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     ARTICLE 6

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RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

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     SECTION 1. This article shall serve as joint resolution required pursuant to Rhode Island

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General Law § 35-18-1, et seq.

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     SECTION 2. University of Rhode Island – Memorial Union – Auxiliary Enterprise

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     WHEREAS, The Council on Postsecondary Education and the University have a long-

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standing commitment to the overall development of their students; and

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     WHEREAS, The University believes that the Memorial Union celebrates life at URI and

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acts as the nexus for campus community, student engagement, and leadership. It is an intersection

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connecting the academic core of campus and the campus’s socially active residential community.

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The student union at the University is an integral part of the educational ecosystem that shapes the

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student experience; and

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     WHEREAS, The Council on Postsecondary Education and the University of Rhode Island

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are proposing a project which involves the renovation and expansion of the Memorial Union to meet

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the ongoing and growing needs of their students; and

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     WHEREAS, The University engaged a qualified architectural firm, which has completed

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an advanced planning study for this renovation; and

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     WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the

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General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island

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and other public agencies of certain obligations including financing guarantees or other agreements;

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and

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     WHEREAS, The design and construction associated with this work of an Auxiliary

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Enterprise building will be financed through the Rhode Island Health and Educational Building

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Corporation (RIHEBC) revenue bonds, with an expected term of thirty (30) years; and

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     WHEREAS, The total project costs associated with completion of the project through the

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proposed financing method is fifty-one million five hundred thousand dollars ($51,500,000),

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including cost of issuance. Debt service payments would be supported by revenues derived from

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student fees and retail lease payments associated with the respective Auxiliary Enterprises of the

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University of Rhode Island occupying said facility. Total debt service on the bonds is not expected

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to exceed one hundred twelve million three hundred thousand dollars ($112,300,000) in the

 

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aggregate based on an average interest rate of six (6%) percent; now, therefore be it

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     RESOLVED, That this General Assembly hereby approves financing in an amount not to

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exceed fifty-one million five hundred thousand dollars ($51,500,000) for the Memorial Union

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project for the auxiliary enterprise building on the University of Rhode Island campus; and be it

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further

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     RESOLVED, That this Joint Resolution shall take effect upon passage.

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     SECTION 3. University of Rhode Island – Fraternity Circle Master Plan Implementation

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     WHEREAS, The Rhode Island Council on Postsecondary Education and the University of

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Rhode Island are proposing a project which involves improvements to the sector of the Kingston

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Campus devoted to fraternity and sorority houses, referred to as Fraternity Circle, on the Kingston

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Campus; and

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     WHEREAS, The University of Rhode Island is underway with a utility and infrastructure

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project to replace, improve, and reorganize aged, incrementally developed utility and paved

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infrastructure in Fraternity Circle, referred to in the University’s Capital Improvement Plan as

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“Fraternity Circle Improvements” project, including improvements to water, wastewater, electrical,

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telecommunications, natural gas connections, and storm water management systems, as well as

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roadways, walkways, and parking lots as a first phase of improvements reflected in a “master plan”

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for this unique neighborhood of on-campus residences serving organizations of students; and

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     WHEREAS, The second phase of the overall improvements to Fraternity Circle, referred

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to on the University’s Capital Improvement Plan as the “Fraternity Circle Master Plan

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Implementation” project is needed to complete this district of campus; and

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     WHEREAS, The design and execution of this project will improve student life and the

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campus's environmental impact; and

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     WHEREAS, These timely project commitments serve the objectives of both the University

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and the local community; and

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     WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the

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General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island

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and other public agencies of certain obligations including financing guarantees or other agreements;

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and

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     WHEREAS, The design and construction will be financed through Rhode Island Health

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and Educational Building Corporation revenue bonds, with an expected term of twenty (20) years;

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and

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     WHEREAS, The project costs associated with completion of the project and proposed

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financing method is two million one hundred thousand dollars ($2,100,000), including cost of

 

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issuance. Debt Service payments would be supported by the University's unrestricted general

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fund. Total debt service on the bonds is not expected to exceed three million seven hundred

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thousand dollars ($3,700,000) in the aggregate based on an average interest rate of six percent

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(6%); now, therefore be it

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     RESOLVED, That this General Assembly hereby approves financing in an amount not to

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exceed two million one hundred thousand dollars ($2,100,000) for the Fraternity Circle Master Plan

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Implementation project at the University of Rhode Island; and be it further

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     RESOLVED, That, this Joint Resolution shall take effect upon passage.

