Untitled - Reservation Telephone Cooperative
Untitled - Reservation Telephone Cooperative
Untitled - Reservation Telephone Cooperative
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Welcome Members!<br />
Meal by Kyle’s Katering at Multi-purpose Building.....................4:30 p.m. – 6:30 p.m.<br />
Registration at Multi-purpose Building..............................................4:30 p.m. – 6:45 p.m.<br />
Music by Joyce Aslakson at Parshall Memorial Hall..................6:15 p.m. – 7:00 p.m.<br />
Meeting at Parshall Memorial Hall..................................................................................7:00 p.m.<br />
Presentation of Colors..........................................................................................RTC Employees<br />
Percussion......................................................................................................................Brett Westgard<br />
The National Anthem....................................................................................................Jeanna Zenz<br />
Call to Order.....................................................................................................................Terry Wilber<br />
Invocation................................................................................................................... Rev. Dan Dapelo<br />
Recognition of Military Personnel..........................................................................Terry Wilber<br />
Recognition of Guests and Introduction of Board......................................Terry Wilber<br />
Reading of Meeting Notice and Proof of Mailing....................................Marlyn Froseth<br />
Approval of Minutes......................................................................................................Terry Wilber<br />
Nominating Committee Report.........................................................................Norlan Nelson<br />
Introduction of Candidates........................................................................................Terry Wilber<br />
Election of Directors.....................................................................................................Terry Wilber<br />
President’s Report...........................................................................................................Terry Wilber<br />
Audit Report.....................................................................................................................David Aamot<br />
Drawing for Prizes<br />
CEO/General Manager’s Report.................................................................Royce S. Aslakson<br />
RTC Scholarship Winners...............................................................................Royce S. Aslakson<br />
NTCA FRS Youth Tour Winner................................................................Royce S. Aslakson<br />
Award Presentation...................................................Royce S. Aslakson and Terry Wilber<br />
Drawing for Prizes<br />
Unfinished Business........................................................................................................Terry Wilber<br />
New Business....................................................................................................................Terry Wilber<br />
Children’s Prize Drawing – Bike<br />
Grand Prize Drawings<br />
– One year of free RTC local phone service and $500 cash<br />
Adjournment......................................................................................................................Terry Wilber<br />
RTC Mission:<br />
Our mission is to provide quality<br />
telecommunication services<br />
at competitive prices.<br />
RTC Values & Principles:<br />
• Guided by the <strong>Cooperative</strong> Philosophy<br />
• Practice Sound Financial Management<br />
• Focus on the Customer<br />
• Value and Support Employees<br />
• Support Our Local Communities<br />
1.
Your Board of Directors<br />
Terry Wilber PRESIDENT<br />
Jeanette Hoff VICE PRESIDENT<br />
Marlyn Froseth SECRETARY/TREASURER<br />
2.<br />
Back: Paul Wisness, Dennis Heer, Terry Wilber, Hilman Anderson,<br />
Marlyn Froseth. Front: Jennifer Sorenson, Barbara Steinmetz,<br />
Jeanette Hoff, Alicia Brenna (Attorney).<br />
The 60th Annual Meeting of the members of <strong>Reservation</strong> <strong>Telephone</strong><br />
<strong>Cooperative</strong> will be held at Parshall, County of Mountrail, State of North Dakota,<br />
on Thursday, June 23, 2011. Registration and the meal will begin at 4:30 p.m. at the<br />
RTC Multi-purpose Building. The meeting will be called to order at 7:00 p.m. at the<br />
Parshall Memorial Hall.<br />
Business to be conducted at this<br />
meeting will be:<br />
1. Report existence of quorum<br />
2. Read notice of meeting<br />
3. Reading of unapproved minutes<br />
4. Audit report of outside auditors, or a summary thereof<br />
5. Election of Directors<br />
6. Presentation of reports<br />
7. Unfinished business<br />
8. New business<br />
9. Adjournment<br />
Directors:<br />
