P.R. Laws tit. 22, § 1096
In connection with any issuance of bonds, the financing resolution related thereto, in addition to the other matters required to be included in such financing resolution by this chapter, shall contain provisions, among others: (i) specifying the maximum amount of bonds authorized to be issued, including parameters or limitations for such maturities, scheduled maturities, interest rates, or interest rate determination methods and other details of the bonds as the Board deems appropriate; (ii) a description of the approved financing costs to be paid through the issuance of the bonds and recovered from revitalization charges; (iii) specifying the qualitative or quantitative limitations on financing costs to be recovered (which shall not impair the ability to pay and service the bonds in accordance with their terms); (iv) specifying the calculation methodology to determine the amount of revitalization charges; (v) describing of the adjustment mechanism to be applied based on the methodology for allocating revitalization charges to reconcile actual collections with projected collections on at least a semi-annual basis to ensure that the collections of revitalization charges are adequate to pay the principal of and interest on the associated bonds when due, pursuant to the expected amortization schedule, to fund all debt service reserve funds or accounts to the required levels and to pay when due all ongoing financing costs; (vi) describing the benefits for customers and the Authority that are expected to result from the issuance of bonds; (vii) concluding that the calculation methodology determined pursuant to clause (iv) and the adjustment mechanism described in clause (v) are practicable and reasonable to administer and ensure full and timely payment of the bonds; (viii) authorizing the creation of the financing property and specifying that it shall be created and vested in the Corporation upon the issuance of the bonds and addressing such other matters as may be necessary or desirable for the marketing or servicing of the bonds or the servicing of the financing property; (ix) authorizing the imposition, billing, and collection of revitalization charges to pay debt service on the bonds and other ongoing financing costs; (x) describing the financing property that shall be created pursuant to the Financing Resolution and vested in the Corporation upon the issuance of the bonds and that may be used to pay and secure the payment of the bonds; (xi) authorizing the Corporation to enter into and execute one or more servicing, billing, or collection agreements with one or more servicers and other agents, and providing for the appointment of co-servicer or subservicer upon the occurrence of such events as the Corporation, being advised by its consultants, determines enhances the marketability of the bonds; (xii) authorizing the Corporation to enter into and execute one or more depository, trust, or escrow agreements with financial institutions or other persons providing for the escrowing and allocation of the collections of customer bills between the Authority and the Corporation, as the Corporation, in consultation with such advisers as it may deem appropriate, determines enhances the marketability of the bonds; (xiii) requiring the filing of such billing and collection reports relating to the revitalization charges as the Corporation may require from the servicer (at least monthly); (xiv) approving and authorizing the form, execution and delivery of a trust agreement; (xv) describing in detail such other conclusions, determinations, and authorizations as the Corporation, with the advice of its consultants, deems appropriate; and, (xvi) certify that the revitalization charges related to the bonds issued and to be issued shall not exceed, in the aggregate, twenty percent (20%) of the charges billed by the Authority; (xvii) itemize which projects within the Authority’s Capital Improvement Program shall be financed with such issuance, which as of the date of approval of this act shall include all infrastructure projects that were postponed, halted or stopped because of Authority’s lack of funds, as detailed in Resolution No. 2984 approved by the Authority’s Governing Board on June 3, 2016 that are itemized in the following manner:
(1) Construction of Valenciano Water Treatment Plant Phase I and Improvements to the Ceiba Sur Intake Facilities;
