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Home My WebLink About20040726Application.pdf... PEC:EI'JEO t/: r-- '==... Conley E. Ward (ISB No. 1683) GIVENS PURSLEY LLP 601 W. Bannock Street P. O. Box 2720 Boise, ID 83701-2720 Telephone No. (208) 388-1200 Fax No. (208) 388-1300 cewCfYgi venspursley .com lLED 2rHJiJ JUt 23 Pit L.: 01 , , . " "'" . .. ".. .. ". "" ";. '...' '"' UTI L. ;(I\E~) C 0 1'1 ).1 ! S S J 0 l'1 Attorneys for Rural Telephone Company S:\CLIENTS\ 1716\25\Application.doc BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF RURAL TELEPHONE COMPANY FOR AUTHORITY TO BORROW FROM THE RURAL UTILITIES SERVICE ("RUS") IN THE AMOUNT OF NOT MORE THAN $17 500 000 Case No.j(a it.. ~rJ'f,.tJ/ APPLICATION OF RURAL TELEPHONE COMPANY Rural Telephone Company ("Rural" or "Applicant"), by and through its attorneys Givens Pursley LLP, makes this Application pursuant to Idaho Code g 61-901 for authority to execute a Loan Agreement in the amount of not more than Seventeen Million Five Hundred Thousand Dollars ($17 500 000) with the Rural Utilities Service ("RUS"). In support of its Application Rural states as follows: Applicant is a certificated telephone corporation organized under the laws of the State of Idaho providing telecommunication services including local exchange service within the state of Idaho. All notices and communications with regard to this Application should be served upon: Conley E. Ward GIVENS PURSLEY LLP 601 W. Bannock Street P. O. Box 2720 Boise, ID 83701-2720 APPLICA TION OF RURAL TELEPHONE COMPANY - ORIGINAL Mark Martell Rural Telephone Company 704 W. Madison Avenue O. Box 969 Glenns Ferry, ID 83623 The proposed RUS loan proceeds will be used to pay for and partially reimburse general funds to: (1) establish a new central office and switch in the Boise River exchange, (2) provide new fiber optic and buried cable for inter-office transmission, (3) provide for switch and software upgrades and access line growth through 2008 , and (4) make related system improvements. A portion of the loan may qualify as a hardship loan with an interest rate of five percent (5%) per annum. The interest rate on the rest of the loan will be at RUS's then current market rates at the time advances are made. A copy of the RUS loan application is attached as Exhibit A. A copy of the Board of Directors Resolution approving said application and loan is attached as Exhibit B. The proposed transaction is consistent with the public interest. Construction of the upgraded facilities will improve service for Rural's existing Idaho customers. Construction will further serve the goals of universal service. A Proposed Order granting this Application is attached hereto as Exhibit C. Notice of this Application will be published within seven (7) days in The Idaho Statesman (Boise). A copy of this Notice is attached as Exhibit D. Applicant submits that the public interest does not require a hearing on this matter and it requests that the Commission process this Application and determine this matter by Modified Procedure, pursuant to Rule 23 of the Commission s Rules of Practice and Procedure. In the event the Commission determines that formal proceedings on this Application are necessary, Applicant stands ready for immediate hearing. Applicant has attached its filing fee, calculated pursuant to Section 61-905, Idaho Code, in the amount of ONE THOUSAND DOLLARS ($1 000.00). WHEREFORE, Applicant respectfully requests an Order of this Commission: APPLICA TION OF RURAL TELEPHONE COMPANY - 2 Granting the foregoing Application of Rural Telephone Company to execute and deliver to the Rural Utilities Service a loan agreement in an amount not to exceed $17 500 000; Granting such other relief as the Commission deems just and reasonable in this matter. RESPECTFULLY SUBMITTED this 23rd day of July 2004. APPLICA TION OF RURAL TELEPHONE COMPANY - 3 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 23rd day of July 2004, I caused to be served a true and correct copy of the foregoing by the method indicated below, and addressed to the following: Jean Jewell, Secretary Idaho Public Utilities Commission 472 W. Washington Street O. Box 83720 Boise, ID 83720-0074 APPLICA TION OF RURAL TELEPHONE COMPANY - 4 S. Mail Hand Delivered Overnight Mail Facsimile lLl ~....... -r Itb 11.. 892 W. MADISON A VENUE GLENNS FERRY, IDAHO 83623 TEL E PH 0 NE e 0 M PAN Y (208) 366-2614 . FAX (208) 366-2615 April 8, 2004 US Department of Agriculture Rural Utilities Service Telecommunications Division RE:G Loan / Idaho 515 Rural Telephone Company hereby makes request for G Loan in the amount of $17,425 104. The intended purpose of the loan proceeds is to provide new underground plant and upgraded services in each of Rural Telephone Company exchanges in Idaho and Nevada. Attached herewith are the Board Resolution, RUS Loan Application, Loan Designand additional supporting documentation as required. If you have any questions, please contact Michael 1. Martell, OSP ManagerNP, orMark R. Martell, Administrative Manager. Michael and Mark fill the duties of General Manager and oversee the entire Rural Telephone Company operation. Sincerely, James R. Martell President JRM/ sec EXHIBIT A - - IRB CONSENT RESOLUTION RURAL TELEPHONE COMPANY The undersigned being the President, Vice-President, and Secretary-Treasurer of Rural Telephone Company (R TC) do hereby take the following corporate action in accordance with the general corporation laws of the State of Idaho and the constituent documents of the corporation. BE IT RESOL VED permission is hereby granted to make application to and upon approval subsequently indebt the corporation for the purpose of obtaining a loan through the Rural Utilities Service (RUS) in the amount ofUS$17 425 204. BE IT FURTHER RESOLVED, RTC is, in its understanding and to the best of its knowledge, STMP Compliant. BE IT FURTHER RESOLVED, Conley Ward, attorney at law, is appointed as the attorney in fact to oversee all aspects of the RUS loan referred to in this resolution. BE IT FURTHER RESOLVED, RTC selects and appoints Michael J. Martell and Mark R. Martell jointly to fulfill any and all General Manager duties on behalf ofRTC. 2004. The undersigned have executed this Consent Resolution this 7 .. day of April James R. Martell, President Michael 1. Martell, Vice-President Carmela M. Martell, Secretary-Treasurer Corporate Seal --r M:) According to the Paperwork Reduction Act of 1995, an agency may rwt conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0572-0079. The time required to complete this information collection is estimated to average 30 minutes per ruponse, including the time for reviewing instructions. searching existing data sources, gathering and maintaining the data ne8ded, and completing and reviewing the collection ofinformation. S. Department of Agriculture Rural Utilities Service APPLICATION FOR TELECOMMUNICATIONS LOAN OR LOAN GUARANTEE INSTRUCTIONS - Prepare two copies of this form. For further information, see RUS Bulletin 1737-and CFR 1735 and CFR 1737. 1. NAME AND ADDRESS OF BORROWER (Street. City, State, Zip Code) 2. TYPE OF ORGANIZATION (Check one) a. COMMERCIAL CORPORATION b. COOPERATIVE OR MUTUAL c. PUBLIC BODY Rural Telephone Comp~ny 892 W. Madison Avenue Glenns Ferry, In 83623 3. INDICATE THE LOAN MATURITY BEING REQUESTED (Check one) b. COMPOSITE ECONOMIC LIFE OF FACILITIES FINANCED PLUS 3 YEARS. 4. AMOUNT OF LOAN APPLIED FOR: YEARS (Maximum of 35), 5. NUMBER OF EXCHANGES:6. NUMBER OF SUBSCRIBERS: a. IN EXISTING SYSTEM - - - - - - - - - - - - - - - a. IN EXISTING SYSTEM - - - - - - - - - - - - - - - b. TO BE FINANCED BY THIS LOAN - - - - - - - - b. TO BE ADDED DURING FORECAST PERIOD... 7. PURPOSE OF LOAN (Explain the purposes for which loan funds are intended and state the amount required for each purpose.) FEDERAL DEBT DELINQUENCY CERTIFICATION 8. IS THE BORROWER DELINQUENT ON ANY FEDERAL DEBT? (Check one) (XI NO YES (If Yes, provide explanatory information below. NOTE: Examples of debts include, but are not limited to, delinquent taxes, guaranteed or direct government loans (more than 31 days past due), and other administrative debts. APPLICANT CERTIFICA TION FEDERAL COLLECTION POLICIES FOR COMMERCIAL DEBT The Federal Government is authorized by law to take any or all of the following actions in the event that a borrower s loan payments become delinquent or the borrower defaults on its loan: (1) Report the borrower s delinquent account to a credit bureau; (2) Assess additional interest and penalty charges for the period of time that payment is not made; (3) Assess charges to cover additional administrative costs incurred by the Government to service the borrower s account; (4) Offset amounts owed to the borrower under other Federal programs; (5) Refer the borrower s debt to the Internal Revenue Service for offset against any amount owed to the borrower as an income tax refund; (6) Refer the borrower s account to a private collection agency to collect the amount due; and (7) Refer the borrower s account to the Department of Justice for litigation in the courts. All of these actions can and will be used to recover any debts owed when it is determined to be in the interest of the Government to do so. CERTIFICA TION I have read and understand the actions the Federal Government can take in the event that lfail to meet my scheduled payments in accordance with the terms and conditions of my agreements and certify that the information contained herein is accurate and complete the best of my knowledge and belief tlGNATURE OF AUTHORIZED OFFICIAL James R. Martell President April 7, TITLE DATE RUS Form 490 (Rev. 09-2003) -rn6 D " " The following statement and certification will become a part of your application currently on file for a loan from the Rural Utilities Service and/or the Rural Telephone Bank. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?YES Note: Example of debts include, but are not limited to, delinquent taxes, guaranteed or direct government loans (more than 31 days past due) and other administrative debts. If Yes, provide explanatory information. APPLICANT CERTIFICATION FEDERAL COLLECTION POLICIES FOR COMMERCIAL DEBT The Federal Government is authorized by law to take any or all of the following actions in the event that a borrower s loan payments become delinquent or the borrower defaults on its loan: (1) Report the borrower s delinquent account to a credit bureau; (2) Assess additionalinterest and penalty charges for the period of time that payment is not made; (3) Assess charges to cover additional administrative costs incurred by the Government to service the borrower s account; (4) Offset amounts owed to the borrower under other Federal programs; (5) Refer the borrower s debt to the Internal Revenue Service for offset against any amount owed to the borrower as an income tax refund; (6) Refer the borrower s account to a private collection agency to collect the amount due; and (7) Refer the borrower s account to the Department of Justice for litigation in the courts. All of these actions can and will be used to recover any debts owed when it is determined to be in the interest of the Government to do so. Certification I have read and understand the actions the Federal Government can take in the eventthat I fail to meet my scheduled payments in accordance with the terms and conditions of my agreements. Signed: Title: James R. MartellBresident Company:Rural Telephone Company, rnc. Date:March 1, 2004 DEBTDELQ.DOC (Telephone Version 2, 6/98) The following statement and certification will become a part of your application currently on file for a loan from the Rural Utilities Service and/or the Rural Telephone Bank. IS' THE APPLICANT D ELIN Q VENT ON ANY FEDERAL DEB YES Note: Example of debts