Section 265. Contracts

a.  The  administrative  head  or  body,  where
  applicable, may contract (1) for the purchase,  from  any  legal  entity
  having  water  available, of any quantity of water for resale within the
  water district on either a wholesale or retail  basis,  subject  to  the
  approval  of the contract by the county legislative body, or (2) for the
  collection, conveyance, treatment  or  disposal  of  sewage,  wastewater
  disposal,  water  quality  treatment residuals, drainage and refuse with
  any  public  corporation  or  any  county  or  town  on  behalf  of  any
  improvement  district and also with any other sewer district, wastewater
  disposal  district,  water  quality  treatment   district   or   private
  corporation.  If  the county drainage district has capacity in excess of
  its own  needs,  the  county  legislative  body  may  contract  for  the
  conveyance   of   storm   water  and  other  waters,  both  surface  and
  sub-surface, from municipalities, districts and  persons,  corporate  or
  otherwise, outside the drainage district.
    If  a  Suffolk county sewer district has capacity in excess of its own
  needs,  the  administrative  head  may  contract  with   municipalities,
  districts,  public  or  private  corporations,  or individuals within or
  without the  district  for  the  collection,  conveyance,  treatment  or
  disposal of sewage including scavenger waste.
    b.  Upon the adoption of a resolution, the administrative head or body
  of a district, with the approval of the  county  legislative  body,  may
  enter  into  such  contracts, as it may deem necessary, with any person,
  corporation or association for the purpose of ensuring that the cost  of
  the  county  district  will  not  constitute  an  undue  burden upon the
  property within such district and may require the  filing  of  a  surety
  bond  or  bonds  or  the  deposit  of cash or securities with the county
  treasurer to ensure the performance of such contracts.