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ARTICLE 6 |
RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS
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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 – Memorial Union – Auxiliary Enterprise |
WHEREAS, The Council council on Postsecondary postsecondary Education education |
and the University university have a long-standing commitment to the overall development of |
their students; and |
WHEREAS, The University university believes that the Memorial memorial Union |
union celebrates life at URI and acts as the nexus for campus community, student engagement, and |
leadership. It is an intersection connecting the academic core of campus and the campus’s socially |
active residential community. The student union at the University university is an integral part of |
the educational ecosystem that shapes the student experience; and |
WHEREAS, The Council council on Postsecondary postsecondary Education education and |
the University university of Rhode Island are proposing a project which that involves the renovation |
and expansion of the Memorial memorial Union union to meet the ongoing and growing needs of |
their students; and |
WHEREAS, The University university engaged a qualified architectural firm, which has |
completed an advanced planning study for this renovation; and |
WHEREAS, The Rhode Island Public public Corporation corporation Debt debt |
Management management Act act requires the General general Assembly 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 work of an Auxiliary auxiliary |
Enterprise enterprise building will be financed through the Rhode Island Health health and |
Educational educational Building building Corporation corporation (RIHEBC) revenue bonds, |
with an expected term of thirty (30) years; and |
WHEREAS, The total project costs associated with completion of the project through the |
proposed financing method is fifty-one million five hundred thousand dollars ($51,500,000), |
including cost of issuance. Debt service payments would be supported by revenues derived from |
student fees and retail lease payments associated with the respective Auxiliary auxiliary |
Enterprises enterprises of the University university of Rhode Island occupying said facility. Total |
debt service on the bonds is not expected to exceed one hundred twelve million three hundred |
thousand dollars ($112,300,000) in the aggregate based on an average interest rate of six (6%) |
percent; now, therefore be it |
RESOLVED, That this General general Assembly assembly hereby approves financing in |
an amount not to exceed fifty-one million five hundred thousand dollars ($51,500,000) for the |
Memorial memorial Union union project for the auxiliary enterprise building on the University |
university of Rhode Island campus; and be it further |
RESOLVED, That this Joint joint Resolution resolution shall take effect upon |
passage. |
SECTION 3. University of Rhode Island – Fraternity Circle Master Plan Implementation |
WHEREAS, The Rhode Island Council council on Postsecondary postsecondary Education |
education and the University university of Rhode Island are proposing a project which involves |
improvements to the sector of the Kingston Campus campus devoted to fraternity and sorority |
houses, referred to as Fraternity fraternity Circle circle, on the Kingston Campus campus; and |
WHEREAS, The University of Rhode Island is underway with a utility and infrastructure |
project to replace, improve, and reorganize aged, incrementally developed utility and paved |
infrastructure in Fraternity fraternity Circle circle, referred to in the University’s university’s |
Capital capital Improvement improvement Plan plan as “Fraternity fraternity Circle circle |
Improvements improvements” project, including improvements to water, wastewater, electrical, |
telecommunications, natural gas connections, and storm water management systems, as well as |
roadways, walkways, and parking lots as a first phase of improvements reflected in a “master plan” |
for this unique neighborhood of on-campus residences serving organizations of students; and |
WHEREAS, The second phase of the overall improvements to Fraternity fraternity |
Circle, circle referred to on the University’s university’s Capital capital Improvement |
improvement Plan plan as the “Fraternity fraternity Circle circle Master master Plan plan |
Implementation implementation” project is needed to complete this district of campus; and |
WHEREAS, The design and execution of this project will improve student life and the |
campus's environmental impact; and |
WHEREAS, These timely project commitments serve the objectives of both the University |
university and the local community; and |
WHEREAS, The Rhode Island Public public Corporation corporation Debt debt |
Management management Act act requires the General general Assembly assembly to |
provide its consent to the issuance or incurring by the State state of Rhode Island and other public |
