Budget committee forwards Marina Improvement and Remediation Project to full board

The Budget and Finance Committee on March 19 voted to forward a resolution to the full Board of Supervisors finding the Marina Improvement and Remediation Project fiscally feasible under San Francisco Administrative Code Chapter 29.

Monica Scott, project manager for the Recreation and Parks Department, told the committee the project stems from a final settlement agreement following years of litigation with Pacific Gas and Electric and has three stated goals: environmental remediation, a fiscally sustainable marina and increased public access to the water.

Scott said the remediation work would include dredging and capping parts of the East Harbor, installation of an onshore reactive barrier, on- and offshore monitoring during and after construction, and institutional controls to protect the site after construction. The project also proposes a breakwater in the West Harbor, reinstallation of slips removed because of sedimentation, a potential fuel-dock relocation, added pedestrian access and a breakwater extension in the East Harbor, reconfigured docks and a community dock for non-motorized craft.

The project’s total estimated cost, including contingencies, is $188 million. Under the settlement agreement with PG&E, PG&E will pay up to $190 million in project costs; the Recreation and Parks Department would be responsible for repaying up to $29.4 million over 30 years, with payments starting three years after project completion. Monica Scott said all city payments are to be made exclusively from marina revenues and that planned rate increases in the East Harbor are expected to make revenues sufficient to cover the PG&E-related debt service and marina operating costs.

Nick Menard of the Budget and Legislative Analyst’s Office told the committee the office examined benefits, total costs, funding sources and maintenance costs and concluded that marina revenues are sufficient to pay the $29.4 million the city would owe and that maintenance costs are expected to decline after construction. The analyst recommended approval of the fiscal-feasibility finding.

Scott said the department conducted a robust public outreach process with five community meetings, stakeholder briefings and surveys and reported broad community support after modifications to the plan following an ordinance the board passed in February 2024. She said the department will proceed to environmental review and multi-agency permitting; construction cannot begin until those steps are complete. Scott estimated the environmental review would take roughly 22 to 24 months.

During public comment one resident raised unrelated concerns about smart meters and urged more urban gardening in parks; the resident’s remarks were not about the project’s fiscal or environmental details. The department said it maintains a project website and e-mail updates for nearly 1,000 subscribers and expects to issue updates monthly or at least quarterly when progress occurs. The department also said it will return to the Recreation and Park Commission for CEQA findings and eventual contract approval.

Supervisor Connie Chan moved the item to the full board with a positive recommendation. The committee recorded Vice Chair Matt Dorsey, Supervisor Joel Engadio and Chair Connie Chan voting aye; the motion passed 3–0.

The committee’s action forwards the fiscal-feasibility finding; environmental review, permitting and contract decisions remain to come at later hearings.