Section 1085. Contracts for sale of water wholesale

Any municipality is
  hereby authorized to contract with the authority  for  the  purchase  of
  water  from the authority at wholesale for a period not exceeding thirty
  years except that, in the case of a fire protection district or  a  fire
  alarm  district such period shall not exceed five years, and in the case
  of a fire district,  such  period  shall  not  exceed  ten  years.  Such
  contract  shall  provide  that  the  liability of such purchaser for the
  payment of any sums pursuant to such contract shall arise only  at  such
  time  as  such water has been actually delivered to such purchaser. Such
  contract shall state the rates, fees or charges  to  be  paid  for  such
  water,  shall  provide  for the adjustment thereof either by increase or
  decrease from time to time by mutual agreement of the  parties  thereto,
  subject  however  to  any  provisions contained in any resolution of the
  authority authorizing obligations relating to the imposition  of  rates,
  fees  or  charges  and  the revision or adjustment thereof. Prior to the
  execution of such contract the governing board  of  any  such  purchaser
  shall  call  a  public  hearing  to  consider the subject matter and the
  desirability of the execution of the proposed contract and shall publish
  notice thereof in a newspaper of general circulation in the  territorial
  boundaries  of  such  purchaser, at least once and not less than fifteen
  days before the date of such public hearing. Such notice  shall  briefly
  state  the  terms  of  the  proposed contract, the date and place of the
  public hearing and further  state  that  at  such  time  and  place  the
  governing  board  will hear all persons interested. If after considering
  the evidence adduced at such hearing, such governing body shall conclude
  that the execution of such contract is in the  public  interest  it  may
  authorize  the execution thereof by the adoption of a resolution to such
  effect.