Contracts between public agencies and authority

Miss. Code Ann. § 51-10-31, under Metro Jackson Water Authority Act.

Miss. Code Ann. § 51-10-31

(1) Any public agency, pursuant to a duly adopted resolution of its governing body, may enter into contracts with the authority under the terms of which the authority will manage, operate and contract for usage of the agency’s systems and facilities, or other services, for such public agency.

(2) Any public agency may enter into contracts with the authority for the authority to purchase or sell, by installments over such terms as may be deemed desirable, or otherwise, to any person or any systems. Any public agency may sell, donate, convey or otherwise dispose of water and wastewater facilities or systems, or any equipment, personal property or other things deemed necessary for the construction, operation and maintenance thereof, to the authority without the necessity of appraisal, advertising or bidding. This section creates an alternative method of disposal of public property.

(3) Any public agency is authorized to enter into operating agreements with the authority, for such terms and upon such conditions as may be deemed desirable, for the operation of any of its systems by the authority or by any person contracting with the authority to operate such systems.

(4) Any public agency may lease any of its systems to or from the authority, for such term and upon such conditions as may be deemed desirable.

(5) Any municipality or county may donate office space, equipment, supplies and materials to the authority.

(6) Contracts under this section may contain provisions requiring any public agency to regulate the quality and strength of the material to be handled by the wastewater systems and may also provide that the authority shall have the right to use any streets, alleys and public ways and places within the jurisdiction of a public agency during the term of the contract. Such contracts may obligate the public agency to make payments to the authority or to a trustee in amounts which shall be sufficient to enable the authority to defray the expenses of administering, operating and maintaining its respective systems, to pay interest and principal (whether at maturity, upon redemption or otherwise) on bonds of the authority issued under this chapter, and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, to fulfill the requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security instrument relating to the bonds of the authority issued under this chapter or to fulfill any other requirement relating to bonds issued pursuant to this chapter.

(7) All public agencies shall have the power to enter into contracts with the authority as deemed in the best interest of the public agency, according to the discretion of the governing body of the public agency, would be in the best interest of the public agency. Such contracts may include a pledge of the full faith and credit of the public agency and/or the avails of any special assessments made by the public agency against property receiving benefits, as now or hereafter provided by law. Any such contract may:(a) Provide for the sale or lease to, or use by, the authority, of the systems or any part thereof, of the public agency;(b) Provide that the authority shall operate its systems or any part thereof of the public agency;(c) Provide that the public agency shall have the right to continued use and/or priority use of the systems or any part thereof during the useful life thereof upon payment of reasonable charges therefor;(d) Contain provisions to assure equitable treatment of public agencies contracting with the authority under this chapter; and(e) Contain such other provisions and requirements as the parties thereto may determine to be appropriate or necessary. Such contracts may extend over any period of time, notwithstanding any provisions of law to the contrary, and may extend beyond the life of the respective systems or any part thereof or the term of the bonds sold with respect to such facilities or improvements.

(a) Provide for the sale or lease to, or use by, the authority, of the systems or any part thereof, of the public agency;

(b) Provide that the authority shall operate its systems or any part thereof of the public agency;

(c) Provide that the public agency shall have the right to continued use and/or priority use of the systems or any part thereof during the useful life thereof upon payment of reasonable charges therefor;

(d) Contain provisions to assure equitable treatment of public agencies contracting with the authority under this chapter; and

(e) Contain such other provisions and requirements as the parties thereto may determine to be appropriate or necessary. Such contracts may extend over any period of time, notwithstanding any provisions of law to the contrary, and may extend beyond the life of the respective systems or any part thereof or the term of the bonds sold with respect to such facilities or improvements.

(8) The obligations of a public agency arising under the terms of any contract referred to in this chapter, whether or not payable solely from a pledge of revenues, shall not be included within the indebtedness limitations of the public agency for the purpose of any constitutional or statutory limitation or provision. To the extent provided in such contract and to the extent such obligations of the public agency are payable wholly or in part from the revenues and other monies derived by the public agency from the operation of its systems or of its combined systems, or any part thereof, such obligations shall be treated as expenses of operating such systems.

(9) Contracts referred to in this section may also provide for payments in the form of contributions to defray the cost of any purpose set forth in such contracts and as advances for the respective systems or any part thereof subject to repayment by the authority. A public agency may make such contributions or advances from its general fund or surplus fund, from special assessments or from any monies legally available therefor.

(10) Subject to the terms of a contract or contracts controlled by this chapter, the authority is hereby authorized to do and perform all acts necessary, convenient or desirable to carry out the purposes of such contracts, including fixing, charging, collecting, maintaining and revising rates, fees and other charges for the services rendered to a user of any of the systems operated or maintained by the authority, whether or not such systems are owned by the authority.

(11) No provision of this chapter shall be construed to prohibit any public agency otherwise permitted by law to issue bonds from issuing bonds in the manner provided by law for the construction, renovation, repair or development of any systems or any part thereof.