20030507Application.pdf

GIVENS PURSLEY LLP
LAW OFFICES Gary G.Allen FranklinG.Lee Michael C.Orr
277 North 6th Street,Suite 200 Christopher J.Beeson David R.Lombardi KennethL.Pursley
PO Box 2720,Boise,Idaho83701 Jessica M.Borup D.David Lorello,Jr.BradleyV.Sneed
TELEPHONE:[phone] William C.Cole Kimberly D.Maloney H.Barton Thomas
FACSIMILE:208 388-1300 Michael C.Creamer John M.Marshall Conley E.Ward
WEBSITE:www.givenspursley.com Emily MacMaster Durkee Kenneth R.McClure Robert B.White
Thomas E.Dvorak Kelly Greene McConnell
Roy LewisEiguren CynthiaA.Melillo Raymond D.Givens
Timothy P.Fearnside Christopher H.Meyer JamesA.McClure
Jeffrey C.Fereday Kendall L.Miller StephanieC.Westermeier
Steven J.Hippler L.Edward Miller oFcouNsa
Karl T.Klein Patrick J.MillerDirectDial(208)388-1219 Debora K.Kristensen Judson B.Montgomery John A.Miller,LL.M.*
E-Mail:cewaiverispurslev.com Anne C.Kunkel Angela K.Nelson TAXCONSULTANT
Deborah E.Nelson W.Hugh O'Riordan ucensedan Kentuckvonly
May 7,2003 i 2 ,:=
VIA HAND DELIVERY --
Mr.Terri Carlock o
Idaho Public Utilities Commission ip =
472 W.Washington EE E
P.O.Box 83720 CASE REOPENED E ::osBoise,ID 83720-0074
Re:Direct Communications Rockland
Our File:1257-31
Dear Terri:
This letter is a follow-up to our conversation last week about the Direct Communications
Rockland loan.As you see from the attached documents,Rockland originally applied to
Rural Utilities Service ("RUS")for a loan in the amount of $3,316,000.The Comn sion
approveda loan for that amount on October 24,2001 in Order No.28880,Case N .DCM-T-01-/
1.A copy of Order No.28880 is attached for your convenience.
Unfortunately,when the contemplated capital improvements were actuallybid out,the
central office improvements came in at almost $700,000 more than the loan design
contemplated,as you can see from the attached loan budget and earlier documents.
Consequently,RUS reworked the loan into two separate loans of $2,5 -0.0]rom RUS and
$1,489,950 from the Rural Telephone Bank,for a new loan total o $4,050,95Qi This change did
not come to our attention until we received the documents for the loan closing,which must occur
by May 30th to avoid the loan approval lapsing.
Under these circumstances,it would appear that the Commission could best serve
the public interest by amending its Order No.28880,pursuant to Section 61-624,Idaho Code,to
approve the two loans described above rather than the original $3,316,000 amount.I would very
much appreciate it if Staff would bring this matter to the Commission's attention and,hopefully,
support the requested amendment.Otherwise,Direct will have to go tliroughthe whole loan
approval process again.
Mr.Terri Carlock
May 7,2003
Page 2
If you have any questions or concerns,please give me a call.
SincÑel ,
Coaley War
CEW/tns
Enclosure
cc:Leonard May
S:\CLIENTS\l257\31\CEWto Carlock re RUS loan.DOC
USDA
MiniliiiE
United States Department of Agriculture
Rural Development
Rural Business<ooperative Service ·Rural Housing Service -Rural Utilities Service
Washington,DC 20250
Mr.Leonard A.May SEP 2 7 2002
President
Direct Cornmunications Rockland,Inc.
P.O.Box 269
Rockland,Idaho 83271
DearMr.May:
We are pleased to advise that a loan in the amount of $2,561,000 from the Rural Utilities Serviceandaloanintheamountof$1,489,950 from the Rural TelephoneBank have been approvedforyourorganization.The interest rate for each advancewill be determined in accordance with ourletterofSepternber26,2002.Subsequentto our letter of September26,2002,we revised the"Forecast of Revenuesand Expenses"and a revised copy is enclosed.
The loan contract and other documents will be forwarded in the near future for execution.Thisloanisapprovedwiththeunderstandingthattheloancontractwillbeauthorizedand.executed byyourorganizationandreturnedtousbythedate,which will be set forth in the letter transmittingtheinzagimmt
IER H.BRENT,Director
£40 jhwest Area
Enclosure
Mural DevelopmanHn un Equal OpponankyLanderCompininksofdiscriminullenshoukibuwant10:Suorwinty of AgricuburdNachington,DG 20250
CORPORATE NAME AND ADDRESS
FORECAST OF REVENUES AND.EXPENSES DIRECT COMMUNICATIONS ROCKLAND,IN
ROCKLAND,ID
LOAN DESIGNATION SUBSCRŒERFORECAST
jIDAHO 513-DI2 ROCKLAÑD 1.732
LLocal Network Service Revenues*.........,....................................................5665,55
2.Access,Long Distance Metwork.and Carñer.Billing &Collection Revenuei ...........3,805,037
3]vliscellaneous Revenues...........................,.........................................................I5,068
4.Less Uncollectible Revenues.....................................................--0
5.Net Operating Revenues..........................................................................................54 485,663
6.Plant Specific Operations Expense.,.......................................................................5865,567
7 Plant Nanspeciñc Operations Eppenke.........................................................115,975
8 epreciation EY,petise.......L,.................................,:......,.............................1,636 n3
B.Amortizador Extense.........................................0
10.Customer Operations Expense........................,....................................,247,122
11.Corporate Operations.Expense..............................................694,878
12.Other Operating Income and&ipense...........................................................O
13.Taxes Excluding E.ÏX ......................................................................158,686
14.TotalFixedCharges (3nter st).....................................................................812,307
15.Nonoperating Net Income expressed with the opposite arithmetic sign)..............(7,267)
16.E:draordinary Items....................--..2.--.........0
17.0
18.Nonregulated Net Income....................................................,......................(68,141)
19.TotäbExpenses,Excluding Federal Income Taxes....;:..............................................54 455,999
20.Ñet Income Before Pederal Income Taxes.........................,............$29,664
21.Federal Income Taxes...............................................................................2,..,..,........4,450
22.Net Ïncome After Federal Income Taxes.........................................................,..........$25,214
23.AddImerest..............................................................................812,307
24,Net Operating Income.........................................................................5837,521
$5 Äda Dept iÈËL Ënd Amettization............................1..,,.....1,63(gST3
GOAvåbble For Interent Aiíd PrincipáfPa mems...........................12,474,394
27.Scheduled laterest And Principal Payments.............................................1,938,080
28.Available Por Plant Additions,Replacements,Etc.............................................,.....5536,314
29.Times Interest Earned Ratio (Line 24 /Line 23)................-...........--....-.........................-..LO3
ltem 14 (interett)
Outstandingloathälattee(0......«@ 4.71%$2,259,809.00 =,$389,089
Ourren):Loan ........x.,..,.........@ 4.90%$4,050,450.00 =$198,450
TotainatsidàÈinancittg.............@ 7.03%$3,198,08100 =$224,768
Totr£1Interest...........................--............,....................................................$812,307
Local Service Revemer Bused DukpprovedRates
USDA
UriÍted States Department of Agriculture
Rural Development
Rural Business-Cooperative Service -Rural Housing Service -Rural Utilities Service
Washington,DC 20250
SEP 2 6 2002
Mr.Leonard A.May
President
Direct Communications Rockland,Inc.
P.O.Box 269
Rockland,Idaho 83271
Dear Mr.May:
We have completed the preliminary studies of your organization's "D"loan application and are
submitting the results of these studies for your consideration.They show that your organization
qualifies for a hardship loan from the Rural UtilitiesService (RUS).However,in accordance with
7 CFR 1735.30 (d),your application has an insufficient hardship point total to receive a hardship
loan this quarter.Based on telephone conversationswe had with Mr.Garin Bott,we understand
that your organization has requestedconcurrent loan funds so that your loan can be approved this
Fiscal Year (FY)rather than wait to see if you would succeed in receiving a hardship loan next
quarter.
Accordingly,concurrent loans in the amount of $2,561,000made by theRUS and $1,489,950
made by the Rural Telephone Bank (RTB)will be required.The concurrent loan ratio between
RUS and the RTB is based on the total amount of funds appropriated for Fiscal Year 2002 for
RUS cost-of-money loans and RTB loans.Both loans will bear interest at the rate applicable to
each advanceof loan funds based on the averageyield on outstanding marketable obligations of
the United States having a final maturity comparableto the final maturity of the advance.The
RUS loan interest rate will be fixed at the time of each advance.The interest rate on the RTE loan
advancewill be an interirn rate.A permanentinterest rate will be determined on the RTE loan
advanceat the end of the fiscal year in which the advance is made based on the RTB's cost-of-
money rate for that fiscal year.Interest rates of 4.84 percent for the RUS loan and 5.00 percent for
the RTE loan were used in our feasibility study.It should be understood that this letter is not a
commitment that a loan will be approved.
Our studies show that $3,980,000 of the abovefunds will be needed to cormect 367 new
subscribers and provide for systern improvements including placement of DWDM SONET
equipment at its fiber regeneration sites,the upgrade of central ofñces,placement of 10 DLC units
throughout the Paris exchange and replacementof all air core cable in the Paris exchange.In
addition to funds required for construction,the enclosed Preliminary Telephone Loan Budget,
RUS Form 493,includes 570,950 for investment in RTB Class B Stock.The stock will be issued
at the time of each RTB loan fund advancein an amount equal to 5 percent of such advancefor al
otherpurposes.
Ftural Douglupment h.I en Equal OpnaritmityLarm;
Complainte et dironmirmilen uhould nu were to:
Smer i of Agriculturg Wambingon,DC 20258
Mr.Leonard May 2
Also enclosed is a copy of the "Forecast of Revenuesand Expenses"for the proposed system.It isbasedonthenumberofsubscribersproposedtobeserved,existing local service rates withoutmileageorzonechargesandotherrevenuesandexpensesoutlinedontheform.
If loans are approved,no documents will be prepared until RUS receives written concurrence fromtheRuralTelephoneFinanceCooperativethatthenewloansmaybesecuredundertheRestatedMortgage,Security Agreement and Financing Statement dated as of Novernber 3,1997.
If a loan is approved,no "D"loan funds win be released until your organization has furnished toRUS,among other things,all of the documents,opinions,and other evidence listed in the loancontractapplicabletothisloan,including evidence that your organization has duly authorized,executed,recorded,and filed a security instrarnent,in form and substance satisfactory to theAdministrator.
The first advanceof "D"loan funds will include but not be limited to:
An amount then owing for interim financing for construction subsequentto April 26,2002,asapprovedbyRUS.
2.The cost of preloan engineering services in an amount to be approved by RUS.
3.An amount for the purchase of any applicable RTB Class B stock.
No loan fimds wiß be advancedfor outsideplant construction until your organization hassubmittedevidencethatyouhavecompliedwiththerequirementsoftheIdahoStateHistoricPreservationOffice,U.S.Fish and Wildlife Service,State Garne and Fish,Natural ResourcesConservationService,and the Corps of Engineers.
