Good evening. I want to introduce some of the management team that is with us tonight: Robert Walters, Vice President Construction & Engineering; Alison Brinkley-Michael, CFO; Eric Hege, CIO; Jonathan Ray, Director of Water Services; Stephanie Farlow, Controller; Danny Thompson, Civil Engineer/GIS Manager, and Ben Palmer, Civil Engineer/Asset Manager.

I am pleased to report to the membership that Davidson Water, Inc. has 65,826 total connections and 59,479 active meters. Currently, the company has 84 full-time employees and 1 part-time employee.

Water Treatment Plant and Water Quality: Our average daily flow was 11.18 MGD (millions gallons per day) and peak flow was just under 16.73 MGD. Water quality remains our top priority with all test results being well within EPA regulations. We are pleased to announce that in 2022 Davidson Water received the North Carolina AWOP (Area Wide Optimization Program) award given by NC Department of Environmental Quality. The award recognizes water systems that meet much more stringent regulations and achieve higher levels of water quality that is required by EPA.

We completed a disinfectant conversion project from Chlorine gas to sodium hyper-chlorite (or liquid bleach). Bleach is much safer than Chlorine gas for employees as well as the general public. We have completed a fluoride project with updated process equipment and an emergency containment area. We started a $500 million FEMA grant streambank restoration project along the Yadkin River that was severely eroded by multiple heavy floods. This project should be completed in the near future. Other major projects included the flume repair to Reservoir No. 3 (or our Upper Reservoir next to Hwy 64) and we begin design work and placed an order for a new 2700kw power generator for the water plant. This generator project will take place over the next two years at a cost of over $2 million.

Distribution: Our distribution system saw large line upgrades, line extensions, and pipe relocation of 17 miles of new line and 3 miles of replacement pipe. We have approximately 1916 miles of water lines. We had over 19 new projects permitted with NCDEQ and have approximately 50 active projects are either under construction or in the process of beginning construction.

Some highlights of projects we’re working on or have completed in 2022 are as follows: $2.4 million pump station replacement at Old Hwy 52 and Welcome Center Blvd, 12” Line replacement on Turnpike Rd in Trinity, about 35,000’ of line improvements to Jerusalem Rd and Regan Rd.

NCDOT Projects include Nucor turn lanes, I-85 and Hwy 64 improvements, Finch Farm Rd, Hickory Tree Rd, Becks Church Rd, Archdale Rd, Gumtree Rd bridge, Hasty School Rd, Surratt Rd in Trinity. Industrial/Commercial Site Projects include New Bowers Rd, Nucor, I-85 Corporate Center at Egger Parkway, and NC I-85 Center (Samet) development.

Meter Services: The Meter Services Department is continuing to install drive-by radio read meters or AMR (Automatic Meter Read) for our high demand large meter customers for detailed consumption tracking. Some of these high demand customers are utilizing ultrasonic meters and cellular real time consumption readings. For all residential and small business customers, we are utilizing 100% AMR technology. We have also implemented a retired meter change-out program for residential customers, currently replacing all meters 2004 and older.

Customer Service and IT: Throughout the past year, we have continued to refine our work-order system. This has enabled us to create and track additional work-orders such as ones specifically focused towards Puddles, our leak detection canine. We have also expanded the work-order system into the beginnings of a robust asset management system. This will allow us to better track maintenance and data on items such as pumps and control valves.

To improve communication with our field crews, we have started switching our cell service over to FirstNet from AT&T. This will give us more complete coverage than we were experiencing utilizing the Verizon network. This project is expected to be completed by early fall of 2023.

Our lobby opened back up last Spring, 2022 after being closed for several months due to Covid-19, parking lot storm drainage work, paving, and lobby renovation. We also added another Drive-thru customer service lane. Open lobby office hours have changed slightly, with the lobby being open from 9:00am to 4:00pm Monday through Friday. The drive-through lanes are still open from 8:00am to 5:00pm Monday through Friday as well as customer service receiving phone calls.

Capital Credits: The Board of Directors approved the retirement of $596,089.81 in capital credits. Capital credits are excess margins (or profits) created by non-profit companies. This money was distributed out to members and former members that received water service from Davidson Water, Inc. in the year 1990. Some of the checks sent out also included capital credits from 1989 that were outstanding.

Employee Giving & Community Outreach: Davidson Water employees have been very generous to give back to the community in more ways than one. This past year our annual United Way campaign contributions totaled $8,469.00. Our annual Food Drive is always a huge success. This past year, employees and the company contributed $1,290.00 along with many boxes of non-perishable food items for Greater Things Outreach Center in Welcome.

Scholarships: Davidson Water annually awards four college scholarships in the amount of $2,000.00 each to deserving high school seniors in memory of past board members. Last years’ recipients were: Paris Griffin, Wheatmore High School; Kaylie Sink, North Davidson High School; Emily Stambaugh, West Davidson High School; and Salem Ward, Central Davidson High School.

Davidson Water also awarded four $1,000.00 scholarships to students attending Davidson County Community College. Last years’ recipients were: Angel Burns, Central Davidson High School; Morgan Cooley, West Davidson High School; Carson Shoaf, West Davidson High School; and Bryson Young, East Davidson High School.

Before I end my report, I want to take a moment to remember a very special person in our community. Dr. Wallace “Wally” Butler passed away a few days ago at the age of 94. Dr. Butler was the last original surviving board member of North Davidson Water, Inc., predecessor to Davidson Water, founded over 50 years ago. The plaque to my right is the original plaque of North Davidson Water, Inc. that was on our building across the road before moving where we are now in 1998. Dr. Butler’s name is on that plaque. In addition to serving on the original board of North Davidson Water, he accomplished much including his dental practice in Welcome for over 49 years. In spite of his declining health, we were fortunate to have Dr. Butler and his wife Judy attend our 50th year anniversary celebration in 2019. We had a grand time. We’re so happy to have that memory.

In closing, I want to emphasize our commitment to our mission of providing safe, reliable water to our members at the lowest possible cost. We will continue to do that with the leadership of our board and management, the expert guidance of our professional partners, the dedication and expertise of our employees, and the support of our members. Thank you.

Ron Sink, General Manager