Paul Wisness District 1A (Alexander, Arnegard, Keene, Squaw Gap, Watford City)<br />
Jennifer Sorenson District 1B (Alexander, Arnegard, Keene, Squaw Gap, Watford City)<br />
Dennis Heer District 2A (Mandaree, New Town, Ross)<br />
Terry Wilber District 2B (Mandaree, New Town, Ross)<br />
Marlyn Froseth District 3 (Kenmare, Norma, Spencer)<br />
Jeanette Hoff District 4 (Parshall, Plaza)<br />
Hilman Anderson District 5 (Douglas, Makoti, Max, Roseglen, Ryder)<br />
Barbara Steinmetz District 6 (Emmet, Garrison)<br />
Alicia Brenna Attorney<br />
The director candidates as selected by the Nominating<br />
Committee are listed below. Each member shall<br />
vote for one candidate from each district.<br />
District 1B (Alexander, Arnegard, Keene, Squaw Gap,<br />
and Watford City)<br />
Jennifer Sorenson<br />
District 2B (Mandaree, New Town, Ross)<br />
Terry Wilber<br />
District 3 (Kenmare, Norma, Spencer)<br />
Marlyn Forseth<br />
This is your meeting and is your best chance each year<br />
to learn about the affairs of your cooperative.<br />
Sincerely,<br />
Marlyn Froseth,<br />
Secretary
2010 Minutes<br />
The 59th Annual Meeting of <strong>Reservation</strong> <strong>Telephone</strong><br />
<strong>Cooperative</strong> was held on Thursday, June 24th, 2010 at the<br />
Parshall Memorial Hall. Registration was held from 4:30 p.m.<br />
to 6:45 p.m. and a meal was served by Myer’s Meats from<br />
4:30 - 6:30 p.m. at the Multi-purpose Building. Entertainment<br />
was provided by Keith Bear at the Memorial Hall prior to the<br />
meeting. The colors were presented by RTC Employees Tim<br />
Jarski and Dennis Kellar with percussion by Brett Westgard.<br />
John Warner sang the National Anthem accompanied by Joyce<br />
Aslakson.<br />
President Wilber called the meeting to order. Pastor Janis<br />
Sloka, III from Camp of the Cross gave the invocation. President<br />
Wilber asked all who had served in the military to stand and be<br />
recognized. President Wilber thanked Dennis Kellar, Tim Jarski,<br />
Brett Westgard, John Warner and Joyce Aslakson for the opening<br />
ceremony. He also thanked Marty Anderson for providing the<br />
sound system, Myer’s Meats, Pastor Janis Sloka, III for giving the<br />
invocation and Keith Bear for providing entertainment before<br />
the meeting.<br />
President Wilber introduced Board members and spouses<br />
Paul and Sandi Wisness, Marlyn and LaDonna Froseth, Jeanette<br />
and Steve Hoff, Dennis and Sheri Heer, Norlan and Margie<br />
Nelson, Jennifer and Curtis Sorenson, Hilman and Phyllis<br />
Anderson, and his wife Marcia Wilber. Legal Counsel Alicia<br />
Brenna and Nathan, CEO/GM Royce Aslakson and Joyce,<br />
Financial Manager David Aamot and Brenda and several special<br />
guests were also introduced.<br />
There were 275 voting members present. President Wilber<br />
declared the existence of a quorum.<br />
A motion was made and seconded to dispense with the<br />
reading of the Notice of Annual Meeting and the Proof of<br />
Mailing. M/C<br />
A motion was made and seconded to dispense with the<br />
reading of the 58th Annual Meeting Minutes and to approve as<br />
per copy in Annual Meeting Book. M/C<br />
President Wilber called for a motion to dispense with the<br />
reading of the Nominating Committee Report. M/C<br />
A motion was made and seconded to approve the<br />
Nominating Committee Report as printed in the Annual<br />
Meeting booklet. M/C<br />
President Wilber introduced Steve Brennan, Garrison<br />
HS Superintendent, who thanked <strong>Reservation</strong> <strong>Telephone</strong><br />
<strong>Cooperative</strong> for exceptional community leadership, community<br />
service and dedication to the Garrison school system.<br />
President Wilber introduced the candidates for director<br />
districts. Candidate for District 1A is Paul Wisness. A motion<br />
was made and seconded to cast a unanimous ballot for Paul<br />
Wisness for District 1A. M/C<br />
Candidate for District 4 is Jeanette Hoff. A motion was made<br />
and seconded to cast a unanimous ballot for Jeanette Hoff for<br />
District 4. M/C<br />
Candidate for District 6 is Barbara Steinmetz. A motion was<br />
made and seconded to cast a unanimous ballot for Barbara<br />
Steinmetz for District 6. M/C<br />
President Wilber gave his report noting that RTC has not<br />
retired capital credits yet this year but pointed out they are<br />
still building for each member. The capital is being used for<br />
the deployment of fiber-to-the-home (FTTH) at this time.<br />
President Wilber also discussed the impact of the $21.9M<br />
Stimulus Grant/Loan Award that RTC received in<br />
March of 2010. He emphasized that the grant would have a<br />
positive effect on the ownership of each member. President<br />
Wilber thanked the employees for this accomplishment.<br />
Financial Manager David Aamot presented the auditor’s<br />
report by reviewing the Statement of Operations and<br />
the Balance Sheet. He noted a net operating margin of<br />
$712,920.00 for the year 2009. RTC received an unqualified<br />
