operated and maintained, and that the acquisition of the RCH assets by another entity is in the best interest of the citizens of this City and the wider community. The sale or transfer of a water system is not something that should be considered by the RCH Board of Directors or customers without all of the facts on the table. There are several facts about the transfer of RCH’s water system assets that are important to know.

1. RCH Water Supply Corporation is a nonprofit water supply corporation operating under Chapter 13, 49, 67 of the Texas Water Code, and Chapter 22 of the Texas Business Organization Code. Any transfer of the system must comply with the requirements in those laws.
2. Any transfer of assets or customers to another entity by RCH must be APPROVED by the Public Utility Commission before the transfer can happen (Tex. Water Code 13.301).
3. If RCH proposes to transfer all of its assets to an entity, two thirds of the members of RCH MUST VOTE to approve any resolution adopted by the board recommending the transfer of the system (Tex. Bus. Org. Code 22.164, 22.252).
4. Any money paid to RCH as a result of sale of the system must stay in RCH. State law PROHIBITS the payment of dividends to members of non profit entities (Tex. Bus. Org. Code 22.053).
5. Any property held by RCH at the time it winds up its business must be distributed only for tax exempt and public purposes to the state or a political subdivision of the state. The district court in Rockwall County is required to distribute the property in a manner that will best accomplish the general purpose for which RCH was organized (Tex. Bus. Org. Code 22.034).

Transferring the RCH assets and operations to the City makes sense and will be good for the customers of RCH. The City has a working relationship with North Texas Municipal Water District and would work towards a wholesale agreement with NTMWD to address the water supply needs to the system. The City already has a relationship with Inframark, which operates the City’s wastewater system, and provides billing services for the City. Customer bills could be consolidated into one bill–a convenience for customers. As a municipality, the City has access to tax-exempt financing, which makes financing improvements less costly. As customers and citizens of the City, you know the City, and have access to those who would be running the system – unlike other non local utilities. These are just a few of the benefits of transferring the RCH assets and operations to the City.

Hang in there McLendon-Chisholm!

One must have fortitude to break down these walls. Our community should be coming together about this precious resource to be managed administratively better and to have necessary improvements in an orderly manner. Please feel free to comment below and share this article.