Validation of existing contracts. Any municipal governing body, or any agency, instrumentality or public trust of which a municipality is beneficiary thereof, or appropriate board or commission subject to the approval of the municipal governing body, may enter into and do every act necessary to carry out a contract with the United States of America or agency thereof for furnishing a municipal water supply to the municipality, all upon such terms as to use of water, payment therefor, and other conditions as may be agreed upon between the United States or agency thereof and the municipal governing body or any agency, instrumentality or public trust of which a municipality is beneficiary thereof. Incident to procuring a municipal water supply in the manner provided herein, any contract authorized by this section may provide for, but is not limited to, either or both of the following: 1. The replacement or exchange of water or water rights; or 2. The transfer or conveyance by the municipality to the United States of water, water rights, dams, easements or real or personal property of any kind whatsoever needed by the United States in connection with the construction or operation and maintenance of any such irrigation project. Any contract authorized by this section, heretofore entered into by any municipality, is hereby ratified, validated and confirmed.
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