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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Amendment of Section 73.202(b), ) MM Docket No. 98-123 Table of Allotments, ) RM-9291 FM Broadcast Stations. ) (Marysville and Hilliard, Ohio) ) REPORT AND ORDER (Proceeding Terminated) Adopted: October 20, 1999 Released: October 29, 1999 By the Chief, Allocations Branch: 1. At the request of Citicasters Co. ("petitioner"), the Commission has before it the Notice of Proposed Rule Making, 13 FCC Rcd 13300 (1998), proposing the reallotment of Channel 289A from Marysville to Hilliard, Ohio, as the community's first local aural service, and the modification of Station WZAZ-FM (formerly WKFX) to specify Hilliard as its community of license. Comments and reply comments were filed by the petitioner, Ingleside Radio, Inc. ("Ingleside"), licensee of FM Station WWCD, Grove City, Ohio, and jointly by North American Broadcasting Co., Inc., licensee of Stations WMNI(AM) and WBZX(FM), Columbus, Ohio, WCLT Radio Incorporated, licensee of Station WCLT(AM)-FM, Newark, Ohio, Franklin Communications, Inc., licensee of Stations WVKO(AM) and WSNY(FM), and Scantland Broadcasting, Ltd., licensee of FM Stations WJZA, Lancaster, Ohio, and WZJZ, Richwood, Ohio ("North American, et al."). 2. As stated in the Notice, petitioner seeks to change Station WZAZ-FM's community of license from Marysville to Hilliard, Ohio, pursuant to the provisions of Section 1.420(i) of the Commission's Rules. The allotment of Channel 289A to Hilliard could provide the community with its first local aural service while Marysville would retain local aural service from fulltime AM Station WUCO. While we did not question Hilliard's status as a community for allotment purposes, we noted that Hilliard is located within the Columbus Urbanized Area. Therefore, even though, as a Class A, Station WZAZ-FM would cover less than 50% of the Urbanized Area, the petitioner was requested to provide information sufficient to find that Hilliard is independent of the Urbanized Area and thus entitled to a first local service preference using the factors enumerated in RKO General ("KFRC"), 5 FCC Rcd 3222 (1990) and Faye and Richard Tuck ("Tuck"), 3 FCC Rcd 5374 (1988). In addition, petitioner was requested to provide more specific data regarding the areas and populations which would gain and lose service if Channel 289A were allotted to Hilliard. 3. In response, petitioner reiterates that Hilliard, an incorporated community with a 1990 U.S. Census population of 11,796 persons, has its own government, with a mayor and city council. Further, it demonstrates that Hilliard provides its residents with such municipal services as police, library, elementary through high schools, community and senior centers, and municipal parks and pools. In addition, Hilliard has numerous religious institutions, civic organizations, such as the Hilliard Athletic boosters, Hilliard Arts Council, Hilliard Garden Club, Hilliard Area Women's Club, Hilliard Jaycees, Hilliard Optimist Club, Hilliard Kiwanis Club, American Legion, Moose Lodge and American Legion. The city also has its own Convention and Visitors Bureau, and Chamber of Commerce. Petitioner also provides information showing that numerous businesses are located within Hilliard, such as CompuServe, Inc., Red Roof Inns, Gates McDonald & Company, Novus/Discover Card Services, Inc., Honda of America Mfg., Inc., NCS Health Care, more than forty restaurants, and dozens of retailers and local service providers. Hilliard also has two local weekly newspapers, Hilliard Northwest News and Hilliard This Week. Petitioner also argues that Hilliard should receive a first local service preference since less than half of the Columbus Urbanized Area will be within Station WZAZ-FM's 70 dBu contour, citing in support Parker and Port St. Joe, Florida, 11 FCC Rcd 1095 (1995) (approving reallotment that would have resulted in signal encompassing 30% of Urbanized Area), and Arcadia and Fort Meade, Florida, 13 FCC Rcd 2989 (1998) (allotment would not be deemed to serve Urbanized Area unless it would serve at least 50% of Urbanized Area with a 70 dBu signal). In addition, petitioner points out that Hilliard is physically separated from Columbus by the Scioto River and lies predominantly outside of Columbus' "outerbelt" which circles Columbus and its immediate suburbs. Petitioner states that the public interest would be served by the reallotment since it would result in the larger community of Hilliard having the same number of local transmission services as Marysville (1990 U.S. population, 9,656), citing in support Douglas, Tifton and Unionville, Georgia, 12 FCC Rcd 1280 (1997) (upgrading and reallotting channel would equalize the number of transmission services between larger and smaller communities). 4. Petitioner states that the reallotment of Channel 289A to Hilliard would also enable Station WZAZ-FM to serve 968,753 people, which represents a gain of approximately 470,000 people over its present 498,569 people. Further, it states that the reallotment of Station WZAZ-FM would not deprive Marysville of its sole local service and both the gain and loss areas will continue to be well-served with five or more fulltime reception services. In fact, petitioner states that 95% of the people residing within Station WZAZ-FM's present 60 dBu contour will remain within the station's Hilliard 60 dBu contour. 