CORRECTED ADDRESS - RCH Requests Mediation Following City Council's Recent Actions

Dear RCH Members,

Regrettably, I must inform you of the recent developments concerning the City of McLendon-Chisholm. At their September 17, 2024, Special City Council Meeting, the council voted to terminate the License Agreement between the City and RCH Water Supply Corporation. The agreement itself explicitly prohibits this action. This unilateral decision was made without prior notice or justification, confirming the unfortunate reality of the City's interference with our operations and service to the community.

In light of these actions and their apparent motives, RCH has formally requested mediation in accordance with Section 19 of the License Agreement. We will submit a list of proposed mediators to the City for selection and expect their cooperation to begin this mediation process by October 3, 2024, as the agreement requires. We remain hopeful that this mediation will provide a path to resolve these disputes in a fair and lawful manner.

We had genuinely hoped for a new spirit of collaboration and partnership with the City, one focused on doing what is best for the residents of McLendon-Chisholm and the RCH members alike. Unfortunately, the actions of certain council members have shown that their priorities are elsewhere.

Despite these challenges, I assure you that RCH remains committed to our mission and will continue progressing with important projects that benefit our members. The City’s interference will not deter us from staying on track with the construction of our North Texas Municipal Water District (NTMWD) take-point. This crucial project remains on schedule, and we are excited to invite you to the groundbreaking ceremony:

Event Details:

• Date: September 27, 2024
• Time: 10:00 AM
• Location: 15711 COUNTY ROAD 245, TERRELL TX 75160

This groundbreaking marks a significant milestone for RCH, and we look forward to celebrating this achievement with you. Your continued support is invaluable as we work to overcome the challenges posed by the City's actions and ensure a reliable water supply for our community.

Thank you for your attention, and we hope to see you at the ceremony.

Sincerely,

David Naylor
RCH Board President