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     SECTION 4. University of Rhode Island – Combined Health & Counseling Center –

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Auxiliary Enterprise

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     WHEREAS, The Council on Postsecondary Education and the University have a long-

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standing commitment to the health and wellness of their students; and

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     WHEREAS, The University has a desire to create a one-stop center to address the physical,

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emotional, and mental health of its students; and

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     WHEREAS, The Council on Postsecondary Education and the University of Rhode Island

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are proposing a project which involves the construction of a new Combined Health & Counseling

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Center to meet the ongoing and growing health needs of their students; and

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     WHEREAS, The University engaged a qualified architectural firm, which has completed

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an advanced planning study for this new building; and

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     WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the

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General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island

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and other public agencies of certain obligations including financing guarantees or other agreements;

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and

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     WHEREAS, The design and construction associated with this work of an Auxiliary

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Enterprise building will be financed through the Rhode Island Health and Educational Building

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Corporation (RIHEBC) revenue bonds, with an expected term of thirty (30) years; and

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     WHEREAS, The total project costs associated with completion of the project through the

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proposed financing method is twenty-six million nine hundred thousand dollars ($26,900,000),

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including cost of issuance. Debt service payments would be supported by revenues derived from

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student fees associated with the respective Auxiliary Enterprises of the University of Rhode Island

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occupying said facility. Total debt service on the bonds is not expected to exceed fifty-eight million

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seven hundred thousand dollars ($58,700,000) in the aggregate based on an average interest rate of

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six (6%) percent; now, therefore be it

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     RESOLVED, That this General Assembly hereby approves financing in an amount not to

 

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exceed twenty-six million nine hundred thousand dollars ($26,900,000) for the Combined

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Health & Counseling Center project for the auxiliary enterprise building on the University of Rhode

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Island campus; and be it further

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     RESOLVED, That, this Joint Resolution shall take effect upon passage.

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     SECTION 5. Rhode Island Turnpike and Bridge Authority Project

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     WHEREAS, The Rhode Island Turnpike and Bridge Authority (the "authority") is a public

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corporation of the state of Rhode Island (the "state"), constituting a public instrumentality and

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agency exercising public and essential governmental functions of the state, created by the general

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assembly pursuant to chapter 12 of title 24 (as enacted, reenacted and amended, the "act"); and

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     WHEREAS, The state recognizes that the Pell Bridge, the Jamestown Verrazzano Bridge,

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the Mount Hope Bridge, the Sakonnet River Bridge and other facilities of or within the control of

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the authority are an essential part of the state's transportation system and facilitates the tourism

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industry; and it is the policy of the state that the public welfare and the further economic

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development and the prosperity of the state requires the maintenance of such facilities and the

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financing thereof; and

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     WHEREAS, The act provides that the authority shall have the power to charge and collect

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tolls for the use of its facilities; and

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     WHEREAS, Pursuant to § 31-36-20, three and one-half cents ($0.035) per gallon of the

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motor fuel tax is transferred to the authority to be used for maintenance, operations, capital

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expenditures and debt service on any of its projects as defined in chapter 12 of title 24; and

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     WHEREAS, The act also provides that the authority shall have the power to acquire, hold

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and dispose of real and personal property in the exercise of its powers and performance of its duties;

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and

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     WHEREAS, The act authorizes the authority to make and enter into all contracts and

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agreements necessary or incidental to the performance of its duties and the execution of its powers

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under the act, to issue revenue bonds of the authority for any of its purposes and to refund its bonds,

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borrow money in anticipation of the issuance of its bonds, and secure its bonds and notes by the

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pledge of its tolls and other revenues; and

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     WHEREAS, In furtherance of its corporate purposes, the authority is authorized to issue

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from time to time its negotiable revenue bonds and notes in one or more series in such principal

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amounts for the purpose of paying all or a part of the costs of any one or more projects authorized

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by the act, making provision for working capital and a reserve for interest; and

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     WHEREAS, Pursuant to §§ 35-18-3 and 35-18-4 of the Rhode Island Public Corporation

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Debt Management Act (as enacted, reenacted and amended, the "Debt Management Act"), the

 

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authority hereby requests the approval of the general assembly of the authority's issuance of not

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more than fifty million dollars ($50,000,000) Rhode Island Turnpike and Bridge Authority

