2023 -- H 6001

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LC002390

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- RHODE ISLAND PUBLIC

TRANSIT AUTHORITY

     Introduced By: Representatives O'Brien, Kazarian, Casimiro, McEntee, Craven,
Caldwell, Dawson, Serpa, Bennett, and Diaz

     Date Introduced: March 01, 2023

     Referred To: House Finance

     (RIPTA)

It is enacted by the General Assembly as follows:

     SECTION 1. Sections 39-18-1, 39-18-3 and 39-18-7 of the General Laws in Chapter 39-

18 entitled "Rhode Island Public Transit Authority" are hereby amended to read as follows:

     39-18-1. Definitions.

     As used in this chapter, the following words and terms shall have the following meanings

unless the context shall indicate another or different meaning:

     (1) “Authority” means the Rhode Island public transit authority created by § 39-18-2, or,

if the authority shall be abolished, the board, body, or commission succeeding to the principal

functions thereof, or upon whom the powers of the authority given by this chapter shall be given

by law.

     (2) “Bonds” means bonds, notes, or other evidences of indebtedness, including temporary

notes of the authority issued in anticipation of revenues to be received by the authority or in

anticipation of the receipt of federal, state, or local grants or other aid.

     (3) “Dorrance street transit center project” means a transit property proposed by the

authority to be developed on Dorrance street in the city of Providence that is expected to include

an enclosed intermodal transit center, indoor parking, and authority administrative space, adjacent

and/or integrated transit-oriented development, and related infrastructure.

     (3)(4) “Municipality” means any town, city, or subdivision thereof.

     (4)(5) “Transit property” means and includes any property, whether real or personal, and

any apparatus and equipment used or useful in the operation of a motor bus, water, or rail passenger

transportation line or system, and includes any rights or franchises to operate any passenger

transportation line or system, but it does not include other property or assets.

     39-18-3. Purposes of the authority.

     (a) It shall be the purposes of the authority to:

     (1) Provide public transit services that meet mobility needs of the people of the state,

including the elderly and disabled;

     (2) Increase access to employment opportunities;

     (3) Connect different modes of public transportation, including rail, air, and water services;

     (4) Promote community design that features public transit services as defining elements of

a community;

     (5) Facilitate energy conservation and efficient energy use in the transportation sector by

providing public transit services; and

     (6) Mitigate traffic congestion and enhance air quality.; and

     (7) Facilitate transit-oriented development in support of the development of transit

properties.

     (b) It shall further be the purpose of the authority to own and operate a mass motor bus,

water, or rail passenger transportation system and to manage, to coordinate, and to perform vehicle

maintenance for a state paratransit system. Whenever any operator of a mass motor bus, water, or

rail passenger transportation system files with the public utilities administrator a petition to

discontinue any service, it is the purpose and function of the authority to determine if it is in the

public interest to discontinue that service. If it is determined that it is not in the public interest to

discontinue that service, the authority is authorized and empowered to acquire all or any part of the

transit property, or any interest therein, of the system.

     39-18-7. Bonds.

     (a)(1) The authority is hereby authorized to provide, by resolution, for the issuance at one

time, or from time to time, of bonds of the authority for any of its purposes. The bonds may be

general obligations of the authority or special obligations payable only from particular funds. The

bonds of each issue shall be dated, shall bear interest at such rate or rates as may be determined by

the authority, and shall mature at such time or times not exceeding thirty (30) years from their date

or dates as may be determined by the authority, and may be made redeemable before maturity, at

the option of the authority, at such price or prices and under such terms and conditions as may be

fixed by the authority prior to the issuance of the bonds. Temporary notes of the authority may be

issued and refunded from time to time in anticipation of revenues to be received by the authority

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or in anticipation of the receipt of federal, state, or local grants or other aid. Temporary notes shall

mature no later than thirteen (13) months from their respective dates or six (6) months after the

expected date of receipt of the grants or aid, whichever shall be later, and may be renewed from

time to time in anticipation of the receipt of additional federal, state, or local grants or other aid.

