RCH WS Engineer Proposes To Be Paid Upfront $500K

Eddy Daniel, DBI engineer wants a new engineering contract signed by RCH WS to do some new plans for relocating water lines and wants to be paid upfront $500K. It’s getting interesting for those on the RCH WS Watch as you read in my last post, “Are Trilogy Developers Seeking To Decertify From RCH’s CCN?” In case you missed the September meeting I recorded it. In this article, I’m addressing the public comments, the review of the Drought Contingency Plan, upfront costs for an engineer contract with Eddy Daniel, TxDOT relocation line obligations, remote water meters and more!

Once again, the administrative officer failed to post the September Board Meeting agenda 48 hours prior to the meeting date on the website that she maintains. According to RCH Board Director, Steve Hatfield who gave Robin Baley praise for being responsible for all of the website revisions that included uploading pdf files of the bylaws to several forms. Uploading an agenda would not be such a challenge, right?

Does the minimal actions really change if Ms. Baley should still be the administrative officer and/or continue to have a service contract?

RCH WS uses a web hosting service Rural Water Impact and their customer support could have handled it instead of relying on an insubordinate service provider Robin Baley, H20 Services to perform changes.

View the RCH WS September 7, 2022 Agenda

The Texas Legislature passed Texas Open Meeting Act (TOMA) to ensure that we could keep up with our government. Adopted in 1967, the act essentially gives the public near-complete access to the meetings of a governing body. The law is based on the principle that citizens have the right to be informed about and participate in their own governance, and reviewing courts conduct their analysis of TOMA issues with this principle in mind.

I bring this up for you to understand what you are about to watch and read why it is important about being involved in what is happening locally with our water service provider.

In case you were unable to attend the RCH WS Board Meeting on September 7, 2022 here is the video that I recorded for you to watch at your convenience.

Eddy Daniel’s Engineering Contract with RCH WS

Operator/Field Tech Dwight Lindop shared that he doesn’t have the DBI contract so it would have to be tabled even though it was not on the agenda for discussion and action.

Steve Hatfield asked, “Did you get any information of what kind of cost that could be and how that is going to work?”

Dwight Lindop said, “The cost is about $3.5 million and $500K for the engineering fee. It’s moving thousands of feet of line out of the new area that TxDOT has bought. We will be reimbursed, but this money comes from the company and it has to be put up first. RCH WS has to pay for it to move and then you file your reports to the state of how much it cost us to get the refund.”

Lindop added, “This [205 TxDOT Road Project] is close to $4 million. For about a year, we have had a $100k project out here that we have not gotten it paid for yet.”

TxDOT wants it done by December 2023 [See Figure 8]. Dwight Lindop candidly said to TxDot that RCH WS doesn’t have the money to do it. It’s just not going to happen.

Dwight Lindop goes over what he knows, “First, we need to sign the engineering contract with DBI for them to do the plans and pay the $500K upfront. What the engineer had provided was just an estimate. This is to move the lines over just below FM 549 to Pullen Rd, redo every road crossing and redo all of the residential/commercial service lines to the new move. FM 550 south to League Road location, Klutts road south to the ETJ.” [See Figure 8]

“Will the state finance that?” asked Steve Hatfield.

Dwight replied, “We can always ask. But I doubt it.”

Steve asked the board, “Can we get a TxDOT representative at our next meeting to go over all this? This a huge undertaking.”

Another board director Warren Hodges said, “Jackie [Pullen] would be a contact to get us somebody.”

Steve Hatfield stated, “This is going to beat up the reserves that we have, if not all of the reserves to do something that we are not even going to get reimbursed for who knows when. I think we need someone to come up here and explain something. We are not a bank.”

Financial assurance is one of the pillars of a qualified CCN

The years of lacking leadership to manage this water supply corporation has surfaced. I find it rather peculiar that this particular engineer who has been the go to contractor for many years is now bold to say that he wants to be paid upfront. Is it possible that the engineer is concerned about RCH WS financial viability?

It sounds so hard to believe that the board directors or anyone that lives in our area is not aware of the TxDOT road clearing activity or is not aware of the Hwy 205 road expansion. The Rockwall County Road Consortium meetings led by Rockwall County Commissioner Dennis Bailey are held monthly where John Polster, representing Innovative Transportation Solutions, Inc., delivers an update regarding TxDOT projects. Most cities have one or two representatives that attend those monthly meetings at the downtown historic court house. Before Polster shares that information there are monthly Zoom meetings hosted by Walter Caraig TXDOT Relocation Coordinator with utility representatives and district representatives. As of two days ago, I am aware that no one from RCH WS or H20 Services has attended those meetings. The next Zoom meeting will be held on September 29, 2022 at 9am and yours truly will be watching. Hopefully, someone from the RCH WS Board will attend that online meeting since they are a utility provider. Although, it may be awkward considering they are behind and TxDOT may just have to bring RCH WS to reality of the consequences for failing to meet the state standards of financial assurance of the general provisions of economic regulation.

