ARCHIVED - Broadcasting Commission Letter addressed to Jamie Hill (Aboriginal Voices Radio Inc.)

Ottawa, 6 February 2015

Jamie Hill, President
Aboriginal Voices Radio Inc.
426 Fourth Line Rd.
Ohsweken, Ontario
N0A 1M0

By email: avrjamie@gmail.com

Licence renewal applications:

2014-0960-8 for CKAV-FM Toronto, ON
2014-0959-0 for CKAV-FM-2 Vancouver, BC
2014-0957-4 for CKAV-FM-3 Calgary, AB
2014-0955-8 for CKAV-FM-4 Edmonton, AB
2014-0956-6 for CKAV-FM-9 Ottawa, ON

Dear Mr. Hill,

In order to pursue the analysis of your above-mentioned applications, please answer the following questions:

Off-air

1. Commission staff has become aware that CKAV-FM-9 Ottawa may currently be off-air.

   It is important to note that both Industry Canada and the Canadian Radio-television and Telecommunications Commission (the Commission) must be informed in the event that a radio station goes off air. Further, Commission staff notes that being off the air does not represent the best use of scarce public radio frequencies, and does not fulfill the objectives of the Broadcasting Act, and results in an absence of service to the market(s) that you are licenced to serve. As a result, this is a very serious matter for the Commission.

   In light of the above, please provide the following information for CKAV-FM-9 Ottawa, and for any other AVR stations that are currently off air, or have been off air at any point during the current licence term:

   1. Are any other AVR stations currently off-air? Or, were any other AVR stations off air during any period during the current licence term? If so, which ones?
   2. What is the date that CKAV-FM-9 (and any other station, if applicable) ceased broadcasting?
   3. What are the circumstances that led to the off-air status of the station(s)?
   4. What steps are currently being taken (or were taken) to resume broadcasting on each of the stations that are (were) off-air?
   5. What is the date by which each station currently off air will resume broadcasting?

Programming

Level of programming

2. In section 2.1 of the application form, you noted that each of the above-noted stations would broadcast 126 hours of programming in each broadcast week. In section 2.2, you noted that each station would broadcast 31 hours and 30 minutes of local programming and in section 2.3 of the application form, you did not specify an amount of programming that would originate from another source (i.e. is not considered to be “local programming”

   Based on a broadcast week of 126 hours, there would be 94 hours and 30 minutes of additional broadcasting taking place on each of the above-noted stations.

   In light of the above

   Please specify the source of this additional 94 hours and 30 minutes of programming.

Local presence and local programming

3. In your annual update on the achievement of its business objectives submitted to the Commission in November 2013 (the 2013 report), as required by condition of licence 9, you noted that AVR had vacated its offices in Vancouver and Ottawa in order to reduce expenses.

   Commission staff notes that, as set out in Broadcasting Decision CRTC 2012-653, AVR is expected to “maintain its studio presence in the five markets served by its stations, and expects these studios to be accessible to individuals providing programming on those stations.” As noted in that decision, the Commission noted that it considers it important that AVR maintain a presence in the markets it serves.

   In light of this, please provide the following information:

   1. Which of the markets served by AVR currently have a studio presence?
   2. For each market that does not have a studio presence, when was the studio closed?
   3. How has AVR served each of the markets it is licenced to serve without a local studio presence?
   4. What are your plans related to the re-establishment of local studios in those markets?
4. In your 2013 report, you noted that that AVR has postponed the contracting of a local person in each market to lead local programming in anticipation of reduced revenues.

   Commission staff notes that AVR currently has a condition of licence requiring a minimum of 25% of its weekly broadcast schedule to the broadcast of local programming. Further staff notes that local programming is vital part of serving each of the markets AVR is licenced to operate in, and the absence of local programming results in a significant lack of service to these markets.

   However, Commission staff notes that, in AVR’s annual update on the achievement of its business objectives submitted to the Commission in December 2014 (the 2014 report), you noted that you started adding daily traffic and weather reports to drive times, but did not specify on which of AVR’s station(s) these reports would be added.

   Further, Commission staff notes the 2014 report indicates that 9 employees were laid off in 2014, many of which were responsible for the operations of the stations, leaving 5 employees to oversee the operations of all 5 of AVR’s stations.

