CONTRACTS TO SUPPLY WATER

(a) The authority may contract with public agencies or political subdivisions, including the cities, to supply water to them. The authority may sell water inside or outside the boundaries of the authority. (b) Contracts under Subsection (a) may provide that the contractual payments by the political subdivisions: (1) will be payable from revenue or the imposition of taxes or both; and (2) will constitute the purchase of the authority's system at the time all indebtedness incurred by the authority for acquisition, construction, improvement, and extensions of the system is paid in full. (c) The authority may contract with a public agency or political subdivision for the rental or leasing of or for the operation of the water supply, water, and filtration or purification facilities of the entity for the consideration agreed to by the authority and the entity. (d) A contract under Subsection (a) or (c) may: (1) be on the terms and for the time agreed to by the parties; and (2) provide that it will continue in effect until bonds specified in it and refunding bonds issued in lieu of the bonds are paid. (e) The authority may enter into contracts or agreements with the Nueces River Authority and the City of Corpus Christi for the purchase of water. (f) The authority and the City of Corpus Christi may enter into contracts or agreements for the sale of water and the operation and maintenance of the authority's water lines if considered advisable. (g) Public agencies or political subdivisions of this state, including the cities, may enter into contracts or agreements with the authority for a water supply. (h) Approval, notice, consent, or an election is not required in connection with a contract or agreement described by Subsection (e), (f), or (g).