WPCl 2MBVRKZ#|j7jC:,hXj\  P6G;XP"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxdHP LaserJet 4M (PCL)HPLA4MPC.PRSXj\  P6G;\a{XP2EKT X-#Xj\  P6G;hXP##|jCourierArialArial BoldTimes New RomanTimes New Roman BoldTimes New Roman ItalicTimes New Roman Bold ItalicCourier Italic"i~'^:DPddDDDdp4D48dddddddddd88pppX|pDL|pp||D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd2 Z+KvJ HP LaserJet 4M (PCL)HPLA4MPC.PRSd  @8;\a{@X` hp x (#%'0*,.8135@8:PPCiPPPCPPPPPPPCvCCCCCCCCvvvvvC5PPPCgv5DPO5PPPvvvYCivvvPvPAu4/4WddddddddddddddddddddddddddddddddddddddddNTT~PYVPTO33PPPPTTuu3OuO"uu~uu"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+99999999S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""""2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNXh*f9 xr G;XX\{,W80,>?W*f9 xr G;X&7nC:,)Xn4  pG;X<E<<<,n <6X@`7,@z-X80,UX9 xOG;y.\80,) [\4  pG; r5ddd,qѡd6Nhez7HS99]]]Sxnxxng?Snxgx]nxxxxn9/9aS9S]I]I9S]/9]/]S]]I?9]SxSSIC%CW9+Wa99999999S9]/xSxSxSxSxSxxInInInInI>/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSx W<Ԃ2 #2PG;P# FEDERAL COMMUNICATIONS COMMISSION  W <#Xm2PG; XP#WASHINGTON, DC 20554#I2PG;,jP#у Xp  X-pp#Xj\  P6G; XP# February 24, 1997   IN REPLY  X-REFER TO:# G\  P6G;YP#  Xu-  p#o\  PC XP#h1800B3BCD Gregg P. Skall, Esquire Pepper & Corazzini 1776 K Street, NW, Suite 200 Washington, DC 20006 Harold K. McCombs, Jr., Esquire Duncan, Weinberg, Miller & Pembroke, PC 1615 M Street, NW, Suite 800 Washington, DC 20036  XJ-*In re: **6KOFY(AM), San Mateo, California ****6Application for Modification of Daytime Facilities **6File No. BP960523AC **6KPAY(AM), Chico, California **6Contingent Surrender of License Dear Counsel:   **_We have on file Pacific FM, Inc.'s ("Pacific") abovereferenced application for a minor modification of station KOFY(AM), San Mateo, California's daytime facilities. The modification application seeks consent to make changes in the KOFY(AM) directional antenna system. On  X-January 29, 1997, Pacific filed an amendment ("Amendment") to the subject application.Zj yO-#X\  P6G; IP#э Although the Amendment was originally filed as an amendment to a pending application seeking to modify  {O` -KOFY(AM)'s nighttime facilities (File No. BMP960830AD), on February 21, 1997, Pacific filed a correction to indicate that the Amendment was intended to amend the subject application. We also have on file a Technical Services Agreement ("Agreement") between Pacific and McCoy  X-Broadcasting Company, Inc. ("McCoy"), licensee of KPAY(AM), Chico, California. j yO$-#]\  PC IP#э The Agreement was filed as part of an application to assign the license of KNSN(AM), Chico, California (File No. BAL960523EB). This application, granted July, 16, 1996, authorized the assignment of the KNSN(AM) license from Alta California Broadcasting, Inc. to McCoy. Our records indicate that this assignment has not yet been consummated. Pursuant to the Agreement, McCoy proposes to surrender the KPAY(AM) license for cancellation contingent"0*0*0*;"  X-upon,   inter alia, the finality of the grant of the subject KOFY(AM) application.x~j yOy-#X\  P6G; IP#э The Agreement also calls for surrender of the KPAY(AM) license to be contingent upon certain circumstances involving a modification application for KNSN(AM), Chico, California (File No. BP960523AA). We find, however, that there is no interference between KPAY(AM) and KNSN(AM) and thus no reason for us  {O-to allow any contingency between the KPAY(AM) surrender and the KNSN(AM) modification application. See  {O-47 C.F.R.  73.3517. See also Policies to Encourage Interference Reduction Between AM Broadcast Stations, 5 FCC Rcd 4492 (1990). We note, however, that the KNSN(AM) modification application was granted on  {O--February 20, 1997. See Broadcast Actions, Report No. 43936 (released February 25, 1997).x For the reasons stated below, we grant the subject application conditioned upon the surrender of the KPAY(AM) license prior to the commencement of KOFY(AM) program tests. _The Commission has undertaken significant initiatives to improve and revitalize the AM  X-service. Review of the Technical Assignment Criteria for the AM Broadcast Service, 6 FCC Rcd  Xz-6273 (1991), recon. granted in part and denied in part, 8 FCC Rcd 3250 (1993). One such initiative permits licensees to reach agreements to make facilities changes to reduce interference.  