ANNUAL REPORT - MTA Solutions€¦ · MTA’s Co-op model also helps generate jobs in the communities we serve, and those jobs stimulate our local economy and help support community

ANNUAL REPORT

ANNUAL NOTICE

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MESSAGE FROM THE CEOTechnology and telecommunications continue to advance at an increasingly rapid pace, and MTA is at the

forefront of this wave of change, delivering telecommunication services and building infrastructure that help

reinforce the economic foundation in our serving areas. Access to reliable, high-speed internet is widely

considered a necessary tool for successful business operations and household activities. To satisfy this demand,

MTA once again took the lead, announcing the AlCan ONE project.

In April 2019, through its wholly-owned subsidiary,

MTA Fiber Holdings, LLC, MTA began construction

on the historic Alaska Canada Overland Network

(AlCan ONE). The first of its kind, this all-terrestrial

fiber network will provide a long-term, cost-effective

solution for broadband connectivity that will deliver

reliability and security for MTA members – along with

individuals, businesses and government agencies

across Alaska – for decades. It’s also scalable to meet

our members’ and Alaska’s future capacity needs,

ensuring the future viability and growth of internet-

based technologies.

Earlier this year, MTA commissioned an economic

impact survey by the McDowell Group in Anchorage,

to gain an understanding of the socioeconomic

footprint MTA and its subsidiaries have in our

communities and throughout the state. As we digest

the results, one thing is clear – high-speed internet is

an essential infrastructure, in the same way highways,

ports, and airports are to the movement of people

and goods. Even more important are the business,

educational, public health, and household activities

that would not be possible today without it.

MTA continues to grow. In 2019, we welcomed 1,600

new members, and that boost in membership was

matched by growth in our network; outside of the

AlCan ONE Project we laid almost 40 new miles of

fiber, upgraded 7,139 locations and have approximately

5,000 upgrades to structures planned for 2020.

A key part of the Co-op’s mission is empowering our

members to live a connected life. We’ve developed

robust, hands-on member education opportunities -

from tech education series focused on the latest

streaming products, the introduction of our totalwifi

product to help manage your home Wi-Fi network, to

our increasingly popular annual esports tournaments.

We’ve also made it easier for members to reach out to

us with 24 hour, 7 days a week customer support.

Customer support can mean many things. The

heartbreaking COVID-19 pandemic that has disrupted

our families, economy and general way of life,

has served as a reminder that we have no greater

responsibility as a community business leader and

Co-op than to look out for our fellow Alaskans. We’ve

helped to make sure that students and teachers remain

connected, that borough activities continue operating

seamlessly, and that local businesses have the tools

they need to make it through this difficult time.

We have worked hard this past year to deliver a series

of initiatives to serve as a boost to our state,

our economy, our communities and most importantly -

our members. We’re proud to be Alaska Born and

Stayed, because to our team at MTA, nothing is

more important.

Michael C. BurkeMTA CEO

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MTA has been an integral part of Eagle River/Chugiak

and the Mat-Su Valley for almost seven decades.

Out of the necessity to provide a reliable means

of communication to the developing territory, the

cooperative was established in 1953 by a group of

like-minded individuals, focused on building a better

tomorrow for their community. Since its inception,

your cooperative has been guided by elected, local

leadership, with the same focus, and ever-improving

technology to deliver on that commitment. We

are proud that MTA operates as one of the largest

telecommunications cooperatives in the United States,

sharing its success with its growing membership, all

while being Alaska Born and Stayed.

Building on our positive growth throughout 2019, the

MTA Board of Directors - Chief Governance Officer

Catherine Fosselman; Board Secretary Roxie Mayberry;

Director Ken Kincaid; Director Nicholas Begich; Director

Thomas Newman and MTA CEO Michael Burke –

has worked seamlessly to position the cooperative

for the future, championing MTA’s early adoption of

advancements in telecommunications technology,

supporting dynamic retail customer communications

and launching large-scale projects, such as AlCan ONE,

the first and only all-terrestrial fiber route to connect

Alaska with the contiguous United States and beyond.

Our communities have faced some serious challenges

over the past several months. With smoke clouds

billowing and flames threatening infrastructure around

our communities, the fires that broke out last summer

were devastating to our community. In the midst of the

destruction caused by the fires, MTA employees were

in the field, working hard to ensure that reliable internet

service persisted – despite dangerous conditions.

The rapid response of MTA employees to make sure

members were able to stay safe and connected

was a window into the ongoing work our Co-op

does to manage interruptions or crises caused by

fire, earthquakes and, as we’ve seen more recently,

a pandemic.

But being a Co-op is about much more than just

showing up in times of need. As a 100% locally owned

Co-op, your success is our success. MTA has built a

network throughout its serving area that delivers the

most reliable, cost-effective internet connection in

the state. This allows businesses to participate in not

only our local economy, but the global economy. This

success and opportunity enhance the quality of life in

our communities.

We’re making capital investments that not only

make sense to MTA as a business, but to our state

and service area, and most importantly – to you.

MTA’s Co-op model also helps generate jobs in the

communities we serve, and those jobs stimulate our

local economy and help support community services

in our region.

MTA has always been diligent in its commitment to its

members, looking for better ways to deliver the high-

quality service and product suite you’ve come to rely

on from your cooperative.