5. Ingleside, in its opposition to the reallotment, states that both Grove City and Hilliard are suburbs of Columbus and within the Urbanized Area. It states that Station WZAZ-FM's present community of license, Marysville, is located approximately 30 miles from downtown Columbus and outside both the Urbanized Area and Metropolitan Statistical Area while Hilliard is only five miles from downtown Columbus and contiguous to it. Ingleside argues that while the provision of a first local service to Hilliard is "superficially" of interest, the reallotment would be contrary to FCC precedent. It states that the Commission, in adopting the change of community rules, set forth its concern over stations seeking to move from rural to urban communities and stated that a first local service preference would not be given blindly. Applying this policy to the present situation, according to Ingleside, mandates that Hilliard not be given a first local service preference but rather credited with all fifteen (six AM and nine FM) stations licensed to communities in the Columbus Urbanized Area. Ingleside states that on November 26, 1997, Citicasters, which had only recently become the licensee of Station WZAZ-FM, filed a petition for rule making (RM-9207) to reallot the station to Hilliard. That rule making was dismissed on technical grounds on May 1, 1998. At the same time, Citicasters, which is the parent of Jacor Broadcasting Corporation, proposed to buy two of the three top rated FM stations in the Columbus market from Nationwide Communications, Inc. This acquisition was reviewed by the Antitrust Division of the U.S. Department of Justice and, as a condition of approval, Citicasters was required to sell four of its seven other radio stations in the market. Given the already strong presence of Citicasters in Columbus, Ingleside says that it is not in the public interest to approve the move-in of the only FM channel allotted to the "rural and distant" community of Marysville. Ingleside also requests that the Commission conduct the same analysis of the ownership concentration in the Columbus market as it stated it intended to do with respect to the acquisition by Citicasters/Jacor of Stations WCKY, Cincinnati, WSAI, Cincinnati, and WAQZ(FM) (now WKFS), Milford, Ohio, and find that the reallotment is not in the public interest. 6. North American, et al. also oppose the reallotment. They argue that the effect of reallotting Channel 289A to Hilliard would only result in the addition of another station to the already crowded Columbus market while leaving Marysville, the seat of Union County, with only a 500 watt AM station for local aural service and all of Union County with only two local radio stations. They submit that if the petitioner believes that Hilliard needs its own local aural service, it should seek to have one of the nine radio stations it either already owns or proposes to own in the Columbus market reallotted to Hilliard. They contend that this action would better serve the public interest since it would retain a first local competitive service in Marysville and three services within Union County. North American also argues that the reallotment would violate the purpose behind the Table of FM Allotments. They state that the Table was adopted largely to assure compliance with the requirements of Section 307(b), citing, for example, Revision of FM Broadcast Rules, 40 FCC 747 (1967), and that they Commission developed a number of policies to discourage the reallotment of channels from smaller rural communities to already well-served community in or adjacent to large metropolitan areas. These policies, however, were abandoned in 1983 based on the belief that the threat of a comparative license renewal challenge would serve as an adequate safeguard against violations of Section 307(b). Suburban Community Policy, Berwick Policy and De Facto Reallocation Policy ("Suburban Community Policy"), 93 FCC 2d 436 (1983). In its place, the Commission substituted the generic test set forth in RKO General ("KFRC"), 5 FCC Rcd 3222 (1990) and Faye and Richard Tuck ("Tuck"), 3 FCC Rcd 5374 (1988), according to North American, et al. However, it argues that with the elimination of renewal challenges by Congress in the Telecommunications Act of 1996, no equivalent device has been imposed to replace it. Therefore, it argues that the Commission cannot "blindly" cite the Suburban Community Policy and its progeny without first addressing the fact that we currently lack any apparent mechanism for assuring compliance with Section 307(b). Like Ingleside, North American also raises the fact that the Department of Justice previously reached a settlement with Jacor limiting its ownership of Columbus stations. Therefore, it submits that in order for petitioner's commitment to apply for Channel 289A, if reallotted to Hilliard, to be valid, the Commission should require a petitioner to obtain written confirmation from an appropriate official of the Department of Justice expressing stating the Departments familiarity with and concurrence in the reallotment. 