Request for Proposals (RFP) for Combined Services to Achieve Rate Relief Timeline 
Actions and Updates:

UPDATED INFORMATION 
January 28, 2026

TCWD Board Votes to Explore Consolidation Proposal from IRWD and SMWD

Trabuco Canyon, CA – At its January 21, 2026 regular meeting, the Trabuco Canyon Water District (TCWD) Board of Directors voted to move forward with evaluating a potential consolidation with Irvine Ranch Water District (IRWD) and Santa Margarita Water District (SMWD).

This action follows the presentation of preliminary consolidation terms jointly proposed by IRWD and SMWD in response to TCWD’s 2025 request for proposals aimed at providing rate relief and long-term service sustainability for customers.

Key Elements of the Presentation

Key elements of the presentation include a 20% reduction in rates to be effective upon a final LAFCO action approving consolidation.  Rates would then track changes in the receiving agencies’ rates.  A valuation of assets and liabilities, including needed infrastructure costs to meet IRWD or SMWD service standards, would determine an amount of money that would continue to be TCWD customers’ responsibility, after which regular IRWD or SMWD rates would apply.  All existing TCWD staff would be offered employment at SMWD. 

The presentation emphasized the preliminary nature of the proposal, noting that IRWD and SMWD sought TCWD’s Board’s concurrence in the potential viability of the overall concept before undertaking considerable further work to develop an actual plan. 

Commitment to Transparency and Public Input

While this vote marks progress, no final decisions have been made. The consolidation process will involve in-depth financial, legal, and operational evaluations over the coming year, with ample opportunities for public input and review.

Next Steps

• A tri-agency Ad Hoc Committee will refine the consolidation framework
• Ongoing due diligence and analysis by all three agencies
• Continued outreach to keep customers informed and involved

TCWD remains committed to a thorough and transparent evaluation process that prioritizes customer benefit, service quality, and financial sustainability.

For more information, please contact General Manager Larry McKenney, at lmckenney@tcwd.ca.gov.  You're also welcome to join us at our next Community Chat Forum in late February to share any questions or concerns you may have.

UPDATED INFORMATION 
Post Date: 12/19/2025 

Trabuco Canyon, CA – The Trabuco Canyon Water District (TCWD) is pleased to announce the receipt of a formal joint response from Irvine Ranch Water District (IRWD) and Santa Margarita Water District (SMWD) to TCWD’s recent request for proposals (RFP). This milestone marks a significant and positive step forward in TCWD’s continued efforts to explore cost-saving opportunities and potential rate relief for its customers.

Over the past several months, TCWD has engaged with neighboring agencies to explore innovative ways to maintain high-quality water and wastewater services while addressing rising costs. In response to TCWD’s invitation, IRWD and SMWD have conducted initial due diligence and presented a collaborative framework that outlines potential benefits through consolidation.

Key highlights from the IRWD and SMWD response include:

• Potential for meaningful short- and long-term rate relief compared to TCWD’s current and forecasted rates.
• Economies of scale and the potential to reduce costs from duplicative external contracted services.
• Recognition of TCWD’s beneficial assets and past investments.
• Commitment to service reliability, customer care, and employee transition planning.
• A governance approach that provides representation for TCWD residents.

“This is an encouraging development,” said Board President Mark Anderson. “The willingness of IRWD and SMWD to work collaboratively reflects our shared commitment to doing what’s best for our ratepayers.”

The joint letter from IRWD and SMWD signals a strong interest in continuing discussions through a tri-agency Ad Hoc Committee, with a goal of further refining the framework into a formal proposal for review in early 2026 and/or consider opportunities for shared services.

It’s important to note that no decisions have been made at this time. This process remains in the evaluation and information-gathering phase. TCWD is committed to transparency, community engagement, and a thorough public review before any formal action is taken.

What’s Next?

• Continued discussions between TCWD, IRWD, and SMWD in early 2026
• Evaluation of the proposed framework by TCWD’s Board of Directors
• Ongoing community outreach and updates throughout the process

TCWD remains committed to finding innovative, responsible, and community-focused solutions that support affordability, sustainability, and service excellence.

For more information, please contact Interim General Manager Michael Perea at mperea@tcwd.ca.gov.