opinion for the financial statements, which means a “clean”<br />
opinion from our auditors. Because of the oil activity, RTC’s<br />
cable locates have grown to an average of 1,300 per month<br />
which has a direct impact on the bottom line. RTC has<br />
invested 14 million dollars in the FTTH and video projects. The<br />
cooperative is in an outstanding financial position.<br />
A motion was made and seconded to accept the Audit<br />
Report for 2009. M/C<br />
President Wilber introduced Lisa Schenfisch, co-chairman of<br />
the Annual Meeting Committee and Janell Lynne, committee<br />
member, to draw for door prizes.<br />
CEO/General Manager Aslakson presented his report.<br />
He called attention to the Annual Meeting Book. CEO/GM<br />
Aslakson thanked the RTC Board and membership for a great<br />
year.<br />
CEO/GM Aslakson introduced new employees who started<br />
working at RTC within the last year. He then recognized all the<br />
employees of RTC and thanked them for their hard work and<br />
dedication.<br />
CEO/GM Aslakson introduced the Management Team and<br />
noted Brooks Goodall was promoted to Operations Manager.<br />
CEO/GM Aslakson reported on the FTTH project and<br />
video upgrade. He stressed how important FTTH is to our<br />
members when upgrading voice, data and video services. He<br />
reported that RTC will again offer BEK Sports action for the<br />
2010-11 school year. Local content will serve as a way to<br />
connect with our members on a more local level.<br />
CEO/GM Aslakson reported on the $21.9M loan/grant<br />
award that RTC received through the American Recovery and<br />
Reinvestment Act (ARRA). The purpose of the award is to<br />
expand the availability of broadband to our service territory.<br />
The National Broadband Plan which was released in March of<br />
2010 was also presented to the members.<br />
CEO/GM Aslakson thanked all those that were a part of<br />
this Annual Meeting and helped to make it a success. He also<br />
stressed that our number one goal at RTC is to listen to our<br />
customers and determine what services and technologies are<br />
needed.<br />
CEO/GM Aslakson recognized the 2010 RTC Scholarship<br />
recipients Seth Tescher, Derek Thompson, Jacobi Moe, Shelby<br />
Deserly, Brittany Harris, Harrison Zacher, Kati Brandt, Sierra<br />
Lassila and Sibinee Jokela. Kati Brandt gave a message of<br />
thanks on behalf of all scholarship recipients. Sibinee Jokela<br />
was recognized as RTC’s second $2,500 FRS National<br />
Scholarship winner. FRS Youth Tour recipient Samantha<br />
Entzi was recognized. She thanked the membership for her<br />
expense paid trip to Washington, DC. Samantha’s mother,<br />
Valerie Entzi, traveled as a chaperone and related to the<br />
membership that it was a well behaved and mannered<br />
group which made her proud to be associated.<br />
CEO/GM Aslakson introduced Roger Hovda who retired<br />
this past year. CEO/GM Aslakson gave a short biography of<br />
Roger’s employment with RTC. President Wilber<br />
presented Roger with a cordless phone from RTC for his<br />
32 years of dedicated service.<br />
CEO/GM Aslakson introduced Director Norlan Nelson<br />
who is retiring this year.<br />
CEO/GM Aslakson gave a short biography of Director<br />
Nelson’s 31 years of service to RTC. President Wilber<br />
presented Director Norlan Nelson with an antique<br />
telephone as a retirement gift and as a thank you for 31<br />
years of dedicated service to the RTC Board.<br />
Alan Lerberg was unable to attend but was recognized<br />
for his 30 years of service as RTC Legal Counsel. Attorney<br />
Lerberg will be receiving a cordless phone for his dedicated<br />
service to RTC.<br />
CEO/GM Aslakson congratulated Brenda Kok for her<br />
AT&S Customer Service Certification achievement. Dennis<br />
Kellar was recognized for his AT&S 950,000 mile safe driving<br />
record.<br />
CEO/GM Aslakson also congratulated those<br />
employees who earned AT&S mileage awards. RTC was<br />
recognized for driving 12,038,639 miles without a<br />
chargeable accident.<br />
Norlan Nelson and Ellen Kellar were presented their<br />
NTCA 30 Year Service Awards.<br />
NTCA Excellence in Leadership Awards were presented<br />
to Dennis Heer, Jeanette Hoff and Royce Aslakson by<br />
President Wilber and Vice-President Paul Wisness.<br />
There were drawings for door prizes.<br />
President Wilber called for unfinished business. There<br />
was none.<br />
President Wilber called for new business. There was<br />
none.<br />
Final prize drawings were held. Brenden Haakenson of<br />
the Roseglen exchange won the children’s bike, Warren<br />
Bratvold of the New Town exchange won the one year<br />
of free local telephone service, and Shirley Norby of the<br />
Keene exchange won the grand prize of $500 cash.<br />
A motion was made and seconded to adjourn the<br />
meeting. M/C<br />
Meeting adjourned.<br />
Respectfully submitted,<br />
Marlyn Froseth<br />
Secretary/Treasurer<br />
3.