   Finally, as noted in question 2, above, the renewal application forms for each of the 5 stations noted that 31 hours and 30 minutes of local programming, which corresponds to the 25% weekly local programming condition of licence (COL) would be broadcast in each broadcast week on each station.

   In light of all of the above:

   1. How does AVR propose to provide the 31 hours and 30 minutes of local programming on each of the 5 stations, as indicated in the application form, in light of the reduction in staff and the delay in contracting of local people to provide local programming in each of the 5 markets?
   2. What are your short- and long-terms plans related to maintaining your local programming COL for each of the 5 stations, and are these plans conditional on the hiring of additional staff?
   3. You have referred to having added daily traffic and weather reports. When did this occur, and on which stations?
   4. Since the start of your current licence term, has each of your stations been in compliance with the weekly 25% local programming COL?

Marketing, financial operations and funding

5. For each of AVR’s five stations, please provide five year financial projections by completing the following table for each 12-month period ending 31 August of the proposed license term. Please ensure to provide, for each station, a detailed listing of all supporting financial assumptions and calculations, including but not limited to advertising and non-advertising revenues, staffing levels and salaries, and other significant details.

   	Year 1	Year 2	Year 3	Year 4	Year 5	TOTAL
   REVENUE (after agency commissions) ($000)
   National
   Local
   Other (specify)
   TOTAL
   OPERATING EXPENSES ($000)
   Programming
   Canadian Content Development
   Technical
   Sales, Advertising and Promotion
   Administration and General
   TOTAL
   NON-OPERATING EXPENSES ($000)
   Depreciation
   Profit Before Interest and Taxes
   Interest
   Other (specify)
   TOTAL NON-OPERATING EXPENSES
   TOTAL EXPENSES
   Estimated pre-tax income (loss)
   Provision for income tax
   Net income (loss) after taxes (for broadcasting operations only)

6. Please provide a detailed breakdown of marketing strategies for each market and for each licensed station and elaborate on how you intend to achieve your objectives for the proposed licence term.
7. Please provide any markets research studies conducted or commissioned that support the marketing strategies you intend to implement to achieve your objectives.
8. Please discuss the extent to which AVR has access to alternate sources of funding other than advertising revenues. In the event that grants or financing is to be provided, specify the amounts as well as the individual sources.

Apparent non-compliance

Program monitoring

Apparent non-compliance with the Radio Regulations, 1986 (the Regulations)

9. According to section 9(4)(b) of the Regulations, “At the request of the Commission, a licensee shall respond to ...any request for information regarding the licensee’s adherence to the conditions of its licence, the Act, these Regulations, industry standards, practices or codes or any other self-regulatory mechanism of the industry.”

   In a letter dated 2 June 2014, Commission staff requested that AVR submit monitoring materials and other information for the broadcast week of 25 to 31 May 2014, regarding the licensee’s adherence to the conditions of its licence, in accordance with sections 8(4), 8(6), 9(3)(a) and (b) of the Regulations. These materials were requested to be received by 18 July 2014.

   However, Commission staff notes that the requested materials were submitted on 29 September 2014, and on 6 October 2014 in the case of the audio recordings, some 2½ months after these were due.

   In light of all of the above:

   1. Indicate whether the licensee accepts that this represents non-compliance with sections 8(4), 8(6), 9(3)(a) and (b), and 9(4)(b) of the Regulations.
   2. Please explain the circumstances surrounding the late submission of the requested monitoring materials and other information requested by Commission staff.
   3. Please specify what measures have been or will be put in place to ensure future compliance with sections 8(4), 8(6), 9(3)(a), 9(3)(b) and 9(4)(b) of the Regulations.
10. Further, according to section 8(4) of the Regulations, “A licensee shall furnish, to the Commission on request, its program log or machine readable record for any day, with a certificate by or on behalf of the licensee attesting to the accuracy of its content.” 

    Commission staff notes that AVR submitted certain monitoring documents for the requested broadcast week (all program logs and local programming blocks) in Notepad format; a format that Commission staff was unable to read. After considerable time and effort, Commission staff was able to convert the Notepad files to Excel documents. These converted Excel documents, as well as all the other documents submitted by AVR as Excel spreadsheets then required re-formatting so they could be printed and read.

