K. D. Moore Associates - yachtauctions.com

K. D. MOORE ASSOCIATES, INC. • PMB B-1 • 1415 Fulton Road #205 • Santa Rosa, California 95403 Telephone: 707/546-3519 • Fax: 707/546-3718 • E-mail: [email protected]

K. D. Moore Associates Marine Surveyors, Casualty Investigation & Claims Services Hull & Machinery · Crew & Passenger Injuries · Loss Control & Risk Assessment NAMS Cert. #105204 SAMS Cert. #1074 CA Pvt. Invest. Lic. AQ007623 Tax ID # 94-3149325

UNDERWRITING SURVEY OF CONDITION AND VALUE OUR CASE: 17535-I

M/V “SPIRIT OF SACRAMENTO” SURVEY HELD AT THE REQUEST OF INTERESTED PARTY, SAN MATEO COUNTY, WHILE

VESSEL WAS AFLOAT AT OYSTER POINT MARINA, CA, ON THE 26TH DAY OF APRIL, 2016 IN ORDER TO REPORT THE CURRENT CONDITION AND TO DETERMINE THE FAIR MARKET

VALUE AND VESSEL REPLACEMENT COST.

GENERAL INFORMATION OWNER

: Sacramento Yacht Charters, LLC ADDRESS : 751 Laurel, #104 San Carlos, CA 94070

VESSEL NAME : “SPIRIT OF SACRAMENTO” REG. / DOC. # : 510560 MOORAGE : Oyster Point, CA TONS – GROSS : 99 NET : 67 TYPE VESSEL : Paddle Wheeler INSPECTION ASHORE /AFLOAT : Afloat BUILDER : Dubuque Boat & Boiler Co. YEAR BUILT : 1967 INTENDED SERVICE : Passenger for hire HULL NUMBER : 838528 WATERS TO BE NAVIGATED : San Francisco Bay and Tributaries

DEFINITION OF TERMS

The following is a definition of words and terms that may appear in this appraisal report: Excellent condition : New or like new. Good condition : Nearly new with only minor structural / cosmetic discrepancies noted. Fair condition : Functional as appears with minor repairs. Poor condition : Unusable – requires repairs or replacement of system, component or item to

be considered functional. Appears/good as seen : Indicates that a very close inspection of the particular system, component, or item

was not possible due to the constraints imposed upon the surveyor (e.g., no power available, inability to remove panels, or requirements not to conduct destructive tests).

SURVEY OF CONDITION AND VALUE / OUR CASE: 17535-I PAGE 2 of 18 / May 5, 2016

VALUATION

ESTIMATED VESSEL FAIR MARKET VALUE (AS OF 05/06/16)

: $200,000.00 ESTIMATED VESSEL REPLACEMENT COST (AS OF 05/06/16)

: $5,000,000.00

In the valuation determination, cost, income and sales comparison approaches to value were considered.

While the vessel that is the subject of this report does produce an income, adequate income documentation was not available and; therefore, it was not used in developing the Fair Market Value.

The cost approached was considered; however, the vessel has exceeded its normal useful life and without investment to return the vessel to a useable condition it does have a remaining useful life. Therefore, it was not used in developing the Fair Market Value.

In the sales comparison approach, Ocean Marine, Sun Machinery, Boat Trader and Soldboats websites were reviewed. Actual reported sales figures and asking prices of similar vessels ranging from $199,000.00 to $1,200,000.00 were considered.

After reviewing the data and adjusting the comparables to the subject vessel we estimate the fair market value at $200,000.00.

No data is available in the BUC or NADA Guides for this vessel.

The condition, age and the location of the vessel were also considered.

Values are dependent on the limiting conditions and assumptions noted in this report.

These values are statements of opinion. No guarantee can be given that these opinions of value will be sustained or that they will be realized in an actual transaction.

