J  O  I  N  T     R  E  S  O  L  U  T  I  O  N

APPROVING THE ISSUANCE OF REVENUE BONDS BY THE RHODE ISLAND RESOURCE RECOVERY CORPORATION

WHEREAS, the Rhode Island Resource Recovery Corporation (the "Corporation") is a public corporation of the State of Rhode Island (the "State"), constituting a public instrumentality and agency exercising public and essential governmental functions of the State, created by the General Assembly pursuant to Rhode Island General Laws Section 23-19-1 et seq., entitled the "Rhode Island Resource Recovery Corporation Act" (as enacted, reenacted and amended, the "Act"); and

WHEREAS, pursuant to the Act, the Rhode Island Resource Recovery Corporation (the "Corporation") is designated to carry out the provisions of the Act; and

WHEREAS, also pursuant to the Act, the purposes of the Corporation include the planning, design, construction, financing, management, ownership, operation, and maintenance of transfer stations, waste processing facilities, resource recovery facilities, and all other solid waste management facilities and the provision of solid waste management services to municipalities and persons within the State; and

WHEREAS, for the purpose of planning, designing, constructing, financing, managing, owning, operating, and maintaining transfer stations, waste processing facilities, resource recovery facilities, and all other solid waste management facilities and providing solid waste management services to municipalities and persons within the State, the Corporation is authorized to issue from time to time its negotiable bond and notes in one or more series in such principal amounts as in the opinion of the Corporation shall be necessary to provide sufficient funds for achieving its purposes, including the payment of interest on the bonds and notes of the Corporation, the establishment of reserves to secure the bonds and notes, and the making of all other expenditures of the Corporation incident to and necessary or convenient to carrying out its purposes and powers; and

WHEREAS, Pursuant to Rhode Island General Laws Sections 35-18-3 and 35-18-4, the corporation has requested the approval of the General Assembly of the Corporation's issuance of not more than $20,685,000 Revenue Bonds for the purpose of providing funds for capital projects and for costs associated with the Bonds including capitalized interest, debt service reserve and costs of issuance (the "Bonds"); and

WHEREAS, The Corporation will use the Bond proceeds to fund the following capital project; the construction of the Central Landfill Tipping Facility, a solid waste transfer station capable of handling 4,500 tons of incoming solid waste daily on a routine basis, and, on occasion, more than 5,000 tons per day (the "Tipping Facility" or the "Project"); and

WHEREAS, All solid waste delivered for disposal by the Corporation's municipal and commercial customers will be brought to the Tipping Facility rather than to the Central Landfill itself, as is now the case; and

WHEREAS, Since the Tipping Facility eliminates the need for customer's trucks to drive up to the landfill, trucks will reduce their time on site from an average of 35 minutes to an average of 20 minutes and, as customer's trucks will be on pavement to and from the tipping facility and will no longer be required to drive on dirt roads or on the landfill, customers will realize a very significant reduction in damage to their trucks, such as punctured tires, broken axles, burned out rear ends and damaged transmissions, now caused by the difficult landfill conditions and, customer's trucks will experience greater ease of ingress and egress often caused during inclement weather under current tipping conditions; and

WHEREAS, It is anticipated that the Tipping Facility will be a 57,000 square foot pre-engineered steel building that will receive waste dumped by garbage trucks backing into the building through 10 oversized doors and then load the waste through openings in the tipping floor into the Corporation's 125 cubic yard off-road trash hauling trucks, positioned in the loading bay 20 feet below the tipping floor, for transportation to the landfill for burial; and

WHEREAS, A special wheel-mounted grapple will remove corrugated cardboard, clean wood and large pieces of metal from the waste on the Tipping Facility floor for recycling; and

WHEREAS, The Tipping Facility is expected to result in substantial improvements in the management of the landfill and in the compaction of the waste on the open landfill because waste will be delivered to the open portion of the landfill in about 100 rather than 600 truck trips daily and the waste will always be deposited exactly in the locations required for optimum landfill capacity management as well as consistent timing of placement over a ten hour work day; and

WHEREAS, The Tipping Facility will afford the Corporation the opportunity to, at a later date if necessary, export solid waste to extend landfill life and available landfill capacity; and

WHEREAS, The Corporation anticipates imposing user charges for commercial waste for the use of the Tipping Facility in the amount necessary to cover debt service on the Bonds; and

WHEREAS, The cost of the Tipping Facility is anticipated to be approximately $16,900,000; and

WHEREAS, In the event that not all of the Bond proceeds are used to carry out the specified Projects, the Corporation will use any remaining funds to pay debt service on the Bonds;

NOW, THEREFORE, BE IT RESOLVED, that this General Assembly hereby approves the Corporation's issuance of not more than $20,685,000 Bonds for the purpose of providing funds for the Project and for costs associated with the Bonds including capitalized interest, debt service reserve and costs of issuance;

That the Bonds will be general obligations of the Corporation payable from the Corporation's revenues and thus the Corporation's maximum liability will be for the total debt service on the Bonds which is estimated to be $1,924,600 per year or $39,155,550 in the aggregate based on an average interest rate of 7.00% and a 20 year maturity;

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 except to the extent that the State provides the Corporation with annual budget appropriations pursuant to RIGL section 23-19-13(i) and the Corporation's revenues are not otherwise sufficient to pay debt service on the Bonds, the maximum possible financial obligation of the State under the Bonds will be to appropriate for any deficiency; and

Be it further resolved, that this Joint Resolution shall take effect immediately upon its passage by this General Assembly, provided that the delivery of the Bonds shall be not later than one (1) year from the date of such passage.