Arkansas § 14-235-212 - Contracting with other political subdivisions.

§ 14-235-212. Contracting with other political subdivisions.

Any municipality operating a sewage collection system or sewage disposal works as defined in this subchapter or which, as provided in this subchapter, has ordered the construction or acquisition of such works, in this section called the “owner”, is authorized to contract with one (1) or more other cities, towns, or political subdivisions within the state, in this section called the “lessee”. The lessees are authorized to enter into contracts with the owners, for the service of such works to the lessees and their inhabitants, but only to the extent of the capacity of the works without impairing the usefulness of them to the owners, upon such terms and conditions as may be fixed by the sewer committee or sanitary board and approved by ordinance of the respective contracting parties. No such contract shall be made for a period of more than thirty (30) years, in violation of an ordinance authorizing bonds under this subchapter, or in violation of the trust indenture. The lessee shall, by ordinance, have power to establish, change, and adjust, so far as will not impair the rights of bondholders, rates and charges for the service rendered by the works against the owners of the premises served, in the manner provided in § 14-235-223 for establishing, changing, and adjusting rates and charges for the service rendered in the municipality where the works are owned and operated, and the rates or charges shall be collectible and shall be a lien as provided in § 14-235-223 for rates and charges made by the owner. The necessary intercepting sewers and appurtenant works for connecting the works of the owner with the sewerage system of the lessee shall be constructed by the owner or the lessee upon such terms and conditions as may be set forth in the contract, and the cost, or that part of the cost of them which is to be borne by the owner, may be paid as a part of the cost of the works from the proceeds of bonds issued under this subchapter unless otherwise provided by the ordinance or trust indenture prior to the issuance of the bonds. The income received by the owner under any such contract, if so provided in the ordinance or trust indenture, shall be deemed to be a part of the revenues of the works as defined in this subchapter and shall be applied as provided in this subchapter for the application of such revenues.