2006 Utah Code - 17A-2-1414 — Who may enter into contracts -- Permissible purposes of contracts -- Agreements and leases -- Elections for water purchase contracts.

     17A-2-1414.   Who may enter into contracts -- Permissible purposes of contracts -- Agreements and leases -- Elections for water purchase contracts.
     (1) Any water conservancy district and any incorporated municipality located within or without the boundaries of the district or other district created under any law of this state are expressly authorized and empowered to enter into contracts with each other and with any other person or corporation, public or private, for any of the following purposes:
     (a) the joint operation of water facilities owned by any district or municipality;
     (b) the exchange of water, water rights, or facilities;
     (c) the leasing of water or water facilities; or
     (d) the sale of water.
     (2) (a) Any agreement about the operation or use of water facilities owned by a municipality or district by another municipality or district, the joint operation of facilities, or the lease of water or water facilities, may provide for the joint use of water facilities owned by one of the contracting parties under appropriate arrangements for reasonable compensation.
     (b) Any agreement may provide for the renting or loan of water by one contracting party to the other or for the sale of water by one party and its purchase by another. No limitation contained in any existing law requiring the water of any district to be supplied to its own residents on a priority basis shall be applicable to any contract made under this section.
     (c) Any contract for the sale of water may run for a term of years as may be specified. The contract may require the purchasing party to pay for a minimum amount of water annually, provided the water is available, without regard to actual taking or use. The contract may provide for the payment for water sold or contracted to be sold from any of the following sources of revenue:
     (i) the general funds or other funds of the purchasing municipality or district;
     (ii) the proceeds of class B assessments imposed under the Water Conservancy Act;
     (iii) the proceeds of water distributed and sold through the distribution system of the purchasing district or municipality; or
     (iv) any combination of these sources of payment.
     (d) The governing body of any municipality agreeing to purchase water under a contract, for the purpose of complying with any pertinent constitutional requirement or for any other reason, may call an election for that purpose. The election shall be conducted in the manner provided in Title 11, Chapter 14, Local Government Bonding Act.

Amended by Chapter 105, 2005 General Session