Temporary notes shall be in an amount not exceeding the limitations imposed by the last paragraph

of this section. The authority shall determine the form of the bonds, including any interest coupons

to be attached thereto, and shall fix the denomination or denominations of the bonds and the place

or places of payment of the principal and interest which may be at any bank or trust company within

or without the state. The bonds shall be signed by the chairperson of the authority or shall bear his

or her facsimile signature, and the official seal of the authority, or a facsimile thereof, shall be

impressed or imprinted thereupon and attested by the secretary of the authority, and any coupons

attached to the bonds shall bear the facsimile signature of the chairperson of the authority. In case

any officer whose signature or facsimile of whose signature shall appear on any bonds or coupons

shall cease to be the officer before the delivery of the bonds, the signature or the facsimile shall,

nevertheless, be valid and sufficient for all purposes the same as if he or she had remained in office

until delivery. The bonds may be issued in coupon or in registered form, or both, as the authority

may determine, and provision may be made for the registration of any coupon bonds as to principal

alone, and also as to both principal and interest, for the reconversion into coupon bonds of any

bonds registered as to both principal and interest, and for the interchange of registered and coupon

bonds. The authority may sell such bonds in such manner either at public or private sale and for the

price as it may determine will best effect the purposes of this chapter.

     (2) Bonds, temporary notes or other obligations of the authority issued for supported transit

projects (including any bonds issued to refinance or refund such bonds) may be authorized pursuant

to subsection (a)(1) of this section; provided, however, such bonds shall mature at such time or

times not exceeding forty (40) years from their date or dates as may be determined by the authority;

and provided further, temporary notes or other short term obligations of the authority issued for

supported transit projects in anticipation of revenues to be received by the authority or in

anticipation of the receipt of federal, state, or local grants, loans or other aid shall be entitled to a

maturity extending to the maximum period of time within which federal or state grant or loan

proceeds may be payable under such applicable federal or state programs, and shall not be subject

to the limitations imposed by subsection (d) of this section In connection with the development and

financing of a supported transit project, the authority’s powers and duties under this chapter,

including, without limitation, under §§ 39-18-4 and 39-18-6, shall apply to transit-oriented

development in the same manner as they apply to transit properties. No bonds, temporary notes or

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other short term obligations of the authority issued for supported transit projects shall be issued by

the authority unless, at the time of the adoption by the authority of the resolution authorizing the

issuance of the bonds, temporary notes or other short term obligations, the authority shall have

received from the general manager or chief financial officer of the authority a certificate which

shall describe with reasonable particularity the scope of the supported transit project, including the

elements thereof, calculations of principal and interest payments and of anticipated revenues,

including federal, state, or local grants or other aid and the terms thereof, and anticipated

expenditures relating thereto. A copy of the certificate shall be furnished to the governor prior to

the issuance of the bonds, temporary notes or other short term obligations described in the

certificate.

     (b) The proceeds of the bonds of each issue shall be disbursed in the manner and under

restrictions, if any, as the authority may provide in the resolution authorizing the issuance of the

bonds or in the trust agreement described in § 39-18-8 securing the bonds.

     (c) Prior to the preparation of definitive bonds, the authority may, under like restrictions,

issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive

bonds when the bonds shall have been executed and are available for delivery. The authority may

also provide for the replacement of any bonds that shall become mutilated or shall be destroyed or

lost. Except as provided in the following paragraph, bonds may be issued under the provisions of

this chapter without obtaining the consent of any department, division, commission, board, bureau,

or agency of the state, and without any other proceedings or the happening of any other conditions

or things than those proceedings, conditions, or things that are specifically required by this chapter.

