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2010 Annual Report to Membership

This past May we celebrated 40 years of providing water services to our membership. We have grown from 2,800 connections to over 58,000 providing service to a population of 140,000 in four different counties, plus portions or all of seven municipalities while providing commercial and industrial growth as well. The C O Pickle Water Plant has been expanded six times from 2 mgd to our present capacity of 20 mgd. We once operated out of a one room office. Now our Therrell C. Grimes Operation Center has over 40,000 square feet of office, maintenance and warehouse facility under one roof along with our C Boyce Sink Board Room. We truly have been blessed over the past 40 years from our visionaries to the leadership from our Board and Management and dedicated skilled employees, the heart and soul of our company.

This past year we received $28,609 of generator credits at our Hyattown and office facilities and were able to reduce our plant electrical cost by an additional $150,000 by load management with our two plant generators. We produced 3,953,524,000 gallons of water, billing for 3,240,600,000 gallons with a water loss of 14.8%. Our Consumer Confidence Report went out showing no violations. We have continued our capital improvement program, completing our 20” transmission line to Welcome. We also replaced lines that were giving us trouble on Black Sawmill, County Home, Old Salisbury, East Park and Robert Everhart Roads.

Our service leaks have been reduced from a high of 1,214 in 1997 to only 18 in 2009. We repaired 388 mail line leaks, a low for the past 10 years. We moved 15 meters, repaired 23 hydrants, made 324 water taps, 210 valve boxes were raised and realigned and 73 valves were repaired or replaced. We continue our meter replacement program, changing out 5, 343 meters, making a total of 35,671 since October 2001. We are continuing our automatic meter read program now having over 24,000 in use and we will be adding 1,200 this year. Over 635,000 meters were read, billed and payments posted, 5,343 were cut off for non payment and 6,049 final readings were obtained when customers moved out and then processed by our office personnel as customers moved in, out and signed up for new taps.

Continued growth and water demand in our service area has required us to make plans for a new water plant, river intake and larger reservoir. Phase I will be a new river intake 5-7 feet deeper in the river than our present intakes, river pumps capable of pumping 40 mgd expandable to 60 mgd, a new raw water intake capable of pumping 40 mgd and expandable to 50 mgd and a new 100 mg reservoir. Pipe work will be 36”, 42” and 48”. We have taken bids, awarded contracts and work should begin shortly on Phase I.

Phase II will be a new 10 mgd water plant expandable to 40 mgd, a 5 mg clearwell, 30 mg flashmix, 15 mg flocculators, 15 mg enhanced settling basins, 30 mg GAC contactors, high service pumps, better sludge control, filters, track vac system, chemical storage, electrical and SCADA. We hope to bid Phase II in June 2010. It is better to look ahead and prepare than to look back and regret. Today’s preparation determines tomorrow’s achievements.

Through these initiatives, we hope to provide better service to you our members now and in the future.

On a sadder note this will be John Faust's last Board meeting. Nine years ago John joined the Davidson Water, Inc. Board of Directors bringing new talents and leadership. His prospective as a developer and entrepreneur brought needed insight on new regulations for developments. Every calling is great when greatly pursued. John Faust exemplified this as a Board member. Our success will be measured by our ability to complete and sustain what our founding fathers began. John, the past 9 years you have truly measured up as a Board member. Thank you for your years of service and may God bless you.

Gregg Stabler, General Manager

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