We understandthat you are converting a portion of your RTFC line of credit to long terrn debt.Ifyouwishtosecurethatdebtunderthesharedmortgage,you will need to request an additional lienaccommodationinaccordancewith7CFR1744SubpartB.
Debt service payments are to be made on a monthly basis.This requirement will be included in
the mortgage notes.Outstanding loans will continue to be billed as required by the mortgage
notes for those loans.
The mortgage will contain a provision requiring your organization to maintain an averageTIER of
at least 1.5 with TÏER not less than 1.0 for any given year.
Mr.LeonardMay 2
The maturity period for your "D"loan is 17 years as you reouested with the information submittedasapartoftheloanapplicationpackage.The principal repaymentperiod will be 17 years.Theapproximateamounttoberepaidwillbe53,605,000at a monthly payment of $20,000 for the RUSportionand$2,097,000at a monthly payment of $11,700for the RTB portion,assuming theinterestratesusedinthefeasibilitystudy.The actual repaymentof the loans will depend on theinterestrateapplicabletoeachadvanceandthescheduleofthoseadvances.A savings in interestcostsoverthelifeoftheloanwouldresultifashorteramortizationperiodwereselected.
We would appreciate any suggestions you may havewith respect to the matters discussed in thisletter.If you concur in the above requirements,please let us know by facsimile (202-690-4654)with a follow-up letter from an ofñcer of your organizationand indicate the maturity perioddesiredfortheloan,if shorter than the period stated above.We then will proceed with our studies.Out office should be advised of your decision immediate upon receiptof this letter.
E RT H.BRENT,Director
N hwest Area
lecommunications Program
Rural Utilities Service
Enclosures
CORPORATE NAME AND ADDRESS
FORECAST OF REVENDES AND EXPENSES DlRECT COMMUNICATIONS ROCKLAND,IN
ROCKLAND,ID
LOAN DESIGIn17I N SUBSCI BERFORECA.ST
JDAHO 313-Dl2 R KLAND 1,732
I10cal Network Service Revenuest..........................,......................$665.558
2.Access,Long Distance Network,añò garrierþjlling &Collection R erads .3,865,192
3,Miscellaneous Revenues..................................................................15,068 !
4Less Uncollectible Revenues........................................-....................0
5.Net Operating Revenues........-..................................................:....34,545,818
6.Plattt Speciñc Operatiom.Expense..............................,.........5865,567
?.Plant Nouspeciñc Opemtions Expense...........................................................................I 15,975
8.Depreciation Expense..........-......................................................1,63 6,873
9.Amortizatim Expense.....-..--...a...................................................,.......O
IB.Dustomer Qperations Expense......::...........c...........U..............247,122
3 Cotperäte Operations2kpenge.:..........................................694,8 78
Other Optžaüng Income and5xpense ..............................................0
13.Tatén ˾aludirtg F.LT.........c...............................................................158,68 6
14.TotaliiredCharges (Interestk..-............................,..............................611,437
15.Nonoperating Net income (expressed with the opposite.arithmeticiig ig.......(7,267)
16 ExtraordinaryItems.....---.i-....-.......................................................0
TL 0
18.N onregulated Net Income.................-..........................................L.,....(68,I 41)
192dtatExpenses,Excluding Federal Income Taxes.--.............................4,255129
20 Nát Ïncomehefore Fedem!Income Taxes..........................................5290,689
ederal Income 7 axes...................................................................8 6,574
21NetIncomeAfterFederaiÏncomeaxes .e...................5204,115
23.Ad Interest...........................................................................611,437
2tNet Operating income....,..L...,....a..a....................................a...............$815,552
21.Add T prediatiëllAudAmoifization......................................................1,636,873
2LAmiikhteÆor Intere Amd rincipal Paytrenta.,.........;............,,.........2,452,424
27.Scheduled luteren And Principal Payments......................................1,400,396
22.Available For Plant Additiona Reghtgements,Etc.,........................................51,052,028
29 Tituwletekst Entgediatio1LineiOLined i .......................................1.33
Item 14 (inteteit)
Outstanding Loan balanee(s)......dg 4 1¾SS 259 809 00 =$389,089
CurreutLoan(s)-.................@ 4 90¾$4 050,950.00 =$198AS0
TotaLOutside Finandag.....a:.;@ 54%$36 26LOC =$23,898
Total Interest.......--....................................................$611A37
*Local ServiciRL-venues Band On.kpproved Rates
USDA ÜS NAME OF BORROWERPrdimmary.DIRECTCOMMUNICATIONS ROCKLAND,.IN
TELEPHONE LOAN EDGET BORROWERand LOAN DESIGNATION
DAHO Si3-Ol2 ROCKLAI
RL AN
BUDGET ITE ESERVESAS OF:8/16/2002
RESERVE AVAILABLE FOR NEW PROJECT
BALANCES NEW PROJECTS BUDGET
L CONSTRUCTION 2.CENTRAL OPRCE $2,732,000
e.QUTSIDEFLMir i13
c.LAND andBUILDINGS
d.SPECIAL PROJEÒIS
2 ENGEWEERING a.PRELOAN 5,000
b.coNamucTroN 220,000
OPERATING EQUIPMENT &OFFICEEQUTFMENT
L VEHICLES an&WORKEQUIPMI?TT 80,Ü0Ü
2.ovaunkrimsNorrtnœÃ
à CLASS D STOCR--RURACTELEPHONE BANK 70,950
5.OPERATINOFUNDE
&REFINANCING WITHLOANFUNDS
7.ACQUlSITIONS
L OTHElt
AILABLEFROMPRIORLOANS (COL2,ITEM9]
TOTAL NEW LOAN FUNDS
HATOSHIP LOAN
)4 CONCURÏlENT-COSTOF MONEY 2,561,000
15.CONCumtEffr EURALTELEPHONERANK
IL GUMANTEEDLoAN
D.OTHElt LOAN
REQUIREh ADDITJONAUBUDGETU Uk
111 PIDOR LOANS to.NONLOAN FUNDL.AS ADJUSTED 10.CUMULATIVE ADUANCES AS OF Flu
PRIDA LDAN TOTALS $]i32162 NONLDAN FUNDL.PIUOR LDAN REA $9 92tp 42luALs9;924421 SALE ***W 222 L158.560mooxNsL3924666OrulyFFE
nos Low vora,sont.om m>ms Stl 9 £4 5 RUS
cumunisstatoANs 2L EncourrunEnnu!
UNADVANCEDFU}lDR E 12ti513
32.RET)R£1]PLANT MEW&,¾UIREDAllEAL EXISTINGAREAS
EETIMATEDDilIGINALCOSTOFlŒTIREDFLANT(nsisinan)$()
ESTIMATED SALVAGE VALUE Of tŒTIltED PLANT (this ban}50
NOTES
There are no proposed retirernents asrociated with this loan.
RUE FOÏUvi 493 (Rev.05-95)3-98,Excel Y 10
Uniteci States Department of Agriculture
Rural Develooment
Rural Business-Cooperative Service Rural Housing Service ·Rural UtilitiesServiceWashington,DC 20250
Mr.Leonard A.May
President
Direct Communications Rockland,Inc.AŸ .1 2 LË3
P.O.Box 269
Rockland Idaho 83271
Dear Mr.May:
Enclosed are six copies of the Restated Mortgage,Security Agreement and FinancingStaternent("the mortgage")along with other documents and instructions relative to yourorganization's "D"loan in the amount of $2,561,000 Rural Utilities Service (RUS)cost-of-moneyfundsmadebyRUSand$1,489,950 made by the Rural Telephone Bank (Bank).The executecicounterpartswillbesenttoyoubytheRuralTelephoneFinanceCooperative(RTFC),alongwiththeirinstructions.We indicated in our letter dated September 27,2002,announcingapprovalofthe"D"loan that we would specify the date by which the telephone loan contract istobeexecuted,authorized and returned to us.That date is 60 days from the date of this letter.
Please note the section in the loan contract,which specifies that loan funds advanced to yourorganizationaretobeheldintrustfortheGovernmentandpromptlydepositedintoaspecialconstructionaccountitisoftheutmostimportancethattheloanfundsbeusedonlyforthepurposesandintheamountsapprovedbyRUSassetforthinthefinancialreqLliFem3DÍstatement
Two 17-year notes covering these loans in the total amOLint of $4,050,950 are enclosed forexeCLition.The terms of the notes provide for monthly principal payments beginning two yearsafterthedateofthenotes.Please proceed with fLiifillment of the loan contract rec Liitements 50loanfundscanbereleasedforapprovedloanpLirposeswithaminimumofcielay.Again,observe the above date for return of the loan contract
v ep ed to ar r any questíons you may have concerning these loans.
JER Y H.BRENT,Director
No west Area
T communications Program
R al Utilities Service
Enclosures
Rural Davolopmani is an Equal Opportunhy LantierComplainkofdiscrlinmationshouldbesont10:Socratary of Agricullum,Washingion,DC 20250
USDA
United States Department of Agriculture
Rural Development
Rural Business ooperative Service Rural Housing Service Rural Utilities Service
Washington,DC 20250
MM 1 3 2003
Mr.Robert A.Parrett
Legal Assistant
Rural Telephone Finance
Cooperative
2201 Cooperative Way
Herndon,Virginia 20171-3025
Dear Mr.Parrett:
Enclosed are 14 signed copies of the Restated Mortgage,SeCLirity Agreementand Financing
Statement (the mortgage)among Direct Communications Rockland,Inc,(Direct),the United
States of America,the Rural Telephone Bank,and the Rural Telephone Finance Cooperative
(RTFO).It is our understanding that RTFC will execute and forward these documents to Direct
with instructions for final execution.
Please provide the RTFC note information on the Schedule B to the mortgage.Also,enclosed
for your information is a copy of the instructions we provided to Direct regarding these
documents.
Thgak fr your cooperation.
incere
JER 'H.BR ,Director
Not ivest Area
T ommunications Program
R I Utilities Service
EnclOSLlreS
cc:Mr.Leonard A.May
Burn!Davniapmuntla un Equal Opportunhy LunderCompiriintsofdiscriminationshouldbbunnito:
Suomtury of Agricuhum,Wanhington,DC 20:!50
--Ofñee of the Secretar
October 24.200
BEFORE TEE IDAHO PUBLIC UTILITIES COMMISSION
IN TEE MATTER OF THE APPLICATION )OF DIRECT COMMUNICATIONS )CASE NO.DCM-T-01-1ROCKLAND,INC.FOR AUTHORITY TO )BORROW$3,316,000 FROM THE RURAL )UTILITIES SERVICE.)ORDER NO.28880
On September 18,2001,Direct Corununications Rockland,Inc.ñ1ed an ApplicationrequestinganOrderñomtheCommissionthatwouldauthorizeittoborrow$3,316,000 in RuralUtilitiesService(RUS)loans.The funds will be drawn at various times as advances whenexpendituresaremadeoverthenextfiveyears.The loans will be for a period of time equal tothedepreciationschedulessetbyRUS.The interest rate is currently5%for hardship loans or thecurrentmarketrateiflower.
