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2024 Annual Meeting
Report on Operations of Davidson Water, Inc.
March 11, 2024

Good evening. I want to introduce some of the management team that is with us tonight: Robert Walters, Vice President Construction & Engineering; Eric Hege, CIO; Jonathan Ray, Director of Water Services; Josh James, Controller; Danny Thompson, Civil Engineer/GIS Manager, Ben Palmer, Civil Engineer/Asset Manager; Craig Koonts, Water Plant Superintendent; Lisa Koonts, Human Resources; and Susan Little, Administrative Services Supervisor.

I am pleased to report to the membership that Davidson Water, Inc. has approximately 66,500 total connections and 60,666 active meters. Currently, the company has 85 full-time employees and 1 parttime employee.

Water Treatment Plant, Water Quality, and WTP Projects: Our average daily flow was 10.71 MGD (millions gallons per day) and peak flow was just under 15.44 MGD. Water quality remains our top priority with all test results being well within EPA regulations.

EPA required UCMR 5 (Fifth Unregulated Contaminant Monitoring Rule) testing was conducted quarterly to determine if 30 specified chemical contaminants were present in our water as it entered the distribution system. The 30 were 29 PFAS (Per and Polyfluorinated Substances) and one Lithium. Each round of testing delivered non-detectable results for all contaminants.

Next to our largest reservoir along the Yadkin River, we completed a streambank restoration project to correct erosion damage from multiple heavy floods. The project was funded by a $500,000 grant from FEMA. Both design and purchasing activities continued on our Generator Replacement Project which is scheduled to be completed later this year. The 2700 KWH generator was ordered 18 months ago and it may or may not be here by July of this year. At a projected cost of well over $4 million, this project will ensure we maintain the ability to provide water during power outages. Also, planning and plans for replacement of multiple High Service pumps & valves are underway.

Distribution Projects: Our distribution system saw large line upgrades, line extensions, and pipe relocation of 23 miles of new line and 11 miles of replacement pipe. We have approximately 1939 miles of water lines. We have approximately 52 active projects, including at least 13 new projects permitted with NCDEQ projects that are either under construction or in the process of beginning construction.

Supply chain issues for material to complete as well as start projects continues to be a problem. These issues resulted in project delays including Hwy 52 PS and 3 miles of line replacement on West Lexington Avenue, but we are finally near completion. We have several NCDOT projects requiring water line relocation including Gumtree Rd & Hebron Church Rd and I-85 & US Hwy 64 near New Bowers Rd and Nucor Steel. We have reviewed approximately 38 Subdivisions and townhomes that are now active within the last year.

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. Our goal is to be completely AMR by 2027. 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: The Asset Management System we started in the previous year is now feature-point complete. While it will continue to evolve, it can now assist us in maintaining records and performing preventative maintenance as we move forward. We have also laid the groundwork for our upcoming Lead and Copper Survey, and have begun preparations in making this available towards the end of the year to meet regulatory requirements. Our work-order system continues to be refined by adding features and improvements to make it more efficient and accurate.

Our migration of handheld mobile devices and truck units from Verizon to FirstNet, by AT&T is complete. While no carrier has 100% coverage, the overall differences with FirstNet have been very noticeable. We are seeing an increased reduction in areas lacking coverage when compared to the Verizon network, especially in the northern part of Davidson County. This keeps our field in better contact with their work-orders, and one another.

Our revised office hours have helped provide our staff the ability to manage and balance their transactions at the beginning and ending of each day in a much more efficient manner. The two drivethrough windows successfully handle the bulk of the on-site payments to help get our members back on their way as quickly as possible. For those who want more convenient remote payment options, we still provide auto-draft, phone, and web-pay options as well.

Capital Credits Update: The Board of Directors approved the retirement of $420,351.24 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 1991. Some of the checks sent out could include dollar amounts from other years.

Employee Giving and 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 $7,905.00. Our annual Food Drive is always a huge success. This past year, employees and the company contributed $785 along with non-perishable food items for Greater Things Outreach Center in Welcome. Davidson Water sponsored two Angel Tree children last Christmas with generous contributions from employees and the company.

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: Lindsay Cook-East Davidson High School, Taylor Robbins-Central Davidson High School, Grace Scott-Ledford High School, and Shelby Spach-Wheatmore High School.

Davidson Water also awarded four $1,000.00 scholarships to students attending Davidson County Community College. Last years’ recipients were: Anna Marie Fergerson-Ledford High School, Jenna Leigh Jenkins-West Davidson High School, Grace Adele Prevette-East Davidson High School, and Madison Tesh-North Davidson High School.

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

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