A local agency may:
1. Apply to the department and contract with the state Commissioner of
Health for state aid pursuant to this title on and after September 1,
1964.
2. Select the person or firm to perform necessary consulting
engineering services for a comprehensive study and report and enter into
contracts for such services, provided, however, that the state
Commissioner of Health shall also be a party to any such contract;
3. Expend money received from the state pursuant to this title only
for purposes consistent therewith.