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KXCI / DI Correspondence --- 1-22-04 --- (added 3-20-04)
Democracy Initiative Correspondence
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Letter from Larry Bruce to Scott Egan regarding an election
"process [that] will involve... possibly contacting a random
sample of the signers by telephone to confirm that they in fact
signed petitions"

January 22,2004


Dear Mr. Egan:


This letter is in response to your letter dated January 12, 2004. On January 12, 2004 you delivered to me petitions numbered 1 to 483 concerning proposed amendments to the bylaws of the Foundation for Creative Broadcasting, Inc. You delivered additional petitions numbered 484 to 506 to the BOD meeting on January 15,2004.


During the course of that BOD meeting, the Board approved a motion directing me to work with the Foundation's legal counsel and KXCI staff to proceed with preparations for the election according to the FCB bylaws and relevant Arizona law. I can assure you that I will do so.


Before an election can be conducted, we are required to verify that the petition was signed by a sufficient number of current members per the bylaws. (For example, you indicated in your letter that some of the signers did not appear on your copy of current members.) That process will involve comparing the signer names and addresses with the membership list and possibly contacting a random sample of the signers by telephone to confirm that they in fact signed petitions.


We have already begun obtaining bids from several potential independent auditors. If you have ideas about someone to conduct the verification in whom we both would have confidence, please let me know before February 4 so we can obtain bids from them too. Under Section III.3 of Article 2 of the by-laws, providing for the initiative process, "All expenses shall be borne by the petitioner." Once an auditor has been chosen, you will need to make arrangements for payment of the costs.


Assuming that the necessary signatures have been certified, we will proceed to have election materials and ballots prepared and distributed. In your letter yon wrote that you want to discuss the mechanics of the election; we would appreciate receiving your suggestions as soon as possible, preferably in writing. Once the mechanics are finalized and the cost determined, you will need to make arrangements for payment of those costs, as well.


Finally, although your petitions mention "proposed Bylaws referred to as the KXCI Democracy Initiative," me proposed bylaws were not included in or attached to the petitions themselves. A copy of the bylaw changes was delivered to the BOD meeting with the additional petitions. To avoid any confusion in the election process, please send me a letter confirming the proposed bylaws and indicating the date that they were prepared in their current form.


During the course of this process, we will need to meet to discuss details of the signature verification and the election procedures. Please let me know who is authorized for the Initiative to enter into discussions and make decisions regarding these issues. Speaking for the Board and the staff, I can assure you that we look forward to concluding a process we can all have confidence in. Feel free to contact me if you have any questions.




Larry Bruce

General Manager, KXCI