include, but are not limited to, delinquent taxes, guaranteed or directgovernment loans (more than 31 days past due) and other administrative debts. If Yes, provide explanatory information. APPLICANT CERTIFICATION FEDERAL COLLECTION POLICIES FOR COMMERCIAL DEBT The Federal Government is authorized by law to take any or all of the following actions in the event that a borrower s loan payments become delinquent or the borrower defaults on its loan:(1) Report the borrower s delinquent account to a credit bureau; (2) Assess additionalinterest and penalty charges for the period of time that payment is not made; (3) Assesscharges to cover additional administrative costs incurred by the Government to service theborrowers account; (4) Offset amounts owed to the borrower under other Federal programs; (5) Refer the borrower s debt to the Internal Revenue Service for offset against any amount owed to the borrower as an income tax refund; (6) Refer the borrower s account to a privatecollection agency to collect the amount due; and (7) Refer the borrower s account to theDepartment of Justice for litigation in the courts. All of these actions can and will be used to recover any debts owed when it is determined to be in the interest of the Government to do so. Certification I have read and understand the actions the Federal Government can take in the event that I fail to meet my scheduled payments in accordance with the terms and conditions of my agreements. Title: James R. Martell President Signed: Company:Rural Telephone Company, Ihc. Date:Mar ch 1, 2004 DEBTDELQ.DOC (Telephone Version 2, 6/98) --rA6 Response to RUS letter from Kim Jacobs Page 2, #1) Page 2, #5) Page 2, #8) Page 2, #9) Form 479 for years 2001 & 2002 attached. Form 479 for year 2000 is not available. Attached are audited firiancial statements for year 2000. Depreciation percentage schedule attached. None. Detail of specific accounts available upon request. Accumulated Depreciation schedule for 12/31/02 attached. According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor. and a person Is not required to respond to, a collection of Information unless it displays a valid OMS controlnumber. The valid OMB control number for this information collection Is 0572-0031. The time required to col11'lete this Information collection Is estimated to average 4 hours per response. including the time forrevlewtng Instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of Information. USDA-RUS This data wRI be use~ by RUS to review your financlaf situation. Your response Is required f7 U.C. 901 et sea. and may not be confidential. BORROWER NAME AND ADDRESS FINANCIAL AND STATISTICAL REPORT Rural Telephone Company 892 West Madison AvenueFOR TELECOMMUNICATIONS BORROWERS Glenns Ferry, 10 83623- INSTRUCTIONS-Submit report to RUS within 30 days after close of the perIod.PERIOD ENDING BORROWER DESIGNATIONFor detaRed Instructions. see RUS Bulfetln 1744-2. Report In whole dolfars only.12/2002 100515 CERTIFICATION We hereby certify that the entries in this report are in accordance with the accounts and other records of the system and reflect the status of the system to the, best of our knoWledge and belief. ALL INSURANCE REQUIRED BY 7 CFR PART 1788, CHAPTER XVII, RUS, WAS IN FORCE DURING THE REPORTING PERIOD ANDRENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES. 07/03/2003 07/03/2003 Mark Martell, Manager DATE Jim Martell, President DATE Part A Balance Sheet Balance Balance Balance Balance Prior Year End of PeriOd Prior Year End of Period ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current Assets Current Uabilities 1. Cash and Equivalents 498,821 456,323 25. Accounts Payable 710,636 355,641 2. Cash-RUS Construction Fund 432 26. Notes Payable 3. Affiliates:27. Advance Billings and Payments a. Telecom, Accounts Receivable 28. Customer Deposits 14,162 16,834 b. Other Accounts Receivable 29. Current Mal LIr Debt 185.436 527,162 c. Notes Receivable 30. Current Mat. LIr Debt-Rur. Dev.297,183 290,037 4. Non-Affiliates:31. Current Mal-Capital Leases a. Telecom, Accounts Receivable 72,930 86,679 32. Income Taxes Accrued b. Other Accounts Receivable 716,589 344,939 33. Other Taxes Accrued c. Notes Receivable 500 34. Other Current liabilities 268,108 320,005 ~. Interest and Dividends Receivable 35. Tola! Current liabilities (251hru 34)1.475,525 509,679 6. Material-Regulated 495,596 296,845 Long-Term Debt 7. Material-Nonregulated 39,161 38,929 36. Funded Debt-RUS Notes 5.488,027 5,441,800 8. Prepayments 501 37. Funded Debt-RTB Notes 9. Other Current Assets 140,796 38. Funded Debt-FFB Notes 10. Total Current Assets (11hru 9)966,325 239,716 39. Funded Debt-Other Noncurrent Assets 40. Funded Debt-Rural Develop. Loan 11.lnvestrnent in Affiliated Companies 41. Premium (Discount) on UT Debt 8. Rural Development 112.804 005,712 42. Reacquired Debt b. Nonrural Development 43. Obligations Under Capital Lease 12. Other Investments 44. Adv. From Affiliated Companies 8. Ruraf Development 45. Other Long-Term Debt 61,111 115,894 b. Nonrural Development 212,738 46. Total Long-Term Debt (36 thru 45)549,138 557,694 13. Nonregulated Investments 420,507 300,100 Other Uab. & Det. Credits 14. O1her Noncurrent Assets 524,987 304,097 47. Other Long-Term liabilities 133,596 256,423 15. Deferred Charges 48. Other Deferred Credits 16. Jurisdictionaf Differences 49. Other Jurisdictional Differences 17. Total Noncurrent Assets (11 thru 16)271,036 609,909 SO. Total Other liabilities and Deferred Credits (47 thru 4~~133,596 256,423 Plant, Property, and Equipment Equity 18. Telecom, Plant-in-Service 12,810.227 16,085,105 51. Cap. Stock Outstand. & Subscribed 56,900 56,900 19. Property Held for Future Use 000 000 52. Additional Paid-in Capitaf 10,197 10,197 20. Plant Under Construction 313,507 53. Treasury Stock 21. Plant Adj., Nonop. Plant & Goodwill 54. Membership and Cap. Certificates 22. less Accumulated Depreciation 237,349 108,119 55. Other Capital 869)104,975) ,23. Net Plant (18 thru 21 less 22)576,878 294,493 56. Patronage Capital Credits 24. Total Assets (10 + 17 + 23)11,814,239 13,144,118 57. Retained Earnings or Margins 656,752 858,200 58. Total Equity (51 thru 57)655,980 820,322 59. Total Uabilities and Equity (35 + 46 + 50 + 58)814,239 13,144,118 RUS Form 479 Total Equity = 29.06 % of Total Assets Page 1. USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT ID0515 FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2002 INSTRUCTIONS-See RUS Bulletin 1744-2 Part B. Statements of Income and Retained Earnings or Margins Item This Period This Year last Year (a)(b)(c)1. local Network Services Revenues 389,694 371,980 2. Network Access Services Revenues 263,680 022,988 3. Long Distance Network Services Revenues 196 1794. Carner BIlling and Collection Revenues 102,823 76,459 5. MlsceUaneous Revenues 31,177 562) 6. Uncollectible Revenues 13,054 120)7. Net Operating Revenues (1 thru Siess 6)778,516 4,429,1648. Plant Specific Operations Expense 596,996 864,374 9. Plant Nonspecific Operations Expense (Excluding Depreciation & Amortization)402,360 197 746 10. Depreciation Expense 871,899 917,32011. Amortization Expense 12. Customer Operations Expense 54,772 79,791 13. Corporate Operations ~pense 173,120 933,799 14. Total Operating Expenses (8 thru 13)099,147 993,030 15. Operating Income or Margins (7 less 14)679,369 1,436,134 16. Other Operating Income and Expenses 284,079) 17. State and local Taxes 86,213 18. Federal Income Taxes 19. Other Taxes 10,978 88,490 20. Total Operating Taxes (17 + 18 + 19)191 88,490 21. Net Operating Income or Margins (15 + 16 - 20)298,099 347,644 22. Interest on Funded Debt 272,675 240,289 , 23. Interest Expense - Capital leases 24. Other Interest Expense r-~'65,114)49,160 25. Allowance for Funds Used During Construction 26. Total Fixed Charges (22 + 23 + 24 - 25)207,561 289,449 27. Nonoperating Net Income 311,840)137,780) 28. Extraordinary Items 29. Jurisdictional Differences 30. Nonregulated Net Income 31. Total Net Income or Margins (21 +27 +28+29+30-26)778,698 920,415 32. Total Taxes Based on Income 33. Retained Eamings or Margins Beginnlng-of-Year 079,502 860,850 34. Miscellaneous Credits Year-ta-Date 35. Dividends Declared (Common) 36. Dividends Declared (Preferred) 37. Other Debits Year.to-Date 701,763 38. Transfers to Patronage Capital 39. Retained Eamlngs or Margins End-of-Period ((31+33+34) - (35+36+37+38))858,200 079,502 40. Patronage Capital Beglnnlng-of.Year 41. Transfers to Patronage Capital 42. Patronage Capital Credits Retired 43. Patronage Capital End-of-Year (40+41-42) 44. Annual Debt Service Payments Sqr 'fJY 644 932 658,750 45. Cash Ratio ((14+20-10-11) /7)0000 4864 0.4886 - 46. Operating Accrual Ratio ((14+20+26) /7)0000 7123 7611 47. TIER ((31 + 26) /26)0000 7500 1800 48. DSCR ((31+26+10+11) 144)0000 8800 2300 RUS Form 479 Page 2 USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515 FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2002 INSTRUCTIONS-See RUS Bulletin 1744- Part C. Subscriber (Access Line) and Route Mile Data 1. Rates 1. Rates 2. Subscribers 2. Subscribers 2. Subscribers 3. Route Miles 3. Route Miles (Access LInes)(Access lines)(Access lines)Total Exchange Business Residential Total (incl. Fiber)Fiber LIne (a)(b)(a)(b)(c) .(a)(b) Shoup 40.21.67. Boise River 42.24.251 287 107.18. ipanuk 42.24.112 119 66. Three Creek 40.21.34. Atlanta 40.21.10. Prairie 42.24.42. arbldge 16.16.15. Tuscarora 16.16.100 115. North Fork 16.16.117 136.12. Red Rock 16.16.644 714 191.00 ~Wn~ Route Mileage outside exch. area ' 0.00 0.Total 246 1.318 1,564 783.00 32. No. Exchanges RUS Form 479 Page 3. USDA-RUS BORROWER DESIGNATION FINANCIAL ANDST A TISTICAL REPORT 100515 FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2002 INSTRUCTIONS-See RUB Bulletin 1744- Part D. System Data 1. No. Plant Employees 2. No. Other Employees 3. Square Miles Served 4. Access Lines per Square Mile 5. Subs. per Route Mile 117 1.99 RUS Fonn 479 Page 3. USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515 FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2002 INSTRUCTIONS-See RUS Bulletin 1744-2 Part E. Toll Data Interstate:Average Schedule (!) Cost Basis 1. Types otTol1 Settlements (Check One)Intrastate:Average Schedule (!) Cost Basis RUS Form 479 Page 3. USDA~RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515 FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2002 INSTRUCTIONS-See RUS BulletIn 1744- Part F. Funds Invested In Plant During Year 1. RUS. RTB, & FFB Loan Funds Expended 2. Other Long-Tenn Loan Funds Expended 3. Funds Expended Under RUS Interim Approval 4. Other Short.Tenn Loan Funds Expended 5. General Funds Expended (Other than Interim)S6Cf 51'1 274,878 6. Salvaged Materials 7. Contribution In Aid to Construction 8. Gross Additions to Telecom. Plant (1 thru 7)274,878 RUS Form 479 Page 3. USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515 FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2002 INSTRUCTIONS-See RUS Bulletin 1744-2 Part G. Investments in Affiliated Companies Current Current Cumulative Cumulative Cumulative Year Data Year Data Data Data Data Investments Cumulative Cumulative Investment Income/loss Investment Income/loss Current This Year This Year To Date To Date Balance (a)(b)(c)(d)(e)(ij 1. Investment In Affiliated Companies - Rural Development 107,091)666,346 660.634)005,712 2. Investment In Affiliated Companies. Nonrural Development RUS Form 479 Page 3. USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515 FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2002 INSTRUCTIONS-See RUS BulletIn 1744- Part H. Current Depreciation Rates Are corporation s depreciation rates approved by the regulatory authority with jurisdiction over the provision of telephone services? (Check one)I!J YES Equipment