April 2021 Newsletter - Annual Meeting Recap

APRIL 2021 - ANNUAL MEETING RECAP

VOLUME 6, ISSUE 1

FEATURED STORY:

Lights. Camera. Action.

PAGE 6

Annual Meeting Goes Virtual

Your FiberFASTTM Internet Provider

From the CEO: Annual Meeting Report

PAGE 3

President’s Report

PAGE 8

RDFC Grants Available

PAGE 11

ANNUAL MEETING RECAP 2

April 2021 Volume 6, Issue 1

Red River Communications April 2021

The Red River Communications newsletter is published quarterly for our members. It is distributed free-of-charge to our members in North Dakota, South Dakota, and Minnesota.

BOARD OF DIRECTORS Dave Gauslow President District 1 - Abercrombie Harlan Deike Vice-President District 4 - Great Bend Gary Boutiette Secretary/Treasurer District 5 - Kent Wayne Schindler District 2 - Barnesville Rhonda Erbes District 3 - Colfax Neil Klosterman District 6 - Mooreton Jerry Janssen District 7 - Rollag Ronald German District 8 - Fairmount/Hankinson Jan Schmit District 9 - Lidgerwood/Wyndmere

Red River Communications 510 Broadway PO Box 136 Abercrombie, ND 58001 Questions? Service issues?

Call 866-553-8309 REDRIVERCOMM.COM

Cover Photo: Crews work on installing fiber in the Boutin Addition near Hawley last fall.

Produced by the team at Red River Communications

From the CEO: Annual Meeting Report Tom Steinolfson CEO The past year (2020) is forever going to be remembered as the year of the pandemic. As I write this, I believe we can definitely see the light at the end of the tunnel and being free of the restraints that this pandemic has had on all our lives.

Though the pandemic has brought many facets of our lives to a standstill, it was still a year of growth, change, and milestones for Red River Communications. However, we must not forget those who have been lost due to COVID-19.

As the year began, Red River focused on opportunities to bring broadband service to more homes. Little did we know that many of the strategic plans we had formulated in January would be put on hold in early March due to the emerging pandemic.

Suddenly, students were learning from their kitchen tables and the importance of reliable, fiber broadband became underscored.

Red River Communications, along with the other members of the Broadband Association of North Dakota (BAND), worked feverishly in those early weeks of the pandemic to bring broadband internet to literally hundreds of new locations. Sometimes this meant temporarily laying nearly a mile of fiber optic cable over frozen ground to get families connected as quickly as possible. Ultimately, the members of BAND were able to ensure that 99.8 percent of K-12 students in their service territories were connected and able to keep learning. This is a testament to the hard work and grit of those who call this region home.

The pandemic also forced a change in how we worked.

In late March, the decision was made to move many of our team members to alternate work locations, whether it

“The members of BAND were able to ensure that 99.8 percent of K-12 students in their service territories were connected...”

ANNUAL MEETING RECAP be home or other Red River central offices.

The pandemic also forced the postponement and ultimately the cancellation of our 68th Annual Meeting that was to be held in March of 2020.

In lieu of an annual meeting members had the opportunity to review items and vote on them through mail. While not ideal, it still enabled our members to have a voice in their Cooperative.

Interviews took place in mid-June and by the end of June I was fortunate to be selected by the Board to serve as the next CEO of your Cooperative. After turning in my resignation at IAMO Communications in Coin, Iowa, I began my employment at Red River on August 31. My wife and I were able to quickly sell our home in Iowa and purchased a home in Colfax. We both call North Dakota home and it is good to be back closer to home and family!

3

Red River Communications April 2021

As a provider of critical infrastructure, we balanced keeping our services running while ensuring our team, their families, and our members were kept safe. We anticipated this would last only a few weeks, however it was not until June that most of our team members began reporting to the office. Our office remained closed to the public during this time. This is a testament to the employees that Red River has.

Their patience and perseverance really showed that we have a great team.

Board engaged Consortia Consulting to begin an exhaustive search to find the Cooperative’s next CEO.

Shortly after my arrival, we re-engaged a strategic opportunity that had stalled due to the pandemic; that opportunity was the acquisition of the Wahpeton-Breckenridge assets and customer base of our partner 702 Communications. A letter of intent to complete the acquisition was signed in late 2020 and the acquisition was completed early in 2021.

“This project ultimately This was significant as it opened new means Red River opportunities for growth Communications will have for the Cooperative.

REDRIVERCOMM.COM

Shifting gears, last summer we began a project to bring new features to our Digital TV service. The existing platform had been in place since 2013 and was the opportunity to reach slated to be discontinued The decision was by the vendor. This nearly 4,000 new customers made to bring fiber to meant that Red River had homes and businesses in the coming years. “ to find a new vendor. The within Wahpeton and Board and management Breckenridge. We met with many vendors and chose Innovative anticipate this project will take about 3-4 years Systems of Mitchell, SD to provide the platform to complete and will begin later this summer. for the next generation of Digital TV for our This project ultimately means Red River members.

