I came across Coutlee in August while researching my grandfather's stay in Merritt, BC.There's a Coutlee Avenue in Merritt and I think that Coutlee, which must have been pretty small, was absorbed into Merritt when Merritt started to expand.
The only info I have says Coutlee was named after Alexander Coutlie (that's how it was spelt) who arrived in 1873 and died in 1901.Do you know if there was an Alexander in the family?
Merritt (and Coutlee) are in the Nicola Valley and there is a small archives in Merritt - Nicola Valley Archives Association, 2202 Jackson Ave., P.O. Box 1262, Merritt, BC V0K 2B0.They'll have information.
Coincidentally, Jackson Ave is one block south of Coutlee Ave.