2015-11-13T15:21:54-06:00 2014-12-31 930623286 AKT LLP 680 HAWTHORNE AVE SE 140 SALEM OR 97301 990 2014-01-01 930368760 BEAVER CREEK COOPERATIVE TELEPHONE COMPANY BEAV 5036323113 PO BOX 1189 MT ANGEL OR 97362 PAUL E HAUER PRESIDENT 5036323113 2015-11-03 1 RYAN M JOHNSON CPA P01048788 5035857774 2015-11-03 2014 2016-04-25 22:37:26Z PAUL HAUER PO BOX 1189 MT ANGEL OR 97362 8185974 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 30 0 63567 0 0 0 8636186 8184005 142710 47913 7872 -45944 8786768 8185974 0 12833 0 0 237437 106916 0 0 0 8852215 8841114 9089652 8960863 -302884 -774889 19095062 17575128 12504727 11772187 6590335 5802941 TO PROVIDE RELIABLE AND VALUED COMMUNICATIONS THROUGH PARTNERSHIS, TOGETHER WITH OUR COMMUNITY. 0 0 TO PROVIDE TELECOMMUNICATIONS SERVICES TO COOPERATIVE MEMBERS. AT DECEMBER 31, 2014 THERE WERE 3,505 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 28 0 30 1 0 0 0 0 0 0 0 5080259 327698 0 X 5 5 0 1 0 0 1 1 1 1 0 0 0 0 1 0 1 1 0 1 1 1 0 OR X PAUL HAUER PRESIDENT 5036323113 15223 S HENRICI RD OREGON CITY OR 97045 MATT CARLSON VICE-CHAIRMAN 1.00 X X 2480 0 0 ROBERT C GEORGE DIRECTOR 1.00 X 2220 0 0 GARY EMMONS SECRETARY/TREASURER 1.00 X X 4180 0 0 DONALD KELLY DIRECTOR 1.00 X 1587 0 0 WILLIAM MERCHANT CHARIMAN 1.00 X X 4480 0 0 REX HAGANS DIRECTOR 1.00 X 575 0 0 MARK S BEAUDRY VP OF OPERATIONS 40.00 X 73559 0 17835 PAUL HAUER PRESIDENT 40.00 X 0 192112 11738 89081 192112 29573 0 0 1 0 CHR SOLUTIONS INC PO BOX 1450 MINNEAPOLIS MN 55485 SOFTWARE & BILLING SUPPORT 274101 COVENANT TECHNOLOGY SOLUTIONS 15 82ND DR STE 120 GLADSTONE OR 97027 COMPUTER AND CORPORATE NETWORK SUPPORT 190506 MATTON UTILITY INC 20219 S SPRAGUE RD OREGON CITY OR 97045 CONTRACTOR AND OUTSIDE PLANT CONSTRUCTIO 156031 3 TELECOMMUNICATIONS 517000 8184005 8184005 8184005 47913 47913 123987 0 123987 123987 123987 EQUITY LOSS IN SUB 517000 288475 288475 DIRECTORY REVENUE 541800 63567 63567 PARTNERSHIP INCOME-OCG 517000 18 18 -521991 -521991 -169931 8185974 7950507 63567 171900 X 12833 106916 619740 1649221 CATV 1341799 PLANT SPECIFIC 1233784 PLANT NON-SPECIFIC 914481 CUSTOMER 806441 2275648 8960863 192745 7430 1366621 869767 185096 165122 99961 81206 41551446 26902199 15681742 14649247 1561642 1780205 7255 22151 19095062 17575128 2730797 1738175 11499 9488394 9947122 274037 86890 12504727 11772187 X 3380 3327 0 0 6586955 5799614 6590335 5802941 19095062 17575128 X -774889 -37 -12468 X 0 1 X 1 0 249228 249228 3819252 2316953 1502299 37481773 24585246 12896527 1193 1193 14649247 INVESTMENTS IN NONAFFILIATES 1559063 C INVESTMENTS IN SUBSIDIARY 221142 C 1780205 CUSTOMER DEPOSITS 25425 POST RETIREMENT BENEFITS 61465 86890 X 8641254 452140 452140 8189114 -3140 -3140 8185974 9413003 452140 452140 8960863 0 8960863 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 FINANCIAL STATEMENTS RELATED TO UNCERTAIN TAX POSITIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUE NETTED WITH EXPENSES PART XI, LINE 4B - OTHER ADJUSTMENTS: PARTNERSHIP INCOME/(LOSS) PART XII, LINE 2D - OTHER ADJUSTMENTS: REVENUE NETTED WITH EXPENSES 1 SCHOLARSHIPS 11 12833 0 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 192112 0 0 0 0 0 0 0 11738 0 203850 0 0 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. ANYPROVISIONS RELATING TO THE RIGHTS AND LIABILITIES OF MEMBERHSIP 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 11 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 CORPORATE 784,131. INTERNET 722,591. LONG DISTANCE 242,962. WIRELESS 202,249. PROPERTY TAXES 190,909. NON-REGULATED EXPENSES 132,806. FORM 990, PART XI, LINE 9: PARTNERSHIP INVESTMENTS 3,140. NET INCREASE/(DECREASE) IN MEMBERSHIP -53. OTHER CAPITAL CREDIT ACTIVITY, NET -15,555. 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 RANDAX LLC 15223 S HENRICI RD OREGON CITY OR 97045 870730355 INTELLECTUAL PROPERTY LICENSING OR TELSYSTEMS WEST INC UNRELATED 0 0 0.85740 CONSOLIDATED BUSINESS SERVICES LLC PO BOX 1189 MT ANGEL OR 97362 460797674 MANAGEMENT SERVICES OR UNRELATED 549792 140550 0 0 0.33330 TELSYSTEMS WEST INC AND SUBSIDIARIES 15223 S HENRICI RD OREGON CITY OR 97045 930844023 TELECOMMUNICATIONS INVESTMENTS OR BEAVER CREEK COOPERATIVE TELEPHONE C 53 716662 1.00000 0 MEGAVAIL INC 15223 S HENRICI RD OREGON CITY OR 97045 931256459 TELEVISION ADVERTISEMENT INSERTION OR TELSYSTEMS WEST INC C 28412 82232 0.91180 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 1 CONSOLIDATED BUSINESS SERVICES M 387842 FAIR MARKET VALUE TELSYSTEMS WEST INC J 522472 FAIR MARKET VALUE TELSYSTEMS WEST INC S 167988 FAIR MARKET VALUE