HULL LENGTH - LOA : 85’ REG : 84’6” BEAM : 27’2” DRAFT : 3’ DEPTH : 5’2” CONSTRUCTION : Welded Steel DATE LAST HAULED : Unknown VESSEL CONVERTED / REBUILT : No

PROPULSION MACHINERY # OF ENGINES : 2 MAKE : Cummins SPEED – AVG : 8 HP (TOTAL) : 300 MODEL : NT855 MAX : 10 SERIAL NOS

P : 11512437 FUEL : Diesel TYPE EXHAUST : Wet

S : 60521137 GEAR BOX : Twin Disc MG509

TEMP. GAUGES : Yes

ENGINE P : 8563.3 RATIO : 2.95:1 FULL COMPT. : Yes HRS S : 8930.2 VENTILATION : Natural CLEAR OF WOOD : Yes OVHL DATE

P : 2000 BILGE PUMPS : Yes, Electric

TURBOCHARGED : Yes

S : 2004 BILGE BLOWER : None KEEL COOLER : No MAINTENANCE SYSTEM LOGS : None sighted


ELECTRICAL SYSTEM

GENERATOR MAKE/MODEL

: Cummins M11-G1

HOURS : Not sighted

SERIAL NO. P: 44122706 RATING P: 75 KW S: 35080251 S: 170 KW BATTERIES : (2) Group 24

(4) 8D

CHOCKED : Yes COVERED : Yes WIRING : See Recommendations WIRED FOR : 12V DC

110V AC FUSED/BKR : Both

SHORE POWER SERVICE : 200A RUNNING LIGHTS USCG APPROVED

: Yes

OTHER : Lamarche 20 Amp Battery Charger Guest 6 Amp Battery Charger (2) Charles 20 Amp Battery Chargers

TANKS AND FUEL LINES NO. OF FUEL TANKS : 1 FILL PIPES FLUSH WITH

DECK : No; goose neck

on stbd bow TOTAL FUEL CAPACITY : 4250 SHUT-OFF VALVES

ACCESSIBLE : Yes; bow storage

SHAPE : Integral EQUIPPED WITH VENT LINES : Yes; stbd bow CONDITION : No leaks

noted LOCATION OF FUEL LINES : Underdeck;

protected NO. OF WATER TANKS : 2; cylindrical SEWAGE TANK :

1; Capacity unknown

TOTAL WATER CAPACITY : Est. 2000 gallons

ALARM SYSTEMS

BILGE WATER : Yes FIRE : Engine Room ENGINE ALARMS : Yes

GALLEY, FOOD & BEVERAGE EQUIPMENT

GALLEY Stainless Scullery Manitowoc Ice Maker Wells Electric 2-Burner Stove 2 Unit Electric Warmer Oven 2 Convection Ovens Shay Microwave True 2-Door below Counter Refrigerator True Single Stainless Refrigerator below Counter 2-Door Raetone Stainless Refrigerator Exhaust Blower


UPPER DECK BAR Auto Beverage Dispenser (non-op) True Beverage Refrigerator 2ND DECK Superior Beverage Refrigerator MAIN DECK (2) Beverage Dispenser 3 Compartment Stainless Steel Sink (2) True Beverage Coolers Sharp Cash Register ATM Machine

FIRE AND SAFETY

NO. OF EXTINGUISHERS

: 5 TYPE / SIZE : (1) BI (4) BII

DATE LAST INSP. : May 2013 (see recommendations) LOCATION : Throughout vessel FIXED CO2 / HALON SYS.

: CO2 MAN. / AUTO

: Manual LAST INSP. : May 2013

LIFE PRESERVERS

: ADULT : 357 CHILD : 36 LOCATION : Passenger spaces

MAN OVERBOARD POLE

: Yes TYPE : Davit with retrieval basket

LOCATION : Starboard bow

OTHER RAFTS : (4) Floats (1) IBA; Exp. 2015

TYPE : 22 Passenger 30 Passenger

LOCATION : Upper deck

EPIRB : N/A LOCATION : N/A FIRST AID KIT : Yes FLARES : Yes; Exp. 10/2015. See recommendations RING BUOYS : 3 NO. WITH

LIGHT : 2 NO. WITH LINE : 2

FIRE PUMPS : 2 HOSES : (2) 1.5” STATIONS :

2

CO/SMOKE DETECTOR

: Not sighted; see recommendations.