7. In reply comments, North American reiterates the arguments propounded in its comments. Ingleside contends that the petitioner has failed to establish Hilliard as a separate community from Columbus. It states that the City of Hilliard officials, in their City Profile, describe the community as a "thriving suburban community. . ." While acknowledging that the Franklin County Fairgrounds are in Hilliard, it maintains that Columbus is the seat of Franklin County and provides community services for Hilliard. Specifically, it states that the residents of Hilliard receive library service from a branch of the Columbus Public Library and water and sewer service is provided by the Columbus Division of Water. Hilliard does not have its own local telephone book, but rather is listed in the Columbus directory. While petitioner provides a list of thirty-one Hilliard churches, Ingleside states that three of them are located in Columbus and another six do not have Hilliard addresses. As to the listing of community restaurants, Ingleside states that sixteen (22%) have a Columbus zip code (43204, 43228) and the restaurants listed as being in the "South Hilliard area" are primarily located in Columbus. Further, Ingleside states that Columbus and Hilliard are contiguous, with the Scioto River flowing between Columbus and Hilliard as well as meandering through Columbus, including its downtown area. Additionally, it states that there a number of ways to reach Hilliard, including two four lane bridges, as well as from Interstates 70 and 270. Finally, it states that petitioner implicitly concedes that Hilliard is a suburb of Columbus with its claim that it is deserving of a local aural transmission service because four other communities within the Columbus Urbanized Area do. If the Hilliard allotment did not require the removal of Marysville's sole local FM service, Ingleside says that the proposal could have some weight. However, since this is not the case, it argues that the Hilliard allotment must be considered as a 17th service to Columbus. 8. Petitioner, in its reply comments, submits that the opposition to the proposal appears to be only an attempt by Columbus-area radio licensees to protect their stations and revenue from additional competition. It contends that neither Ingleside nor North American, et al. have disputed that Hilliard is an independent community with its own commercial businesses, government, historical district and social, religious and medical services. Further, it argues that the independence of Hilliard from Columbus is confirmed using the eight criteria which the Commission uses to demonstrate the independence or interdependence of a community from an Urbanized Area. Petitioner states that Hilliard has long had its own local government, with a mayor and city council, as well as police, recreation and parks, building, engineering, finance, service, tax and zoning departments. Hilliard has its own local schools and health facilities, as well as numerous businesses which employ approximately 15,000 people, two weekly newspapers, its own zip code and many churches. It also states that both Marysville and Hilliard are located in the Columbus DMA and thus are considered as sharing the same advertising market. Petitioner states that the opponents incorrectly characterize the reason that the Commission replaced the Suburban Community Policy, supra, as being unnecessary in light of the threat of a comparative renewal challenge. Rather, petitioner states that the Commission found the policies to be anti-competitive in that entry into these unserved suburban communities was inhibited because of increased costs to the applicants, delays in processing the applications and the fact that it provided incumbent stations with a means to delay competition from new suburban stations. Petitioner goes on that the Commission stated that it no longer believed that there was a substantial likelihood that these suburban stations would provide inadequate service to their community of license just because of the close proximity to the larger urban area. It contends that the opposition to its instant proposal, which would more efficiently use the broadcast spectrum by providing Hilliard with its first local transmission service and by providing an additional broadcast service to hundreds of thousands of people without creating any unserved or underserved areas, illustrates the reason why the Commission eliminated the Suburban Community Policy. Regardless, petitioner states that this proceeding, which concerns only the need of one community for local transmission service, is not the proper forum to seek reinstitution or reconsideration of the Suburban Community Policy. Finally, petitioner disputes that the reallotment of Station WZAZ-FM from Marysville to Hilliard would result in Citicasters having a greater presence in the Columbus area than approved by the Department of Justice's Antitrust Division. It states that Citicasters now owns only five radio stations, three FM and two AM, in the Columbus market, which is consistent with the Commission's local ownership standards. Further, petitioner points out that the Department of Justice was fully informed of the proposal to relocate Station WZAZ-FM prior to its approval of the acquisition of stations owned by Nationwide Mutual Insurance Company and, based on Commission precedent, petitioner's belief that the proposal would be approved. While the Justice Department approval of the Nationwide acquisition was conditioned on the divestiture of several Columbus-area radio stations, petitioner states that it was not required to divest itself of Station WZAZ-FM or withdraw the change of community petition. Rather, petitioner states that it accepted the Justice Department's conditions in part because it could continue to own the station and pursue the change in community. Therefore, it requests that the Commission approve the reallotment of Channel 289A to Hilliard as it will enable the community to receive its first local aural service and enable Station WZAZ-FM to provide a new broadcast service to more than 470,000 additional people while continuing to serve 94% of its existing audience. 