    In light of the above:

    1. Indicate whether the licensee accepts that this represents non-compliance with section 8(4) of the Regulations.
    2. Please explain why the program logs and other written material that was requested to be submitted for all stations was sent by AVR in the format provided, and how the licensee considers that this was a readable format.
    3. Please specify what measures have been or will be put in place to ensure future compliance with section 8(4) of the Regulations.
11. Additionally, according section 8(6) of the Regulations, “Where ... the Commission requests from the licensee a clear and intelligible tape recording or other exact copy of matter broadcast, the licensee shall furnish it to the Commission forthwith.”

    Commission staff notes that all audio recordings for all five AVR stations were missing portions of its audio recordings for the requested period of 25 to 31 May 2014:

    • For Toronto: 40 minutes were missing (28 May 2014, 16:20 – 17:00);
    • For Vancouver: 6 hours missing (25 – 30 May 2014, 23:00-23:59);
    • For Calgary: 7 hours missing (25 – 31 May 2014, 23:00-23:59);
    • For Edmonton: 9 hours missing (26 May and 28 to 30 May 2014, 23:00-23:59; also 27 May 2014, 12:00-16:59)
    • For Ottawa: 126 hours missing, as the licensee provided audio recordings for the period of 25 to 31 May, 2013 and not 25 to 31 May, 2014, as requested.

    In light of the above:

    1. Indicate whether the licensee accepts that this represents non-compliance with section 8(6) of the Regulations.
    2. Please explain the circumstances surrounding the missing portions of the audio recordings
    3. Please explain why the audio recordings submitted for the Ottawa station were for the period of 25 to 31 May 2013, and not for the period of 25 to 31 May 2014.
    4. Please specify what measures have been or will be put in place to ensure future compliance with section 8(6) of the Regulations.

Apparent non-compliance with conditions of licence relating to programming

12. As set out in Broadcasting Decision 2012-653, AVR is subject to the following condition of licence:

    1. The licensee shall, for each station, devote a minimum of 25% of its weekly broadcast schedule to the broadcast of local programming. Local programming must incorporate spoken word material of direct and particular relevance to the Aboriginal community within the market Aboriginal Voices Radio Inc. is licensed to serve. This must include local news, weather, sports coverage, and the promotion of local events and activities.

    For the purposes of this condition, “local programming” shall have the same meaning as that set out in Commercial Radio Policy, 2006, Broadcasting Public Notice CRTC 2006-158, 15 December 2006, as amended from time to time.

    Furthermore, “market” shall have the same meaning as that set out in the Radio Regulations, 1986, which is the FM 3 mV/m contour or the central area as defined by the Bureau of Broadcast Measurement (BBM), whichever is smaller.

    Following an analysis of the materials provided by AVR, Commission staff has the following questions with respect to its condition of licence 1:

    1. Please comment on how AVR complies with this condition relating to the incorporation of spoken word material of direct and particular relevance to the Aboriginal community within the market it is licensed to serve
    2. Please provide two to three examples of spoken word material of direct and particular relevance to the Aboriginal community within each market AVR is licensed to serve (i.e., the examples of spoken word material relevant to the Aboriginal community should be unique to each market) for the monitored broadcast week (May 25 to 31 2014).

       For each example, identify the date and time the material was aired, and provide a written description of this content.

13. According to the Toronto station’s Local Programming Log for 25 May 2014, AVR claimed a total of 18h 45m 28s for that broadcast day.

    Commission staff notes that, as defined in the Regulations, a broadcast day refers to the 18-hour period from 6:00am to midnight.

    1. In light of the above, please explain how there could be more than 18 hours of programming in the 18 hours logged.
14. As set out in Broadcasting Decision 2012-653, AVR is subject to the following condition of licence:

    2. The licensee shall broadcast regular daily local newscasts on each station, which must include at least five distinct local news stories for each market served by Aboriginal Voices Radio Inc. per broadcast day.

    For the purposes of this condition, “distinct local news stories” are those that incorporate spoken word material of direct and particular relevance to the Aboriginal community within the market served. Therefore, the event discussed in the story must occur in or be directly linked to the station’s market according to the definition of “market” set out in the Radio Regulations, 1986, which is the FM 3 mV/m contour or the central area as defined by the Bureau of Broadcast Measurement (BBM), whichever is smaller.

