You are in a routine procedure.
NTOs go astray, this is why the procedure is in place.
Based on the date on this notice as 22nd July, does the 14 day period expire on 7th August? I don't know of any authority which gets the TEC process rolling immediately the CC payment period expires. As you know how to access their website the advice is to check this every 7-10 days to see if the penalty charge has increased by £10. This is the TEC registration fee and shows that an OfR(TE3) with accompanying witness statement(TE9) have been issued. You don't actually have to wait to receive these but can download a blank TE9 and come back here for advice on completion - a tick box exercise.
Order and recovery form and witness statement, are they both called TE9? As above.
Should I also contact the recovery company (RAC) who has caused all this problem as they did not park the vehicle correctly in the first instance. I did try to send a message thru their website as that is what they advised as the best way to contact complaints team but no response.
With what aim in mind? You cannot charge them anything because at present you haven't suffered any loss and you cannot transfer liability for the penalty to them. If you feel you must, then you could update them on what's happened i.e. car was left by them in contravention and a PCN was served. As the registered keeper, you are now disputing the charge and will keep them advised as to progress. Councils can be rather slow and it might be several months before there's a final resolution.
---- is just factual. What follows isn't!
If you feel you must(because it would no doubt start a parallel strand of correspondence) you might add...
You will do your best to avoid having to pay a penalty, but if you have to pay then you reserve the right to recover this from them.