Category Depreciation Rate 1. Land and support assets - Motor Vehicles 33.33 % 2. Land and support assets - Aircraft 00% 3. Land and support assets - Special purpose vehicles 00% 4. Land and support assets - Garage and other work equipment 14.30 % 5. Land and support assets - Buildings 90% 6. Land and support assets - Furniture and Office equipment 12.50 % 7. Land and support assets - General purpose computers 20.00 % 8. Central Office Switching - Digital 63% 9. Central OffIce Switching - Analog & Electro-mechanical 00% 10. Central OffIce Switching - Operator Systems 00% 11. Central OffICe Transmission - Radio Systems 00% 12. Central OffIce Transmission - Circuit equipment 63% 13. Information origination/termination - Station apparatus 00% 14. Information origination/terminatlon - Customer premises wiring 00% 15. Information originationlterminatlon - Large private branch exchanges 00% 16. Information origination/termination - Public telephone terminal equipment 00% 17. Information origination/termination - Other terminal equipment 00% " 18. Cable and wire facilities - Poles 00% 19. Cable and wire facilities - Aerial cable - Metal 00% 20. Cable and wire facilities - Aerial cable - Fiber 00% 21. Cable and wire facilities - Underground cable - Metal 00% 22. Cable and wire facilities - Underground cable - Fiber 00% 23. Cable and wire facilities - Buried cable - Metal 25% 24. Cable and wire facilities - Buried cable - Fiber 50% 25. Cable and wire facilities - Conduit systems 50% 26. Cable and wire facilities - Other 00% RUS Form 479 Page 4. USDA.RUS Bbrrower Designation FINANCIAL AND STATISTICAL REPORT Rural Telephone Company (100515) FOR TELECOMMUNICATIONS BORROWERS Period Ending 12/2002 Notes to the Financial and Statistical Report Part H Depreciation rates reported on Part H are averaged based on the approved rates in individual states. The following information provides details concerning averaged depreciation rates reported. Ln 5 Ln 8 Ln 12 Ln23 Ln24 . Ln 25 Buildings - Idaho Buildings - Nevada Avg. CaE - Idaho CaE - Nevada Avg. 12% 26% 63% Transmission - Idaho Transmission - Nevada Avg. 10% 26% 63% Burried Cable - Idaho Burried Cable - Nevada Avg.25% Burried Fiber - Idaho Burried Fiber - Nevada Avg. Conduit - Idaho Conduit - Nevada Avg. IRUS Form 479 Page 4.2 -'-~~.A~ .L,u.u,L:u. .UVLU:::' ~ V V ~. .. -- --..---. ~, ""","""" ","g I( petliOn IS not required to respond to, a collection of Informllltion unless It displays a valid OMB control"",""",. '11" QIIII IJMtI control number for this Informetlon collection Is 0572-0031. The time requirecltD complete ltd. information collection Is estimated to average 4 hours per response, Inoludlnglhe tiMe rer teView\hg Instrl.lctions, searching eldstins data sources, gathering and maintaining the data needed, and completing land reviewing the collection ollnforrnatlon.USDA-RUS Thkl data be unt/ by RUS to review your Omino;.' tlltuat/on. Your respon&e is requiredIIO1.' and me notbeaonRdenffef. BORROWER NAME AND ADDRESS RURAL TELEPHONE COMPANY 704 West MadIson Avenue Glenns Ferry, ID 83623- ..- ' FINANCIAL AND 8T A TIS TI CAL REPORTFOR TELECOMMUNICATIONS BORROWERS .. INSTRUCTlONS-submll reporl tD RUS with/II 30 day.s III'Ier close of the period.FordefaUed Instruotlons .tee RlJs Bulletin 1744.2. Report in whole dol/arB only. PERla BORRO Eft DESIGNATION 1D0515CERTIFICA ilONWe hereby certify that the entries ' this report ate In aacordance with the accounts and other tecott(s of the system and reflect the status of the systemto the best of our knowledge and belIef. ALL INSURANCE REQUIRED BY 7 CFR PART 1788, CHAPTER XVII, RUS , WAS IN FORCE DURING THE REPORTING PERIOD ANDRENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES. ASSETS Cunent Assets 1. QJsh end EquiVabnts 2. Cash.RUS Consll\lctlon Fund 3. Affilates: 8. TeBcom, Ato:JU/1(s Receivab~ b. Other Accot.mts Receivable c. Notes Receivabe 4. Noo-Affifates: 8. T$com, Accounts Reoeivab~ b. Olher Aooounts Reaeivabe c. Notes Reooivabe and Dividends Receivabe . MateriaJ.ReguQted . Materia~Nonregulated 8. Prepayments 9. Olher OJrrent Assets 10. Total QJrrerrt Asset5 (11hru 9) Noncurrent Asse1s 11. Investmen,t in Afliiated Companies a. Rural Devebpment . Nomura' Devebpmant 12. other Investments a. RUral Devebpmenl b. Nonr\Jra/ Dewbpment 13. NonreguBted Investments 14. Olher Noncurrent Assets 15. Deferred Charges 16. Jurisdictional Differences 17. Total Nonourrent Assets (11thnJ 16) Plan~ Property, and EquIpment 18. Teeoom, Plant~n-SeMce 19. Property Held for Futult;) Use 20. Plant Under Construotion 21. Pbnt Adj., Nonop. Plant & GoodwiD 22. Less Accumubted Depreciation 23. Net Plant (18 thru 21 ass 22) '---'" 24. Total Assets (10 + 17 +23) RUS Form 479 -, ,---_. -.-.--'-,- .: ' . Balance Prior Year 271 708 432 158 586 282 186 775 104 550 613 389 600,428 000 606 392 998 036 798 DATE Part A. Balance Sheet Balance End of Period , - -, - u -, 47. Other Long-Term Liabiities 250 133 59648. Other Deferred Qedits 49. Other Jurisdictional Differenoes . 50. Total Other UElbiities and Deferred Qed~s (471hru 4~)3,250 133596 ,..-..-.--., 930 716 589 495 596 161 140 796 966 325 212 738 420 507 524 987 271 036 810 227 000 237349 576 878 814 239 i ' --- . 'n _,- ""', ._--- James R. Martell. President UABlLITIES AND STOC~OLDERS' EQUITY Current Uabillties 25. Accounts Payable 26. Notes Payab~ 27. Advance Billngs and Payments 28. QIstomer Deposits 29. o..rent Mat. LIT Debt 30. Qmoot Mat. LIT Debt-Rur. Day. 31. Qment Mat...Q!pital Leas:es J2. Income Taxes Accrued 33. Other Taxes Accrued 34. Other Q/rrent UabilUes 35. Total Clmnf Uabil1les (25/hru 34) Lang-Term Debt 3ft Funded Debt-RUS Noles 37. Funded Debt-RTB Notes 38. Funded Debt-FFB Notes 39. Funded Debt.Other 40. Funded Debt-Rural Devebp. Loan 41. Premium (Discount) on ur Debt 42. Reaoquired Debt 43. Oblgat/ons Under Capital Lease 44. Ad". From Affiiated Comp~ies 45. Other Long-Term Debt 46. Totallatg.Term Debt (36 thnJ 46) Other Llab. & Def. Credits Balance Prior Year 179 139 616 110 071 258 102 234 209 000 774.162 314 955 223 683 538 838 Equity 51. Cap. Stock Outstand. & Subscribed 52. Additional Paid~n QJpftal 53, TltlasUI)' Stock 54. Membership and Qlp. ~rtifiaates 55. Other Capital 50. Patronage Capital Qsdits 67. Retained Enings or Margins 58- Totel Equity (51 Ihru 57) 59. Tolal Liabillies arId Equity (35 + 46 + 50 + 58) 900 197 247) 438 100 481 950 798 200 Total Equity '= 30.95 % of Total Assets 05/10/2002 DATE Balance End of Period 710 636 162 185 436 297 183 268 108 475 525 488 027 111 549 138 900 197 869) 656 752 655 980 814239 Page 1. """""""""""VU &\..LJ..JJ.JnJ.un ~ l(UKAL T~LEPHONE ~OO3USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2001INSTRUCTIONS-see RUB Bulletin 1744-2 , ' Part B. Statements of Income and Retained Earnings or MargIns Item This Period This Year last Year (a)JI?)(c)1. Local Network Servioes Revenues 371 980 292 4892. Network Access Services Revenues 022 988 828 868. long Distance Network Services Revenues 179 4424. Carrier Billing and CollecUon Revenues 459 7105. Miscellaneous Revenues 562)3866. Uncollectible Revenues 120)3557. Net Operating Revenues (1 thru 5 less 6) 429 164 237 5408. Plant Specific Operations Expense 864374 888 5579. Plant Nonspecific Operations Expense (Excluding Depreciation & Amortization) 197 746 207 68910. Depreciation Expense 917320 770 40611. Amortization Expense 12. Customer Operations Expense 791 151 51013. Corporate Operations Expense 933 799 579 00614. Total Operating Expenses (8 thru 13) 993 030 597 16815. Operating Income or Margins (lless 14) 436 134 640 37216. Other Operating Income and 8cper\3es 17. State and Local Taxes 18. Federal Income Taxes 19. Other Taxes 490 30320. Total Operating Taxes (17 of. 16 + 19) 490 30321. Net Operating Income or Margins (15 + 16 - 20) 347 644 569 06922. Interest on Funded Debt 240 289 266 406 '- " ~3. Interest Expense - Capital Leases 14. Other Interesl Expense 160 64625. Allowance for Funds Used During Construction 26. Total Fixed Charges (22 + 23 + 24 - 25) 289.449 298 05227. Nonoperating Net Income 137 780)242 64228. Extraordinary Items 29. Jurisdictional Differences 30. Nonregulated Net Income 31. Total Net Income or Margins (21 +27+28+29+30-26) 920 415 513 65932. ToW Taxes Based on Income 33. Retained Earnings or Margins Beginning-of-Year 438 100 636 62934. Miscellaneous Credils Year-tc~Date 35. Dividends Declared (Common) 36. Dividends Declared (Preferred) 37. Other Debils Year~to-Date 701 763 712 18838. Transfers to Patronage Capital 39. Retained Earnings or Margins End-or-Period ((31+33+34) - (35+36+37+38)) 656 752 438 10040. Patronage Capital Beginning-of-Year 41: Transfers to Patronage Capital 42. Patronage Capital Credils Retired 43. Patronage Capital End-of-Year (40+41-42) 44. Annual Debt Service Payments 658 750 345 46645. Cash Ratio ((14+20-10-11) /7) 0000 0.4886 0.447948. Operating Accrual Ratio ((14+20+26) /7) 0000 7611 7001'- ~7. TIER ((31 + 26) /26) 0000 1800 0800 - 1 .~. DSCR ((31+26+10+11) /44) 0000 2300 7.4700 RUS Form 479 Page 2 ~~ ~~~~ ~A& "~"'&..U.6"'\.LIJJ.:.~ ~UKaL 'l~Lh~HUN~~OO4(J\:iUA-KU~'BORROWER DESIGNATION --- FINANCIAL AND STATISTICAL REPORT IDO515FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 1212001INSTRUCTIONS-See RUB Bullettn 1744-2. Part C. Subscriber (Access Line) and Route Mile Data 1. Rates 1. Rates 2. Subscribers 2. Subscnbers 2. Subscribers 3. Route Miles 3. Route MUes(Access Unes)(Access Unes)(Access lines)TotalExchangeBusinessResidentialTotalOne!. Fiber)Fiber line (a)(b)(a)(b)(e)(aJ (b)1 Shoup 40.21-63 67.Boise River 42.24.248 282 107.18.ipanuk 42.24.105 66.hree Creek 40.21.63 34.\lanta 40.21. 10.rairie 42.24. 42.Jarbidge 16.16. 15.Wlcarora 16.16.106 115.North Fork 16.16.113 136.12.Red Rock 16.16.616 674 191. Mobile Wireless Route Mileage outside exch. area 00 0.To~1 245 1 272 1 517 783,00 32.No. Exchanges ........ --1. '-1 RUS Form 479 Page 3. --- ~&& &."'"""""""&'.11.1..:1 -t J:\U.ttl\L TtiL~PHONE ~OO5V\:iUA-RUS BORROWER DESIGNATION ID0515FINANCIAL AND STATISTICAL REPORT FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2001INSTRUCTIONS-See RUS SuI/sUn 1744- Part D. System Data 1. No. Plant Employees 2. No. Other Employees 3. Square MUes Served 4. Access lines per Square Mile 5. Subs. per Route Mile 117 '---' .--../ RUS Form 479 Page 3. 'A~~""'" .......... ........uU.L\..I.JJO -) KUKAL TELEPHONE IgJOO6USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515FOR TELECOMMUNICATIONS BORROWERS PERIOD ENDING 12/2001INSTRUCT/ONS-8se RUE; Bulletin 1744-2 Part E. Toll Data Intemtate:Average Schedule I!J Cost Basis1. Types ofTol! Setflemenls (Check One) Intrastate:Average Schedule I!J Cost Basis -...-/. '---./ RUS Form 479 Page 3. U\::iUA-RUS FINANCIAL AND STATISTICAL REPORT FOR TELECOMMUNICATIONS BORROWERS INSTRUCTIONS-See RUS Bul1etin 1744- BORROWER DESIGNATION IDO515 PERIOD ENDING 12/2001 Part F. Funds Invested In Plant During Year 1. RUS. RTB, & FFB Loan Funds Expended 2. Other Long-Term Loan Funds Expended 3. Funds Expended Under RUS Interim Approval 4. Other Short-Term loan Funds Expended 5. General Funds Expended (Other than Interim) 6. Salvaged Materials 7. Contribution in Aid to Construction 8. Gross Additions to Telecom. Plant (1 thru 7) , '---"" RUS Form 479 """"""""LJ ....u"""""'.l .l.lVHc.I&jUUI Page 3. 