She had been resting on the bottom of the channel. It was discovered that she was causing damage to a underwater watermain that she was resting on.
She was moved to the location in the photo in January of 1993 and Dutra Construction Co, of San Rafael, CA under contract with the U.S. Army Corps of Engineers for $256,840 (because Army Corps officials were unable to determine the legal owner), lifted the ship off the bottom and carried it in the water to their dock about 1/4 mile on the other side of the bridge in the background of the photo. Then they put the ship up on shore and broke it up. This took about a week.
From John O'Leary:
Tell everyone that the fact is that I tried to save this MSO, and in trying, I was the only one with a Army permit acquired to do so, and I was on the ship that at the time had no people as tentants on her and she was not setteled in mud. When I pumped it out, she was off the bottom and never was causing damage to a underwater watermain, she was never at any time resting on this, just was a way of the city, that did not know what they were doing, as the newspaper came in on this matter to do a story on this. And so Dick try to see that we just wanted everyone to know that if you do this for the Embattle she will never be gone from the ones that miss her and I loved her very much....John O'Leary
The above information courtesy of Dale Webb and John O'Leary.