Who sets utility franchise rates in Mobile?

The City Council adopts franchise ordinances or approves franchise agreements that set rates; consult the specific agreement for exact terms.

When is a performance bond required?

Performance bonds are required when a contract or franchise requires security for work in the right-of-way or on city property; specific triggers are in procurement or contract documents.

How do I appeal a bond claim or enforcement action?

Follow the appeal instructions in the enforcement notice or contract; if none are provided, contact the City Clerk or Purchasing Division for review procedures.

Utility Franchise Rates and Bonds - Mobile

Business and Consumer Protection Alabama 4 Minutes Read · published February 20, 2026

Mobile, Alabama governs utility franchises and contracting security through city ordinances and procurement rules. This guide explains how franchise rates are set, when performance bonds apply, who enforces requirements, and the practical steps for utilities, contractors, and residents to comply or appeal decisions. It cites official City of Mobile code and procurement sources where available and notes when specific amounts or time limits are not specified on those pages. Use the action steps below to request rate schedules, obtain bond forms, file complaints, or appeal enforcement actions.

Overview

Franchise agreements give a utility or service provider permission to use public rights-of-way or operate under terms set by the city. Rates and bond requirements may be established in an enabling ordinance or in the specific franchise agreement adopted by the City Council. For the City of Mobile, the municipal code and official procurement pages are the primary references for these rules^[1].

Franchise Rates

Franchise rates can be set by ordinance, negotiated in franchise agreements, or calculated under formula clauses in contracts. Typical elements include percentage fees on gross receipts, fixed annual payments, or cost-recovery mechanisms. The municipal code provides the city's authority framework, but many individual agreements set the precise rate or method.

Contact the City Clerk to request an adopted franchise ordinance or the specific franchise agreement for current rates.
Review the published franchise agreement for any escalators, CPI adjustments, or review triggers.
Check council minutes or ordinance adoption dates to confirm when a rate becomes effective.

Franchise rates are often specific to each agreement and may not appear as a single citywide table.

Performance Bonds and Security

Performance bonds secure completion of public work or fulfillment of contract obligations when a utility performs work in the right-of-way or city property. Bond types include performance bonds, payment bonds, and maintenance bonds. The City of Mobile's purchasing and procurement rules are the primary place where bond requirements and acceptable sureties are described^[2].

Performance bond: guarantees contractor completes the work per contract terms.
Payment bond: protects subcontractors and suppliers.
Maintenance bond: covers defects after completion for a specified period.

Penalties & Enforcement

Enforcement of franchise and bond requirements is typically undertaken by different city offices: ordinance and franchise compliance by the City Clerk or legal department, public works and permits by Planning/Engineering, and bond enforcement through the Purchasing or Finance office during contract administration. If a contractor or utility fails to meet obligations, remedies can include demand on the bond, contract termination, injunctions, or debt collection.

Monetary fines: specific fine amounts are not specified on the cited municipal code or procurement pages.
Escalation: first, repeat, or continuing offence penalties are not specified on the cited pages.
Enforcer: City Clerk, Purchasing Division, Planning/Engineering for right-of-way work.
Non-monetary sanctions: orders to correct work, withholding of certificates of occupancy, contract suspension or termination, and claims on bonds.
Appeals: administrative review or appeal via council procedures or by filing in the appropriate court; time limits for appeals are not specified on the cited pages.

If you receive an enforcement notice, act quickly to preserve appeal rights and to request any available variance or permit remedy.

Applications & Forms

The City publishes procurement and bond-related forms via its Purchasing Division. For franchise agreements, the enacted ordinance or the executed franchise document is the controlling instrument; there may be no separate "franchise application" form published on general code pages. Specific bond forms, acceptable surety language, and submission instructions are provided through purchasing or contract documents on the city's procurement pages^[2].

Bond forms: see Purchasing Division contract documents for form name/number and acceptable sureties.
Submission: bonds are typically submitted to the Purchasing Division or the contract administrator as specified in the bid documents.

How to: Obtain Rate Information or Post a Performance Bond

Request the adopted franchise ordinance or executed franchise agreement from the City Clerk.
Review the franchise agreement for rate clauses, effective dates, and adjustment formulas.
For bond requirements, obtain the solicitation or contract documents from the Purchasing Division and follow the bond form and surety instructions.
If enforcement action is threatened, contact the enforcing office, request a statement of violations, and file any administrative appeal within the time allowed in the notice.

FAQ

Who sets utility franchise rates in Mobile?: The City Council adopts franchise ordinances or approves franchise agreements that set rates; consult the specific agreement for exact terms.^[1]
When is a performance bond required?: Performance bonds are required when a contract or franchise requires security for work in the right-of-way or on city property; specific triggers are in procurement or contract documents.^[2]
How do I appeal a bond claim or enforcement action?: Follow the appeal instructions in the enforcement notice or contract; if none are provided, contact the City Clerk or Purchasing Division for review procedures.

Key Takeaways

Franchise rates are agreement-specific; consult the executed ordinance or contract.
Performance bond rules and bond forms are managed through the Purchasing Division.
Enforcement can include bond claims, contract termination, and administrative or court remedies.