Water Bill Legal Questions

I am a landlord in Michigan. My property manager, who is a one-man show, is telling me that legally in Michigan, the property owner is responsible for water bills. This brings up the following questions:

1) Is it legal to state in a lease that a tenant is responsible for the water bill?
2) If the water bill is unpaid when a tenant leaves, is it legal to deduct the amount from the security deposit?
3) Can a collection agency legally collect a water bill owed by a tenant?

Thanks in advance for any help on this.