(a) In General. The City Council shall establish rates and charges for services of the Water Supply System. The rates and charges set by the City Council shall take into consideration all aspects of the operation of the system including administration, operation, maintenance, debt service, replacement and depreciation.
(b) No Free Service. No free water service shall be furnished to any person, firm or corporation, public or private, or to a public agency or instrumentality.
(c) Contracts for Service and Rates and Charges for Service Outside of the City; Franchise Contracts; Outside City Service. The City has previously entered into contracts with certain townships whereby the City has received consideration in exchange for providing certain capital costs, and other indirect costs, of providing service to users of the Water Supply System located in those townships. Rates and charges billed for use by the user of those townships shall be in accordance with the applicable contract.
In the event a non-resident is served by the Water Supply System and whose premises is not located within an Act 425 or Franchise Contract area, the rates charged for Facilities Maintenance Charge and commodity usage shall be multiplied by one and one-half times for residential service.
(d) Payment of Charges by City, Exception. The City shall pay for all water used by it at the rates established by ordinance. The water used through a fire hydrant by the City is hereby deemed to be a public benefit and there shall be no charge for service. Charges against the City shall be payable in quarterly installments from current funds of the City.
(e) Illegal Disconnection, Connection or Tampering With a Water Meter. For illegally disconnecting, connecting or tampering with a water meter, the property owner shall be charged two times the cost of the last quarterly billing. No service shall be provided until such bill is paid in full. If not paid, such cost shall be added to the property taxes and collected as delinquent.
(f) Facilities Maintenance Charge. The Facilities Maintenance Charge shall be charged against every premises connected to the Water Supply System whether water is used or not and shall be calculated on a Residential Equivalent Unit (REU) basis. A single family unit is considered one REU. In the case of a multiple unit residence, each unit shall be charged one Facilities Maintenance Charge REU. In December of each year, or at such other time as may be deemed appropriate, the City shall review REU allocations, taking into account factors such as the amount of use for each class of user in the previous year, and shall adjust such REU allocations as necessary with the revised allocations effective for the following twelve month period or until a subsequent review.
(g) Fee for Water Turn-On after Disconnection. If service is discontinued, a fee, as established by Council, shall be charged to turn the utilities back on. In the case of winter shut-offs, no charge shall be made to turn the utility off. However, a fee shall be charged to turn service back on.
(h) Final Readings. At least twenty-four (24) hours notice shall be given to the City for a final notice reading on a property. If such time limit cannot be given, a fee, as established by Council, shall be made to perform the work on an emergency basis.
(i) Contracts for Service. No user shall receive service from the Water Supply System without first completing a contract application and providing evidence of ownership of the property to be served or, if the user rents or leases the property being served, until providing sufficient deposit with the City to be retained by the City until the renter leaves the property being served. No utility service will be activated without a signed contract, and no billings shall be made to "Occupant" or any person other than the owner of the property being served, or a tenant who has complied with the requirements of this Section, or such other person as the City Manager approves.
(j) Billing Cycle; Penalty; Collection. The City Manager shall have charge of the reading of all meters and shall have all meters read at least quarterly. Bills for water service shall be due and payable when rendered. There shall be added to all bills not paid on or before the twentieth day of the first month following the end of each quarter a penalty of ten percent of the amount of the bill. The Treasurer shall be responsible for collecting all charges and crediting the proper account.
(k) Non-payment of Bills. All bills not paid shall result in the termination of water service to the premises. No user who has had his or her water shut off shall reactivate his or her service by their own action. The City may disable the service to prevent future reactivation.
(l) Liens. By Section 21 of Act 94 of the Public Acts of 1933, as amended, and by the terms of this chapter, the rates and charges for services furnished by the Water Supply System shall be liens on the property served. The City shall certify those rates and charges delinquent for six months or more to the City tax assessing officer, who shall enter the amount of the delinquent rates and charges on the tax roll against the premises to which the service was rendered, and who shall collect the rates and charges and enforce the lien in the same manner as provided for the collection of ad valorem property taxes assessed upon the same roll and the enforcement of the lien for taxes.
For premises equipped with a separate water shut-off, in all cases where a tenant represents to the City, by filing an affidavit evidencing the legal execution of a lease containing a provision that the lessor shall not be liable henceforth for payment of water or sewage system bills, then the tenant shall pay to the City a deposit as set by resolution of the City Council from time to time as security for payment of future rates and charges. If the tenant fails to pay rates and charges the delinquent rates and charges shall not become a lien against the premises. The City shall, however, cease to provide water service to the tenant's premises until the tenant pays the delinquent charges in full.
(Ord. Unno. Passed 9-7-99; Ord. No. 466. Passed 6-2-09.)