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art.016/3/016/2/016/1

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ARTICLE 16

RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

SECTION 1. This article shall serve as joint resolution required pursuant to Rhode Island

General Law § 35-18-1, et seq.

SECTION 2. University of Rhode Island - Repaving, Hardscape & Landscape

WHEREAS, The Rhode Island Council on Postsecondary Education is proposing a project

which involves the re-pavement and reconstruction of major parking facilities, internal roadways,

and walkways and associated infrastructure on the University's Kingston, Narragansett Bay, and

W. Alton Jones; and

WHEREAS, The University has made progress in the improvement of its extensive

inventory of paved surfaces on its Campuses, the scope of repaving and reconstruction of major

parking facilities, internal roadways, and walkways and associated infrastructure is substantial and

ongoing; and

WHEREAS, A recent Transportation and Parking Master Plan recommends the

redevelopment of campus roadways into "complete streets" allowing safe travel for pedestrians,

cyclists, vehicles and other modes of travel; and

WHEREAS, The design and execution of this Master Plan will improve the campus's

environmental impact; and

WHEREAS, These timely project commitments serve the objectives of both the University

and the local community; 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 paving work will be financed through Rhode Island Health

and Educational Building Corporation revenue bonds, with an expected term of twenty (20) years;

and

WHEREAS, The project costs associated with completion of the project and proposed

financing method is eleven million dollars ($11,000,000), including cost of issuance. Debt Service

payments would be supported by both University's unrestricted general revenues and enterprise

funding from the University of Rhode Island Parking Services operation. Total debt service on the

bonds is not expected to exceed eight hundred eighty three thousand dollars ($883,000) annually

and seventeen million six hundred sixty thousand dollars ($17,660,000) in the aggregate based on

an average interest rate of five percent (5%); now, therefore be it

RESOLVED, That this General Assembly hereby approves financing in an amount not to

exceed eleven million dollars ($11,000,000) for the Repaving, Hardscape & Landscape project at

the University of Rhode Island; and be it further

RESOLVED, That this joint resolution shall apply to bonds issued within five (5) years of

the date of passage of this resolution; and be it further

RESOLVED, That this joint resolution shall take effect upon passage by this General

Assembly.

SECTION 3. University of Rhode Island – Utility Infrastructure Upgrade Phase I

WHEREAS, The Council on Postsecondary Education and the University of Rhode Island

are proposing a project which involves the engineering and construction of upgrades and

component replacements to five municipal-level Kingston Campus utility systems; and

WHEREAS, The University has engaged qualified engineering firms to examine its major

infrastructure systems; and

WHEREAS, Based on the condition and capabilities of these systems, the studies have

concluded that replacement of components and reconfiguration was advisable for each of these

extensive systems to ensure necessary steam, water, sanitary and electrical support for the next 20-

40 years; and

WHEREAS, The University has also developed the required Storm Water Management

Plan for the Kingston Campus, which provides guidelines that are being incorporated into new

building projects under development and are driving stand-alone storm water infrastructure projects

as well; and

WHEREAS, The University has successfully completed many extremely important

individual utility infrastructure projects in its continuing progression of work to upgrade and

replace infrastructure systems within the Kingston Campus but now needs dedicated investments

beyond annual capital resources; and

WHEREAS, This project is the first phase in a phased implementation plan to upgrade and

improve the reliability of the University of Rhode Island's Kingston campus infrastructure; and

WHEREAS, The utility infrastructure work will be financed through Rhode Island Health

and Educational Building Corporation revenue bonds, with an expected term of twenty (20) years;

and

WHEREAS, The total project costs associated with completion of this project and proposed

financing method is six million five hundred thousand dollars ($6,500,000), including cost of

issuance. Debt service payments would be supported by revenues derived from the University's

unrestricted general revenues. Total debt service on the bonds is not expected to exceed five

hundred twenty two thousand dollars ($522,000) annually and ten million four hundred forty

thousand dollars ($10,440,000) in the aggregate based on an average interest rate of five (5%)

percent; now, therefore be it

RESOLVED, That this General Assembly hereby approves financing in an amount not to

exceed six million five hundred thousand dollars ($6,500,000) for the Utility Infrastructure

Upgrade Phase I project at the University of Rhode Island; and be it further

RESOLVED, That this joint resolution shall apply to bonds issued within five (5) years of

the date of passage of this resolution; and be it further

RESOLVED, That this joint resolution shall take effect upon passage by this General

Assembly.

SECTION 4. University of Rhode Island – Fire Safety & Protection – Auxiliary Enterprise

Buildings Phase Two

WHEREAS, The Council on Postsecondary 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 auxiliary enterprise buildings, in accordance with the State

Fire Code; and

WHEREAS, The Council on Postsecondary Education 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 Fire Safety & Protection – Auxiliary Enterprise Buildings Phase One; 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 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; 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 Educational

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 two million three hundred thousand dollars ($2,300,000), including cost of

issuance. 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 hundred eighty five

thousand dollars ($185,000) annually and three million seven hundred thousand dollars

($3,700,000) in the aggregate based on an average interest rate of five (5%) percent; now, therefore

be it

RESOLVED, That this General Assembly hereby approves financing in an amount not to

exceed two million three hundred thousand dollars ($2,300,000) 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 joint resolution shall apply to bonds issued within five (5) years of

the date of passage of this resolution; and be it further

RESOLVED, That this joint resolution shall take effect upon passage by this General

Assembly.

