A. Any state franchise holder may appeal any customer service penalty assessed pursuant to Section 14.48.035 according to the following procedure.

B. The state franchise holder may file a request for hearing form with the city clerk within thirty days from receipt of the written notice specified in Section 14.48.035(C) with an advance deposit of the penalty amount.

C. A request for hearing form may be obtained from the city clerk.

D. The state franchise holder requesting the hearing shall be notified by the city clerk of the time and place set for the hearing at least ten days prior to the date of the hearing.

E. The hearing shall be set by the city clerk for a date that is not less than fifteen days and not more than sixty days from the date that the request for hearing form is filed with the city clerk.

F. At the hearing, the city shall bear the burden of proof by a preponderance of the evidence that the material breach occurred as charged. The city may be represented by counsel.

G. At the hearing, the state franchise holder may cross examine any witness against the state franchise holder and may present evidence. The state franchise holder may be represented by counsel.

H. The formal rules of evidence shall not apply at the hearing. The hearing officer may rely upon such evidence as he or she believes reasonable persons would rely upon in the conduct of their affairs. Any witnesses shall testify under oath.

I. After hearing and reviewing all of the testimony and evidence submitted at the hearing, the hearing officer shall issue a written decision to uphold or cancel the penalty and shall list in the decision the reasons for that decision. The decision of the hearing officer shall be final.

J. If the hearing officer determines that the penalty should be canceled, the city shall promptly refund the amount of the deposited penalty, together with interest at the average rate earned on the city’s investment portfolio for the period of time that the penalty amount was held by the city.

K. The hearing officer shall be the city manager or his or her designee.

L. Any interested person may obtain review of the decision of the hearing officer by filing an appeal in a court of competent jurisdiction pursuant to California Public Utilities Code Section 5900.