(b) The water board and its corporate existence shall continue until terminated by law, provided, however, that no such law shall take effect so long as the water board shall have contractual duties or obligations outstanding unless adequate provision has been made for the satisfaction thereof. Upon termination of the existence of the water board, all of the rights and properties of the water board then remaining shall pass to and vest as follows: all properties acquired by the water board from either the city or the board of water supply, except properties identified at the time of transfer as being "southern reservoir property" shall vest in the city; all property identified at the time of transfer as being "southern reservoir property" shall vest jointly in the city and in the town of New Hartford; all other properties shall vest jointly in the city and the towns and villages in the service area in such a manner as prescribed by law. 6. It is hereby determined and declared that the water board and the carrying out of its powers and duties are in all respects for the benefit of the people of the service area and the state for the improvement of their health, welfare and prosperity and that such purposes are public purposes and that the water board is and will be performing an essential governmental function in the exercise of the powers conferred upon it by this title. 7. The water board shall establish and maintain its principal office at which it conducts its business in the city's city hall. Notwithstanding any general, special or local law or any charter provision, the city shall, and is hereby authorized to, lease to the water board such office space as the city and the water board mutually determine to be necessary and appropriate for the needs of the water board, which lease shall be for an initial term of thirty years and shall be for such consideration and shall contain such terms and conditions as the water board and the city shall determine reasonable and appropriate.