How McLendon-Chisholm Was Undermined from Within

In McLendon-Chisholm, a small but growing Texas community, water isn’t just a utility — it’s a battleground. Behind the scenes, a power struggle between the City and RCH Water Supply Corporation (RCH) has simmered for years. But in 2023 and 2024, that tension boiled into open conflict.

At the center of the controversy are RCH President David Naylor and Mayor Bryan McNeal — two influential figures whose behind-the-scenes coordination and legal maneuvers, critics say, obstructed reform efforts, obscured transparency, and ultimately shifted control of the city’s water future to a private entity.

This multi-part exposé outlines how the crisis unfolded, the individuals involved, and why residents deserve to understand the full story.

The McNeal–Naylor Alliance

A Mayor’s Promises, a Water Corporation’s Shield

When Mayor Bryan McNeal took office, he presented himself as a reformer and champion of transparency. In reality, however, he became RCH Water Supply Corporation’s most reliable political shield. Instead of holding the private water supplier accountable, McNeal repeatedly worked behind closed doors to preserve its influence—even coordinating with its legal team in ways that directly undermined the City Council.

McLendon-Chisholm Water Chronicles (2022-2024): View the timeline that breaks down complex developments into a clear, chronological format—highlighting key moments, power shifts, and policy decisions. [View PDF].

Leaked Agendas, Obstructed Oversight

On November 12, 2024, McNeal admitted to leaking the City Council’s September agenda to RCH attorney Jim Bradbury—prior to its official release—specifically at 4:35 pm on September 6, 2024. Bradbury issued a two-page legal letter, also dated September 6, accusing the City of attempting to encumber infrastructure assets and demanding a litigation hold on internal communications.

Council members were blindsided. McNeal’s disclosure was immediately condemned as a deliberate act—one that enhanced RCH’s legal posture while weakening potentially the City’s ability to assert oversight and protect residents’ interests. [Read the Bradbury Letter].

That wasn’t the only instance of overreach. At 10:58 a.m. the same day, McNeal emailed Blackland Water Supply Corporation (WSC) General Manager Scott Muckensturm, declaring that any future meetings on water issues he must be notified—despite lacking any formal authority from the Council. Later that same day, Bradbury’s legal letter was delivered. The timeline suggests McNeal wasn’t simply uninformed—he was actively assisting RCH’s efforts to stonewall the City, at the City’s expense.

Later, McNeal publicly accused Muckensturm, the Sonoma Verde developer, and fellow City officials of “unethical collusion.” But when pressed for evidence, he failed to produce any. A Public Information Request revealed that the referenced emails dated back to early 2023. No documents were shared in a related District Attorney meeting, and RCH’s own lawsuit filings did not include the alleged communications. As one Council member described it: “pure deflection.” [Read PIR emails].

The “September 15 Tirade” and a Pattern of Chaos

McNeal’s pattern of disruption did not begin in 2024. A year earlier, on September 15, 2023, during a leadership meeting, he delivered what would later be dubbed the “September 15, 2023 Tirade.”

According to a two-page conference report, McNeal abruptly stormed out of the meeting, declaring it an “ambush,” threatening to run against the mayor if asked to resign, and making the bizarre remark, “I loved it like cake when you cursed at me.” He falsely alleged that members of the public overheard executive session discussions and misrepresented private text messages as evidence of wrongdoing. [Read the Report Here].

The episode derailed what was intended to be a productive discussion on water planning and instead inflamed tensions across the Council.

What makes this especially troubling is McNeal’s earlier support for the City’s water transition efforts.

On November 9, 2022, McNeal had voted in favor of the due diligence plan to acquire RCH’s water system—a comprehensive 12-page roadmap prepared by Teague Nall & Perkins (TNP). [Read the Plan Here].

Despite endorsing that initiative, McNeal would later undermine the very reforms he once supported.

Smear Campaigns & Power Plays

McNeal’s efforts went beyond obstruction—they turned personal. On June 19, 2024, he issued a formal demand letter on City letterhead—ironically listing the wrong City Hall address—accusing the former Mayor Pro Tem of withholding official materials. However, the accusation quickly unraveled. [Read Mayor McNeal’s Demand Letter].