II. Questions From Concerned Customers

After the meeting was called to order I stepped up to ask questions during Public Comments:

1. Per an email from Freese & Nichol (NTMWD consultant) it gives the appearance you were approved the new take point in Terrell, TX. What concrete document from NTMWD do you have that shows you will be allowed to take on that take point as a direct customer?

2. Have you received a new contract or amended contract with the City of Rockwall?

3. Are financials running through H20 Services or under RCH WS?

4. Where are the protected reserves located in a local bank or investment bank?

5. When can we expect the annual audit report by a third party?

6. How much is RCH WS paying for H20 Services contract?

7. What is the relationship between Jackie Pullen and Mt. Zion WS?

Most of the questions I was asked to submit them via email, however, it was acknowledged that the board was still waiting on the Rockwall contract. The seventh question, Mr. Dwight Lindop (operator/field technician) decided to address directly that Mr. Jackie Pullen has nothing to do with Mt. Zion WS.

Laurie Lehmberg, a concerned customer said, “I submitted a request to speak to the board. I talked at the last [August] meeting. I submitted a request to see the financial reports and I have yet to see those. The bylaws spells out how that is supposed to happen. Annually, you are supposed to have a competent person audit them and it is supposed to be submitted before the members at the annual meeting. I hope I don’t get a similar response like I received when I asked about the reserves. Well you were not at the annual meeting that’s why you don’t have it. The Texas Open Meetings Act (TOMA) addresses this. As I am sitting here watching, I’m a bit concerned that these meetings are not meeting that criteria. There is supposed to be a recording of the meeting. Thanks to you [Adrienne Balkum] there is one.

Last month, we went through a lot of concerns with our water system. Heard lots of we need to hope and pray for rain. I said several times hoping and praying is not a strategy. We have a problem and we need to have some concrete solutions to fix it. The engineer went through a lot of that information. Spelled out a lot of things that are in the works or planned, but every one of those things had big price tags on them. The only way to pay for that is money. If there is no reserve I don’t know where it is going to come from unless you are looking to us to do that. I guarantee that the members don’t have millions of dollars. So we asked for financials, reserves and we have gotten zero response. Jim said trust us and I have for a month, but we have seen nothing. Bylaws have been posted and I appreciate that. It is one of thing that is needed if you want to apply to be on the board. There has been a little bit of improvement, but trust only goes so far. These should be documents you already have and be posted on the website. Here we are 30 days later.

We still have water pressure problems. Rain was not the solution to the problem. Yes there is less water usage, but we still have a problem. With lack of evidence trust goes to zero.”

III. August 3, 2022 Minutes Approved With No Changes and Comments Were Not Listed.

RCH Board Director Steve Hatfield who read the minutes included inaccurately the elevated tower plat was with the City of McLendon-Chisholm for over a year. Even though this was addressed in multiple public meetings. The minutes was approved as is. In addition to that there was a slew of concerns, but not listed in the minutes. If you are interested watch and/or read the public comments click here.

IV. Website Improvements

RCH Board Director Steve Hatfield thanked Ms. Robin Baley for managing to get the website updates done. He mentioned that the customer support interface was utilized and pointed to those attendees who used it filled it out today. Which gives us the opportunity to come before the board to speak.

I absolutely don’t agree with Mr. Hatfield’s assessment as I have sent multiple certified letters that included items to include in the upcoming agenda as well as addressing my concerns. Laurie Lehmberg pointedly, “That form is not solving it. What are you doing to address the concerns because they were not in the minutes that these actions helped to solve the problems that came up.”

Frankly, most compliant governing boards understand that the rights of a public meeting includes to conduct public comment at which the public may address comments on any subject to the governmental body. (CHAPTER 551. OPEN MEETINGS)

I don’t need to fill out a form to be allowed to speak during public comments at public meetings. Although, I do recommend for a speaker card or paper to be filled out to assist the administrative officer to incorporate in the minutes and a way for staff to follow up with the public concerns. It was not until the August 3, 2022 meeting that the agenda included “Public Comments”.

