PADRE DAM

Ensuring a RESILIENT WATER Future for YOU! Our mission is to provide high quality, reliable water, recycled water, and wastewater service as efciently as possible to over 100,000 people within Padre Dam's service area. Our team works tirelessly to ensure we are meeting this important task for the communities we serve every day. Padre Dam completed the second year of our Five Year Business Plan and Budget at the end of Fiscal Year 2019. This plan covers Fiscal Years 2018-2022 and is the key planning instrument and road map to "Ensuring a Strong Future" for Padre Dam. I am happy to share the key successes from FY 2019 in this report which are a direct result of the high quality work of our extraordinary team here at Padre Dam. This year, Padre Dam had a unique opportunity to freeze rates instead of applying a previously approved water rate increase. Our water operation fund balances are strong due to higher than budgeted water sales last year, making the choice to forego a previously approved water rate increase for this year the best decision for our customers. Padre Dam continued our path toward a new, reliable, drought proof water supply this year. The East County Advanced Water Purication Project completed the environmental review process and reafrmed our partnerships with the City of El Cajon, County of San Diego and Helix Water District. We look forward to moving further towards implementation on the development of a Joint Powers Authority and Progressive Design Build packages coming out in the next year. This important project will produce up to 30 percent of East County's water supply, increasing our water reliability and providing a much needed local water supply source for our customers. This important project will provide up to 30 percent of East County's drinking water demands while reducing wastewater discharge into the Pacic Ocean. Additional HIGHLIGHTS from Fiscal Year 2019 include: • Improved GIS technology for District staff to utilize in the eld, creating workload efciencies • AMI system successful meter reading of 99.75 percent • Increased Aquahawk registration to 12,500 (more than 50 percent of customers) • Redesigned the Padre Dam website to allow for better navigation and usability • Potable Water Pipeline and Inverted Sewer Siphon condition assessments completed • 16 successful employee recruitments to replace positions that were vacated due to retirements or attrition I look forward to the innovative and vital work our incredible staff will continue to do in Fiscal Year 2020. As we look ahead, we are excited to continue our strides toward Ensuring a RESILIENT WATER Future for YOU! Best Regards, Allen Carlisle CEO / General Manager CEO 2019 Annual Report 3

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