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Revenue Bonds with a term not to exceed thirty (30) years and six (6) months (together with any

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notes issued in anticipation of the issuance of bonds, the "bonds") to be secured by toll, transfers

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of motor fuel taxes and/or other revenues, in any combination, for the purpose of providing funds

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to finance the renovation, renewal, repair, rehabilitation, retrofitting, upgrading and improvement

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of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River Bridge, Mount Hope

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Bridge, and other projects authorized under the act, replacement of the components thereof,

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working capital, capitalized interest, a debt service reserve and the costs of issuing and insuring the

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bonds (the "project"); and

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     WHEREAS, The project constitutes essential public facilities directly benefiting the state;

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and

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     WHEREAS, The authority is authorized pursuant to § 24-12-28 of the act to secure its

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bonds by a pledge of the tolls and other revenues received by the authority; and

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     WHEREAS, The state shall directly benefit economically from the project by the repair,

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maintenance and improvement of the state transportation infrastructure; and

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     WHEREAS, In the event that not all of the bond proceeds are used to carry out the specified

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project, the authority will use any remaining funds to pay debt service on the bonds; now, therefore,

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be it

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     RESOLVED AND ENACTED, That this general assembly finds that the project is an

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essential public facility and is of a type and nature consistent with the purposes and within the

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powers of the authority to undertake, and hereby approves the authority's issuance of not more than

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fifty million dollars ($50,000,000) in bonds, which amount is in addition to all prior authorizations;

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and be further

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     RESOLVED, That the bonds will be special obligations of the authority payable from

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funds received by the authority from tolls, transfers of motor fuel taxes and other revenues received

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by the authority, in any combination or priority as may be designated in the proceedings of the

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authority authorizing the issuance of such debt. The total debt service on the bonds is estimated to

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average approximately three million five hundred ninety-four thousand dollars ($3,594,000) per

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year or approximately one hundred nine million three hundred sixteen thousand dollars

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($109,316,000) in the aggregate, prior to the receipt of any federal subsidy and/or assistance, at an

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average interest rate of approximately six percent (6%) and approximately a thirty (30) year

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maturity; and be it further

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     RESOLVED, That the authority may issue interest bearing or discounted notes from time

 

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to time in anticipation of the authorization or issue of bonds or in anticipation of the receipt of

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federal aid for the purposes of this joint resolution, the amount of original notes issued in

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anticipation of bonds may not exceed the amount of bonds which may be issued under this joint

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resolution and the amount of original notes issued in anticipation of federal aid may not exceed the

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amount of available federal aid as estimated by the authority, any such notes issued hereunder shall

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be payable within five (5) years from their respective dates, but the principal of and interest on

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notes issued for a shorter period may be renewed or paid from time to time by the issue of other

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notes hereunder, provided the period from the date of an original note to the maturity of any note

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issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years, and any

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such refunding of notes with notes or bonds may be effected without complying with § 35-18-3(5);

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and be it further

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     RESOLVED, That the bonds will not constitute indebtedness of the state or any of its

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subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is

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pledged.

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     RESOLVED, That, this Joint Resolution shall take effect upon passage.

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     SECTION 6. Issuance of GARVEE Bonds

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     WHEREAS, The Rhode Island department of transportation ("the department") has

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completed a detailed review of available funding sources for transportation reconstruction,

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maintenance, and repair and has determined that the funding available to carry out an immediate

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program of bridge reconstruction and preventative maintenance (the "program") is insufficient; and

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     WHEREAS, The limitation in funding has occurred, in part, due to the absence of a state­

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funded capital investment program in transportation infrastructure, and the level funding of federal

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appropriations to the state, along with a reduction in federal funding through the elimination of

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federal earmarks and expiration of additional special federal funds; and

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     WHEREAS, Congress has enacted the Fixing America's Surface Transportation (FAST)

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Act, which provides an increase in available federal funding; and

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     WHEREAS, The department has explored various options to finance the costs of a robust

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infrastructure program and concluded that the federal-aid financing program authorized in federal

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law by Section 311 of the National Highway System Designation Act of 1995 and commonly

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referred to as the Grant Anticipation Revenue Vehicle Program ("GARVEE program") represents

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the best financing mechanism for the state of Rhode Island inasmuch as the GARVEE program

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accelerates the funding available to ensure that more Rhode Island bridges do not become

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structurally deficient; and

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     WHEREAS, The GARVEE program allows a state to issue bonds ("GARVEE Bonds") or

