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art.004/2/004/1

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     ARTICLE 4

RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

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

Laws 35-18-1, et seq.

     SECTION 2. University of Rhode Island – Utility Infrastructure Upgrade Phase III.

     WHEREAS, The University of Rhode Island Board of Trustees and the University of

Rhode Island (“University”) are proposing a project which involves the engineering and

construction of upgrades and component replacements to five (5) municipal-level Kingston

Campus utility systems;

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

infrastructure systems;

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

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

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

University’s campuses for the next twenty (20) to forty (40) years;

     WHEREAS, The University has also developed the required Stormwater Management

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

building projects under development and are driving stand-alone stormwater infrastructure projects

as well;

     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, but now needs additional investments beyond annual capital

resources;

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

and improve the reliability of infrastructure on the University’s campuses;

     WHEREAS, The total project cost associated with the completion of this phase of the

project and proposed financing method is nine million one hundred ninety-one thousand two

hundred fifty dollars ($9,191,250), including cost of issuance, debt service payments would be

supported by revenues derived from the University’s unrestricted general revenues, and total debt

service on the bonds is not expected to exceed eight hundred five thousand dollars ($805,000)

annually and sixteen million one hundred thousand dollars ($16,100,000) in the aggregate based

on an average interest rate of six (6%) percent and a twenty (20) year term; now, therefore be it

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

exceed nine million one hundred ninety-one thousand two hundred fifty dollars ($9,191,250) for

the Utility Infrastructure Upgrade Phase III project at the University; and be it further

     RESOLVED, That, this Joint Resolution shall take effect upon passage by this General

Assembly.

     SECTION 3. Issuance of GARVEE Bonds.

     WHEREAS, The Rhode Island department of transportation ("the department" or

"RIDOT") 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, Congress has enacted the Infrastructure Investment and Jobs Act (IIJA),

which increases the federal investment in repairing and reconstructing our nation’s roads and

bridges; 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 the department may effectuate the expeditious

reconstruction of a critical component of Rhode Island’s highway transportation infrastructure; 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 current Washington Bridge (the "Current Washington Bridge"), which

carries approximately 90,000 vehicles per day and is one of the busiest sections of Interstate

highway in Rhode Island, serving the citizens, businesses and port facilities of the State of Rhode

Island both in the city of Providence and elsewhere, is in dire need of repair or reconstruction; and

     WHEREAS, Based on studies and analysis of RIDOT, a newly constructed or

reconstructed Washington Bridge (the "New Washington Bridge"), as opposed to repair of the

Current Washington Bridge, is necessary for the continued economic success and viability of the

citizens, businesses, transportation and port facilities of the city of Providence and elsewhere and

otherwise in the best interests of the State of Rhode Island; 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 construct the New Washington Bridge and 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 construction, replacement, or reconstruction of the New Washington Bridge in a timely

manner; 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 the New

Washington Bridge, debt service payments to repay indebtedness in the form of bonds or notes

issued to finance the costs of the construction and financing the New Washington Bridge; and

     WHEREAS, The Rhode Island public corporation debt management act (chapter 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

described herein, with such issuance having an expected term of fifteen (15) years, and annual

revenues for the operation and maintenance of the New Washington Bridge to be included in the

annual operating budget of RIDOT; and

     WHEREAS, The capital costs and anticipated bond issuance amounts associated with the

New Washington Bridge are estimated to be (a) a total additional capital cost of four hundred fifty-

five million two hundred twenty thousand dollars ($455,220,000); (b) the total debt issuance of

GARVEE Bonds associated with payment of the capital costs, financing costs, costs of issuance or

insurance or credit enhancement would be an amount not to exceed three hundred thirty-four

million five hundred eighty thousand dollars ($334,580,000); (c) total debt service payments on the

GARVEE Bonds over an expected fifteen (15) year period on the three hundred thirty-four million

five hundred eighty thousand dollars ($334,580,000) issuance are projected to be five hundred

thirty eight million six hundred thirty thousand dollars ($538,630,000) assuming an average coupon

rate of five percent (5%); and

     WHEREAS, The state may utilize other sources of funds, including, but not limited to,

appropriations of State Fiscal Recovery Funds, Rhode Island Capital Plan Funds, Rhode Island

Highway Maintenance Account proceeds, and motor fuel tax revenue, as state matching funds to

the extent required to receive federal aid from the FHWA related to the New Washington Bridge

project; and

     WHEREAS, If the state receives federal funds allocated for use on the New Washington

Bridge project that allow the state to complete the project and issue a lesser amount of debt than is

authorized hereunder, the state may issue such lesser amount as it determines is appropriate to

adequately finance and timely complete the project; now, therefore, be it

     RESOLVED AND ENACTED, That the New Washington Bridge is an essential public

facility 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 the following financing:

the issuance of an amount not to exceed three hundred thirty-four million five hundred eighty

thousand dollars ($334,580,000) in GARVEE Bonds, the repayment of which shall be derived from

and supported by FHWA funds due the state of Rhode Island, and total debt service on GARVEE

Bonds of five hundred thirty eight million six hundred thirty thousand dollars ($538,630,000) as

specified above for bonds issued for the New Washington Bridge for the construction, design,

maintenance, completion, finance costs, including, but not limited to, costs of issuance, credit

enhancement, legal counsel and underwriter fees and expenses and other costs associated with the

New Washington Bridge; 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 referenced herein 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 and Act for the New Washington Bridge project 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 and Act, 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 any issuance of bonds or notes authorized in the preceding paragraphs

may be effectuated in an aggregate principal amount representing the sum of the authorized

GARVEE Bonds; and be it further

     RESOLVED, That this Joint Resolution shall take effect upon passage.

     SECTION 4. This article shall take effect upon passage.