485 308 941 387 2.426 695 USDA-RUS '6~~""""""""'" """""""'U,,".LU.D FINANCIAL AND STATISTICAL REPORT FOR TELECOMMUNICATIONS BORROWERS INSTRUCTIONS-8ee RUS Bulletin 1744. BORROWER DESIGNATION 100515 PERIOD ENDING 12/2001 ~ KUKi\L '!'J:!;LJH'HUNE Part G. Investments In Affiliated Companies Curren I Current CumulativeYear Dala Year Data Dala Investments (a) 1. Investment in Affiliated Companies. Rural Development 2. Investment in Affilialed Companies - Nonrural Development Investment This Year (b) '--' RUS Form 479 Incomelloss This Year (c) ( 35 430) Cumulative Inveslment To Date (d) 666346 Cumulative Data Cumulative Income/Loss To Date (e) ( 553 542) I I4J 008 Cum ula,1ive Data Current Balance 112 804 Page 3. nUV"~vD n~LDn~U~~ MURAL TELEPHONE ~OO9- -- ~ - ~USDA-RUS BORROWER DESIGNATION FINANCIAL AND STATISTICAL REPORT 100515FOR TELECOMMUNICA TrONS BORROWERS PERIOD ENDING 1212001INSTRUCTlONs"see RUS Bulletin 1744- Part H. Current Depreciation Rates ' " Are corporations depreciation rates approved by the regulatory authority with jurisdiction over the provision oftelcphone servloes? (Check. one)I!J YES Equipment Category Depreciation Rate1. land and support assets - Molor Vehicles 33.33 %2. land and support assets - Aircraft 00%3. land and support assets - Special purpose vehicles 00%4. Land and support assets - Garage and other work equipment 14.30 %5. Land and support assets - Buildings 90%6. Land and support assets - Furniture and Office equipment 12.50 %7. Land and support assets - General purpose computers 20.00 %8, Central Office Switching - Oig"al 63%9. Central Office Switching - Analog & Electro-mechanical 00%10. Central Office Switching ~ Operator Systems 00%11. Central Office Tmnsmission - Radio SystemlJ 00%12. Central Office Transmission - Circuit equipment L') ---(/ OO~13. Information originationlterminafion - Station apparatus '0.00%14, Information origination/termination - Customer premises wiring 00%15. Information origination/termination - Large private branch exchanges 00%16. Information origination/termination - Public telephone terminal equipment 00%17. Information origination/termination - Olher terminal equipment 00%. Cable and wire facilities - Poles 00%. 19. Cable and wire facilities - Aerial cable - Meta! 00%0. Cable and wire facilities - Aerial cable - Fiber 00%. 21. Cable and wire facilities - Underground cable - Metal 00%22. Cable and wire facilities - Underground cable - Fiber 00%23. Cable and wire facilities - Buried cable - Metal 25%24. Cable and wire facilities - Buried cable. Fiber 50%25. Cable and wire facilities - Conduit systems 50%26. Cable and wire facilities - Other 00% RUS Form 479 Page 4. , nunru..J .L c.,uDr fiUl'f'c IflJUIU... U8DA..RU8 Borrower DesignationFINANCIAL AND ST A TIS TICAL REPORT RURAL TELEPHONE COMPANY (IDO515)FOR TELECOMMUNICATIONS BORROWERS Period Ending 12/2001 Notes to the Financial and Statistical Report Part H Depreciation rates reported on Part H are averaged based on approved rates in individual states. The followinginformation provides details concerning averaged depreciation rates reported. Ln 5 Buildings - Idaho Buildings ~ Nevada Avg. 2. 12% 260;063% ------ L.. \J ~'1..- Ln 23 Buried cable ~ Idaho 6. Buried cable - Nevada Avg. 5.25% Ln 8 CaE - Idaho CaE - Nevada Avg. ~f'JSM't5CS (6 t--J -I D A-;-1 IV (b., tift (J S. 2~ v I. &:;) Ln 24 Buried fiber - Idaho Buried fiber ~ Nevada Avg. Ln 25 Conduit - Idaho Conduit - Nevada 40/0Avg. 5. '----/ S Form 479 Page 4. 1l10 nDn E-ftS ... Rural Telephone Company Service Rates RURAL TELEPHONE COMPANY is a quality telecommunications services provider who provides basic enhanced services at reasonable rates within its service territory. Basic services are offered at the following rates for Atlanta, Three Creek, and Shoup: Residential & Business RatesLocal ~esidence $21.Local Business $40. Fed. Subscriber Line (FCC Access, 1 line) $ 6. Fed. Subscriber Line (FCC Access,Multi Line) $ 9. Idaho Universal Service Fund (IUSF residence) $ . Idaho Universal Service Fund (IUSF business) $ . State of Idaho Assistance Program $ . The ~bove charges will have federal and local taxes added on. Touch Tone service is provided as a part of local service. Toll Blocking is available at no charge for low income customers who qualify. Emergency 911 Services - Exchanges with charges in Idaho are: 653,868 864 and 796 There is a $1.00 per line charge. Low income individuals eligible for Lifeline and Link-Up telephone assistance programs may be eligible for discounts from these basic local service charges through state specified telephone assistance pJans. EJease contact your localHea1h and Welfare office. Basic services are offered to all consumers in the Rural Telephone Company service territories at the rates , terms , and conditions specified in the Company s tariffs and/or price lists. If you have any questions regarding the Company s services, please call us at 888-366-7821 , or visit our business office at 704 W. Madison Ave. Glenns Ferry, 10 83623 for further information regarding services. Rural Telephone Company Service Rates RURAL TELEPHONE COMPANY is a quality telecommunications services provider who provides basic enhanced services at reasonable rates within its service territory. Basic services are offered at the following rates for Tipanuk, Prairie, and Boise Riverarea: Residential & Business RatesLocal Residence $24. 1 Local Business $42. Fed. Subscriber Line (FCC Access 1 line) $ 6.Fed. Subscriber Line (FCC Access Multi Line) $ 9.Idaho Universal Service Fund Surcharge(IUSF)$ . Idaho Universal Service Fund Surcharge(IUSF) $ . State of Idaho Assistance Program $ . The above charges will have federal and local taxes added on. Touch Tone service is provided as a part of local service. Toll Blocking is available at no charge for low income customers who qualify. Emergency 911 Services Exchanges with charges in Idaho are: 653 868 864 and 796 There is a $1.00 per line charge. Low income individuals eligible for Lifeline and Link-Up telephone assistance programs may be eligible for discounts from these basic local service charges through state specified telephone assistance ~ans. ~ease contaet your 10cal-F4eath and vVelfare office Basic services are offered to all consumers in the Rural Telephone Company service territories at the rates , terms , and conditions specified in the Company s tariffs and/or price lists. If you have any questions regarding the Company s services , please call us at 888-366~7821 , or visit our business office at 704 W. Madison Ave.Glenns Ferry, 10 83623 for further information regarding services. rJ Rural Telephone Company Service Rates RURAL TELEPHONE COMPANY is a quality telecommunications services provider who provides basic enhanced services at reasonable rates within its service territory. Basic services are offered at the follow'ing rates: Residential & Business RatesLocal Residence $16.Local Business $16. Fed. Subscriber Line (FCC Access, 1 line) $ 6. Fed. Subscriber Line (FCC Access Multi Line) $ 9. Directory Assistance per call $ . The above charges will have federal and local taxes added on. Customers of Washoe County will be required to pay a county tax which is equal to 20/0 of the monthly local service. Touch Tone service is provided as a part of local service. Toll Blocking is available at no charge for low income customers who qualify. Emergency 911 Services Exchanges with charges in Nevada are: 969 and 970 There is a $ .20 charge per line. Low income individuals eligible for Lifeline and Link-Up telephone assistance programs may be eligible for discounts from these basic local service charges through state specified telephone assistance plans. Please contact your local Heath and Welfare office. Basic services are offered to all consumers in the Rural Telephone Company service territories at the rates , terms , and conditions specified in the Company s tariffs and/or price lists. If you have any questions regarding the Company s services, please call us at 888-366-7821 , or visit our business office at 704 W. Madison Ave. Glenns Ferry, 10 83623 for further information regarding services. lfJ PEND OREILLE TELEPHONE COMPANY is a quality telecommunications services provider who provides basic and enhanced services at reasonable rates within its service territory. Basic services are offered at the following rates: Monthl Service Char eSingle Party Residence Service $13.Single Party Business Service $26. Federal Subscriber Line Charge/Residence/Business $ 6. Federal Subscriber Line Charge/Multi Line $ 9. Directory Assistance/per call-interexchange carrier filed rates. Touch Tone Service is provided as a part of local service. Toll Blocking is available at no charge for low income customers that qualify. Emergency 911 Services- The State/County mandated surcharges for exchanges: 442 445, and 446 - $0.50 see your telephone bill. Toll Restriction Services- Currently there is no charge from Pend Creille Telephone Company for toll blocking service to low-income customers participating in the Lifeline program. Please contact you local Health & Welfareoffice. Access to long distance carriers- There is na charge from Pend Oreille Telephone Company for the ability to place and receive calls through long distance carriers that offer service through our network. However, the call may involve a charge from the long distance carrier depending on the type of call. Access to directory assistance- There is no charge from Pend Oreille Telephone Company for the ability to call Directory Assistance. The amount charged depends on the area called and the rates of the company whose operator provided the information. Access to operator services- There is na charge from Pend Creille Telephone Company for the ability to call the operator. However, the call may involve a charge depending on the service requested and the rates of the company whose operator handled the call. These services are available to all consumers of Pend Creille Telephone Company. The casts associated with each are reflected each month on the regular telephone bill along with charges for services provided by Pend Oreille Telephone Company. The services listed above are the basic services offered by our company. Other services are available by contacting Pend Oreille Telephone Company's business office at 1-888-636-2840. --rtt0 ~ 704 W. MADISON GLENNS FERRY, IDAHO 83623 !l E PH 0 NE e 0 M PAN Y (208) 366-2614. FAX (208) 366-2615 LOBBYING CERTIFICATION Certification for Contracts~ Grants~ Loans~ and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or win be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan , or cooperative agreement, the undersigned shall complete and submit Standard Fonn-LLL , " Disclosure Fonn to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the a\vard documents for an subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reHance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352 , title 3 1 S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10 000 and not more than $100 000 for each such failure. Rural Telephone Company, Inc. Organization Name James R. Martell. President Name of Authorized Official Signature Date March 1 , 2004 LOBYCERTDOC (Computer generated Conn, Version 2, 12/96) 704 W. MADISON GLENNS FERRY, IDAHO 83623 E P H 0 NE e 0 M PAN Y (208) 366-2614 . FAX (208) 366-2615 LOBBYING CERTIFICATION Certification for Contracts't Grants't Loans't and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan , or cooperative agreement, the undersigned shall complete and submit Standard Fonn-LLL , " Disclosure Fonn to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for al1 subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 3 1 S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10 000 and not more than $100 000 for each such failure. Rural Telephone Company, Inc. Organization Name James R. Martell. President Name of Authorized Official Signature Date March 1 , 2004 LOBYCERTDOC (Computer generated fonn, Version 2, 12/96) TA6 USDA United States Department of Agriculture Rural Development ' . " Rural Business-Cooperative Service. Rural Housing Service. Rural Utilities Service Washington, DC 20250 N 0 V 1 9 1998 SUBJECT:Debarment Certifications TO:All Electric and Telecommunications Borrowers All DL T Loan and/or Grant Recipients FROM:WALL Y BEYER Administrator Rural Utilities Service On June 26, 1995, changes to the Governmentwide Debarment and Suspension regulations were published in the Federal Register. These changes modified the Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Primary Covered Transactions which must be submitted as part of the application materials for the Rural Utilities Service s (RUS) Electric Loan Program, Telecommunications Loan Progmm, and Distance Learning and Telemedicine Loan and Grant Program. The revised certification is found in Appendix A to 7 CFR part 3017, the Department of Agriculture s debarment and suspension regulation. The changes to the regulations also modified the Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Lower Tier Covered Transactions which recipients ofRUS loan and grant funds are required to include in all lower tier covered transactions and solicitations. The revised lower tier certification is found in Appendix B to 7 CFR part 3017. For the convenience of all RUS program participants, we are enclosing copies of the two debarment certifications discussed above. If you have any further questions regarding these certifications, please contact your General Field Representative or RUS Area Director. ### Enclosures Rural Dowlopment Is an Equal Opportunity lender Complaints of discrimination should be sent to: Secretary of Agriculture, Washington, DC 20250 CERTIFICATION REGARDING DEBARMENT SUSPENSION, AND OTHER RESPONSffiILITY MATTERS - PRIMARY COVERED TRANSACTIONS INSTRUCTIO S FOR CERTIFICATION 1. By signing and submitting this proposal, the prospective primary participant is providing the certification set out below. 