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ARCHIVED -  Decision CRTC 84-1050

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Decision

Ottawa, 21 December 1984
Decision CRTC 84-1050
Nick Frost, representing a company to be incorporated Kelowna, British Columbia - 840955900
Four Seasons Radio Ltd.Kelowna, British Columbia - 841686900 At a Public Hearing in Vancouver on 30 October 1984, the Commission considered two technically mutually exclusive applications by Nick Frost, representing a company to be incorporated (Nick Frost), and Four Seasons Radio Ltd. (Four Seasons) for a licence to carry on an English-language FM radio station at Kelowna. Both applicants proposed to provide an Easy Listening (Group I) programming service to the 35-and-over age group, which service is not currently available in the Kelowna area.
The applications attracted a great deal of local interest as reflected by the various interventions received in support of a new Easy Listening FM station in Kelowna, where approximately 66% of the population is 35 years of age and over.
The Commission was impressed with both applications and the presentations at the hearing. Each applicant demonstrated sound financial resources, a high level of professional experience, an awareness of FM policy objectives, and a sensitivity to the needs of the Kelowna region.
Four Seasons applied for a joint FM licence. This licensee owns and operates CKIQ, an AM radio station at Kelowna. The proposal by Nick Frost, on the other hand, was for an independent FM licence, since this applicant does not hold a broadcasting licence in Kelowna at this time.
In 1981, the Commission denied a similar application by Nick Frost for an FM station at Kelowna, partly on the grounds that it was not satisfied, based on the evidence before it at that time, that the Kelowna market could support an independent FM station. In April 1984, Nick Frost submitted a new application which provided evidence to support his contention that there is sufficient demand and potential market in Kelowna for the introduction of a new FM service. In June 1984, the Commission issued the call for applications for an FM licence to serve Kelowna (CRTC - Public Notice 1984-148), and subsequently received the competing application by Four Seasons.
The evidence provided by the applicants, and the demand demonstrated by local residents for an Easy Listening FM service satisfies the Commission that the Kelowna market can now support a new FM station.
The Commission recognizes that a broadcaster with an established revenue base in the market may initially have an economic advantage over one who does not own another broadcasting undertaking in the same area. In his case, however, the Commission is convinced that, on balance, the programming proposals contained in the Nick Frost application, including the wider range of music proposed, and the alternative news and programming sources which this applicant would provide to the Kelowna market, outweigh any economic advantage that Four Seasons might possess.
Accordingly, the Commission approves the application by Nick Frost for a broadcasting licence for an English-language FM radio station at Kelowna, on the frequency 101.5 MHz, channel 268C, with an effective radiated power of 11,000 watts. The Commission will issue a licence expiring 30 September 1989, subject to the conditions of licence specified in this decision and in the licence to be issued. This authority will only take effect upon receipt of documentation establishing that the company has been incorporated in accordance with the application in all material respects. The competing application by Four Seasons is denied.
Mr. Nick Frost has extensive experience in FM radio in British Columbia and, as a resident of Kelowna for some twelve years, has been actively involved in radio broadcasting in that community. As a principal shareholder, he will hold a 51% controlling interest in the new company to be incorporated; the remaining 22 shareholders include prominent British Columbia broadcasters and well-known representatives of Kelowna's business community. The Commission considers that the broad diversity of shareholders who have committed their personal resources to the establishment of this company is highly representative of British Columbia. It further notes that a seven-person Board of Directors will be responsible for the day-to-day management of the station which will include Mr. Nick Frost as well as Mr. Clyde Bourassa, an experienced broadcaster and businessman, as full-time employees of the company.
The Commission considers that the licensee's commitment to establish a community advisory board to reflect the interests of Kelowna's residents in the programming plans of the new station is indicative of the licensee's sensitivity to community concerns. The board, which will meet four times per year, will represent many of the community service organizations in the Okanagan region.
The licensee proposes to broadcast approximately 79 hours per week of musical programming, including some 68 hours of Music-General. According to the applicant at least 80% of the Music-General selections will be different from those currently broadcast by other Kelowna stations. The licensee has also committed itself to play 10.5 hours of Music - Traditional and Special Interest per week, including 8 hours of Classical music.
The licensee confirmed at the hearing that the proposed instrumental-vocal music ratio will be 50:50. As an Easy Listening station, the licensee is required, by condition of licence, to ensure that a minimum level of 50% of all musical selections be instrumental. Moreover, the licensee assured the Commission that its commitment to achieve a Canadian content level of 15% for all Music-General selections would be met.
With respect to news programming, the licensee stated that 10 newscasts will be broadcast each day, Monday to Friday, with a total of 5.5 hours per week. Nick Frost emphasized that his staff will research and present news stories with appropriate background information, concentrating on issues of particular relevance to the Kelowna region. The Commission will follow the development of this alternative news voice in Kelowna with interest.
At the hearing, the licensee confirmed that, as stated in its Promise of Performance, 14% of all programming will be in the foreground format, with a combined foreground/mosaic total of 59%. These levels exceed the respective minimum requirements of 12% and 33% for independent FM stations, but the licensee promised that sufficient human and financial resources would be allocated to ensure that these important commitments are adhered to.
With respect to the development, exposure and support of local talent, the Commission notes that the licensee has allocated an annual budget of $6,000 for local music production, including the production of a one-hour, live studio concert each month featuring local and visiting musicians for broadcast on the station. The licensee also proposes to support the Foundation to Aid Canadian Talent on Record (FACTOR), and the Canadian Independent Record Production Association (CIRPA) through the use of its catalogue of Canadian recordings.
The Commission notes the licensee's commitment to provide one hour per week of commercial-free time for programming access by interested community groups, and it expects the licensee to promote the availability of this time on a regular basis. In this regard, the licensee will establish a small, auxiliary studio in Westbank, which is situated across Lake Okanagan from Kelowna, with a view to producing a program in that community approximately once per month.
The Commission acknowledges the intervention presented at the hearing by Mr. Brian Bell, Regional Director of the Central Okanagan District, emphasizing both the need for an Easy Listening (Group I) FM station for the significant "35-and-over" age group in Westbank, and for a studio in this community to accommodate access requirements.
The Commission also appreciates the intervention presented at the hearing in support of the Nick Frost application by Mr. James Brown of Kelowna, who expressed the hopes of many of Kelowna's more senior residents for the establishment of a local Easy Listening FM service.
The Commission further acknowledges the intervention by W. Everitt, President and General Manager of CJIB Radio Vernon, with respect to the development of an FM service in Vernon.
It is a condition of licence that construction of the station be completed and that it be in operation within twelve months of the date of this decision or such further period as the Commission may, upon receipt of a request for extension before the expiry of the said twelve months, deem appropriate under the circumstances.
Fernand Bélisle Secretary General