XN-Policies to Encourage Interference Reduction Between AM Broadcast Stations, 5 FCC Rcd 4492  X9-(1990) ("Interference Reduction Proceeding"). In order to encourage such agreements, the Commission's rules were amended to provide for the acceptance of contingent applications that  X -would facilitate a reduction in overall AM interference.  Id. at 4493. The amended contingent application rule, 47 C.F.R.  73.3517, applies to both deletions and modifications of existing interfering AM stations. In amending the rule to permit the filing of contingent applications that would "reduce interference to one or more AM stations or . . . otherwise increase the area of interferencefree service," the Commission removed regulatory barriers that prevent or discourage individual AM stations from entering into private agreements that would ultimately decrease  X-interstation interference and improve the quality of AM service. Id. at 4492. Contingent application arrangements that propose the deletion or modification of an AM station require a casebycase public interest determination and the parties must demonstrate that a sufficient "local service floor" will be maintained in the community losing a local transmission service and throughout the service area that will experience a reduction in service due to the deletion or modification.  X- _Interference Reduction. The Amendment demonstrates that the cancellation of the  X-KPAY(AM) license will eliminate substantial amounts of mutual interference between KPAY(AM) and KOFY(AM). Moreover, no new interference will be caused or received as a  X-result of the proposed modification of KOFY(AM)'s daytime facilities.j yO`!-#X\  P6G; IP#э Although the 5 mV/m KOFY(AM) daytime contour proposed in the subject application yielded theoretical overlap with the 5 mV/m daytime contour proposed in a pending modification application (File No. BMP960807AA) filed by the permittee of unbuilt station KIOQ(AM), Folsom, California, on January 7, 1997, Pacific filed an amendment to the subject application demonstrating an absence of actual overlap between the two proposed daytime contours.  Xs- "s 0*0*0*"  X-_Local Service Floor. The Amendment demonstrates that the deletion of KPAY(AM) will  X-not create any new "white" area within KPAY(AM)'s former service area.\Z1 yOb-#X\  P6G; IP#Ѝ A "white" area is an area that does not receive interferencefree primary service from an authorized AM  {O*-station or does not receive a signal strength of at least 1 mV/m from an authorized FM service. See 47 C.F.R. 73.14.\ Additionally,  X-although a new 35 km2 "grey" area will be created, this "grey" area contains no population.1 {Om- x#X\  P6G; IP#э A "gray" area receives one fulltime service. See Interference Reduction Proceeding, 5 FCC Rcd at 4496, n. 14.  X-   X-_ Conclusion. We have considered (1) the amount of AM interference that will be eliminated by the cancellation of the KPAY(AM) license, (2) the number of aural services that will continue to serve KPAY(AM)'s service area and (3) the service gain proposed by the KOFY(AM) modification application and we find that the public interest will be served by Commission approval of the Agreement. _Accordingly, the Technical Services Agreement between Pacific FM, Inc., and McCoy Broadcasting Company, Inc. is, to the extent indicated herein, APPROVED and the application for a minor modification of station KOFY(AM), San Mateo, California's daytime facilities (File No. BP960523AC) is GRANTED. This action is conditioned as follows:  }   _This action is conditioned upon the surrender of the KPAY(AM), Chico,  }California, license to the Commission for cancellation prior to the commencement  }of Program Test Authority by KOFY(AM), San Mateo, California, with X"8l"  the  }facilities authorized by this construction permit, pursuant to the discontinuance of operation provisions in 47 C.F.R.  73.1730.    _**6TSincerely, _**6TDennis Williams, Assistant Chief _**6TAudio Services Division _**6TMass Media Bureau*F