(1) Promptly following the appointment of a majority of its board as provided in Section 51-10-9, the authority shall commence negotiations with the city to enter into an agreement with the authority for the transfer by lease to the authority, for use in the exercise of its corporate powers and purposes, the water system or wastewater system, or both, of the city, as the same shall then be owned by the city. Such agreement shall be for such term and upon such conditions as may be deemed desirable by the city and the authority, provided that the term of the agreement shall continue until at least the date on which all the authority’s bonds are paid in full or provision therefor shall have been made in accordance with the resolution, trust indenture or other security instrument under which the bonds were issued. To the extent not inconsistent with this chapter, such agreement may impose such limitations or conditions as may be agreed upon by and between the city and authority with respect to the power of the authority to sell or otherwise dispose of any property acquired by the authority pursuant to such agreement, and may provide for or authorize the authority to surrender to the city, any property no longer required by the authority for its public purposes.
Notwithstanding the provisions of any general, special or local law or charter to the contrary, any action taken by the city pursuant to this subsection shall not be subject to a permissive or mandatory referendum.
(2) Such agreement shall set forth the liabilities of the city which it is contemplated are to be paid by the authority from monies available to it; provided, however, that such agreement does not require the authority to assume the liabilities of the city; and provided further, notwithstanding the foregoing, that the city shall continue to be the record owner for real estate tax purposes of any facilities located outside of its municipal boundaries.
(3) Such agreement may provide for the payment by the city to the authority from any funds of the city, of such amount as may be determined appropriate for use by the authority.
(4) The city and the authority are hereby authorized and empowered to make or enter into any contracts, agreements, deeds, leases, conveyances or other instruments as may be necessary or appropriate to effectuate the purposes of this chapter, and they shall have power and authority to do all things incidental, desirable or necessary to implement the provisions of this chapter.
(5) The authority shall take possession of the water system or wastewater system, or both, of the city upon its filing of a copy of the instruments or documents effectuating the transfer authorized by this section with the clerk of the city and the Secretary of State.
(6) Any application filed or proceeding commenced under this chapter in relation to the water system or wastewater system, or both, that is transferred to the authority pending with the Mississippi State Department of Health, the Mississippi Department of Environmental Quality or any other state agency or with the United States Environmental Protection Agency or any other federal agency or instrumentality shall inure to and for the benefit of the authority and be binding upon the authority to the same extent and in the same manner as if the authority had been a party to such application or proceeding from its inception, and the authority shall be deemed a party thereto to the extent not prohibited by any federal law. Any license, approval, permit or decision under this chapter hereafter issued or granted pursuant to or as a result of any such application or proceeding shall inure to the benefit of and be binding upon the authority and shall be assigned and transferred by the city to the authority unless such assignment and transfer is prohibited by federal law.
(7) The rules and regulations of the authority may provide for the discontinuance or disconnection of the supply of water or the provision of wastewater service, or both, as the case may be, by the authority for nonpayment of fees, rates, rents or other charges imposed by the authority. A copy of all bylaws, rules and regulations and amendments thereto, duly certified by the secretary of the authority, shall be filed in the offices of the clerk of the city and the Secretary of State within three (3) months. Violation of such rules and regulations shall subject the offending party to a civil penalty in an action brought by the authority, not to exceed One Hundred Dollars ($100.00) for each day the violation continues. The Hinds County Circuit Court shall have jurisdiction to hear and determine, subject to the provisions of the Civil Practice Law and rules, any violation of such rules and regulations.
(8) The board may retain or employ counsel, auditors, engineers or other private consultants for rendering professional or technical services and advice in connection with the negotiation of the agreement of lease under this section. The state shall pay the reasonable cost and expense for such professional services on a bimonthly basis, subject to appropriations.