Chapter 08-100-04

ARTICLE 4 SUBSTITUTE A AS AMENDED

RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTION

SECTION 1. This article consists of Joint Resolutions that are submitted pursuant to Rhode Island General Laws § 35-18-1, et seq.

SECTION 2. Section 5, Article 7 of Chapter 246 of the 2006 Public Laws is hereby amended to read as follows:

Section 5. School for the Deaf.

WHEREAS, The State currently lacks the appropriate facility with furnishings, and equipment to educate and serve the deaf population; and

WHEREAS, The General Assembly funded a study in the FY 2006 budget to determine the cost of a new facility; and

WHEREAS, The study revealed that a new facility would cost approximately $31.16 million; and

WHEREAS, There is state-owned property in ~~Lincoln~~ Providence, Rhode Island which is suitable for the facility; and

WHEREAS, The project costs associated with constructing and equipping a new School for the Deaf are estimated to be $31.16 million. The total financing obligation of the State of Rhode Island would be approximately ~~$31.25~~ $33.29 million, with ~~$31.16~~ $29.91 million deposited in the construction fund, $2.817 million deposited in a debt service reserve fund and ~~$90,000~~ $563,150 available to pay the associated costs of financing, including underwriters discount and bond insurance premium. Total payments on the state's obligation over twenty (20) years on the ~~$31.25~~ $33.29 million issuance are projected to be ~~$49.6~~ $52.98 million, assuming an average effective interest rate of ~~5.0%~~ 5.5%. The payments would be financed within the Department of Administration from general revenue appropriations; now, therefore be it

RESOLVED, That a new School for the Deaf is needed to provide an environment conducive to earning; and be it further

RESOLVED, That this General Assembly hereby approves financing in an amount not to exceed ~~$31.25~~ $33.29 million for the construction of a new School for the Deaf; and be it further

RESOLVED, That this resolution shall apply to bonds issued on or before June 30, 2009; and be it further

RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by this General Assembly.

SECTION 3. Energy Service Companies - Equipment Replacement.

WHEREAS, in fiscal year 2006 Rhode Island state government expended approximately $50.0 million on energy utilities for state-owned facilities; and

WHEREAS, energy prices increased significantly during fiscal year 2007 and are expected to continue to rise in fiscal year 2008 and beyond; and

WHEREAS, the State of Rhode Island owns numerous buildings with boilers, heating systems, air conditioning systems, lighting and control systems, many of which are antiquated, inefficient, and expensive to maintain; and

WHEREAS, various private sector companies, hereinafter referred to as energy service companies or “ESCOs”, are willing to guarantee energy savings to pay for the cost of the replacement of these antiquated and inefficient boilers, heating and air conditioning, lighting and other building systems and equipment; and

WHEREAS, the department of administration is seeking to retain ESCOs to undertake energy service contracts; and

WHEREAS, the department of administration is seeking to undertake energy savings contracts to replace old and obsolete equipment and the estimated cost of such contracts are:

Pastore Government Center, an amount not to exceed $45.5 million; and

Zambarano Hospital Campus, an amount not to exceed $7.6 million; now, therefore, be it

RESOLVED, that the department of administration is authorized to proceed with the aforementioned projects in the amounts specified above, and be it further

RESOLVED, that these contracts will be structured so that, at a minimum, the annual principal, interest and service and maintenance costs resulting from these contracts would be completely offset by the annual energy savings guaranteed by the ESCOs; and be it further

RESOLVED, that these contracts would be multi-year contracts of up to a term of eighteen years. In addition to saving energy and helping to protect the state from future energy cost increases, these contracts would aid in reducing maintenance costs by providing new equipment and replacing older energy consuming systems.

SECTION 4. Historic Preservation Tax Credit Trust Fund.