agencies of certain obligations including financing guarantees or other agreements; and |
WHEREAS, The design and construction will be financed through Rhode Island Health |
health and Educational educational Building building Corporation 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 two million one hundred thousand dollars ($2,100,000), including cost of |
issuance. Debt Service service payments would be supported by the University's university’s |
unrestricted general fund. Total debt service on the bonds is not expected to exceed three million |
seven hundred thousand dollars ($3,700,000) in the aggregate based on an average interest rate of |
six percent (6%); now, therefore be it |
RESOLVED, That this General general Assembly assembly hereby approves financing in |
an amount not to exceed two million one hundred thousand dollars ($2,100,000) for the Fraternity |
fraternity Circle circle Master master Plan plan Implementation implementation project at the |
University university of Rhode Island; and be it further |
RESOLVED, That, this Joint joint Resolution resolution shall take effect upon passage. |
SECTION 4. University of Rhode Island – Combined Health & Counseling Center – |
Auxiliary Enterprise |
WHEREAS, The Council council on Postsecondary postsecondary Education |
education and the University university have a long-standing commitment to the health |
and wellness of their students; and |
WHEREAS, The University university has a desire to create a one-stop center to address |
the physical, emotional, and mental health of its students; and |
WHEREAS, The Council council on Postsecondary postsecondary Education education and |
the University university of Rhode Island are proposing a project which involves the construction of |
a new Combined combined Health health & Counseling counseling Center center to meet the |
ongoing and growing health needs of their students; and |
WHEREAS, The University university engaged a qualified architectural firm, which has |
completed an advanced planning study for this new building; and |
WHEREAS, The Rhode Island Public public Corporation corporation Debt debt |
Management manaagement Act act requires the General general Assembly assembly to |
provide its consent to the issuance or incurring by the State 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 work of an Auxiliary auxiliary |
Enterprise enterprise building will be financed through the Rhode Island Health health and |
Educational educational Building building Corporation corporation (RIHEBC) revenue bonds, |
with an expected term of thirty (30) years; and |
WHEREAS, The total project costs associated with completion of the project through the |
proposed financing method is twenty-six million nine hundred thousand dollars ($26,900,000), |
including cost of issuance. Debt service payments would be supported by revenues derived from |
student fees associated with the respective Auxiliary auxiliary Enterprises enterprises of the |
University university of Rhode Island occupying said facility. Total debt service on the bonds is |
not expected to exceed fifty-eight million seven hundred thousand dollars ($58,700,000) in the |
aggregate based on an average interest rate of six (6%) percent; now, therefore be it |
RESOLVED, That this General general Assembly assembly hereby approves financing in |
an amount not to exceed twenty-six million nine hundred thousand dollars ($26,900,000) for |
the Combined combined Health health & Counseling counseling Center center project for the |
auxiliary enterprise building on the University university of Rhode Island campus; and be it further |
RESOLVED, That, this Joint joint Resolution resolution shall take effect upon passage. |
SECTION 5. Rhode Island Turnpike and Bridge Authority Project |
WHEREAS, The Rhode Island Turnpike turnpike and Bridge bridge Authority authority |
(the "authority") 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 chapter 12 of title 24 (as enacted, reenacted and |
amended, the "act"); and |
WHEREAS, The state recognizes that the Pell Bridge, the Jamestown Verrazzano Bridge, |
the Mount Hope Bridge, the Sakonnet River Bridge and other facilities of or within the control of |
the authority 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, Pursuant to § 31-36-20, three and one-half cents ($0.035) per gallon of the |
motor fuel tax is transferred to the authority to be used for maintenance, operations, capital |
expenditures and debt service on any of its projects as defined in chapter 12 of title 24; 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, to 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 and notes 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 §§ 35-18-3 and 35-18-4 of the Rhode Island Public public |
Corporation corporation Debt debt Management management Act act (as enacted, reenacted and |
amended, the "Debt debt Management management Act 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) Rhode Island Turnpike turnpike and Bridge bridge Authority authority Revenue |
