§ 82-1283. Contracts and agreement for purchase of district services or products.

A.  In order to accomplish the purposes of this act, any public agency, subject to any applicable restrictions of Article X, Sections 17, 26 and 27 of the Constitution of the State of Oklahoma, may enter into and carry out contracts and agreements for the purchase from the district of water, sewage and any other services or products of the district.

B.  Each such contract and agreement for the provision of water, sewer or any other services to an existing public agency shall be for such period and shall contain such other terms, conditions and provisions, not inconsistent with the provisions of this act, as the board of directors shall approve.

C.  Each such contract and agreement may be pledged by the district to secure its obligations and may provide that if one or more public agencies defaults in the payment of its obligations under such contract and agreement, the remaining public agencies having such contracts and agreements shall be required to pay for and shall be entitled proportionately to use or otherwise dispose of the products and services which were to be purchased by the defaulting public agency.

D.  Each such contract and agreement shall be a limited obligation of a public agency payable from and may be secured by a pledge of and lien and charge upon, all or any part of the revenue derived or to be derived from the ownership and operation of its own water or sewage facility or system and, if so provided in such contract or agreement, shall be an expense of operation and maintenance thereof and shall not constitute an indebtedness of the public agency for the purpose of any statutory limitation.

E.  Nothing in this act shall be construed to preclude a public agency from appropriating and using revenues received in any year to make payments due or to comply with covenants to be performed during that year under any contract or agreement entered into as contemplated in this act.

F.  Any such contract or agreement may include provisions for the sale of services of a particular project or activity or for the sale of services generally without regard to a specific project or activity, or for the supply of a specific quantity of water or other specific services, or a percentage thereof, or for the supply of water or other services based upon the requirements of the purchaser and on such other items and conditions as the board of directors and the contracting or agreeing party deem appropriate.

G.  In the event of any failure or refusal on the part of the public agency to perform punctually any covenant or obligation contained in any such contract, the district may enforce performance by any legal or equitable process, including specific performance.

Added by Laws 1985, c. 353, § 10, emerg. eff. July 30, 1985.