ARTICLE 17 SUBSTITUTE A AS
AMENDED
RELATING TO DEBT
MANAGEMENT ACT JOINT RESOLUTIONS
SECTION 1. Sections 2 through 7 of this article consist of
Joint Resolutions that are
submitted pursuant to Rhode Island General Laws §§ 35-18-1, et
seq.
SECTION 2.
WHEREAS, the Board of
Governors for Higher Education and
proposing a project to renovate the existing recreation center
on the
campus; and
WHEREAS, the recreation
center, completed in 1989, is old and outdated, and requires
significant upgrades in order to remain a viable facility; and
WHEREAS, the retention
and growth of student enrollment is critical to the fiscal health
of the College; and
WHEREAS, the ability to
offer potential undergraduates a renovated, state-of-the-art
recreation center is seen as a major determining factor in the
decision of students to attend the
College; and
WHEREAS, the recreation
center would be renovated and turned into a state-of-the art
facility as a result of the project; 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
and other public agencies of certain obligations
including financing guarantees or other
agreements; and
WHEREAS, the funding of
the project will be financed through Rhode Island Health and
Education Building Corporation revenue bonds, with an
expected amortization period of thirty
(30) years; and
WHEREAS, the proposed
debt issuance for the project is eleven million three hundred
ten thousand dollars ($11,310,000), including renovation
costs of ten million dollars
($10,000,000), cost of issuance and surety premium
estimated at four hundred twenty-six
thousand fifty dollars ($426,050), and a debt service reserve
fund of eight hundred eighty-three
thousand nine hundred fifty dollars ($883,950). Debt service
payments would be supported by
recreation fee revenues generated at
expected to exceed eight hundred eighty four thousand dollars
($884,000) annually and twenty
six million five hundred thousand ($26,500,000) in the
aggregate, based on an average interest
rate of six and one half percent (6.50%) over thirty
years; now, therefore be it
RESOLVED,
that this general assembly hereby approves financing in an amount not to
exceed eleven million three hundred ten thousand dollars
($11,310,000) for the renovation of the
recreation center on the
RESOLVED,
that this Joint Resolution shall apply to bonds issued on or before June 30,
2010.
SECTION 3. URI Repaving and Road
Construction Project.
WHEREAS, The Board of
Governors for Higher Education and the
Island are proposing a project which involves the
re-pavement and reconstruction of major
parking facilities, internal roadways, and walkways and
associated drainage infrastructure on the
University's
an important new roadway extension and two roadway
connections on the Kingston Campus; and
WHEREAS, the University
has made some progress in the improvement of its extensive
inventory of paved surfaces on its Campuses, the scope of
repaving and reconstruction is
substantial and ongoing; and
WHEREAS, the roadway
extension is a key feature of the University's Kingston Campus
Master Plan that will provide better traffic flow to
and from perimeter parking lots and Campus
destinations day to day as well as for special events via the
increasingly important
Entrance to the
WHEREAS, the road
extension's direct connection to the western terminus of
will also facilitate vehicle traffic moving to and from
the future research and technology park
planned for portions of a 300-acre undeveloped parcel of
University land immediately north of
WHEREAS, the
minimization of traffic congestion and improved traffic flow patterns are
mutual objectives of both the University and the
WHEREAS, the design and
execution of this Master Plan recommended road extension
is planned for a period when the University and the Town
of
with the Rhode Island Department of Transportation on the
final design of a major project to
enhance design and traffic management features on Route 138,
the main State roadway serving
the
WHEREAS, these timely
road project commitments serve the objectives of both the
University and the local community; and
WHEREAS, a new roadway
connection between
will enable direct vehicle and emergency response access
between the fraternity and sorority area
and the core of the Campus and will allow for the curb
cut onto Route 138 to be closed as part of
an upcoming RIDOT project, which is a favorable traffic
flow and traffic safety measure on busy
Route 138, and
WHEREAS, an access road
into the University's property north of
contemplated, consistent with plans for the initial phase of the
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