FINDINGS OF FACT
1.The Coramission has jurisdiction over this Applicant and this Application inaccordancewithIdahoCode,Title 61,Chapters I and 9.
2.The Applicant requests that the Cornrnission grant it authority to borrow53,316,000 from the Rural Utilities Service.
3.The Commission also finds that the proceeds of the proposed loan wiß be used forandwillpartialyreimbursegeneralfundsfor(1)extension of service to new customers,(2)addition of new dense wave division multiplexelectronic equipment for Rockland's existingfiberopticfacilities,(3)installation of new central ofñce equipment,and (4)related purposes.
4.The Commission finds that the expenditures per exchange and general areas total$678,000 in Rockland,550,000 in Arbon,51,493,000 in Paris,5345,000 in Mink Creek andPocatello,$195,000 in Soda Springs,5235,000 for engineering,$80,000 for utility tracks,and5240,000 for reimbursement of general funds.E is projected that of these amounts,$2,281,000isassociatedwithregulatedactivitiesand$1,035,000 is associated witla deregulated activities.
5.All fees have been paid by applicant in accordance with Idaho Code §61-905.
CONCLUSIONS OF LAW
Applicant is incorporated under the laws of the State of Idaho and is duly authorizedtodobusinessintinsstateinconnectionwithitsutilityoperations.
ORDER NO.28880
1
The Commission has jurisdiction over this Application.
The proposed loan to be issued to Rockland by RUS is for a lawful purpose and iswithmApplicant's corporate powers.The proposed transaction is in the public interest,and aformalhearingontlusmatterwouldservenopublicpurpose.
The Commission fmds that this Application shall be approved,conditioned on the
same restrictions and ñ1ing requirements when approved by RUS.Rockland shall ñ1e copies oftheñnalloandocumentsandaHrequiredfilingswithRUSwiththeComrnissionastheyarecompleted.Furthermore,Rockland shall also file annual statements reflecting total baÏances
outstanding and mortgage compliance calculations.
Al fees have been paid by Applicant in accordance with Idaho Code §61-905.
O RD ER
IT IS HEREBY ORDERED that the Application of Direct ComnmnicationsRockland,Inc.to borrow 53,316,000 from the Rural Utilities Service is granted,conditioneduponthesamerestrictionsandfilingrequirementsassetbyRUS.
IT IS FURTHER ORDERED that Rockland shall ñ1e copies of the finaJ loandocumentsandallrequiredfilingsmadewithRUSwiththeCorranissionastheyarecompleted.
IT IS FURTHER ORDERED that Rockland shall file annual statements reflectingtotalhalancesoutstandingandmortgagecompliancecalculations.
IT IS FURTHER ORDERED that nothing in this Order shal be construed to obligatetheStateofIdahotopayorguaranteeinanymannerwhatsoeveranysecurityauthorized,issued,assumed or guaranteed under the provisions of this Order.Adaho Code §61-906.
IT IS FURTHER ORDERED that this authorization is without prejudice to theregulatoryauthoritytothisCommissionwithrespecttorates,services,accounts,evaluations,estimates.or determination of costs,or any other matter which may come before thisCommissionpursuanttoitsjurisdictionandauthorityasprovidedbvlaw.
THIS IS A FINAL ORDER.Any person interested in this Order (or in issues ñnalNdecidedbythisOrder)or in interlocutoryOrders previously issued in this Case No.DCM-T-051maypetitionforreconsiderationwithintwenty-one (21)days of the service date of this OrderwithregardtoanymatterdecidedinthisorderorininterlocutoryOrderspreviousJyissuedinthis
Case No.DCM-T-Obl.Withm seven (7)days after any person has petitioned for
ORDER NO.2BB0
t
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code
§61-626.
DONE by Order of the Idaho Public Utilities Comnussion at Boise,Idaho this £3A
day of October 2001.
PÃUL I3ÈL A ER.PRESIDENT
MARSHAH SMITH COMMISSIONER
D NNIS S.HÆÑSER'ÒMËfISSIONER
ATTEST:
Je i D.JeweCo~nirmssion Secretary
O:DCMTOT]jh
ORDER NO.28880 3
GIVENSPURSLEY
LAWOFFic.EsBarvG.AllanDavidR.LombardiJudsonB.Montgomery 277North6thStfBSÎ,SUit6200ChristopherJ.BeesonD.DavidLorello,JrAngelaK.Nelson POBox2720,Boise,idaho83701MichaelC.CreamerKevinTMaioneyW.HughDiiiardan ThomasE.DvorakKimberfyD.MaloneyKenneth1..Pursley TELEPHONE:2ÜË$66-1ÛÜBDyLBWÌSSQUrenJohnM.MarshallVirginiaLStukel Fis:5mlL.E.2.0636-Î3ÜJECOUBlÌDEM.ŸBBfDSideKennethR.McClureConisyWard WEBEJTE:www.glvenspursley.comTimothyP.FaamsideKellyGreeneMcConnellStephanieC.Westermeier JeffreyC.FeredayCynthiaA.MelillaRobert8.White AmandaLKeatingChristopherH.Meyer
KarlT.KleinkendaljLMilleiBaymondD.Givem DeboraK.KristensenLEdwardMillerJamesA.McClure Franklin6.LeePatrickJ.Millerorcounse
September18,2001
ViaHandDelivervTerriCarlock
IdahoPublicUtilitiesCommission
472W.WashingtonStreet
P.O.Box83720
Boise,ID83720-0074
RE:DirectCommunicationsRocklandsRUSLoan
DearTerri:
IamenclosingacopyofRockland'sApplicationforapprovalofanewRUSloaninthe amountof$3,316,000.Ihaveati:achedacopyofRockland'sLoanDesigntoyourcopyofthe Applicationonly.Ifyouhaveanyquestionsaboutheapplicationorloan,pleasegivemeacall Ifyoucan'treachme,MikeCreamercanprobablyansweryourquestions.
Asalways,thankyouforyourhelp.
Ver'rtruyotrs,
CpleyShui CEW/cew
cc:MCC
CONLEY WARD
GIVENS PURSLEYLLP
277 North 6th Street,Suite 200
P.O.Box 2720
Boise,ID 83701
[phone]
[phone] (fax)
Idaho State Bar #1683
Attorneys for Direct ConnnunicationsRockland,Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of Direct )Case No.C/$-
ConununicationsRooldand,Inc.for Authority )to Borrow from the Rural Utilities Service )APPLICATION OF DIRECT("RUS")in the Amount of 53,316,000 )COMMUNICATIONS
)ROCKLAND,INC.
Direct CorununicationsRooldand,Inc.("Rockland"or "Applicant"),by and
through its attorneys Givens Pursley LLP,makes this Applicationpuranantto Idaho Code
§61-901 for authority to execute a Loan Agreementin the amount of Three Million,
Three Hundred SixteenThousandDollars (53,316,000)with the Rural Utilities Service
(the "RUS").In support of its Application,Rockland states as follows:
L Applicantis a certificated telephone corporation organized under the laws of
the State of Idaho providing telecommnnicationservices including local exchange service
within the state of Idaho.
2.AE notices and cornmunications with regard to this Applicationshould be
served upon:
Conley Ward
Givens Pursley LLP
277 North óth Street,Suite 200
P.O.Box 2720
Boise,ID 8370 i
ÁPPUCATION OF DIRECT COMMUNICATIONEROOG-ANL INC-1
Leonard May
Direct ConununicationsRockland,Inc.
P.O.Box 269
Rockland,ID 83271
3.The proposedRUS loan proceeds will be used to pay for,and partiany
reimburse general funds for,the following projects:(1)extension of service to new
customers,(2)addition of new dense wave division multiplex electronic equipmentfor
Rockland's existingfiber optic facilities,(3)installation of new central office equipment,
and (4)related purposes.
4.Applicant believes the proposed RUS loan will qualify as a hardship loan with
an interest rate of approximatelyfive percent (5%)per annum.If the loan is not
designated as a hardshiploan,the interest rate will be at RUS's then current market rates
at the time of closing.
5.The proposedtransaction is consistent with the public interest.Construction of
the new facilities will improve service for Roc1dand's customers and make it possible for
Rocidand to meet new service demands.
6.A copy of the Applicant'smost recent Annual Reportshowingthe authorized
and outstanding classes of Applicant'ssecurities is on file with the Commission,and the
Applicantrespectfullyrequests the Corranission take of5cial notice thereof.A certified
copy of Applicant's Board of Directors'resolution authorizingthe proposed transaction is
attached hereto as Exhibit A.
1 A Proposed Order grantingthis Applicationis attached hereto as Exhibit B.
2.Notice of this Application will be published within seven (7)days in The ldaho
Statesrnan (Boiset A copy of this Notice is attached as Exhibit C.
9.Applicantsubmits that the public interest does not require a bearing on this
matter and it requests thatibe CoIranission process this Application and determine this
matter by Modified Procedure,pursuant to Rule 23 of the Comrnission Rules of Practice
iPruernON OF UNECTCOlWMUNicinONS ROCKLAND,1NC -2
and Procedure.In the event the Commission deternines that formal proceedings on this
Application are necessary,Applicant stands ready for immediatehearing.
10.Applicant has attached its filing fee,pursuant to Section 61-905,Idaho Code,in
the amount ofFIVE HUNDRED FORTY SDE AND 60/100THSDOLLARS (5546.60).
WHEREFORE,Applicant respectfully requests an Order of this Cornnission:
1.Grantingthe foregoingApplicationof Direct CononunicationsRocldand,Inc.
to execute and deliver to the Rural Utilities Service a Loan Agreementin an amount not
to exceed $3,316,000.
2.Grantingsuch other relief as the Commission deems just and reasonable in this
matter.
DATED this 18th day of September,2001
Conkey Waret
GIVENS PURSLEYLLPAttorneysforApplicant
APPucTnoN ur bikECT COMMUN1CAT)NE ROCKLANDJNC -3
CERTIFICATEOFSERVICE
IHEREBYCERTIFYthatonthe]SdayofSeptember,2001Icauseda trueandcorrectcopyoftheforegoingtobeservedupon:
Ms.JeanJewell,Secretary
IdahoPublicUtilitiesConmiission
472W.WashingtonStreet
Boise,ID83702
byhanddeliveringthesametotheabove-namedatthelastknownaddress(s)assetforth above.
AyrucAT10NOFUlldCTCOMMUNICONSROCKLAND1Nti
CERTIFIEDCOPYOFMINUTESAUTHORIZINGLOAN
APPLICATIONANDAGREEMENT
I,MarilynMay,doherebycertifythat:IamtheSecretaryofDirect CorurunicationsRockland,Inc.(the"Member").
