[HISTORY: Adopted by the County Council of Wicomico County 11-6-2018 by Bill No. 2018-11. Amendments noted where applicable.]
Unless otherwise required or prohibited by law, a lease or other contractual obligation that under its initial or extended term would or might obligate the County for rent or other performance-based payment in excess of $50,000 after the fiscal year in which it is made shall be subject to approval by the County Council by resolution and to the following conditions:
It must expressly provide an objective means to determine the amount of the rent or other performance-based payment obligation thereunder, such as prices or rates, during the entire potential extended term.
Appropriated funds must be available for the rent or other performance-based payment obligation thereunder during the fiscal year in which it is made.
The purchasing agent must certify in writing that: (I) the multiyear nature of the lease or other contractual obligation will promote the public interest by encouraging competition and/or otherwise reducing the County's costs; (II) that the County's estimated requirements thereunder are reasonably firm and likely to continue during its entire potential extended term.
If funds are not appropriated or otherwise made available for the rent or other performance-based payment obligation in future fiscal years, the lease or other contract shall be canceled.
Language providing that the County's obligation is subject to or contingent upon the availability of appropriated or other funds shall not avoid the approval and other conditions stated in this section; provided, however, that any such condition, including Council approval, may be waived by Council upon written request by the County Executive that states the reason for waiver thereof.
As used in this section, "performance-based payment" means the agreed consideration for the performance or benefit that the County obtains in accordance with the contractual terms, such as rent under a lease, purchase price of goods, or services provided, and does not include other obligations that may arise in the course of the transaction, such as repair and maintenance of leased premises, that are not based upon the extent of such performance or benefit.
If the County's maximum potential performance-based payment obligation in future fiscal years cannot be determined with certainty from the terms of a lease or other contractual obligation, it shall be subject to the conditions, including Council approval, stated in this section unless it expressly limits such obligation to a maximum amount that cannot be waived or increased without Council approval made by resolution.