 | Board of Visitors minutes March 21, 1986 |  |
RESOLUTION FOR AUTHORIZATION TO PARTICIPATE IN COMMONWEALTH
OF VIRGINIA 9-C BOND ISSUE
- The following resolution was adopted:
- WHEREAS, there has been enacted by the General Assembly of Virginia of 1983 an act entitled "Commonwealth of Virginia Higher Educational Institutions Bond Act of 1983" (the "1983 Act");
- WHEREAS, there has been introduced to the 1986 session of the General Assembly of Virginia an act entitled "Commonwealth of Virginia Higher Educational Institutions Bond Act of 1986" (the "1986 Act");
- WHEREAS, if the 1986 Act or comparable legislation, as they may be amended, is enacted by the General Assembly of Virginia, the Treasury Board of the Commonwealth of Virginia shall be authorized, subject to the approval of the Governor, to sell and issue bonds of the Commonwealth of Virginia in an aggregate principal amount not currently exceeding $42,465,000 pursuant to the 1986 Act, together with additional unissued amounts authorized under the 1983 Act, for the purpose of providing funds, with any other available funds, for paying the cost of acquiring, constructing and equipping revenue producing capital projects, including the enlarging and improving thereof, at institutions of higher learning in the Commonwealth, all in accordance with the provisions of Section 9(c) of Article X of the Constitution of Virginia;
- WHEREAS, said revenue producing capital projects under the 1983 Act include the construction of student housing for 650 students known as Stadium Road Housing (the "Student Housing Project") for The Rector and Visitors of the University of Virginia (the "University") at a cost estimated in 1983 to equal or exceed $13,500,000;
- WHEREAS, said revenue producing capital projects under the 1986 Act include the construction of the following projects for the University: Student Health Building (the "Student Health Project") at a cost now estimated to equal or exceed $2,000,000; the North Grounds Recreation Center (the "Recreation Project") at a cost now estimated to equal or exceed $2,575,000; the Hospital Parking Garage (the "Parking Project") at a cost now estimated to equal or exceed $5,000,000; and the Judge Advocate School Addition (the "JAG Project") at a cost now estimated to equal or exceed $7,175,000;
- WHEREAS, pursuant to Chapter 754 of the Acts of the General Assembly of Virginia of 1984 and not the 1983 Act, the University previously sold $11,500,000 of the bonds authorized by Chapter 754 for the construction of the Student Housing Project (the "1984 Bonds") as the University's $11,500,000 Student Housing System (Variable Rate Demand) Revenue Bonds (Series 1984) and now wishes to retire the 1984 Bonds, the principal balance of which is now approximately $11,100,000, through the issuance of bonds pursuant to the 1983 Act; and
- WHEREAS, the Treasurer of Virginia and the University have determined not to issue the above bonds for the JAG Project at this time (together, the Student Housing Project, the Student Health Project, the Recreation Project and the Parking Project are referred to herein as the "Projects"); and
- WHEREAS, the Treasury Board proposes to sell a portion of the above bonds tentatively to be designated "Higher Educational Institutions Bonds, Series 1986" (the "Bonds") which will include an amount not to exceed $20,675,000 for the purpose of financing the cost of the Projects;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF VISITORS OF THE UNIVERSITY OF VIRGINIA:
Section 1. The Board of Visitors of the University of Virginia (the "Board") (a) covenants to fix, revise, charge and collect rentals for or in connection with the occupancy, use or services of all its University-owned student housing system, including the Student Housing Project, and (b) pledges such rentals, to the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Student Housing Project; provided that the current expenses of operating the University-owned student housing system (the "Housing Current Expenses") shall be a first charge on such rentals. The Board further covenants that such rentals will be fixed, revised, charged and collected so that the net revenues therefrom, after payment of the Housing Current Expenses, will as all times be sufficient to pay the principal of, premium, if any,
Section 2. It is hereby found, determined, and declared that, based upon responsible engineering and economic estimates and advice of appropriate officials of the University as shown on Exhibit A hereto, the anticipated net revenues received from the rentals, pledged above will be sufficient to pay the Housing Current Expenses, the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Student Housing Project as the same become due, and debt
Section 3. The Board (a) covenants to fix, revise, charge and collect Student Health Fees for or in connection with the use or services of the Student Health Project, and (b) pledges such Fees to the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Student Health Project; provided that the current expenses of operating the Student Health Project (the "Student Health Current Expenses") shall be a first charge on such Fees. The Board further covenants that such Fees will be fixed, revised, charged and collected so that the net revenues therefrom, after payment of the Student Health Current Expenses, will at all times be sufficient to pay the principal of, premium, if any, and interest
Section 4. It is hereby found, determined, and declared that, based upon responsible engineering and economic estimates and advice of appropriate officials of the University as shown on Exhibit B hereto, the anticipated net revenues received from the Fees pledged above will be sufficient to pay the Student Health Current Expenses, the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Student Health Project as the same become due, and debt service on any outstanding obligations which are secured by the Fees pledged in Section 3 above, so long as (i) the effective true interest cost on the Bonds does not exceed 12% per annum, and (ii) the aggregate amount of debt service actually payable in any bond year and all previous bond years on that portion of the