FIRE AXE : Yes

DOCK AND GROUND TACKLE

NO. OF ANCHORS : 2 TYPE/SIZE : 75# Danforth LENGTH & TYPE OF ANCHOR LINE

: 150’ x 1” Sampson Braid

MOORING LINES : 1” Sampson Braid CONDITION : Sound WINDLASS : None


VESSEL LAYOUT

UPPER DECK MAIN DECK: BELOW DECK: A. Pilot House with Remote Steering P/S A. Short Open Deck A. Collision Bulkhead B. Open Deck with Awning B. Bar with Heads P/S B. Void with tankage C. Main Dining Area C. Void with tankage 2ND DECK D. Galley D. Void A. Heads P/S E. Void with tankage B. Passenger Dining F. Engine Room C. Dance Floor G. Void/Storage

UNDERWATER INSPECTION

Vessel was afloat at survey. The following are reported:

NO. AND TYPE PROPELLERS : (2) 4-Blade Bronze SIZE : 38x30 NO. AND SIZE SHAFTS : (2) 2 3/8” Stainless HULL

CONDITION : Not sighted

NAVIGATION / ELECTRONIC EQUIPMENT West Marine Zephyr Marine VHF Radio Standard Horizon Depth Sounder Microphone House PA System Sansui T700 Stereo System Sony CDP-CE105 Compact Disc Pioneer CTW1003 AM/FM/Cassette Stereo (4) TOA Amplifiers Vishorn Karaoke Amplifier Ray Marine C70 Multi-Function Display ComNav Voyager X3 AIS Uniden Solara DSC VHF (4) Rule High Water Alarms P/S Engine Gauges P/S Generator Gauges Richie 2” Angler Compass

OTHER EQUIPMENT 50 Gallon Water Heater 7.5 HP Fire Pump 7.5 HP Bilge Pump (2) Fresh Water Pumps with Pressure Tanks Sewage Pump (2) AC Units (aft deck)


UNITED STATES COAST GUARD CERTIFICATE OF INSPECTION DATA

No current Certificate was observed. Certificate onboard expired in 2006.

STABILITY LETTER

DATE OF ISSUE : May 20, 2013 POSTED ON BOARD : No; in binder in pilot house DATE OF TEST : November 12, 1997 BASED ON INCLINING

EXPERIMENT : Yes

Limitations: A maximum of 271 persons may be carried on this three deck vessel, of which 260 may be

passengers.

REMARKS AND LIMITING CONDITIONS

1. This vessel is under arrest by the US Marshall and has been more or less unmaintained for several years.

2. The USCG Certificate of Inspection for passengers has expired.

3. This is a condition and valuation report which was done for San Mateo County. Supporting documentation concerning the data developed, and the value calculations, is retained in the appraisal file.

4. The values given in this appraisal are for the stated valuation dates only, and only for the stated purpose.

5. We are unaware of any significant potential environmental hazards associated with this equipment other than normal on board fuel and lubes or cargo carried in normal commerce.

6. Testing of the electronics or vessel systems was not conducted at the time of our inspection and, unless otherwise indicated, it is assumed that systems are functioning and meet necessary requirements for their intended use.

7. Equipment descriptions are included in the report for purposes of identification and classification. Descriptions are intended for informational purposes only, but are not intended to detail all conditions or list all features associated with each item described.

8. This report was prepared for the client of record, as noted, in order to provide an opinion of value under an assumed set of circumstances as requested and mutually agreed upon by that client. Any legal defense, court or deposition preparation related to it will be considered a new and separate assignment.

9. This report will be considered as confidential. Copies of this report will only be made available to other parties with prior written consent of the purchaser/owner of this report. Any confidential information received in preparation of this report will be kept confidential.

10. Information supplied by others that was considered and utilized in constructing this report is from sources believed to be reliable and no further responsibility is assumed for its accuracy.

11. All accessible below deck compartments were inspected and found to be in fair condition.

12. Machinery was not run; however, appeared to be in fair condition.

13. Vessel is in overall poor condition.

14. Vessel will be considered safe for its intended service and routing upon completion of recommendations.


RECOMMENDATIONS & SUGGESTIONS

1. All exterior deck coatings are failing and some areas of corrosion are present. Suggest crop any wasted steel to sound and replace. Sand and recoat exterior.

2. Non-skid exterior deck coatings are failing. Recommend sand and recoat to reduce liability exposure.

3. Ornamental exterior steel trim is distorted, cosmetic in nature. Suggest repair or replace as needed.

4. Upper deck furniture is in poor condition, with little to no value. Recommend remove to reduce liability exposure.

5. There are two fire stations, condition appears operational. Recommend test to confirm operational.

6. Second and main deck headliner paneling, lighting fixtures and exposed wiring, carpets, wood flooring and wall coverings are in poor condition. Recommend remove and replace to reduce liability exposure.

