Beaver Creek Cooperative Telephone Company

“On august 1, 2013, the company's president became an employee of consolidated business services, llc and began providing executive management services to the company. The company also began receiving financial executive management services from an employee of the same llc.”

“The organization operates as a telephone cooperative consisting of members. To be eligible for membership a person must: (i) receive telecommunication service from the cooperative, as such phrase is defined from time to time by the board; (ii) reside in the cooperative's service area, as determined from time to time by the board; (iii) provide a continuing or periodic communication revenue stream for the cooperative. Any two persons who occupy the same household, may apply for a joint memberhsip and, subject to their compliance with the requirements set forth (as described above) may be accepted for such membership upon application by both parties. Any provisions relating to the rights and liabilities of membership shall apply equally with respect to the holders of a joint membership.”

“Members of the governing body are elected by vote. No member may hold more than one membership in the cooperative. Each member shall be entitled to one vote. The board of directors may cause to be submitted by mail ballot any questions to be voted at any meeting of the members including the election of directors. The ballot may be cast only in a sealed envelope which is authenticated by the member's signature. A vote so cast shall be counted as if the member were present and voting in person. An election committee of not less than three (3) persons shall be appointed by the board of directors sufficiently in advance of the meeting, to ensure validation of the mailed ballots. In the exercise of its responsibility, the election committee shall have available to it the advice of counsel provided by the cooperative. The election committee's decisions shall be final.”

“Bylaws may be amended or repealed by vote of a majority of the members present, or, when authorized, voting by mail as well as in person, at any regular or special meeting of the members, provided that notice of the meeting shall have contained a notice of the proposed amendment or repeal. However, the provisions relating to the vote required for sale or lease of substantially all or part of the property of the cooperative other than in the regular course of business shall not be amended or repealed except by the affirmative vote of not less than two-thirds of all the members of the cooperative at any annual or special meeting.”

“The organization does not have committees with authority to act on behalf of the governing body.”

“The form 990 is prepared by a third party. The president/ceo has the opportunity to review the prepared document prior to signing.”

“Employees have an obligation to conduct business within guidelines that prohibit actual or potential conflicts of interest. Employees are to contact their manager for more information or questions about conflicts of interest. No "presumption of guilt" is created by the mere existence of a relationship with outside firms. However, if employees have any influence on transactions involving purchases, contracts, or leases, it is imperative that they disclose to the president of bct as soon as possible the existence of any actual or potential conflict of interest so that safeguards can be established to protect all parties.”

“Compensation of key employees and top management is determined through comparability data including independent salary surverys. Compensation of the ceo is part of the management services agreement with consolidated business services, llc.”

“Governing documents and financial statements are available upon request.”

“Customer 646,332. Plant non-specific 471,985. Long distance 261,544. Wireless 165,156. Property taxes 126,583. Non-regulated expenses 109,488.”

“Net increase/(decrease) in membership 268. Other capital credit activity, net -7,770. Partnership investments -4,275. Other adjustments 1. Equity loss in subsidiary -7,412.”