Section § 5060

Explanation

This law allows districts that own or operate certain facilities, like water or sewage works, to make agreements with other cities, counties, or districts to share use of these facilities. However, these agreements must not reduce the effectiveness of the facilities, and they cannot last more than 15 years. The specific terms must be approved by ordinances of each entity involved, and the contracts shouldn't go against any rules set by the bond authorizations.

Any district owning or operating works may contract with one or more other cities, counties, sanitation districts, or sanitary districts for the use of the works, but only to the extent of their capacity and without impairing their usefulness, upon such terms and conditions as may be fixed and approved by ordinances of the respective contracting entities. Contracts shall not be made for a period of more than fifteen years nor in violation of the provisions of the ordinance authorizing the bonds.

Section § 5061

Explanation

This law allows a district's governing body to set and change rates for services provided to properties in a leased district. These rates can become a lien, or legal claim, on the serviced property's owner if not paid. The process for setting these rates and collecting the unpaid amounts is the same as what is used in districts where the service works are actually owned.

The governing body of the district may by ordinance establish, change, and adjust rates for the service rendered in the lessee-district by the works, against the owners of the premises served, in the manner provided for establishing, changing, and adjusting rates for the service rendered in the district where the works are owned and operated, and the rates constitute a lien on the property served, and shall be collected as provided for rates made by the owner-district.

Section § 5062

Explanation

This law explains that when connecting sewage systems between two districts, the necessary sewer construction can be handled by either or both districts, following the terms of their contract. The costs for the owner-district's part can be covered by bonds if the ordinance allows it.

The necessary intercepting sewers and appurtenant works for connecting the works of the owner-district with the sewerage system of the lessee-district shall be constructed by the owner-district or the lessee-district, or both, upon such terms and conditions as are set forth in the contract, and the cost or that part of the cost which is to be borne by the owner-district may be paid as part of the cost of the works from the proceeds of the bonds unless otherwise provided by the ordinance.

Section § 5063

Explanation

This law says that any income an owner-district gets from a contract can be considered part of the revenue for their works, if the ordinance allows it. The owner-district should subtract any amounts paid by the lessee-district per the contract terms from their total costs and expenses. However, they cannot charge users of the works unless the works were funded through bonds and the users gain extra benefits due to the contract. If so, any rates charged can only be enough to cover those extra benefits.

The income received by the owner-district under the contract shall, if so provided in the ordinance, be deemed to be a part of the revenue of the works. The owner-district shall deduct from the whole cost and expenses such part as shall be paid by the lessee-district pursuant to the provision of the contract; but no rates shall be imposed or collected from the users of the works or portions thereof except in cases where the works or portions thereof have been acquired by means of the bonds, and unless additional benefits will be derived by the users as a result of the contract. In that case the rates shall be only sufficient to cover the value of the additional benefits.