Communications will have the opportunity to reach nearly 4,000 new customers in the coming Because of the pandemic-compressed timeline, years. we employed contractors to assist our own team with these Digital TV upgrades. Most of our 800+ Expanding into Wahpeton and Breckenridge is Digital TV subscribers were upgraded before truly a historic moment for the Cooperative and the end of January, which was ahead of the for the Twin Towns. Our team is excited, up to the scheduled sunset of the existing platform. I wish challenge, and looks forward to serving these to thank our members for their understanding, two communities. patience, and feedback as we worked through I feel so fortunate to be chosen to lead this this upgrade process.

Cooperative, with the opportunity to live in a The past year also brought changes to the great part of our region, and work with great management of Red River Communications. After people. I, along with the entire staff, look forward a nearly 31-year career with the Cooperative to seeing everyone in person next year at our with 18 years as CEO, Jeff Olson announced 70th Annual Meeting. his intentions to retire at the end of 2020. The

4

COOPERATIVE HAPPENINGS

Scott Link wins drawing during virtual annual meeting Member Scott Link of the Wyndmere exchange was the winner of a $250 cash prize.

The drawing was held during our 69th Annual Meeting, which was attended virtually. Members in attendance were eligible for a chance to win the $250 cash prize.

Red River Communications CEO Tom Steinolfson and member Scott Link

Facebook Giveaway winner Diane Fitzpatrick was the winner of a cooler bag that was given away on Facebook.

REDRIVERCOMM.COM

She is a Cooperative member from Abercrombie. Diane says she’s looking forward to working at Fort Abercrombie again this summer.

All members who registered and attended the virtual annual meeting received a $10 bill credit.

New listings Frank Kava 218-937-5039 facebook.com/redrivercommunications @redrivercommunications instagram.com/redrivercommunications

Directory Recycling Recycle your old phone book! You can drop off your old directory at our office in Abercrombie.

Jerry Janssen Joins Red River Communications Board of Directors

5

Red River Communications April 2021

Jerry Janssen was elected to serve on the Red River Communications Board of Directors during the Cooperative’s 69th annual meeting, which was held on March 18, 2021. Janssen will represent the Cooperative’s Rollag Exchange and will serve a three-year term as a director.

Janssen was elected to the position vacated by the retiring Tom Bjorndahl, who served 12 years on the Board.

Jerry is a life-long resident of the Rollag area. He makes his home on a farm in rural Rollag with his wife Vicki. Jerry and Vicki have two grown sons who live nearby. Janssen operates Janssen Machine Company in rural Barnesville in addition to farming.

Janssen was drawn to the serving on the Board as he has always been interested in cooperatives and what they do for rural communities. Outgoing Rollag Exchange director Tom Bjorndahl also played a role in convincing Jerry that the timing was right to join the Board, much like the convincing Jerry did of Tom years ago when Bjorndahl first ran.

Jerry notes how important reliable internet access is for rural communities. “Broadband is integral to so much,” said Janssen. “It’s become even more evident as work and

Jerry Janssen

school has shifted online in the past year.”

Besides farming and operating his machine shop, Jerry is an avid aviation enthusiast and does not pass up an opportunity to fly his 1953 Super Cub. While soaring above the hills and lakes of the Rollag area, Janssen can see firsthand the difference reliable internet service makes.

“Almost every pond or lake or farmstead has a new home on it. Many of these people work remotely or need good internet to make a living,” noted Janssen.

“Having access to fiber internet is helping to keep these areas vibrant.”

Reminder to Check Scholarship Deadlines

UP TO TWELVE $1,000 SCHOLARSHIPS WILL BE AWARDED THIS SPRING High school seniors should check with their local high school regarding scholarships offered to students whose cooperative.

redrivercomm.com/about/scholarships

REDRIVERCOMM.COM

parent is a member of the Red River Communications

ANNUAL MEETING RECAP 6

Red River Communications April 2021

Lights.

Camera.

ACTION.

OUR 69TH ANNUAL MEETING WENT VIRTUAL TO KEEP EVERYONE SAFE DURING THE PANDEMIC Due to safety concerns for its members and staff, Red River Communications held its annual meeting online virtually this year. 131 members participated in the meeting on March 18 along with a dozen guests.

Directors elected to the board were incumbent Dave Gauslow (District 1 - Abercrombie Exchange), incumbent Harlan Deike (District 4 – Great Bend Exchange) and new director Jerry Janssen (District 7 – Rollag Exchange).

