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| ARTICLE 4 |
RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS
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| 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. |