One example of this is the AlCan ONE project, which

we were proud to watch MTA CEO Michael Burke

announce last year, alongside Alaska’s governor. This

project is not only an historic endeavor that puts MTA

- Continued on page 7

Thomas NewmanDirector

Ken KincaidDirector

Catherine FosselmanChief Governance Officer

Roxanna De MayberryBoard Secretary

Michael C. BurkeMTA CEO

MTA BOARD OF DIRECTORS

Nicholas J. Begich, IIIDirector

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MTA ANNUAL REPORT

COMMUNITY MESSAGE

eUnlimited Event

Bear Paw Festival


When MTA began construction on our all-terrestrial fiber line, the Alaska-Canada Overland Network (AlCan ONE) in May 2019, we knew we could count on one thing for sure: a lot of digging.

Game-changing fiber networks aside, over the past year, we’ve also been digging deeper into what it means to be a true partner to the people and communities across our service area.

When so many of our employees live, work, play and volunteer in the communities we serve, investing in those communities and the people that invest in us just makes sense. It’s the right thing to do.

As a community leader in technology and business for 67 years, MTA shares the same concerns about economic opportunities and quality of life as our fellow Alaskans. So we look to partner with our community in ways that enhance these opportunities, helping everyone thrive through the adoption of technology.

In 2019, our community efforts ensured learning continuity for Mat-Su Valley students and educators, efficient operations for Mat-Su Borough municipal activities and successful businesses.

We’ve dug deeper into community partnerships in many ways, expanding and evolving existing community programs, including:

• Girls Who Code summer camp at Mat-Su Borough School District: This year, we had several MTA women in technology volunteer at the camp. Not only are the women of MTA passionate about the future workforce of strong female leaders, but they are invested in the community they live in.

• Annual eUnlimited™ gaming tournament: The 2019 eUnlimited™ tournament attracted the largest number of participants in its five-year history, setting the event up for continued growth. In 2019, the MTA eUnlimited™ Gaming Tournament raised over $30,000 for the MTA Foundation.

Beyond convening students and residents in our communities at esports events, we also created structure and intention in our community commitments, strengthening existing relationships and responding to community needs effectively. We did this through:

• Refreshing the MTA Foundation: With strong guidance, a clear vision, technology resources and an “all-in” mindset from MTA, we reinvigorated our investment in $100,000 worth of scholarships for technology education and career development for local, Alaskan-grown talent and grants and donations to empower Alaskan businesses and organizations for success.

• Becoming the “Official Esports Partner” of the Mat-Su Borough School District (MSBSD): Building on the success of Girls Who Code, MTA now provides strategic support to MSBSD technology staff and students, enabling them to prepare, train and compete in the esports arena with free access to gaming equipment and team jerseys. In 2020, MTA will hire two esports-related student interns selected from the MSBSD. We’re proud to lead the charge in establishing esports in Alaska, not only as a modern form of competition but also as a valuable educational tool.

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MTA FOUNDATIONBOARD OF DIRECTORS

For the MTA Foundation, 2019 was all about a strong

revitalization in its commitment to giving Alaskans

the resources they need to make a difference. With a

renewed mission from 2018, it was time for a new look

and a new voice. We’re excited to introduce to our

members the new MTA Foundation logo and website.

The new branding characterizes Alaska as we see it –

a digital frontier. Our home is vibrant and rich in

natural resources and beauty. Alaska is also richer

because of its people, who are strong, self-determined,

and undaunted by change. With the new mission of

the MTA Foundation, we can close the digital divide

across Alaska, pioneering technological growth and

economic development along the way.

Who is the MTA Foundation?The MTA Foundation serves to promote technology

awareness, economic development and enhance

entrepreneurship through education and other

activities in the MTA member service area.

Scholarship ProgramWith full-fledged and “all-in” support from our

parent company, MTA, the MTA Foundation invests

in the communities MTA serves so we do not miss

out on technological and economic opportunities.

A cornerstone of the MTA Foundation and its

commitment to our community is the wide range of

scholarships it awards to support students who are

focusing their educations on honing technological,

business and entrepreneurial skills. Through these

scholarships, we are proud to sustain and prepare

the next generation of tech and business leaders who

might create the projects and initiatives of tomorrow

that all of us can only dream of today. In 2019, we

provided $100,000 in scholarships to 27 students. This

represents 33% giving in mission-specific activities.

Donation ProgramEach year, the MTA Foundation invests in its

community through donations. Through the mission-

specific donation categories, the MTA Foundation

supports activities that encourage economic

development, technological diversity and growth

throughout the Mat-Su Valley and Eagle River/Chugiak

communities. In 2019, $14,250 in donations were made

to 9 organizations for mission-specific activities.

The MTA Foundation also recognizes the value of

supporting the community beyond the mission-

specific categories and makes donations in general

community support categories for other worthy

activities. In 2019, $35,834 in donations were made

to 61 organizations for general community support.


Dr. Alex HillsDirector

Michael C. BurkeFoundation Secretary Treasurer

Catherine FosselmanDirector

Roxanna De MayberryVice President

Nicholas J. Begich, IIIPresident

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2019AUDITED

2018AUDITED

Assets

Current Assets $ 34,549 $ 28,875

Plant and Equipment, Net 185,188 162,215

Other Assets 31,044 19,861

Total Assets $ 250,781 $ 210,951

Liability & Equity

Current Liabilities $ 19,274 $ 15,215

Deferred Credits and Obligations 1,078 15,668

Long-term Debt 69,609 27,110

Equity 160,820 152,958

Total Liabilities & Equity $ 250,781 $ 210,951

2019AUDITED

2018AUDITED

Operating Revenues

Wireline $ 52,673 $ 54,717

Non Regulated Services 54,587 56,339

Other 3,047 4,939

Total Revenues $ 110,307 $ 115,995

Operating Expenses

Plant Specific Operations $ 11,549 $ 13,146

Plant Nonspecific Operations 7,321 9,050

Customer Operations 4,210 5,239

Corporate Operations 10,219 9,730

Depreciation and Amortization 16,218 15,173

Nonregulated Services 51,385 53,169

Operating Taxes 1,025 1,041

$ 101,927 $ 106,548

Non-Operating Income/(Expense)

Income Tax Benefit $ (209) $ (1,235)

Other Income/(Expense), Net (10,812) (3,259)

Net Margins $ (2,641) $ 4,953

Balance Sheet*

Income Statement*

FINANCIAL STATEMENT

• Owner equity remains strong at 64% of assets.