     (d) No Except as provided in subsection (a)(2) of this section, no bonds shall be issued by

the authority unless, at the time of the adoption by the authority of the resolution authorizing the

issuance of the bonds, the authority shall have received from the general manager or chief financial

officer of the authority a certificate indicating that the payments of principal (including any

payments made to a reserve fund other than payments made from bond proceeds) and interest on

the bonds, together with the payments of the principal and interest on all other then outstanding

bonds of the authority, will not exceed during any fiscal year of the authority eighty percent (80%)

of the revenues (including, without limitation, grants and other aid) of the authority during the fiscal

year. In determining the amount of the principal and interest payments to be made during any fiscal

year, there shall be deducted any payments to be made from a reserve fund previously established

to provide for the payments. The certificate shall be based upon the reasonable expectations (both

as to the amount of revenues to be received by the authority and as to the maximum amount of any

variable payments to be made on the bonds) of the officer of the authority executing the certificate

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at the time the certificate is delivered. The certificate shall describe with reasonable particularity

the calculations of principal and interest payments and of anticipated revenues upon which the

certificate is based. A copy of the certificate shall be furnished to the governor prior to the issuance

of the bonds described in the certificate and, in the case of any bonds whose issuance, according to

the certificate, is expected to result in the aggregate amount of principal and interest payments

(calculated as above) on the bonds and all then outstanding bonds of the authority exceeding in any

fiscal year of the authority fifty percent (50%) of the revenues of the authority, the bonds shall not

be issued unless the governor shall have approved the issuance or not disapproved the issuance

within thirty (30) days of the receipt of the certificate. Approval or disapproval of any bond issue

by the governor shall be evidenced by delivery to the authority of a certificate approving or

disapproving the issue or any part thereof.

     SECTION 2. Chapter 39-18 of the General Laws entitled "Rhode Island Public Transit

Authority" is hereby amended by adding thereto the following sections:

     39-18-25. Design build/P3 authorization.

     (a) Definitions. As used in this chapter, unless the context otherwise indicates:

     (1) “Best value” means the highest overall value to the authority, considering quality and

cost.

     (2) “Design-build contracting” means a method of project delivery where a single private

entity is contractually responsible to perform design, construction, and related services.

     (3) “Major participant” means any entity that would have a major role in the design and

construction of a project as specified by the authority in the request for proposals.

     (4) “Private entity” means any corporation, general partnership, limited liability company,

limited partnership, joint venture, business trust, public benefit corporation, nonprofit entity or

other business entity.

     (5) “Progressive design-build contracting” means a method of project delivery where a

private entity performs design, construction and related services for the authority in a phased

manner, based on a preliminary design that is developed with the authority on a collaborative basis.

     (6) “Project” means a supported transit project or any other capital project, and related

services by a private entity, including, without limitation, design, financing, construction,

development, operation, maintenance, management and/or leasing, or any combination of the

foregoing, procured by the authority under this section (including without limitation the Dorrance

street transit center project).

     (7) “Proposal” means a proposal by the proposer in connection with a project, in

accordance with the requirements of a request-for-proposals that, after review, evaluation,

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negotiation and documentation may lead to an agreement with the authority.

     (8) “Proposer” means any private entity that submits a proposal in accordance with the

requirements of a request-for-proposals.

     (9) “Public-private partnership” or “P3” means an alternative project delivery mechanism

that may be used by the authority to facilitate a private entity’s participation in a project, including

in its design, financing, construction, development, operation, maintenance, management, and/or

leasing (or any combination of the foregoing).

     (10) “P3 agreement” means a contract or other agreement between the authority and a

private entity to undertake a project as a public-private partnership and that sets forth rights and

obligations of the authority and the private entity.

     (11) “Quality” means those features that the authority determines are most important to a

project. Quality criteria may include quality of design, constructability, long-term maintenance

costs, aesthetics, local impacts, traveler and other user costs, service life, time to construct, and

other factors that the authority considers to be in the best interests of the authority.

     39-18-26. Authorization.

     (a) Notwithstanding any other provision of law, the authority may use design-build

contracting, including progressive design-build contracting, and/or a public-private partnership to

deliver a project. The authority may evaluate and select proposals on either a best-value or a low-

bid basis. If the scope of work requires substantial engineering judgment, the quality of which may

vary significantly as determined by the authority, then the basis of award shall be best-value.

     (b) The authority shall identify those projects it believes are candidates for design-build

contracting, including progressive design-build contracting, or a public-private partnership,

including, without limitation, those involving extraordinary circumstances, such as emergency

work, unscheduled projects, or funding shortfalls.