Nominating Committee Minutes<br />
The Nominating Committee met Wednesday, May 18, 2011<br />
at 10:40 a.m. in the RTC HQ Conference Room in Parshall.<br />
Members present were Curt Wittmayer, Brad Baker, James<br />
Hansen, Denise Grantier, Karla Quale, Norlan Nelson, Robert<br />
Laumb, and John Sundeen.<br />
Motion was made by James Hansen and seconded by<br />
Curt Wittmayer to nominate Norlan Nelson as Chairman.<br />
Unanimous ballot was cast. M/C<br />
Motion was made by Curt Wittmayer and seconded<br />
by Denise Grantier to nominate Denese Westgard, RTC<br />
Administrative Assistant as Recording Secretary. M/C<br />
The Nominating Committee reviewed the packet they<br />
were given including the RTC Bylaws regarding the nomination,<br />
Minutes of 2010 Nominating Committee Meeting and election<br />
of board members and the Director Composition Report.<br />
Motion to approve the minutes was made by Robert Laumb<br />
and seconded by James Hansen. M/C<br />
The cooperative districts and current directors were reviewed.<br />
The Nominating Committee reviewed the signed Certification<br />
of Nominee forms completed by Terry Wilber, Jennifer Sorenson,<br />
and Marlyn Froseth.<br />
District 1B – Motion was made by Karla Quale and seconded<br />
by Denise Grantier to nominate Jennifer Sorenson. M/C<br />
District 2B – Motion was made by John Sundeen and seconded<br />
by Curt Wittmayer to nominate Terry Wilber. M/C<br />
District 3 – Motion was made by James Hansen and seconded<br />
by Robert Laumb to nominate Marlyn Froseth. M/C<br />
Chairman called for other business. Chairman Nelson agreed<br />
to read the Minutes of the Nominating Committee Meeting at the<br />
Annual Meeting.<br />
Motion was made by Curt Wittmayer and seconded by Robert<br />
Laumb to adjourn. M/C<br />
Meeting adjourned.<br />
Director Candidates<br />
Terry Wilber<br />
Incumbent Candidate<br />
District 2B<br />
(Mandaree, New Town, Ross)<br />
Terry Wilber has served on the RTC Board of Directors for 12 years. Terry is currently<br />
serving as RTC Board President and Director of District 2B.<br />
Terry Wilber was employed by Northrop Grumman in New Town having recently retired<br />
after 33 years, with over 26 years as the Plant Manager. He graduated from New Town High<br />
School and Dickinson State University with a degree in Business Administration.<br />
Terry is currently involved in a variety of organizations including the New Town Good<br />
Samaritan Center, New Town Health Support, Food Pantry, Osborne Township Board, New<br />
Town Industrial Development, Northwest Training Council and the Bethel Lutheran Church.<br />
Terry was involved in the startup and initial operation of TJMD, LLP, which performs oil to<br />
railcar loading and oilfield services.<br />
Terry has been married to Marcia since 1974 and they have three children: Dana, Mike,<br />
and Jesse; and seven grandchildren.<br />
When time allows Terry enjoys yard work, hunting, fishing, golfing and getting involved in<br />
projects that provide business development and employment opportunities in the area.<br />
4.
Director Candidates<br />
Marlyn Froseth<br />
Incumbent Candidate<br />
District 3<br />
(Kenmare, Norma, Spencer)<br />
Marlyn has been in the Kenmare area since 1961. He is a retired farmer, but now helps<br />
A & L Truck Sales moving trucks and trailers. After graduating from high school Marlyn enlisted<br />
in the United States Air Force for four years.<br />
Marlyn has served on the RTC Board of Directors for 33 years. He was President for seven<br />
years and is currently Secretary-Treasurer. Marlyn is also currently on the Trinity Lutheran Church<br />
Parish Council. He was previously on the Norma Co-op Elevator Board for 17 years, on which he<br />
served as president for several years, and the Kenmare Hospital Board for 12 years.<br />
Marlyn has been married to LaDonna for over 58 years. They have four children: JeAnne Ones,<br />
Gayla Froseth, Shawn Froseth, LaCinda Durham; six grandchildren: Lanelle Ramey, Ryan Ones, Justin<br />
Froseth, Tarra Froseth, Dayna Froseth, Cassandra Ottinger; and three great grandchildren: Grace Ones,<br />
Brooks Ones, and Grace Froseth.<br />
Marlyn enjoys farming, yard work, fishing, photography, playing cards and reading.<br />
Jennifer Sorenson<br />
Incumbent Candidate<br />
District 1B<br />
(Alexander, Arnegard, Keene,<br />
Squaw Gap, Watford City)<br />
Jennifer Sorenson has served on the RTC Board of Directors for three years. She and her husband<br />
Curtis farm and ranch five miles south of Watford City. Jennifer graduated from Watford City High<br />
School and North Dakota State School of Science. Jennifer has been a Certified Dental Assistant<br />
and Office Manager for local dentists and also has worked at First International Bank & Trust.<br />
Jennifer is the President of the Pioneer Museum and past President of the Watford City<br />
Lions. She is a member of First Lutheran Church, where she has served on the church<br />
council and as Sunday School teacher. Jennifer was also a 4-H leader for several years<br />
and enjoys volunteering and being active in the community.<br />
Jennifer and Curtis are happy to have son Jarvis, his wife Kadie, and three children<br />
join them on the family farm. Their daughter Erin, husband David, and two children<br />
also live in Watford City. Jennifer enjoys restoring old furniture, sewing, the outdoors,<br />
and spending lots of time with her grandchildren.<br />
5.
