Lt. Cmdr. Randy Waddington, chief of investigations for the U.S. Coast Guard's Los Angeles-Long Beach section, said investigators were searching for online promotions for unlicensed charters. They noticed Balboa Boat Rentals' "Holiday Lights Harbor Cruise" aboard a 21-foot Duffy electric boat.
"Up to 10 passengers will enjoy a 2 hour narrated cruise past fabulous homes, yachts and landmarks decorated for the holidays," the company's website says.
If a boat has more than six paying passengers and a hired captain is behind the wheel, the vessel would have to be inspected and certified by the Coast Guard. Its captain would also have to have a certain license.
Waddington said that Balboa Boat Rentals' narrators were planning to drive the boats, so they would qualify as captains. His unit approached Rodheim and explained the rules.
"We were able to prevent an illegal charter," Waddington said.
Rodheim denied that his employees were planning to steer.
They will only narrate while clients drive the boat, he said Monday.
His nightly tours were scheduled to start Monday and last through Dec. 30.
"We're not doing the driving. We're not chartering. It's just like a boat rental," he said.
Rodheim added that he now plans to have licensed captains narrate, just to be extra cautious.
Balboa Boat Rentals has a fleet of small Duffy electric cruisers, small sailboats and powerboats.
But when a passenger pays someone to captain a boat, Waddington said, it's considered a charter, and both Coast Guard and city regulations take effect.
An expensive and time-consuming process, Coast Guard boat certification requires safety precautions for firefighting, lifesaving and stability. Charter operators have to pay the city a fee per passenger and provide a certain amount of parking.