HEALTH AND SAFETY CODE
SECTION 5060-5063
5060.  Any district owning or operating works may contract with oneor more other cities, counties, sanitation districts, or sanitarydistricts for the use of the works, but only to the extent of theircapacity and without impairing their usefulness, upon such terms andconditions as may be fixed and approved by ordinances of therespective contracting entities. Contracts shall not be made for aperiod of more than fifteen years nor in violation of the provisionsof the ordinance authorizing the bonds.5061.  The governing body of the district may by ordinanceestablish, change, and adjust rates for the service rendered in thelessee-district by the works, against the owners of the premisesserved, in the manner provided for establishing, changing, andadjusting rates for the service rendered in the district where theworks are owned and operated, and the rates constitute a lien on theproperty served, and shall be collected as provided for rates made bythe owner-district.5062.  The necessary intercepting sewers and appurtenant works forconnecting the works of the owner-district with the sewerage systemof the lessee-district shall be constructed by the owner-district orthe lessee-district, or both, upon such terms and conditions as areset forth in the contract, and the cost or that part of the costwhich is to be borne by the owner-district may be paid as part of thecost of the works from the proceeds of the bonds unless otherwiseprovided by the ordinance.5063.  The income received by the owner-district under the contractshall, if so provided in the ordinance, be deemed to be a part of therevenue of the works. The owner-district shall deduct from the wholecost and expenses such part as shall be paid by the lessee-districtpursuant to the provision of the contract; but no rates shall beimposed or collected from the users of the works or portions thereofexcept in cases where the works or portions thereof have beenacquired by means of the bonds, and unless additional benefits willbe derived by the users as a result of the contract. In that case therates shall be only sufficient to cover the value of the additionalbenefits.