RTC NETWORKS 71st ANNUAL MEETING MINUTES

The 71st Annual Meeting of Reservation Telephone Cooperative doing business as RTC Networks was held on Thursday, June 9, 2022 at 6:30pm. The meal was provided by the 4 Bears Event Center staff and registration was held from 5:00 p.m. to 6:30 p.m. Daniel Johnson played the National Anthem.

President Jeanette Hoff called the meeting to order. Mr. Wayne Johnson gave the invocation.

President Hoff appointed Human Resources Manager Gretchen Edwards as Recording Secretary and RTC Networks Attorney Alicia Brenna as Parliamentarian of the meeting. President Hoff announced there were 155 members registered and there was a quorum.

President Hoff introduced the Board of Directors, Attorney Alicia Brenna, CEO/GM Shane Hart and Chief Financial Officer Jon Lee. Special guests attending were also introduced.

A motion was made and seconded to dispense with the reading of the Notice of the 2022 Annual Meeting and Proof of Mailing. M/C

A motion was made and seconded to dispense with the reading of the 2021 70th Annual Meeting Minutes and to approve as per copy in the Annual Meeting book. M/C

A motion was made and seconded to dispense with the reading of the 2022 Nominating Committee minutes and to approve as per copy in the Annual Meeting book. M/C

Secretary-Treasurer Jennifer Sorenson presented the candidates for director districts. Candidate for District 1A is Wayne Skarda. Candidate for District 4 is Jeanette Hoff. Candidate for District 6 is Barbara Steinmetz. All candidates are running unopposed.

A motion was made and seconded to cast a unanimous ballot for Wayne Skarda for District 1A, Jeanette Hoff for District 4 and Barbara Steinmetz for District 6. M/C

Secretary-Treasurer Sorenson introduced RTC Networks employee Dar Huus and asked her to kick off the drawings for door prizes.

President Hoff introduced Chief Financial Officer Jon Lee.

CFO Lee presented the audit report. CFO Lee stated auditor Moss Adams gave RTC Networks a clean, unmodified audit opinion for 2021.

CFO Lee reported RTC Networks generated over $47 million in revenue last year. Net margins for 2021 totaled $12,756,574 and assets rose to more than $167 million.

In summary, CFO Lee stated 2021 was another successful year for RTC Networks.

A motion was made and seconded to approve the 2021 Audit Report as presented. M/C

President Hoff and CEO/GM Shane Hart gave a joint report.

CEO/GM Hart welcomed members and stated things at RTC Networks are moving fast and the cooperative had another very successful year.

President Hoff reported the purchase of Midstate Telephone Company and Midstate Communications was completed on December 31, 2021. Our service area has increased by almost 40% and now covers 11% of the state of North Dakota in square miles.

CEO/GM Hart spoke about working diligently to integrate the telephone switch platforms, internet access and transport technologies, plant records, billing and accounting systems into one common network of systems.

President Hoff stated our goal is to get fiber to each home and business across all of our service area. The only areas with no fiber are some of the cabin sites. We continue to evaluate areas needing access and making necessary investments as we are financially able to do so.

CEO/GM Hart reported that RTC Networks fiber-based service allows for extremely fast internet of up to 1 Gig at homes or 10 Gig for businesses. Also available to all RTC Networks members, is an app which protects devices from both viruses and malware as well as controlling your home wi-fi.

President Hoff reported that the Board of Directors approved a general capital credit retirement for service years 1993, 1994, and 1995 which totaled just over $2.1 million.

CEO/GM Hart reported that part of the retirement of capital credits requires RTC Networks to have each member’s tax ID number for issuing 1099s. Please make sure to update your information with RTC Networks to ensure you receive all capital credits due to you.

President Hoff reported the RTC Networks Board of Directors increased the opportunities for college scholarships to students in our local communities. This year 29 college scholarships were awarded, totaling $39,500. The scholarship recipients are listed in our annual meeting book.

President Hoff and CEO Hart thanked Daniel Johnson for playing the national anthem, Wayne Johnson for the invocation and the 4 Bears Event Center staff for their work preparing the venue and meal. President Hoff thanked her fellow board members for their support and service as directors of RTC Networks.

CEO/GM Hart recognized and thanked the employees that work at RTC Networks every day and directed members to the annual meeting book to see the employees that serve them.

President Hoff thanked the member/owners for their patronage and their collaboration with the employees and directors to work towards the same goal of success as a cooperative.

There were drawings for door prizes.

President Hoff called for unfinished business. There was none.

President Hoff called for new business. There was a question regarding discounted internet service for snowbirds.

There was a drawing for the Grand prize, a trip to Medora.

There was a motion and second to adjourn. President Hoff adjourned the meeting.

Respectfully submitted,

Gretchen Edwards Recording Secretary