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective participant shall submit an explanation. of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agencys determination whether to enter into this transaction. However, failure of the prospective primary participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary participant knowingly rendered an erroneous certification,. ill addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 4. The prospective primary participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 5. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded used in this clause, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations. 6. The prospective primary participant agrees by submitting this proposal that should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction With a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 7. The prospective prjmary particiP.3,nt further agrees by submitting ~his proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion- Lower Tier Covered Transaction," provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 8. A participant m a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4 debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the, method and frequency by which it detennines the eligibility of its principals. Each participant may, but is not required to, check the List of Parties.Excluded from Federal Procurement and Nonprocurement Programs. Debarment Certification (Version 1, 6/98)Page I of 2 9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in Order to render in good faith the certification required by this clause- The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 49 CPR pan 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. CERTIFICATION (1) The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency; (b) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of ftaud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any ofthe offenses enumerated in paragraph (l)(b) of this certification; and (d) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. (2) Where the prospective primary participant is unable to certify to any Of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Rural Telephone Company Organization Name G Loan PRlAward or Project Name James R. Martell, President Name and Title Signature April 30, 2003 Date ::~ Debarment Certification (yersion 1 , 6/98)Page 2 of 2 USDA United States Department of Agriculture Rural Development Rural Business-Cooperative Service - Rural Housing Service - Rural Utilities SelViee Washington, DC 20250 N 0 V 1 9 1998 SUBJECT:Debarment Certifications TO:All Electric and Telecommunications Borrowers All DL T Loan and/or Grant Recipients FROM:WALL Y BEYER Administrator Rural Utilities Service On June 26, 1995, changes to the Governmentwide Debarment and Suspension regulations were published in the Federal Register. These changes modified the Certification Regarding Debarment, Suspension, and Other Responsibility Matters - Primary Covered Transactions which must be submitted as part of the application materials for the Rural Utilities Service s (RUS) Electric Loan Program, Telecommunications Loan Program, and Distance Learning and Telemedicine Loan and Grant Program. The revised certification is found in Appendix A to 7 CFR part 3017, the Department of Agriculture s debannent and suspension regulation. The changes to the regulations also modified the Certification Regarding Debarment, Suspension and Other Responsibility Matters - Lower Tier Covered Transactions which recipients ofRUS loan and grant funds are required to include in all lower tier covered transactions and solicitations. The revised lower tier certification is found in Appendix B to 7 CPR part 3017. For the convenience of all RUS program participants, we are enclosing copies of the two debarment certifications discussed above. If you have any further questions regarding these certifications, please contact your General Field Representative or RUS Area Director. ### Enclosures Rural Development Ia an Equal Opportunity Lender Complaints of discrimination should be sent to: Secretary of Agriculture, Washington, DC 20250 , ~ CERTIFICATION REGARDING DEBARMENT SUSPENSION, AND OTHER RESPONSffiILITY MATTERS - PRIMARY COVERED TRANSACTIONS INSTRUCTIONS FOR CERTIFICATION 1. By signing and submitting this proposal, the prospective primary participant is providing the certification set out below. 2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective participant shall submit an explanation. of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agencys determination whether to enter into this transaction. However, failure ofthe prospective primary participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction. 3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary participant knowingly rendered an erroneous certification,. ill addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 4. The prospective primary participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary participant learns thatits certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 5. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded used in this clause, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations. 6. The prospective primary participant agrees by submitting this proposal that should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction With a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 7. The prospective prjrnary participant further agrees by submitting ~his proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion- Lower Tier Covered Transaction," provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 8. A participant m a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4 debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the, method and frequency by which it detennines the eligibility of its principals. Each participant may, but is not required to, check the List of Parties.Excluded from Federal Procurement and Nonprocurement Programs. Debarment Certification (yersion 1 , 6/98)Page I of 2 9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in Order to render in good faith the certification required by this clause- The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordmary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 49 CPR pan 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. CERTIFICATION (1) The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any Federal department or agency; (b) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (1)(b) of thiscertification; and (d) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. (2) Where the prospective primary participant is unable to certify to any Of the statements in this certificatio~ such prospective participant shall attach an explanation to this proposal. Rural Telephone Company Organization Name G Loan PR/Award or Project Name James R. Martell, President Name and Title Signature April 30, 2003 Date ~:~ Debarment Certification 01ersion 1 6/98)Page 2 of 2 --rFJ & Response to RUS letter from Kim Jacobs Page 2, #1) Page 2, #5) Page 2, #8) Page 2, #9) Form 479 for years 2001 & 2002 attached. Form 479 for year 2000 is not available. Attached are audited financial statements for year 2000. Depreciation percentage schedule attached. None. Detail of specific accounts available upon request. Accumulated Depreciation schedule for 12/31/02 attached. Rural Telephone Company - Depreciation Schedule - 02/18/04 Account Name Buildings - Idaho Buildings - Nevada Furniture & Office Equipment Other Work Equipment Other Communications Equipment General Purpose Computers Vehicles Digital Switching Equipment - Idaho Digital Switching Equipment - Nevada Central Office Transmission Equipment - Central Office Transmission Equipment - NV SonneUDWDM Equipment Buried Cable - Idaho Buried Cable - Nevada Buried Cable, Fiber, Idaho Buried Cable - Fiber Optic - Nevada Aerial Fiber Conduit, Idaho Conduit, Nevada Leasehold Improvements - Idaho Account Number 2110. 2110. 2110. 2110. 2110. 2110. 2110. 2210. 2210. 2230. 2230. 2232. 2410. 2410. 2410. 2410. 2410. 2410. 2410. 2680. Depreciation Percentage 00% 80% 12.50% 14.30% 20.00% 20.00% 33.33% 12.00% 26% 10.00% 26% 10.00% 50% 00% 00% 00% 00% 00% 00% 00% l1r5 ~ RURAL TELEPHONE COMPANY CURRENT LEASES - 1998 LEAS OR SITEIDESCRIPTION EXPIRE/RENEW AMOUNT Rancho Haven Red Rock COO 2017 240/yr James Marten Office/Shop 2017 USPS Boise River 2017 25/yr USFS Trinity RPTR 2018 251yr BIko County Jarbidge COO 202212042 6fXJ /yr Greene Tree Atlanta COO 2021 6501yr USPS James Cret1: RPfR 2018 2S/yr Brackett Three Creek COO 199912019 5OO1yr BLM Signal Butte 1994 46Iyr BLM Tuscarora COO 1994 SO/yr USPS Shoup COO 2010 O/yr Davison Prairie COO 202112041 lOO/yr Fish Springs Flanigan Hut 202512055 300/yr BLM Murphy Hot Springs 1999 $6615 yrs.13 Jyr 'V~1Lt- \ Ct()i", ~1'i Zroo 1\ . ~lQ :; (:61 1\,'1/(' 2 oc. L.-~ i. . '\& \ 2003 II. C)~ \ ~~TL I\,i& .s'J-(~k. ...\tow& -+l.(.. orel'cJ""'5 \eA~ W~\d'\ Ri(. ft'r" ~JA"-t(,,t.fa:.c p\'"~1~, ~N... o.\'\"oll"h. ale.. 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DP R L S 1 CP R M A S T E R 12 / 3 1 / 2 0 0 3 PA G E EX C S TA X DE S C R I P T I O N CA T G PU T SO U R C E MA T E R I A L TO T A L IN D E X G/ L # H N G T C N T Y D S T ID E N T # BA Y SH E L F PA I R S SV C (W / D ) SA L V A G E AM O U N T UN I T MA N U F A C T U R E R 00 0 0 0 8 2 1 1 0 . 21 3 6 6 I E 0 2 RO L L - UP S H O P D O O R 00 0 3/ 8 9 So l d , 1 0 1 8 9 0 00 0 00 0 0 0 9 2 1 1 0 . 21 3 6 6 I E 0 2 3D ' X 80 ' F R A M E O F F I C E B U I L D 00 0 3/ 9 0 PR U E T So 1 d 1 0 8 9 8 3 9 . 00 0 00 1 1 3 1 2 1 1 0 . 21 3 6 6 I E 0 2 AI R P L A N E H A N G E R 10 . 00 0 1 1 / 9 2 19 0 1 3 1. 0 0 20 0 0 0 . 23 0 8 9 . 23 0 8 9 . 00 1 1 3 2 2 1 1 0 . 21 3 6 6 I E 0 2 SH O P A D D I T I O N 10 . 00 0 1 1 / 9 2 19 1 0 2 So l d , 1 0 1 8 1 6 . 00 1 2 7 3 2 1 1 0 . 21 3 6 6 I E 0 2 40 x 8 0 x 1 2 M e t a l Sh o p B u n d i n g 10 . 00 0 5/ 9 4 , 19 3 0 2 So 1 d , 1 0 6 5 5 9 2 . 00 1 2 8 5 2 1 1 0 . 