Joint Report<br />
6.<br />
Welcome to RTC’s 60th Annual Meeting. Thank you for the part you played<br />
in making 2010 a very successful year. As the late, great Vince Lombardi once<br />
said, “The achievements of an organization are the results of the combined<br />
efforts of each individual.”<br />
RTC’s 60th Anniversary<br />
Terry Wilber<br />
Board President<br />
RTC has come a long way from talking on a party line over copper wire<br />
strung on a fence post to surfing the net on a fiber optic wire. Freddie<br />
Ahlgren, RTC’s first General Manager, worried about things like crossing<br />
the Missouri River, plowing cable in the North Dakota Badlands, and<br />
meeting payroll. When Gene Sloan became RTC’s second General<br />
Manager in 1980, the question had changed to “what’s next?”<br />
Federal legislation and regulations have forced RTC from a<br />
regulated monopoly into competition. Competition in the<br />
rural areas has come with mixed blessings. Gone are the<br />
days when RTC could invest in a new service and count<br />
on a margin of profit.<br />
Royce S. Aslakson<br />
CEO/General Manager<br />
We have learned many things from the past but we still face the<br />
question and challenge of “what is next?” What technology do we pursue<br />
and how much do we invest in providing new services to our members.<br />
You can sum up RTC’s history with one word – change. Change in<br />
technology, change in demographics, and change in politics.<br />
Fiber and Video<br />
We continue to make progress with Fiber-to-the-home (FTTH)<br />
by focusing on the areas funded through the American Recovery and<br />
Reinvestment Act. Projects currently in the works are in the New Town,<br />
Mandaree, and Parshall exchanges among other miscellaneous projects.<br />
Along with our New Town FTTH project, we constructed a new Central<br />
Office in New Town, which will house all of the equipment required to<br />
serve the New Town exchange. In 2010 RTC completed FTTH projects<br />
in certain areas of the following exchanges: Emmet, Garrison, New Town,<br />
Kenmare, Mandaree, Norma, Parshall, Plaza, Ross, Spencer, Watford City,<br />
and White Shield.<br />
Our Video (TV) service area keeps growing. Customers who have<br />
previously not received RTC Video may now have the service when<br />
we plow FTTH in their area. We have also been working with new
equipment to expand our Video service area through coaxial cable. When<br />
new areas receive RTC Video service, customers are notified via mailings<br />
or home visits.<br />
We continue to add local content to our Video service. During the<br />
last session of the North Dakota Legislature, RTC provided live coverage<br />
of the Senate and House of Representatives. We also wrapped up our<br />
second year of broadcasting area high school sports on BEK Sports West.<br />
During the 2010/2011 sports seasons, RTC staffed and broadcasted 38<br />
LIVE events in eight communities in our service area along with several<br />
district, regional, and state tournaments.<br />
Regulatory Challenges<br />
In 2010 the Federal Communications Commission (FCC) released<br />
its National Broadband Plan, which proposes speeds 25 times slower<br />
in rural areas than in urban areas. Establishing such a low threshold for<br />
rural customers relegates them to second class broadband capacity. In<br />
the global economy, rural communities need access to quality, high-speed<br />
broadband for business, education, healthcare, and public safety. We feel<br />
our customers deserve comparable speeds at affordable prices.<br />
For rural carriers like RTC, the ability to fully recover costs is critical.<br />
Three general mechanisms affect cost recovery: universal service, intercarrier<br />
compensation, and local rates. This financial stability is being<br />
challenged and one of our major concerns is the viability of the universal<br />
service funding mechanism that was developed to establish affordable<br />
telecommunications service for all areas of the United States. RTC<br />
receives over one million dollars annually from this fund and would be<br />
forced to raise local rates dramatically if these funds are reduced.<br />
Finances<br />
As you can see from the financial statements in this<br />
report, <strong>Reservation</strong> <strong>Telephone</strong> <strong>Cooperative</strong> has had a very<br />
challenging and exciting year. Fortune 500 oil companies have<br />
moved into our service area in search of “Black Gold!” This is<br />
definitely an opportunistic time for the area we serve, but rapid<br />
growth requires major investment, which is costly. It will take time<br />
for revenues to catch-up with expenses and this process has an<br />
impact on the bottom line. Two areas with increased costs for RTC<br />
in 2010 were cable location costs and interim financing interest costs.<br />
RTC is restricted from retiring capital credits until two-thirds of the<br />
Stimulus Project has been completed.<br />
Thanks<br />
As we celebrate 60 years of telecommunication service, a large measure<br />
of thanks must go to the past and present employees and directors of<br />
RTC. These very special people are the heart and soul of RTC and we<br />
thank them for their many years of service. Our anniversary theme,<br />
“Celebrating 60 Years” has a lot of meaning for our directors and<br />
employees.<br />
In closing we thank you the member-owner for your business, loyalty,<br />
and friendship, all of which will be just as important in RTC’s future as<br />
it has been in the past. As a winning RTC TEAM let us strive to be<br />
Smarter. Better. Faster. than the competition. God bless you all<br />
and thanks for 60 years of memories and patronage.<br />
Keep smiling and everyone will wonder what you are up to!<br />
7.
