Survey_A.pdf

SURVEY A

RE: Vessel

Type

HIN#

File#

For Your Eyes Only 2003, Azimut 74 Motor Yacht

XAX74077G203

MY013207

This report should be read in conjunction with the First Report dated 4.1.13.

OVERVIEW/ORIGIN

Major electrical damage consistent with that of a lightning strike was identified.

That which follows is an estimate that was created after a comprehensive investigation and inspection of the vessel detailing the cost of labor and parts required to restore the vessel to a seaworthy condition.

The vessel and it's systems were inspected jointly with electricians from Mirage Yacht, Inc at their facility in Miami Florida. All electrical components of the vessel were individually inspected and proven. Upon inspection, the damage found throughout the vessels electrical components was consistent with a lightning strike (see attached photos).

Replacement of all electrical components is recommended in order to bring the vessel into serviceable condition.

After testing of the individual components was completed, vessels individual wire runs were randomly tested, while some indicated continuity with no voltage drops, other wires within the same harnesses did not indicate continuity and or had severe voltage drops.

Cabling throughout the vessel upon visual inspection appeared stiff and there is severe damage to the wire insulation throughout. Replacement of all vessel wiring and harnesses is recommended in order to bring the vessel into serviceable condition.

All el ectrica l breakers and fuses were indi vidua ll y tested, while some fuses appear to have been replaced recently, the resettable circuit breakers are no longer serviceable.

Breakers throughout both the AC and DC service panels will not reset, whether power is applied or not. Damage of this nature to the breakers is indicative of a lightning strike.

During the course of the electrical survey, the vessel was plugged into the 50-amp shore service which caused the main 100 VAC fused switch on the primary fused switchboard to trip immediately. Generator 1, was started but within 5 minutes of switching on various systems for testing, the odor of burning insulation from overheating wiring under the primary pilot station console was overwhelming, and the generator shut down.

Considering all that above and having 20 years experience in handling loss claims, it is the undersigned professional opinion that the damage surveyed is consistent with either a direct or a close proximity lightning strike that has caused a massive electrical surge.

Engine room lights show evidence of burn out

Burned out camera dome

Halogen bulbs. Typical burned bulb

Burned out ballast switch for engine lights

Heat transfer has caused paint on underside behind of arch (opposite radar dome position)

Clear evidence of charring on sound damper behind replaced chargers

Secondary charger still marked "Do Not Use" with charring and soot on perforated sound damper cover still visible.

Smoke and heavy odor of overheating wiring coming from space under pilot station when 110 VAC power is operative. (Fire hazard)

Engine management control board showing evidence of massive power surge

Close up of engine management control board showing microprocessor that has exploded as a result of a power surge.

Navigational electronics CPU showing evidence of fire

Close up of navigational electronics CPU showing evidence of an internal fire

Micro switch from engine room that has burned internally, all tenninals are heavily damaged and show signs of high heat. Plastic insulation is brittle and "cooked" as a result of fire

ESTIMATED COST OF REPAIR

After the comprehensive inspection of the vessel concluded, the undersigned along with representatives from Mirage Yacht, inventoried the vessel's electrical components in order to create a comprehensive repair estimate. The estimate is broken down into eight subsections which are as follows:

Description Parts* Labor

Hours** Appliances, pumps & miscellaneous equipment 300 Breakers and electrical components 300 Lighting and lighting controls 200 Engine controls and monitoring 250 Air conditioning and refrigeration 200 Navigational electronics 200 Audio video equipment 100 Wiring removal and replacement 630 SubTotal 2,180 Hourly Labor Rate *** Grand Total

* See attached spreadsheet for details of all components

** includes removal of damaged components, rewiring, installation, mounting and testing of replacement components (including plumbing). Does not include wiring runs or custom carpentry modifications which may be required to accommodate newer- model replacement components

Stewart Hutcheson.

Marine Surveyor.

Cc. Mr. Bill Casey. Senior Surveyor

Contacts Undersigned 954-449-3861 Stewarthutcheson@mac.com

This report was compiled by the undersigned, submitted for approval to Capt. Bill Casey, senior surveyor, Harbor & Ocean Services, Inc.

