2019-07-22T16:13:32-05:00 2018-12-31 930623286 ALDRICH CPAS AND ADVISORS LLP 680 HAWTHORNE AVE SE 140 SALEM OR 97301 990 2018-01-01 930368760 BEAVER CREEK COOPERATIVE TELEPHONE COMPANY BEAV 5036323113 PO BOX 1189 MT ANGEL OR 97362 PAUL E HAUER PRESIDENT 5036323113 2019-06-04 1 KATHY A GORDON CPA P00016213 5035857774 2019-05-31 69.30.50.66 2019-06-04 14:55:15 PD P D5360354680F091396168622AB142CE8ADE9AC72 D5360354680F091396168622AB142CE8ADE9AC72 2018 2019-02-21 02:37:17Z PAUL E HAUER PO BOX 1189 MT ANGEL OR 97362 7298149 0 X WWW.BCTELCO.COM X 1904 OR TO ENGAGE ON A COOPERATIVE BASIS IN COMMUNICATIONS AND INFORMATION SERVICES AND IN THE PROVISION OF ANY AND ALL OTHER KINDS OF COMMUNICATIONS SERVICES AND OTHER SERVICES WHICH UTILIZE COMMUNICATIONS FACILITIES WITHIN THE TERRITORY CONTIGUOUS TO BEAVERCREEK, OREGON, AND SUCH OTHER TERRITORIES AS THE COOPERATIVE CONSIDERS PRACTICAL. 5 5 24 0 0 0 0 0 7325772 7221437 12112 10137 89827 66575 7427711 7298149 4750 7000 0 0 115911 127104 0 0 0 7656418 7530215 7777079 7664319 -349368 -366170 13182237 12133538 8617532 7948585 4564705 4184953 TO PROVIDE RELIABLE AND VALUED COMMUNICATIONS THROUGH PARTNERSHIPS, TOGETHER WITH OUR COMMUNITY. 0 0 TO PROVIDE TELECOMMUNICATIONS SERVICES TO COOPERATIVE MEMBERS. AT DECEMBER 31, 2018 THERE WERE 2,757 ACCESS LINES. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 31 0 24 1 0 0 0 0 0 0 0 4782143 147560 0 0 0 X 5 5 0 1 0 0 1 1 1 1 0 0 0 0 1 0 1 1 0 1 1 0 X PAUL HAUER PRESIDENT 5038454434 PO BOX 1189 MT ANGEL OR 97362 MATT CARLSON VICE-CHAIRMAN 1.00 X X 1617 0 0 GARY EMMONS SECRETARY/TREASURER 1.00 X X 4626 0 0 TAMMY STEVENS DIRECTOR 1.00 X 1400 0 0 WILLIAM MERCHANT CHARIMAN 1.00 X X 4200 0 0 VICKI SMITH DIRECTOR 1.00 X 2650 0 0 PAUL HAUER PRESIDENT 40.00 X 0 231965 17221 DAVID WARNER VICE PRESIDENT OF ENGINEER 40.00 X 90037 0 22574 104530 231965 39795 0 0 1 0 CONSOLIDATED BUSINESS SERVICES LLC PO BOX 1189 MT ANGEL OR 97362 ACCOUNTING/MANAGEMENT/REGULATORY 657551 MATTON UTILITY 20219 S SPRAGUE RD OREGON CITY OR 97045 EXCAVATION 171936 2 TELECOMMUNICATIONS 517000 7208685 7208685 PARTNERSHIP INCOME-CBS 517000 12085 12085 PARTNERSHIP INCOME-OCG 517000 667 667 7221437 10137 10137 66575 0 66575 66575 66575 7298149 7221437 0 76712 X 7000 127104 328421 1394492 CATV 1269621 PLANT SPECIFIC 1086166 CORPORATE 1070237 INTERNET 954087 1427191 7664319 125528 26356 616875 618252 90221 97365 88830 71546 37800232 27349047 11357522 10451185 903261 868834 13182237 12133538 1872076 1823156 6683041 6070294 62415 55135 8617532 7948585 X 4120 4415 0 0 4560585 4180538 