(A) The city shall have, as security for the collection of any water rates or any assessments, charges, fees, materials or rentals due or to become due for the use or consumption of water supplied to any property, a lien upon the property to which such water was supplied. The lien shall become effective immediately upon the distribution of the water to the property supplied, but shall not be enforceable for more than three years. The lien may be enforced by the city in the manner prescribed by the general laws of this state providing for the enforcement of tax liens, provided that the provisions of this section shall not be construed as preventing the city from suing such owner by action in the name of the city for the amount due to it, or from preventing the city from cutting off such water services from the property at any time such water charges have not been paid as subject to the provisions of division (E) of this section.
(B) The Water Department will apply interest to the deposit accounts of all users with security deposits over $50. For deposits exceeding $50, the federal funds rate per annum as set from time to time shall be credited to the customer's account, to be computed annually on all sums that have remained on deposit for six months and to be credited semi-annually. Accrued interest due shall be paid at the time the deposit is refunded.
(C) When a tenant is responsible for payment of water and/or sewer bills and a lease has been executed containing a provision that the lessor not be liable for water and/or sewer charges, it shall be the responsibility of the lessor to notify the Water Department office with an appropriate affidavit signed by both parties requesting a waiver of lien.
(1) The affidavit must state: "The tenant is totally responsible for all charges for water and/or sewer service furnished to the premises by the City of Mount Pleasant. The tenant understands that no service shall be commenced to the above address until there has been deposited with the city a sum as set forth by resolution adopted by the Commission, and a copy of the lease including this affidavit furnished to the city. The tenant further understands that payment of charges for water and/or sewer service may be enforced by discontinuing the services to the premises." The affidavit shall state the expiration date of the lease.
(2) Upon receipt of notification, the city will waive its lien pursuant to Public Act 178 of 1939, being M.C.L.A. § 123.165, as amended, and the water and sewer bills to the lessee within the term of the lease shall not be a lien against the property. Upon expiration of the lease, a new affidavit must be submitted: without such notification, water and/or sewer bills will be a lien against the property served regardless of any lease provisions between the parties. A 20-day notice shall be given to the city by the lessor of any cancellation, change or termination of the lease. The water and/or sewer bills shall be in the name of the premises except as provided by this section concerning tenants.
(D) When the Water Department has received and approved a request from the property owner for a waiver of lien, a cash deposit will be required of the lessee as security for payment of all water and/or sewer charges. The amount of the deposit shall be set by resolution of the Commission.
(E) Disconnection for late payment.
(1) It is the policy of the city to discontinue utility service to customers by reason of nonpayment of bills only after notice and a meaningful opportunity to be heard on disputed bills. The city's form for application for utility service and all bills shall contain, in addition to the title, address, room number, and telephone number of the official in charge of billing, clearly visible and easily readable provisions to the effect:
(a) That all bills are due and payable on or before the date set forth on the bill;
(b) That if any bill is not paid by or before that date, a shut off notice will be mailed containing a cutoff notice that if the bill is not paid within ten days of the mailing, service will be discontinued for nonpayment; and
(c) That any customer disputing the correctness of his/her bill shall have a right to a hearing at which time he/she may be represented in person and by counsel or any other person of his/her choosing and may present orally or in writing his/her complaint and contentions to the city official in charge of utility billing. This official shall be authorized to order that the customer's service not be discontinued and shall have the authority to make a final determination of the customer's complaint.
(2) Requests for waiver of payment will not be entertained; only questions of proper and correct billing will be considered. In the absence of payment of the bill rendered or resort to the hearing procedure provided herein, service will be discontinued at the time specified, but in no event until the charges have been due and unpaid for at least 30 days.
(3) When it becomes necessary for the city to discontinue utility service to a customer for nonpayment of bills, service will be reinstated only after all bills for delinquent service have been paid, along with a turn-on charge to be established by resolution of the Commission.
(F) In cases where utilities are included in rent for multi-family dwellings with 20 or more units, the property owner or their designee will be responsible for the payment of all delinquent service charges, penalties, and re-establishment charges attributable to each individual unit. A property owner's continued failure, neglect, or refusal to pay such delinquent service charges, penalties, and re-establishment charges within the time granted for payment shall constitute a violation of this code and may be grounds to suspend or revoke the property owner's housing license pursuant to Chapter 152 of this code.
(Ord. 774, passed 8-28-95; Am. Ord. 899, passed 7-26-04; Am. Ord. 1099, passed 9-9-24)