Report No. MM95-22 MASS MEDIA ACTION March 7, 1995 CAVALIER PUBLIC SCHOOL DISTRICT #6 GRANTED CP AND LICENSE FOR ITFS CHANNELS A1-A4 IN MILTON, ND The FCC has conditionally granted the application of Cavalier Public School District #6 for a construction permit (CP) and license in the Instructional Television Fixed Service (ITFS) on Channels A1-A4 in Milton, ND; and denied the competing application of Minto Public School District #20 for the ITFS channels at Inkster, ND. In cases of mutually exclusive ITFS applications, where applicants are competing for the same or adjacent channels in the same geographic area, each application is reviewed pursuant to the Commission's comparative process. This procedure awards a maximum of 12 merit points based on five criteria deemed most relevant to predicting the applicant best qualified to provide the service for which the ITFS spectrum was allocated. In this case, Minto received four points for being local, three points for being accredited, and two points for observing the four-channel limitation, for a total of nine points. Cavalier was awarded four points for being local, three points for being accredited, two points for observing the four-channel limitation, and two points for proposing at least 41 hours of formal educational programming per channel per week, for a total of 11 points. Thus, Cavalier is the tentative selectee. Cavalier proposed leasing its excess capacity for non-ITFS use and submitted a copy of its lease agreement with Control Technology, Inc. (CTI). Generally, the parties to an excess capacity lease agreement are identified as the lessor and lessee. The ITFS licensee (in this case Cavalier) is the lessor, and the wireless cable operator (CTI) is the lessee. However, the lease agreement identified Cavalier as the lessee and CTI as the lessor. Because of this mislabeling, the Commission was unable to review the lease to determine if it conforms in all respects to its requirements. Accordingly, the Commission instructed Cavalier to submit for review a lease agreement which correctly and consistently identifies the parties and their respective obligations. -more- -2- The Commission noted, however, that this condition does not reflect on Cavalier's basic or comparative qualifications, nor preclude grant of an authorization. Action by the Commission February 28, 1995, by Memorandum Opinion and Order (FCC 95-87). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong. -FCC- News Media contact: Patricia A. Chew at (202) 418-0500. Mass Media Bureau contact: Marsha Evans at (202) 418-1610.