• $14.2 million in Defined Benefit Pension Expense for 2019 (higher due to final liquidation) and $2.88 million in 2018.

• Over $51 million in capital additions.

• Employed 406 people who live and work in our communities.

• Purchased more than $46.4 million in goods and services from 340 Alaskan vendors in 2019. – Construction comprised 54% of in-state spending.

– Wholesale and retail goods accounted for an additional 20% of in-state spending.

• The MTA Foundation provided $100,000 in scholarships and $50,084 in charitable donations to more than 70 Alaska nonprofits, including cash and in-kind support. The Foundation supported a variety of organizations, including: – Education and Youth (Future Farmers of America; Chugiak, Colony, and Palmer high schools);

– Community services (Wasilla Area Seniors; Mat-Su Food Bank); – Arts and Recreation (Valley Performing Arts; Radio Free Palmer; Mat-Su Ski Club)

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2019 Consolidated Revenues

48%Wireline

49%Non-Regulated

Services

3% Other

• The MTA Board of Directors authorized disbursement of $262,000 in Capital Credit Estate Retirements in 2019.

• Labor Force Development Initiatives MTA offers two workforce development programs, involving internships and apprenticeships, to engage students and new professionals in their service area.

Internships – MTA offers an internship program designed to expose students to the telecommunications industry, provide hands-on job skills, and retain talented students in their service area. Opportunities are available for high school and college students in a variety of departments and roles. In 2019, MTA employed 11 interns.

Apprenticeships – MTA employs journeyman electricians through an apprenticeship program providing on-the-job experience and training. The program provides a pathway to full-time employment for journeymen, and employees participating in this apprenticeship program are often hired as full-time MTA employees prior to completion of their vocational education.

• Pursuant to MTA Bylaws, Article VI, Section 5(g), CEO remuneration, including the value of benefits for the year ending December 31, 2019 has been certified by the Secretary of the MTA Board of Directors in the amount of $550,560.66.

80% 80%

40% 40%

60% 60%

20% 20%

70% 70%

30% 30%

50%50%

10% 10% 2019

2018

2017

2016

2015

64

%

73%

68%

65%

62%

DATA

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on the map nationally, but it’s one that members will

see tangible benefits from through more secure and

reliable connections to each other and the rest of the

world. Projects like this are absolutely necessary to

support the long-term viability of our communities

and the services our members need.

Projects like AlCan ONE demonstrate MTA’s efforts

to close the digital divide between urban and rural

America. Pursuing this project allows MTA to create

technological diversity for its members, now and

tomorrow.

As the Board of Directors, our top priority is to

maintain the strength of this cooperative. Given all of

MTA’s recent accomplishments and successes, we are

confident that MTA has never been stronger which,

in turn, translates to a stronger and better Alaska.

MTA is passionate about introducing technology to our members in ways that will positively impact their lives. Often, this means putting boots on the ground to host product and streaming services showcases for senior citizens across our communities, and participating in mainstay community events like the annual Chugiak-Eagle River Bear Paw Festival and Palmer’s Colony Days.

While the current COVID-19 crisis has us in uncertain times, we have faith that the people and communities of Alaska will remain strong. Our families, economy and general way of life may be interrupted, but they are not defeated.

Now, more than ever, we must all dig into additional ways to support our fellow Alaskans. To do that, we plan to rely on a few other things we know. We know how hard the people in our communities work, how difficult isolation can feel in a time of social distancing, and that we will be there for our members to empower them and all residents of our communities to live their most connected lives.

So, whether by shovel, by investment, by technology support or by our feet on the ground, MTA will only keep digging, and forging ahead on our path to true community partnership.

COMMUNITY MESSAGE -continued-

MTA FOUNDATION BOARD OF DIRECTORS -continued-

MTA BOARD OF DIRECTORS -continued-

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Major Grants ProgramIn 2019, the MTA Foundation Board created a new and exciting program, major grants. This program allows organizations that work to further the mission of the MTA Foundation to apply for larger funding. The major grant program allows the Foundation to invest strategically to advance the Foundation’s mission. In 2020, two major grants were awarded to the UAA Summer Engineering Academy Camps for the Mat-Su Valley and to the Palmer Historic Museum Photo Archival Project. Each program is advancing or leveraging technology to reach the MTA serving area in meaningful ways.

You’ll be seeing a lot more of the MTA Foundation as we invest in Alaskans and their ideas.

Check out our new website here: www.mtafoundation.org

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2020 ANNUAL MEMBERSHIP MEETING

WIN $500!Every member who casts a valid mail or electronic vote will be automatically entered into a drawing to win!

Need not be present to win.

The major items of business for this year’s Annual Meeting are the election of two directors and two proposed Bylaw amendments.

