[HISTORY: Adopted by the County Council of Wicomico County 11-6-2018 by Bill No. 2018-11. Amendments
noted where applicable.]
A.
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:
(1)
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.
(2)
Appropriated funds must be available for the rent or other performance-based
payment obligation thereunder during the fiscal year in which it is
made.
(3)
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.
B.
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.
C.
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.
D.
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.
E.
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.