WHEREAS, The General Assembly finds that the State of Rhode Island tax credits earned pursuant to Rhode Island General Laws sections 44-33.2-1 et seq. (historic structures – tax credits) (the "Historic Tax Credits") have had and continue to have the desired effect of stimulating, promoting and encouraging the redevelopment and reuse of historic structures by modern commercial, residential and manufacturing enterprises in order to foster civic beauty, promote public education, pleasure and welfare and otherwise generally improve and enhance the long-term economic well-being of the citizens of the State of Rhode Island;

WHEREAS, It is estimated that the State of Rhode Island will be presented with Historic Tax Credits in the amount of $~~336.4~~ 319.2 million over the next thirteen years;

WHEREAS, Given the nature of the development process it is difficult to project the amount of Historic Tax Credits which will be presented in a given fiscal year;

WHEREAS, It is in the best interest of the State of Rhode Island to stabilize budget projections and streamline the annual impacts of the presentment of Historic Tax Credits;

WHEREAS, The Rhode Island Public Corporation Debt Management Act (Rhode Island General Laws sections 35-18-1 et seq.) requires the General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island and other public agencies of certain obligations;

WHEREAS, The balanced absorption of the Historic Tax Credits shall be financed in whole or in part through revenue bonds issued by the Rhode Island Economic Development Corporation (the "RIEDC");

WHEREAS, The total financing obligation would be approximately $~~348.7~~ 356.2 million, with approximately $~~302.5~~ 299.9 million deposited in the project fund, approximately $46 52.5 million deposited in a debt service reserve fund, and approximately $~~0.15~~ 4.2 million associated with net financing costs, costs of issuance and costs of credit enhancement/bond insurance after taking into account premium to be received upon the sale of the bonds. Annual principal and interest payments are estimated to be $47 50.6 million or $~~374~~ 403.2 million in the aggregate based on level debt service and offsetting debt service reserve fund resources, an average interest rate of ~~4.85~~ 5.92% and a nine year maturity;

WHEREAS, The RIEDC will be issuing not more than $~~348.7~~ 356.2 million Rhode Island Economic Development Corporation Revenue Bonds – Historic Structures Tax Credit Financing Taxable Series (the "Bonds") to be secured by annual budget appropriation by the General Assembly, and the payments would be financed within the Department of Administration from general revenue annual appropriations.

NOW, THEREFORE, be it resolved as follows:

RESOLVED, That the RIEDC is authorized to proceed with the financing as detailed above and the General Assembly hereby approves the RIEDC's issuance of not more than $~~348.7~~ 356.2 million in Bonds;

RESOLVED, That the RIEDC shall request the Governor to include in each of the fiscal years following the issuance of the Bonds by the RIEDC an amount equal to the debt service of the Bonds pursuant to the terms set forth in these Resolutions;

RESOLVED, That this General Assembly hereby authorizes the Governor to enter into a financial obligation, guarantee, or other agreement or agreements evidencing the financing obligations of the State regarding the Bonds (the "Payment Agreement") and such other agreement or agreements with the RIEDC which shall provide for transfers of monies to the State by the RIEDC upon presentment of Historic Tax Credits to the State by taxpayers;

RESOLVED, That neither the Bonds nor the Payment Agreement shall constitute indebtedness of the State or any of its subdivisions or a debt for which the full faith and credit of the State or any of its subdivisions is pledged except to the extent that the State appropriates funds for the Bonds or the Payment Agreement subject to annual budget appropriations.

SECTION 5. University of Rhode Island – North District Infrastructure

WHEREAS, The Board of Governors for Higher Education and the University of Rhode Island are proposing a project which involves the execution of site and utility infrastructure work and program support work essential to the delivery of current approved and proposed major academic building construction projects in the science and technology focused "North District" of the University's Kingston Campus; and

WHEREAS, The two lead projects in the North District, approved in the 2004 and 2006 bond referenda, are the Center for Biotechnology and Life Sciences and the new College of Pharmacy Building; and

WHEREAS, The need for this support project is driven by the need for these two projects to fund in its entirety the major $10,000,000 investment in primary utility infrastructure – high voltage electric, steam/condensate, water, sewer, and gas services to serve these projects and the future projects, the new Chemistry Building and Nursing and Associated Health Building projects, proposed to be developed on adjacent sites in the North District; and

WHEREAS, This project will offset the investments in primary utility infrastructure that had to be made at the present time from the lead project budgets by supporting on-site utility connections, drainage systems, hardscape such as walkways and parking areas, landscaping, demolition work, telephone/data, security systems, laboratory equipment, and fixtures and furnishings associated with the lead building projects; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island and other public agencies of certain obligations including financing guarantees or other agreements; and

WHEREAS, The engineering design and construction work will be financed through Rhode Island Health and Education Building Corporation revenue bonds, with an expected term of fifteen (15) years; and

