Background and Procedural History

On February 16, 2001, Catalina Red & White Cruises, Inc. filed for a CPCN to operate scheduled and non-scheduled service from the Cities of Long Beach and San Pedro to Catalina Island. By an amendment, Applicant's name was changed to Catalina Classic Cruises, Inc. The application appeared on the Commission's Calendar on March 5, 2001. Applicant asked for interim authority for only nonscheduled service should the application require hearing. Service would be provided by the Catalina King, a vessel acquired by Applicant from holders of the title to the boat as security for unpaid loans. Since filing the application Applicant subsequently acquired the Catalina Countess, a similar size boat. (Tr. 53.) The former holder of the authority now sought by Applicant operated both vessels. (Tr. 192-193.) The Catalina King is now in service operating under charter to another carrier and carrying people to camps on Santa Catalina Island. (Tr. 22.) The Catalina Countess is presently in dry-dock. (Tr. 53, 54.)

Protest to the application was filed by Inlandboatmen's Union of the Pacific, Marine Division, International Longshore and Warehouse Union, AFL-CIO (Protestant) on April 3, 2001. A prehearing conference was held on May 8, 2001, followed by a Scoping Memo of the Assigned Commissioner, dated May 30, 2001. That Scoping Memo denied, without prejudice, the request for interim authority for nonscheduled service, since Applicant was already fulfilling that need by chartering the Catalina King and crew to another carrier. Evidentiary hearings were set for July 11-13 and July 16, 2001.

In an amendment to its application dated June 4, 2001, Applicant alleged "...an immediate and urgent need for scheduled services to Avalon.". (Amended App. Pg. 3, emphasis added.) Applicant withdrew its request for interim authority to provide nonscheduled service. (Id.)

On June 5, 2001, Administrative Law Judge (ALJ) Sheldon Rosenthal held a conference call with attorneys for Applicant and Protestant during which it was agreed that evidentiary hearings would be held on June 14-15, 2001. The sole subject of the hearings would be interim authority for scheduled service between Avalon on the one hand and San Pedro and Long Beach on the other hand.

Attorneys for Applicant, Protestant, and the City of Avalon (City) appeared at the evidentiary hearings on June 14 and 15, 2001. The ALJ granted City's motion to intervene.

During the hearings, Applicant and City urged immediate action on interim relief. The ALJ alerted the parties to Pub. Util. Code § 311(d), which provides, in part:

"The proposed decision of the assigned commissioner or the administrative law judge shall be filed with the commission and served upon all parties to the action or proceeding without undue delay, not later than 90 days after the matter has been submitted for decision. The commission shall issue its decision not sooner than 30 days following filing and service of the proposed decision by the assigned commissioner or the administrative law judge, except that the 30-day period may be reduced or waived by the commission in an unforeseen emergency situation or upon stipulation of all parties to the proceeding or a s otherwise provided by law."

Protestant did not stipulate to a shortening of time. (Tr. 173.) Thus, to shorten the statutory 30-day waiting period there must be a finding of an "unforeseen emergency situation." The ALJ specifically asked that this issue be addressed in the briefs.

At the close of the hearings, the parties agreed to brief the request for interim relief. They further agreed to expedite the normal briefing time. Concurrent briefs were to be filed and hand-delivered to the ALJ by 9:00 a.m. on June 25, 2001.