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Committee backs $18.5 million Port appropriation to stabilize failing dry dock

San Francisco Board of Supervisors Budget and Finance Committee · February 11, 2026

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Summary

The committee recommended the Board approve a supplemental $18.5 million appropriation from the Port Harbor Fund to stabilize, remove and dispose of failing dry docks at Pier 68 and fund related shipyard safety measures; Port staff said Dry Dock Number 2 was taking on water.

The Budget and Finance Committee on Feb. 11 voted to send to the Board an ordinance appropriating approximately $18.5 million from the Port Harbor Fund for stabilization, removal and disposal of the Port’s dry docks and shipyard safety improvements.

Megan Wallace, Interim Deputy Director of Finance and Administration for the Port of San Francisco, told the committee that Dry Dock Number 2 at Pier 68 was “taking on water,” prompting an emergency declaration earlier this year. The appropriation supplements $1.5 million in settlement funds to create roughly $20 million this fiscal year to begin stabilization work; the Port plans to request an additional $41.2 million in the following fiscal year so the total program would reach about $61.2 million.

Nick Menard of the Budget and Legislative Analyst’s office said the Harbor Fund balance would fall from about $190 million to about $170 million after the appropriation and recommended approval. No public speakers addressed the committee on this item.

The committee voted to forward the ordinance to the full Board with a positive recommendation.