and other public agencies of certain obligations
including financing guarantees or other
agreements; and
WHEREAS, the design and
paving work will be financed through Rhode Island Health
and Education Building Corporation revenue bonds, with an
expected term of twenty (20) years
in the amount of fifteen million two hundred thousand
dollars ($15,200,000); and
WHEREAS, the project
costs associated with completion of the project and proposed
financing method is fifteen million two hundred thousand
dollars ($15,200,000), with
approximately thirteen million four hundred sixty thousand dollars
($13,460,000) deposited in the
project fund, approximately one million three hundred
thousand ($1,300,000) deposited in a debt
service reserve fund and approximately four hundred forty
thousand dollars ($440,000) available
to pay the associated costs of financing. Debt Service
payments would be supported by both
University's unrestricted general revenues and enterprise
funding from the
Island Parking Services operation. Total debt service on the bonds is not expected to
exceed one
million three hundred sixteen thousand dollars ($1,316,000)
annually and twenty six million three
hundred twenty thousand dollars ($26,320,000) in the
aggregate based on an average interest rate
of six percent (6%); now, therefore be it
RESOLVED,
that this general assembly hereby approves financing in an amount not to
exceed fifteen million two hundred thousand dollars
($15,200,000) for the repavement and
reconstruction of major parking facilities, internal roadways, and
walkways and associated
drainage infrastructure on the
Alton Jones campuses and
the construction of a new roadway extension and two roadway
connections on the Kingston Campus; and be it further
RESOLVED,
that this Joint Resolution shall apply to bonds issued on or before June 30,
2010.
SECTION 4. URI Purchase of Fraternity House for the
International Engineering
Program.
WHEREAS, The Board of
Governors for Higher Education and the
Island are proposing a project which involves an
installment purchase of the former Sigma Alpha
Epsilon Fraternity House at
which has been leased by the University for the
International Engineering Program (IEP) during
the last ten years; and
WHEREAS, the
International Engineering Program has prospered and grown in
enrollment and stature during the period of the building lease,
which enabled the Program to
house its administrative offices and provide convenient and
attractive on-campus housing and
dining to
engineering and foreign languages; and
WHEREAS, the building
has been maintained in good physical condition and has
operated effectively, with the support of room and board
revenues derived from the resident
students; and
WHEREAS, the Board of
Governors has, per its Agreement with the fraternal
organization, the right to exercise an option to purchase the
building in the event that the Board
deems that it is in its interest to do so; and
WHEREAS, the fraternal
organization has expressed a willingness to sell the subject
building to the Board and the University in accordance with
the terms of the referenced
Agreement; 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
and other public agencies of certain obligations
including financing guarantees or other
agreements; and
WHEREAS, the building
acquisition will be financed through an installment purchase
transaction or a financing vehicle of similar or more favorable
terms; and
WHEREAS, the total
purchase price of the building is one million one hundred thousand
dollars ($1,100,000), but the portion of the building
purchase that would be subject to the
installment purchase or similar financing vehicle is eight
hundred fifty thousand dollars
($850,000), with a one-time down payment in FY 2010 of
two hundred fifty thousand dollars
($250,000). Installment Purchase or Debt Service payments would
be supported by revenues
derived from IEP student residents and/or support from other
revenues of the
Island. Annual installment purchase or debt service payments
are not expected to exceed eighty
seven thousand dollars ($87,000) annually and one million
two hundred ninety one thousand
dollars ($1,291,000) in the aggregate based on an average
interest rate of six percent (6.0%) over
a term of fifteen (15) years; now, therefore be it
RESOLVED,
that this general assembly hereby approves financing in an amount not to
exceed eight hundred fifty thousand dollars ($850,000) for
installment purchase of the forma
Sigma Alpha Epsilon
Fraternity House at
RESOLVED,
that this Joint Resolution shall apply to financing completed on or before
June 30, 2010.