WHEREAS, The total project costs associated with completion of the project and proposed financing method is eleven million one hundred seventy thousand dollars ($11,170,000), including cost of issuance, surety, and a debt service reserve fund. Debt Service payments would be supported by non appropriated, unrestricted general revenues of the University of Rhode Island. Total debt service on the bonds is not expected to exceed one million seventy-eight thousand dollars ($1,078,000) annually and sixteen million four hundred forty thousand dollars ($16,440,000) in the aggregate, inclusive of a half year interest only debt service payment in year one, based on an average interest rate of five and one quarter percent (5.25%); now, therefore be it

RESOLVED, That this General Assembly hereby approves financing in an amount not to exceed $11.17 million for the North District infrastructure project on the University of Rhode Island Kingston Campus; and be it further

RESOLVED, That this resolution shall apply to bonds issued on or before June 30, 2009.

SECTION 6. University of Rhode Island – Fire Safety & Protection – Auxiliary Enterprise Buildings.

WHEREAS, The Board of Governors for Higher Education and the University of Rhode Island are proposing a project which involves the installation of upgraded fire alarm and sprinkler systems as well as life safety improvements in older auxiliary enterprise buildings, including student residences, dining facilities, the student union, and health services facilities, in accordance with the recently amended State Fire Code; and

WHEREAS, The Board of Governors and the University have a long standing commitment to the improvement and maintenance of fire safety conditions in all of the buildings under their responsibility; and

WHEREAS, The University has already completed extensive fire safety improvements during the renovation of its older residence halls and health services facility as well as the replacement of two of its older dining facilities with the new Hope Commons; and

WHEREAS, The University engaged a qualified fire code compliance engineering firm to examine all of its occupied buildings and the firm has recommended fire safety improvements needed to satisfy the changes in the Rhode Island Fire Code; and

WHEREAS, There remains fire safety compliance investments, identified by the University's fire compliance engineering firm, in its Auxiliary Enterprise building complement that the University is prepared to advance in the amount of $17,724,833; and

WHEREAS, The design and construction associated with this fire safety compliance work in Auxiliary Enterprise buildings will be financed through the Rhode Island Health and Education Building Corporation (RIHEBC) revenue bonds, with an expected term of twenty (20) years; and

WHEREAS, The total project costs associated with completion of the project and proposed financing method is nineteen million four hundred five thousand dollars ($19,405,000), including cost of issuance, surety and a debt service reserve fund. Debt service payments would be supported by revenues derived from student fees associated with the respective Auxiliary Enterprises of the University of Rhode Island occupying said facilities. Total debt service on the bonds is not expected to exceed one million five hundred seventy thousand dollars ($1,570,000) annually and thirty one million eight hundred fifty thousand dollars ($31,850,000) in the aggregate, inclusive of a half year interest only debt service payment in year one, based on an average interest rate of five and one quarter (5.25%) percent; now, therefore be it

RESOLVED, That this General Assembly hereby approves financing in an amount not to exceed nineteen million four hundred five thousand dollars ($19,405,000) for the fire safety and protection project for the auxiliary enterprise buildings on the University of Rhode Island campus; and be it further

RESOLVED, That this resolution shall apply to bonds issued on or before June 30, 2009.

SECTION 7. University of Rhode Island – Student Athlete Development Center

WHEREAS, The Board of Governors for Higher Education and the University of Rhode Island are proposing a project which involves the construction of a Student Athlete Development Center located adjacent to and part of the Keaney Gymnasium and Tootell Center at the University of Rhode Island's Kingston Campus; and

WHEREAS, The project will involve the construction of the Center and the renovation to portions of Keaney Gymnasium and Tootell Center that will be utilized in support of the Center; and

WHEREAS, The student athlete development facilities that currently support University of Rhode Island student athletes are outdated, inadequate, and in disrepair; and

WHEREAS, The infrastructure of the University is critical to the success of student athletes and the University; and

WHEREAS, Funding for this project will be financed through RIHEBC revenue bonds, with an expected term of twenty (20) years, and with private fundraising; and

