Findings of Fact

1. Harbor Breeze provides whale watching and other tour boat services from its berth in Long Beach Harbor.

2. Harbor Breeze owns and operates four vessels with passenger-carrying capacities of 138, 149, 149 and 150 persons, respectively.

3. The market for ferry service between Long Beach and Catalina is highly seasonal.

4. Express is the only licensed carrier that provides scheduled service between the mainland and Catalina 365 days a year.

5. Express is profitable during the high season and loses money during the balance of the year.

6. Overall demand for ferry service between the mainland and Catalina is static.

7. Between 2003 and 2006, Harbor Breeze made 12-16 unlicensed round trips between Long Beach and Catalina.

8. Harbor Breeze has entered a settlement agreement with the Commission, paid a fine of $5000 for operating as an unlicensed vessel common carrier and pledged to obey all applicable laws and Commission regulations in the future.

9. There is a modest amount of unmet demand for on-call vessel common carrier service between Long Beach and Catalina Island, primarily during the high season, Memorial Day to Labor Day.

10. Granting a license to Harbor Breeze will have a small negative effect on the operations and profitability of Express.

11. Harbor Breeze's application for a license to operate a water taxi service in and between Long Beach Harbor and San Pedro Harbor was unopposed.

12. Harbor Breeze's application for a Zone of Rate Freedom of 20% above and below fares proposed in the application was unopposed.