North Dakota Code 40-33-16 – Municipality may purchase water for distribution
1. Any city owning a system for the distribution of water for fire protection and other public purposes and for selling water to its inhabitants and industries, but for which the water supply is unsuitable or inadequate, may contract to purchase water at wholesale for those purposes from any person, firm, public or private corporation, or limited liability company able and willing to furnish the same, upon the terms and during the period, not exceeding forty years, as the city governing body deems appropriate. The contract must be authorized by an ordinance submitted to the voters for approval by a majority of those voting on the proposition before it takes effect. Pursuant to the ordinance and contract, the city may bind itself:
Terms Used In North Dakota Code 40-33-16
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
a. To establish and maintain rates and charges for supplying water by it to its inhabitants and industries, either according to a prescribed schedule agreed upon or sufficient to produce net stated amounts for specified periods during the life of the contract, or both, and to appropriate and use the same for payments to become due under the contract, and, if the contract so provides, the city is obligated to pay for the water solely out of the net revenues; b. To pay, at an agreed rate or rates, for all water taken by the city under the contract and not resold by it; and
c. To do and perform any other acts or things the governing body deems reasonable and appropriate for the procurement of the water on the most efficient and economical basis.
2. Notwithstanding subsection 1, contracts to purchase water from the water supply system created by the Red River valley water supply project may have a term exceeding forty years and, if executed in relation to the initial construction of the system, need not be submitted to the voters for approval.
3. If any payments under any contract are to be made solely out of net revenues, the contract may fix and prescribe the method or basis on which net revenues are to be computed.