7. Galley is in poor condition. Decaying food observed. All equipment is suspect. Recommend removing all equipment, thorough cleaning of galley, test equipment and reinstall operational units.

8. No suppression system installed in galley hood. Recommend install hood fire suppression system.

9. Furniture and barbeques on exterior foredeck are in poor condition. Recommend remove to reduce liability exposure.

10. Wingnuts type connectors on batteries. Recommend replace with lock type fasteners.

11. Significant corrosion on port and starboard shaft stuffing boxes at seals. Recommend replace.

12. Aft below deck compartment has plastic diesel fuel cans stored. Recommend removed.

13. All coatings in below deck voids and tank compartments are failing. Recommend sand and recoat.

14. All machinery has not been run in some time. Recommend certified technician service all machinery prior to use.

THIS SURVEY IS FOR INSURANCE PURPOSES ONLY AND IS NOT A CONDITION OF SALE OR TITLE TRANSFER

-------------------------------------------------- This survey sets forth the apparent condition of the vessel, including hull, machinery, equipment and fittings and gear to the best of the surveyor's ability without borings, removal of bulkheads, panelings, ceilings or other portions of her structure without climbing masts or inspections of spars above that normally visible from the deck and without the operation or opening of her machinery, electronics or auxiliaries for internal examination of their operation for performance study; nor was any evaluation made of the vessel's stability. It represents the surveyor's honest and unbiased opinion, but in submitting this survey, it is understood by all parties concerned that this is survey is not to be considered a guarantee of its accuracy, nor does it create any liability on the part of the surveyor or his employers arising out of the reliance on information in this survey. ABYC Standards & Recommended Practices for Small Craft, NFPA 302 Standards for Pleasure and Commercial Motor Craft, and the Federal Requirements for Recreational and Commercial Craft (CFR 33 & 46) are used in compiling this report. Individual reference to subchapters of the above is not made within the body of this report. This vessel was manufactured prior to enactment of some ABYC and NFPA standards, and USCG (CFR 46 & 33) in effect today. This survey report addresses those recommendations thought to be necessary for safety and value, but it is not to suggest a complete compliance with current standards. The report has been prepared for the sole benefit of the client (s) herein. No other person (s) or entity shall be a third party beneficiary hereof, nor be entitled to utilize this report for purposes unrelated to the client’s purposes. No person or entity is authorized to change this report in anyway. In the event that the Client proves that the loss, damage, delay or expense was caused by the negligence, gross negligence or willful default of the Surveyor aforesaid, then, save where loss, damage, delay or expense has resulted from the Surveyor’s personal act or omission committed with the intent to cause same or recklessly and with knowledge that such loss, damage, delay or expense would probably


result, the Surveyor’s liability for each incident or series of incidents giving rise to a claim or claims shall never exceed a sum calculated on the basis of ten times the Surveyor's charges or USD 100,000 whichever is the greater. We certify that, to the best of our knowledge and belief:

- the statements of fact contacting in this report are true and correct - the reported analyses, opinions and conclusions are limited only by the reported assumptions and

limiting conditions and are in our personal, impartial and unbiased professional analyses, opinions and conclusions

- we have no present or perspective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

- we have performed no services, as an appraiser or in any other capacity, regarding the property that is subject of this report within the three year period immediately preceding acceptance of this assignment.

- we have no bias with respect to the property that is the subject of this report to the parties involved with this assignment.

- our engagement in this assignment was not contingent upon developing or reporting predetermined results.

- our compensation for completing this assignment is not contingent upon the development or report of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of the stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

- our analyses, opinions, and conclusions were developed, and this reports has been prepared in conformity with the Uniform Standards of professional Appraisal Practice.

- we have made a personal inspection of the property that is the subject of this report - no one provided significant property appraisal assistance to the persons signing this certification.

DATE: 05/05/16

Kevin Moore, SAMS®, AMS Heather Hyde, SAMS®, SA

/smc /17535C&V04.26.16











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K. D. Moore Associates - yachtauctions.com