Official Notice | 2020 MTA Annual Membership Meeting

Notice is hereby given pursuant to Article III, Sections 1 and 3, of the Bylaws of Matanuska Telephone Association, Inc., regarding the Annual Membership Meeting of the Association: the MTA Board of Directors has unanimously approved to postpone the in-person portion of the Annual Membership Meeting scheduled for June 3, 2020, due to the severe and unprecedented public health emergency facing the State of Alaska, MTA, and its members. A new date will be announced to members when conditions allow. The Board of Directors intends to proceed, as scheduled, with the election by mail and electronic balloting for director and Bylaw amendments; no in-person voting will be permitted. Dated at Palmer, Alaska this 1st day of May, 2020 by:

Roxanna De Mayberry, Board SecretaryMatanuska Telephone Association, Inc.

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It’s fast, it’s easy, and it’s green! To vote electronically, you will need two pieces of information: Your Member Number and your voting Password.

• Your Member Number can be found on the back of the ballot return envelope included in this envelope packet.

• Your Password was mailed to you recently on a separate green postcard.

In your web browser, visit the web address www.mtavote.com and follow the on-screen instructions.

Lose Your Voting Password? Each member of record may request a replacement electronic voting password by calling the election contractor, Sramek Hightower CPAs, at 855-682-8683 (855-MTA-VOTE) toll free in the U.S.

Electronic Voting Deadline: You must vote electronically by 5:00 p.m. on Tuesday, June 2, 2020.

If Voting Electronically

If Voting By Mail

Lose Your Paper Ballot? Each member of record may request a replacement mail ballot by calling the election contractor, Sramek Hightower CPAs, at 855-682-8683 (855-MTA-VOTE) toll free in the U.S.

Mail Ballot Deadline: Mailed ballots must be received in the Election Committee’s post office box by 5:00 p.m., June 2, 2020. Ballot envelopes that arrive after this deadline will not be counted.

Questions About How to Vote? If you have any questions about how to vote electronically or by mail, call the election contractor, Sramek Hightower CPAs, at 855-682-8683 (855-MTA-VOTE) toll free in the U.S.

VOTE ONLINE and be entered into weekly prize drawings, starting May 4th through the week of June 1st.

2020 VOTING INSTRUCTIONS

Step 1 Make Your Selections. Please read the material in this notice, which provides information on the candidates running for the two available director positions and the two proposed Bylaw amendments.

Step 2 Completely Fill In The Oval. Use a number 2 pencil or black pen. Vote like this:

Step 3 Use The Provided Envelope. Put your ballot into the return postage-paid envelope found within your packet to return your ballot by mail to the Election Committee.

Step 4 Sign The Envelope. To be considered valid, the mailed ballot envelope must have the proper signature. The

person who is indicated on the envelope is the correct person needed to sign.

Joint Membership. A household may receive service based on a joint membership for a married couple. If you have a joint membership, only one signature is needed. If your spouse is a member, and you are not, your spouse must sign the ballot envelope. If you are unsure whose signature is on file as the authorized member, both persons can sign the ballot envelope.

Business Accounts. The owner or authorized person must sign. If you are unsure of who is authorized to vote, please contact us prior to voting by calling 907-761-2639.

Step 5 Allow Enough Time For Mail. Mail early so your ballot arrives in time to be counted. Mailed ballots must be received in the Election Committee’s post office box by 5:00 p.m., June 2, 2020.

Due to the severe and unprecedented public health emergency facing the State of Alaska, MTA, and its members, the in-person portion of the Annual Membership Meeting has been postponed. A new date will be announced to members when conditions allow. The Board of Directors intends to proceed, as scheduled, with the election by mail and electronic balloting for director and Bylaw amendments. No in-person voting will be permitted.

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MTA is a member-owned cooperative guided by a Board of five directors who are elected by the Members.

This year, there are two open director seats. The candidate receiving the greatest number of votes shall

receive a three-year term and the second highest shall receive a two-year term. The candidates are solely

responsible for the content of their statements for inclusion in this notice. Information on the candidates can

be found online at www.mtasolutions.com.

BOARD CANDIDATES

2020 Annual Meeting Notice

Q: In your opinion, what are some of the greatest opportunities and challenges facing MTA and how will you serve to best meet those on behalf of MTA members?

A: From my “birds-eye” view, Matanuska Telephone Association’s (MTA) greatest opportunity and challenge is the same – keeping the Matanuska Valley (or even Alaska) connected. Expanding on that a little, I would say keeping the Valley connected at a reasonable cost to both the members and MTA. The cost of doing business in Alaska, as we all know, is substantial versus other areas of the country; especially in the Valley due to the sheer size of MTA’s footprint. Furthermore, being the leading “home grown” provider of phone and internet services in the only area of the State that is still growing makes MTA a target for competitors. MTA forms the framework, at considerable costs, for a service and customer base only for competitors to take advantage of. However, being the incumbent does have some advantages, in that if you are providing a good service at a competitive price, usually customers don’t find the need to shop. Leading to another challenge, needless to say, no business should stay complacent in the services they provide because technology may one day call on such customers. Meaning, the pace of how fast technology changes (mobile traffic is set to quadruple before 2021 and bandwidth is expected to

Q: Why I want to serve on MTA’s Board of Directors:

A: Matanuska Telephone Association (MTA) is not only the major supplier of communication services to the Matanuska Valley, they are a key employer in the community and the opportunity to work with such a chief stakeholder is very appealing. Also, having had the pleasure to work with MTA in the past, helping service the cooperative’s financial needs as a service provider, I came to know and understand a little about the communications industry and find both the industry and cooperative fascinating. Growing up in the community, I was taught by my parents to always give back to the community. This combined with my professional experience (over 30-years working in the service industry) and education, places me in a position to help the organization to achieve its mission and goals. Furthermore, my board member experience combined with raising 5 children (who use a tremendous amount of MTA’s services and data) lends my personal experiences, knowledge, and talents as well, to help guide the cooperative. In closing, I offer my technical expertise and a true understanding, passion, and enthusiasm for my community to MTA.