Thefollowingisatrueandcorrectcopyofexcerptsfromtheminutesofameeting oftheBoardofDirectorsoftheMemberheldSeptember8,2001,astheyappearinthe MinutesBookoftheMember,saidresolutionsdulyadoptedthereat;themeetingwas dulyandregularlycalledinaccordancewiththebylawsoftheMember;theLoan ApplicationandAgreement(the"Agreement")submittedherewithortobesubmittedto RuralUtilitiesServicearesubstantiallysimilartotheformoftheAgreementaspresented
tosaidmeeting,theexecutionofwhichwasauthorizedbytheBoardofDirectorsand
saidresolutionshavenotbeenmodifiedorrescinded:
"TheBoardofDirectorsofDirectCommunicationsRockland,Inc.havingbeen
advisedbyitscounselthattheMemberislegalyconstituted,isincompliancewithall
applicablestatutory,regulatoryandotherlegalrequirementsandisingoodstanding,and thatanapplicationtobemadetoRuralUtilitiesService("RUS")foraloanandits
approvalbyRUS,togetherwiththeexecutionofanagreementasauthorizedbythe
Board,intheformoftheAgreementpresentedatthismeeting,willconstitutevalidand bindingobligationsoftheMember,enforceablebyandagainsttheMember,in
accordancewiththetermsofthesedocuments;
"RESOLVED,thattheMemberborrowfromtheRuralUtilitiesService("RUS")
anamountwlüchshallnotexceedintheaggregate$3,316,000.00foratermasset
forŒintheAgreement,andatsuchinterestrateorratesasshallbeprescribedin
theAgreementexecutedbyandonbehalfoftheMemberanddeliveredtoRUS,
theproceedsofsuchloantobeusedforpurposess.etforthintheAgreementand consistentlywiththerequirementsofexistingagreementsandsecuritydocuments
oftheMember;and,
"RESOLVED,thatthePresidentoftheMemberbeandisherebyauthorizedto
execute,onbehalfoftheMember,anagreementsubstantialyintheformofthe
Agreementpresentedtothismeeting,toreviseandmodifysaidAgreementwithin
theamountsoauthorized;andtoapplysuchfurtherdocumentsasmaybeneedto
complywithRUSsrequirements;and,
"RESOLVED,thatthePresidentisauthorizedonbehalfoftheMenkertorequest
andreceivefundspursuanttotheAgreementandisdirectedtodepositsuchfunds
inabankaccountusedforfEe::eneralfundsoftheMender;and,
DIRECTCOMMUN1CAT10NSROCKLAND
CASENo.ROK-T4
ËXIllnTA
"RESOLVED,that the appropriateofñoers are authorized to take all actions theydeemadvisabletocaryoutthepurposeoftheseresolutions."
IN WITNESS WEEREOF,I have hereunder set my hand and affixed the seal oftheMember,this 18th day of September,2001
Secretary
DudecTCOMMUN1CATION,9RocianND
Crum No.ROR-T4)¾
Giu ru rr A
Conley Ward
GIVENS PURSLEY &HUNTLEY LLP
277 North 6th Street,Suite 200
P.O.Box 2720
Boise,ID 83701
[phone]
[phone] (far)
Idaho State Bar #1683
BEFORE THE IDAHO PUBLIC UTILITIES COM1\HSSION
In the Matter of the Application of Direct )Case No.ROK-T-01-CommunicationsRockland,Inc.for Authority )to Borrow from the Rural Utilities Service )PROPOSED ORDER("RUS")in the Amount of 53,316,000 )
On September 18,2001,Direct Conmmnications Rockland,Inc.(hereinafter
Applicant),filed an Application for Loan Approvalwith this Commission requesting
authorityto execute a loan contract amendmentand supplementalmortgagein the
amount of $3,316,000 with the United States of America,acting throughthe Rural
Utilities Service ("RUS").
In support of said Application,Applicantalleges that the proceeds of the RUS loan
will be used to pay for,and partially reimburse general fu:nds for,the following projects:
extension of service to new customers,(2)addition of new dense wave division multiplex
electronic equipment,(3)installation of new central office equipment,and (4)related
purposes.
After examining;the Application and supporting documents and being,fully
advised in the premises,fbe Commiss:ion hereby finds that a hearing in this matter is not
required,and that the proposed transaction is consistent with the public interest and the
Applicant'sproper performance of its duties as a public utility.
DUŒcT COMMUNICATIONSROCKLAN.0
CASE Na ROE-T-0LEXHih
IT IS THEREFORE ORDERED that the Application of Silver Star Telephone
Company for authority to execute a loan contract amendmentand supplementalmortgage
with the RUS in the amount of S $3,316,000 be,and the same is hereby granted.
DONE by Order of the Idaho Public Utilities Conunission this day of
,2001.
Paul Kjellander,President
Dennis S.Hansen,Connnissioner
Marsha Smith,Corunissioner
ATTEST:
DmECT COMtMUNICATiohm:RucKLAND
CASE Na ROR-T-0T-
LEGAL NOTICE OF DIRECT COMMUNICATIONS ROCKLAND,INC.APPLICATION FOR AUTHORITY TO BORROW FUNDS
NOTICE IS HEREBY GTVEN that on September 18,2001,Direct
Corrununications Rockland,Inc.,completedand filed with the Idaho Public Utilities
Corrunission an Application for authorityto borrow up to $3,316,000from the United
States of America,actingthroughthe Rural Utilities Service and in connectionwith theborrowing,to execute a telephoneloan contract amendment and a supplementalmortgage.
The Application is on file and is available for public inspectionat the Idaho PublicUtilitiesConunission.A_ny person desiring to comment on said Application must filepetitionsorprotestsviiththeIdahoPublicUtilitiesCorunissionwithinfourteen(14)daysofthefilingdate.If no protests are received within this time limit,the Commission mayconsidertheApplicationandenteritsOrderwithoutsettingthematterforhearing.IfwrittenprotestsarefiledwiththeCommissionwithinthetimelimitset,the Conenissionwillconsiderthesame,and in its discretion,may set a hearing.Petitions or protests must
be filed with:Jean Jewell,Secretary,Idaho Public Utilities Conunission,Statehouse,Boise,Idaho 83720.
Jean Jewell,Secretary
Idaho Public Utilities Conunission
D UNCF CO MM UN)CATiaN,t,'Roct0A NDCARNŒROR-T40-
EXHmfr C
DIRECT COMMUNICATIONS ROCKLAND,IN
P.O.BOX 269
ROCKLAND,IDAHO 83271 Ã Û 299)PHONE [phone] +FAX [phone] ,dwens Purday LLi
August 14,2001
Dear Michael,
Enclosed is the informationyou requested,also enclosed is the loan application.Please send tousoriginalsigneddocumentstoRUSasdiscussedAugust14,2001.
Tha
Garrin Bott
Assistant Manager
POOTK:repor¾ng bunien ter ih.coieclkin allitarmalkin ...thnt av.17 ---ul..per -.lnektdne the ti...for rBYlewkip inkNCIkin...-ching ..latkig dia J--hatWigandmaintai-ng RV -nS8dSt.ano --Inc and rBYlBWl/lo tae Q)!18d 100 Oliniorina
S.nd --regardng ih.buro ..ilmat or any otnerUPECl DI3h.W..ed.ion 01 inrormaken.-vongaugg.lienflorrecuang th"bunien.10 OSPinn1I 03 Ameuule.C..anoe Ofix:Bl.DIRM.AO BOX 71 ½UningfOn.00 20250;and 1Dthe Oltka01 Manace
andbuopal.Pacaiwork RaclK2kin Profna (0-8 80572.(X)78).Wu-donDC 20503.OMB FORM NO.0572.ooN.EgMr.1-1
U.S.Ocpartrnentoi Agricuírore
RUS USE ONLYRuralUtilitiesService
APPL.lCATION FOR TELECOMMUNICATIONS BORROWER &LOAN DESIGNATION:
LOAN OR LOAN GUAPsANTEE --PCDAlc.
1 NAME AND ADDRESS OF BORROWER (2 Direct Communications Rockiand,Inc.
2.TYPE OF ORGAN¡ZATION (Check one)
3 P-O.BOX 269
Rockland.Idaho 33271
:i)::
2._X COMMERCIAL CORPORATION
b.._COOPERATIVËOR MUTUAL
c._PUBlicBODY
3.INDICATE THE LDAN MATURITY BEING REQUESTËD AMOUNT OF LDAN APPLIED FOR:YEARS ((Maximum or 35).oR $3,316,000
b.X COMPOSITE ECONOMIC LIFE OF FACiliTIES INANCED PLUS 3 YEARS.
5.NUMBER OF EXCHANGE3;6.NUMBER OF SUBSCRIBERS:
a.IN EXISTING SYSTEM.......................,.................3
..IN EX!5TING SYSTEM ...........................................1,365
367
b.TO DE FINANCED BY TH S LOAN ...-.................3 b.TO BE ADDED DURING FORECAST PERIOD ...
7.PURPOSE OF LDAN
$466,000 -COE
1,485,000 -Electronic Equipment1,050,000 -OSP Line Extensions235,000 -Engineering80,000 -Vehicles
$3,316,000 -TOTAL
8 15 THE BORRO\lt/ER DELINOUENT ON ANY FEDERAL DEBT?(X NO YES
CERIlFICA TION
The undercígned cert)ne::that the informaljon canalined hemin is accurme andcomplete 10 lhe best of my knowieage and belief51GNATUREOFAUTHOR2EDOFFiclALTITLEDATE
Publicreoortingouroenforthiscollectionofinformationisestimatedtoaverage_minutesperresconse,includingtheilmaforreviewinginstructions,saareninge×isiingdatasources,Gathering
anomaintainingthecatanee¤ec,andcomoietingandreviewingthecollectionofinformation.SendcommerusregardingthisDurcenestimateoranyotherasoectofthiscollecúanofinformation,
inctuaingsugaestionsforreducingthisburden,toDepañmentcíAcriculture.ClearanceOfnee,OIRM.AGBOX763D,Washington.DC20250;andtotheOfficeofManagementandBudget
PacerworkRecuctionProject(DMB#DE72-0D79),Washington,DC20503.OMEFORMNO.0572-0072,Ëxofresxxixxi
RURALUTlLITIESSERVICE-USDANAMEOFBORROWERDiräct=ComnunicationsRocidändInc AREACOVERAucSURVEYREPORTSORROWERDESIGNATION
JNSTRUCTIONS-PreoareonecopyofthisformforeachcopyoftheOÈÊ2
LoanDesign.Forfurtherinformation,seeRUSBulletin1737-2TheNAMEOFEXCHANGË informationonthistormwillbeusedbyRUStoäscertairdaan
ÍSasibility.Submissionisreauirec5WÎÔG
1.NUMBEROFEXISTINGINHABITEDESTABLISHMENTSEstimatedBasedonFieldSurvey1.486
2.NUMBEROFEXISTINGINHABITEDESTABLISHMENTSWITHSERVICEEstimatedBasedanFieldSurvey36Ì
3.PERCENTOFEXISTINGINHABITEDESTABLISHMEMTSWITHSERVICE(LineA2dividedbyLneA1)92¾
4.ESTlMATEDNUMBEROFFUTUREESTABLISHMENTSEstimatedBasedonFieldSurvey32N
PARTB.SUBSCRIBERFORECAST
SOURCEOF.SERV1CEBUSINESSRESDENCEOFF¡CIAL TOTALSUBSCRIDERSTELEPHONE REQUIREMËNTS
1PARTYMULTI-PARTYPAYSTATIONS1PARTYMULTPARTYSUBS.LINES
1.PRESENTSUBSCRIBERS.