The response thoroughly debunked McNeal’s claims: all relevant records had either been previously submitted, were already publicly accessible, or remained on the city-issued laptop. The allegations were not only false, but widely viewed as retaliatory—a politically motivated attempt to discredit a former colleague. [Read Former Mayor Pro Tem’s Rebuttal Email].

A Political Alliance Cemented in Personal Gain

McNeal’s partnership with RCH President David Naylor solidified during one of the city’s most vulnerable moments.

In May 2023, after RCH’s licensed water operator resigned and service teetered on collapse, Naylor turned to City representatives and Blackland WSC for help. A verbal operations agreement was quickly put in place to stabilize services. But when Blackland did not submit a formal contract by May 25, 2023, Naylor retaliated.

Instead of supporting the City’s emergency response, McNeal aligned himself with Naylor. He amplified smear campaigns against those who had worked to avert a crisis and positioned himself as the City’s “designee” in unauthorized meetings with RCH, Aqua Texas, FM 550 landowner, etc.—without Council approval.

RCH purchased 40 acres along FM 550 for $3 million—forty times higher than Blackland’s $40,000 offer—with the sole purpose of blocking a proposed pipeline connection to Sonoma Verde’s future development phases. Land records and the deed confirm this transaction.

Notably, this strategic purchase was entirely omitted from RCH’s lawsuit filings—just like the May 2023 verbal agreement and the repeated refusals by Naylor to place critical discussions on the RCH Board’s agenda. The land acquisition, later announced in a website post as an “integrated service hub,” had not appeared on any prior meeting agenda for discussion or approval. [View RCH News].

The lawsuit itself amounted to political theater. No depositions were taken, and discovery was never initiated. The true goal was clear: apply pressure until a more compliant, RCH-aligned City Council was elected. On July 1, 2025—after the new council overturned prior official decisions—the lawsuit was dismissed.

How the New McLendon-Chisholm Council Folded

Between May and June 2025, the newly elected Council majority swiftly reversed key reforms, dismantling the City’s leverage in water negotiations. In less than 60 days, they:

• Abolished the City’s Water Committee;
• Repealed the franchise fee ordinances for RCH WSC, High Point SUD, and Blackland WSC;
• Nullified the 2023 and 2024 asset transfer agreements and associated resolutions;
• Authorized the Mayor and City Manager to negotiate the sale of city-owned infrastructure inside Sonoma Verde;
• Passed a resolution authorizing Mayor McNeal to send a letter to the Public Utility Commission (PUCT) supporting RCH’s acquisition of Phases 1–5 of Sonoma Verde under its Certificate of Convenience and Necessity (CCN).

Most notably, no public notice was given to Sonoma Verde residents prior to sweeping decisions—despite the direct consequences for water rates, infrastructure ownership, potential impact upon home values and future development in their community.

Campaign Contributions and Ethical Concerns

Campaign finance records later showed that McNeal received contributions from RCH President David Naylor and other individuals affiliated with the water corporation. [View McNeals Campaign Records]; [View McNeals Campaign Records]

The revelations raised serious ethical questions: Was the mayor acting in the public’s best interest—or furthering RCH’s agenda?”

Abuse of Power: Fabricated Accusations and Retaliation

McNeal’s tactics escalated further in 2024. According to former Council Member Floyd McLendon Jr., McNeal fabricated an assault allegation during a closed session in October and used his position to retaliate against political adversaries. In an April 2025 press release, McLendon described McNeal’s behavior as “disturbing.”

Around the same time, McNeal ally Shari London publicly posted about another council member’s home being listed for sale—suggesting a coordinated effort to pressure or remove political opponents from the dais.

Obstruction, Deception, and the Cost of Control

Financial Shell Games and Missed Mandates

On April 30, 2025, the IRS issued Determination Letter 948, requiring RCH to file Form 990—an essential step for qualifying for State Infrastructure Bank (SIB) loans. One of the many loans touted by RCH as the key to delivering long-promised infrastructure upgrades.

By mid-June, RCH representatives informed TxDOT coordinators that all necessary easements along Highway 205 had been secured and that bidding for water-line relocation—critical to the highway widening project—would begin within weeks. However, only High Point SUD had actually secured SIB funding—underscoring a stark contrast between RCH’s public assurances and its actual progress.