9. Based on the record before us, we find that the public interest would be served by reallotting Channel 289A from Marysville to Hilliard, Ohio, as the community's first local aural service. We do not find that the arguments presented by Ingleside and North American, et al., concerning ownership concentration by Citicasters in the Columbus market to be persuasive. As stated, and unrefuted by the opponents in this proceeding, the Antitrust Division of the Department of Justice was informed by the petitioner as to its intentions to seek the reallotment of Station WZAZ-FM from Marysville to Hilliard when it reviewed and approved the purchase of Columbus area stations from Nationwide. These acquisitions were also approved by the Commission, after the filing of the instant rule making petition, and have now been consummated. We do not believe that either Ingleside or North American, et al., have presented any facts or arguments which persuade us to revisit this ownership issue. 10. As indicated in the Notice, Hilliard is located within the Columbus Urbanized Area. Therefore, we have used the criteria set forth in Tuck and KFRC, supra, as a guideline in determining whether to attribute the Columbus transmission services to Hilliard. These criteria are--the degree to which the Hilliard station would provide coverage to Columbus in addition to its community of license, the size and proximity of Hilliard relative to that of Columbus, and the interdependence of Hilliard with Columbus. 11. With respect to signal coverage, Station WZAZ-FM, as licensed to Marysville, covers 8.2% of the Columbus Urbanized Area but would cover 39.4% as a Hilliard station. The reallotment of Channel 289A to Hilliard would result in a population gain of 461,451 people and a loss of service to 13,697 people. Both the loss and gain areas are completely served by at least five fulltime reception services and thus are considered to be well-served. As to size and proximity, Hilliard has a population of 11,796 persons and Columbus has a population of 632,270 persons. 12. With respect to the third factor, interdependence, we find that Hilliard is sufficiently independent from Columbus to warrant a first local service. Hilliard is an incorporated community with its own elected officials. The government provides the residents with numerous services such as, but not limited to, a fulltime police department, elementary through high schools, community and senior centers, and municipal parks and pools. Hilliard also has numerous businesses, religious organizations and civic organizations which identify themselves with the community, as well as local health facilities. Hilliard also has two local weekly newspapers. We recognize that Hilliard does not have its own local telephone book but rather is listed in the Columbus directory and that library, water and sewer services are provided by Columbus. 13. Based on the above information, we find that factor two, that is, the size and proximity of Hilliard to Columbus, appears to favor attributing the Columbus Urbanized Area stations to Hilliard. However, factor one, population coverage, and factor three, interdependence with the Urbanized Area, support a finding of not attributing the Urbanized Area aural services to Hilliard. With respect to factors one and two, the Commission in Tuck, supra, stated that the signal population coverage and size and proximity issues are pertinent but less significant than evidence of independence. Therefore, we conclude that Hilliard is sufficiently independent of the Columbus Urbanized Area and will not attribute the community with the aural services licensed to the Urbanized Area. We also find that the allotment of Channel 289A to Hilliard will result in a preferential arrangement of allotments in that it will further priority (3), first local aural service, while the retention of the channel at Marysville falls under priority (4), other public interest matters, since Marysville receives local service from AM Station WUCO. 14. Channel 289A can be allotted to Hilliard in compliance with the Commission's minimum distance separation requirements with a site restriction of 2.8 kilometers (1.8 miles) northeast to accommodate petitioner's desired transmitter site. Concurrence in the allotment by the Canadian Government has been received since Hilliard is located within 320 kilometers (200 miles) of the U.S.- Canadian border. 15. 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 December 13, 1999, the FM Table of Allotments, Section 73.202(b) of the Commission's Rules, IS AMENDED, with respect to the community listed below, to read as follows: City Channel No. Hilliard, Ohio 289A Marysville, Ohio -- 16. IT IS FURTHER ORDERED, pursuant to Section 316(a) of the Communications Act of 1934, as amended, that the license of Citicasters Co. for Station WZAZ-FM, Channel 289A, IS MODIFIED to specify Hilliard, Ohio, in lieu of Marysville, Ohio, 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. 17. 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, Citicasters Co., licensee of Station WZAZ-FM, 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. 18. IT IS FURTHER ORDERED, That this proceeding IS TERMINATED. 19. 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