Paul R. BeerWasilla, AK Phone: (907) 715-7068


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continue to double every year) combined with the costs of newer technology - how does MTA plan on keeping up or even ahead? These are just some of the challenges and opportunities facing MTA. I offer both my professional and board experience in guiding MTA through these coming trials.

Background

Additional experience in the following areas: Management, Financial Analysis, Supervisory Skills, Customer Service, Cash Management, Business and Consumer Lending, General Office Equipment, Typing, Ten Key (by touch), Sales (have won several sales awards local and national), Excel, Microsoft Word, Windows, Marketing, Accounting, Balancing, General Ledger, Account Reconciliation, and Account Certification, and Microsoft Outlook E-Mail.

Activities and Community Involvement:

• Team Captain for the United Way with Wells Fargo.

• Experience owning and managing a small business.

• Former American Institute of Banking representative for KeyBank.

• Involved with several non-profit organizations: - Chamber of Commerce Advisory Board Member - Valley Mover (current Board President) - Alaska Community Development Corporation (current Board Member) - Valley Performing Arts (current Board Treasurer) - Wasilla Noon Rotary (2017-18 President and past President 2014-15) - Our Lady of the Valley Catholic School (former Board Member) - Wasilla Youth Basketball (former Board Member and Coach).

Experience

First National Bank Alaska, Vice President July 2019 to Present Other Positions Held: Loan Officer Wells Fargo Bank Positions Held:

Business Banking Manager, Vice President February 2012 to July 2019

Senior Business Relationship Manager, Vice President August 2011 to February 2012

Senior Business Relationship Manager AVP March 2010 to August 2011

Business Relationship Manager AVP May 2004 to March 2010

KeyBank National Association Positions Held:

Retail and Small Business Relationship Manager, VP July 2000 to May 2004

Small Business Relationship Associate April 1998 to July 2000

Cash Management Associate November 1996 to April 1998

Credit Analyst I June 1996 to November 1996

Investment Assistant (Clerk IV) June 1994 to June 1996

ACH Coordinator April 1992 to June 1994

PM Reject Re-entry Clerk May 1991 to April 1992

Lead Proof Operator November 1990 to May 1991

Item Processing Clerk July 1989 to November 1990

Proof Operator December 1988 to July 1989

Education

University of Alaska, Anchorage Degree: Associates in Small Business Administration Courses: Business Management, Fundamentals of Supervision, Financial Management, Personal Finance, Computer Information & Office Systems, Economics, Money and Banking, Law and Banking, Marketing Practices, Salesmanship, Financial Accounting I and II, and Managerial Accounting. Other Education: Passed the State of Alaska Insurance test for insurance licensing in Life and Accident/Health. Completed the course requirements for an American Institute of Banking “General Banking Diploma.” P.R.I.D.E. (People Really Involved in Delivering Excellence) a form of TQM training. Attended and completed several Management, Sales, Financial Analysis, Small Business Credit, and Deposit workshops with Wells Fargo and KeyBank.

PAUL R. BEER -continued-

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Q: Why I want to serve on MTA’s Board of Directors

A: I have been a member of MTA since 1985 and have benefited as a customer from their evolving services. My wife, Katie Fosselman, has benefited as a business owner as the purchaser of business phone systems and managed IT services.

The importance of MTA to our community has also evolved from providing basic telephone service to supporting businesses with emerging technology and services. The value of MTA to our community will continue to increase if it can provide low cost, effective solutions for cybersecurity, increasing technology solutions for small businesses, and sufficient bandwidth for the Internet of Things.

My education and experience working for a credit union – a member-owned financial cooperative – that used operating subsidiaries to create value for members will allow me to make a meaningful contribution to MTA in the coming years.

It would be my privilege to serve as a Board Member of our cooperative.


A: Competition from very large telecoms and new competitors, such as satellite phone companies, means MTA will face increasingly fierce competition in the coming years. The explosive growth of connected devices and the Internet of Things will bring benefits to us all but require substantial investment in infrastructure to fully realize its potential. Cybersecurity is a top concern of families, businesses and governments.

Challenges are also opportunities to solve problems. As a member-owned cooperative, MTA is uniquely positioned to solve problems that for-profit competitors may never address. The definition of success for a cooperative goes beyond its financial bottom line to include all benefits created for members and the community. Smart investments in infrastructure and technology can be offered to members to solve problems such as cyber risk and improved connectivity at a cost below what a national competitor would charge. Expansion of business services through AlasConnect can generate fair profits that will reduce risks to MTA from cutbacks in regulatory support.

Background

Interests include international travel, photography, cooking, and spending time with my wife, Katie and our five grandchildren.

