§ 1085. Contracts for sale of water wholesale. Any municipality is
hereby authorized to contract with the authority for the purchase of
water from the authority at wholesale for a period not exceeding thirty
years except that, in the case of a fire protection district or a fire
alarm district such period shall not exceed five years, and in the case
of a fire district, such period shall not exceed ten years. Such
contract shall provide that the liability of such purchaser for the
payment of any sums pursuant to such contract shall arise only at such
time as such water has been actually delivered to such purchaser. Such
contract shall state the rates, fees or charges to be paid for such
water, shall provide for the adjustment thereof either by increase or
decrease from time to time by mutual agreement of the parties thereto,
subject however to any provisions contained in any resolution of the
authority authorizing obligations relating to the imposition of rates,
fees or charges and the revision or adjustment thereof. Prior to the
execution of such contract the governing board of any such purchaser
shall call a public hearing to consider the subject matter and the
desirability of the execution of the proposed contract and shall publish
notice thereof in a newspaper of general circulation in the territorial
boundaries of such purchaser, at least once and not less than fifteen
days before the date of such public hearing. Such notice shall briefly
state the terms of the proposed contract, the date and place of the
public hearing and further state that at such time and place the
governing board will hear all persons interested. If after considering
the evidence adduced at such hearing, such governing body shall conclude
that the execution of such contract is in the public interest it may
authorize the execution thereof by the adoption of a resolution to such
effect.