Any person who, in making application to the Superintendent for adjustment of the base allocation or premium charges, intentionally provides false or incorrect statements or information shall automatically have his or her request denied and shall additionally be liable to a penalty of $25.00 for the first offense and a penalty of $100.00 for the next and each succeeding or additional violation. In the event that any customer violates any section of this chapter, the customer shall be given notice thereof and the opportunity for a hearing within ten days after the notice, which hearing shall be held before the Council. If, after having said hearing it is determined by the Council that said individual or corporation so charged has violated this chapter, then the Superintendent is authorized to reduce the flow of water and service to such customer and if the violation is flagrant, to stop service to said customer when it has been determined that the customer is using water in a manner not in accordance with this chapter.