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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.