SECTION 5. Division of Motor Vehicles
Computer System. Section 3 of Article 5 of
Chapter 073 of the 2007
Public Laws is hereby amended to read as follows:
WHEREAS, The computer systems that currently support the Division of
Motor Vehicles
are outdated and put the operations of driver licenses
and registrations systems at risk of
operation; and
WHEREAS, The enterprise infrastructure of the state's wide and local
area networks need
upgrades to protect them from cyber security attack; and
WHEREAS, An integrated professional licensing software platform would
increase the
regulatory compliance of licenses and increase access and convenience
to the public of licensing
rules, regulations, and application processing; and
WHEREAS, Public
education would benefit from outfitting teachers with skills in the use
of information systems; and
WHEREAS, The state would benefit from a taxation database to enhance
tax policy
analysis, audits and tax collections; and
WHEREAS, The court system requires timely and integrated data systems
capable of
interacting with other state systems; and
WHEREAS, The project costs associated with the Innovative Technology
Initiative is
$49.3 million. The total financing obligation of the State of
$46.9 million, with $49.3 million deposited in the
construction fund, and $0.6 million available to
pay the associated costs of financing. Total payments on
the State's obligation over ten (10) years
on the $49.3 million issuance are projected to be $63.1
million, assuming an average effective
interest rate of 4.5%. The payments would be financed within
the Department of Administration
from general revenue appropriations and Division of Motor
Vehicles transaction fees; now,
therefore be it
RESOLVED,
That this General Assembly hereby approves financing
in an amount not to
exceed $37.0 million for the provision of funds for
Innovative Technology including $0.5 million
to pay costs of financing; provided, that $3,900,000 be
made available from the construction fund
for the enterprise infrastructure of the state's wide and
local area network; and provided, further,
that $1,010,234 be made available from the construction
fund for an integrated professional
licensing software platform; and provided, further, that
$15,195,154 be made available from the
construction fund for comprehensive education information systems
in the department of
elementary and secondary education; and provided, further, that
$2,500,000 be available from the
construction fund to develop a taxation data base; and provided,
further, that $13,900,000 be
available from the construction fund to develop integrated data
systems for the judiciary; and be it
further
RESOLVED,
There is hereby established a restricted receipt account within the
Department of
Administration to be called the Division of Motor Vehicles Registry Technology
account to be used exclusively for debt service and/or
project-related payments for the registry
computer system. Notwithstanding the provision of Rhode Island
General Law 35-4-27 indirect
cost recoveries on restricted receipt accounts, no
transfer or expenditure may be made for any
purpose other than debt service or project-related costs.
RESOLVED,
That the General Assembly hereby authorizes financing
in an amount not
to exceed $13,000,000 to develop computer systems to
support the division of motor vehicles,
including $12,795,000 for the project and $205,000 for
associated cost of financing; provided that
costs of financing would be borne by a surcharge on all
transactions over the ten year period;
which shall be deposited into the Division of Motor
Vehicles Registry Technology account; and
provided further that the department of administration shall
develop and adopt by rule and
regulation pursuant to this section that surcharge and structure
not to exceed (seven 97) ten (10)
years and that all revenues from that surcharge be used
exclusively for the payment of the
principal, interest, and issuance and project
costs associated with the $13,000,000 cost of the
system.
SECTION 6. Section 35-18-3 of the General Laws in Chapter 35-18
entitled "Public
Corporation Debt
Management" is hereby amended to read as follows:
35-18-3.
Approval by the general assembly. -- (a) 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 unless:
(1) [Deleted by P.L.
2005, ch. 117, art. 6, section 1.]
(2) [Expired pursuant
to P.L. 1994, ch. 148, section 2.]