Section 5. The Board (a) covenants to fix, revise, charge and collect Student Fees and Student Commons Fees for or in connection with the use or services of the Recreation Project, and (b) pledges such Fees to the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Recreation Project; provided that the current expenses of operating the Recreation Project (the "Recreation Current Expenses") shall be a first charge on such Fees. The Board further covenants that such Fees will be fixed, revised, charged and collected so that the net revenues therefrom, after payment of the Recreation Current Expenses, will at all times be sufficient to pay the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Recreation Project as and when the same become due, and to pay debt service on any outstanding obligations that have been previously issued which are secured by the Fees pledged in this Section, that portion of the Bonds issued to finance the Recreation Project to
Section 6. It is hereby found, determined, and declared that, based upon responsible engineering and economic estimates and advice of appropriate officials of the University as shown on Exhibit C hereto, the anticipated net revenues received from the Fees pledged in Section 5 above will be sufficient to pay the Recreation Current Expenses, the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Recreation Project as the same become due, and debt service on any outstanding obligations which are secured by the Fees pledged in Section 5 above, so long as (i) the effective true interest cost on the Bonds does not exceed 9% per annum, and (ii) the aggregate amount of debt service actually payable in any bond year and all previous bond years on that portion of the Bonds issued to finance the Recreation Project does not exceed the estimated aggregate amount of debt service for the corresponding years as shown on Exhibit C, unless the Vice President for Business and Finance provides the Governor and the Treasury Board of the Commonwealth of Virginia with
Section 7. The Board (a) covenants to fix, revise, charge and collect Parking Fees at the University for or in connection with the use or services of its University-owned parking facilities, including the Parking Project, and (b) pledges such Fees to the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Parking Project; provided that the current expenses of operating the Parking Project (the "Parking Current Expenses") shall be a first charge on such Fees. The Board further covenants that such Fees will be fixed, revised, charged and collected so that the net revenues therefrom, after payment of the Parking Current Expenses, will at all times be sufficient to pay the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Parking Project as and when the same become due, and to pay debt service on any outstanding obligations, if any, that have been previously issued to provide funds for University-owned parking facilities, that portion of the Bonds issued to finance the Parking Project to be secured on a parity with such obligations. Any such revenues in excess of the amounts required for the payment of the Parking Current Expenses, the payment of the principal of, premium, if any, and interest on that portion of the Bonds issued to finance
Section 8. It is hereby found, determined, and declared that, based upon responsible engineering and economic estimates and advice of appropriate officials of the University as shown on Exhibit D hereto, the anticipated net revenues received from the Fees pledged in Section 7 above will be sufficient to pay the Parking Current Expenses, the principal of, premium, if any, and interest on that portion of the Bonds issued to finance the Parking Project as the same become due, and debt service on any outstanding obligations issued to provide funds for University-owned parking facilities, so long as (i) the effective true interest cost on the Bonds does not exceed 9% per annum, and (ii) the aggregate amount of debt service actually payable in any bond year and all previous bond years on that portion of the Bonds issued to finance the Parking Project does not exceed the estimated aggregate amount of debt service for the corresponding years as shown on Exhibit D, unless the Vice President for Business and Finance provides the Governor and the Treasury Board of the Commonwealth of Virginia with satisfactory evidence that the revenues pledged in Section 7 above will also be sufficient to pay the additional amount of actual debt service which for any bond year(s) exceeds the estimated amount shown on Exhibit D.
Section 9. The Board covenants that so long as the Bonds are outstanding, the University will pay to the Treasurer of Virginia not less than 30 days before each interest or principal and interest payment date, the amount certified by the Treasurer of Virginia to be due and payable on such date as principal and interest on that portion of the Bonds issued on behalf of the University to finance the Projects.
Section 10. The Board covenants that the University will pay from time to time its proportionate share of all expenses incurred in connection with the sale and issuance of the Bonds and all expenses thereafter incurred in connection with the payment of the principal of, premium, if any, and interest on the Bonds all as certified by the Treasurer of Virginia to the University.
Section 11. The Board covenants that the University (a) within thirty days of the issuance of the Bonds, will spend at least five percent of the net proceeds derived from the sale of that portion of the Bonds issued to finance each Project for costs associated with the construction of that Project, and (b) within six months of the date of the issuance of the Bonds will spend all of the proceeds derived from the sale of that portion of the Bonds issued to finance the Projects for costs associated with the Projects, unless the Treasurer of Virginia permits a longer period of time (not to exceed three years) in which to spend such proceeds. The Board further covenants that the University, either alone or in conjunction with the Treasurer of
Section 12. The Board covenants that for so long as the Bonds are outstanding the University will not enter into any operating lease, management contract or similar agreement with
| Board of Visitors minutes March 21, 1986 | |