City garbage / water ?

What you provided is standard CYA language that puts the burden of research on the buyer prior to bidding.

I'm preparing to take a tenant to small claims court for unpaid water bills in Baltimore City.

After we purchased the property, there has been water leakage and part of the ceiling came undone as well as the AC stopped working.  

The Heloc on your primary for expansion is inexpensive and pretty standard fare if you plan to keep the house. 

AND as long as individual power and water meters.  99.9% chance this is all illegal and only one power meter and one water meter which makes it difficult to rent to 3 different tenants. 

Seemed fairly standard.

The lease includes an itemized list of utilities including Water/Sewage, PG&E and Wifi.

The contract/lease can be any standard lease for your state so that it reflects your area's laws, and then you can just add to it as you see fit to reflect things like how utilities are split, parking, etc.

If your market standard is for the tenants to pay utilities, then I wouldn't factor those into your cost.