Chapter 026

Chapter 026

2003 -- S 0955

Enacted 04/10/03

 

A N A C T

AUTHORIZING THE BRISTOL WARREN REGIONAL SCHOOL DISTRICT TO FINANCE CONSTRUCTION OF A NEW ELEMENTARY SCHOOL IN BRISTOL, RHODE ISLAND, AND ADDITIONS, IMPROVEMENTS AND RENOVATIONS TO HUGH COLE ELEMENTARY SCHOOL IN WARREN, RHODE ISLAND, BYFIELD ELEMENTARY SCHOOL IN BRISTOL, RHODE ISLAND, INCLUDING SITE INFRASTRUCTURE AND IMPROVEMENTS, THE FURNISHING AND EQUIPPING THEREOF AND THE PROVISION OF ARCHITECTURAL, ENGINEERING, SURVEYING AND OTHER SERVICES NECESSARY OR APPROPRIATE THEREFOR, AND TO ISSUE NOT MORE THAN $38,000,000 BONDS AND NOTES THEREFOR

 

     

     Introduced By: Senators Parella, Felag, and Bates

     Date Introduced: March 25, 2003

 

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. The Bristol Warren Regional School District is hereby empowered, in

addition to authority previously granted, to issue bonds to an amount not exceeding thirty-eight

million dollars ($38,000,000) from time to time under its corporate name and seal. The bonds of

each issue may be issued in the form of serial bonds or term bonds or a combination thereof and

shall be payable either by maturity of principal in the case of serial bonds or by mandatory serial

redemption in the case of term bonds, in annual installments of principal, the first installment to

be not later than five (5) years and the last installment not later than thirty (30) years after the date

of the bonds. All such bonds of a particular issue may be issued in the form of zero coupon

bonds, capital appreciation bonds, serial bonds or term bonds or a combination thereof. Annual

installments of principal may be provided for by maturity of principal in the case of serial bonds

or by mandatory serial redemption in the case of term bonds. The amount of principle

appreciation each year on any bonds, after the date of original issuance, shall not be considered to

be principal indebtedness for the purposes of any constitutional or statutory debt limit or any

other limitation. The appreciation of principal after the date of original issue shall be considered

interest. Only the original principal amount shall be counted in determining the principal amount

so issued and any interest component shall be disregarded. For each issue the amounts payable in

the several years for principal and interest combined either shall be as nearly equal from year to

year as is practicable to make them in the opinion of the officers authorized to issue the bonds, or

in the alternative, in accordance with a schedule providing for a more rapid amortization of

principal.

     SECTION 2. The bonds shall be signed by the manual or facsimile signatures of the

treasurer and the chairperson of the regional district school committee (the "school committee")

and shall be issued and sold in such amounts as the school committee may authorize. The manner

of sale, denominations, maturities, interest rates and other terms, conditions and details of any

bonds or notes issued under this act may be fixed by proceedings of the school committee

authorizing the issue or by separate resolution of the school committee or, to the extent provisions

for these matters are not so made, they may be fixed by the officers authorized to sign the bonds

or notes. Interest coupons (if any) shall bear the manual or facsimile signature of the treasurer.

The proceeds derived from the sale of the bonds shall be delivered to the treasurer, and such

proceeds, exclusive of premiums and accrued interest, shall be expended (a) to finance the design

and construction of a new elementary school in Bristol, Rhode Island, (b) to finance the design,

construction, additions, improvements, renovations, alterations and repairs to the Hugh Cole

Elementary School and the Byfield Elementary School, and (c) to finance site infrastructure and

improvements and the acquisition of furnishings and equipment, and the provision of

architectural, engineering, surveying and other services necessary or appropriate for the projects

set forth in (a) and (b) above, (d) once the projects set forth in (a), (b) and (c) above are

completed, to the extent there are bond proceeds, to finance the design and construction of

renovations, improvements, alterations and repairs to the Reynolds School, including the

furnishings and equipping thereof and the provision of architectural, engineering, surveying and

other services necessary or appropriate therefor, (e) in payment of the principal of and interest on

temporary notes issued under section three, (f) in repayment in advances under section four, (g) in

payment of related costs of issuance of any bonds or notes, and/or (h) to finance capitalized

interests on the above described projects (the "Projects"). No purchaser of any bonds or notes

under this act shall be in any way responsible for the proper application of the proceeds derived

from the sale thereof. The Projects shall be carried out and all contracts made therefor on behalf

of the district by the school committee, or as may be otherwise delegated to the regional district

school building committee by the school committee. The proceeds of bonds or notes issued under

this act, any applicable federal or state assistance, and the other moneys referred to in sections six

and nine shall be deemed appropriated for the purposes of this act without further action than that

required by this act. The treasurer and chairperson of the school committee, on behalf of the

district, are hereby authorized to execute such instruments, documents or other papers as either of

them deem necessary or desirable to carry out the intent of this act and are also authorized to take

all actions and execute all documents or agreements necessary to comply with federal tax and

securities laws, which documents or agreements may have a term coextensive with the maturity

of the bonds authorized hereby, including Rule 15c2-12 of the Securities and Exchange

Commission and to execute and deliver a continuing disclosure agreement or certificate in

connection with the bonds or notes.

