Section 31May 25, 1973, Sec./Art. 31

Contracts. - A district shall have the power to enter into contracts with any person for the purpose of performing any functions of the district: Provided, That the Board of Directors may not by contract delegate any of the discretionary powers vested in the board by this Title. Specifically, but without limiting said general power, a district may enter into the following contracts:

(a) Cooperation. Agreement with the Government of the Philippines or any of its agencies or political subdivisions for the cooperative or joint performance of any function of the district.

(b) In-Lieu Share. As an incident to the acquisition of the existing water system of a city, municipality, or province, a district may enter into a contract to pay in lieu of taxes on such utility plant, an annual amount not exceeding three percent (3%) of the districts's gross receipts from water sales in any year.

(c) MWSS Agreement. In the event the city, municipality or province has not reached agreement with the Metropolitan Waterworks and Sewerage System pursuant to Sections 15 and 17 of R.A. 6234, a district may, with the consent of the local government, act for and in behalf of the local interests in negotiating and executing such contract for final settlement of the consequences of MWSS involvement in the operation of the water system.