Port staff outline $61.2 million estimate and $10 million emergency stabilization plan for Dry Dock No. 2

Port maritime and engineering staff briefed commissioners on Jan. 13 about emergency repairs and the path to demolition for Dry Dock No. 2 (and the adjacent vessel Eureka), describing repeated listing events, uncontrolled flooding risk, and an emergency contracting effort to stabilize the structure before demolition.

Deputy Director of Engineering Wendy Proctor said the port identified recurring listing events and structural tears that have worsened after recent storms. "This most recent listing event in November created an actual emergency," Proctor said, describing auxiliary pumps, temporary piles and other measures used to manage uncontrolled flooding. She described the dry dock as roughly 900 feet long and 200 feet wide and noted the facility relies on four mooring points that are corroded.

Megan Wallace, interim deputy director of finance and administration, presented an overall cost estimate for stabilization and demolition of both Dry Dock No. 2 and the Eureka of $61,200,000. Wallace said the Port Commission previously authorized $18,500,000 (Oct. 2024) and the Port has $1,500,000 in settlement funds available, providing roughly $20,000,000 in initial resources. She said the Mayor has introduced a supplemental appropriation ordinance to the Board of Supervisors to fund the balance; staff plan to use about $10,000,000 of the initial funds for an emergency stabilization contract and set the emergency contract not‑to‑exceed amount at $10,000,000 to address immediate risks.

Proctor described the emergency procurement: staff solicited seven marine contractors, received three proposals, and identified Power Engineering Construction as the responsive proposer; the contract was in progress and staff anticipated finalizing it within the week. Port staff said the emergency stabilization work is necessary so demolition contractors can safely perform removal work later; attempting to dismantle the dry dock in its current unstable condition would be unsafe.

Commissioners probed operational details. Tim Felton, deputy director of maintenance, explained that the dry dock’s onboard pumps run on shore power (electric) and that the port supplements them with intermittent diesel pumps during high inflow events. Commissioner Steven Lee asked whether it would be cheaper to start demolition immediately; staff said stabilization is a required precursor to safe demolition and that different demolition methods require environmental permitting and further design work.

The briefing was informational. Staff said they will return to the commission with contract details and capital appropriations as the emergency stabilization proceeds and the supplemental appropriation moves through the Board of Supervisors.