4564705 4184953 13182237 12133538 X -366170 -13582 X 0 1 X 1 0 92103 92103 3860222 2778503 1081719 33847907 24570544 9277363 10451185 INVESTMENTS IN NONAFFILIATES 757534 C INVESTMENTS IN SUBSIDIARY 111300 C 868834 CUSTOMER DEPOSITS 11035 POST RETIREMENT BENEFITS 44100 55135 X 7285397 0 7285397 12752 12752 7298149 7665444 1125 1125 7664319 0 7664319 PART X, LINE 2: THE COMPANY FOLLOWS ACCOUNTING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA RELATED TO THE RECOGNITION OF UNCERTAIN TAX POSITIONS. THE COMPANY RECOGNIZES ACCRUED INTEREST AND PENALTIES ASSOCIATED WITH UNCERTAIN TAX POSITIONS AS PART OF THE INCOME TAX PROVISION, WHEN APPLICABLE. THERE WERE NO AMOUNTS ACCRUED IN THE CONSOLIDATED FINANCIAL STATEMENTS RELATED TO UNCERTAIN TAX POSITIONS. PART XI, LINE 4B - OTHER ADJUSTMENTS: PARTNERSHIP INCOME/(LOSS) PART XII, LINE 2D - OTHER ADJUSTMENTS: OTHER ADJUSTMENTS EQUITY LOSS IN SUBSIDIARY 1 SCHOLARSHIP 10 7000 SCHEDULE I PART 1 QUESTION 2 BEAVER CREEK COOPERATIVE TELEPHONE COMPANY MAINTAINS A SCHOLARSHIP FUND FOR THE BENEFIT OF ITS MEMBERS AND FAMILIES. THE PURPOSE OF WHICH IS TO RECOGNIZE AND PROVIDE FINANCIAL ASSISTANCE TO STUDENTS PURSUING EDUCATION IN ANY DEGREE AT AN ACCREDITED FOUR YEAR COLLEGE, CLACKAMAS COMMUNITY COLLEGE, A COMMUNITY COLLEGE, OR A TRADE/TECHNICAL SCHOOL. THIS SCHOLARSHIP FUND IS SUBJECT TO THE FOLLOWING RULES AND REGULATIONS. 1. TO BE ELIGIBLE THE CANDIDATE MUST BE A BEAVER CREEK COOPERATIVE MEMBER OR AN IMMEDIATE FAMILY MEMBER LEGALLY RESIDING IN THE MEMBER HOUSEHOLD ON THE DATE OF THE INITIAL AWARD OF SCHOLARSHIP. 2. IF CANDIDATES ARE ATTENDING HIGH SCHOOL, THEY MUST HAVE A CUMULATIVE 3.0 ("B) AVERAGE OR HIGHER. 3. AFTER INITIAL AWARD, WHILE ATTENDING COLLEGE, A MINIMUM AVERAGE OF 2.5 ("C+) MUST BE MAINTAINED WHILE CARRYING A FULL SCHEDULE (12 HOURS) TO REMAIN ELIGIBLE FOR FUTURE DISBURSEMENTS. 4. THE RECIPIENT MUST ATTEND A COLLEGE CERTIFIED BY THE NORTHWEST ACCREDITATION ASSOCIATION OR RECOGNIZED BY THE NATIONAL ASSOCIATION OF TRADE AND TECHNICAL SCHOOLS. 5. APPLICATION MUST BE ON THE OFFICIAL BEAVER CREEK APPLICATION FORM AND RECEIVED BY THE COMPANY BY THE DUE DATE DETERMINED ANNUALLY. 6. SELECTION SHALL BE MADE BY A COMMITTEE APPOINTED BY THE COMPANY BOARD OF DIRECTORS. APPLICATIONS SHALL BE MODIFIED TO REMOVE NAMES SO A "BLIND SELECTION PROCESS CAN BE MADE WITHOUT INFLUENCE OF CANDIDATE NAMES. 7. AWARDS ARE PAYABLE IN EQUAL QUARTERLY OR SEMESTER INCREMENTS AS DETERMINED BY THE STUDENT'S PLAN OF STUDY. 