RCH Water Supply Corporation Customers Say It’s a **** Show

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H2O Services is no longer providing billing administration and operations to RCH Water Supply Corporation as of May 3, 2023. During the last board meeting the operator technician Dwight Lindop unceremoniously left a stack of metal clip boards, pump station keys, pager, shook each of the board directors hands and exited the building with a smile on his face.

After the executive session Robin Baley [H2O Services] expressed to the newly elected Board President David Naylor that she needed Lindop to provide her numbers for her work to do the billing and administration. Ms. Baley said that she would help in the transition but she is done.

Thank you for reading to be informed and for taking part of the RCH WSC WATCH. Please consider subscribing for more political posts or visit the POLITICS menu link. Save the date for Wednesday, June 7, 2023 at 4pm for the next RCH WSC Board Meeting will be at McLendon-Chisholm City Hall. Comment below if you plan to be there.

What is H2O Services?

[FIGURE 1] Agreement By and Between H2O Services and RCH Water Supply Corporation Page 1
[FIGURE 2] Agreement By and Between H2O Services and RCH Water Supply Corporation Page 2
“Are financials running through H2O Services or under RCH Water Supply Corporation?” – Adrienne Balkum on September 7, 2022
Photo Credit: Adrienne Balkum | H2O Services Sign at Kingston Court Office Park

On September 7, 2022 during Member Comments I asked the Board questions, “Are financials running through H2O Services or under RCH Water Supply Corporation? [FIGURE 1, Item 4] Where is the protected reserves? When can we expect the annual audit report by a third party? How much is RCH paying for the H2O Services Contract?” [See Video of RCH Board Meeting]

At 2:10pm on January 6, 2023, I inquired of Robin Baley to explain to me what H2O Services is and asked if she was the owner of it? At the Kingston Court Office Park there is signage that has that business name on it. Instead of proudly saying that she is the owner of it. She refused to answer my questions and said that I should ask the RCH Board of Directors.

How did the Board Director(s) Remit Payment for H2O Services?

We still don’t know officially if checks were signed or if a board director transferred money to pay H2O Services. Does Baley do wire transfers between the designated Water Operating bank account and H2O Services account?

A board director did share with me that Robin Baley of H2O Services was allegedly paid $7.50 a meter. At the Annual Meeting on March 29, 2023 it was recorded there are 2,655 connections so that would calculate to $19,912.50 a month.

Apparently, Rutherford Taylor in Greenville [the new auditor] has been having difficulty getting a response from Robin Baley. Which is no surprise to me or anyone that has been watching this onion peel.

Who’s Operating the Pump Station?

Photo Credit: Adrienne Balkum | Utility works by City of Rockwall and Blackland WSC on May 19, 2023

Local management from the City of Rockwall and Blackland Water Supply Corporation has been graciously managing the pump station operations and notifications on a temporary basis. Local utility operators do not have plans to offer a contractual agreement with RCH Water Supply Corporation.

For emergencies, water line breaks or maintenance issues please contact the after hours phone number (325) 266-8366.

How Are Customers Able To Pay Their Water Bill?

Photo Credit: Mark Woodruff City of McLendon-Chisholm Code Enforcement Officer | RCH WSC Payment Lockbox

RCH WSC customers that signed up on the website to receive alerts received a link with a press release, “For payment information please be patient as we are in a transition period. The RCH Water Supply Corporation website will no longer accept online payments. Please consider dropping your payment off at the designated drop off location at McLendon-Chisholm City Hall.”

The week of April 10 – 14, 2023 was the last time that the meters were manually read for the billing due date of May 5, 2023. At this time there is no meter readers to read the residential meters so appropriate billing can’t be conducted at this time.

There has been an increase in volume of RCH WSC customers visiting the City Hall, calls to the City Staff and to local water service corporations to find out the status of their account information. Some just wanted to pay something towards their account because of the fear that they will receive an unusually large bill.

RCH WSC has a few outstanding invoices to remit including the City of Rockwall. There are quite a number of residents who have not received their first billing statement since they have moved in the first quarter of the year. There are many new meters that were installed and not manually read either.

Unfortunately, bills are not being paid and customer accounts are not being collected.

Water Capacity, Improvements and Management
Are NOT Resolved

Even though there is a newly elected RCH WSC president it doesn’t resolve the ultimate problems for this rural water system where we are limited to 2.1 million gallons a day. RCH WSC has a wholesale water agreement that has surpassed the agreement amount with the City of Rockwall.