     SECTION 3. The school committee may by resolution authorize the issue from time to

time of interest bearing or discounted notes in anticipation of the issue of bonds or in anticipation

of the receipt of federal or state aid for the purposes of this act. The amount of original notes

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

this act and the amount of original notes issued in anticipation of federal or state aid may not

exceed the amount of available federal or state aid as estimated by the treasurer. Temporary notes

issued hereunder shall be signed by the manual or facsimile signature of the treasurer and the

chairperson of the school committee and shall be payable within five (5) years from their

respective dates, but the principal of and interest on notes issued for a shorter period may be

renewed or paid from time to time by the issue of other notes hereunder, provided the period from

the date of an original note to the maturity or any note issued to renew or pay the same debt or the

interest thereon shall not exceed five (5) years.

     SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu

of any authorization or issue of notes hereunder, the treasurer, with the approval of the school

committee, may, to the extent that bonds or notes may be issued hereunder, apply funds in the

treasury of the district to the purposes specified in section two, such advances to be repaid

without interest from the proceeds of bonds or notes subsequently issued or from the proceeds of

applicable federal or state assistance or from other available funds.

     SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable

federal or state assistance, pending their expenditure, may be deposited or invested by the

treasurer in demand deposits, time deposits or savings deposits in banks which are members of

the Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United

States of America or by any agency or instrumentality thereof or as may be provided in any other

applicable law of the State of Rhode Island or resolution of the school committee or pursuant to

an investment policy of the district.

     SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder

shall be applied to the payment of the first interest due thereon. Any premiums arising from the

sale of bonds or notes hereunder and any earnings or net profit realized from the deposit or

investment of funds hereunder shall, in the discretion of the treasurer, be applied to the cost of

preparing, issuing and marketing bonds or notes hereunder to the extent not otherwise provided,

to the payment of the cost of the Projects, to the payment of the principal of or interest on bonds

or notes issued hereunder or to any one (1) or more of the foregoing. The cost of preparing,

issuing and marketing bonds or notes hereunder may also, in the discretion of the treasurer, be

met from bond or note proceeds exclusive of premium and accrued interest or from other moneys

available therefor. Any balance of bond or note proceeds remaining after payment of the cost of

the Projects and the cost of preparing, issuing and marketing bonds or notes hereunder shall be

applied to the payment of the principal of or interest on bonds or notes issued hereunder. In

exercising any discretion under this section, the treasurer shall be governed by any instructions

adopted by resolution of the school district.

     SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby

shall be obligatory on the district in the same manner and to the same extent as such debts are

obligatory under the laws of this state on incorporated towns of this state. All bonds and notes

issued under this act and the debts evidenced thereby shall be excepted from the operation of

section 16-3-17 of the general laws, section 3, XIV of Chapter 330 of the 1991 public laws of the

State of Rhode Island (the "Enabling Statute") and any other provision of charter, special law or

general law limiting the issuance of debt. No such obligation shall at any time be included in the

debt of the either member town for the purpose of ascertaining its borrowing capacity, nor shall it

be subject to the provisions of section 45-12-2 of the general laws with respect to each member

town. The district shall annually appropriate and apportion between the member towns a sum

sufficient to pay the principal and interest coming due within the year on bonds and notes issued

hereunder to the extent that moneys therefor are not otherwise provided, and each town shall,

annually, appropriate a sum sufficient to pay its share of the apportionment. If such sum is not

appropriated, it shall nevertheless be added to the annual tax levy. In order to provide such sum in

each year and notwithstanding any provision of law to the contrary, all taxable property in each

member town shall be subject to ad valorem taxation by the town without limitation as to rate or

amount to pay the town's share of such apportionment.

     SECTION 8. Any bonds or notes issued under the provisions of this act, if properly

executed by officers of the district in office on the date of execution, shall be valid and binding

according to their terms notwithstanding that before the delivery thereof and payment therefor

any or all of such officers shall for any reason have ceased to hold office.

     SECTION 9. The district, acting by its school committee, is authorized to apply for,

contract for and expend any federal or state advances or other grants or assistance which may be

available for the purposes of this act, and any such expenditures may be in addition to other

moneys provided in this act. To the extent of any inconsistency between any law of this state and

any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with

interest where applicable, whether contracted for prior to or after the effective date of this act,

may be repaid as Project costs under section two.