IV. Review of the Drought Contingency Plan

Warren Hodges introduced Dwight Lindop the operator/field technician to give an update and he begins with a snide remark to the attendees, “Do ya’ll have any comments who want to say anything about it?”

Laurie Lehmberg responded, “Are you referring to me? We talked about updates to the website, but is the intent to help with all of our concerns that were raised at the August meeting?”

Steve Hatfield responded, “Well that’s what we are trying to do and there were things that were asked to be seen on the website. And that is what we are doing.”

Warren Hodges added, “We are in the process of trying to work through those. It is not going to be an overnight situation.”

Hatfield also shared, “I don’t believe we take minutes on public comments. We have made progress since last month. We got some things accomplished. And next month there will be more.”

Who Initiates OR Terminates The Drought Contingency Plan?

Dwight continued, “We are still in Stage 4 with the help of the rain it dropped to 645K a day. Except it went to 900k. You can see the jump that it makes in just one day. We can try to go to Stage 3, but it is still a 20% reduction. So you are looking around a 1.8 mgd to keep the reduction. If the citizens can do that then it is up to the board for us to go down to Stage 3 and customers can use sprinklers [See FIGURE 3].

“But I can tell you,” Dwight shared, “now that 300,000 jump is nothing compared to what it will be.”

He continued to warn that it could escalate in a hurry. “If it does we will get back to Stage 4. We are still only getting 2.1 mgd. So if we start going over it is up to Rockwall to say to cut back again in 14 hours like they did last time. And they [Rockwall] will give you time to react to it. So it is up to the board to decide if we take that little leap and try or do we stay where we are at Stage 4? Due to the fact when we were in Stage 4 we were pumping 1.8 mgd to 1.9 mgd.” [It has been Stage 4 for months see FIGURE 1 of website interface and see FIGURE 2 of the actual recorded numbers.]

Who Determines When Conditions Warrant Initiation OR Termination of each stage of The Drought Contingency Plan?

Laurie Lehmberg asked, “Isn’t it based on the fill rate of the tanks as opposed to usage?” [See FIGURE 4]

“No ma’am it is based on usage.” Dwight answered, “It’s a 20% usage. If you can’t fill the tank for 2.1 mgd. The 20% reduction is 1.8 mgd.”

Does RCH WS have enforcement?

Keep in mind that this discussion is about how we are still under STAGE 4 and we are NOT to use our automatic sprinklers, but use our hand water hoses. In general, customers have probably returned to their regular routine since the rain came and are unaware what stage we are in.

Laurie Lehmberg questioned, “Have you used any enforcement authority in the Contingency Plan. You know who the people are that are using so much water. All you have to do is look at their meter. It [the drought contingency plan] gives you the ability to go out an issue them a citation. It goes before a judge. Has that been executed?”

How are customers notified?

Dwight Lindop contradicts the drought contingency plan, “In stage 4 you get a notification, you get a deal in your bill that says we are in Stage 4 and I look at it like this. We are all adults. You’re not first graders. I’m not going to go out there and be looked at like a low life telling you not to use your water. I’m not going to do it. I’m not going to put myself in that position or take the looks from people when I ask them to reduce their water usage. Right now it is all on ya’ll the customers. If you watch the website and start seeing we are getting back up to 1.8 mgd/1.9 mgd then it is going to happen.”

McLendon-Chisholm Mayor Keith Short interrupted, “As I am sitting here listening what you are saying and what she [Laurie Lehmberg] is saying, we are being told to be adults and be smart in the usage of water. If I pay my bill I should be able to use my water as I see it. I understand you are limited by Rockwall. But let’s be honest here, by September 1 you had the ability to forecast your usage and growth. Rockwall has the right to say yes or no whether or not they will fulfill that. I have talked to Rockwall and you haven’t sat down with them in many years. But you asking me to reduce my water is BS. If you are not asking them [Rockwall] for more water when you know that future developments are being made, how dare you to tell us to stop using water when you had the ability to ask them for more.”

Lindop responded, “They [Rockwall] signed the contract in 2014 and then to extend it to 2019. In 2019, I got an email that requested to meet with them to discuss our contract. They (Rockwall) met with me and they said we will look into it. When you say you are going to look into it I’m not going to bug you everyday to ask you about it. In early 2021, I called, texted and emailed them that we have a problem with our contract because TCEQ state inspection said that our contract wasn’t up to date. We got zero response. November 2021 we went up there and the response we got was the lawyer is looking into it.

Lindop admits that he didn’t meet with the City Council, but with the Rockwall department heads.