     (c) The authority retains the authority to terminate the procurement process at any time, to

reject any proposal, to waive technicalities, or to advertise for new proposals if the authority

determines that it is in the best interests of the state.

     39-18-27. Prequalification.

     (a) The authority may require that entities be prequalified to submit proposals with respect

to a project. If the authority requires prequalification, it shall;

     (1) Give public notice requesting qualifications from interested private entities

electronically through the authority’s publicly accessible website or through advertisements in

newspapers; and

     (2) Make available a request-for-qualifications package to all private entities requesting

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one in accordance with the notice. The authority may alternatively make any such request-for-

qualifications package available to all interested private entities electronically through the

authority’s publicly accessible website.

     (b) Interested private entities shall supply for themselves, and for all major participants, all

information required by the authority under any such request-for-qualifications. The authority may

investigate and verify all information received. All financial information, trade secrets, or other

information customarily regarded as confidential business information submitted to the authority

shall be confidential.

     (c) The authority shall evaluate and rate all private entities submitting a conforming

statement of qualifications in response to a request-for-qualifications and select the most qualified

private entities to receive a request-for-proposals. The authority may select any number of private

entities, except that if the authority fails to prequalify at least two (2) private entities, the authority

shall readvertise, or cancel, the project procurement.

     39-18-28. Request for proposals.

     The authority may issue a request-for-proposals with respect to a project, which shall set

forth the scope of work, design parameters, construction requirements, time constraints, and all

other requirements that have a substantial impact on the cost or quality of a project and the project

development process, as determined by the authority. The authority need not issue a request-for-

qualifications prior to issuing a request-for-proposals. The request-for-proposals shall include the

criteria for conforming proposals. For projects to be awarded on a best-value basis, the scoring

process and quality criteria must also be contained in the request-for-proposals. In the authority’s

discretion, the request-for-proposals may provide for a process, including the establishment of a

committee to review proposals, for the authority to review conceptual technical elements of each

proposal before full proposal submittal for the purposes of identifying defects that would cause

rejection of the proposal as nonresponsive. All such conceptual submittals and responses shall be

confidential until execution of the relevant contract, or the cancellation of the procurement. The

request-for-proposals may also provide for a stipend upon specified terms to unsuccessful

proposers that submit proposals conforming to all request-for-proposal requirements.

     39-18-29. Low-bid award.

     If the basis of the award of responsive proposals is low-bid, then each proposal, including

the price or prices, shall be sealed by the proposer and submitted to the authority as one complete

package. The authority shall award the design-build contract to the proposer that submits a

responsive proposal with the lowest cost, if the proposal meets all request-for-proposals

requirements.

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     39-18-30. Best-value award.

     (a) If the basis of the award of responsive proposals is best-value, then each proposal shall

be submitted by the proposer to the authority in two (2) separate components: a sealed technical

proposal and a sealed price proposal. These two (2) components shall be submitted simultaneously.

The authority shall first open, evaluate, and score each responsive technical proposal, based on the

quality criteria contained in the request-for-proposals. The request-for-proposals may provide that

the range between the highest and lowest quality scores of responsive technical proposals must be

limited to an amount certain. During this evaluation process, the price proposals shall remain

sealed, and all technical proposals shall be confidential.

     (b) After completion of the evaluation of the technical proposals, the authority shall open

and review each price proposal. The authority shall develop a system for assessing the cost and

quality criteria. The authority shall award the contract to the proposer with the proposal

representing the best value to the authority.

     SECTION 3. This act shall take effect upon passage, and shall apply with respect to any

contract entered into by the authority after such effective date.

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LC002390

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- RHODE ISLAND PUBLIC

TRANSIT AUTHORITY

***

     This act would authorize the Rhode Island public transit authority to enter into certain

projects and procure related services including the Dorrance street transit center, using design build

contracting and progressive design build contracting.

     This act would take effect upon passage, and would apply with respect to any contract

entered into by the authority after such effective date.

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