[FIGURE 3] Amendment added on December 17, 2014 to the RCH Contract

In the longterm, becoming a direct customer with NTMWD it will resolve the limited capacity issues. The immediate needs are billing administration and improvement of the operation management system. The longer the RCH WSC board doesn’t move forward to transfer the assets and customers to the City of McLendon-Chisholm. The more frustrated utility customers will be! Especially, when they are inconvenienced with a possible water shortage and/or they are not able to pay their bill with ease.

February 24, 2023 Letter from the
RCH WSC Board Directors

[FIGURE 4] RCH WSC Letter To Customers in March 2023 Billing

Certified Letters Are On The Way

On May 24, 2023, the McLendon-Chisholm City Council unanimously passed Resolution No. 2023-06 approving an Asset Transfer Agreement, which includes water, utility (both inside and outside the City’s limits) and calling upon the Board of Directors for RCH Water Supply Corporation to authorize and approve the same. [READ PRESS RELEASE.]

The McLendon-Chisholm City Council supports to provide an immediate remedy by initiating the process of allowing the City to negotiate an Interim Management Agreement on behalf of RCH to handle the day-to-day operations, business affairs, repair, maintenance, water meter reading, billing, etc. RCH is currently unable to handle. The RCH Board Directors will still need to host an election with the ballot language to members to vote for or against the transfer agreement.

The Asset Transfer agreement is the same one from September 2022 which was emailed to former RCH WSC President Jackie Pullen on September 28, 2022 from the City Administrator Konrad Hildebrandt. The agreement has been discussed at multiple RCH WSC board meetings and I personally delivered a printed copy on April 5, 2023.

Did you know that the RCH Board approved for the ballots to be drawn up for the members
on April 5, 2023?

[FIGURE 5] Yellow highlight is an excerpt from the April 5, 2023 RCH WSC Board Minutes

CALL TO ACTION:
Let the RCH Water Supply Corporation Board
Know To Support The Transfer
To The City of McLendon-Chisholm

We are 45 days from the one year anniversary of the July 13, 2022 Water Shortage. How much worse does it have to get for the RCH WSC board directors to do some administrative work?

The following is a list of requests that I will be asking the Board to accomplish at this next board meeting.

  1. Request for the RCH WSC Board to motion for the president to sign the Asset Transfer Agreement to the City of McLendon-Chisholm.
  2. Request for the RCH WSC Board to motion for the president to sign the Interim Management Agreement for the City of McLendon-Chisholm to handle the day-to-day operations, business affairs, repair, maintenance, water meter reading, billing, etc on behalf of the RCH Water Supply Corporation.
  3. Request for the RCH WSC Board to order an election date (ex. July 26, 2023) and release the election ballots with the language for or against a transfer of the RCH Water Supply Corporation assets and customers to the City of McLendon-Chisholm.
  4. Request a resolution for bank signatories to be updated to the Secretary/Treasurer Jackie Pullen as per the bylaws (Article 3 on Page 1) to have access to the RCH Water Supply Corporation Bank Accounts.
  5. Request for the board to approve the RCH Water Supply Corporation President David Naylor and Secretary Jackie Pullen to attend future meetings with the City of McLendon-Chisholm representatives as needed.

These agreements will accomplish a public purpose and is in the best interest of all customers inside and outside the city. RCH Water Supply Corporation is hanging on by a thread and this is not sustainable. Clearly we do not want to experience a supply problem again, but things won’t improve unless a transfer happens.

Please show up to the next board director meeting. If you can’t make it please consider sharing this article with your neighbors so that they can have the opportunity to show up. You don’t have to speak–your presence will speak volumes to the board directors. Help me send that message loud and clear on June 7, 2023 at 4pm at the McLendon-Chisholm City Hall.

Photo Cover Credit: Adrienne Balkum | RCH WSC Station at Twilight

4 comments
  1. You state the RCH meeting will occur at 4PM on June 7. A notice we received from RCH dated May 10 stated the meeting would occur at 2 PM June 7.

    1. Hi Dale! I had a meeting with David Naylor on May 19th and was present when he requested the change with the City Secretary for the RCH WSC Board Meeting to be held on Wednesday, June 7 at 4pm.

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