21 3 6 6 I E 0 2 14 ' x 7 0 ' B o n n e v i l l e m o t e l 00 0 5/ 9 4 GJ 1 5 So l d , 1 0 1 3 3 5 7 . 00 1 3 2 3 2 1 1 0 . 21 3 6 6 I E 0 2 Ge n e r a t o r 10 . 00 0 8/ 9 4 CK 5 9 7 6 1. 0 0 13 2 0 . 13 2 0 . 13 2 0 . E7 7 0 2 3 7 4 8 2 00 1 4 1 5 2 1 1 0 . 21 3 6 6 I E 0 2 Ro o f , s h o p d o o r s r e m o d e l 10 . 00 0 1 0 / 9 4 C K 6 1 6 5 So l d , 1 0 4 5 4 4 . 00 1 6 8 6 2 1 1 0 . 21 3 6 6 I E 0 2 Ma i n O f f i c e , M a t e r i a l U s a g e 00 0 1 2 / 9 7 19 7 0 2 So l d , 1 ~ 4 7 1 5 3 . 00 1 6 8 7 2 1 1 0 . 21 3 6 6 I E 0 2 Ma i n O f f i c e , L a b o r D i s t r 00 0 1 2 / 9 7 19 7 0 2 So l d , 1 0 1 5 4 2 8 . 00 1 6 8 8 2 1 1 0 . 21 3 6 6 I E 0 2 Ma i n O f f i c e , Ov e r h e a d D i st r 00 0 1 2 / 9 7 19 7 0 2 So l d , 1 0 1 4 7 0 2 . 00 1 7 0 9 2 1 1 0 . 21 3 6 6 I E Ad d i t i o n to O f f i c e 00 0 1 2 / 9 7 se e c p r 1 7 2 1 00 1 7 2 1 2 1 1 0 . 21 3 6 6 I E 0 2 Ma i n O f f i c e A d d i t i o n , M a t e r i a l 00 0 1 2 / 9 7 19 8 0 1 So l d , 1 ~ 1 4 5 7 9 . 00 2 2 1 7 2 1 1 0 . 21 3 6 6 I E 0 2 Le a s e h o 1 d Im p r o v e m e n t s G F - Sh o p 00 0 1 2 / 0 1 10 1 0 1 1. 0 0 26 3 5 6 . 26 3 5 6 . 26 3 5 6 . 00 2 2 1 9 2 1 1 0 . 21 3 6 6 I E 0 2 Ad d i t i o n a l O f f i c e S p a c e 00 0 1 2 / 0 1 10 1 1 2 1. 0 0 43 2 7 2 . 43 2 7 2 . 43 2 7 2 . 00 2 3 9 5 2 1 1 0 . 21 3 6 6 I E 0 2 A/ C U n i t , H e a d e n d R o o m , G . 00 0 8/ 0 2 2 1 1 0 . 1. 0 0 28 9 5 . 28 9 5 . 28 9 5 . LI E B E R T ET 0 3 6 S R D O O T 9 3 1 8 21 1 0 . 36 6 93 8 4 4 . 96 9 3 4 . 00 0 0 1 0 2 1 1 0 . 21 3 9 4 I L 0 1 CE N T R A L O F F I C E B U I L D I N G 00 0 7/ 9 0 18 9 1 9 1. 0 0 39 8 7 . 14 2 9 3 . 14 2 9 3 . 00 0 00 1 2 8 7 2 1 1 0 . 21 3 9 4 I L 0 1 Am a n a a i r c o n d i t i o n e r 10 . 00 0 7/ 9 4 C K 5 7 4 9 1. 0 0 76 7 . 76 7 . 76 7 . 00 0 B T U 21 1 0 . 39 4 47 5 4 . 15 0 6 1 . 3 3 00 1 7 8 8 2 1 1 0 . 21 6 5 3 I E 1 4 CO F e n c e , P i n e 00 0 19 8 1 7 1. 0 0 42 7 9 . 42 7 9 . 00 0 0 1 2 2 1 1 0 . 21 6 5 3 I E 1 4 MI C R O W A V E T O W E R - P I N E C . 00 0 1 2 / 8 4 82 - 1.0 0 92 6 8 . 92 6 8 . 92 6 8 . 00 0 00 0 0 1 1 2 1 1 0 . 21 6 5 3 I E 1 4 CE N T R A L O F F I C E B U I L D I N G P I N E 00 0 7/ 8 7 87 - 1. 0 0 19 4 0 0 . 23 6 8 1 . 3 8 23 6 8 1 . 3 8 00 0 00 1 2 7 9 2 1 1 0 . 21 6 5 3 I E 1 4 Ca b i n r e p a i r s 00 0 5/ 9 4 19 3 - 1. 0 0 14 8 4 1 . 3 3 14 8 4 1 . 3 3 14 8 4 1 . 00 1 6 8 3 2 1 1 0 . 21 6 5 3 I E 0 1 Pi n e , M a t e r i a l Us a g e , B u i l d 00 0 1 2 / 9 7 19 7 0 1 1. 0 0 32 2 3 . 32 2 3 . 32 2 3 . 00 1 6 8 4 2 1 1 0 . 21 6 5 3 I E 0 1 Pi n e , l a b o r D i s t r , B u i l d 00 0 1 2 / 9 7 19 7 0 1 1. 0 0 13 0 8 . 13 0 8 . 13 0 8 . 00 1 6 8 5 2 1 1 0 . 21 6 5 3 I E 0 1 Pi n e , O v e r h e a d D i st r , B u i 1 d 00 0 1 2 / 9 7 19 7 0 1 1. 0 0 40 5 . 40 5 . 40 5 . Ru r a l T e l e p h o n e C o . DP R L S 1 CP R M A S T E R 12 / 3 1 / 2 0 0 3 PA G E EX C S TA X DE S C R I P H O N CA T G PU T SO U R C E MA T E R I A L TO T A L IN D E X G/ L # HN G T C N T Y D S T ID E N T # BA Y SH E L F PA I R S SV C (W / O ) SA L V A G E AM O U N T UN I T MA N U F A C T U R E R 00 2 3 1 6 2 1 1 0 . 21 6 5 3 I E 0 1 Th e r m o B o n d 1 2 x 2 4 x 9 b u i 1 d i n g 00 0 6/ 0 2 10 2 3 5 1. 0 0 76 6 2 6 . 80 7 7 0 . 80 7 7 0 . 00 2 3 5 1 2 1 1 0 . 21 6 5 3 I C 0 1 Ch a n g e O r d e r - Fa i r f i e l d R e g e n S 23 0 6/ 0 2 10 2 3 4 1. 0 0 93 2 8 . 93 2 8 . MA R T E L L C a N S T . 21 1 0 . 65 3 12 5 0 7 3 . 14 7 1 0 7 . 00 2 3 2 1 2 1 1 0 . 21 7 6 4 I C 1 Fa i r f i e l d R e g e n - Bu i l d i n g 00 0 1 2 / 0 2 10 2 3 4 1. 0 0 14 7 9 4 . 16 6 7 4 . 16 6 7 4 . 21 1 0 . 76 4 14 7 9 4 . 16 6 7 4 . 00 0 0 1 3 2 1 1 0 . 21 7 9 6 I E 0 4 CE N T R A L O F F . BU I L D I N G - T I PA N U K 00 0 9/ 8 7 87 - 1. 0 0 15 0 0 0 . 19 3 3 8 . 19 3 3 8 . 00 0 21 1 0 . 79 6 15 0 0 0 . 19 3 3 8 . 00 0 0 1 4 2 1 1 0 . 21 8 5 7 I T 2 0 MI C R O W A V E B U I L D I N G - S I G N A L B U 00 0 1/ 8 2 86 - 1. 0 0 50 3 7 . 50 3 7 . 50 3 7 . 00 0 00 0 0 1 5 2 1 1 0 . 21 8 5 7 I a 3 7 CE N T R A L O F F I C E B U I L D I N G 3 - CR K 00 0 6/ 8 5 83 - 1. 0 0 32 1 5 3 . 32 1 5 3 . 32 1 5 3 . 00 0 00 0 0 1 6 2 1 1 0 . 21 8 5 7 I 0 3 7 FE N C E A R O U N D 3 - CR K C E N T R A L O F F 00 0 3/ 8 7 85 - 1. 0 0 18 6 . 18 6 . 18 6 . 00 0 00 1 1 5 8 2 1 1 0 . 21 8 5 7 I 0 3 7 AI R C O N D I T I O N E R W / 3 Y R W A R R A N T 1 0 . 00 0 8/ 9 3 CK 4 1 O 5 1. 0 0 64 6 . 64 6 . 64 6 . MO D E L 1 0 6 . 87 9 1 0 9 1 00 1 6 8 0 2 1 1 0 . 21 8 5 7 I 0 3 7 Th r e e C r e e k . M a t r i a l U s a g e . BU I 00 0 1 2 / 9 7 19 6 1 1 1. 0 0 28 6 5 . 28 6 5 . 28 6 5 . 00 1 6 8 1 2 1 1 0 . 21 8 5 7 I 0 3 7 Th r e e C r e e k . L a b o r D i st r . B u i 00 0 1 2 / 9 7 19 6 1 1 1. 0 0 10 6 7 . 10 6 7 . 10 6 7 . 00 1 6 8 2 2 1 1 0 . 21 8 5 7 I 0 3 7 Th r e e C r e e k . O v e r h e d D i st r . B u i 00 0 1 2 / 9 7 19 6 1 1 1. 0 0 10 2 6 . 10 2 6 . 10 2 6 . 21 1 0 . 85 7 42 9 8 3 . 42 9 8 3 . 00 0 0 1 7 2 1 1 0 . 21 8 6 4 I E 2 8 CE N T R A L O F F I C E B U I L D I N G - A T L 00 0 1 2 / 8 8 86 - 1. 0 0 21 0 7 6 . 30 8 9 0 . 4 4 30 8 9 0 . 4 4 00 0 00 0 0 1 8 2 1 1 0 . 21 8 6 4 I E 0 4 Mi c r o w a v e T o w e r - T r i n i t y 00 0 1 2 / 8 8 88 - 1.0 0 18 7 8 . 11 5 3 2 . 11 5 3 2 . 00 0 00 1 4 8 6 2 1 1 0 . 21 8 6 4 I E 2 4 Ai r C o n d i t i o n e r 10 . 00 0 4/ 9 6 C K 9 0 8 0 1. 0 0 34 5 . 34 5 . 34 5 . 7P 2 M Y 21 1 0 . 86 4 23 3 0 0 . 42 7 6 8 . 00 0 0 1 9 2 1 1 0 . 21 8 6 8 I E 1 6 CE N T R A L O F F I C E B U I L D I N G - P R A I 00 0 5/ 8 7 85 - 1.0 0 39 8 0 0 . 48 5 0 5 . 48 5 0 5 . 00 0 00 0 0 2 0 2 1 1 0 . 21 8 6 8 I E 1 6 MI C R O W A V E T O W E R - P R A I R I E C . 00 0 1 2 / 8 7 87 - 1. 0 0 19 1 0 8 . 19 1 0 8 . 19 1 0 8 . 00 0 21 1 0 . 86 8 58 9 0 B . 67 6 1 4 . 21 1 0 . 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CP R M A S T E R IN D E X EX C S TA X G/ L # H N G T C N T Y D S T ID E N T # SH E L F 00 0 0 2 3 2 1 1 0 . 22 7 5 6 N 21 1 0 . 00 0 0 2 4 2 1 1 0 . 22 7 5 8 N 00 0 0 2 5 2 1 1 0 . 22 7 5 8 N 00 0 0 2 6 2 1 1 0 . 22 7 5 8 N 00 0 0 2 7 2 1 1 0 . 22 7 5 8 N 00 1 5 9 9 2 1 1 0 . 22 7 5 8 N 00 1 6 8 9 2 1 1 0 . 22 7 5 8 N 00 1 6 9 0 2 1 1 0 . 22 7 5 8 N 00 1 6 9 1 2 1 1 0 . 22 7 5 8 N 00 1 6 9 2 2 1 1 0 . 22 7 5 8 N 21 1 0 . 00 1 7 5 1 2 1 1 0 . 22 9 6 9 N 00 1 7 5 2 2 1 1 0 . 22 9 6 9 N 00 1 7 5 3 2 1 1 0 . 22 9 6 9 N 00 0 0 2 8 2 1 1 0 . 22 9 6 9 N 00 1 1 0 7 2 1 1 0 . 22 9 6 9 N 00 1 1 0 8 2 1 1 0 . 22 9 6 9 N 00 1 1 0 9 2 1 1 0 . 22 9 6 9 N 00 1 1 7 9 2 1 1 0 . 22 9 6 9 N 21 1 0 . 21 1 0 . DE S C R I P T I O N BA Y CA T G P U T PA I R S S V C SO U R C E (W / O ) 87 - 87 - 87 - 87 - 87 - 29 5 - 29 4 1 0 29 4 1 0 29 4 1 0 29 4 1 0 29 8 0 1 12 / 3 1 / 2 0 0 3 MA T E R I A L SA L V A G E 1. 0 0 18 6 0 0 . TO T A L AM O U N T PA G E 30 0 0 5 . 30 0 0 5 . 79 3 0 0 0 5 . UN I T MA N U F A C T U R E R 26 9 4 . 27 8 7 1 . 27 8 7 1 . 26 9 4 . 19 1 7 . E 0 2 00 0 1 2 / 8 7 29 8 0 1 18 6 0 0 . 1. 0 0 20 0 0 0 . 19 1 7 . 82 2 4 . 21 5 8 . 78 5 . 44 7 . 14 4 4 . 47 4 6 0 . 19 1 7 . 19 1 7 . 82 2 4 . 21 5 8 . 78 5 . 44 7 . 14 4 4 . 13 9 8 3 2 . 50 1 3 9 8 3 2 . 35 3 2 6 . 29 3 5 3 2 6 . 47 7 3 7 . 58 4 7 7 3 7 . 95 5 8 . 34 0 2 6 . 52 3 4 0 2 6 . 95 5 8 . 4 7 10 8 6 . 90 7 3 . 35 0 0 . 28 0 1 4 0 . 36 7 1 0 1 . 3 0 10 8 6 . 90 7 3 . 35 0 0 . GR A N D T O T A L - - - - - - - - - - - - - - - - - - - -- - - - - -- - - - - - - -- - - - - -- - - - - - - -- - - - - - - - - - - -- - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - -- - - - - - - - - - - -- - - - - - -- - - - - - - - - - - - 00 0 2 / 8 4 8 2 - 00 0 10 . 00 0 6/ 9 2 29 1 - 10 . 00 0 6/ 9 2 29 1 1 9 23 2 6/ 9 2 29 1 1 9 10 . 00 0 12 / 9 3 GJ 3 6 CE N T R A L O F F I C E A T T U S C A R O R A 00 0 75 6 00 0 1 2 / 8 7 E 0 1 CO B u i 1 d i n g at N o r t h F o r k HI g h w a y 2 2 5 00 0 E 0 2 T - CA R R I E R H U T A T D I N N E R S T A . 00 0 CA R R I E R H U T A T F R E E P O R T ( J . C) . 00 0 1 2 / 8 7 00 0 T - CA R R I E R H U T A T B I G S P R I N G S 00 0 Ca r r i e r H u t a t D i n n e r S t a t i o n 1 0 . 00 0 1 0 / 9 6 00 0 1 2 / 9 7 00 0 1 2 / 8 7 E 0 2 E 0 1 00 0 1 2 / 8 7 E 0 2 E 0 1 No r t h F o r k , M a t e r i a l U s a g e , E 0 1 00 0 1 2 / 9 7 No r t h F o r k , L a b o r D i st r , C O E 0 1 00 0 1 2 / 9 7 00 0 12 / 9 7 No r t h F o r k , V e h i c l e D i s t r , C O E 0 1 No r t h F o r k , O v e r h e a d D i st r , C O 75 8 W 4 0 4 0 An t e l o p e V a l l e y C O B u i l d i n g Ma t e r i a 1 W 4 0 4 0 An t e l o p e V a l l e y C O B u i 1 d i n g La b o r W 4 0 4 0 Ov e r h e a d W 0 1 CO B u i 1 d i n g at R e d R o c k 15 1 S h e t l a n d C i r c l e W 0 1 T - CA R R I E R H U T 00 0 00 0 An t e l o p e V a l l e y C O B u i l d i n g 00 0 W 0 1 GI B S O N A I R C O N D I T I O N E R JK 9 5 0 2 2 5 4 1 W 0 1 20 I S T E E L TO W E R W 0 1 20 I T O W E R BL A C K F O O T 96 9 Bu i 1 d i n g s - N e v a d a 29 8 0 1 1. 0 0 1. 0 0 1. 0 0 19 1 7 . 1.0 0 46 4 6 . 1. 0 0 21 5 8 . 1. 0 0 78 5 . 1. 0 0 44 7 . 1. 0 0 14 4 4 . 31 3 9 9 . 00 1 3 9 8 3 2 . 1.0 0 35 3 2 6 . 1. 0 0 47 7 3 7 . 1. 0 0 1. 0 0 36 8 7 . 1. 0 0 41 8 . 1. 0 0 35 0 0 . 0 0 1. 0 0 35 0 0 . 23 4 0 0 2 . 29 0 6 1 3 . 82 5 4 9 4 . 98 7 5 8 7 . Subject: Rural Telephone Company \if c)(D April 8, 2004 Administrator Rural Utilities Service United States Department of Agriculture Stop 1500 Washington, D.C. 20250-1500 To Whom It May Concern: We are counsel to Rural Telephone Company (the "Company ) in connection with the Company s application (Application) for a loan or loan guarantee from the Rural Utilities Service (RUS) to provide telephone service. We have examined, or caused to be examined, by competent and trustworthy persons such corporate records and files and such other records indexes, and files as we have deemed necessary to permit us to render the opinions expressed herein. Weare of the opinion that: The Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Idaho. The Company operates in the State(s) of Idaho and Nevada and is duly licensed and qualified and in good standing as a foreign corporation, authorized to do business and own property in such State(s). The Company has full legal right, power and authority to own its property and carry on its business as now conducted. The execution, delivery and performance by the Colnpany of the Application and the consummation of the transactions contemplated thereby are within the powers of the Company. The Application has been duly executed by the Company. The Company owns the real property described on Schedule A attached hereto and such property is in the counties of in the State( s The Company has the power to grant a security interest in the property described in paragraph 6 to the RUS as collateral for the loan described in the Application. Schedule A contains complete and accurate descriptions of all the real property owned or leased by the Company, excluding easements and rights-of-way, which are sufficient in form and substance, for inclusion in the granting clause of a mortgage creating a lien on such property. The Company owns telecommunications facilities, including central office facilities lines, and other outside plant, in the counties of in the State( s) of 10. For purposes of Article 9 of the Uniform Commercial Code in the State of , the Company is a "transmitting utility" (or is not a "transmitting utility. " 11. The execution, delivery and performance by the Company of the loan documents will not require the consent, permission or authorization of any governmental authority. 