OPERATING REVENUES: 2010 2009<br />
Local Service $ 2,444,406 $ 2,572,839<br />
Access Revenue 10,244,748 9,828,374<br />
Non-regulated Revenue 3,618,452 3,215,969<br />
Miscellaneous Revenue 1,393,716 1,241,953<br />
TOTAL OPERATING REVENUE $ 17,701,322 $ 16,859,135<br />
OPERATING EXPENSES:<br />
Plant $ 5,175,370 $ 4,628,203<br />
Depreciation 4,005,821 4,278,151<br />
Customer and Corporate 3,731,499 3,432,070<br />
Non-regulated 3,745,654 3,152,826<br />
TOTAL OPERATING EXPENSES 16,658,344 15,491,250<br />
NET OPERATING MARGIN $ 1,042,978 $ 1,367,885<br />
NET NON-OPERATING INCOME $ 653,513 $ 451,833<br />
NET MARGIN BEFORE INTEREST EXPENSE $ 1,696,491 $ 1,819,718<br />
INTEREST ON LONG-TERM DEBT $ 1,409,600 $ 1,106,798<br />
NET MARGINS $ 286,891 $ 712,920<br />
STATEMENT OF PATRONAGE CAPITAL:<br />
Patronage Capital - Beginning of Year $ 19,762,869 $ 19,400,925<br />
Net Margins for Period 286,891 712,920<br />
Federal Excise Tax Refund to Patrons 10,764 20,364<br />
Retirement of Capital Credits (262,868) (371,340)<br />
Patronage Capital - End of Year $ 19,797,656 $ 19,762,869<br />
8.
ASSETS (What We Own) 2010 2009<br />
Total <strong>Telephone</strong> Plant $ 88,867,797 $ 78,404,484<br />
Depreciation (52,526,092) (48,676,998)<br />
Net <strong>Telephone</strong> Plant $ 36,341,705 $ 29,727,486<br />
Cash and Investments 939,568 1,255,303<br />
Receivables 1,406,322 1,540,360<br />
Materials and Supplies 3,632,730 4,278,087<br />
Prepayments 132,260 107,556<br />
Total Current Assets $ 6,110,880 $ 7,181,306<br />
Net CATV 6,425,743 6,101,229<br />
Net Nonregulated 547,320 554,356<br />
Long-term Investments 2,983,609 2,650,813<br />
Deferred Charges 1,404,410 1,550,031<br />
Total Assets $ 53,813,667 $ 47,765,221<br />
LIABILITIES (What We Owe)<br />
Accounts Payable 1,652,318 738,210<br />
Advance Payments 52,972 49,025<br />
Accrued Taxes and Other Current Liabilities 305,644 284,096<br />
Current Portion of Debt 1,250,000 1,300,000<br />
Total Current Liabilities $ 3,260,934 $ 2,371,331<br />
Long-term Debt 30,418,666 25,306,660<br />
Deferred Credits 336,411 324,361<br />
Patronage Capital 19,797,656 19,762,869<br />
TOTAL LIABILITIES and CAPITAL $ 53,813,667 $ 47,765,221<br />
Auditor’s<br />
Report<br />
“We have audited, in accordance with auditing standards generally<br />
accepted in the United States of America, the balance sheets of<br />
<strong>Reservation</strong> <strong>Telephone</strong> <strong>Cooperative</strong> as of December 31, 2010 and<br />
2009, and the related statements of revenue and patronage capital and<br />
cash flows for the years then ended (not presented herein); and in our<br />
report dated May 9, 2011, we expressed an unqualified opinion on<br />
those financial statements.<br />
Eide Bailly LLP<br />
Certified Public Accountants & Consultants<br />
9.
10000<br />
8000<br />
8575 8690<br />
January 2010<br />
December 2010<br />
6000<br />
3765<br />
4233<br />
Growth in 2010<br />
4000<br />
2705 2864<br />
2000<br />
1643<br />
0<br />
413<br />
Video Data Voice Fiber-to-the-Home<br />
As of May 1, 2011 RTC had over 3,000 Video customers<br />
Video Packages<br />
18.1%<br />
Basic<br />
81.9 %<br />
Digital<br />
Cable Locating Impact<br />
Total<br />
Locates<br />
Monthly<br />
Average<br />
Locating<br />
Costs<br />
2009 10,911 909 $475,000<br />
2010 15,496 1291 $650,000<br />
Increase 4585 382 $175,000<br />
10.
