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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

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