(3) The governor
certifies that federal funds will be available to make all of the payments
which the state is or could be obligated to make under the
financing lease or guarantee; or
(4) The general
assembly has adjourned for the year with the expectation that it will not
meet again until the following year and the governor
certifies that action is necessary, because of
events occurring after the general assembly has adjourned,
to protect the physical integrity of an
essential public facility, to ensure the continued delivery of
essential public services, or to
maintain the credit worthiness of the state in the financial
markets.
(b) No bonds may be
issued or other obligation 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,
unless:
(1) [Deleted by P.L.
2005, ch. 117, art. 6, section 1.]
(2) [Expired pursuant
to P.L. 1994, ch. 148, section 2.]
(3) The governor
certifies that federal funds will be available to make all of the payments
required to be made by the public corporation in connection
with the bond or obligation. The
certification shall be transmitted to the speaker of the house and
the president of the senate with
copies to the chairpersons of the respective finance
committees and fiscal advisors; or
(4) The general
assembly has adjourned for the year with the expectation that it will not
meet again until the following year and the governor
certifies that action is necessary, because of
events occurring after the general assembly has adjourned,
to protect the physical integrity of an
essential public facility, to ensure the continued delivery of
essential public services, or to
maintain the credit worthiness of the state in the financial
markets. The certification shall be
transmitted to the speaker of the house and the president of the
senate, with copies to the
chairpersons of the respective finance committees and fiscal
advisors.
(c) In addition to, and
not by way of limitation on, the exemptions provided in
subsections (a) and (b), prior approval by the general assembly
shall not be required under this
chapter for bonds or other obligations issued by, or
financing leases or guarantee agreements
entered into by:
(1) The Rhode Island
Industrial Facilities Corporation; provided financing leases, bonds
or other obligations are being issued for an economic
development project;
(2) The
(3) The
(4) The
(5) Any public
corporation to refund any bond or other obligation issued by the public
corporation to finance the acquisition, construction, or improvement
of an essential public facility
provided that the governor certifies to the speaker of the
house and the president of the senate,
with copies to the chairpersons of the respective finance
committees and fiscal advisors that the
refunding shall provide a net benefit to the issuer; provided,
however, obligations of the Rhode
Island resource recovery corporation outstanding on
July 31, 1999, may be refunded by the
issuance of obligations on or before August 1, 1999 and the
state through appropriate state and
elected officials, including, but not limited to, the
attorney general, the director of the department
of administration and the chairman of the state
properties committee, and the
resource recovery corporation may enter into, approve, or
extend, any financing lease, guarantee,
or guarantee lease similar to the existing lease
arrangements between the state and the Rhode
Island resource recovery corporation
in effect on August 1, 1997, and any financing lease,
guarantee, or guarantee lease, or extension thereof, shall be
exempt from the provisions of this
chapter;
(6) The
(7) The
obligations issued in connection with the acquisition,
construction, or improvement of any facility
used by any state agency, department, board, or
commission, including the board of governors for
higher education, to provide services to the public pursuant
to the requirements of state or federal
law, and all fixtures for any of those facilities.
(d) Nothing contained
in this section applies to any loan authorized to be borrowed under
Article VI, section 16 or 17 of the
Rhode Island Constitution.
(e) Nothing in this
section is intended to expand in any way the borrowing authority of
any public corporation under its charter.
(f)
(1) Any certification made by the governor under subsection (a), (b), or (c) of
this
section may be relied upon by any person, including without
limitation, bond counsel.
(2) The certifications
shall be transmitted to the speaker of the house and the president of
the senate with copies to the chairpersons of the
respective finance committees and fiscal
advisors.
(g) Except as provided
for in this chapter, the requirements of this chapter supersede any
other special or general provision of law, including any
provision which purports to exempt sales
or leases between the state and a public corporation
from the operation of any law.
SECTION 7.