Scholarships<br />
District 1A<br />
Brooke Johnson, a junior at Parshall High School, attended the 2011 Foundation for Rural Service (FRS)<br />
Annual Youth Tour June 4 - 8. Each year, in collaboration with National Telecommunications <strong>Cooperative</strong><br />
Association member companies, FRS brings rural students from across the United States to Washington, D.C.<br />
for a four-day tour.<br />
While in Washington, Brooke learned about the telecommunications industry, as well as the regulatory and<br />
legislative processes. She visited the U.S. Capitol and the U.S. Department of Agriculture, and met with industry<br />
leaders and members of Congress. Attendees were given ample time to explore the Nation’s Capital and its many<br />
attractions such as the Lincoln and Jefferson Memorials; The Korean, Vietnam and new World War II Memorials;<br />
Mount Vernon, home of George Washington; the Smithsonian Museums; and much more.<br />
Every year RTC randomly selects a school within their serving area. In turn that school selects a high school<br />
junior to attend the expense-paid FRS Youth Tour. Parshall High School was drawn this year and Brooke Johnson<br />
was selected. Brooke is a member of Parshall Future Business Leaders of America (FBLA) and Parshall Hi League<br />
church youth group. Brooke enjoys music, swimming, reading, camping, traveling and being with friends.<br />
Brooke Johnson<br />
District 1B<br />
District 2A<br />
District 2B<br />
FRS Youth Tour Winner!<br />
District 3<br />
Austin Patten<br />
Watford City High School<br />
Son of Dale and Joy Patten,<br />
Watford City exchange<br />
District 4<br />
Marti Quale<br />
Watford City High School<br />
Daughter of Randy and Anita Quale,<br />
Watford City exchange<br />
District 5<br />
Clare Wollschlager<br />
New Town High School<br />
Daughter of Kurt and Jackie<br />
Wollschlager, New Town exchange<br />
District 6<br />
Audrey Irwin<br />
Mandaree High School<br />
Daughter of Clarine Merle Irwin-<br />
Young Bird, Mandaree exchange<br />
At Large<br />
Katelyn Kostad<br />
Kenmare High School<br />
Daughter of Jan and Becky Kostad,<br />
Kenmare exchange<br />
Tia Paetz<br />
Parshall High School<br />
Daughter of Glenn and Dorinda<br />
Paetz, Parshall exchange<br />
Levi Tomlinson<br />
Max High School<br />
Son of Vance and Stacy Tomlinson,<br />
Max exchange<br />
McKaila Matteson<br />
Garrison High School<br />
Daughter of Michael and Tonee<br />
Matteson, Garrison exchange<br />
Kalin Mogen<br />
Watford City High School<br />
Son of Andy Mogen and Gayle<br />
Mogen, Keene exchange<br />
11.
Participating In Your<br />
Community<br />
Awards<br />
RTC employees were<br />
recently recognized at<br />
the Annual <strong>Telephone</strong><br />
Apprenticeship Training and<br />
Safety (AT&S) Conference. Barb<br />
Lee received her Customer<br />
Service Certification. Barb<br />
completed several AT&S<br />
courses totaling 90 hours on her<br />
own time. Barb is the third RTC<br />
employee to receive the award.<br />
Barb Lee<br />
RTC received a safe driving certificate for driving<br />
12,803,685 miles without a chargeable accident. Total<br />
mileage for 2010 was 765,046 miles. The following<br />
employees earned individual mileage awards:<br />
• 50,000 miles: Jarett Bauer, Jason Dupay, Vernon Snyder<br />
• 200,000 miles: Jim Riely, Erik Rensch<br />
• 300,000 miles: Ellen Kellar, Brooks Goodall<br />
• 350,000 miles: Ron Sanderson<br />
Also at the conference, RTC received the AT&S traveling<br />
trophy. This trophy is awarded to a company based on the<br />
number of employees attending workshops and safety meetings<br />
as well as completing AT&S courses on their own time.<br />
RTC’s new website<br />
was awarded<br />
the National<br />
Telecommunications<br />
<strong>Cooperative</strong><br />
Association’s (NTCA)<br />
Telechoice Award in<br />
the Website Category.<br />
12.<br />
Janell Lynne, Kristin Jaeger
Management<br />
Royce S. Aslakson<br />
CEO/General Manager<br />
Shane Hart<br />
Assistant General Manager<br />
Brooks Goodall<br />
Operations Manager<br />
Dennis Kellar<br />
Project Manager<br />
Denese Westgard<br />
Administrative Assistant<br />
David Aamot<br />
Financial Manager<br />
Kristin Jaeger<br />
Marketing Manager<br />
Tim Jarski<br />
Construction Manager<br />
Lisa Schenfisch<br />
Customer Service Manager<br />
Cory Johnson<br />
Outside Plant Manager<br />
13.