This survey is submitted Without Prejudice by Harbor and Ocean Services, Inc., and is issued subject to the condition that it is understood and agreed that neither this office nor any surveyor or any employee thereof is under any circumstances whatsoever to be held responsible in any way for any error in judgment, default, or negligence, nor for any inaccuracy, omission, misrepresentation or misstatement in this report, and that the use of this report shall be construed to be an acceptance of the foregoing conditions.

It is further understood and agreed that neither the inclusion of items listed as "Found," nor the recommendations made thereto constitute an agreement of insurance coverage for such items under the terms and conditions of the subject policy.

HARBOR & OCEAN SERVICES INC

Surveyors, Adjusters, Consultants

P.O.Box 14472, Ft Lauderdale, Florida 33302

FIRST REPORT

Date 4.1.13

Mirage Yacht Inc 3850 NW North River Drive Miami Florida 33142

Attention Mike Hatami

RE: Vessel Type

HIN#

File#

For Your Eyes Only 2003, Azimut 74 Motor Yacht

XAX74077G203

MY013207

OVERVIEW/ORIGIN

Assigned to survey the electrical system aboard the vessel, which the US Government owns, and which has been stored on the hard for several years.It is now in the care and custody ofNational Liquidators/Mirage Yachts of Miami.

Assigned the file on 3.28 and surveyed the vessel on 3.29.13 afloat at Mirage Yachts.

ATTACHMENTS

CD containing digital photographs

SURVEY

FOR YOUR EYES ONLY

2003, Azimut 74 Motor Yacht.

HIN # XAX74077G203. (Hull number designates it was sold in the US market) Machinery. Twin MTU 12V183 -TE 94 Aux Machinery. Twin Kohler 20 KW gensets.

The overall condition of the vessel is poor.

Mold is rampant in the cabin spaces.

Teak handrails show degraded varnish work.

The finish is oxidized.

Tests performed.

* The vessel was plugged into the 50-amp shore service but this caused the main 100 VAC fused switch on the primary fused switchboard to trip immediately.

* Generator 1, was started but within 5 minutes of switching on various systems for testing, the odor of burning insulation from overheating wiring under the primary pilot station console was overwhelming, and the generator shut down.

* Generator 2 was started but this trips the primary fuses immediately.

*The engine alarms start sounding immediately when either the 110 VAC shore power or 110 VAC is generated by auxiliary power.

* The ships 12 VDC power system was activated and this to caused the engine alarms to sound continuously and these will not reset at all.

The following fixtures/fittings/ components will require replacement or repair.

Note.

This list is to be used as a guide only, and only once the 110 VAC power source is properly restored can a full electrical inspection be made.

Main Engines. (MTU specialists should be called in)

* The main wiring harness to both control heads

* The Electronic Control Modules and Main processors.

* The Master Control units.

*All engine gauges (two sets) *All engine sensors.

* All "MTU" sensors.

* 11MTU Elektronik:11 alarm system

* 11MTU' engine gauges

* Hydraulic steering pump.

Aux Power.

* The ignition circuits of both generators inclusive of output relays and rectifiers.

Bow Thruster.

* 11American Bow Thruster" solenoid, electrical circuitry.

House Systems

* "Newmar" 32-12-10 12VDC convertor.

* All 11 Cruisair" SMX 11 Controls.

* All primary circuit boards on the air conditioner compressors.

* All head macerator pumps.

*"Bose Lifestyle" sound system complete with 6 disc changer and 6 speakers.

*"Yamaha" Natural bound DVD player *"Sea Tel" TV antenna and relay switch.

* "DTS17V" flat screen TV

* "Sharp Aquas" 27 inch flat screen TV

* Three 11Direct TV ' receivers and primary switchbox.

*Foot solenoid switches on aft deck to control electric winches.

*Foot solenoid switches for windlass.

*Three closed circuit cameras and control unit.

* Two 11Gianneschi & Ramacciotti11 for water maker.

* 11Lieber Premium11 Galley Refrigeration (Electrical circuit and compressor)

* "GE Profile11 under counter oven

* "Miele" glass top 4 plate stove.

* ''Miele" under counter dishwasher

* 11Clasic ISE in sink-erator11 garbage compactor.