WHEREAS, the Rhode
Island Turnpike and Bridge Authority (the “Authority”) is a
public corporation of the State of
and agency exercising public and essential governmental
functions of the State, created by the
General Assembly pursuant to Rhode Island General Laws
Sections 24-12-1, et seq. as enacted,
reenacted and amended (the “Act”); and
WHEREAS, the State
recognizes that the
are an essential part of the State’s transportation
system and facilitates the tourism industry; and it
is the policy of the State that the public welfare and
the further economic development and the
prosperity of the State requires the maintenance of such
facilities and the financing thereof; and
WHEREAS, the Act
provides that the Authority shall have the power to charge and
collect tolls for the use of its facilities; and
WHEREAS, the Act also
provides that the Authority shall have the power to acquire,
hold and dispose of real and personal property in the
exercise of its powers and performance of its
duties; and
WHEREAS, the Act
authorizes the Authority to make and enter into all contracts and
agreements necessary or incidental to the performance of its
duties and the execution of its
powers under the Act, issue revenue bonds of the Authority
for any of its purposes and to refund
its bonds, borrow money in anticipation of the issuance
of its bonds, and secure its bonds by the
pledge of its tolls and other revenues; and
WHEREAS, in furtherance
of its corporate purposes, the Authority is authorized to issue
from time to time its negotiable revenue bonds and notes
in one or more series in such principal
amounts for the purpose of paying all or a part of the costs
of any one or more projects authorized
by the Act, making provision for working capital and a
reserve for interest; and
WHEREAS, pursuant to
Rhode Island Public Corporation Debt Management Act as
enacted, reenacted and amended (the
“Debt Management Act”), the Authority hereby requests
the approval of the General Assembly of
the Authority’s issuance of not more than fifty million
dollars ($50,000,000)
Turnpike and Bridge Authority Revenue Bonds (the
“Bonds”) to be secured by toll and other
revenues, for the purpose of providing funds to finance the
renovation, renewal, repair,
rehabilitation, retrofitting, upgrading and improvement of the
Bridge and other projects authorized under the Act,
replacement of the components thereof,
working capital, a reserve for interest and the costs of
issuing and insuring the Bonds (the
“Project”); and
WHEREAS, the Project
constitutes essential public facilities directly benefiting the State;
and
WHEREAS, the Authority is
authorized pursuant to Section 24-12-28 of the Act to
secure its bonds by a pledge of the tolls and other revenues
derived from the projects in
connection with which bonds shall have been issued; and
WHEREAS, the State shall
directly benefit economically from the Project by the repair,
maintenance and improvement of the transportation system; and
WHEREAS, in the event
that not all of the Bond proceeds are used to carry out the
specified Project, the Authority will use any remaining funds to
pay debt service on the Bonds
WHEREAS, when setting
tolls to pay for the Bonds, the Authority shall give
consideration to a reduced toll structure for local area residents,
but no failure to establish such a
reduced toll structure shall affect the validity or due
authorization of the Bonds; now, therefore,
be it
RESOLVED, that this
General Assembly finds that the Project is an essential public
facility and is of a type and nature consistent with the
purposes and within the powers of the
Authority to undertake, and hereby approves the
Authority’s issuance of not more than fifty
million dollars ($50,000,000) in Bonds; and be it further
RESOLVED, that the Bonds
will be special obligations of the Authority payable from
funds received by the Authority from the tolls and other
revenues of its facilities. The
Authority’s maximum liability will be the total debt
service on the Bonds, estimated to be
approximately four million four hundred thousand dollars
($4,400,000) per year or approximately
one hundred thirty-two million dollars ($132,000,000) in
the aggregate based on level debt
service, an average interest rate of 8.00% and a 30 year
maturity; and be it further
RESOLVED, that the Bonds
will not 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.
SECTION 8. Rhode Island Public Rail
Corporation and South Couth Commuter Rail Service.
