(1) Any person whose property has been damaged through a defect in the water or sewer system may file a claim for damages with the Water Department. The claim shall be made under oath setting forth the:

(a) location of the breakage in the water or sewer system;

(b) the name and address of the claimant;

(c) an inventory of any personal property for which claim for damages is made, setting forth the market value of each item at the time it was destroyed and the market value of each item prior to being damaged together with its market value in the damaged condition;

(d) the location and description of any damage to real estate for which claim for damages is made, setting forth the market value of the property at the time it was damaged; the market value in its damaged condition; and the estimated cost of returning the property to its former state of repair;

(e) a description of events which resulted in damage to the property; and

(f) such other information required by the Department to aid in investigating the claim.

(2) The Water Department shall examine the claim and may negotiate and make settlement in an amount not exceeding $2,000.

(3) The Water Commissioner may, in his discretion, either appraise the claim and enter an award in favor of the claimant without a hearing or he may order a departmental hearing to adjudicate the claim.

(4) If a hearing is ordered, it shall be held by the Water Commissioner or an examiner selected by him. The hearing shall be informal and technical rules of evidence shall not be applied. Testimony shall be under oath. The claimant may be represented by counsel at the hearing. Notes of testimony may be taken if desired by the examiner. Claimant may demand that notes of testimony be taken at the hearing if he pays the cost of taking and transcribing the notes. After hearing, an award may be entered by the Water Commissioner.