11. The execution, delivery and performance by the Company of the loan documents will require the consent, permission or authorization of We have also verified the following information: The Company s organizational number is The exact true and correct legal name of the Company, as stated in its organization documents, is The Company s corporate debt limit is The Company s taxpayer identification number is The pending claims or litigation against the Company are described in the attached Schedule B. There are no pending claims or litigation against the Company. ..,..' Sincerely, The Company has no subsidiaries. The Company s subsidiaries are listed on the attached Schedule C. The titles of the officials of the Company with the proper authority to execute all loan documents on behalf of the Company, and attest to the execution where required, are James R. Martell, President; Carmela M. Martell, Secretary/Treasurer; and Michael J. Martell, Vice President. /"- CONSENT RESOLUTION RURAL TELEPHONE COMPANY The undersigned being the President, Vice-President, and Secretary-Treasurer Rural Telephone Company (R TC) do hereby take the following corporate action in accordance with the general corporation laws of the State of Idaho and the constituent documents of the corporation. BE IT RESOLVED, permission is hereby granted to make application to and upon approval subsequently indebt the corporation for the purpose of obtaining a loan through the Rural Utilities Service (R US) in the amount of US$17 , 4 25 204. BE IT FURTHER RESOLVED, RTC is, in its understanding and to the best of its knowledge, STMP Compliant. BE IT FURTHER RESOLVED, Conley Ward, attorney at law, is appointed as the attorney in fact to oversee all aspects of the RUS loan referred to in this resolution. BE IT FURTHER RESOLVED, RTC selects and appoints Michael 1. Martell and Mark R. Martell jointly to fulfill any and all General Manager duties on behalf ofRTC. The undersigned have executed this Consent Resolution this 7th day of April 2004. James R. Martell, President Michael J. Martell, Vice-President Carmela M. Martell, Secretary-Treasurer /""--- Corporate Seal -m6 rY\ ., ' CONSENT RESOLUTION RURAL TELEPHONE CO11P ANY The undersigned being the President, Vice-President, and Secretary-Treasurer of Rural Telephone Company (RTC) do hereby take the following corporate action in accordance with the general corporation laws of the State of Idaho and the constituent documents of the corporation. BE IT RESOL VED, permission is hereby granted to make application to andupon approval subsequently indebt the corporation for the purpose of obtaining a loan through the Rural Utilities Service (RUS) in the amount ofUS$17,425 204. BE IT FURTHER RESOLVED, R TC is, in its understanding and to the best of its knowledge, STMP Compliant. BE IT FURTHER RESOLVED, Conley Ward, attorney at law, is appointed as the attorney in fact to oversee all aspects of the RUS loan referred to in this resolution. BE IT FURTHER RESOLVED, RTC selects and appoints Michael J. Martell and Mark R. Martell jointly to fulfill any and all General Manager duties on behalf ofRTC. 2004. The undersigned have executed this Consent Resolution this 7th day of April James R. Martell, President Michael J. Martell, Vice-President Carmela M. Martell, Secretary-Treasurer CO1jJorate .I)'ea! !1t6 -, " CONSENT RESOLUTION RURAL 1ELEPHONE COMP ANY The undersigned being the President, Vice-President, and Secretary-Treasurer Rural Telephone Company (RTC) do hereby take the following corporate action in accordance with the general corporation laws of the State of Idaho and the constituent documents of the corporation. BE IT RESOL VED, permission is hereby granted to make application to and upon approval subsequently indebt the corporation for the purpose of obtaining a loan through the Rural Utilities Service (RUS) in an amount less than or equal to seventeen million dollars (US$17 000 00O). BE IT FURTHER RESOLVED, RTC is, in its understanding and to the best of its knowledge, STMP Compliant. BE IT FURTHER RESOLVED, Conley Ward, attorney at law, is appointed as the attorney in fact to oversee all aspects of the RUS loan referred to in this resolution. BE IT FURTHER RESOLVED, R TC selects and appoints Michael J. Martell and Mark R. MartelljointIy to fulfill any and all General Manager duties on behalf ofRTC. 2004. The undersigned have executed this Consent Resolution this 7th day of April James R. Martell, President Michael 1. Martell, Vice-President Carmela M. Martell, Secretary-Treasurer "'. Corporate Seal - " -nt6 ' " ASSURA~CES R~OUIRED BY 49 CFR SECTIO~ 24.4(!l The Rural Telephone Company assures that it will comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (Uniform Act), 42 U.C. 4601-4655, and with implementing Federal regulations in 49 C.R. Part 24 and 7 C.R. Part 21. Specifically, the Rural Teleppone Company assures that: (1)Whenever Federal Financial assistance is used to pay for any part of the cost of a program or project which will result in the displacement of any person; (a)Fair and reasonable relocation payments and assistance will be provided to or for displaced persons in accordance with sections 202, 203, and 204 of the Uniform Act; (b)Relocation assistance programs offering the services described in , section 205 of the Uniform Act shall be provided to displaced persons; and (c)Within a reasonable period of time prior to displacement comparable replacement dwellings will be available to displaced persons in accordance with section 205 (c) (3) of the Uniform Act. (Signature of President or Authorized Official) James R. Martell, Persident March 1, 2004 Date RELOCA TE.DOC (Telephone Version 2, 6/98) s. DepartDlent of Agrleulture Rural Utiijties Service Uniform Relocation Assistance "nd Real Property Acquisition Policies Act ,of 1970 CertifICation The Rural Telephone Company, Inc. (Applicant) assures that it wD1comply with the UDitbrm Relocation Assistimce and Real Property Acquisition Policies Act of 1970, asamended (U nifimB Act), 42 tJ. s. C. 460 1-465 , aod with implemeDting P ederal reguIations.,in 49 CPR.Part 24 and ?CPR. Part 21. Specifically') the Rural Tel~phbne Company, Inc.(Applicant) assures that: Whenever Federal financial assistance is used to pay for any part of the cost of a program or projectwhich will result in the displacement of any person,: (a) Fair and reasonable relocation payments and assistance shall be provided to or for displaced persons in aCcordance with sections 202, 203, and 204 of the Uniform Act; ~(b) :Relocation assistance programs offering the services described in section 205 of the Uniform Act shall be provided to displaced personS; and ( c) Wrthin a reasonable period of time prior to displacement! comparable replacement dwelliJ1gswill be available to dispJaced persons in accordance with section 20S(c) (3) of the Uniform Act. March 1, 2004 Dote ~Authorized Representative 's Signature) James R. Martell, President IDAHO 515 -G BORROWER DESIGNATION CERTIFICATION OF NON$EGREGATED FACILITIES Rural Tel~i?,hone Compa~y, Inc. he "Applicant certifies that it does 'not maiJl!ain or provide fOl" its employees any segregot.ed facilities at any of il.8 estctblishments~ and tl,at it does not permit its employees to perform th~ir service$ at any locatian, ruuL~r its cofllml . ' where segregated facilities are maintained. ,The Applicant certifie$ further that it will, not maintain at provide for its employees any, segregateJ facilities at any o.f its establis/unents, and tlwt it wiU not permit its employees to perform tlJ.e;r services at any location. under its control, where segregated facilities are maintained. .fI,e Applicant agrees that breach of tMs ceFtificatian will constitute a vialatian af the EqlUJl Opparwnity Clause in any loan canl.ract wldch Applicant may enter into. relatin.g to. a loan fram the Rural Electrification Administration to the Applicant. As used in this certification, the ierm Hsegregated facilities" means any waiting rooms. Work area.~, restrooms ~nd washraoms, resta.urants and ather eat~ng ai'eas, timeclocks. lacker raanls aru1 ather storage ar,dressing areas, parking lats, Jrinkin,g fauntains, recreation ar,enterUUnment areas, transportatian, a/l'd 1,(tUsing facilities provided far empl~')'ees ,v/dch are segregated by explicit directive or 'are ;n fart segregated an th~ basis af race, calor, religia~, or national origin, because of habit, local custom. ar otherwise. The Ilpplicafl.t agrees that (except where it has abtained ideniical certifications fram propased con- (ractor... for spedfic time periods) it will obtain identical certificatians from praposed contractars prior to. the award of contracts exceeding $10 000 which are not f?xempt fram the provisions of the Equal Oppartunity Clause, dmJ that it If Jill retain such cerlificatiansin its files. The execution of the foregoillg certification has been duly approved and authorized by the board of direclors of the ApplicaTlI althe meeting of such board of directo.rs held Oll February 24 ~ -2004 . Rural Telephone Company, Tne. APPLICANT /Jute:3/1/2004 PRESIDENT James R. Martell REA FORM 291 8-70 lA-B According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMS control number. The valid OMS control number for this infonnation collection is 0572-0074. The time required to complete this information collection is estimated to average 6 minutes per response, including the time for reviewing insnuctions, searching existing data sources, gatheringand maintaining the data needed, and completing and reviewing the collection of infonnation , -", ~' S. Department of Agriculture Rural Utilities SelVice CERTIFICATE OF AUTHORITY INSTRUCTIONS-Submit one copy to RUS. See 7 CFR 1744 (Telecommunications) and RUS Bulletin 26-1 (Electric) In conformity with the requirements of the Rural Utilities Service (RUS), and in accordance with the resolution of the board of directors of the Rural Telephone Comp BORROWER'S NAME ' 892 W. Madison Avenue Glenna Ferri,ID 83623 BORROWER'S ADDRESS attached hereto, adopted at a meeting of the board, held 20 rn at which a quorum of the board was present, the officers and manager, whose signatures appear below, have been authorized to sign the following RUS forms in connection with requisitioning and accoUnting for Loan Funds: (Check One) I!I RUS Form No.TITLE 481 FINANCIAL REQUIREMENT STATEMENT (Telecommunications) 595 FINANCIAL REQUIREMENT & EXPENDITIJRE STATEMENT (Electric) This certification is to remain in force until rescinded by resolution of the board of directors and notification of such action to RUS President James R. Martell NAME (TYPE OR PRINT)SIGNA TIJRETITLE Secretary /Treasurer TITLE Carmela M. Martell NAME (TYPE OR PRINT)SIGNATURE TITLE NAME (TYPE OR PRINT)SIGNATURE Rural Telephone Company BORROWER'S NAME BIGNATIJRE OF PRESlDENTJames R. Martell SIGNA lURE OF SECRETARY Carmela M. Martell RUS Fonn 675 (Rev. Y7) -nt6 ~ According to the Paperwork Reduction Act of 1995 an agency may not conduct or sponsor, and person is not required to respond to, collection of information unless It displays valid OMB control number. The valid OMB control number for thIs information collection is 0572-0051. The time required to complete this Information collection is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data SOUf09s, gathering and maintaining the data needed and United States Department of Agriculture BORROWER DESIGNATION Rural Utilities Service IDAHO 515 -G TAX IDENTIFICATION NUMBER REQUEST FOR MAIL LIST DATA 93-0739703 LEGAL NAME PRIMARY E~MAIL ADDRESS Rural Telephone Company,Inc.Susan. Case~ruraltelphone. com CORRESPONDENCE ADDRESS WEBSITE URL STREET 1 892 W. Madison Avenue www. rtci. net REGULAR BOARD MEETING HELD ON Glenns December 31stCITYFerry STATE IDzlP 83623 PHYSICAL ADDRESS DATE SET FOR NEXT ANNUAL MEETING STREET 1 892 Madison Avenue December 31. ?OOfi PHONE NO.FAX NO. CITY Glenns Ferry STATE IDZIP 83623 (208)366-2614 (208)366-2615 CORPORATE OFFICIALS NAME MAILING ADDRESS (First, Middle Initial, and Last)(include P.O. Box, Street Address or Rural Route, City, State, and Zip Code) MANAGER OR CEO STREET 1 TITLE CITY STATE ZIP PRESIDENT STREET 1 892 ,-7.Madison AvenueTITLE James R.Martell CITY Glenns Ferry STATE ID ZIP 83623 VICE PRESIDENT STREET 1 892 W.Madison AvenueTITLE Michael J.Martell CITY Glenns Ferry STATE Tn ZIP R~h?