District seeks financing to replace failing chiller plant serving Rancho Bernardo High and Bernardo Heights Middle

Poway Unified School District officials told the board Jan. 23 that a unique, district‑shared central chiller plant serving Rancho Bernardo High School (RBHS) and Bernardo Heights Middle School has suffered increasing failures and needs a full replacement.

Ruben Aris, the district’s director of facilities maintenance and operations, said staff and consultants selected an air‑cooled heat‑pump approach to replace aging equipment and modernize the system. The design has received Division of the State Architect (DSA) approval, Aris said, and most hydronic piping replacement plans are ready for construction.

“Our design is approved for DSA and ready for construction,” Aris said. He told trustees the team has used value engineering to reduce scope and cost but still faces a construction funding gap. “We have $8.5 million remaining after design and continuing repairs; we’ll likely need another $12 to $15 million in capital financing to move the program forward,” he said.

Mark Richards, a senior mechanical engineer with P2S Engineering on the project team, described the system as large and technically complex and said the team expects an about‑18‑month construction window once work begins. Consultants noted earlier bids came in significantly higher than initial estimates; staff said equipment pricing had stabilized somewhat but that market and wildfire‑related construction inflation remain risks.

Trustees pressed staff on cost assumptions, inflation risk and financing choices. One trustee asked whether the prior lease‑leaseback procurement model contributed to the higher price; staff said direct, competitively bid procurement could reduce premiums but carries timing tradeoffs. The presenter said preliminary equipment pricing was “under $15 million” but that full turnkey costs — including piping, site work and contingencies — push the total higher.

District staff outlined possible next steps: refine cost estimates with current market pricing, price middle‑school piping scope that was not fully included in the original design, phase the work to allow schools to remain open, and either pursue a competitive public bid or return to a lease‑leaseback procurement. Staff said they would present a financing package and refined estimates at an upcoming board meeting and attempt to start front‑end procurement processes so construction could begin as early as summer 2025 if the board concurs.

The board did not take formal action on the replacement project on Jan. 23 but directed staff to return with more narrowly defined cost and financing options at the next meeting and at the Feb. 6 budget workshop.

What happens next: staff will refine current‑market cost estimates, evaluate phased construction plans to maintain campus operations during work, and present a financing proposal for board consideration at an upcoming meeting.