     SECTION 10. Bonds and notes may be issued under this act without obtaining the

approval of any governmental agency or the taking of any proceedings or the happening of any

conditions or compliance with any general or special law except as specifically required by this

act for such issue. In carrying out any Projects financed in whole or in part under this act,

including where applicable the condemnation of any land or interest in land, and in the levy and

collection of assessments or other charges permitted by law on account of any such Projects, all

action shall be taken which is necessary to meet constitutional requirements whether or not such

action is otherwise required by statute; but the validity of bonds and notes issued hereunder shall

in no way depend upon the validity or occurrence of such action.

     SECTION 11. The regional district school building committee for the work authorized

hereunder shall be constituted as follows:

     There shall be a regional district school building committee which shall serve at the

pleasure of the school committee and which shall consist of no more than seven members, each of

whom shall be appointed by the school committee and representative of each town, and no more

than two ex officio members, each of whom shall be appointed by the Superintendent, who shall

have experience in the supervision of public works projects. Ex officio members shall not be

entitled to vote on any matter before the regional district school building committee.

     Such regional district school building committee, if not earlier appointed by the school

committee, shall be appointed within thirty days after the passage of the referendum authorized

under section 12 of this act, and upon appointment shall meet at the call of the chairperson of the

school committee; at its initial meeting, the regional district school building committee shall

organize itself by the election of a chairperson, a vice-chairperson for construction, a vice-

chairperson for finance, a secretary and such other officers as it shall deem necessary.

     The regional district school building committee shall have the following powers and

duties as delegated to it by the school committee, including:

     (a) To secure competent consultant, architectural and engineering services for the making

of surveys, the preparation of plans and specifications for the projects specified in Section 2 of

this act, and the supervision of such construction, the monitoring of the costs of such projects, and

the employment of contractors and such legal and professional assistance as may be necessary.

     (b) To make all contracts and agreements that may be necessary for the exercise of the

powers vested in said regional district school building committee by subparagraph (a) hereof and

to make such expenditures and incur such liabilities as may be necessary to construct, equip and

finance the Projects authorized in Section 3 of this act, provided that the same shall not exceed

the sum authorized hereunder.

     The term of the regional district school building committee shall be at least six years, or

until such time as the new construction, additions, improvements and renovations have been

constructed and accepted by the architects engaged by the regional district school building

committee and the school committee for one year thereafter, whereupon the term of office of said

regional district school building committee shall terminate.

     The school committee shall have the power to remove any member with or without

cause. In event of a vacancy on the regional district school building committee (whether by

resignation, inability to serve or removal of a member) said vacancy shall be filled by the school

committee.

     No member of the regional district school building committee shall be held personally

liable for damages in the performance of his or her duties as a member of said committee.

     SECTION 12. The question of the approval of this act shall be submitted to the electors

of the towns of Bristol and Warren at a special election to be held at polling places in each town

on June 10, 2003, or on any date as shall be designated by the school committee. For the purpose

of holding the special election on said question, there shall be issued in each town a warning such

as that which is prescribed by law for the calling of a special financial town meeting, which shall

contain the question to be submitted and shall state the day, the place, and the time for casting

ballots upon the said question. The question shall be submitted in substantially the following

form:

     “Shall an act, passed at the 2003 session of the General Assembly, entitled ‘AN ACT

AUTHORIZING THE BRISTOL WARREN REGIONAL SCHOOL DISTRICT TO FINANCE

CONSTRUCTION OF A NEW ELEMENTARY SCHOOL IN BRISTOL, RHODE ISLAND,

AND ADDITIONS, IMPROVEMENTS AND RENOVATIONS TO HUGH COLE

ELEMENTARY SCHOOL IN WARREN, RHODE ISLAND, BYFIELD ELEMENTARY

SCHOOL IN BRISTOL, RHODE ISLAND, INCLUDING SITE INFRASTRUCTURE AND

IMPROVEMENTS, THE FURNISHING AND EQUIPPING THEREOF AND THE

PROVISION OF ARCHITECTURAL, ENGINEERING, SURVEYING AND OTHER

SERVICES NECESSARY OR APPROPRIATE THEREFOR, AND TO ISSUE NOT MORE

THAN $38,000,000 BONDS AND NOTES THEREFOR’ be approved?”

     From the date the election is warned and until it is held, it shall be the duty of the town

clerks of the respective towns of Bristol and Warren to keep a copy of the act available at their

offices for public inspection, but the validity of the election shall not be affected by this

requirement. To the extent of any inconsistency between this act and the town charters of either

or both towns, this act shall prevail.

     SECTION 13. This section and the foregoing section shall take effect upon the passage of

this act. The remainder of this act shall take effect upon the approval of this act by (a) a majority

of the electors voting on the question in the town of Warren, Rhode Island and (b) a majority of

the electors voting on the question in the town of Bristol, Rhode Island.

=======

LC02779

=======