revenue Bonds bonds with a term not to exceed thirty (30) years and six (6) months (together with |
any notes issued in anticipation of the issuance of bonds, the "bonds") to be secured by toll, transfers |
of motor fuel taxes and/or other revenues, in any combination, for the purpose of providing funds |
to finance the renovation, renewal, repair, rehabilitation, retrofitting, upgrading and improvement |
of the Pell Bridge, the Jamestown Verrazzano Bridge, the Sakonnet River Bridge, Mount Hope |
Bridge, and other projects authorized under the act, replacement of the components thereof, |
working capital, capitalized interest, a debt service reserve 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 § 24-12-28 of the act to secure its |
bonds by a pledge of the tolls and other revenues received by the authority; and |
WHEREAS, The state shall directly benefit economically from the project by the repair, |
maintenance and improvement of the state transportation infrastructure; 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; now, therefore, |
be it |
RESOLVED AND ENACTED, 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, which amount is in addition to all prior authorizations; |
and be further |
RESOLVED, That the bonds will be special obligations of the authority payable from |
funds received by the authority from tolls, transfers of motor fuel taxes and other revenues received |
by the authority, in any combination or priority as may be designated in the proceedings of the |
authority authorizing the issuance of such debt. The total debt service on the bonds is estimated to |
average approximately three million five hundred ninety-four thousand dollars ($3,594,000) per |
year or approximately one hundred nine million three hundred sixteen thousand dollars |
($109,316,000) in the aggregate, prior to the receipt of any federal subsidy and/or assistance, at an |
average interest rate of approximately six percent (6%) and approximately a thirty (30) year |
maturity; and be it further |
RESOLVED, That the authority may issue interest bearing or discounted notes from time |
to time in anticipation of the authorization or issue of bonds or in anticipation of the receipt of |
federal aid for the purposes of this joint resolution, the amount of original notes issued in |
anticipation of bonds may not exceed the amount of bonds which may be issued under this joint |
resolution and the amount of original notes issued in anticipation of federal aid may not exceed the |
amount of available federal aid as estimated by the authority, any such notes issued hereunder shall |
be payable within five (5) years from their respective dates, but the principal of and interest on |
notes issued for a shorter period may be renewed or paid from time to time by the issue of other |
notes hereunder, provided the period from the date of an original note to the maturity of any note |
issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years, and any |
such refunding of notes with notes or bonds may be effected without complying with § 35-18-3(5); |
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. |
RESOLVED, That, this Joint joint Resolution resolution shall take effect upon passage. |
SECTION 6. Issuance of GARVEE Bonds |
WHEREAS, The Rhode Island department of transportation ("the department") has |
completed a detailed review of available funding sources for transportation reconstruction, |
maintenance, and repair and has determined that the funding available to carry out an immediate |
program of bridge reconstruction and preventative maintenance (the "program") is insufficient; and |
WHEREAS, The limitation in funding has occurred, in part, due to the absence of a state |
funded capital investment program in transportation infrastructure, and the level funding of federal |
appropriations to the state, along with a reduction in federal funding through the elimination of |
federal earmarks and expiration of additional special federal funds; and |
WHEREAS, Congress has enacted the Fixing America's Surface Transportation (FAST) |
Act, which provides an increase in available federal funding; and |
WHEREAS, The department has explored various options to finance the costs of a robust |
infrastructure program and concluded that the federal-aid financing program authorized in federal |
law by Section 311 of the National Highway System Designation Act of 1995 and commonly |
referred to as the Grant Anticipation Revenue Vehicle Program ("GARVEE program") represents |
the best financing mechanism for the state of Rhode Island inasmuch as the GARVEE program |
accelerates the funding available to ensure that more Rhode Island bridges do not become |
structurally deficient; and |
WHEREAS, The GARVEE program allows a state to issue bonds ("GARVEE Bonds") or |
other debt instruments backed by future appropriations for federal-aid transportation projects |
whereby such amounts are used to cover an assortment of bond-related costs, including principal |