8. PAYMENT OF THE CURRENT PORTION OF THE SCHOLARSHIP MAY BE MADE DIRECTLY TO THE COLLEGE UPON SUBMISSION OF VERIFIED REGISTRATION AT AN APPROVED SCHOOL AND RECEIPT OF A COPY OF A TRANSCRIPT IF A RETURNING STUDENT. TERMINATION OF THE STUDENT'S SCHOOL PROGRAM WILL RESULT IN THE CANCELLATION OF THE AWARD AND ANY REMAINING FUNDS WILL NOT BE DISBURSED. 0 0 0 PAUL HAUER PRESIDENT 0 231965 0 0 0 0 0 0 0 17221 0 249186 0 0 PART I, LINE 3 THE MEMBER COMMITTEE OF CONSOLIDATED BUSINESS SERVICES LLC (CBS LLC), WHICH INCLUDES 2 BOARD MEMBERS OF BEAVER CREEK COOPERATIVE TELEPHONE COMPANY, RECEIVES COMPENSATION INPUT FROM EACH OF THE CBS LLC MEMBERS WHERE PAUL IS THE CEO; THE COMMITTEE CONFERS AND DETERMINES HIS COMPENSATION. PAUL HAS AN EMPLOYMENT CONTRACT WITH CBS LLC. FORM 990, PART VI, SECTION A, LINE 3 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. FORM 990, PART VI, SECTION A, LINE 6 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. FORM 990, PART VI, SECTION A, LINE 7A 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. FORM 990, PART VI, SECTION A, LINE 7B 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. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY A THIRD PARTY. THE PRESIDENT/CEO HAS THE OPPORTUNITY TO REVIEW THE PREPARED DOCUMENT PRIOR TO SIGNING. FORM 990, PART VI, SECTION B, LINE 12C 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. FORM 990, PART VI, SECTION B, LINE 15 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. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 24E PLANT NON-SPECIFIC 551,904. CUSTOMER 476,388. PROPERTY TAXES 132,013. WIRELESS 105,217. LONG DISTANCE 82,207. NON-REGULATED EXPENSES 79,462. FORM 990, PART XI, LINE 9: NET INCREASE/(DECREASE) IN MEMBERSHIP 295. PARTNERSHIP INVESTMENT INCOME NOT RECORDED FOR BOOK PURPOSES -12,752. OTHER ADJUSTMENTS 2. EQUITY LOSS IN SUBSIDIARY -1,127. BEAVER CREEK CHARITABLE TRUST 15223 S HENRICI RD OREGON CITY OR 97045 931290592 PRIVATE OPERATING FOUNDATION OR 501(C)(3) 170(B)(1)(A)(VII) BEAVER CREEK COOPERATIVE TELEPHONE COMPANY 0 CONSOLIDATED BUSINESS SERVICES LLC PO BOX 1189 MT ANGEL OR 97362 460797674 MANAGEMENT SERVICES OR RELATED 894761 190265 0 0 0.33330 TELSYSTEMS WEST INC 15223 S HENRICI RD OREGON CITY OR 97045 930844023 TELECOMMUNICATIONS INVESTMENTS OR BEAVER CREEK COOPERATIVE TELEPHONE C 581486 1.00000 0 MEGAVAIL INC 15223 S HENRICI RD OREGON CITY OR 97045 931256459 TELEVISION ADVERTISEMENT INSERTION OR TELSYSTEMS WEST INC C 54064 0.91180 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 CONSOLIDATED BUSINESS SERVICES M 657551 FAIR MARKET VALUE TELSYSTEMS WEST INC F 51000 FAIR MARKET VALUE