ASOF:13652041Ë38
(DATE)12/3ŸáiDO
2.HELDORDËRS
4.NEWSUBS.FROM
FUTURE344341.0
ESTABLISHMENTSw:M
5.TOTALPRESEWT
AMDWEW1732240149238SUBSCRIBERS
6.ANTICIPATED
OUTWARD
MOVEMENT
7.TOTAL
5-YEAR1732240149238SUBSCRIBERS
&TOTAL5-YEARSUBGCRIDERS,PLUSOFFICIALLlWES
NOTE."Siabucriber"meansthesameas"accesulines"
REMARKS:
Thesystem-wideprojectedgrowthrateis4.95%.Thiscompositerateisbasedonindividualexchangegrowthrates.
FORTHEDDRROWERDATE
RLisGEWERALFlELDREPRESENTATMEDATE
RUSForm569,page1(Rev3-95)MadiiiadMSC10/2000ORAFT3-27-95CR\NULF
RuRAL uTILm s sãRvic--usoA NAME OF BORROWER
AREA COVERAGE SLIRVEY REPORT Direct Communications Rockland,Inc.
BORROWER DESIGNATION
INSTRUCTIONS -Preoare one copy of this form for each copy of the Loan ID 513-D Rockland
Desien.Forfurtner information,see RUS Bulleiin 1737-2The information on NAME OF EXCHANGEthisformwillbeusedoyRUStoascertainicanfeasibility.System Total
PART C.RADIOTELEPHONE SUBSCRIBERS
E.XISTiNG PROPOSED
1.TYPË DF SYSTEM SUBSCRIBERS REVENUES OFFIC1AL LlNES SUBSCRIGERS REVENUES OFFIClAL LINES
A.MOBILE CELLULAR
E.F1XËD CELLULAR
C.BETRS
D.PERSDNAL COMMUNlCATIONS SERVICES
E.IMTS
F.PAGERS
PART D SEASONAL SUBSCRIBERS
TOTAL BUSINESS RES DENCE RADIOSUELPHONE
SUBSCRIBERS 1 PARTY MULTi-PARTY PAY STATION 1 PARTY MULTWPARTY
1.PRESENTSUBSCRIBERS AS
OF
2.SEASONAL SUBSCRIBERSAT
END OF 5 YEARS
PART E.TONE DIALING CUSTOM CALLING &CLASS FEATURES
EXISTlNG PROPOSED
DESCRIPTIOWOF SERVICE NUMBER REVENUE NUMBER REVENUE
Custom Calling 234 75i.DO 308 955100
Caller ID 429 2 297.00 475 1 625:00
\WlGPE Maint Etc.1120 1,612:00 1150 i;G55100
Voice Mail 25 105.00 110 200200
PART F.OTHER REVENUE PRODUCING SERVICES
EXISTING PROPOSED
DESCRIPTION OF SERVICE NUMßER REVENUE NUMBER REVENUE
Other (incL NonspubL,do not disturb,add!L listings etc.)39 186.00 45 21500
REMARKS:
Monthly Revenues
Note:An estimated 156 access lines will subscribe to OSL services within the five year forecast periori Since revenues associatedwithOSLarebasedonNECArates,revenues will be reflected in future cost studies and are not included above.
RUS Form SSG,paps 1 (Rav 3-05)Modlhed MSC 10/2000 DRAFT 3-27-05 CRWULF
Publioreocrting buraen for this collecifon of information .lated to average minutes per resoonse,including the time for,mg instructions,searching existingdata sources,gatherineandmaintainingthedataneeded,andcompieilng anc reviewing the collection ¤í inicanation.Send commentsregarding this buroenestimate or anyotheresoectof this collection of information,including suggestions for recucino this burden,to Deoartment of Agriculture,Clearance Office,OIRM,AG BOX 7530.Washington,DC 20250,and to the Office of Manaoement and Budget,PaossworkRecuction Project(OMB #D572-CD79),Washington,DC 20503.OMB FORM NO.0572-0079,Expiresxxixxin.
RUR.AL UTil.JTIES SERVICE -USDA NAME OF BORROWER
DireofCommunications Rockland inc.AREA COVERAce SURVEY REPORI BORROWER DESIGNATION
INSTRUCTlONS -Prepare one copvof this formTor eacn coov of the DO SDdLoanDesign.For further information,see RUS Bulletin 1737-2 The NAME OF EXCHANGEinformaücnonthisformwillbeusedbyRUSfoascertainloan
easibility.Submission is reouired.2 Ild
1.NUMBER OF EXISTING INHABiTED ESTABLISHMEMTS Estimated Based on Field Survey 358
2.NUMBER OF EXISTING INHABITED ESTABLISHMENTS WITH SERVICE Estimated Based on Field Survey .340
3.PERCENTOF EXISTING INHABITED ESTABLISHMENTS WITHSERVICE (Line A2 diviced by Une A1)95"/o4.ESTIMATED NUMBER OF FUTURE ESTABLISHMENTS Estimated Basea on Fad Smy 40
PART B.SUBSCRIBER FORECAST
RAutL>SOURCE OF SERVICE TOTAL SUSSOPJDERG BUSINESS RESIDENCE TELEPHONE OFFICIALREQUIREMENTS1PARTYMULTPARTYPAYSTATIONSPARTYMULTPARTYSUBSLlNES
1.PRESENT SUBSCRJBERS
AS OF:34Û 22(DATES Y2/3ûÊ0
2 HELD ORDERS
3.NEW SUBS.FROM
ESTABUSHMEWTS
A.NEW SUBS.FROM
FUTURE 46ESTABLlŠHMEhlT
5.TOTAL PRESENT
AND WEW 390 22SUBSCRIBERS
i ANTICIPATED
OUTWARD
MOVEMENT
v a 390 99 291 22SUBSCRIBERS
B TOTAL 5-YEAR SUBSCRIBERE,PLUS OFFICIALLINEs 412
NOTE:"Suoscriber"means the same se "access linas"
REMARKS:
The projected Racidand exchange growth rate is 3.25%.
HÈ E10RROWER
L ËÑÑfÀL FIELD REPRESEWTAT)VE
US si page i (kau 3-05)Modilod MSC 10/2000 DRAFT 3-27-95 CRWULF
RURAL UTILITTEL SERvcE -USDA NAME CA BORROWEF
AREA COVERAGE SURVEY REPORT Direct Communications Rockland,Inc.
BDRROWER CGSIGNATIDN
Idaho 513-D RocklandINSTRUONS-Prepara one copyot ihm lorm for oopy of RAME CA EXCHANGED..ign.For tom.«insormason,...aus aun.no im-2.r"Roc kl a ndormakx,on thw form will be used bv RUS e areerten loan imaniblilty.
PART C.RADICTE PHONE SUBSCRISERS
EXJETNG ACPDSEDLTYPEOSYSTEMEUBSCRIBERSREVENUESO¯TCIAL UNES SUBSCRJBERS REVENUES OFRCIALL sA.MDBILE CELLUE.AR
E.FlXED GELLLILAR
c.BEms
D.PERSONAL COMMUNICATioNS SERVICEs
E.IMTS
F.PAGERS
PARTD.SEASONAL SUBSCRISERS
BustWEss RESIDENCE 'RADIOTCTTAL1MULT3-PAY 1 MULTi--TELEPROJESUBSCRIBERSPUTTYPARTYCTATloNCPARTYPARTYSUBLLPRESENTSUBSCRJBERS
AS O :
1 SEAGONAL SLIBSCRIBËRS
AT EWD OF 5 YEAAS
PART E.TONE DIALihlG,CUSTOM CA1]JNG CLASS FEATURES
PROPOSEDDESOFIIPTIONOFSERVICENUMBERREVENUENUMBER REVENUEcrystomCallina2001206280ce,Uer .TD 111 5613 130 $sooW/c?R Kaint,etc,421 5397 425 $475voiceMr,il 50 Siso
PART F.OTHER REWNUE PRODUCING RERVICES
EXICTNO PROPOSEDESORIPTIOWOFSERVtCENUMBERREVEWUEWUMBER REVENUEOAo-r Oc .pon-Dubl .,do not disturb 19 E97 20 100arlditionallistingsetc.
Mon thl y Re venne
RUS Form SelD,page 2 10'J-05)DRAFf 3-1 m CnwuLF
Public recorfing burden for this collection of informaüor..stimated to average minutes perresoonse,including ine time fo,.sewing instrueffons,searchingexistingdata sources,gatheringandmaintainingtnecataneeced,and comoleting and reviewing the cohection of information.Send comments regaraing this burden estimate or any otnerasoso!of this coilection of information,including sugoestionsfor reducing this burcen,to Department ci Agriculture,Clearance Office.OIRM,AG BOX7630,Washington,DC 20250,and to the Office of Manacementand BucceLPaperwomRecuctionProject(OMB #0572-0079),Washinot¤n.DC 2DSO3.OMS FORM NO.0572-0079,Ëxpires xxixxixx.
RURAL UTILITlË55ËRVICE -USDA NAME OF BORROWER
Direct Communications Rockland,Inc.AREA COVERAGE SURVEY REPORT BORROWER DES1GNATION
INSTRUCTIONS-Prepare onecopyof this form for each copy CHhe JD 513-D Rockland
L¤an Desian.For further informatior..see RUS Bulletin 1737-2The NAME OF EXCHANGEinformationonthisformwillbeusedbyRUStoascartainloan
fessiblity.Submission is reouired.Oil
1.NUMBER OF EX!STING INHABITED ESTABLISHMENTS Estimated Based on Field Surley Í02
2.NUMBER OF EXISTING 1NHABlTED ESTABLISHMENTSWITH SERVICE Estimated Based on Field Survey GE
3.PERCENT OF EXISTING INHABITED ESTABLISHMENTS WITH SERVlCE (Line A2 divided by L ne A1)93%
4.ESTIMATED NUMBER OF FUTURE ESTABLISHMËNTS Estimated Based on Field Survey 1
PART B.SUBSCRIBER FORECAST
SOURCE OF SERvicE BUSINESS RESIDENCE RAL)U OFFICATOTALSUBSOFll]RS TELEPHONEREQUIREMEMTSiPARTYMULTPARTYPAYSTATIONS1PARTYMULTPARTYSUBS
1.PRESENT SUBSCRIBERS
AS OF:
2.
EALD
RDERS
12/31/2000
3.NEWSUBS.FROM
EXISTING
ESTABUSHMENTS
5.TOTAL PRESEWT
AND blEW 115 8 107 7SUBSCRIBERS
6.ANTlC1PATED
OUTWARD
MOVEMENT
7.TOTAL
S-YEAR 16 107 7SUBSCRIBERS
8.TOTAL 5-YEAR SUBSCRIBERS,PLUS OFFICIAL UNES =Ï 22
NOTE:"3ubscriber"means the same as "access lines"
REMARKS:
The projected Arbon exchange growth rate is 3.5%.