and interest payments, issuance costs, insurance, and other costs incidental to financing; and |
WHEREAS, Among other advantages, GARVEE Bonds may be issued as special revenue |
bonds without a full faith and credit pledge by the state of Rhode Island; and |
WHEREAS, This general assembly finds that the reconstruction, maintenance, and repair |
of the transportation infrastructure of the state is critical for economic development and the general |
welfare of both businesses and residents; and |
WHEREAS, The general assembly has studied the issue of sustainable transportation |
funding and has determined that no single approach, instrument or method is able to provide |
sufficient revenue to maintain the state transportation system in a state of good repair; and |
WHEREAS, The department has determined that GARVEE Bonds should be utilized to |
fund the bridge replacement, reconstruction, and maintenance component of the ten (10) year |
capital program known as RhodeWorks; and |
WHEREAS, In connection with the issuance of GARVEE Bonds, the state of Rhode |
Island, acting by and through RIDOT, may elect to receive in lieu of certain monies which would |
otherwise have been received as reimbursement from FHWA for project costs for bridges in the |
RhodeWorks program, debt service payments to repay indebtedness in the form of bonds or notes |
issued to finance the costs of the construction and financing bridges in the RhodeWorks program; |
and |
WHEREAS, The Rhode Island Public public Corporation corporation Debt debt |
Management management Act act (chapter 8 18 of title 35) requires the general assembly to |
provide its consent to the issuance of certain obligations for essential public facilities of the type |
referenced herein; and |
WHEREAS, The design, construction, equipping and completion of these improvements |
will be financed in whole or in part through revenue bonds issued pursuant to the GARVEE |
program by the Rhode Island commerce corporation ("commerce corporation") or through revenue |
bonds issued pursuant to the GARVEE program by another agency, instrumentality or quasi-public |
corporation established by the state of Rhode Island now or hereafter and otherwise authorized and |
empowered pursuant to law to issue bonds of the type referenced herein for the types of projects |
enumerated herein, with such issuance having an expected term of fifteen (15) years, and annual |
revenues for the operation and maintenance of the bridges to be included in the annual operating |
budget of RIDOT; and |
WHEREAS, The capital costs and anticipated bond issuance amounts associated with these |
projects are estimated to be two hundred million dollars ($200,000,000); now, therefore, be it |
RESOLVED AND ENACTED, That the bridges in the RhodeWorks program are each |
essential public facilities and critical to ensure the economic viability of the citizens, businesses, |
transportation, marine trades and port facilities of the state of Rhode Island and otherwise in the |
best interests of the state of Rhode Island, and that this general assembly hereby approves financing |
not to exceed two hundred million dollars ($200,000,000) in principal amount of GARVEE Bonds, |
the repayment of which shall be derived from and supported by FHWA funds due the state of Rhode |
Island. The term of the GARVEE Bonds shall not exceed fifteen (15) years and the total debt service |
on the GARVEE Bonds shall not exceed two hundred seventy-five million dollars ($275,000,000); |
and be it further |
RESOLVED, That the governor of the state of Rhode Island or the director of the |
department of transportation or the director of the department of administration or the chief |
executive officer or the chief operating officer of the commerce corporation each be and each |
hereafter are, acting singly, authorized and empowered by the general assembly to enter into a |
financing lease, guarantee, loan and trust agreement, indenture or other obligations or contracts or |
agreements and to take such other actions as such official shall deem necessary or appropriate in |
order to issue or facilitate the issuance of the GARVEE Bonds and to provide the commerce |
corporation or any subsidiary thereof or other instrumentality, agency or quasi-public corporation |
otherwise authorized and empowered to issue the bonds specified in this Joint Resolution for the |
RhodeWorks program with the necessary debt service payments up to the amount specified above |
and the necessary security for such bonds consistent with the provisions of this Joint Resolution, |
including any action to pledge, assign or otherwise transfer the right to receive all or any portion |
of future FHWA appropriations for federal-aid transportation projects or other revenues permitted |
by the laws of the state of Rhode Island to secure or provide for the payment of any such GARVEE |
Bonds; and be it further |
RESOLVED, That, this Joint Resolution shall take effect upon passage. |
SECTION 7. This Article shall take effect upon passage. |