Experience

Retired in 2019

Denali Federal Credit Union, 1997 – 2019 Positions Held:

Various executive roles culminating in Chief Corporate Development Officer. Areas of executive responsibility included: Marketing, Human Resources, Investment Services, Applied Analytics, Technology and analytics managed subsidiaries with total valuations over $50 million. CUNA Mutual Group, Account Vice President in Alaska 1985 - 1997

Dale FosselmanWasilla, AK Phone: (907) 232-2140


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Education

Alaska Pacific University Degree: B.A. Organizational Administration Alaska Pacific University Degree: MBA Professional Certifications Earned:

• Chartered Property Casualty Underwriter

• Certified Credit Union Executive

M.I.T. Executive Education Programs Completed:

Building, Leading and Sustaining the Innovative Organization (2004)

Developing and Managing a Successful Technology and Product Strategy (2014)

Platform Strategy: Building and Thriving in a Vibrant Ecosystem (2016) Licenses Previously Held During Career: Insurance: All Lines, including Life, Health, Property, Casualty, Bonds

Securities: Series 63, 65, 66, 7


A: MTA is one of the largest technology Co-ops in the nation and is located in the fastest growing borough in Alaska. The Mat-Su Borough boasts roughly 50% of all of Alaska’s new home construction, even though it is only 14% of the state’s overall population. Recent Alaska Department of Labor projections estimate Mat-Su Borough population will grow by another 65,000 residents in the next 25 years. This projected growth is a fantastic opportunity for MTA to grow its membership base and provide exceptional service to new and existing customers. In 2019, MTA embarked on the construction of “AlCan ONE,” which is the first ever all-terrestrial fiber optic network connecting Alaska to the Lower 48 states. This project will transform MTA from a significant purchaser of broadband capacity to the dominate supplier of broadband capacity in Alaska. Access to reliable, high capacity broadband is an essential ingredient to continued socio-economic development of the Mat-Su Borough.

Q: Why I want to serve on MTA’s Board of Directors

A: The extended Kincaid family has modeled community involvement to me for my entire life. My mother, at the age of 86, continues to serve on the Board of Directors of the local Salvation Army, Matanuska Electric Association (MEA) and the Knik Arm Bridge and Toll Authority (KABATA), to name just a few. Observing this volunteerism and community involvement in action has greatly influenced the development of my philosophy that each of us is responsible to give back to our community in tangible ways. I currently serve on the Board of Directors of the Mat-Su Health Foundation, Mat-Su Regional Medical Center, and Church on the Rock’s Corporate Board. In January 2019, I was appointed to MTA’s Board of Directors.

I have been an MTA Co-op member for over 35 years, but it was not until I was appointed to the Board of Directors that I learned to appreciate the Co-op’s professional management team and the governance model that has been established. It has been an honor to serve the Co-op Members in 2019 and 2020 and bring my years of business experience to this vital community asset. It would be a privilege to continue that service to our community.

Ken E. Kincaid (Incumbent)

Palmer, AK (907) 232-1808

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Great opportunities are often accompanied with great challenges. MTA is geographically dispersed with over 5,500 miles of physical lines in the Mat-Su Borough. Our challenge is to properly manage this expected growth while meeting the capacity needs of our members. It is a blessing for me to be able to bring my business background and analytical abilities to contribute to MTA’s ability to navigate these opportunities and challenges.

Background/Education

Alaskan born and raised business owner, Ken Kincaid has a long history in the Mat-Su Valley. He and his wife of 35 years started a real estate investment company here while raising three children. Alaska is known as a pioneer state and a land of opportunity for those willing to work hard, believe in oneself and take measured risk. After earning his bachelor’s degree in Economics, he began his professional career in Anchorage as a commercial real estate appraiser. He quickly became the CEO of Kincaid & Riely, LLC while achieving the MAI designation. The exposure to these complex appraisals helped hone his analytical skills and ability to become a quick study of various and disparate industries. Ken is also a unique blend of a blue-collar worker and professional business analyst. He is as comfortable operating heavy equipment as he is analyzing a discounted cash flow or being the keynote speaker to a crowd of 500 business professionals.

Ken has built several businesses, managed employees, and been a consultant and a director in many organizations and companies. His many business ventures in real estate are a complement to his vast amount of board experience. He brings distinctive inter-disciplinary concepts to management and creative business frameworks.

Experience

Ken presently serves on four Boards of Directors (BOD). BOD’s responsibilities include the corporate governance of the organization, oversight of the CEO, approval and monitoring of the operating budget and representation of voices of each organization’s broader constituency. It has been immensely rewarding for Ken to be able to serve the community through his service to the boards listed below:

MTA Board of Directors 2019-Present

Corporate Board of Directors at Church on the Rock 2018-Present

Board of Directors for the Mat-Su Regional Medical Center 2013-Present

Board of Directors for the Mat-Su Health Foundation 2012-Present

Ken was recruited to join the BOD for MTA as a seasoned, business-minded Board Member who is able to assimilate the immense and complex information on new business ventures. He was recruited to join the BOD of Church on the Rock to bring a voice of governance and business to this faith-based organization. Ken was appointed to the BOD of Mat-Su Regional Medical Center (MSRMC) to represent the interests of the Mat-Su Health Foundation, who is a partial owner of the hospital. One of the more important aspects of the MSRMC Board is to understand the business risks in a highly regulated and ever-changing medical reimbursement environment. Ken was recruited to join the Board of Directors for the Mat-Su Health Foundation (MSHF) to help it navigate the complexities of purchasing an additional 10% ownership stake in the Mat-Su Regional Medical Center. He presently serves as the MSHF Board’s Secretary/Treasurer and chairs the Finance Committee. During his 8-year tenure, the organization’s long-term investments have grown from roughly $50,000,000 to $120,000,000. Correspondingly, their grants to the community have increased from $3,400,000 in 2012 to exceeding $10,000,000 in 2019. CEO of Kincaid & Riely- Anchorage Commercial Appraisal Firm (1984-2001) Upon college graduation, Ken began a career as a real estate appraiser working in the Alaskan office of a Seattle based company. Within six years, he was promoted to the manager and then the CEO and sole owner of the Alaskan division. Kincaid & Riely LLC remained one of the most highly regarded appraisal firms in the state and Ken was the youngest of his peers (age 30) to obtain the MAI designation.