* "Raritan Icer-ette" under counter ice machine

* Two engine blower ignition circuits.

* Fixed fire extinguisher relays.

*All ballast fittings and bulbs for fireprooflights in engine space.

Navigational Aids.

* "Raymarine" RL80C Radar/Chartplotter and Dome.

* "Raymarine C70 GPS/Chartplotter

* "Raymarine RC631 Chartplotter/ Sounder and

* "Deltanav" marine intercom.

*Two "ACR" search light controls and bulbs I bridge repeater

* "Raymarine Autopilot" & Bridge repeater "ST 7001"

* "Raymarine" ST 80 multivew screen

* "Raymarine" Ray VHF handset and antenna.

* "ICOM IC-M422" VHF radio and antenna.

REMARKS I SUMMARY

* That the primary 12 VDC battery bank has recently been replaced (2 x 31 series for generator starting and 6 x 8D house and starting batteries ) because they were not holding a charge.

* That the two Phase Three, three stage battery chargers have also been recently replaced, and there is a clear charring pattern on the perforated sound damper material behind these chargers.

* That the Radar dome compatible with the Raymarine RC631 / GPS chartplotter/ Radar has been removed completely.

*The painted surface around the flush molmted light fitting directly under the old position of the radar dome is peeling from heat transfer.

*That several halogen flush light fittings show clear patterns ofbum out.

* That there is a clear smoke pattern in the aft engine room camera dome.

* That the secondary 11Mastervolt" battery charger is marked "Do Not Use" *That central wiring is overheating and burning insulation the moment 110 VAC is introduced either via the shore power or the generator.

* The extensive and wide spread 110 VAC & 12 VDC component damage.

* That the wiring in the primary switchboard shows evidence of severe overload and arc type charring.

Considering all that above and having 20 years experience in handling loss claims, it is the undersigned professional opinion that the damage surveyed is consistent with either a direct or a close proximity lightning strike that has caused a massive electrical surge.

Engine room lights show evidence of bum out

Burned out camera dome

Halogen bulbs. Typical burned bulb

Burned out ballast switch for engine lights

Heat transfer has caused paint on underside behind of arch (opposite radar dome position)

Clear evidence of charring on sound damper behind replaced chargers

Secondary charger still marked "Do Not Use" with charring and soot on perforated sound damper cover still visible.

Smoke and heavy odor of overheating wiring coming from space under pilot station when 110 VAC power is operative. (Fire hazard)

ESTIMATED COST OF REPAIR

Unknown at this time.

I recommend that the main and auxiliary machinery be repaired first. Then all 50-amp I 110 VAC shore power must be proved.

Lastly the second 12 VDC batte1y charger should be replaced.

Only once a clean uninterrupted power source is measured at the primary fused switch, can a full electrical survey be performed.

TO BE DONE

Await further instruction

Stewart Hutcheson. Marine Surveyor.

Cc. Mr. Bill Casey. Senior Surveyor

Contacts.

Undersigned 954-449-3861 StewmthutchesonCZi{mac.com

This report was compiled by the undersigned, submitted for approval to Capt. Bill Casey, senior surveyor, Harbor & Ocean Services, Inc.

This survey is submitted Without Prejudice by Harbor and Ocean Services, Inc., and is issued subject to the condition that it is understood and agreed that neither this office nor any surveyor or any employee thereof is under any circumstances whatsoever to be held responsible in any way for any error in judgment, default, or negligence, nor for any inaccuracy, omission, misrepresentation or misstatement in this report, and that the use of this report shall be construed to be an acceptance of the foregoing conditions.

It is further understood and agreed that neither the inclusion of items listed as "Found," nor the recommendations made thereto constitute an agreement of insurance coverage for such items under the terms and conditions of the subject policy.

NOTE: It is the Assured's responsibility to authorize and sign necessary repair orders, to be responsible for payment of all repair charges and to approve completed repair work. Should additional damage be found during the repair process, the Surveyor should be contacted promptly. The repair yard receives a copy of this damage list as a reference only. They are responsible for creating a comprehensive repair estimate to include equipment model numbers, labor hours and an estimated completion date.