DATEEONTHEBORROWER
DATEFLLJSGEWERALFIELDREPRESEWTATWE
RLJS Fann560,papa 1 (Rov 3-05)Modified MSC 1012000 ORAFT3-T/05 CRWULF
RURA.L UTILinES SERVICE ...NAME ce BOAADWER
Direct Communications Rockland,Inc.'AREA COVERAGE SURVEY REPORT
BORADWER DË5]GNATlDN
Ïñaho 513-D Rockland
NSTRU""TTONS -Frecare one copy d tha form lor copyol the NAME DE EXCHANGELoanDealpa.Fo-turiner Wonnatíon,see RUS Bonetin 1 ""¤-2.ThetekemasonontMeform«ff!be ined bv RUS to ascertain loan laasiblikv.
PART C.RADIOTELEPHONE SUSSCRIBERS
swa Paososso1.T OF SYSTËM SUESCPJBEAS REVENUE:C¥FlclAL UNES SUESCAISERS REVENUES DFFICIAL UNA.MDBILË CELLLLAR
B.FD'ED CEU.ULAR
C.BETRS
D.PER3DNAL COMMUNICATIONS SERVICES
E.II.'TS
F.PAGERS
PART D SEASONAL SUBSCRIBERS
RUS1HE:s RESIDENCE RAD(DTCITAL.1 MULR--PAY MULTi-TELEPNCWESUBSCRIGERSPARTYPARTiSTAT3DNSPARTYPARTYSUBL1.PRESEfff SURS RJBERS
AS OF
2.SEASONAL SUBSCRJDERS
AT END DF 5 YEARS
PART E.TONE DIALING CUSTOM CALL1NG &CLASS FEATURES
EXtsTNG PROPOSEDDEscRIFTTONOFSERVICENUMBERREVENUENUMBER REVENUECustomCalling22$43 38 $79CallerID43$234 45 6250IW/CPE Naint.etc.
.121 $112 125 $130VoiceMail
--10 630
FART F.ETEMER NEVENUEPRODUCING SERVICES
EXJUTNG PROP GEDDESCBîPTIDNOFSERVICËNUMOEPREVENUENUMBER REVENUEOther(incl .non-publ .,do not disturb &ß 536 10 50additionallistingsetc
RE MANKS
Ronthl y Rever nes
ALAS Form 560.page 1 Q-M'l-05)DRAF3 -S-u:.CHWULF
Publicreportingburaen for this CDIlection of information ..mätedto average minutes Der response,including the time for ling instructions,searching e×isting cata sources,gathering
ano maintaining the data needed,ana comoteling and reviewino tne collection of information.Send commentsregaroing this buraen estimateor any otherascect of this colecuan of information,
includingsugoestionsfor reouemgthis buroen,to Department oi Agriculture,Clearance Onice,DIRM,AG BOX 7530,Washington,DC 20250,and to the Dince ¤f Management and Bucgel,
Pacerwork ReductionProject (OMB #0572-0079¾Washington,DC 20503.OMB FORM NO.0572-0079,Ëxpires xxixx/XX.
RURAL UTILITIES SERVICE-USDA NAME OF BORROWER
Dir½f Commuriications Rockland Inc.AREA COVERAGE SURVEY REPORT BORROWER DEslGNATION
INSTRUCTIONS -Precare one copy of this form for eacn copy of tne
Loan Desion.Forfurther informatiori see RUS Bulietin 1737-2 The NAME OF EXCHANGEinformationonthisformwillbeusedbyRUStoascertainloan
feasibility.Submissionis recuired.S
1.NUMBER OF EXISTING INHABITËD ESTABLISHMENTS Estimated Based on Field Survey 102
2.NUMBER OF EXISTING INHAB1TED ESTABLISHMENTS WITH SERVICE Estimated Based on Field Survev B32
3.PERCENT DF EX15TlNG INHABITED ESTABLISHMENTS WITH SERVICE (Line A2 diviced by Line A1)91%
4.ESTIMATED NUMBER OF FUTURE ESTABLISHMENTS Estimated Based on Field Survev 270
PART B.SUBSCRIBER FORECAST
SOURCE OF SERVICE BUSINESS RESIDENOË OFFICIALTOTALSUBSCRIBERSTELEPHONEREOUIREMENTSiPARTMULTI-PARTY PAY STATlDNS 1 PARTY MULTi-PARTY SUBS LlNES
1.PRESEWT SUBSCRIBERS
As DF:928 0 827
(DATE)12/3t|200
2.HELD ORDERS
3.NEW SUBS.FROM
s SHMENTS
LTU 284 3 254
5.TOTAL PRESENT
AND NEW 1227 133 1094 9
SUBSCRIBERS
E.AWTICIPATED
OUTWARD .
MOVEMENT .
7.TOTAL
5-YEAR 122Î 133 1094 9
SUBSCRIBERS
E TOTAL 5-YEAR SUBSCRIBERS,PLUS OFFlclAL LINES =36
NOTE:"Subscribed m6ans the name as "accers lines
REMARKS:
The projected Paris exchange growth rate is 515%.
FOR THE DDRROWER DATE
lÃnfEÏÏÉNÀLFlELD REPRESEWTATIVE DATE
L ...........
DUS Form 500,papu i (Rev 3-95)Modified MSO 10/2000 ODAFT 3-27-05 GRWULF
RURAL LITILTES BERYCE -usaA MAME CF BORROWËR
AREA COVERAGE SURVEY REPORT Direct Communications Rockland,Inc.
BORADWER CESIGRATTON
Idaho 513-D Rockland
1NSTRUCT:DN3 -Frapara one copy a inn lo<mlo,a gy a to.NAMË Œ EXCHANGE
Loan o..ior..For tomar wormanor..»Rus Bonun tw-2.Thps yjgormationenisformwittbeveedbvRUstoareert.Jn loan in.asibitkv.
PART C.RADIOTELEPHONE SUBSCRIBERS
suss=sassas REVENUES OFFICLALL]NES SUB5CAJSERS RËVENUES OFF1CIALUNES
A.MOBILE CELLt1.AA
B.RXED CELLULAR
C,BETRS
D.PERSDNAL COMMUNICATIONS SERV1CES
E.IMTS
F.PAGERS
PART D.SEASONAL SUBSCRIBERS
BUSlNESS RESIDENCË t RADITOTAL1MULTI-PAY 1 MULT)-TELEPHERESUBSCRIBERSPARTYPAFTTYSTATIONSPARTYPARTYSUBC
.PRESENT SUBSCRIBERS
AS OF
.SEASONAL SUBSCRJBERS
AT END OF G YEARE
PART E.TONE DIALING,CUSTOU CALUNG &CLASS FEATURES
EXISTNG PRDP SED
DESCRimoN OF SERVICE NUMBER REVENUE NUMBER REVENUE
Custom Calling 124 6508 150 6600
Caller ID 275 $1450 300 $1600
IW/CPE Maint.etc-578 $1103 600 51200
Voice Mail 25 5105 50 6250
PARTF.QTHERREVEWUE PitúDUCîNC SERViCES
Exisy WO PROPO ED
DECORPTION OF SERVICE NUMDER FLEVENUE NUMEIED REVENUE
Other (incl.non-publ.,do not disturb &12 53 15 FE5additionallistingsetc.)
EMARKS:
Monthly Revenues
FILIG Ïorm SOU,page 2 inv 3-Clij OfLai¯i
:Ti-l]E CHWULF
LOAN DESIGN
Direct Cornmunications Rockland,Inc.
Idaho 513-D Rockland
Narrative:
1.0 General
1.1 Summarv:The applicanthas received three prior REA,RUS and RTB loans,totaling$11,255,351.It has successfully utilized these funds to completely upgrade andmodernizeitssystem,provide for needed improvementsto the acquired Paris,Idahoexchange,and furnish the potential for growth capability.As a meaSLlre of the success
of its use of RUS and other long terrn funding,it has continued plant modernization andexpansionwithinternallygeneratedfundsandprovidedsubstantialruraleconomicdeveloprnentthroughthereinvestrnentofmargins.
Over the past several years,the industry has been completely revolutionized from afinancialandregulatorystandpoint.Formerly,the need for a loan was driven primarilybysubscribergrowthprojections.Today,the industry is driven by bandwidth dernands.These include not only the local LEC customers bLit also the traffic generated !]y other
outside custorners and carried into and through a typical LEC system.With dedicated,twenty four hour usage of Internet traffic,no longer can ancient network engineeringsuffice.Direct must revolutionize the speed and economics of transportinfrastructures
with integrated optical networking.Since congested voice networks are currentlyaffectingDirect,it must consider SONET dense wave division multiplexing(DWDM)in
its long range planning.
Direct seeks an additional loan in the approximate arnount of $3,316,000 for continued
service improvements,including dense wave division rnultiplexSONET equipmentfortheexistingfiberopticcabletollroutewhichservestheParisexchangte.
1.2 Svstem BackcirOLmd:It is clear Direct faces serious challenges in maintaining highqualitytelecornmunicationsservicesinitsremote,low density areas.Despite hardships,
a review of the borrower's progyress clearly dernonstrates its SLicoesses,including bothservicequalityandfinancialpainsoverthelasttwentytothirtyyears.One importantaspectofthefinancialandregulatorypressuresistheneedtoclearlydefineavisionfor
the future and respond to available opportunities with strategic changes.Direct hasaccomplishedthiswiththeformationofitsgrowingcallcenteroperationbasedinboth
Paris and Rockland making the telephone company a very largie,regional employer.
These call centers quickly create tangible rural economic development for the
somewhat impoverished,non-agriculturallabor force and also offer a financial responsebyDirecttoitssmallcompany,LEC constraints.
î.3 Area Economic Conditions:Excessivelyrural would adequatelydepict the nature ofsoutheasternidaho.Sixteen of the 37 rurai (by definition)counties in Idaho arecharacterizedas"frontier".There are only seven non-rural counties in Idaho.Boise hasanurbanpopulationoflessthan150,000 inhabitants.The rural state's next largest city
is idaho Falls at under 50,000.That's about it ior urban idaho.Direct serves primarily inPowerandBearLakecounties,with populations of less than 10,000 (county-wide!)each.The state of idaho ranks 43rd Ín pOpulation densities yet is 13 h ÍSrgeSÍ in SiZe.
Nevertheless,the economy is not stagnant.The "frontier"mentality suggestsopportunity,not resignation.Though per capita income is only within 80%of nationalaverages,idaho experienced a "rapid"growth rate of nearly 13%over the past fouryears,according to the Idaho Dept of Commerce.Manufacturing has led the way withernploymentincreasesofoveronethirdinthelastdecade,bringing ldaho to a fifthplacerankingnationally."Diversification is our new econornic strength"touts thisgrowingstate.
Idaho has traditionallybeen known for potatoes,and recently chips have been added-no,not potato chips.Computerand electronic equipment manufacturing has led idahointoitsdiversifiedeconomystatus,with this sector considered the fastest growing.
The econornic conditions of the borrower's service area remain steady and expandingatarnoderatepace.Southeastern Idaho valleys are still dotted with potatoes and otheragriculturalproductssuchashayandcattle.The gently rolling valleys and hills aresprinkledwithirrigationequipmenttoensuregoodcrops.