RCH stating that it was finalizing a 500‑page System Use Agreement (SUA) drafted by engineer Tyler Hendrickson of Velvin & Weeks. But without completed IRS filings or loan approvals, these plans remain speculative. Further casting doubt on the firm’s credibility, Cash SUD terminated its Engineering agreement with Velvin & Weeks on June 23, 2025.

Regulatory Surcharges: Billed But Not Remitted

RCH failed to report its 2023 and 2024 regulatory assessment fees—monthly surcharges of $5.14 labeled “Surcharge: McLendon‑Chisholm conflict.” These charges appeared alongside a vague “Fee” on customer bills, raising compliance concerns under 30 TAC § 12.3. According to Texas regulations, such surcharges—applicable only to water and sewer services—must be remitted to the Texas Commission on Environmental Quality (TCEQ) by January 30 of each year.

These oversights raise critical questions:

• Was the surcharge applied in accordance with state law?
• Were the collected funds ever forwarded to the appropriate regulatory agency?

While definitive answers remain elusive, the ongoing pattern suggests potential fiscal mismanagement that may warrant investigation at the state level.

From Cooperation to Sabotage: The Mayall Betrayal

When Blackland Water Supply Corporation terminated its verbal operations agreement with RCH on June 8, 2023, RCH was left without certified operators, active service contracts, or an operational staff. Rather than work toward a transfer solution with the City, RCH President David Naylor retaliated.

He recruited Robin Mayall—the brother-in-law of Blackland’s General Manager—as an internal operative and who continued to assist RCH by fulfilling meter requests, mowing grass and more. Mayall funneled internal information to RCH and assisted in poaching key Blackland employees: Office Manager Misty Salas Gonzales and her husband, Operation Personnel Edgar Salas.

RCH also targeted Blackland’s contractors and even a past legal referral attorney Jim Bradbury, who did not have a formal relationship with RCH until June 22, 2023. Tyler Hendrickson of Velvin & Weeks—formerly Blackland’s engineer—was brought into the fold as well, prompting Blackland to terminate its contract with the firm entirely.

The betrayal was cemented with a formal offer letter: On October 12, 2023, RCH extended Mayall a contract offering a $170,000 annual salary plus bonuses to serve as their General Manager. The employment contract made one thing clear—loyalty came with a price tag.

The Endgame: Collateral, Control, and a Lawsuit Dropped

On July 1, 2025, RCH issued a press release announcing the dismissal of its lawsuit against the City of McLendon-Chisholm.

The timing was no coincidence. The City Council had repealed ordinances, moved to sell off infrastructure, and issued public endorsements supporting RCH.

But the cost to residents? Potentially monumental.

With Council-backed expansion of its Certificate of Convenience and Necessity (CCN), RCH is now positioned to seek up to $40 million in infrastructure loans. These loans would be secured by customer accounts, water infrastructure, and potentially even city-owned assets.

What RCH Was Really Doing: A Calculated Power Grab

Behind its carefully crafted press releases, RCH Water Supply Corporation was orchestrating a deliberate financial and political maneuver. The public narrative focused on progress and cooperation, but the real strategy was far more calculated.

Their underlying objectives were clear:

• Leverage Sonoma Verde as collateral for State Infrastructure Bank (SIB), CoBank, or USDA loans
• Avoid disclosing their lack of audited financials and IRS Form 990 documentation
• Portray the City as an aggressor to justify new revenue-generating surcharges
• Groom a compliant City Council to codify cooperation through official resolutions and votes

RCH initiated litigation that it likely never intended to pursue, as doing so would have required transparency—discovery, depositions, and the risk of exposing internal deficiencies.

Internal Communications Reveal Hidden Strategy
The 45‑page PDF compiles internal email exchanges—primarily from May 2023—revealing how David Naylor privately worked to undercut the City’s water plans, while publicly claiming transparency. [View Emails].

Instead, they pursued swift political cooperation to secure approvals before the public recognized that RCH lacked both the legal standing and financial qualifications to fulfill its promises.

The result?
The City potentially lost its leverage to pursue alternative water suppliers—effectively forcing all future development within RCH’s service area to go through the private utility, regardless of feasibility, cost, or long-term community benefit.

Sabotage in Plain Sight

While publicly preaching transparency, Mayor Bryan McNeal and RCH President David Naylor were privately coordinating legal threats, manipulating internal communications, and suppressing community input. Their actions consistently targeted those who pushed for reform and accountability.