Reports were given by the Cooperative’s auditor Matt Laughlin, board President Dave Gauslow and General Manager/ CEO Tom Steinolfson.

REDRIVERCOMM.COM

Gauslow recognized Director Tom Bjorndahl as retiring from the board after serving 12 years and General Manager/CEO Jeff Olson who retired at the end of 2020 after 30 years with the Cooperative.

Steinolfson was introduced to the members as the new General Manager/ CEO and he spoke about upcoming construction plans for the Wahpeton/

Breckenridge areas.

Scott Link of Wyndmere was drawn as the winner of a $250 cash door prize.

In the re-organizational meeting, President Gauslow and Secretary Gary Boutiette (District 5 – Kent Exchange) were re-elected. Deike was elected VicePresident of the Board of Directors.

Thank you to everyone who participated in the 69th annual meeting. We plan to hold several in-person customer appreciation events this summer. Watch for more information on social media, our website and in newsletters.

FOR MORE INFORMATION: REDRIVERCOMM.COM/ANNUALMEETING OR SCAN THE QR CODE BELOW

ANNUAL MEETING RECAP 7

Red River Communications April 2021

REDRIVERCOMM.COM

ANNUAL MEETING RECAP 8 Red River Communications April 2021

Annual Meeting Recap: President’s Report Red River Communications held its Annual Meeting on March 18, 2021. Because of Covid restrictions, the meeting was held virtually. This virtual annual meeting was a first for Red River and I would like to thank those that chose to participate as well as the staff members who made it happen. It did allow us to conduct the business that is required in the Bylaws, but we missed not being with our members in person.

Hopefully, by next March, we’ll be able gather with everyone as before.

YEAR IN REVIEW Once again Red River had a successful year financially. More than $670,000 in retained patronage was returned to the members in 2020 in the form of capital credit checks.

As I have stated before, returning patronage is not a reflection of the financial condition of the Cooperative, but it does show that we are financially strong enough to return capital to our members.

provide. However, this year, I would like to focus on the changes with the people that make Red River the cooperative that it is.

CHANGES IN LEADERSHIP 2020 marked the retirement of long-time General Manager/CEO Jeff Olson. Jeff has been a member of the Red River family for over 30 years, serving the last 18 years as General Manager/CEO. When it comes to seeing changes, Jeff has just about seen it all. As in Jeff’s own words, when he arrived in 1990, there was no internet, no cell phones and only one computer in the central office to handle the digital switch. Without a doubt, Jeff’s skillful leadership transformed Red River from a telephone company to worldclass telecommunications company. We will be forever grateful to Jeff for his leadership and wish him the absolute best in his retirement.

“The Red River crew put in countless hours making sure that our schools and members have stayed connected.”

REDRIVERCOMM.COM

As I prepare my report each year, I often reflect on the changes that have occurred in the past year. Often those changes are in the dramatic pace in which technology occurs in the telecom industry. Sometimes those changes are in the way Red River receives support for the services that we

NEW GENERAL MANAGER/ CEO

Finding a replacement for Jeff would be the most critical task that this Board of Directors would be asked to do. With that in mind, the Board decided to engage Dan Caldwell of Consortia Consulting to help conduct a nationwide search for the new General Manager/CEO. Dan brought forward a remarkably qualified list of candidates of which five finalists were chosen. The position was offered to Tom Steinolfson in June and he began his job August 31.

Tom comes to Red River from IAMO

ANNUAL MEETING RECAP

CHANGES IN DIRECTORS I would also like recognize the retirement of long-time Board member Tom Bjorndahl from the Rollag Exchange. We will miss Tom and would like to thank him for his service these past 12 years. Jerry Janssen was elected to replace Tom during the virtual annual meeting. We look forward to working with Jerry and would like to welcome him to the Board.

In April 2020, our friend and long-time past board member Wally Stetz from the Barnesville Exchange passed away at age 89. In addition to serving on the Board of Directors for six years, many of you will remember Wally preparing the meal at our annual meeting for many years. We miss Wally and would like to extend our condolences to his family.

for their great work during the COVID-19 pandemic. At the start of the pandemic, the telecommunications industry was deemed an essential industry and those at Red River really took this to heart. I think that we have all come to realize that the internet has become the lifeline that has helped get us through these difficult times. The Red River crew put in countless hours making sure that our schools and members have stayed connected. Whether it was working from home or out in the field, the staff made sure that service was never disrupted. When Governor Burgum asked the ND Telcos to make it possible for all students in North Dakota to attend classes virtually, Red River stepped up and connected many families in our service area with high-speed internet so that no students or teachers would be left out.

Thank you to Tom, Jeff and the entire staff at Red River for another successful year.

