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Report regarding two resolutions, one that includes awarding a construction contract to CLW Builders, Inc. of San Francisco, California for the Westborough Preschool Project (Project No. pf2101) in an amount not to exceed $12,721,000 among other actions and one that accepts Community Project Funding grant funds in an amount of $850,000 and approves Budget Amendment Number 26.065 for a total project budget of $16,400,000. (Jacob Gilchrist, Director of Capital Projects)
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RECOMMENDATION
Adopt two resolutions taking necessary steps including construction contract award, amending the budget, and accepting Community Project Funding grant funds to significantly further the Westborough Preschool Project (Project No. pf2101).
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BACKGROUND/DISCUSSION
In August 2025, staff presented the Westborough Preschool conceptual design to the City Council. The project is an all-new five-classroom preschool building and playground, freeing up the existing Alice Bulos Community Center and adjacent playground for other neighborhood needs. The project includes a new ADA-compliant accessible pedestrian route to the tennis courts, and a new two-stall public restroom conveniently located close to the picnic shelter and public playground.
Bid Advertisement and Procurement Process
Staff advertised a notice inviting bids on February 23, 2026. Through outreach and advertising, more than 90 contractors expressed interest. A pre-bid meeting was held on March 4, 2026, with 15 contractors in attendance.
On April 7, 2026, staff received seven bids. The lowest responsive and responsible bidder is CLW Builders, Inc. Staff verified the contractor’s license with the California State Licensing Board and found it to be in good standing.
The following is a summary of base bids received:
Contractor Base Bid Amount
CLW Builders $10,816,168.00
Bana Builders $11,082,000.00
DL Faulk $11,912,000.00
Foundry Construction $12,215,000.00
Buhler Construction $12,330,319.00
EF Brett $13,400,000.00
Arana Group $14,454,543.14
The engineer’s estimate for the base bid was $8,500,000. The lowest responsive and responsible bid is $2,316,168 (27%) above the engineer’s estimate. The project team was very surprised by the high cost of the contractors’ bids and immediately began strategizing to reduce cost impacts. Initial analysis suggests that market volatility due to uncertainties around tariffs and fuel prices likely contributed to the high bids. The project costs also may have increased due to CLW Builders, Inc. working with union contractors for all the major trades besides the electrical subcontractor.
After award of contract, staff will receive the overall project Schedule of Values from CLW. Staff intend to make changes to the project scope with the goal of reducing the project costs by at least $500,000. The project architect has developed a list of over 60 items to consider changing to reduce costs. Staff is focused on maintaining the design integrity and durability of the facility and, in collaboration with the Parks and Recreation Director, has narrowed this list to approximately 30 items. Establishing an agreement on cost reductions and confirming this with CLW is the project team’s focus for the first two months of construction.
Staff came to the overall contract award amount of $11,564,296 by recommending award of four of the six additive alternates, specifically Items 2, 3, 4a, and 5. The scope of these alternates includes connecting underground fiber optic data line from the new preschool site to the adjacent Fire Station 64, adding a building code-required photovoltaic system to the building, swapping a steel standing-seam metal roof for aluminum due to the damp conditions in the Westborough neighborhood, and including pedestrian lighting at the park’s vehicle entrances as required by the Engineering Division’s permit review.
Two alternates are not included in this scope of work. The first is a service driveway entrance to the upper ballfield from Westborough Boulevard. This work will be accomplished with a different contractor prior to the beginning of construction for the new preschool. The second alternate that was not awarded would have provided a custom-printed perimeter windscreen for the project site during construction. By not awarding these two alternates, the project costs were reduced by approximately $150,000.
Staff’s proposed construction project budget is:
Base Bid Contract Plus Add Alts 2, 3, 4a, and 5 $ 11,564,296
Construction Contingency $ 1,156,704
Total Construction Budget $12,721,000
Of the total project budget of $16,400,000, the remaining $3,679,000 covers all project soft costs, including planning, design, permits, inspections, furniture, and outreach.
Staff recommends appropriating an additional $6,550,000 in Childcare Impact Fees to cover the increased project costs. This would leave a balance of approximately $4,000,000 in available fund balance the Childcare Impact Fee Fund.
In 2025, staff submitted Community Project Funding (CPF) grant requests to Congressman Mullin’s office for funding consideration in the Consolidated Appropriations Act for Fiscal Year 2025-26, which included an $850,000 request for Westborough Preschool. In February 2026, staff was informed that the Transportation-HUD’s Appropriations bill was signed by the President, thus approving the $850,000 appropriation for Westborough Preschool. This funding is included in the project budget.
FISCAL IMPACT
The total project budget is $16,400,000. The project has been included in the City of South San Francisco’s Capital Improvement Program.
Summarized fiscal changes made through the adoption of the resolutions associated with this staff report: Westborough Preschool previously received $9 million in appropriations over the last three fiscal years. Staff recommend utilizing a combined total of $15,550,000 of Childcare Impact Fees (prior $9M and additional $6.55M) and accepting the $850,000 Community Project Funding grant for a total budget of $16,400,000.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Approval of this action will support the Westborough Preschool project Activity/Initiative within the Continue implementing the Childcare Master Plan Key Strategy of the Quality of Life Major Focus Area of the City Council’s 2026 Priorities Action Plan.
ATTACHMENTS
1. Presentation
ASSOCIATED DOCUMENTS
Resolution 26-1534
Resolution 26-1746