WHEREAS, The project costs associated with completion of the project and proposed financing method is seven million four hundred thousand dollars ($7,400,000), with the total financing obligation of the University at approximately four million dollars ($4,000,000), with three million five hundred thirty-five thousand dollars ($3,535,000) deposited in the construction fund, and four hundred sixty-five thousand dollars ($465,000) available to pay the associated costs of financing and a deposit to debt service reserve, and three million seven hundred ninety thousand dollars ($3,790,000) to be derived from private gifts for the project. Debt Service payments would be supported by non-appropriated unrestricted general revenues of the University of Rhode Island. Total debt service on the bonds is not expected to exceed three hundred thirty one thousand dollars ($331,000) annually and six million six hundred twenty thousand dollars ($6,620,000) in the aggregate over twenty years based on an average interest rate of five and one quarter (5.25%) percent; and

WHEREAS, It is customary for cash proceeds from pledges and commitments towards the funding of capital construction and renovation projects to be received in installment payments over multiple years; and

WHEREAS, It is in the interest of the University, the Board, and the State for this project to proceed with design and construction prior to all of the pledges and cash proceeds from such pledges are realized in order to avoid the impact of cost escalation on construction related expenditures and to gain the beneficial use of the project for University's student athletes at an earlier date; and

WHEREAS, The expenses associated with the short term financing, including issuance costs and interest expenses will be funded from private and third-party derived funding sources; and

WHEREAS, The financing will be tax-exempt in nature, free from pre-payment penalties so as to enable early principal reduction and interest expense avoidance in the event cash proceeds are received ahead of anticipated schedules, and issued in progressive installments as required to support project cash requirements in advance of pledged and committed cash proceeds; and

WHEREAS, The University anticipates working through the Rhode Island Health and Education Building Corporation to identify and execute the most appropriate and advantageous vehicle to meet the intended short-term pledge financing requirements, such vehicles to include, but not be limited to a secured letter of credit, and/or the issuance of short-term notes; and

WHEREAS, The aggregate principal value of the pledge financing transaction for the Student Athlete Development Center is of a not to exceed level of two million sixty thousand dollars ($2,060,000). Annual Debt Service, would not exceed four hundred sixty-eight thousand three hundred sixteen dollars ($468,316), assuming a maximum interest rate of four point eight percent (4.8%) and a maximum term of five (5) years. Total Debt Service for the pledge financing transaction for this project is not expected to exceed two million three hundred forty-two thousand dollars ($2,342,000); now, therefore be it

RESOLVED, That this General Assembly hereby approves financing in an amount not to exceed $4.0 million for the construction of a student athlete development center on the University of Rhode Island campus on and after three million seven hundred ninety thousand dollars ($3,790,000) derived from private gifts is available for the project.

SECTION 8. Section 2 of Article 36 of chapter 376 of the 2003 Public Laws entitled "An Act Relating to Making Appropriations for the Support of the State for the Fiscal Year Ending June 30, 2004" is hereby repealed."

SECTION 2. WHEREAS, The University of Rhode Island is proposing a project which involves the construction of a new sixteen thousand (16,000) square foot lodge and an addition to the dining room and service kitchen at the Whispering Pines Conference Center (the “Conference Center”) on the W. Alton Jones Campus; and

WHEREAS, This new lodge is planned to include approximately twenty (20) bedrooms, an approximately two thousand (2,000) square foot meeting room, and an approximately one thousand (1,000) square foot living room. Constructed on a site northeast of the main dining lodge, the new lodge will be within close proximity to the Laurel Lodge and is planned to face Louttit Pond. Completion of this new lodge will provide the Conference Center with approximately fifty-two (52) guest rooms and five (5) meeting rooms. The proposal also includes an enlarged dining room consisting of approximately two thousand and sixteen (2,016) square feet and an addition of approximately four hundred eighty (480) square feet to the serving kitchen to enhance the Conference Center’s ability to maximize the number of groups it serves; and

WHEREAS, Since the construction of Sycamore Lodge in 1992, the Conference Center has increased its gross revenues from less than six hundred fifty thousand dollars ($650,000) annually to nearly two million dollars ($2,000,000) per year. This revenue growth has been instrumental in assisting the campus to become financially self-supporting. Recent sales and marketing efforts are producing requests for meeting space that exceed the present capacity, especially for overnight meetings, the most profitable segment. Adding to the overnight sleeping facilities will allow the Conference Center to book larger groups and to accommodate additional requests from groups that are currently customers of the Conference Center; and

