[Code 1979, § 2.122]
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
BOD (denoting BIOCHEMICAL OXYGEN DEMAND)
The quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedures in five days at 20° C. expressed in milligrams per liter.
DEBT SERVICE
A charge levied on users of treatment works for the purpose of meeting the bonded indebtedness payment schedule due to the construction of the treatment works.
ENGINEER
The City engineer and such other persons or officers of the City as the Council may from time to time designate.
ICR
Industrial cost recovery.
INDUSTRIAL USER
Any user identified in the Standard Industrial Classification Manual, 1972, Office of Management and Budget, as now or hereafter amended or supplemented under the following divisions:
(1) 
Division A — Agriculture, Forestry, Fishing.
(2) 
Division B — Mining.
(3) 
Division D — Manufacturing.
(4) 
Division E — Transportation, Communications, Electric, Gas and Sanitary Services.
(5) 
Division I — Services.
LOCAL COSTS
Those costs which are borne in their entirety by the City and include all expenses incurred up to the point of delivery to the regional system.
METER
A device to measure the quantity of water or wastewater passing through it.
NORMAL CONCENTRATIONS
(1) 
A five-day, 20° C. biochemical oxygen demand (BOD) of 220 milligrams per liter (mg/l).
(2) 
A suspended solids (SS) content of 300 mg/l.
OPERATION AND MAINTENANCE COSTS
All costs for labor, power, chemicals, materials and supplies, replacements, contractual services, billing and administration chargeable to wastewater operations.
PREMISES
A structure which cannot be completely divided in its present utilitarian condition through sale. The following are examples of what is meant by premises:
(1) 
A building under one roof, owned, leased or occupied by one party as one business or residence.
(2) 
A combination of residential buildings or commercial buildings, leased or occupied by one party in one common enclosure.
(3) 
The one side of a double house having a solid vertical partition wall.
(4) 
A building owned by one party having more than one internal division such as apartments, offices, stores, etc., and which may have a common or separate entrance.
REPLACEMENT
Expenditures for obtaining and installing equipment, accessories or appurtenances which are necessary during the service life of the treatment works to maintain the capacity and performance, for which such works were designed and constructed.
RESIDENTIAL USER
Any user introducing into the sewerage system domestic strength wastes from a premises used for family living.
SEWER USE CHARGES
The basic charges levied on users of the public sewer system.
SURCHARGE
A charge in addition to the service charge which is levied on those persons whose wastes are greater in strength than normal strength domestic wastes.
SUSPENDED SOLIDS
Solids that either float on the surface of, or are in suspension in, water, sewage or other liquids, and which are removable by laboratory filtering.
USER CHARGE
A charge levied on users of treatment works for the cost of operation and maintenance of such works.
[Code 1979, § 2.121]
It is hereby determined to be desirable and necessary, for the public health, safety and welfare of the City, that public sanitary sewer collection and disposal facilities serving residents of the City be operated on a public utility rate basis in accordance with the provisions of Act No. 94 of the Public Acts of Michigan of 1933 (MCL 141.101 et seq., MSA 5.2731 et seq.), as amended, and applicable federal regulations.
[Code 1979, § 2.123]
The operation and maintenance of the system shall be under the supervision and control of the City.
[Code 1979, § 2.124]
Each premises abutting a public gravity sanitary sewer line within the City which is required to connect to the sanitary sewer line by the provisions of this chapter shall pay a use charge based on the rates set forth in this chapter. The charge shall be due and payable and commence as of the date the premises are connected to the system.
[Code 1979, § 2.125]
The wastewater service charge for the use of and for service supplied by the wastewater facilities of the City shall consist of basic user charge for operation and maintenance plus replacement and a surcharge, if applicable. The operation and maintenance and replacement costs shall be computed as follows:
(1) 
Estimate the projected annual expenditures required to operate and maintain the wastewater facilities including a replacement fund for the year, for all works categories.
(2) 
Proportion the estimated costs of the wastewater facility categories by volume.
(3) 
Estimate wastewater volume.
(4) 
Proportion the estimated costs to nonindustrial and industrial users by volume.
(5) 
Compute costs per 1,000 gallons of metered water used.
(6) 
Additional operation, maintenance, replacement and debt service charges levied by the City of Owosso and Township of Caledonia shall be included as a part of the total City cost of a similar nature.
[Code 1979, § 2.126]
The basic user charge for wastes having normal concentrations shall be based on either:
(1) 
Premises connected to City water system: Water usage as recorded by water meters.
(2) 
Premises not connected to City water system:
a. 
A flat rate which shall be set by the Council in accordance with exhibit A, the table of equivalent use factors, on file in City hall.
b. 
A meter may be installed at the request of the owner, and at his expense, on the private water supply. All installation, repairs, maintenance and other service costs shall be paid by the owner.
(3) 
Installation of sewage meter. At the discretion of the owner of the premises and at the owner's cost, a sewage meter may be installed in the sewer line of the premises which shall be used to establish the use charges and any other applicable rates. The meter shall be of the type approved by the engineer. All installation, repairs, maintenance and other service costs shall be paid for by the owner. During periods when the meter is deemed inaccurate or is out of service, the rate structure shall revert to previous averages based on City records or on the basis of metered water.
[Code 1979, § 2.127]
A debt service charge shall be levied on every user based upon the average annual principal and interest requirements and billable flows.