Area related industries include the processing of agricultural products,mining,transportation,and light manufacturing.Other industries include recreation and tourism,parbculady around Bear Lake,located directly southeast of Paris,which also boasts alargehelmet-makingplant.
1.4 Loan Desian Purposes:The borrower requests funds to finance needed wavedivisionmultiplextechnologyfortheexistingfiberoptictallrouteconnectingRocklandandArbontoPocatelloandParis;continue the elimination of non-loaded plant;andmeetaccesslinegrowthprojections.See Forms 494 and 495 for detailed cost
summanes.
10 Area CoverageSurvey
2.1 ACS Preceration:The growth projected in this Loan Design is based on an AreaCoverageSLirveystudyofhistoricalgrowthpatierns,current demands,and theprojectedgrowthpotentiaLProjectedresultsareOLitlinedontheenclosed569formsandthesystemwideandindividualexchanglegrowthcharts.
At present,there are 1,365 access lines.Continued growth and demand fortelecommunicationsservicescanbeexpected.The five year forecast will be 1,732
access lines.
2.2 Area Prosoeots:No significant changes are anticipatedin the local economy of theRockland,Arbon or Paris exchangeareas.Moderate impacts from the diversification oftheidahoeconomycanbeexpectedtospiiloverintoDirect's service areas.
Spurred by low cost,available subdivided land located at a popular elevation withscenicsurroundingsandfavorabletemperatures,noticeable growth has been evident in
areas south of Paris.This further sparks the need for service quality improvementsbothonthewestandeastsideofBearLake.Many residents come to retire,some tocommuteandworknearby,but most have secured second homes overlooking thebeautifulBearLake.Whereas a "second"home once meant serenity only (no phones)today it probably means a FAX line,Internet access and other telecommunicationsservicesmostnowtakeforgranted.
2.3 Develooment of Growth Rate:The prior loan forecast of 1,610 has not yet beensurpassed.To the extent possible,historical growth rates have been studied and usedtog2Ligedevelopment.The past rates have reflected the fairly moderate populationhistoryofPowerandBearLakescounties.Overail,the past five years have averaged a3.3%growth gain annually,achieved despite sorne noticeable fluctuations in access linegrowth.
For example,the year 2000 showed a loss despite a 2.7%gain at Paris.The overalllossisbelievedananomaly.In 1998,Paris had a loss but the systern had an overall
3 9%gain.During 1997 the system scored an overall gain of 8.6%which recognizedprimarilythepentupdernandatParisfollowing;the acquisition and cutover.
2.4 Praiected Access Line Growth:it is anticipated that the system will grow to aforecastof1,782 during the five year loan period.This approximatesa 4.95%forecastratefortheperiod,slightly higher than the 4.4%average growth rate experienced duringthreeofthelastfouryears.Paris should grow at a 5.75%rate,Arbon at a 3.5%rate andRocklandata3.25%rate.DSL penetration is estimated at 9.0%within five years,or156accesslines.
2.5 Grades of Service Be Establishment Growth:As part of the ACS review it wasdeterminedthatonly1-party service will be offered.The penetration of businesses inthesystemconstitutesasmallerpercentagethannormalofoverallaccesslines.There
is a growing ratio of access lines per establishment as most of the older dwellings which
once were questionablehave long since been demolished or abandoned.
Furtherrnare,much of the growth has occulTed as second lines,since rnany residencesneedinternetorFAXcapability.Based on an 18 month analysis of service orders,it hasbeendetermined20%of Rockland growth has been second lines,and 18.5%at Paris.
3.0 Network,Toli &EAS
3.1 Network Summarv:Prior loan fiber optic toll cable projects for Paris were
accomplishedas proposed.Other major projects,such as the new fiber route west in
the Rockland exchange.are well underway.As outiined in the costs summaries,the
major purpose of this loan .application is to provide for SONET-based,DWDM with
optical service delivery on a single platform along the existingfiber optic cable toll route
connecting Paris,Pocatello,Arbon,and Rockland.
3.2 Toil Facilities:Direct Communications Rockland,Inc.offers equal access and
operates an extensive to!!network as shown on the existing trunking diagram.Proposed
new facilities and trunk quantities are shown on the proposed trunking diagram.
Completion of intended improvementprojects will ensure long term toll reliability and
may also permit the cornpany to provide regional routing of other long distance traffic.
3.3 Extended Area Service:No changes are contemplated.The existing EAS between
Paris and Montpelierwill remain unchanged.
3.4 Other Lona Distance Traffic:Silver Star TelephoneCo.of Wyoming will continue its
interconnection to Direct facilities at Soda Springs,idaho,completedas part of the Paris
toll projectin the prior loan.
4.0 Cortstruction Projects
4.1 General:in order to keep up with demands,the technologyand the services must
be the highest quality state-of-the-art telecommunications as possible.Otherwise,
competitioncan erode customer base and revenue streams.Construction projects are
designed to meet these demands.The principal projects include lightwave equipment
for the fiber optic toll route to foster long term,reliable telecommunications services.
4.2 Network &Electronic Reinforcements:The DWDM for the fiber optic cable network,
as stated above,is the foremost loan purpose.Direct is a rnember of a regional ldaho
network consordum,known as Syringa.The group is actively deploying a SONET ring in
southeastern Idaho,where Direct has a substantial presence.
Syringa has chosen a DWOM platform and accordingly Direct Communications
Rocidand,Inc.must provide compatibleequiprnent for its parlon of the network.This
will supplementthe existing lightwaveplatform.See Tab S for a diagram of the Syringia
network.
Major COE upgrades to accomplish CALEA compliance rnList also be made.Vendor
quotes have been obtained for this needed improvement.Cost summaries in Tab 7
further define these projects by denoting proposed equipmentand pricing.
4.3 Outside Plant Construction:Aiready well into a major project designed to deployfiberdeepintothenetworkandasaminimumbetweeneachandeveryoneofafairnumberoíelectronicandremotesites.Direct intends to continue its carrier service areadesianconceptsoestolocateelectronicswithin12.000-18,000 feet of each newcustomerandthusavoidloadingunlessrequiredbyextremeremoteness.RemainingsitesfornewfiberandlightwavetoestablishshortenedloopsincludetheBearLakewestsubdivisionsandalsoarouteeastacrossBearLake.These projects should beunderwayinthenearfuturewithavailable"C"loan reserves.
5.0 Urban Facilities &!\lon-duplication
5.1 Urban Facilities:Rockland,Paris and Arbon are all populationcenters listed at lessthan5,000.Thus,the entire service area is rural.
5.2 Non-duolication:No local service will be provided outside of the franchised.areas ofDirectCommunicationsRocklandInc.
6.0 Radio Telephone Services and Special Projects
6.1 Sumrnary:No funds are requested for large military,governmentalor industrialinstallations,or mobile telecommunications services.Other carriers offer cellularservicesintheDirectarea.
7.0 State Telecommunications Modernization Plan
7.1 Summary:A State Telecommunications Modernization Plan submitted by the IdahoborrowerswasapprovedbyRUSinearly1996.The projects described herein complywiththetenetsoftheSTMP.
8.0Certification
We,theundersigned,certifythatthedatainthisLoanDesignarecorrecttothebestoî
ourknowledgeandbeliefandreasonablyreflectthecosttoservethesubscribersasprojectedontheForrns569,"AreaCoverageSurveyRepod,"whichareintegralparts
hereof,andthatthisLoanDesignadherestoRUSengineeringandconstruction standardsandpractices.
Te1ecomCánsultingServicesDate
DirectCornmunicationsRocklandinc.Date
U.5.DE ARTMENT OF AGRICULTURERURAL.EL.ECTRIFICATION ADMINISTRATIDN
.BORROWER DE5tGNATION
Idaho 513-D RocklandSUPPLEMENTALLOANPROPOLALSUMMARY.sorssowers NAME Ano Acoarss
Direct communications Rockland,Inc.
3.COM5TRUCTION COST ESTIMATE BY C.C.AREAS (C::Lucie amour..s a.tready cricumoered utra rRS g
C.O.AREA5 REA FORM 495cR ACORockland$678,000Arbo50,000Paris1,493,000
Other:Existind Re-Gen SitesEinkCreek&Pocatello DWDM 345,000SodaSprings195,000
t TOTAL 2 ,761 ,ÛÛO5.MiscELLANEDU:CONSTRUCTION CosT E5TIMATEs (Seeatachedspecialst.udy.)
E-5PECIAL PROJECTS .....................-..-.......-..--------------------...-.--------5
i MoB I LERADIO SERVICE ......-...............------------------------------------..-..--------------
c.MICROWAklE ...............................---.....----------=---------------------··-----·-.------
OTHER
5
5 ADDITIOblAL SYSTEM-WIDEREOUIREMENTs
-EWG I NEER I NG -PRELO A N ......................---..-.---------------..--------------.........---.-..-.....I 1 5 ,0 0 0f.ENGiblEERING -PD5TLOAN -.===_.2.=====..==.==---22,..====-=-..-....................................2Û ,ÛÜÛc.VENICL.Es AND WORK EQUIPMENT..........-..Ñ.$.....i....E.9.E.$Ñ..............
ci OFF I CEEQU I PMENT .....................-----.-.----.-------------.-----------------.
e-COMPLETE PRIOR LOAN PROJECT .-----------...-----------4-.................
RElMEfÙREEMENT OF GENERAL FUWDs (W.O.'s corrtpicted and in progress
TOTAL PROPOODL:CAPfTAL EXPENDfTUREs (ltem 4 +5 I 6)...............
B LEss FLJWD5 AND MATERIALL AVAlLABLE
See ¡~RS u jor items o útfd
a.CENTR A L O f~F 1 CEEQU I PMEWTR ES ERV ES ...........-..................-.......
L QUTE]DE PLANT AND STATION EQUIPMENT RELERVES ..................
c L A ND A NOBU I L DI HG RE5 E RV E5 ........................--.................-...
EHG i NEER I NG R E5 ERV E5 ...........................----...................
C GENER A L A NDCOWT I NGENCYR I 5 ERV ES ...................................L.
SPECIAL PROJECTS RE5ERVES ----.........--.---...-------------------..-.-
n-NoW-LoAM Fuwes (Excluding General Fandh ...........
LGENER A LFUM DE A V,M L A BLE ...............................
L MATERIAL AVAILABLE FOR CONSTRUCTloN ..........
9 HET ADDITIONAL LoAW REOUIRED (liem ?mùtus DJ .......
*Reserves needed for current and pending project as follows:5250,000 overrun Cll,$706,000 remainder Cl3,$244,000 rentainder C15,¶590,000 for new Coldwater 5l5 Rockland fiber optic cable project,$1 ,164 ,526 for hear Lake (Paris exch .)OSP (20 mi.BFO 36=$640,000,8 mi.13FO 24=240,000,6 mi BFC 100124=150,000 &2 mi.BFC 25x24=$50,DDC)and $220,000electronics(4 si es 9 Û55,000 per site )
REA FORM A94 3-71
Ëom Approved LOAN APPLACAT DESIGNATIONOJ{B No-40-R3:20 ...Gano a±3-D Rocklandu5DA-REA NAME OF BORROWER
Di.rect CommtIrications Rock.and .TocCONETPsUCTI.ON COST ESTIMATES cas:RAL orrica masA cars passaaso
INSTRUCTIONS -See REA Buße 220-y,ROCiland 7---1Û--01
1.GENTRAL OFFICE EDUIPMENT LINES TERMINAL.5 TRUNK5oADOITIONE.............................S
6 -NEW OFFKE ..........................