WHEREAS, the State of
delegated to the Rhode Island Department of Transportation (the
“Department”) the responsibility
for preparing short-range plans, project plans, and
implementation programs for transportation
and for maintaining an adequate level of rail passenger
and freight services, including the
administration of any financial or technical assistance which may be
made available to operators
of railroad transportation facilities; and
WHEREAS, the Department
now seeks to extend commuter rail service south from the
National Railroad Passenger Corporation (“Amtrak”)
Island (the “Providence Station”) with stops at the
proposed Warwick Intermodal Station at T.F.
Commuter Rail Service”); and
WHEREAS, the Department
intends to appoint the Massachusetts Bay Transportation
Authority (the “MBTA”) as the operator of the South
County Commuter Rail Service (the
“Designated Operator”) upon execution of that certain
Access Agreement (the “Access
Agreement”) entered into by and between the Department
and the National Railroad Passenger
Corporation (“Amtrak”); and
WHEREAS, Amtrak owns the
right-of-way on which the South County Commuter Rail
Service would operate; and
WHEREAS, Amtrak required
the Department to provide certain risk-management and
financial assurances and indemnification covenants and
obligations as a condition precedent to
the Access Agreement, that certain Assignment and
Assumption Agreement entered into for the
benefit of Amtrak by and between the Department and the Rhode
Island Public Rail Corporation
(“Rail Corp”), a public instrumentality of the Sate
established by Section 42-64.2 et seq. of the
General Laws of Rhode Island (the “Act”), that certain
Master Force Account Agreement for
improvements between
Island Airport Corporation (“RIAC”), a governmental
agency of the State established by the
Easement Agreement entered into by and between Amtrak,
RIAC and Rail Corp, and that certain
Permanent Easement Agreement entered into by and
between Amtrak, RIAC and Rail Corp, and
that certain Master Force Account Agreement for
improvements between Warwick and North
certain Temporary Easement Agreement to be entered into by
and between Amtrak and Rail
Corp, and that certain Permanent Easement Agreement
entered into by and between Amtrak and
Rail Corp (collectively, the “South County Commuter
Rail Service Agreements”); and
WHEREAS, the
above-referenced assurances and indemnification covenants and
obligations include, without limitation, the (1) The Department
secure and maintain a liability
insurance policy covering the liability of the State and Amtrak
for property damage, personal
injury, bodily injury and death arising out of the South
County Commuter Rail Service, with
policy limits of Two Hundred Million United States Dollars
($200,000,000.00), naming the
Department, Rail Corp, Amtrak and the MBTA as primary insureds, all subject to a self-insured
retention of Seven Million Five Hundred Thousand United States
Dollars ($7,500,000.00) (the
“Retention”), (2) The Department defend, indemnify and
save harmless such third parties,
irrespective of negligence or fault of Amtrak or such third
parties, for all damage or liability for
personal injury or property damage which would not have
occurred or would not have been
incurred but for the existence of the South County Commuter
Rail Service or the presence on the
Northeast Properties (as such term is defined in the
Access Agreement) of any trains, passengers,
employees, contractors, or invitees of the State or the State’s
Designated Operator (the “Amtrak
Access Indemnification”), (3) Rail Corp and
RIAC defend, indemnify and save harmless Amtrak
and third parties to the extent that Amtrak is obligated
to defend, indemnify or save harmless
such third parties, irrespective of negligence or fault of
Amtrak or such third parties, for all
damage or liability for personal injury or property damage
which would not have occurred but for
the improvements undertaken pursuant to the Master Force
Account Agreements, the Temporary
Easements and Permanent Easements with respect to the Intermodal Station and the Wickford
Station (the “Amtrak Indemnification”), and (4) The
Department defend, indemnify and save
harmless the MBTA for all damage or liability for personal
injury or property damages which
would not have occurred or would not have been incurred but
for the MBTA’s activities as the
Designated Operator under the Access Agreement except
for damages or liability attributable
directly to the MBTA’s own negligence
or misconduct (the “MBTA Indemnification”); and
