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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. |