 

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other debt instruments backed by future appropriations for federal-aid transportation projects

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whereby such amounts are used to cover an assortment of bond-related costs, including principal

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and interest payments, issuance costs, insurance, and other costs incidental to financing; and

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     WHEREAS, Among other advantages, GARVEE Bonds may be issued as special revenue

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bonds without a full faith and credit pledge by the state of Rhode Island; and

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     WHEREAS, This general assembly finds that the reconstruction, maintenance, and repair

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of the transportation infrastructure of the state is critical for economic development and the general

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welfare of both businesses and residents; and

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     WHEREAS, The general assembly has studied the issue of sustainable transportation

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funding and has determined that no single approach, instrument or method is able to provide

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sufficient revenue to maintain the state transportation system in a state of good repair; and

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     WHEREAS, The department has determined that GARVEE Bonds should be utilized to

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fund the bridge replacement, reconstruction, and maintenance component of the ten (10) year

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capital program known as RhodeWorks; and

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     WHEREAS, In connection with the issuance of GARVEE Bonds, the state of Rhode

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Island, acting by and through RIDOT, may elect to receive in lieu of certain monies which would

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otherwise have been received as reimbursement from FHWA for project costs for bridges in the

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RhodeWorks program, debt service payments to repay indebtedness in the form of bonds or notes

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issued to finance the costs of the construction and financing bridges in the RhodeWorks program;

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and

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     WHEREAS, The Rhode Island Public Corporation Debt Management Act (chapter 8 of

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title 35) requires the general assembly to provide its consent to the issuance of certain obligations

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for essential public facilities of the type referenced herein; and

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     WHEREAS, The design, construction, equipping and completion of these improvements

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will be financed in whole or in part through revenue bonds issued pursuant to the GARVEE

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program by the Rhode Island commerce corporation ("commerce corporation") or through revenue

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bonds issued pursuant to the GARVEE program by another agency, instrumentality or quasi-public

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corporation established by the state of Rhode Island now or hereafter and otherwise authorized and

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empowered pursuant to law to issue bonds of the type referenced herein for the types of projects

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enumerated herein, with such issuance having an expected term of fifteen (15) years, and annual

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revenues for the operation and maintenance of the bridges to be included in the annual operating

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budget of RIDOT; and

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     WHEREAS, The capital costs and anticipated bond issuance amounts associated with these

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projects are estimated to be two hundred million dollars ($200,000,000); now, therefore, be it

 

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     RESOLVED AND ENACTED, That the bridges in the RhodeWorks program are each

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essential public facilities and critical to ensure the economic viability of the citizens, businesses,

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transportation, marine trades and port facilities of the state of Rhode Island and otherwise in the

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best interests of the state of Rhode Island, and that this general assembly hereby approves financing

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not to exceed two hundred million dollars ($200,000,000) in principal amount of GARVEE Bonds,

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the repayment of which shall be derived from and supported by FHWA funds due the state of

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Rhode Island. The term of the GARVEE Bonds shall not exceed fifteen (15) years and the total

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debt service on the GARVEE Bonds shall not exceed two hundred seventy-five million dollars

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($275,000,000); and be it further

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     RESOLVED, That the governor of the state of Rhode Island or the director of the

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department of transportation or the director of the department of administration or the chief

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executive officer or the chief operating officer of the commerce corporation each be and each

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hereafter are, acting singly, authorized and empowered by the general assembly to enter into a

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financing lease, guarantee, loan and trust agreement, indenture or other obligations or contracts or

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agreements and to take such other actions as such official shall deem necessary or appropriate in

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order to issue or facilitate the issuance of the GARVEE Bonds and to provide the commerce

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corporation or any subsidiary thereof or other instrumentality, agency or quasi-public corporation

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otherwise authorized and empowered to issue the bonds specified in this Joint Resolution for the

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RhodeWorks program with the necessary debt service payments up to the amount specified above

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and the necessary security for such bonds consistent with the provisions of this Joint Resolution,

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including any action to pledge, assign or otherwise transfer the right to receive all or any portion

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of future FHWA appropriations for federal-aid transportation projects or other revenues permitted

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by the laws of the state of Rhode Island to secure or provide for the payment of any such GARVEE

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Bonds; and be it further

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     RESOLVED, That, this Joint Resolution shall take effect upon passage.

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     SECTION 7. This Article shall take effect upon passage.

 

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