During his appraisal career, he was recognized as a real estate expert in Federal and State courts in Alaska, Oregon and Texas. He successfully undertook some of the most complex appraisal assignments in Alaska. This would include the state’s largest Shopping Centers, Hotels, Office Towers and specialty properties such as entire College Campuses, Hospitals, Surimi Fish Processing Plants, Hydro Electric Facilities and Timber Sawmills.

Experience/Background

Edward Jones Investments (Financial Advisor) 2001 - Present Provide investment services, including planning for retirement; generational wealth transfer; tax efficiency and comprehensive estate planning. Perform portfolio analysis and reviews of current retirement plans for clients and prospects with the goal of setting realistic long-term goals. Additionally, provide all types of life and health insurance products including term and permanent insurance, and long-term care. Mat-Su Community College (Adjunct Faculty) 2008 - Present Assistant Professor teaching classes in Sales Management and Personal Investing. Courses led students through considerations, prerequisites and challenges in pursuit of a career in sales and sales management. Personal investing relating to a greater understanding of investment choices, risk assessment and the pursuit of financial goals. Anchorage Police Department (Resource Manager) 1997 - 2001 Directed management of all state and federal grants; contractual agreements with private businesses and local/state agencies; physical security of the main department building and 10 substations; numerous construction projects; issue and receipt of all supplies and equipment; and the Department’s fleet of over 500 vehicles and special purpose equipment. American Traffic Systems -Alaska (General Manager) 1995 - 1997 Managed all day-to-day operations as the contracted provider of traffic safety services to the Municipality of Anchorage, including budgeting and financial analysis; scheduling of deployments; interface with the Municipality to ensure contract compliance; establishing court appearance procedures; bank processing and bottom-line profitability.

Q: Why I want to serve on MTA’s Board of Directors:

A: Wanting to serve is the real question. Do I really want to “serve” and what does that mean to me? I have been a Rotarian for about 20 years and subscribe to their motto, “...the things we think, say or do is a test used by Rotarians world-wide as a moral code for personal and business relationships. The test can be applied to almost any aspect of life.” To me, this means that I want to do what’s best for all concerned. In this case, as a member of MTA’s Board of Directors, I view this as a responsibility to work with MTA to provide the proper oversight in how business is conducted. MTA’s website says, “We have a genuine interest in the success of our customers.” The Directors have a responsibility to both the customers and to MTA itself, to ensure that their mission Is accomplished in the most cost-effective manner while providing the highest quality of service possible.


A: Opportunities - MTA is in the unique position of being the oldest and most trusted provider of telecommunication services to individual homes and businesses in the Valley. As a member, I’ve seen other providers come and go. It’s no accident that MTA has not only survived but continued to grow and thrive. Being a local Co-op, MTA is positioned to respond quickly and proactively to growth and Industry change.

Challenges- We live in a world that changes and adapts quickly to customer’s needs and desires. Technological advances prompt providers to not only respond to these changes but anticipate industry direction. As noted above, being local is an advantage, but it can lead to a David vs. Goliath scenario. We must be forward thinkers and open to meeting and excelling at every opportunity. Competition is fierce and when everyone is basically providing the same service, it’s the quality of service that counts.

John WarnerWasilla, AK (907) 355-4048

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Alaska USA Federal Credit Union/Alaska Option (Operations Manager) 1993 - 1995 Provided daily oversight for Alaska Option Services Corporation, a regional switching network for financial institutions with Alaska. Duties included account oversight, credit and debit card production, research and adjustment of ATM and POS transactions; quality assurance; data/cost analysis; control of fee schedules; administrative records and compliance with federal and state regulations. United States Air Force 1988 – 1993 HQ USAF Special Operations (Director of Cost and Weapons Acquisition) 1990 - 1993 Directed cost estimating and analysis of numerous programs for special operations forces located throughout the world. Prepared studies; presented briefings and advocated cost and budget funding issues for acquisition of weapon systems valued at over $400 million. Provided ongoing mission support for Air Force special operations around the world as a member of a task force called out as needed.

Alaskan Air Command (Chief, Cost Analysis Division) 1988-1990 Supervised development of cost and economic analyses supporting financial initiative in Alaska. Directed preparation of operating and support cost estimates for aircraft and radar systems and performed financial reviews of military contract proposals throughout Alaska.

Education

Southwest Texas State University, San Marcos, TX Degree: BA Management Analysis University of LaVerne, LaVerne, CA Degree: MS Business Organizational Management

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2020 Proposed Amendments to the Matanuska Telephone Association Bylaws

The proposed change is introduced with a title contained within a shaded box that is the same as that used on the ballot. The language proposed to be added is in bold and underlined like this. The language proposed to be deleted is in strikethrough like this. Comments are in bold italics like this.

