******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Federal Communications Commission Washington, D.C. 20554 January 29, 1997 John Prendergast, Esq. Released: January 29, 1997 Blooston, Mordkofsky, Jackson & Dickens 2120 L Street, N.W., Suite 300 Washington, D.C. 20037 Re: Brookings Municipal Utilities' Request for Waiver of Sections 24.8313(a)(3), 24.709(a)(2), and 24.709(b) Dear Mr. Prendergast: On May 22, 1996, Brookings Municipal Utilities ("BMU"), a successful bidder for licenses in the Broadband C Block Personal Communications Services ("PCS"), filed an FCC Form 600 which included a request for waiver of Sections 24.8313(a)(3), 24.709(a)(2), and 24.709(b) of the Commission's rules. Specifically, BMU sought a waiver of Section 24.813(a)(3) to the extent that the rule required it to disclose "any person holding five percent or more of...[its] debt securities together with the amount and percentage held...." Additionally, BMU requested a waiver of Sections 24.709(a)(2) and 24.709(b), seeking to exclude the "personal incomes and assets of [BMU's] Board Members" from a determination of its attributable assets. Upon review of BMU's arguments we grant its request for waiver of Section 24.813(a)(3), and dismiss its request for waiver of Sections 24.709(a)(2), and 24.709(b) as moot. In its waiver request, BMU states that it is a political subdivision of the City of Brookings, South Dakota ("the City" or "Brookings"). Although South Dakota municipal law prohibits the City from issuing warrants or options, BMU explains that Brookings "has issued debt securities...for the construction of a wastewater treatment plant" and has entered into a "revenue obligation loan agreement with the South Dakota Conservancy District...to finance improvements to the wastewater collection system...." BMU argues that these debt securities were "issued as bearer bonds, and neither the paying agent for the issue...nor the underwriter...have any records of original or current bond holders." Furthermore, BMU maintains that "because the debt securities...do not endow their respective holders with any control over the Applicant, such debt securities are not those...envisaged by the Commission's disclosure rules" and, BMU should, therefore, be exempt from Section 24.813(a)(3)'s reporting requirements. Section 24.819(a)(ii) of the Commission's rules states that a request for waiver may be granted upon an affirmative showing that the "unique facts and circumstances of a particular case render application of the rule inequitable, unduly burdensome or otherwise contrary to the public interest." We find that BMU has demonstrated such a showing in this instance. First, the Commission has eliminated personal net worth requirements for C Block applicants, attributable investors, and affiliates. Thus, BMU's request for waiver of Sections 24.709(a)(2) and 24.709(b) is moot. Second, "[t]he purpose of PCS ownership disclosure requirements is to allow the Commission to determine who is the real party in interest, to determine compliance with the anti- collusion rules, the applicable spectrum caps...and the alien ownership restrictions." Here, the bond holders have no control over BMU. Therefore, strict enforcement of Section 24.813(a)(3) would not serve the underlying purpose of the rule. Furthermore, because information regarding the Brookings bond holders is not readily available, disclosure of the "names, addresses, citizenship and principal businesses of any person holding five percent or more of [its] . . . debt securities" would be unduly burdensome for the applicant. Accordingly, BMU's request for waiver of Section 24.813(a)(3) is granted. Brookings Municipal Utilities' request for waiver of Section 24.813(a)(3) IS GRANTED, and its request for waiver of Sections 24.709(a)(2), and 24.709(b) IS DISMISSED. This action is taken pursuant to the delegated authority under Section 0.331 of the Commission's rules, 47 C.F.R.  0.331. Sincerely, David Furth Chief, Commercial Wireless Division Wireless Telecommunications Bureau