WHEREAS, Increasing the size of the dining room and the serving kitchen will also enable the Conference Center to make the most efficient use of the new lodge by permitting both day and overnight meeting groups to use the Conference Center. The proposed new lodge is planned to consist of a two-story wood structure similar to the Sycamore Lodge with the addition of a small exercise/workout area for guests to utilize, as well as a larger conference room and leisure area. The building is planned to be equipped with modern telecommunications facilities and will include televisions, telephones and Internet access in each guest room and common area; and

WHEREAS, A construction engineer has reviewed the estimated costs and construction expenses for this project. The engineer’s projected inflation rates have been used in estimating this project. The campus management is prepared to accelerate the commencement of design work in advance of the July 2003 design-start date using funds from the W. Alton Jones Campus Endowment to be reimbursed from the long-term financing.

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws Section 35-18-1 et seq.) requires that no elected or appointed state official may enter into any financing lease or into any guarantee with any person without the prior approval of the general assembly if the total payments under the financing lease or guarantee will exceed the sum of four million dollars ($4,000,000), and further provides that no bonds may be issued or incurred by any public corporation to finance, in whole or in part, the construction, acquisition or improvement of any essential public facility without the prior approval of the general assembly; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance of certain obligations; and

~~WHEREAS, The design, construction and equipping of these improvements will be financed through RIHEBC revenue bonds, with an expected term of twenty (20) years; and~~

~~WHEREAS, Debt service payments would be supported by revenues of the projects financed; now, therefore be it~~

RESOLVED, That the total amount of the debt approved to be issued in the aggregate shall be limited to not more than four million two hundred eighty-five thousand dollars ($4,285,000). Total debt service on the bonds is not expected to exceed three hundred thirty-five thousand dollars ($335,000) annually and six million six hundred forty-two thousand dollars ($6,642,000) in the aggregate based on an average interest rate of four and eight-tenths (4.8) percent and a twenty (20) year maturity; and be it further

~~RESOLVED, That the new facility is critical to improve and accommodate the daily operation of the University of Rhode Island and that this General Assembly hereby approves financing; and be it further~~

~~RESOLVED, That this Joint Resolution shall take effect upon passage by the General Assembly.~~

SECTION 9. Section 4 of Article 36 of chapter 376 of the 2003 Public Laws entitled "An Act Relating to Making Appropriations for the Support of the State for the Fiscal Year Ending June 30, 2004" is hereby repealed."

SECTION 4. WHEREAS, Rhode Island College has five existing residence halls: Thorp, Weber, Browne, Willard and Sweet built in 1959, 1964, 1967, 1971, and 1991 respectively, which provide housing for eight hundred thirty (830) students. Four (4) of the residence halls are over thirty (30) years old and have progressively been renovated and upgraded for telecommunications. It has been a challenge for the institution to establish a price for housing that covers personnel, operating and debt service expenses while encouraging students to live in these facilities. Given the age and traditional design style of the existing on-campus housing, the college is faced with the decision to provide more affordable on-campus housing that meets the expectations of today’s students; and

WHEREAS, As competition for students grows between and among public and private institutions, the quality of programs and services such as residential life becomes a critical component upon which students and their parents make choices. Since housing choices are voluntary, it is important to provide up-to-date facilities for students; otherwise, students will elect to commute from home, live off-campus, or attend another institution; and

WHEREAS, The demand for on-campus housing has been increasing for several years due to a variety of factors. Waiting lists for available rooms have increased from fifty (50) to one hundred fifty (150) per year over the last three (3) years. The college has experienced a small but gradual increase in enrollment. The telecommunications investment in the residence halls has increased the desirability of on-campus housing. Concurrently, affordable off-campus housing has been decreasing due to increased housing costs and competition from non-student renters and residential buyers; and

~~WHEREAS, The design construction and equipping of these improvements will be financed through RIHEBC revenue bonds with an expected term of twenty (20) years; and~~

~~WHEREAS, Debt service payments will be supported by revenues of the project; now, therefore be it~~

RESOLVED, That the Board of Governors shall submit the feasibility study and pro forma projections for the project to the chairperson of the House Finance Committee and the chairperson of the Senate Finance Committee; and be it further