Proposal #1: Policy for Directors Seeking MTA Employment

Presently, MTA’s Bylaws restrict current members of the Board of Directors from being employed by MTA. There is nothing that would prohibit a director from applying for a position while serving as a director. Prohibiting current Board directors from applying for employment helps ensure that no favoritism is shown towards directors and helps avoid conflicts of interest. Under the proposed amendment, a current director or close relative could not apply to become an employee of MTA or one of MTA’s subsidiaries. A “close relative” is already defined under MTA’s Bylaws as “parents, husband, wife, children, brothers, sisters, by blood, by marriage, by law, or by adoption and individuals residing in the same residence.”

The MTA Board of Directors unanimously recommends that this amendment be approved.

Should MTA Bylaws Article IV, Section 3 be amended as follows:

ARTICLE IV | BOARD MEMBERS

SECTION 3. DIRECTOR QUALIFICATIONS. No person shall be eligible to become or remain a Director or to hold any position of trust in the Association who:

(a) Is a close relative of an incumbent Director or of an employee of the Association, or is not a member in good standing of the Association, not current in his/her obligation to the Association and receiving service there at his/her primary residential abode, and who is not a bonafide resident of the area served or to be served by the Association.

(b) PROVIDED, that the operating or chief executive of any member which is not a natural person, such as a corporation, church, etc., or its designee, shall, notwithstanding that he/she does not receive service from the Association at his/her primary residential abode, be eligible to become a Director, if he/she or such designee (1) is in substantial permanent occupancy, direction or use of the premises served by the Association, and (2) is a permanent and year-round resident within or in close proximity to an area served by the Association.

(c) BUT PROVIDED FURTHER, that no more than one (1) such person may serve on the Board of Directors at the same time. No person shall be eligible to become or remain a Director of, or to hold any other position of trust in, the Association who is not at least nineteen years of age or who is in any way employed by or financially interested in an enterprise which competes with the Association or one of its subsidiaries, is a wholesale, resale, interexchange, interconnection or competitive local exchange service provider, is involved in a joint venture or other business relationship with the Association or is a business selling telecommunications service and telecommunications supplies to the Association.

(d) Upon establishment of the fact that a nominee for Director lacks eligibility under this section or as may be provided elsewhere in these Bylaws, it shall be the duty of the Chairman presiding at the meeting at which such nominee would otherwise be voted upon to disqualify such nominee. Upon the establishment of the fact that any person being considered for, or already holding, a directorship or other position of trust in the Association lacks eligibility under this Section, it shall be the duty of the Board of Directors to withhold such position from such person, or to cause him/her to be removed therefrom, as the case may be. The person against whom such charges have been brought shall be informed in writing of the charges at least twenty (20) days prior to the Board meeting at which the charges are to be considered and shall have an

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opportunity at the meeting to be heard in person or by counsel and to present evidence in respect of the charges, and the person or persons bringing the charges against him/her shall have the same opportunity. A Board member whose right to sit on the Board has been challenged shall abstain from voting on the issue. The decision of the Board will be final and non-appealable.

(e) Nothing contained in this Section shall, or shall be construed to, affect in any manner whatsoever the validity of any action taken at any meeting of the Board of Directors, unless such action is taken with respect to a matter which is affected by the provisions of this Section and in which one or more of the Directors have an interest adverse to that of the Association.

(f) Has not made a good faith effort to materially comply with the campaign disclosure requirements of these Bylaws.

(g) Has been an employee of the Association or one of its subsidiaries within the past three (3) years, or is a close relative of such a person.

(h) Is a convicted felon, unless the person’s civil rights have been restored by court order.

(i) No current Board member or close relative of a current Board member may apply to become an employee of the Association or a wholly-owned subsidiary of the Association.

Proposal #2: Removal of Board Member by the Board

Presently, a Board member can only be removed from office by holding a special meeting of MTA’s members. While a Board member should never be removed lightly or because of disagreements within the Board, a director who is not of a sound mind or commits serious misconduct should be able to be removed without the delay and expense of a special membership meeting. In addition, the Bylaws are silent on the question of whether the Board can remove a director who no longer meets the Bylaw qualifications for a director to hold office. This amendment would allow removal for those reasons, but only after notice and an opportunity to be heard, and a 2/3 majority vote of the Board of Directors with a minimum three (3) directors voting for removal.

The MTA Board of Directors unanimously recommends that this amendment be approved.

Should MTA Bylaws Article IV, Section 5 be amended as follows:

ARTICLE IV | BOARD MEMBERS

SECTION 5. REMOVAL OF BOARD MEMBER BY MEMBERS.

(a) Any member may bring charges against a Board member, and, by filing with the Secretary such charges in writing, together with a petition signed by at least ten percent (10%) of the members, may request the removal of such Board member by reason thereof. Such Board member shall be informed in writing of the charges at least twenty (20) days prior to the meeting of the members at which the charges are to be considered and shall have an opportunity at the meeting to be heard in person or by counsel and to bring evidence in respect to the charges; the person or persons bringing the charges against him/her shall have the same opportunity. The question of the removal of such Board member shall be considered and voted upon at the meeting of the members without compliance with foregoing provisions with respect to nominations.

(b) By a two-thirds majority (with a minimum of three (3) directors voting for removal), the Board of Directors may remove a Board member from office, after notice and an opportunity to be heard, if the director:

(1) has been declared of unsound mind by a final order of court; or

(2) does not meet the qualifications for office listed in Article IV, Section 3; or

(3) has been found by a final order of court to have breached a duty as a director.


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ANNUAL REPORT - MTA Solutions€¦ · MTA’s Co-op model also helps generate jobs in the communities we serve, and those jobs stimulate our local economy and help support community