Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 176]

EXTRACTED TEXT FROM PAGE:

1976]

UNIVERSITY OF ILLINOIS

165

On motion of Mr. Livingston, this recommendation was approved, and authority was given as recommended. Mr. Hahn asked to be recorded as not voting.

Financial Showing and Authorization of Legal Expenses, Cicero Radio Project

(13) On June 18, 1975, and October 15, 1975, the Board of Trustees authorized the filing of an application with the Federal Communications Commission (FCC) for a license for a radio station to operate on 1450 K H z in Cicero, Illinois. The station would provide radio service similar to that provided downstate by the University station WILL since 1922, but designed especially for the community proposed to be served. Projections of initial capital needs, operating costs, and external support were presented to the Trustees at the earlier meetings. The University application to the FCC was accepted for filing, along with seven other applications for the frequency. Prior to setting the applications for hearing, the FCC sent letters to all applicants, identifying deficiencies or special issues in the applications which require responses in advance of hearing in order to define the competitive hearing issues. Only one special issue has been raised with the University •— its financial qualification to be a licensee. (All other applicants must respond to more than one special issue.) The commission must be satisfied that the Board of Trustees has the requisite financial capacity to build and operate the station for one year and that it would have funds available for such purposes if the construction permit and license were granted. If the University satisfactorily responds at this time to the special issue inquiry from FCC, no evidentiary hearing will be required on the point. If the response fails to satisfy the FCC, the question of financial capacity and responsibility will become an issue to be determined in an adversary hearing on the applications. The appropriate costs for this project ultimately will be built into the University's budget according to the projections supplied in June 1975 (although the need for funds may in fact be delayed longer than originally expected), with no change in the estimated amount of federal and listener support. The University's application is the only one for a public broadcasting station and the only one to offer a new and distinctive program service. What is now required is a. showing of financial capability. The following resolution is intended to meet the special issue and reiterates the University's intention to seek appropriations and gift funds for construction and first-year operations. In addition, it identifies fundsin the University treasury which would be eligible for application to the project if the gifts and appropriations are not forthcoming. Further authorization of legal expenses in connection with the prosecution of the application is also required at this time. Under FCC procedures, the applications will be set for hearing, at which time a quasijudicial adversary proceeding will be held to determine which of the applicants would best serve "the public interest, convenience, and necessity" and should be granted the construction, permit and license. Additional legal services will be required under the University's contract with the Washington firm of Dow, Lohnes, and Albertson at a cost estimated to range from $20,000 to $50,000, depending on the length and complexity of the proceedings. Authority is requested to incur these additional expenditures for the continued prosecution of the application. Accordingly, the President of the University, with the concurrence of the appropriate administrative officers, recommends authorization of the foregoing expenditures for further prosecution of the application and the adoption of the following resolution.