Mayor Short said, “There are 4,200 residents in this community that want water and are expecting you to provide water. You ask them one time and you are not going to ask again. If that is the way you do business–shame on you.”

Dwight retorted, “You go look in the TCEQ book and it will tell you I’m suppose to furnish you water for your household usage–That’s it! Putting it on your yard is cookies and cream if we got it. This was the first year that bypassed the 2.1 mgd other than last year–it happened 3 or 4 times. But it was a year so we didn’t have any problems so they [Rockwall] didn’t say anything. When we went over 25 to 30 days in a row then it became an issue for everybody.”

Mayor Short said, “Several of you are landowners and own livestock. You are telling me that you are cutting back to only household usage instead of providing water on your land and livestock? I don’t believe that. I grew up as a rancher’s kid so I know what that takes. Are you telling me that you are only providing it for household use? Those that are business owners are using outside of residential use.”

Laurie Lehmberg mentioned, “On the statement that you made regarding enforcement, it is not based on a level. It’s based on if someone is not complying with the contingency plan. Enforcement can be executed whether it is Stage 1 or Stage 6. There can be a fine from $100 to $500 if convicted.” [See FIGURE 5]

Dwight Lindop, “I did not read that in our contingency plan.”[See FIGURE 5]

Laurie Lehmberg, “I got it right here from the website.”[See FIGURE 5]

Dwight Lindop gives excuse, “I work during the day when these things are happening at night.”

Laurie Lehmberg, “I hope you are not the only one running this whole water corporation. Is that the case? This is bigger than a one person show.”

Another woman asked Dwight, “What if the board allows us to water on the basis of once a week and by your house number? Rockwall did that for twice a week and maybe for us it could be once a week just to keep things alive.”

Steve Hatfield asked Dwight Lindop, “What stage would that be?”

Dwight Lindop answered, “We really just don’t have a stage for that.”

Dwight Lindop report ended with mumbling, “It’s just up to the board.”

Of course no changes of the stage were made and we are still on Stage 4.

VI. Maintenance | Remote Water Meter Reading System

Dwight Lindop introduces a proposal for remote water meter reading to the board to review.

Lindop claims to have talked to several vendors after he put “feelers” out there. It was certainly not publicized on the website. Only one called him back that spoke sensibly. He would like to get new readers on the busy roads of Hwy 205, FM 550, FM 549 and FM 548. He added that it is getting so dangerous for the guy who reads the water meters.

$166K is the initial cost for 200 meters only. Not the transmitter. This system leads to a laptop that will be stationed at the pump station. These remote reader meters feed that laptop information. The system can provide messages that this person is using water for over 24 hours then it will let the field technician know that person has a leak and a bit of information what is happening at that residence. It’s warranted for 5 years. Anything that goes wrong with it the vendor will come repair it. There is a money back guarantee for 6 months if the system fails to do what they said would do. The system would be good for 10 years. There is no monthly fee.

Dwight mentioned again, “It’s a safety issue for a meter reader to do this. If this is something that you want to act on today or think about.”

Steve Hatfield stated, “I would rather get a better handle of the relocation of the lines.”

Final Thoughts

On September 8, 2022, I sent an email to RCH WS to follow up what action was taken after the Executive Session regarding this “proposed contract with NTMWD.” I’m sure NTMWD would like to know also. We can only speculate what happened in their secret meeting. The board directors at the September board meeting should have been going over where they were in the process of becoming a direct customer with NTMWD. It was very misleading for the engineer to wave an email to August meeting attendees that RCH WS was approved when it was simply a response to the hydraulic analysis with NTMWD.

It doesn’t take care of the initial administrative items that will be required to be completed for NTMWD to approve RCH WS to become a direct customer. Rockwall already did their part earlier this year by sending an initial email to NTMWD that said they were okay for RCH WS to go direct. Right now, it should be between the RCH WS staff and NTMWD staff to get their agreement worked out, the delivery point land purchased, constructed, etc. Then the next thing Rockwall will have to do is tell NTMWD how much of their minimum demand to transfer to RCH WS and that happens AFTER the switchover by a simple letter from the Rockwall City Administrator.

So far RCH WS is not doing too well when it comes to TOMA, administration to financial related documents. Now that the door is gently opening for an alternative qualified CCN provider(s) RCH WS may have a serious awakening early 2023. Just so that it has been said, Hwy 205 will be expanding regardless of whom the CCN provider is. We need reliable administration to managing the long overdue infrastructure improvements currently to future growth. Hang tight my friends the road appears to be narrowing for RCH Water Supply.

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