[Code 1979, § 2.128]
A surcharge shall be levied and passed on to those users designated by the City of Owosso for discharging extra strength wastes based upon the applicable City of Owosso ordinance which may be amended from time to time.
[Code 1979, § 2.129]
When an industrial user, as defined in 40 CFR 35.905-8, requests connection to the public sewage collection and disposal system, an industrial cost recovery system must be developed in accordance with 40 CFR 35.928. Any user discharging less than the equivalent of 25,000 gallons per day shall be exempt from ICR provided its waste discharge does not contain pollutants which are toxic or incompatible, interfere with treatment works processes or may otherwise contaminate or reduce the utility of the sludge.
[Code 1979, § 2.130]
The adequacy of the wastewater service charge shall be reviewed annually by the certified public accountant for the City in the annual audit report. The wastewater service charge shall be revised periodically to reflect a change in debt service or a change in operation and maintenance costs including replacement costs in accordance with applicable federal regulations.
[Code 1979, § 2.131]
In addition to the user charges established in this article users of the system shall pay, for the privilege of connecting to the system, due and payable at time application is made for connection to the system, charges as provided for in Article VI of this chapter.
[Code 1979, § 2.132]
The use rates, special rates and any fees and/or surcharges to be imposed by this article shall be in accordance with the respective schedule for such charges as established by the Council from time to time. Any changes of such charges shall be established pursuant to resolution of the Council.
[Code 1979, § 2.133]
The charges for services which are under the provisions of § 21, Act No. 94 of the Public Acts of Michigan of 1933 (MCL 141.101 et seq., MSA 5.2731 et seq.), as amended, made a lien on all premises served thereby, unless notice is given that a tenant is responsible, are hereby recognized to constitute such lien, and whenever any such charge against any piece of property shall be delinquent for six months, the City official in charge of the collection thereof shall certify annually on April 1 of each year, to the tax assessor's office of the City the facts of such delinquency, whereupon such charge shall be by him entered upon the tax roll as a charge against such premises and shall be collected and the lien thereof enforced, in the same manner as general City taxes against such premises are collected and the lien enforced. However, where notice is given that a tenant is responsible for such charges and service as provided by § 21, no further service shall be rendered such premises until a cash deposit in the amount of $100 shall have been made as security for payment of such charges and service. In addition to the foregoing, the City shall have the right to discontinue sewer and/or water service to any premises for which charges for sewer service are more than three months delinquent, and such service shall not be reestablished until all delinquent charges and penalties and a turn-on charge including labor and material charges to be specified by the City Council have been paid. Further, such charges and penalties may be recovered by the City by court action.
[Code 1979, § 2.134]
No free service shall be furnished by the sanitary sewer system to any person, firm or corporation, public or private, or to any public agency or instrumentality.
[Code 1979, § 2.135]
The system shall be operated on the basis of an operating year commencing on July 1 and ending on June 30 of the following year.
[Code 1979, § 2.136]
Bills will be rendered quarterly and payable without penalty within 30 days after the date thereon. Payments received after such period shall bear a penalty of 10% of the amount of the bill.
[Code 1979, § 2.137]
The treasurer of the City shall be custodian of all monies of the City belonging to, or associated with, the system and such monies shall be deposited in any Michigan bank, duly designated by the Council, which is insured by the Federal Deposit Insurance Corporation.
[Code 1979, § 2.138]
The owner of any premises which have been assessed any charges under this article or any ordinance with regard to the sewer system may submit a hardship application to the City seeking a deferment in the partial or total payments of the charges based upon a showing of financial hardship subject to and in accordance with the following:
(1) 
The owner of the premises shall complete a hardship application provided by the Council and file the application together with all other information and documentation reasonably required by the City with the Council not less than 60 days prior to the date of the annual installment due. Any such deferment shall be for that annual installment only. An application shall be completed and filed by each and every legal and equitable interest holder in the premises so assessed, except financial institutions having security interest in the premises.
(2) 
Hardship applications shall be reviewed by the Council and after due deliberation of hardship applications, the Council shall determine in each case whether there has been an adequate showing of financial hardship and shall forthwith notify the applicant of the determination.
(3) 
An applicant aggrieved by the determination of the Council may request the opportunity to appear before the Council in person for the purpose of showing hardship and presenting any argument of additional evidence. Denial of hardship following such a personal appearance before the Council shall be final and conclusive.
(4) 
If the Council makes a finding of hardship, the Council shall fix the amount of deferment of partial or total charges so imposed and in so doing shall require an annual filing of financial status by each applicant, provided that upon any material change of the financial status of an applicant, the applicant shall immediately notify the assessor so that a further review of the matter may be made by the Council and provided further that the duration of the deferment granted shall be self-terminating upon the occurrence of any one of the following events:
a. 
Change of the applicant's financial status which removes the basis for financial hardship.
b. 
Any conveyance of any interest in the premises by any of the applicants, including the execution of a new security interest in the premises or extension thereof.
c. 
A death of any of the applicants.
(5) 
Upon receiving a determination of the Council deferring partial or total charges imposed, the owners of the premises shall, within one month, execute a recordable security interest on the premises to the City as the secured party, payable on or before the death of any of the applicants, or in any event upon any transfer of the premises. The security interest shall be in an amount necessary to cover all fees and charges required under the ordinance, the consideration for the security interest being the grants of deferment pursuant to this article.