SECTION 5. Eleanor Slater Hospital Project-Regan Building Renovation

WHEREAS, The Eleanor Slater Hospital (the "Hospital") provides long-term acute care

and post-acute care for approximately two hundred twenty (220) individuals with complex

psychiatric and medical needs on two campuses - Pastore and Zambarano; and

WHEREAS, The Hospital is licensed by the Rhode Island Department of Health

("RIDOH") and accredited triennially by the Joint Commission for the Accreditation of Health Care

Organizations ("JCAHO") that enables it to bill Medicare, Medicaid, and commercial insurances

for the care it provides; and

WHEREAS, The revenue the Hospital can bill Medicare, Medicaid, and other insurers

approximates $55.0 million annually; and

WHEREAS, On the Pastore campus the patients who have psychiatric needs are currently

in three buildings (Pinel, Regan and Adolph Meyer) that are older buildings that have not been

updated in many years; and

WHEREAS, In January 2017, the Center for Medicare and Medicaid Services ("CMS")

published new standards designed to address the increased number of suicides and suicide attempts

in hospitals; such standards required significant renovations to reduce ligature risks on inpatient

psychiatric units; and

WHEREAS, In September 2017, JCAHO performed its triennial survey, identified

significant ligature risks at the Pinel and the Adolph Meyer Buildings and as a result, gave the

Hospital a rating of Immediate Threat to Life, requiring it to submit a long-term plan to address the

ligature risks in both buildings; and

WHEREAS, The Pinel and the Adolph Meyer Buildings currently do not meet JCAHO

and CMS requirements and a loss of accreditation for not meeting the submitted plan could lead to

the loss of approximately $55.0 million in federal Medicaid match; and

WHEREAS, The Hospital submitted to JCAHO a plan to renovate the Benton Center and

the Regan Building, and to close the Pinel and Adolph Meyer Buildings, thus enabling it to achieve

full accreditation; and

WHEREAS, A renovation of the existing Pinel and Adolph Meyer Buildings would not be

financially beneficial due to the magnitude of renovations that would need to be performed on these

buildings to allow the Hospital to achieve full accreditation; and

WHEREAS, The renovation of the Benton Center will be completed in June 2018, utilizing

Rhode Island Capital Plan Fund financing, enabling the Hospital to close the Pinel Building and 2

units in the Adolph Meyer Building and relocate approximately forty-five (45) psychiatric patients

to Benton; and

WHEREAS, This will leave approximately fifty (50) to fifty-five (55) psychiatric patients

remaining in the Adolph Meyer Building; and

WHEREAS, There are significant ligature risks that exist in Adolph Meyer and the current

size of the units are twelve (12) to fifteen (15) beds sizes that are too small to be efficient in

hospitals, while the size of the patient care units in Regan are twenty-four (24) to twenty-eight (28)

beds - more typical of patient care units today; and

WHEREAS, Closing inefficient units in the Adolph Meyer Building will enable the

Hospital to reduce operating costs and address the deficiencies cited by the JCAHO; and

WHEREAS, There are currently three (3) floors in the Regan Building that can house

patients, one that is vacant, one currently with twenty-eight (28) psychiatric patients, and another

with currently seventeen (17) medical patients; and whereas a fourth floor can be renovated into an

inpatient unit; and

WHEREAS, To accommodate the remaining psychiatric patients in the Adolph Meyer

Building, three (3) floors would require extensive renovations to meet the current building

standards for psychiatric inpatient units, including requirements for ligature resistant features,

program areas, step down areas, quiet rooms, restraint rooms and private rooms that currently do

not exist in the Regan or the Adolph Meyer Buildings; and

WHEREAS, The renovated facility would have a total of one hundred five (105) beds with

larger inpatient units and program space within the units, thus enabling the Hospital to reduce

operating costs and develop programs to assist patients in their recovery and ultimate discharge;

and

WHEREAS, Due to its age, the Regan Building requires significant infrastructure upgrades

including: elevator replacement, masonry and window leak repair, and a partial roof replacement

with an estimated total cost of nine million dollars ($9,000,000); and

WHEREAS, The capital costs associated with this project are estimated to be forty-nine

million, eight hundred fifty thousand dollars ($49,850,000). This includes $27,850,000 from the

Rhode Island Capital Plan Fund for the renovation of the Benton and Regan Buildings and

$22,000,000 from the issuance of Certificates of Participation to finance the Regan Building

renovations. The total issuance would be $22,000,000, with total lease payments over fifteen (15)

years on the $22,000,000 issuance projected to be $32,900,000, assuming an average coupon of

five percent (5.0%). The lease payments would be financed within the Department of

Administration from general revenue appropriations; now, therefore be it

RESOLVED, That a renovation of the Regan Building as part of Eleanor Slater Hospital,

is critical to provide patients with an environment that meets current building standards for

psychiatric hospitals and to meet CMS and JCAHO accreditation requirements; and be it further

RESOLVED, This General Assembly hereby approves the issuance of certificates of

participation in an amount not to exceed $22,000,000 for the renovation of the Regan Building,

part of the Eleanor Slater Hospital; and be it further

RESOLVED, That this joint resolution shall apply to bonds issued within five (5) years of

the date of passage of this resolution; and be it further

RESOLVED, That this joint resolution shall take effect upon passage by this General

Assembly.

SECTION 6. This article shall take effect upon passage.