    Following an analysis of the materials provided by AVR, Commission staff has the following questions with respect to its condition of licence 2:

    1. In the letter sent by Commission staff on 2 June 2014, AVR was requested to identify the distinct local news stories for each market, as defined in condition of licence 2. However, Commission staff notes that this was not submitted. Please explain why this information was not provided.
    2. Commission staff notes that, for the 27 May 2014 audio recording for the Toronto station, the newscasts included stories that occurred in Toronto or were linked to the market. However, Commission staff was unable to identify any news stories of direct or particular relevance to the Aboriginal community in any newscast. Please explain why there were no news stories aired that related to the Aboriginal community in Toronto, as required by this condition.
    3. For the week that was monitored (25 to 31 May 2014), please provide examples of five distinct local news stories, for each market served by AVR, per broadcast day. For each example, identify the date and time the material was aired, and provide a brief description of each story.
15. Having reviewed the audio recordings, it appears that, for the Toronto station, on 29 May 2014, only one newscast was aired during the entire day (located at 10:34:46 on the DVD submitted). This newscast included only two news stories, one sports story, and a brief weather report.

    In light of the above:

    1. Indicate whether the licensee accepts that this represents non-compliance with condition of licence 2.
    2. Please explain the circumstances surrounding the broadcast of this single local newscast.
    3. Please specify what measures have been or will be put in place to ensure future compliance with condition of licence 2.

Late filing of the renewal application form

16. As noted in a letter from Commission staff dated 18 June, 2014, requesting the submission of the licence renewal forms for CKAV-FM, CKAV-FM-2, CKAV-FM-3, CKAV-FM-4 and CKAV-FM-9, failure to submit the application forms by the 29 August 2014 deadline could result in non-compliance with section 9(4) of the Radio Regulations, 1986, relating to requests by the Commission.

    Commission staff notes that, following 2 requests for extensions (12 September and 19 September), AVR’s licence renewal applications were submitted on 22 September 2014.

    In light of the above:

    1. Indicate whether the licensee accepts that this represents non-compliance with section 9(4) of the Regulations.
    2. Please explain the circumstances of this late filing.
    3. Please specify what measures have been or will be put in place to ensure future compliance with section 9(4) of the Regulations.

Filing of annual returns

17. Pursuant to section 9(2) of the Radio Regulations,1986 (the Regulations), licensees are required to file, no later than 30 November of each year, their annual return for the broadcast year ending the previous 31 August. Failure to file these returns, in whole or in part, by the required date of 30 November of each year, may result in an apparent non-compliance.

    According to Commission records, the annual returns for CKAV-FM, CKAV-FM-2. CKAV-FM-3, CKAV-FM-4 and CKAV-FM-9 have not yet been filed for the 2013-2014 broadcast year. Therefore, it appears that AVR  may be in apparent non‐compliance with subsection 9(2) of the Regulations, relating to the timely filing of annual returns for the 2013-2014 broadcast year for each station.

    In light of the information above:

    1. Indicate whether the licensee accepts that this represents non-compliance with section 9(2) of the Regulations.
    2. Please explain the circumstances of this failure to file an annual return for the 2013-2014 broadcast year.
    3. Please specify a date by which the annual returns for each station will be filed with the Commission.
    4. Please specify what measures have been or will be put in place to ensure future compliance with section 9(2) of the Regulations.

Condition of licence 9

As set out in Broadcasting Decision 2012-653, AVR is subject to the following condition of licence:

9. The licensee shall, on or before 30 November, file an annual update on the achievement of its business objectives, which includes the information set out below, for the broadcast year ending the previous 31 August:

• a breakdown of advertising revenues for the current broadcast year as well as projected advertising revenues for each remaining broadcast year of the licence term, for each licensed station;
• a breakdown of all non-advertising revenues for the current broadcast year as well as projected non-advertising revenues for each remaining broadcast year of the licence term, for each licensed station;
• a detailed breakdown of marketing strategies and tactics for each market and for each licensed station;
• copies of market research/awareness studies conducted over the course of the broadcast year; and
• a detailed breakdown of all staff (including contractors and sales and marketing staff), their location, responsibilities and compensation.

