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 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 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, 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, 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 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 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 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 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.