WPCQ9 2BJZCourier3|jix6X@`7X@HP LaserJet 4M (PCL) (Add) RM 8210HL4MPCAD.PRSx  @\\"nX@ X-X01Í ÍX01Í Í#Xj\  P6G;9XP#2K-XxCourierTimes New Roman"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$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxd<?xxx,ix6X@`7X@7jC:,9Xj\  P6G;XP\ @^.$h'j;U7G;A7  . )Dxxx,i3|j2Z XKjK Z Times New RomanTimes New Roman BoldTimes New Roman ItalicTimes New Roman Bold Italic"i~'^:LpddDDDdp4D48ddddddddddDDpppdLd||p|||D8DpdDddXdXDdp88d8pdddLL8pXdXLD,DpD4ppDDD4DDDDDDdDd8dddddXXXXXL8L8L8L8pddddpppp|Xdddd|Xd|ddddXXpXXXXXdddpdppL8LdLDLdpppd|8|h|D|L|8pppddLLLpLpLpLpp|l|8|ppppppp|p|L|L|Ld|DppL|D|d4ddC8CWddddddddddddddddddddddddddddddddddddddddNHxxHddLdddddd48HH"&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""an unauthorized transfer of control of Station KNTB by transferring ownership of WBM to  xTriangle on December 17, 1997. This violation is continuing. It also appears that WBM is in  x.violation of the Commission's main studio rule by failing to maintain a fulltime managerial and staff presence at Station KNTB's main studio.  X -Unauthorized Transfer of Control   ?xThere is no exact formula by which control of a broadcast station can be determined. In  xxascertaining whether a transfer of control has occurred, we traditionally look beyond the legal title  xto whether a new entity or individual has obtained the right to determine the basic   operating  X4- xpolicies of the station.  See WHDH, Inc., 17 FCC 2d 856 (1969), aff'd sub nom. Greater Boston  X- xTelevision Corp. v. FCC, 444 F.2d 841 (D.C. Cir. 1970), cert. denied, 403 U.S. 923 (1971).  xAlthough a licensee may delegate certain functions to an agent or employee on a daytoday  xbasis, ultimate responsibility for essential station matters, such as personnel, programming, and  X- xfinances, cannot be delegated.  Southwest Texas Public Broadcasting Council, 85 FCC 2d 713,  X-715 (1981). See also Salem Broadcasting, Inc., 6 FCC Rcd 4172 (MMB 1991).   xBoth Lundgren and Olsen admitted that ownership and control of WBM were transferred  xto Triangle without prior Commission authorization. Both explained that in late 1997, Olsen  Xm- x/learned that Station KNTB was having financial difficulties and was in bankruptcy.m yO - xԍ In fact, the previous assignor of WBM, Josephine SchillingBaine, claims that Fred Lundgren has not paid her for the station. Olsen  xapproached Lundgren with a proposal for Triangle to purchase WBM. Lundgren agreed to the  xsale and the agreement was signed on December 17, 1997. Pursuant to the terms of the  xagreement, Triangle acquired 100% of the stock of WBM. In addition, Lundgren resigned as  xpresident of WBM and was replaced by Olsen. Lundgren's duties at WBM were reduced to those  xof a consultant and advisor. Lundgren admitted that as of December 17, 1997, Olsen assumed  xall responsibility for the operation of Station KNTB, including the critical areas of personnel,  xprogramming, and finances. Triangle did not seek authority from the Commission to transfer" @,-(-(ZZ" control of the station until it filed its FCC Form 315 application on April 21, 1998.   x According to Lundgren's response, the finances of the station are handled by Olsen, Tim  x-Mauch, the station's engineer, Chris Handley, WBM's local business manager, and Rene Schenk,  x.the comptroller of both WBM and Triangle. Lundgren also stated that Olsen has control over  xstation personnel, with certain exceptions. Pursuant to the December 1997 purchase agreement,  xLundgren is to remain an employee of WBM for a specified time period and Mauch is to remain  x!as the chief engineer of the station. According to Lundgren, aside from the contractual  xobligations to employ Lundgren and Mauch, Olsen is in control of the hiring and firing of all  xstation personnel. Lundgren further stated that the programming for the station is provided by  xTriangle. Specifically, he stated that all programming decisions are made by Olsen and Carlos Tynes, Triangle's program director.   lxBased on the information before us, we find that Triangle is in control of the daytoday  xoperation of the station, including its programming, personnel, and finances. Accordingly, it  xyappears that from December 17, 1997, and continuing as of the date of this Notice, you willfully  xand repeatedly violated Section 310(d) of the Communications Act and Section 73.3540 of the  x=Commission's Rules by transferring control of Station KNTB without Commission authority to  xdo so. With respect to these violations, pursuant to Section 503(b) of the Communications Act,  XK- xand in accordance with the forfeiture guidelines set forth in the Commission's Forfeiture Policy  X6- xStatement,6 {O- x-ԍ  Commission's Forfeiture Policy Statement and Amendment of Section 1.80 of the Rules to Incorporate the  {Oy-Forfeiture Guidelines, 12 FCC Rcd 17087 (1997). WBM is hereby advised of its apparent liability for a forfeiture of $8,000 for the unauthorized transfer of control of Station KNTB.  