(a)  The city or town shall have full power and authority to cooperate with and assist the federal government in all matters relating to the planning, constructing, equipping, maintenance, and operation of the projects in the event that the federal government shall make any federal funds or federal assistance available therefor. The city or town, with the approval of the governor, is hereby authorized to accept, on behalf of the city or town, the provisions of the federal legislation, and may file written evidence of the acceptance with the federal government. Each such acceptance shall be duly signed by the city or town treasurer and countersigned by the governor.

(b)  The treasurer may enter into all necessary contracts and agreements with the federal government, or any agency thereof, necessary or incident to the carrying out of the flood control project or projects and may give assurance that it will hold and save harmless the United States and/or the state from claims for damages arising from construction works, and all the contracts and agreements shall be approved as to form by the attorney general and be signed by the city or town treasurer in behalf of the city or town and in the name of the state by the governor.