RESOLVED, That the total amount of debt approved to be issued in the aggregate shall be limited to not more than seven million five hundred thousand dollars ($7,500,000). Total debt service on the bonds is not expected to exceed five hundred thousand dollars ($500,000) annually and fourteen million dollars ($14,000,000) in the aggregate based on an average interest rate of four and eight-tenths (4.8) percent and a twenty (20) year maturity; and be it further

~~RESOLVED, That the new facility is critical to improve and accommodate the daily operation of Rhode Island College and that this General Assembly hereby approves financing; and be it further~~

~~RESOLVED, That this Joint Resolution shall take effect upon passage by the General Assembly.~~

SECTION 10. Article 7, Section 10 of Chapter 246 of the 2006 Public Laws entitled "An Act Relating to Making Appropriations for the Support of the State for the Fiscal Year Ending June 30, 2007" is hereby amended to read as follows:

Section 10. Healthcare Information Exchange

WHEREAS, A statewide health information exchange would improve the quality, safety, and value of healthcare in the state and allow patients and providers to have their healthcare information when and where they need it by facilitating the exchange of medical information; and

WHEREAS, The total project costs associated with the Healthcare Information Exchange are estimated to be $20 million; and

WHEREAS, There are significant benefits to numerous participants in the healthcare industry in Rhode Island; and

WHEREAS, The financing for this project could be provided by the Rhode Island Health and Educational Building Corporation or another quasi-public agency through the issuance of revenue bonds to a Regional Health Information Organization to be repaid through subscriber charges; and

WHEREAS, This Regional Health Information Organization would be determined by the department of administration following an open bid process and would among other things provide administrative and financial services, operational support; and

WHEREAS, The total financing obligation of the State of Rhode Island for a $20 million health information exchange would be approximately $6.0 million with $5.9 million deposited in the construction fund, and $0.1 million available to pay the associated costs of financing. Total payments on the state's obligation over ten (10) years on the $6.0 million issuance are projected to be $8.0 million assuming an average effective interest rate of 5.5%. The payments for the state's share would be financed by various state departments subscribing to the system from general revenue appropriations, federal and any other sources which might be available; now, therefore be it

RESOLVED, That this General Assembly hereby authorized the Department of Administration and the Department of Human Services to commit to financing their shares of the initial capitalization and operations of a Health Information Exchange; Provided, all Rhode Island domiciled insurers (for both their insured and self-insured plan for Rhode Island residence administered by them or their affiliates); Medicare, and Medicaid participants participate in the same capitalization and operations using a common participation formula in which the state of Rhode Island is a party only to the extent of its Medicaid and state employee and retired employee health plan; and

Provided further that each participants share shall be its covered Rhode Island population divided by the total covered Rhode Island population of all participants or some like formula; and

Provided, further that the annual costs of the State of Rhode Island share shall be incorporated into the operating budgets of the respective departments to be approved by the general assembly; now, therefore be it

RESOLVED, That the general assembly approves financing in an amount not to exceed $6.0 million plus interest for the provision of funds for the State of Rhode Island's share of the capital costs associated with the Healthcare Information Exchange and authorizes subscription charges to be paid to include the debt service and the operations costs based upon the state's share of the project, and be it further

RESOLVED, That this Joint Resolution shall take effect upon signed agreements between the Regional Health Information Organization and all Rhode Island domiciled insurers, Medicare, and sixty days after submission of those agreements to the Chairperson of the House Finance Committee and the Senate Finance committee and their respective fiscal advisers; and be it further

RESOLVED, That this resolution shall apply to bonds issued on or before June 30, 2009.

SECTION 11.University of Rhode Island – New Residence Halls – Terrace Apartment Site.

WHEREAS, The Board of Governors for Higher Education and the University of Rhode Island are proposing a project which involves the construction of new residence hall facilities near the present Terrace Apartment site; and

WHEREAS, The retention and growth of undergraduate student enrollment is critical to the fiscal health of the University; and

WHEREAS, The ability to offer potential undergraduates new and improved residence hall and apartment style on campus housing options is seen as a major determining factor in the decision of students and their families to attend the institution; and

WHEREAS, The University, with the support of the Board of Governors, the Executive and Legislative branches, and the state's citizens, has undertaken significant improvements to existing residence halls and has recently built new student residential buildings with 700 beds in suite and apartment configuration; and