~ SECRETARY STREET 1 892 W.Madison AvenueTITLE Carmela Martell CITY Glenns Ferry STATE ID ZIP 8362~ TREASURER STREET 1 892 W.Madison AvenueTITLE Carmela Martell CITY Glenns Ferry STATE ID ZIP 83623 TITLE STREET 1 CITY STATE ZIP TITLE STREET 1 CITY STATE ZIP TITLE STREET 1 CITY STATE ZIP TITLE STREET 1 CITY STATE ZIP TITLE STREET 1 CITY STATE ZIP RUS Form 87 (Rev. 6-2002) NAME OF ORGANIZATION ATTORNEYFelton & Felton Michael Felton, Jr. AKT Doug Davison, CPA CONSULTING ENGINEER Mid State Consultants DATE PREPARED March 1, 2004 RUS Form 87 (Rev. 6-2002) RELATED ORGANIZATIONS MAILING ADDRESS (include P.O. Box, Street Address or Rural Route, City, State, and Zip Code) PO Box 589 1020 Main Street Buhl208 543- 1011 Commercial st. NE Suite 120 Salem STREET 1 CITY PHONE STREET 1 CITY PHONE STREET 1 CITY PHONE SIGNATURE 1475 N. 200 W. PO Box 311 Nephi (435) 623-8601 STATE ID ZIP83316 STATE OR ZIP 97301 STATE DT ZIP 84( TITLE President r-rr"J LA- According to the Paperwork Reduction Ac'of 1995. an agency may Itot conduct or sponsor, and a per!;'on is not required to respond to a collection of i"rormation unless it displays a valid OMB controlnumber. The valid OMB control nllrilberfor this information collection is 0571-0032, The time required to complete this information is estimated to average .08 of an hollr per response, including thetime/or reviewing instructions. searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection o.finformation, CO MPLIAN CE ASSURANCE (Title VI, Civil Rights Act of 1964 Section 504, Rehabilitation Act of 1973 Age Discrimination Act of 1975) Rural Utilities Service United States Department of Agriculture Washington C. 20250 The undersigned acknowledges that it is familiar with Title VI of the Civil Rights Act of 1964 as amended (42 s. C. 2000d et seq.) ("Title VI of the Civil Rights Act'?, Section 504 of theRehabilitation Act of 1973, as amended (29 s.C. 794) ("Section 504 of the Rehabilitation Act"), the Age Discrimination Act of 1975 as amended (42 s.C. 6101 et seq.) (the "AgeDiscrimination Act"), the rules and regulations of the U.S. Department of Agriculture implementing Title VI of the Civil Rights Act (7 CFR Part 15) and implementing Section 504 of the Rehabilitation Act (7 CFR Part 15b), the government-wide rules and regulations of the V.Department of Health and Human Services implementing the Age Discrimination Act (45 CFRPart 90) under which the U.S. Department of Agriculture is operating until such time as it adopts its own implementing regulations (7 CFR Part , 7 CFR Part 15b and 45 CFR Part 90being hereinafter collectively called the "Departmental rules and regulations ?, and the rulesand regulations of the Rural Utilities Service implementing Title VI of the Civil Rights Act Section 504 of the Rehabilitation Act, the Age Discrimination Act and the Departmental rules mgiJlations (7 CFR Part 1786) (the "RUS Regulations The undersigned hereby assures the Rural Utilities Service that it will comply fullywith all requirements imposed by or pursuant to such Departmental rules and regulations and the RUS regulations which require that no person, on the basis of race, color, national originage, or handicap, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination in the conduct of its program and the operation of its facilities. The undersigned further agrees that, in the event of its violation of or failure to comply with any of the requirements imposed by or pursuant to such Departmental rules and regulations the United States may seek judicial enforcement of compliance with such requirements. This assurance is executed and supplied to the Rural Utilities Service pursuant to a duly adopted resolution of the board of directors of the undersigned. R US Borrower March 1, 2004 Date Person Authorized by the Board To Sign This Assurance James R. Martell, President RUS FonTI 266 (Rev, 01/00) CONSENT RESOLUTION RURAL TELEPHONE COMPANY RUS Loan AQPlication The undersigned , being the all of the directors of Rural Telephone Company, an Idaho corporation (the "Company ), do hereby take the following corporate action without a meeting in accordance with the general corporation laws of the State of Idaho and the constituent documents of the Company: WHEREAS, the Company desires to provide new underground plant and upgraded services in each of its exchanges in Idaho and Nevada (the "Project" WHEREAS, to the best of the Company s knowledge, the Project is in compliance with the State Telecommunications Modernization Plan ("STMP"); and WHEREAS the Company now wishes to finance the Project with financing from the Rural Utilities Service ("RUS") in the amount of up to Seventeen Million, Four Hundred Twenty Five Thousand One Hundred Four Dollars ($17,425,104.00) (the "RUS Loan NOW, THEREFORE , BE IT RESOLVED, that the officers and directors of the Company are hereby authorized and directed to make application to and upon approval of RUS seek and obtain the RUS Loan; and it is FURTHER RESOLVED that the Company shall take all such actions in the knowledge of the Board of Directors, to cause the Project to be in compliance with STMP; and it is FURTHER RESOLVED , the Board of Directors of the Company have determined that the desired financing is specifically in furtherance of the Company s corporate purposes, is necessary and convenient to the conduct, promotion and attainment of its business and will be to its benefit, and that the application for the RUS Loan, and the execution of the documents in connection with the application for the RUS Loan do not constitute an ultra vires act on the part of the Company, and such execution is authorized by the corporate laws of the State of Idaho and not otherwise prohibited by the Company Certificate of Incorporation or Bylaws; and it is FURTHER RESOLVED that for action of RUS in reliance hereon, the Secretary of the Company be and hereby is authorized and empowered to certify to RUS a copy of these resolutions and any other form of resolutions substantially in the same effect which may be required by RUS, and to attest to the execution of all loan documents by the President and/or Vice President of the Company in connection with the RUS Loan where required by RUS, and that RUS may consider such officers and directors to continue in office and these resolutions to remain in full force and effect until written notice to the contrary shall be received by an officer of RUS; and it is FURTHER RESOLVED that James R. Martell, as President of the Company, and Michael J. Martell, as Vice-President of the Company, jointly and/or severally, are hereby authorized and directed on behalf of the Company to negotiate, enter into1 execute and deliver all contracts, assignments, documents, affidavits, agreements, CONSENT RESOLUTION - S:\CLlENTS\1716\25\Consent Resolution re Application GPO1.DOC EXHIBIT B certifications and all other documents as said President and/or Vice President shall deem necessary, desirable or appropriate, and to take all such other and further actions as they shall deem necessary, desirable, appropriate or expedient to make application to RUS for the RUS Loan; and it is FURTHER RESOLVED, that the President and/or the Vice-President of the Company, jointly and/or severally are hereby authorized to (a) sign, execute, certify to, verify, acknowledge, deliver, accept, file, and record any and all instruments and documents, and (b) take, or cause to be taken, any and all such action in the name and on behalf of the Company as in such officer s judgment, is necessary, desirable, or appropriate in order to make application to RUS for the RUS Loan, or otherwise expedient to effect the purposes of the foregoing resolutions. (end of text) CONSENT RESOLUTION - 2 S:\CLI ENTS\ 1716\25\Consent Resolution re Application GPO1.DOC The undersigned, being all of the Directors of Rural Telephone Company, hereby execute this Consent Resolution effective as of this day of June, 2004. ~'. Matthew J. artell1 ( " ,j \.... "::., ,"" -... \\ \. ." .. "'"', "\ ;~, /".. \..- Aria! ~a Roberts .' ," , ,I . " / ,/. ,,/ ,'" /~, -- 1.. ./ , .. i?L/ ~_,/L ( \..- /'" AngJ) Carpenter ~,,. ~~ ~~, ~~ (c &. j/' :J. 4U2" ..cf~,~ C Corporate Secretary .. . Corporate Seal CONSENT RESOLUTION - 3 S:\CLlENTS\1716\25\Consent Resolution re Application GPO1.DOC Conley E. Ward (ISB No. 1683) GIVENS PURSLEY LLP 601 W. Bannock Street P. O. Box 2720 Boise, ID 83701-2720 Telephone No. (208) 388-1200 Fax No. (208) 388-1300 cewCfYgi venspursley .com Attorneys for Rural Telephone Company S\clients\ 1716\25\PROPOSED ORDER. doc BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF RURAL TELEPHONE COMPANY FOR AUTHORITY TO BORROW FROM THE RURAL UTILITIES SERVICE ("RUS") IN THE AMOUNT OF NOT MORE THAN $17 500 000 Case No. PROPOSED ORDER On July 23 , 2004 Rural Telephone Company (hereinafter Applicant) filed an Application for Loan Approval with this Commission requesting authority to execute loan contract amendments and supplemental mortgages in the amount of not more than $17 500 000 with the United States of America, acting through the Rural Utilities Service ("RUS" In support of said Application, Applicant alleges that the proposed RUS loan proceeds will be used to pay for, and partially reimburse general funds to: (1) establish a new central office and switch in the Boise River exchange, (2) provide new fiber optic and buried cable for inter-office transmission, (3) provide for switch and software upgrades and access line growth through 2008, and (4) make related system improvements. After examining the Application and supporting documents and being fully advised in the premises, the Commission hereby finds that a hearing in this matter is not required, and that the EXHIBIT C - 1 EXHIBIT C proposed transaction is consistent with the public interest and the Applicant's proper performance of its duties as a public utility. IT IS THEREFORE ORDERED that the Application of Rural Telephone Company for authority to execute a loan contract amendment and supplemental mortgage with the RUS in an amount not to exceed $17 500 000 be, and the same is hereby GRANTED. DONE by Order of the Idaho Public Utilities Commission this day of 2004. Paul Kjellander, President Dennis S. Hansen, Commissioner Marsha Smith, Commissioner EXHIBIT C - 2 LEGAL NOTICE OF RURAL TELEPHONE COMPANY APPLICATION FOR AUTHORITY TO BORROW FUNDS NOTICE IS HEREBY GIVEN that on July 23, 2004, Rural Telephone Company completed and filed with the Idaho Public Utilities Commission an Application for authority to borrow up to $17 500 000 from the United States of America, acting through the Rural Utilities Service, and in connection with the borrowing to execute a telephone loan contract amendment and a supplemental mortgage. The Application is on file and is available for public inspection at the Idaho Public Utilities Commission. Any person desiring to comment on said Application must file petitions or protests with the Idaho Public Utilities Commission within fourteen (14) days of the filing date. If no protests are received within this time limit, the Commission may consider the Application and enter its Order without setting the matter for hearing. If written protests are filed with the Commission within the time limit set, the Commission will consider the same, and in its discretion, may set a hearing. Petitions or protests must be filed with: Jean Jewell Secretary, Idaho Public Utilities Commission, Statehouse, Boise, Idaho 83720. Jean Jewell, Secretary Idaho Public Utilities Commission S:\Clients\1716\2S\LEGAL NOTICE FOR AUTHORITY TO BORROW FUNDS.doc EXHIBIT