N.Y. CNT Law § 265

§ 265. Contracts. a. The administrative head or body, where\napplicable, may contract (1) for the purchase, from any legal entity\nhaving water available, of any quantity of water for resale within the\nwater district on either a wholesale or retail basis, subject to the\napproval of the contract by the county legislative body, or (2) for the\ncollection, conveyance, treatment or disposal of sewage, wastewater\ndisposal, water quality treatment residuals, drainage and refuse with\nany public corporation or any county or town on behalf of any\nimprovement district and also with any other sewer district, wastewater\ndisposal district, water quality treatment district or private\ncorporation. If the county drainage district has capacity in excess of\nits own needs, the county legislative body may contract for the\nconveyance of storm water and other waters, both surface and\nsub-surface, from municipalities, districts and persons, corporate or\notherwise, outside the drainage district.\n If a Suffolk county sewer district has capacity in excess of its own\nneeds, the administrative head may contract with municipalities,\ndistricts, public or private corporations, or individuals within or\nwithout the district for the collection, conveyance, treatment or\ndisposal of sewage including scavenger waste.\n b. Upon the adoption of a resolution, the administrative head or body\nof a district, with the approval of the county legislative body, may\nenter into such contracts, as it may deem necessary, with any person,\ncorporation or association for the purpose of ensuring that the cost of\nthe county district will not constitute an undue burden upon the\nproperty within such district and may require the filing of a surety\nbond or bonds or the deposit of cash or securities with the county\ntreasurer to ensure the performance of such contracts.\n