And thank you to you, the members, for continuing to support your Cooperative.

Dave Gauslow Board President

ESSENTIAL SERVICE AND ESSENTIAL INDUSTRY Dave Gauslow

REDRIVERCOMM.COM

“Finding a replacement for Jeff would be the most critical task that this Board of Directors would be asked to do.”

Before I close, I would like to recognize the management and staff at Red River

9

Red River Communications April 2021

Communications in Coin, Iowa. He has over 30 years of experience in the rural telecommunications field. Originally from northeast ND, Tom was with BEK Communications in Steele, ND for 29 years before moving to Iowa to become General Manager at IAMO. We know that Tom will do a great job and we welcome him to the Red River family.

ANNUAL MEETING RECAP 10 Red River Communications April 2021

Annual Meeting Recap: Financial Report Red River Rural Telephone Association dba Red River Communications contracted with Brady Martz & Associates for the purpose of conducting an annual audit. Matt Laughlin CPA from Brady Martz & Associates presented the Cooperative’s financials during the annual meeting held on March 18, 2021. At the time of publication, the audit was not yet completed and the financials are considered preliminary.

BALANCE SHEET - ASSETS

STATEMENT OF OPERATIONS

Total Current Assets

$ 6.6M

Operating Revenue

$11.6M

Other Assets & Investments

$15.8M

Operating Expenses

$ 9.1M

Telecommunications Plant

$19.7M

Margins from Operations

$ 2.5M

Non-Operating Margins

$ 1.8M

Income Tax

$ 363K

NET MARGINS

$ 4.0M

TOTAL ASSETS $42.7M

BALANCE SHEET - LIABILITIES Current Liabilities

$ 2.6M

Long-Term Debt

$ 6.9M

Total Members’ Equity

$32.3M

TOTAL LIABILITIES & MEMBERS’ EQUITY

$42.7M

All figures are considered preliminary and are subject to adjustment, modification, or change.

Common Cents Making a big difference in our communities The Common Cents board added two new members at their March meeting – Julie Hansen replaces Joy Bang representing the Rollag Exchange and Lou Ann Lee replaces Cheryl Hackey representing the Abercrombie Exchange. Elizabeth Thiele was re-elected to represent the Great Bend Exchange.

The board officers for Common Cents remain the same – Chairperson Benae Freeberg, ViceChairperson Elizabeth Thiele and Secretary Andrea Haugen.

The next Common Cents board meeting is June 8 so applications should be submitted by May 31. See Red River’s website for an application and additional information.

REDRIVERCOMM.COM

FOR INFO, VISIT redrivercomm.com/ common-cents

$191,946.00 Donated since 2008 to causes in our Communities

11

Red River Communications April 2021

As a member of the Rural Development Finance Corporation in North Dakota, Red River Communications will award up to four $500 grants or two $1,000 grants to North Dakota entities or organizations within or surrounding Red River Communications’ service area. Entities who provide services to North Dakota along with a neighboring state are also eligible. The RDFC program requires a 4-to-1 match ($2,000 fundraising for a $500 grant).

Any grant combined with an organization’s own fundraising must cover the cost of the project.

An applicant does not need to be formally

Completed applications must be returned to Red River Communications by June 1, 2021.

FOR MORE INFORMATION: REDRIVERCOMM.COM/COMMUNITY OR SCAN THE QR CODE BELOW

REDRIVERCOMM.COM

RDFC grants are available to communitybased businesses or facilities such as an ambulance service, a fire department, a community center or recreation center.

Community-based projects through service clubs and youth or school programs are also eligible.

organized as a non-profit, however, forprofit entities do not qualify for RDFC grants. The application must be for a project, not for operating or ongoing expenses.

PO Box 136 510 Broadway Abercrombie, ND 58001

ARE YOU PLANNING A DIY PROJECT? Planting a tree or putting up a fence? Remember to contact North Dakota One Call or Gopher State One Call! There are several utility lines buried such as fiber optic, electric, gas or water...

The first step to any project is safety!

Damaging an underground facility can be costly and can cause injury or even death.

Dial 811 to contact North Dakota One Call or Gopher State One Call and the utility line owners will be notified to locate their lines.

It’s free, it’s simple, and it’s the law.

Visit call811.com for more information

Construction Tip Mark your proposed construction area with white flags or paint. Locates are valid for 14 days in Minnesota and 21 days in North Dakota.

OFFICE HOURS

HELP DESK

BILL PAY

Monday-Friday 7:30am-4:30pm

Need assistance?

We’re here 24/7 to help you!

No added fees!

Online or by phone.

Closed Saturday and Sunday

866-553-8309

855-386-9905 redrivercomm.com

Your FiberFASTTM Internet Provider

redrivercomm.com