Commission staff notes that, the annual update provided for the 2012-2013 broadcast year was incomplete, as the breakdown of all staff did not contain the compensation for each employee.

Further. Commission staff notes that the report provided for the 2013-2014 broadcast year was also incomplete, as the breakdown of all staff did not include the location for the majority of the staff.

In light of the information above:

1. Indicate whether the licensee accepts that this represents non-compliance with condition of licence 9.
2. Please explain the circumstances of this failure to file complete annual updates.
3. Please specify what measures have been or will be put in place to ensure future compliance with condition of licence 9.

18. Commission staff notes that it appears that the revised breakdown of all staff, including their names, positions, responsibilities and locations, included as an attachment to your 2013 annual update, was marked as confidential. It appears that this was the only information that was designated as confidential as part of the 2013 annual update. As noted above, the salaries of staff were not included in this breakdown. In contrast, only the salaries of staff were designated as confidential in your 2014 annual update.

    Commission staff requests the disclosure of the following information.

    1. All contents of the  revised 2013 breakdown of all staff (i.e., names positions, responsibilities, locations)
    2. The sum of all salaries for remaining staff, and the sum of all salaries for the staff that was laid off, as noted in your 2014 annual update

    Please refile this information for the public record. If you do not agree with this disclosure, you must provide reasons, as well as any supporting documents, why the disclosure of the information would not be in the public interest, including why the specific direct harm that would be likely to result from the disclosure would outweigh the public interest. 

Condition of licence 10

19. As set out in Broadcasting Decision 2012-653, AVR is subject to the following condition of licence:

    10. The licensee shall submit audited financial statements as part of the annual returns submitted in accordance with section 9(2) of the Radio Regulations, 1986, for each of its radio stations.

    Commission staff notes that it would appear that the financial statements filed for CKAV-FM, CKAV-FM-2, CKAV-FM-3, CKAV-FM-4 and CKAV-FM-9 for the 2012-2013 broadcast year cover the period from April to March. However, as noted in Circular 404, licensees are required to file financial statements covering the broadcast year (i.e. from 1 September to 31 August).

    Commission staff notes that AVR has filed financial statements covering the broadcast year in its previous licence term.

    Further, Commission staff notes that the financial statements filed were for the licensee as a whole, and not for each station, as required by this condition.

    In addition, it would appear that, AVR has not submitted its financial statements for the 2013-2014 broadcast year for any of its 5 stations.

    In light of the information above:

    1. Indicate whether the licensee accepts that this represents non-compliance with condition of licence 10.
    2. Please explain the circumstances of this apparent non‐compliance.
    3. Please specify what measures have been or will be put in place to ensure future compliance with condition of licence 10.

Potential Commission actions

20. In light of the above, please comment on the possibility of the Commission taking any or all of the following actions for CKAV-FM, CKAV-FM-2, CKAV-FM-3, CKAV-FM-4 and CKAV-FM-9:
    • short-term licence renewal;
    • imposing conditions of licence;
    • imposing mandatory orders;
    • non-renewal of the licence;
    • suspension of the licence; or
    • revocation the licence.

The information requested herein should be received at the Commission by no later than 19 February 2015.

It is important to note that in the absence of a response on your part by the specified deadline, the licensee will be in a situation of apparent non-compliance with section 9(4) of the Radio Regulations, 1986, relating to the requirement of licensees to respond to Commission requests for information relating to adherence to their regulatory requirements.

A copy of this letter and your reply should be added to your application to be made available for public examination.

We also ask that you repeat each question in your reply.

The Commission requires that your response and/or other documents be submitted electronically by using the secured service “My CRTC Account” (Partner Log In or GCKey) and filling the “Broadcasting and Telecom Cover page” or the “Broadcasting Online Form and Cover Page” located on this web page. Also on this web page you will find information on the submission of applications to the Commission “Submitting applications and other documents to the CRTC using My CRTC Account.”

Should you need further information concerning your application, please do not hesitate to contact me by telephone at 819-997-4716 or by fax at 819-994-0218.

Yours truly,

Angie Blakeney
Analyst, Radio Applications and Policy
angie.blakeney@crtc.gc.ca

Date modified:

2015-02-06