Background and Procedural History
Sea Planes has authority (VCC 85) to operate scheduled passenger vessel service on coastwise routes between Santa Barbara and Marina Del Rey, and between San Diego and Marina Del Rey, with intermediate stops along these routes. (Decision (D.) 00-09-021 (September 7, 2000).)1 In this application Sea Planes seeks to add authority to operate cross-channel vessel service between Marina Del Rey and Avalon, the principal community and harbor on Santa Catalina Island. Sea Planes proposes to start the service in July, 2002, based upon the projected availability of its vessels.
Sea Planes is a startup company which presently has no significant capitalization, and no vessels available to operate its proposed services. In the application Sea Planes represents that it is currently seeking equity capital, federal grant monies, and loans (or leases) to finance the equipment and facilities necessary to perform its proposed services. Sea Planes claims that it will be unable to obtain capital or acquire vessels without first obtaining operating authority from us.
A timely protest and request for an evidentiary hearing was filed by Catalina Channel Express, Inc. (Catalina), a vessel common carrier that has authority to operate scheduled and nonscheduled service between San Pedro and Long Beach, on one hand, and Avalon, on the other.2 Catalina protests the application as being premature, on the grounds that without funds for capital and operating expenses, and without appropriate vessels in its possession or control, Sea Planes cannot make the requisite showing of financial and operational fitness for obtaining the amendment to its CPCN.
No prehearing conference or evidentiary hearing was held. Instead, the ALJ issued a ruling on May 4, 2001, directing Sea Planes to supplement its application by filing documentation to demonstrate that it has adequate current capital, or binding commitments therefor, to operate the proposed service.3 Sea Planes duly complied with this Ruling, and the application is ready to be decided ex parte.
1 Sea Planes is not yet operating any vessel service pursuant to this authority. 2 Catalina currently does not operate any scheduled vessel services between Marina Del Rey and Avalon points. In addition to its protest, Pacific Adventure Cruise sought leave to file a late-tendered protest, which was denied by the assigned Administrative Law Judge (ALJ). The City of Avalon also sent a letter requesting certain conditions of approval, of which we have taken notice in preparing our order. 3 The Ruling admonished Sea Planes that it must satisfy Rule 1 of our Rules of Practice and Procedure in so doing.