This was never just about water.
It was about power, revenge, and silencing reformers.

Had litigation proceeded to trial, discovery and depositions would likely have uncovered the truth: it wasn’t the City, its officials, or its partners who failed McLendon-Chisholm—it was RCH, under Naylor’s leadership, with McNeal’s complicity.

Among the most glaring omissions in RCH’s court filings was any mention of developer-funded infrastructure obligations, such as the elevated storage tank intended to support Sonoma Verde. These commitments—critical to continued water service—were nowhere to be found in the legal narrative RCH presented.

The real conspiracy to undermine the City’s duty to protect public health, safety, and welfare was carried out by:

• RCH Water Supply Corporation
• David Naylor, RCH WSC President
• Mayor Bryan McNeal

One question looms large:
Why did David Naylor repeatedly refuse to place the City’s formal requests on the RCH Board agenda throughout 2023?

Despite multiple certified letters and email submissions, Naylor stonewalled. Other water entities at least brought such items forward for discussion.

RCH’s Archived Posts
Roughly six months of RCH’s “News” content has vanished from public view—titles remain, but text is missing. Fortunately, over 25 posts were archived for reference. [View Archive].

Documented Notice Attempts:
These photos show certified mailings sent by the City of McLendon-Chisholm to RCH in 2023—proof that official communications were made. [View Certified Notices].

Smoke, Mirrors, and the Price of Control

A Predicted Resignation, a Prearranged Appointment

On July 10, 2025, Council Member Michael Easter officially resigned from the McLendon-Chisholm City Council. While abrupt, the move surprised few who had followed the inner workings of City Hall—especially those who had read Smoke and Mirrors: Rich Dean’s Council Appointment, which accurately predicted the political maneuvering to follow Easter’s departure.

Less than three weeks later, on July 29, Dennis London was appointed to fill the vacant seat.

The appointment was swift—executed without any public deliberation—reinforcing long-standing concerns that the Council majority was being quietly restructured behind the scenes to ensure full political alignment with Mayor Bryan McNeal and RCH Water Supply Corporation (RCH).

Easter’s exit followed months of mounting tension, as his stance on critical water related issues grew. London’s presence on the dais solidified a majority aligned with McNeal’s leadership and RCH’s interests.

The True Price of Political Compliance

With RCH’s lawsuit against the City dropped, some residents may feel a sense of relief—mistaking legal dismissal for resolution. But behind the scenes, a far more consequential shift occurred.

McLendon-Chisholm didn’t win stability. It appeared to trade away leverage.

Here’s what was truly at stake:

• RCH is now positioned to borrow tens of millions of dollars—effectively encumbering city-owned property as the revenue source for the collateral of these loans.

• If the Certificate of Convenience and Necessity (CCN) amendment is approved by the Public Utility Commission (PUC), RCH’s territorial claim over Sonoma Verde will be formalized, erasing the City’s ability to negotiate future water planning.

• With a newly aligned Council majority, transparency initiatives have quietly unraveled. Residents’ voices are increasingly excluded from decisions that directly impact service, growth, and cost.

And what did the City gain in return?

The lawsuit itself had become a political tool—leveraged to pressure Council decisions, delay reform, and control public perception. While its dismissal presented an illusion of peace, the reality told a far different story.

RCH walked away with exactly what it wanted: formal City endorsement, open pathways to financing, and control over infrastructure it doesn’t fully own.

Sonoma Verde—once the flashpoint for urgency and reform—has now been reduced to a collateral token in a much larger financial maneuver.

Final Thoughts

This article is just one piece of a broader story—one still unfolding. The events and documentation presented raise concerns about governance, transparency, and the public’s right to know. The consequences of inaction are no longer hypothetical—they’re being signed into ordinances, filed in court, and ultimately paid for by residents.

One key question remains unanswered: How was RCH approved for any loans—CoBank or otherwise—in 2024, when the IRS didn’t issue its compliance determination until April 2025? Without current Form 990 filings or confirmation of nonprofit standing at the time, what financial representations were made to secure funding?

If financial institutions approved lending based on incomplete or outdated documentation, that raises serious red flags—not just for regulators, but for the community RCH claims to serve.

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