Ruling

Denied as immaterial to this decision. The effects of
the television stations' signals are based upon meas-
ured fields. See par. 9 of this decision.
Granted. The words "10 GHz" in the last line of par.
38 of the initial decision are changed to "1 GHz",
and the words "11 GHz" in the first sentence of
par. 9 of the conclusions are changed to "1 GHz”.
Denied as immaterial. The measured fields on which
reliance has been placed in this decision (par. 9)
adequately reflect the propagation conditions of
Table Mountain.

Denied as immaterial. Moreover, the finding objected
to is sufficiently supported by the record as corrected.
Denied as not being of decisional significance.
Denied. See pars. 23 through 27 of this decision.
Denied. The record supports the finding.

Granted to the extent that the last sentence of par. 56
is deleted. However, see pars. 28 and 29 of this
decision concerning the evidence elicited regarding
sites.

Denied. See ruling on Shaffer's exceptions 1, 2, 3, 9, 10, and 11.

David S. Stevens on behalf of Russel Shaffer; David H. Lloyd, Reed Miller and Karl Anuta on behalf of International Electronic Development Corp.; Donald M. Malone on behalf of Environmental Science Services Administration, Department of Commerce; and Leo I. George and Edward J. Reilly on behalf of the Broadcast Bureau, Federal Communications Commission.

INITIAL DECISION OF HEARING EXAMINER MILLARD F. FRENCH

(Issued April 2, 1968)

PRELIMINARY STATEMENT

1. This proceeding involves the mutually exclusive applications of Russel Shaffer (hereinafter Shaffer) and International Electronics Development Corp. (hereinafter IEDC) for a construction permit for a new class C FM broadcast station to operate on channel 234 (94.7 MHz) in Boulder, Colo. By Commission order released December 6, 1966 these applications were designated for consolidated hearing upon the following issues:

1. To determine which of the proposals would better serve the public interest; 2. To determine, in the light of the evidence adduced pursuant to the foregoing issue, which of the applications for construction permit should be granted. The order of designation provided that, in view of the difference in the areas and populations to be served by the two proposals, the areas and populations within the respective 1 mv./m. contours together with the availability of other FM services of at least 1 mv./m. in such area, would be considered under the standard comparative issue.

2. On January 9, 1967, the Environmental Science Services Administration, Department of Commerce (hereinafter ESSA), filed a petition to intervene in the instant proceeding. By order of the examiner released January 24, 1967, ESSA's petition to intervene was granted on the condition that an issue or issues be added relating to what interference may or may not be caused to its Table Mountain facility at Boulder, Colo.

3. On February 24, 1967, ESSA filed a motion to enlarge issues and on May 2, 1967, the Review Board released a memorandum opinion and order granting ESSA's motion and adding the following issue:

To determine whether the proposals of Russel Shaffer and International Electronic Development Corp. would cause interference to the operation of the Environmental Science Services Administration's facilities at Table Mountain. Colo.; and if so, whether such interference would impair the usefulness of that facility. The Review Board assigned to ESSA the burden of proceeding with the introduction of evidence under the above issue, and assigned the burden of proof to the applicants for their respective proposals.

4. A prehearing conference was held on January 6, 1967 and evidentiary hearings were held on June 13, 14, 15, 16, July 24, 25, 26, September 8, and November 9, 1967, on which date the record was closed.

FINDINGS OF FACT

5. Shaffer proposes to operate with an effective radiated power of 30 kw. and antenna height above average terrain of 69 feet, while IEDC proposes an effective radiated power of 60 kw. and antenna height above average terrain of 961 feet. The proposed transmitter site of Shaffer is located about 5.5 miles southeast of the center of Boulder, and that of IEDC approximately 5.5 miles northwest of the center of Boulder and about 11 miles northwest of Shaffer's proposed site.

6. Boulder, the principal community and seat of Boulder County, is located about 25 miles northwest of Denver. AM station KBOL (1490 kHz 1 kw./0.25 kw., U, class IV) and FM station KRNW (97.3 MHz, class C, ERP 2 kw., HAAT minus 750 feet) are the only broadcast facilities presently authorized to operate in Boulder. According to the 1960 U.S. Census, Boulder had a population of 37,718 persons and Boulder County had a population of 74,254 persons. The city is not part of any urbanized area.

Russel W. Shaffer

THE APPLICANTS

7. Russel W. Shaffer, an individual applicant, was born May 6, 1913, in Wichita, Kans. He graduated from the University of Wichita in 1935 with a major in journalism, and worked for the Wichita Beacon and the Wichita Eagle Press before entering the broadcast field in 1937 when he joined radio station KANS in Wichita. He worked in the sales department at KANS until April, 1943, when he was commissioned as an Ensign in the U.S. Naval Reserve. After returning to the States in October, 1945, he joined the sales staff of KGO in San Francisco and the ABC network. He came to Boulder, Colo., in December, 1946, to help establish radio station KBOL where he was sales manager and held a minority interest in the station. In 1953 he bought control of KBOL and has operated it as president and general manager since that time, but the exact amount of his control is not shown in the record.

