Sec. 16. Contracts with federal and municipal governments.
   The town, by its town council, when so directed by the electors in town meeting, is authorized to contract with the United States of America and with any other city or town in this state, or with the State of Rhode Island, and any other city or town in this state and the State of Rhode Island are authorized to contract with the Town of Middletown, on such terms as may be mutually agreed upon between them, for the purpose of securing adequate sewer outlets, rights of way and other easements for the Town of Middletown and for the general purposes of construction, maintenance and operation of a sewerage works and the utilization or other disposition of the sewage therefrom. (P.L. 1958, ch. 138, § 1.)