UPDATED INFORMATION 
Post Date: 09/10/2025

• April 28, 2025 Special Board Meeting
  • Resolution No. 2025-1347: Authorizing the General Manager to Issue a Request for Proposals for Combined Services to Achieve Rate Relief. The Resolution can be accessed here
• TCWD email communications to customers
  • TCWD issued a news release to customers describing action taken at the April 28th Special Board Meeting. The news release can be accessed here.
• April 30, 2025 – TCWD & SMWD Shared Services Meeting
• May 12, 2025 – TCWD Issues Request for Proposals for Combined Services to Achieve Rate Relief. The RFP can be accessed here
• June 18, 2025 Regular Board Meeting Update
  • General Manager (GM) provided an oral update, reporting that the RFP for Combined Services had been issued on May 12 and that TCWD received a joint response letter from Irvine Ranch Water District (IRWD) and Santa Margarita Water District (SMWD) expressing potential interest in a formal response to the RFP at a future date. The response letter can be access here. The GM also reported that a meeting with IRWD and SMWD staff had been scheduled to discuss water supply assistance.
• June 20, 2025 – TCWD Email Communication to Customers
  • TCWD issued a news release to customers providing an update on the RFP process to date. The news release can be accessed here.
• June 30, 2025 – TCWD, IRWD, & SMWD Summer Demand Supply Assistance Meeting
• July 16, 2025 Regular Board Meeting Update
  • TCWD Board President provided an oral update on the RFP process, reporting that he had communicated with the Board Presidents of both IRWD and SMWD, and that both agencies were actively working on an analysis supporting a potential proposal in response to the RFP. The GM reported that TCWD, IRWD, and SMWD were working on scheduling a meeting to discuss a timeline for the RFP process.
• August 20, 2025 Regular Board Meeting Update
  • The GM reported that an informal, board-level (ad hoc) meeting between TCWD, IRWD and SMWD (two directors from each agency) had been scheduled for September 4, 2025 to discuss expectations regarding the timeline and objectives of the RFP process. GMs of each agency would also attend.
• September 4, 2025 Meeting: TCWD, IRWD, & SMWD Joint Ad Hoc Committee
  • TCWD Board President Ed Mandich and Director Mark Anderson met with two directors from both IRWD and SMWD, as well as each agency’s GM. The meeting resulted in a consensus around the following timeline (subject to change):
    • October 2025: Completion of analysis by IRWD and SMWD 
    • November 2025: Review and consideration of analysis by SMWD and IRWD’s Board of Directors
    • December 2025: Presentation and discussion of conceptual proposal with TCWD Ad Hoc Committee

PREVIOUS UPDATES
Post Date: 06/20/2025

The Trabuco Canyon Water District (TCWD) Board of Directors continues to take steps toward exploring potential strategies for reducing customer water rates while maintaining service quality and long-term system reliability.

On June 10, 2025, TCWD received a joint letter from Irvine Ranch Water District (IRWD) and Santa Margarita Water District (SMWD) in response to TCWD’s Request for Proposals (RFP) issued in May. In the letter, both IRWD and SMWD expressed their shared interest in working collaboratively with TCWD to evaluate options that may offer rate relief to TCWD customers.

The letter outlines a commitment by IRWD and SMWD to engage in a structured due diligence process with TCWD. This process will include gaining a more detailed understanding of TCWD’s operations and financial position, followed by discussions on whether any mutually beneficial strategies could be developed. Potential outcomes may include separate or joint proposals from IRWD and SMWD, though no specific direction has been determined at this early stage.

It is important to note that this is an information-gathering phase only. TCWD has not made any decisions regarding shared services, operational contracts, annexation, or other governance changes. The intent is to assess all possible options that could support cost savings for ratepayers, without compromising service quality or system reliability.

As part of their proposal initial response, IRWD and SMWD signaled interest in forming a joint Board Ad Hoc Committee to begin discussions and identify a framework for evaluating potential support opportunities. TCWD is open to continuing these collaborative conversations while maintaining a clear commitment to transparency, public involvement, and thoughtful evaluation.  While no specific timeline for the receipt of proposals has been established at this time, TCWD anticipates that this phase of the process will take several months. TCWD is committed to providing our customers with timely progress updates.

At the June meeting, the Board directed the General Manager to reach out to his respective counterparts at each agency to further collaborate on this matter.

For more information, please contact General Manager Fernando Paludi (fpaludi@tcwd.ca.gov).

Post Date: 04/30/2025

At its April 28, 2025 meeting, the Trabuco Canyon Water District (TCWD) Board of Directors approved a resolution authorizing staff to issue a Request for Proposals (RFP) to neighboring water districts. This action is part of the District’s ongoing efforts to explore many ways to provide rate relief for TCWD customers while maintaining high-quality services and ensuring long-term system reliability.

It is important to clarify that this action is solely for information-gathering purposes. The Board's approval does not initiate any consolidation or annexation process with another water district. Instead, it simply authorizes the General Manager to solicit proposals and ideas from neighboring agencies regarding possible service-sharing options that could lead to cost savings and benefits for TCWD ratepayers.

Any proposals received will be carefully evaluated against key criteria, including:

• Achieving meaningful rate relief for customers
• Maintaining or enhancing service quality
• Ensuring continued local representation
• Supporting employee retention within TCWD

The District will consider a range of options — such as combined or shared services, contract operations, or other innovative approaches — but no decisions will be made without public input and further Board deliberation.

TCWD remains committed to safeguarding the interests of its customers and ensuring that any future actions align with the District’s mission of providing reliable, high-quality water and wastewater services.

For more information, please contact General Manager Fernando Paludi (fpaludi@tcwd.ca.gov).

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