Assignment of Proceeding

Michael Peevey is the Assigned Commissioner and Sheldon Rosenthal is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. Applicant proposes to offer scheduled service to Avalon from San Pedro and Long Beach.

2. Applicant proposes to offer non-scheduled service to various points on Santa Catalina Island from San Pedro and Long Beach.

3. Applicant is presently offering both of these services through interim authority and by charter service with another carrier.

4. Applicant will offer service in the Catalina King and Catalina Countess, vessels capable of carrying over 700 passengers.

5. Applicant's service will be slower that that of other carriers presently servicing Catalina Island, but at a lower cost to passengers.

6. The City of Avalon endorses the proposed service of Applicant.

7. A protest concerning the safety of Applicant's operations has been resolved.

8. A protest concerning the employment rights of former crewmembers of the Catalina King and Catalina Countess has been withdrawn.

9. Applicant has agreed to continue the conditions imposed in our interim decision D.01-09-061.

Conclusions of Law

1. There is a public need for the service offered by Applicant

2. Applicant has the capability to operate the proposed service and the financial resources necessary to sustain the service.

3. Applicant should be granted a CPCN to operate passenger vessel service on a scheduled basis between Long Beach/San Pedro, on the one hand, and Avalon, on the other hand, and on a non-scheduled basis between Long Beach/San Pedro and Santa Catalina Island.

4. Conditions pertaining to unauthorized passengers in the wheelhouse of Applicant's vessels and crewmembers at the doorways and gangplanks of Applicant's vessels should be continued.

5. Applicant's service will be unique and not competitive with other vessels. Therefore a ZORF is not appropriate and should be denied.

6. Today's order should be made effective immediately.

ORDER

IT IS ORDERED that:

1. A certificate of public convenience and necessity (CPCN) is granted to Catalina Classic Cruises, Inc. (Applicant), a corporation, authorizing it to operate as a vessel common carrier (VCC), as defined in Pub. Util. Code § 238, to transport persons and their baggage, between the points and over the routes set forth in Appendix VCC-86, subject to the conditions contained in the following paragraphs.

2. Applicant shall:


a. File a written acceptance of this certificate within 30 days after this order is effective.


b. Establish the authorized service and file tariffs and timetables within 120 days after this order is effective.


c. File tariffs and timetables on or after the effective date of this order. They shall become effective ten days or more after the effective date of this order, provided that the Commission and the public are given not less than ten days' notice.


d. Comply with General Orders Series 87, 104, and 111, and 117.


e. Maintain accounting records in conformity with the Uniform System of Accounts.


f. Remit to the Commission the Transportation Reimbursement Fee required by Pub. Util. Code § 423 when notified by mail to do so.

3. Applicant shall comply with all the rules, regulations, and requirements of the United States Coast Guard.

4. Unauthorized passengers shall not be allowed in the wheelhouse of Applicant's vessels.

5. Applicant shall station at least two crewmembers at the doorway and gangplank of its vessels to assist and safeguard passengers.

6. Applicant is authorized to begin operations on the date that the Consumer Protection and Safety Division mails a notice to the Applicant that its evidence of insurance and other documents required by Ordering Paragraph 2 have been filed with the Commission.

7. The CPCN to operate as VCC-86, granted herein, expires, unless exercised within 120 days after the effective date of this order.

8. Applicant's request for a zone of rate freedom is denied.

9. This proceeding is closed.

This order is effective today.

Dated , at San Francisco, California.

Appendix VCC-86 Catalina Classic Cruises, Inc. Original Title Page

(a corporation)

CERTIFICATE

OF

PUBLIC CONVENIENCE AND NECESSITY

AS A VESSEL COMMON CARRIER

VCC-86

-------------------------------

Showing vessel common carrier operative rights, restrictions,

limitations, exceptions, and privileges.

-------------------------------

All changes and amendments as authorized by

the Public Utilities Commission of the State of California

will be made as revised pages or added original pages.

-------------------------------

Appendix VCC-86 Catalina Classic Cruises, Inc Original Page 1

(a corporation)

SECTION I. GENERAL AUTHORIZATIONS, RESTRICTIONS, LIMITATIONS, AND SPECIFICATIONS.

Catalina Classic Cruises, Inc., a corporation, by the certificate of public convenience and necessity granted by the decision noted in the foot of the margin, is authorized to conduct common carriage by vessels, for the transportation of passengers, their baggage, and accompanying supplies, between points and places as described in Section II, subject however, to the authority of this Commission to change or modify this authority at any time and subject to the following provisions:

Appendix VCC-86 Catalina Classic Cruises, Inc. Original Page 3

(a corporation)

SECTION II.

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