OTHEmfSpecify)COE Uncirädes includine CATTA ·233,000e-7 aT i L ...................................................-------------------.----------------------------.------s 2 3 3 ,0 0 02.ELECTRONic EQUIPMENT
-TOLL C A RR I ER .........................................................................................--..........So.E AS C A R RI ER .................,......................................................................................
c-STATicN CARRIER ................................................................................................
c-TRUNKV .F ,REPEA TE RS .......................................................................-...............
e-orwee rspecify)DWDM with Add/Drop 345 ,000
-Tor a .........................................................................................................s 3 4 5 ,D 0 03.DUTSIDE PLAHT
a.AERIAL .................................-.......................-......-.-.---.--...-----.---....---.----.--·-...--..·S6-BUR I EO .................................................................-..............----..-----...------....---c-UWDERGROUNO(/nclude cable,condu.it andrr.an holes)..................................................
OTHER (Specify)Nisc.huried line extensions inc],SEB's 100 ,000TOTAL..-...........--..-.......--.........-----...-........-.......................L 1 QQ 0 0 04.STATION EQUIPMENT
e-MAIN ETATION INSTAL.LATIONE (Exclude PABX,PBX and key synoms)........................sb.EXTEhtSIONS TO MAIN ETATIONE,PABX AWD PBK...................................................
-PABX OR PBX (Exclude extension:)...............................................
-K EY SY ST E MS (Anciude excerwicus)..........................................................
C.OTHER (Specify)
TOTAL .........---.--.--.....................-.----........-------...--..--...------..--..------.....55LANDANDE1UILDINGSgggy'CDET PER 50 FT
C CDD ADDITIDWS ....................................I 5HEADOUARTEROLOG.ADDFTIONE ..........
c NEW HEADOUARTERS DL.DG-...........
N EW UN A TTENDEDBLOG .....................
N EW L A ND .............................................................-...............
OTHER (Specify)
I TOT A L ......................................-.....----...................---.-.
E.M SCELLANEOUS (I aciditionaÏ space is needed,use rrverse sitie o orm
c-TOTAL .......................-.........................----..-..--.-..........----
7.FtEMOVAL5 ..c...............................................--....-------------......-----.------...---...--
LL TOTAL COST FOR CENTRAL OFFtCE AREA ..................----......-..-------........-----.....s .D.ROUTE MILES OF PLANT (Include draps)WO,OF MILESEEXISTING(Modljicaciour 1 -2 )...............................--....156
N EW .....................................................................-........--3 -6c-RETIRED ................-..-...............---.....----------
10.PLAHT RETIRED
OFUGIN AL CDET ..................----...----.--..---------------------------------------------5 ()SALUAGE ....................-...................-.---.-....-----------------------------..---.-------.i OEALTODEESTAFJLIGHEDWITHTHISLOAN(L¿xi each excLæge on ihr cost)
=No chanoes
c
RE^FORM -!?5 3-n
so,=assrossa LOAN AP LICA .N DESIGNATIONOMENo-4c--R2120 gl3-D Rocklandusca-erA NAME OF BORROWER
Direct Communications Rockland,ÏncCONSTRUCTIONCOSTE.5TIMATES INTR^'osser AasA ours mes4aso
INSTRUCTIOMs -See REA Bulleun 32C-J4.AT.bon 7-10-011.CEHTRAL OFFICE EQUlPMENT LINE3 TERMINALS TRUNKSc-ADDITIONS ........................---
5NEWOFFICE..........................
OTHER (Specify)
e.Tor A L ............,............................................................-................................s2.ELECTRONIC EQUIPMENT
c-DL LCAcRARRI ER ...........................................--..-......-.--------...........--.....-----....----.........5
c-LTATION CARRIER ............................-......--....-...........-.....-....-..--.-...---..-----...----...--U-TRUNK V.F.REPEATERS ......................................-....----.......-.............----......-....-..e.OTHER (Specify)
-TOTAL ................-...............................---............-..-....--...........--..------....-..-...53.OUT5IDE PLANT
a-A ER I A L .......................................y.....................--.............................-.........-........56-BURIED ............................---------------------.--------------.------------------------------------------50 ,D 0 0c.U ND ERGROUND (Include cable,condu.an¿man holes)...............................................OTHER (Specify)
c-T CT A L ................-....................-...................--....-----.-------..-------------.-------------s 5 0 ,D 0 04.STATION EQUIPMENT
MAIN STATION INST ALLATaoNs (Exclude PAßX,PID and key systems).........................sEXTEM5|DMS TO MAlW STATIDME,PABX AMD PBX....................................................PABX OR PBX (Exclude extensi.cns).....................................................KEY SYSTEMS (include extertsiorts).........................................................................d-OTHER (Specify)
A TOT A L ................................................................................................,......;5.L..AND AND BUf LDINGS 5 -COST PER SQ FT.CL CDD A DD I T I ON 5 ....................................5 5U-HEADOUARTEP BLDG.ADDITlOWS........
c-NEW HEADOUARTER.5 BLOG..............c'NEWUNA TTENDEDB LO G,....................«MEW L.AND ...........................................................-......................................OTHER (Specify)
A -TOT A L ..........................................................................................-..........,SC-MISCELLANËOUG (lj additiortal space is needed,use reverse sitie of fonr )
c-TOTAL ......-....---.-.----.------------.-.-----.---------.-----------.-----57.REMOVALS ................----.---------.....--..---...........------------------------...---------------..
L
[L TOT A L COGT FOR CE NTR ts LDFF ICE A RE A ............-................--s.............................I Û 0 0
9.ROUTE MILE5 Of PLANT (|nclude dropx)Nos QF MILESaEX15T1HG(Modifications )................s................---1 3 4NEW...............................................-2 ,Oc-RETIRED .............--..................-.....----...............--..-...---.O10.F LANT RETIRED
CL ORIGIN A L COST ........-.........--......................--..------.-...----------------------...5 QSALVAGE..-..c...s..............................,......................................................-....5 ÛSTOBEESTABLlSHEDWITHTHISLOAH(List auch exchange and the cosi)No chažiges
c.
HEA PORM A95 3-)1
Form Approved LOAN APPLicAT]ON DESIGNATIONOMENo.4C-R3120 Idaho 513·-D RocklandUSDA-REA NAME OF BORROWER
Direct communications Rockland,IncCONSTRUCTLONCOSTF..5TJMATES ENTR^L OFmos AasA care se
lHSTRUCTIONS-See REA Bulleria 320-1 Paris
,7-10-011.CENTRAL OFFICE EOUlPMENT LINES TERMINALS TRUNKSe-ADDITIONS.............................
.NEWOFF1C E ..........................
c.ANi......................................................................................................................d-orsERTSpe=ify)COE Upgrades 233,000e.TOT A L ..........................................................................................................5 2 2Z.ELECTRONIC EQUf?MENT
TOLLC A RR I ER ..................................................-...--....-...-----...----..-..--------.--.--------56-E AS C A RR I ER ....................................................-...-.......-..--..------..------.---.----u......-..10 electronic ecuinment sites 600 000c-STATIOW CARRIER ..............................................-..-...-...-...--....------------------.--------..rd-TRUNKV .F .REPE A TERS ...........................................................-..-.....-...-.----..--.....e-OTHER (Specify)
.T 07 A L .,.................................................-...-.................................................:6 0 0 ,0 0 02.OUTSIDE PLAWT
c.AERIAL .......................................,.-.................---.....-..---...--........--...----.--..-...----..-.I6.BunlED ............................................-....-........-.................--..-.....-...-..---......-c.UNDERGROUND(/nclude cable,conduit and man holes).................................................ECTHER(.Specijy)Fisc.hiiried lil2e extensio125 il2cl.SEB's 660,.000e-T oT A L .................................................................................------......--......--..5 6 5 0 ,DD 0LSTATIONEQUIPMENT
MAIW sTArioN INsTALLATioNs (Exclude PAEX.P.EX and key systems).........................:
-EXTEN510NSTO MAIN ETATIONS,PABX AND PBX..............................
KEY TYSTEMS (Ínclude extertsion:)................e-DTHER (Specijy)
1.TOTAL ..................................................5.LAND AND BUILDINGS 5 FT"C ET PER SQ0-CDO A DD IT I O HE ..........................
HEADOUARTER BLDG.ADOTTIONS .
c WEW HEADOUARTERSBLOG....
WEW UNATTEWDEDBLOG.............
e-bl EWL A MD .....................................................
.OTHER (Sµecify)
II-YOTAL ...i MtSCELLANEOUs (if addi.i.ional space is needed use reverse side o
c.TOTAL ..........--------------------------------------+-REMO\/AL.5 ....-.......-...-----------------------------------------"--
O TOTAL COCT FOR CEWTRAL OFFICE AREA .-..----......---...-...L ROUTE MFLER OF PLAWT (include dropr)
H F MIL.ELCLEXtSTlWG(Modijicazions lÑ -1
L-NEW -------------.....-------------------------------------------Ei -3c-RETIRED ................-.......---..-......---..........----------------.Q10.PLANT RETinED
L ORIGlW AL COET ..................................--ss.---..--......---------...------5SALVAGE......................-.......................------...-------....--...--...---..------.-...K OEAGTODEETTABLisHEDWITHTHISLOAN(Lin eac)]«change anci tic ca.u)No changes .
c.
EA FonM 495 :n
Detailed Cost Estimates
1.Central Office Eauiornent:
Rockland Exchange $176,DDO materials29,000 spares
28.000 installation
$233,000 TOTAL includes software upgrade &CALEA
Paris Exchange $176,DDO materials29,000 spares
28,000 installation
S 233,000TOTAL includes software upgrade &CALEA
2.Electronic Eauioment:
Rockland Exchange $175,000 materials
5,000 spares
140,0DD materials add/drop site5,000 spares
20,000 installation
$345,ûDD TOTAL inci.dense wave division rnultiplex eqpt.
Paris Exchange $54,500 materiais
2,500 spares
3,000 installation
$60,000 TOTAL digital loop carrier eqpt per site,10 sites
Other Sites:
Mink Ok./Pocatello $175,DDD materials
5,000 spares
140,000 materials add/drop site5,000 spares
20,000 installation
5 345,000 TOTAL incL dense wave division multiplexeqpt
Sode Springs 3 175,0DD materials
5,000 spares
15,000 installation
$195,000 TOTAL incL dense wave division rnuftiplexeqpt
3.Outside Plant:
Rockland Exchange 4.8 miles misc.line extensions/SES's@ $20.835 per mile
$100,000 TOTAL
Arbon Exchange 2.D miles misc.iine extensions @ $25,000 per mile
$50,000TOTAL
Paris Exchange 26.3 miles small cable size ext's/SEB's @ $25,095 per rni.
$660,000 TOTAL
Di
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Co
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