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Date: January 13, 2026
To: Honorable Mayor and Members of the City Council
From: Craig Bilezerian, Public Works Director
By: Chuck Schaich, Policy & Resources Specialist | [email protected] Subject: Public Works – Approve New Tri-Party Agreement for Usage of Recycled Water at the Torrance Refinery. Expenditure: None.
RECOMMENDATION
Recommendation of the Public Works Director that City Council approve a new tri -party agreement between the City, the Torrance Refining Company, LLC (TORC), and the West Basin Municipal Water District (WBMWD) for the continued use of recycled water at the Torrance Refinery for a five-year (5) period, beginning February 1, 2026 and ending January 31, 2031, with one optional five-year renewal period.
FUNDING
None required.
DISCUSSION
The new tri-party agreement will operate as a passthrough arrangement, with all recycled water– related costs fully reimbursed by TORC. The City of Torrance will apply an administrative fee in accordance with the City’s Recycled Water Rate Resolution. The commodity, or quantity, charge shall be equal to the current recycled water commodity charges levied to the City by WBMWD and will be adjusted as WBMWD updates its rates. Meter charges shall apply only to meters that are owned and serviced by the City, and all applicable meter charges shall be assessed in accordance with the City’s published Proposition 218 approved rates. In addition, a recycled water markup charge shall be applied in an amount equal to five (5) percent of all recycled water commodity charges levied to the City by WBMWD.
The City shall apply an administrative charge to WBMWD recycled water charges in accordance with the City’s Recycled Water Rate Resolution in effect at the time such charges are incurred, and may be amended from time to time during the term of this agreement. The total charge for all recycled water delivered to TORC, including Title 22 Recycled Water, shall consist of the applicable WBMWD volumetric water charges plus the City’s administrative charges.
The Public Works Director recommends City Council approval of the proposed tri-party agreement and all associated recycled water charges, including commodity, meter, administrative, and markup fees, to ensure the continued reliable delivery of recycled water to the Torrance Refinery.
1 City Council
January 13, 2026
ATTACHMENT
1. New Tri-Party Recycled Water Agreement (Materials Available) 2