WHEREAS, The University needs to continue its program of improvements to existing residential facilities and the construction of new residential facilities on its Kingston Campus in order to remain competitive with other Colleges and Universities and to meet student demand; and

WHEREAS, The Terrace Apartments, built in 1959 and designed for 54 students, are old and outdated; and

WHEREAS, They would be removed and replaced by a new, multi-story residence with 350 beds, plus or minus, increasing net housing capacity on the Kingston Campus; and

WHEREAS, The design and construction of the project will be financed through Rhode Island Health and Education Building revenue bonds, with an expected term of thirty (30) years in the amount of $36,000,000; and

WHEREAS, The total project costs associated with completion of the project and proposed financing method is forty-two million six hundred ninety-five thousand dollars ($42,695,000) as financed. Debt service payments would be supported by student housing fee revenues of the University of Rhode Island. Total debt service on the bonds is not expected to exceed two million nine hundred fifty thousand dollars ($2,950,000) annually and eighty-eight million nine hundred fifty thousand dollars ($88,950,000) in the aggregate, inclusive of a half year interest only debt service payment in year one, based on an average interest rate of five and one half percent (5.50%); now, therefore be it

RESOLVED, That the General Assembly hereby approves financing in an amount not to exceed $42,695,000 million for the construction of a new residence hall on the University of Rhode Island Kingston Campus.

SECTION 12. WHEREAS, By Joint Resolution of the General Assembly set forth in Article 36, Section 3 of Chapter 376 of the Public Laws of 2003 (The"2003 Joint Resolution"), the General Assembly, in accordance with the Rhode Island Public Corporation Debt Management Act (R.I. Gen. Laws Section 35-18-1, et seq.) approved the financing by the Board of Governors (the "Board") of the design, construction, furnishing and equipping of student housing to service the University of Rhode Island's campus including an approximately 440 bed apartment unit and approximately 360 suite-style residence hall beds, the funding of reserves and expenses of issuance (the "Project"); and

WHEREAS, The Board in 2004 acting by and through the Rhode Island Health and Educational Building Corporation (the "Corporation") issued thirty-three million dollars ($33,000,000) Rhode Island Health and Educational Building Corporation Higher Education Facility Fixed Rate Revenue Bonds, Board of Governors for Higher Education University of Rhode Island Auxiliary Enterprise Revenue Issue, Series 2004A (the "2004 Series A Bonds") and thirty-three million dollars ($33,000,000) Higher Education Facility Variable Rate Revenue Bonds, Board of Governors for Higher Education University of Rhode Island Auxiliary Enterprise Revenue Issue, Series 2004B (the "Series 2004B Bonds" and together with the Series 2004A, the "Series 2004 Bonds") and entered into an interest rate exchange agreement (the "Swap Agreement"); and

WHEREAS, The Series 2004B Bonds were issued on a variable rate basis and may be converted to and from several different variable rate interest modes from time to time, or may be converted permanently to a fixed rate mode; and

WHEREAS, In order to adapt to prevailing conditions affecting bond insurers and credit markets, the Board of Governors desires to have the ability to: (a) convert, from time to time, the interest rate mode of all or a portion of the Series 2004B Bonds (the "Conversion"), and/or (b) borrow the proceeds of revenue bonds ("Refunding Bonds:") to be issued by the Corporation for the purpose of refunding all or a portion of the Series 2004B Bonds and terminating the SWAP Agreement (the "Refunding") and (c) select the alternative that is expected to result in the most financial benefit to the Board and the University; and

RESOLVED, Debt service payments are supported by revenues of the Project; and

WHEREAS, The Conversion or Refunding may require the provisions of the 2003 Joint Resolution be amended; now, therefore be it

RESOLVED, That the total amount of debt approved to be issued in the aggregate for the Project including the Conversion or Refunding shall be limited to no more than seventy-three million six hundred eighty thousand dollars (73,680,000). Total debt service on the bonds issued for the Project is not expected to exceed four million seven hundred and ten thousand dollars ($4,710,000) annually on average and one hundred forty-six million dollars ($146,000,000) in the aggregate based on an average interest rate of five and one-quarter percent (5.25%) and a thirty (30) year maturity; and be it further

RESOLVED, That this Amendment to the 2003 Joint Resolution shall take effect upon its passage by the General Assembly.

SECTION 13. This article shall take effect upon passage.