Virginia Beach Franchise Rates & Performance Bonds

Business and Consumer Protection Virginia 4 Minutes Read · published February 09, 2026 Flag of Virginia

Virginia Beach, Virginia regulates public-utility franchises and construction performance bonds through city ordinances, procurement rules, and permit conditions. This guide explains how franchise rate setting is handled, when a performance or surety bond is required for public work, the enforcement process, and the practical steps businesses and residents should follow to apply, appeal, or report problems.

Overview

Franchise agreements and rate-setting for utilities or cable franchises are established by ordinance and by formal franchise agreements approved by the City Council or by authorized city officers under the city code. Performance bonds are commonly required to guarantee completion of public improvements, ensure payment to subcontractors, and protect the city from defective work. For governing texts and ordinance language, consult the city code and procurement pages for official procedures.[1]

How franchise rate setting works

  • Franchise approval: franchise terms and any rate-change mechanisms are set in the franchise ordinance or agreement approved by City Council.
  • Public hearings: rate adjustments tied to franchise agreements often require public notice and opportunity for comment.
  • Contract terms: many franchises include formulas or procedures for allowable rate changes; where absent, council action or specific ordinance provisions govern.

For the controlling ordinance language and to search franchise-specific sections, consult the Virginia Beach Code of Ordinances and related franchise documents.[1]

Franchise rate authority typically rests with the city under the ordinance and any executed franchise agreement.

Performance bonds — when they are required

The city uses surety products such as bid bonds, performance bonds, and payment bonds in procurement and for public-works permits to secure completion and payment. Requirements vary by the contract type, permit condition, or subdivision/public-improvement agreement. The Purchasing department publishes bond requirements for city contracts and public-works projects.[2]

  • Common uses: guarantee of public improvements, subdivision infrastructure, and large construction contracts.
  • Typical instruments: bid bonds, performance bonds, payment bonds; amounts are set by contract or permit conditions.
  • Duration: bonds generally remain in force until final acceptance of work or until warranty/maintenance periods expire.

Applications & Forms

The Purchasing and contract pages list bonding instructions for bidders and contractors; specific bond forms or surety certificates are identified with each solicitation or permit packet. If a specific bond form number or template is required for a permit or contract, it will be referenced on the solicitation or permit page.[2]

Penalties & Enforcement

Enforcement for franchise and bond-related violations is carried out by the responsible city department identified in the ordinance, by Purchasing for procurement-related bonding, and by the department issuing the permit or improvement agreement. The city may pursue monetary fines, contract remedies, calling bonds, corrective orders, withholding of certificates of occupancy, or court action depending on the instrument and statute.

  • Fine amounts: not specified on the cited page.[1]
  • Escalation: first, repeat, or continuing offence procedures are not specified on the cited page for all franchise/bond contexts; consult the specific ordinance or contract clause.[1]
  • Non-monetary sanctions: calling a performance bond, issuing stop-work orders, ordering corrective work, withholding permits or certificates, and referral to circuit court for enforcement.
  • Enforcer and complaints: contact the issuing department listed on the permit, the Purchasing division for contract bonding disputes, or the Code Enforcement/Planning division for public-improvement compliance.[2]
  • Appeals and review: appeal routes and time limits are set by the controlling ordinance, procurement solicitation terms, or permit conditions; where not published, the city code or solicitation document governs and should be consulted directly.[1]
If you face enforcement action, promptly contact the listed department and review the governing ordinance or contract.

Applications & Forms

  • Bond submission for city contracts: follow Purchasing solicitation instructions for bond form, surety company, and delivery method.[2]
  • Deadlines: bond submission deadlines appear on each solicitation or permit packet; if absent, contact Purchasing or the issuing department for the deadline.
  • Fees: any processing or review fees, if charged, are listed on the specific permit or procurement notice; otherwise not specified on the cited pages.[2]

Common violations

  • Failure to provide required bid, performance, or payment bonds.
  • Abandonment or defective completion of public improvements under a subdivision or permit.
  • Violating franchise agreement rate-setting procedures or changing rates without required approvals.

FAQ

Who enforces franchise rate rules and bond requirements?
The city department named in the ordinance or contract enforces franchise terms; Purchasing enforces procurement bonding, and the issuing permit department enforces bond conditions for public works.[2]
How do I find the ordinance that controls a franchise or bond term?
Search the Virginia Beach Code of Ordinances and the specific franchise agreement or solicitation for the controlling section and language.[1]
What should a contractor do if its bond is called?
Review the written notice, contact the surety and the issuing city department immediately, and consult the contract’s dispute and appeal provisions for timelines and procedures.

How-To

  1. Identify the controlling document: find the relevant ordinance, franchise agreement, solicitation, or permit packet.
  2. Contact the issuing department to confirm bond requirements and forms.[2]
  3. Secure a surety from an authorized surety company and obtain the required bond form or certificate specified by the city.
  4. Submit the bond and any required forms by the deadline stated in the solicitation or permit packet.
  5. If a dispute arises, use the appeal or protest mechanisms in the governing document and engage the listed city contact promptly.

Key Takeaways

  • Franchise rates and bond rules are set by ordinance, franchise agreements, and procurement/permitting documents.
  • Contact Purchasing for procurement bonds and the permit-issuing department for public-works bonds.
  • If bond amounts, fines, or appeal time limits are not listed, consult the specific ordinance, solicitation, or permit packet for definitive terms.

Help and Support / Resources

  1. [1] City of Virginia Beach - Code of Ordinances
  2. [2] City of Virginia Beach - Purchasing Division
  3. [3] City of Virginia Beach - Planning & Development

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