Before the
                Federal Communications Commission
                      Washington, D.C. 20554

In the Matter of                )
                                )
Amendment of Section 73.202(b), )       MM Docket No. 98-189
Table of Allotments,            )       RM-9377
FM Broadcast Stations.          )       RM-9475
(Manzanita, Cannon Beach and Bay City,)
Oregon)                         )

                        REPORT AND ORDER
                     (Proceeding Terminated)

   Adopted: June 9, 1999                Released: June 18, 1999

By the Chief, Allocations Branch:

     1.  At the request of John L. Zolkoske ("petitioner"), the Commission has before it the Notice
of Proposed Rule Making, 13 FCC Rcd 20877 (1988), proposing the allotment of Channel 235A to
Manzanita, Oregon, as the community's first local aural service.  A counterproposal was filed by
Broad Spectrum Communications, Inc. ("Broad Spectrum"), requesting the substitution of Channel
235C3 for Channel 243A at Cannon Beach, Oregon, the modification of its license for Station KCBZ
to specify the higher class channel, and the allotment of Channel 242A to Bay City, Oregon, as the
community's first local aural service.  Comments were also filed by the petitioner, reiterating his
intention to apply for Channel 235A at Manzanita, if allotted, and reply comments by the petitioner
and Broad Spectrum.

     2.  Broad Spectrum states if Channel 235C3 is allotted to Cannon Beach, Station KCBZ, the
community's sole local aural service, could provide service to 38,365 persons, while a fully-spaced
Class A station at Cannon Beach could serve only 20,158 persons.  Further, the deletion of Channel
243A from Cannon Beach would enable the allotment of Channel 242A to Bay City, as its first local
aural service.  According to Broad Spectrum, Bay City is an incorporated community with a 1990
U.S. Census population of 1,027 people, while Manzanita has a population of only 513 people.  Bay
City, according to Broad Spectrum, also has a city hall, a post office, a volunteer fire department and
many retail establishments.  In addition, it states that a Class A station at Bay City can provide
service to 21,570 people while a Manzanita allotment could provide service to only 14,622 persons. 
In reply comments, petitioner states that if Channel 242A is allotted to Bay City, it will apply for the
channel.  No comments were received expressing a competing interest for use of Channel 235C3 at
Cannon Beach. 
 
     3.  We believe the public interest would be served by substituting Channel 235C3 for
Channel 243A at Cannon Beach, Oregon, and modifying the license of Station KCBZ accordingly,
since it could provide the community with a wide-coverage area FM service and enable the station
to expand its service area.  We believe the public interest would also be served by allotting Channel
242A to Bay City, Oregon, as the community's first local aural service.  While Manzanita may also
be deserving of a first local aural service, a staff engineering study finds that there are no alternate
channels available to either Manzanita or Bay City.  However, a comparison of the two communities
is not necessary since the petitioner expressed his willingness to apply for Channel 242A, if allotted
to Bay City, and no other party expressed an interest in applying for Channel 235A at Manzanita. 
Therefore, we will dismiss petitioner's proposal to allot Channel 235A to Manzanita.  In accordance
with Section 1.420(g), we will also modify Broad Spectrum's license for Station KVBZ to specify
operation on Channel 235C3 at Cannon Beach.  

     4.  Channel 242A can be allotted to Bay City in compliance with the Commission's minimum
distance separation requirements without the imposition of a site restriction.  Channel 235C3 can be
allotted to Cannon Beach in compliance with the Commission's minimum distance separation
requirements without the imposition of a site restriction.   Canadian concurrence in the allotment
of Channel 242A at Bay City and Channel 235C3 at Cannon Beach has been obtained since both
communities are located within 320 kilometers (200 miles) of the U.S.-Canadian border.

     5.  Accordingly, pursuant to the authority contained in Sections 4(i), 5(c)(1), 303(g) and (r)
and 307(b) of the Communications Act of 1934, as amended, and Sections 0.61, 0.204(b) and 0.283
of the Commission's Rules, IT IS ORDERED, That effective August 2, 1999, the FM Table of
Allotments, Section 73.202(b) of the Commission's Rules, IS AMENDED, with respect to the
communities listed below, to read as follows:

                    City                Channel No.

                    Bay City, Oregon         242A
                    Cannon Beach, Oregon     235C3

     6.  IT IS FURTHER ORDERED, pursuant to Section 316(a) of the Communications Act of
1934, as amended, that the license of Broad Spectrum Communications, Inc., for Station KCBZ,
Cannon Beach, Oregon, IS MODIFIED to specify operation on Channel 235C3, in lieu of Channel
243A, subject to the following conditions:
 
          (a) Within 90 days of the effective date of this Order, the licensee shall submit to the
     Commission a minor change application for a construction permit (Form 301).

          (b) Upon grant of the construction permit, program tests may be conducted in accordance
     with Section 73.1620.

          (c) Nothing contained herein shall be construed to authorize a change in transmitter location
     or to avoid the necessity of filing an environmental assessment pursuant to Section 1.1307
     of the Commission's Rules.

     7.  Pursuant to Commission Rule Section 1.1104(1)(k) and (2)(k), any party seeking a change
of community of license of an FM or television allotment or an upgrade of an existing FM allotment,
if the request is granted, must submit a rule making fee when filing its application to implement the
change in community of license and/or upgrade.  As a result of this proceeding, Broad Spectrum
Communications, Inc., licensee of Station KCBZ, is required to submit a rule making fee in addition
to the fee required for the applications to effect the change in community of license and/or upgrade.

     8.  A filing window for Channel 242A at Bay City, Oregon, will not be opened at this time. 
Instead, the issue of opening a filing window for this channel will be addressed by the Commission
in a subsequent order.  

     9.  IT IS FURTHER ORDERED, That the petition for rule making filed by John L. Zolkoske
to allot Channel 235A to Manzanita, Oregon (RM-9377), IS DISMISSED.

     10.  IT IS FURTHER ORDERED, That this proceeding IS TERMINATED.

     11.  For further information concerning this proceeding, contact Leslie K. Shapiro, Mass
Media Bureau, (202) 418-2180.

                              FEDERAL COMMUNICATIONS COMMISSION




                              John A. Karousos 
                              Chief, Allocations Branch
                              Policy and Rules Division
                              Mass Media Bureau