X-Main Studio Violation  W<   X-  x Prior to October 30, 1998, Section 73.1125 of the Commission's Rules required that a  x>station maintain its main studio within the station's principal community contour. Effective  xOctober 30, 1998, this rule was amended to allow a station greater flexibility in the location of  X- xits main studio.5$ {OU- xZԍ  Review of the Commission's Rules regarding the main studio and local public inspection files of broadcast  {O-television and radio stations, MM Docket No. 97138, Report and Order, 63 FR 49487 (released August 11, 1998).5 In either case, the main studio must serve the needs and interests of the  Xi< xresidents of the station's community of license. To fulfill this function, a station must, among  XS- xother things, maintain a meaningful management and staff presence at its main studio. See Main  X>< xStudio and Program Origination Rules (Clarification), 3 FCC Rcd 5024, 5026 (1988).  In Jones  X)- xEastern of the Outer Banks, Inc., 6 FCC Rcd 3615 (1991), clarified, 7 FCC Rcd 6800 (1992),  xthe Commission defined a minimally acceptable "meaningful presence" as fulltime managerial  xNand fulltime staff personnel. It further stated that there must be "management and staff",-(-(ZZK"  X-presence" on a fulltime basis during normal business hours to be considered "meaningful."QX yOy- x Management personnel need not be "chained to their desks" during normal business hours, but must "report  xto work at the main studio on a daily basis, spend a substantial amount of time there and . . . use the studio as a home base." 7 FCC Rcd at 6802.Q  X-   xIt appears from Lundgren's response to the Commission's letter of inquiry that WBM is  xLin violation of the Commission's rules regarding the staffing of a main studio. The lease for the  xkmain studio for KNTB commenced on February 1, 1998. Since that date, the main studio has  x[been staffed by Mauch, the chief engineer, and Handley, the business manager. According to  xLLundgren's response, these employees "float" between the main studios for KNTB and KBRO  x(AM), Bremerton, Washington, which is also licensed to WBM. He explained that Mauch is on  xcall 24 hours per day, seven days a week and Handley works a standard five day work week.  x[KNTB's studio is located in Tacoma and KBRO's studio is located in Bremerton, approximately  x30 miles away. Thus, it appears that the KNTB main studio is not staffed fulltime by a  xmanagement level employee. Moreover, although Lundgren's response indicates that there is a  xfulltime receptionist on duty at the building where the KNTB's main studio is located, the  X - xreceptionist is employed by and is paid by the lessor of the building, and not by WBM. See,  X - xSalem Broadcasting, Inc., 6 FCC Rcd 4172 (MMB 1991) (one parttime employee did not meet  X - xthe staffing requirements set out in Jones Eastern, supra.); KQQK, Inc., 10 FCC Rcd 132 (MMB  x.1994) (staffing violation found where station manager was not present at the studio and could be reached only by telephone).   xTherefore it appears that from at least February 1, 1998, when KNTB's current main  xNstudio was established, and continuing as of the date of this Notice, WBM willfully and  xrepeatedly violated Section 73.1125(a) of the Commission's Rules by failing to maintain a full x.time managerial and staff presence at the main studio for Station KNTB. With respect to these  x.violations, pursuant to Section 503(b) of the Communications Act, and in accordance with the  X- xforfeiture guidelines set forth in the Commission's Forfeiture Policy Statement, WBM is hereby advised of its apparent liability for a forfeiture of $7,000 for the main studio staffing violation.   lxIn regard to these forfeitures, WBM is afforded a period of thirty (30) days from the date of this Notice "to show, in writing, why a forfeiture penalty should not be imposed or pay the forfeiture. Any showing as to why the forfeiture should not be imposed or reduced shall include "",-(-(ZZ!"  xa detailed factual statement and such documentation and affidavits as may be pertinent." 47  xC.F.R.  1.80(f)(3). Other relevant provisions of Section 1.80 are summarized in the attachment to this Notice. x` `  hhFEDERAL COMMUNICATIONS COMMISSION    x` `  hhRoy J. Stewart x` `  hhChief, Mass Media Bureau Attachment cc: Josephine SchillingBaine