WHEREAS, the Department
may be constitutionally prohibited from providing the
financial assurances and the indemnification covenants and
obligations and therefore has
designated Rail Corp as the responsible party for providing
Amtrak and MBTA with the
foregoing assurances, covenants and obligations on behalf of
the Department; and
WHEREAS, RIAC is unable
to provide the financial assurances and the indemnification
covenants and obligations and therefore has also designated
Rail Corp as the responsible party for
providing Amtrak with the foregoing assurances, covenants and
obligations on behalf of RIAC;
and
WHEREAS, Amtrak has
agreed to accept Rail Corp’s financial assurances and
indemnification covenants and obligations on behalf of the Department
and RIAC; provided,
however, that Rail
Corp first secure either a line or evergreen letter of credit in the amount of
Seven Million Five Hundred Thousand United States
Dollars ($7,500,000.00) issued by a bank
authorized to do business in
United States Dollars ($100,000,000.00) in favor of
Amtrak to secure Rail Corp's performance of
its obligations arising under any South County Commuter
Rail Service Agreements, specifically
the payment of any amounts arising from time to time
under the Retention or any amounts that
are uninsured; and
WHEREAS, pursuant to the
Act, Rail Corp is authorized, created, and established for the
purpose of enhancing and preserving the viability of commuter
transit and railroad freight
operations in
liabilities, borrow money at any rates of interest that it may
determine, and to make and execute
any other contracts and instruments necessary or
convenient in the exercise of the powers,
purposes and functions of the Act; and
WHEREAS, Rail Corp, at
the present time, has no source of funds to discharge the
obligations it has assumed to Amtrak other than the funds
appropriated to the department in the
annual budget and transferred to Rail Corp; and
WHEREAS, a financial
institution may not provide a line or evergreen letter of credit to
Rail Corp without some assurances that funds would be
appropriated to the department and
transferred to Rail Corp; and
WHEREAS, pursuant to the
Assignment and Assumption Agreement, the department has
covenanted on behalf of the state to support Rail Corp and to
include such financial support in the
Governor's printed budget submitted to the general
assembly each year; and
WHEREAS, the obligations
undertaken by the department on behalf of the State and Rail
Corp as outlined herein, and the approval and
authority for Rail Corp to secure and maintain the
letter or evergreen line of credit are subject to Chapter 18
of Title 35 of the Rhode Island General
Laws; and
WHEREAS, pursuant to
Sections 35-18-3 and 35-18-4 of the Rhode Island General
Laws, Rail Corp has requested the approval and
authority of the General Assembly to enter into
agreements and execute documents reasonably necessary from time
to time to secure and
maintain the above-referenced line or evergreen letter of
credit to support payment obligations of
the Retention, for the payment of any costs and fees
reasonably incurred in connection with
securing and maintaining such line or evergreen letter of
credit, and for the extension of both the
risk-management and financial assurances, Amtrak Access
Indemnification and Amtrak
Indemnification and the risk-management and financial
assurances, and MBTA Indemnification;
now, therefore be it
RESOLVED,
that the General Assembly hereby approves and authorizes Rail Corp to
secure and maintain, and hereby approves and authorizes the
department's support of Rail Corp
and the use by Rail Corp of the department's funding as
covenanted in the Assignment and
Assumption Agreement to
secure and maintain a line or evergreen letter of credit in the amount of
Seven Million Five Hundred
Thousand United States Dollars ($7,500,000.00) issued by a bank
authorized to do business in
United States Dollars
($100,000,000.00) in favor of Amtrak to secure Rail Corp's performance of
its obligations arising under any South County Commuter
Rail Service Agreements, specifically
the payment of any amounts arising from time to time
under the Retention, and for the payment
of any costs and fees reasonably incurred in connection
with securing and maintaining such line
or evergreen letter of credit; and be it further
RESOLVED, that the per
passenger cost of the extended commuter rail service shall not
be subsidized with any state funds.
SECTION 9. This article shall take effect upon passage.