Monica Bangen<br />
Customer Service Rep<br />
Jarett Bauer<br />
Combination Tech<br />
Chad Betz<br />
Combination Tech<br />
Coordinator<br />
Jordan Berg<br />
Combination Tech<br />
Bob Blunck<br />
Video Tech<br />
Jerry Brien Jr.<br />
Utility Tech<br />
Brenda Brown<br />
Marketing Rep<br />
Malcolm Bruce Jr.<br />
Utility Tech Coordinator<br />
Carl Brunsell<br />
Utility Tech<br />
Judy Brunsell<br />
Customer Care Rep<br />
Ashley Campbell<br />
Customer Service Rep<br />
Tyrone Dahly<br />
Central Office Tech<br />
Richard Danks<br />
Utility Tech<br />
Drew Drosdal<br />
Combination Tech<br />
Jason Dupay<br />
Combination Tech<br />
Gretchen Edwards<br />
Accounting Assistant<br />
Teresa Elton<br />
Customer Care Rep<br />
Pat Fitzgerald<br />
Combination Tech<br />
Dave Fransen<br />
Utility Tech<br />
Nick Fredrickson<br />
Combination Tech Lead<br />
Debbie Hansen<br />
Customer Service Lead<br />
Jon Hansen<br />
Combination Tech<br />
14.
Shawn Harpole<br />
Central Office Tech<br />
Paul Hellebush<br />
Combination Tech<br />
Rick Hovda<br />
Cable Locator Coordinator<br />
Karen Huber<br />
Customer Service Rep<br />
Jeremy Huus<br />
Mapping Tech<br />
Lori Huus<br />
Customer Service Rep<br />
Eric Jaeger<br />
Data Network Tech<br />
Felicia Jarski<br />
CABS Coordinator<br />
Lori Johnson<br />
Customer Service Rep<br />
Mary Lou Johnson<br />
Accounting Assistant<br />
Ellen Kellar<br />
Field Engineer<br />
Colleen Kilber<br />
Customer Service Rep<br />
Brenda Kok<br />
Customer Care Lead<br />
Laurie Krueger<br />
Custodian<br />
Nathan Lahtinen<br />
Data Network Tech<br />
Gena Larson<br />
Customer Service Rep<br />
Barb Lee<br />
Customer Care Rep<br />
Jonathan Lee<br />
Accountant<br />
Daniel Leppell<br />
Data Network Tech<br />
Janell Lynne<br />
Marketing Rep<br />
Jessie Many Ribs<br />
Utility Tech<br />
15.
Belden Moberg<br />
Business Systems Tech<br />
Cody Moe<br />
Combination Tech<br />
Leslie Nelson<br />
Customer Service Rep<br />
Scot Ness<br />
Combination Tech<br />
Mary Nielsen<br />
Right of Way Specialist<br />
Jake Niemitalo<br />
Combination Tech<br />
Vicki Olson<br />
Customer Service Rep<br />
John Rodgers<br />
Utility Tech<br />
Joy Ruud<br />
Purchasing Agent<br />
Mike Ryan<br />
CO Tech Coordinator<br />
Ron Sanderson<br />
Cable Locator<br />
Dan Schilla<br />
Data Network Tech<br />
Mary Severance<br />
Accountant Coordinator<br />
Vernon Snyder<br />
Central Office Tech<br />
Pat Thunshelle<br />
Customer Service Rep<br />
David Uhlich<br />
Combination Tech<br />
James Vaagen<br />
Combination Tech<br />
Nancy Vorwerk<br />
Accounting Assistant<br />
Brad Vrem<br />
Central Office Tech<br />
Janice Warner<br />
Customer Service Rep<br />
16.
Summer and<br />
Part-time<br />
Employees:<br />
Doug Prock<br />
Data Network Tech<br />
Coordinator<br />
Erik Rensch<br />
Utility Tech<br />
Marcia Burckhard<br />
Stacey Dazell<br />
Dave Diffely<br />
Alan Engel<br />
Jericole Hart<br />
Tami Hauge<br />
Greg Oster<br />
Jim Riely<br />
Mike Steele<br />
Payton Two Crow<br />
Chance Westgard<br />
Emilee Wright<br />
Happy<br />
Retirement<br />
Jim Riely<br />
8 years of service with RTC<br />
43 years of telecom service<br />
Garrett Stubstad<br />
Combination Tech<br />
Chad Talbott<br />
Computer Tech<br />
Brett Wold<br />
Cable Locator<br />
Brian Wright<br />
Cable Locator<br />
17.
Canada<br />
North Dakota<br />
Norma<br />
467<br />
Service Area<br />
Spencer<br />
848<br />
Kenmare<br />
385<br />
Montana<br />
Williston<br />
Ross<br />
755<br />
Minot<br />
Arnegard<br />
586<br />
Alexander<br />
828<br />
Watford City<br />
842<br />
444 Keene<br />
675<br />
Mandaree<br />
759<br />
New Town Plaza<br />
627 497<br />
Parshall<br />
862<br />
Makoti<br />
726<br />
Roseglen<br />
743<br />
Ryder<br />
758 Douglas<br />
529<br />
Emmet<br />
337<br />
Max<br />
679<br />
Squaw Gap<br />
569 565<br />
Garrison<br />
463