The board may authorize a director, or an employee of the water user district whose responsibilities include approving, awarding, or administering a contract on behalf of the district, to be a party to a contract or derive a direct benefit from a contract with the district, if:
(1) The person provides a written disclosure of the person's interest to the board;
(2) The board reviews the terms of the contract and the person's obligations and benefits under the contract;
(3) The board determines that the contract is fair and reasonable to the district and not contrary to the public interest; and
(4) The board adopts a resolution of approval that is in written form and retained as a public record.