8. Under Shaffer's guidance, KBOL won the Associated Press Radio-Television Award in Colorado for outstanding broadcast journalism in 1962, 1963, 1964, and 1965. In 1964 KBOL won the Associated Press Award for spot news coverage of a single news event. In 1964 Shaffer and his wife (who presents a daily program on KBOL) reported both national political conventions in person for KBOL listeners. They propose to cover the 1968 conventions in the same manner. KBOL has been a member of the NAB since its founding and has subscribed to the Radio Code since its inception.

9. Mr. Shaffer is now serving a second 3-year term as a director of the Boulder Chamber of Commerce; is a past president of the Boulder Lions Club; is a member of the board of directors of the YMCA; is on the steering committee for "Boulder Tomorrow"-a long range project to renovate the Boulder core area; is a director of the Boulder Junior Achievement program; has served as president of the Colorado Broadcasters Association and is a charter member of that organization. In 1967 Shaffer served as moderator for the "Boulder Evening Classes Public Affairs Education Forum" for 4 weeks.

10. Except for KBOL, Shaffer's only other business interest is as a partner in a small background music operation. He will devote his entire time and energy to the operation of KBOL-AM and FM in Boulder.

International Electronic Development Corp.

11. IEDC was organized under the laws of Colorado on October 19, 1965. The corporation is authorized to issue 149,999 shares of common stock with a par value of $1 per share. At present, 13,300 shares have been issued and paid for, 67,000 shares have been subscribed to and there are options outstanding to purchase an additional 49,700 shares. These shares are owned or under option in the following manner and amounts:

12. The first five shareholders, McGrath, George E. Bailey, Breyfogle III, Anuta, and Tidrick, will constitute the operating group of the station. The options held by four members of this operating group entitle them to purchase additional shares at $1 per share any time before November 10, 1975. Each individual holding an option has expressed his unequivocal intent to exercise it. Since all options will

be exercised, the operating group will eventually own 76.91 percent of the shares in the station. In the event that none of the options is exercised, the operating group will hold 62.64 percent of the shares. The investor group, constituting George P. Bailey, Mr. and Mrs. Brey fogle, Jr., and Mr. Gaul, are all parents or the father-in-law of various of the principal operators. None of IEDC's shareholders has an interest in any other broadcast station, however, IEDC is an applicant for a UHF television station in Boulder, Colo.

13. Roger D. McGrath was born June 2, 1938, in Lake City, Calhoun County, Iowa. He graduated from the Lohrville Consolidated School in May 1956, and accepted employment with radio station KAYL and KAYL-FM, Storm Lake, Iowa, as a transmitter-audio engineer. In September of 1956, Mr. McGrath entered Buena Vista College in Storm Lake, Iowa, in a preengineering course, but left college in 1957 to start his own electronics business in Rockwell City, Iowa. In March of 1959 Mr. McGrath moved to Boulder to open a combination wholesale-retail electronic store and service shop. In addition to the operation of McGrath Electronics, Mr. McGrath has been employed and presently accepts part-time employment in various construction fields and in the motion picture industry.

14. Mr. McGrath will serve as the station's president and general manager and will terminate his present business activities so as to devote full time to the station's affairs. As general manager, he will be responsible for coordinating the purchase of equipment and supervising the construction of the station. He will oversee programing, sales, and all other aspects of corporate and station activity. Mr. McGrath will participate directly in the broadcasting activities of the station by acting as an engineer and an announcer, and will devote at least 8 hours per day to the station's broadcasting activities.

15. In June of 1956, Mr. McGrath became a senior member of the Civil Air Patrol in Storm Lake, Iowa, and served as radio officer for the squadron and as electronics instructor for the squadron's communications and radio engineering classes. Mr. McGrath was an organizer of the Civil Air Patrol in Boulder and has served as State radio officer under the Colorado Office of Civil Defense. Mr. McGrath is a member and past president of the Boulder Amateur Radio Club and a member of the U.S. Air Force MARS program. He is presently manager of Colorado Net 6L3 serving the MARS program. He assisted in organizing the Rocky Mountain VHF Society, an organization engaged in experimentation in VHF and UHF regions of the radio spectrum, and was this society's first president. He is captain of the Voluntary Cherryvale Fire Department and a member of the First Methodist Church of Boulder.

16. George E. Bailey was born in Denver, Colo., on October 28, 1933. After graduation from Lakewood (Colo.) High School in 1951, he entered the University of Colorado in Boulder. He served in the U.S. Army for a brief period and returned to the university in 1955. In 1959 he transferred to Colorado College from which he was graduated in 1961.

17. Since assuming residence in Boulder in 1961, Mr. Bailey has been involved in the business community through real estate owner