(2) Improvements to Isabela’s Water Treatment Plant and Distribution System to Eliminate the Rocha Water Treatment Plant;
(3) Extension of the Sanitary Sewer System at the Northeast side of the Municipality of Añasco in Quebrada Larga, Caracol, Piñales, Hatillo, and La Playa Wards (Completion of the Project);
(4) Ponce Sanitary Trunk Sewer Rehabilitation;
(5) Sanitary Sewer Plant (Completion);
(6) Installation of New Controlled Access Gates at Golden Hills;
(7) Sanitary Sewer System for Las Brumas, La Ley, Marginal La Ley, Pepe Hoyos, and Santa María Communities;
(8) Design and Construction of Improvements to Guajataca Water Treatment Plant - Rehabilitation and Installation of Two Package Plants Modules;
(9) Las Croabas Sanitary Sewer System;
(10) New Primary Sedimentation Tank for the Toa Vaca Water Treatment Plant;
(11) Completion of the Sandín Community Sanitary Sewer System;
(12) Improvements to the Sammy Vélez Community Drinking Water Distribution System;
(13) Improvements to a Sanitary Sewer Plant;
(14) Relocation of Sanitary Trunks, PR-111 & PR-125;
(15) Improvements to Bayamón Sanitary Sewer Plant, Phase I;
(16) Construction of New Offices “Site Works” - Phase II;
(17) Quebrada Water Treatment Plant LT2 Compliance Improvements;
(18) Electrical and Mechanical Improvements to and Installation of an Emergency Generator in the Raw Water Intake facilities of the Water Treatment Plant;
(19) New CT/Distribution Tank for the Corozal Urbana Water Treatment Plant;
(20) Puerto Nuevo WWTP Grit Collection Facility/New Septic Receiving Stations and Roadway Improvements;
(21) Improvements to Ponce Vieja Water Treatment Plant and Construction of a New 4 MG Tank;
(22) Rehabilitation of Lago Cidra Dam;
(23) Rehabilitation of Candelas Pump Station;
(24) Non-Revenue water reduction program, large and small meters;
(25) (Group 10) Water Treatment Plant Rehabilitation Program, Group 10;
(26) Replacement of Carite Plant III’s Penstock supplying Guayama Water Treatment Plant;
(27) Soil Stabilization at Las 300 Pump Station, PR-128;
(28) Replacement of Las Americas Residence Extramural Sanitary Sewer System;
(29) Villalba Regional Aqueduct Water Transmission Line from Juana Díaz to Coamo, Los Llanos and El Encanto Chlorination Rooms;
(30) Improvements to the filter system at Cayey WWTP;
(31) Interconnection of Arecibo Urbano System to the North Coast Aqueduct;
(32) Elimination of La Máquina Water Treatment Plant;
(33) Design and Construction for the Rehabilitation of Sanitary Sewer Plant;
(34) LT2 Compliance Improvements to Vega Baja Water Treatment Plant;
(35) Improvements to Water Treatment Plant - Compliance;
(36) Elimination of Alturas de Orocovis Waste Water Treatment Plant and El Gato Community Sanitary Sewer System Phase 1;
(37) (Group 16) Water Treatment Plant Rehabilitation Program (Group 16);
(38) (Group 12) Water Treatment Plant Rehabilitation Program (Group 12);
(39) Improvements to the Drinking water distribution system at Camarones Centro, Santa Rosa I Ward, Phase II;
(40) Cedro Arriba WTP Compliance Upgrade;
(41) Design Build for the Construction of New Distribution Tank at Cerro Marquez and Pipeline;
(42) Morovis Sur WTP Compliance Improvements;
(43) Repair, Replacement and Renovation - Minor Construction Work;
(44) LT2 Compliance Improvements to the Aguas Buenas Treatment Plant;
(45) Improvements to Morovis Urbana Water Treatment Plant;
(46) Improvements to the Water Filter System at Guilarte Water Treatment Plant;
(47) Structural Improvements to Levittown Sanitary Pump Station;
(48) Water hammer Arrest System for La Plata Raw Water Pipe;
(49) Improvements LT2 to the Luquillo Urbana Water Treatment Plant;
(50) La Plata WTP (Reservoir) - Phase I Correction of Security Issues at Dam (Drainage and Recess);
(51) Elimination of Villa Taína Wastewater Treatment Plant (Phase II) - Improvements to Palmarejo Station;
(52) Improvements to the Gurabo Water Treatment Plant;
(53) Repair, Replacement and Renovation - Minor Construction Work;
(54) Improvements to Urbana Water Treatment Plant;
(55) Design and Construction of Administrative Offices in the Operations Center of the Manatí Area;
(56) Río Grande Estates Sanitary Trunk Sewer or divert to Coco Beach, Rio Grande
(57) Jiménez WTP (STC), Río Grande
(58) Improvements to the raw water intake of the Guzmán Arriba Water Treatment Plant, Río Grande
(59) Study and rehabilitation of the sanitary sewer system in Río Grande Estates, Rio Grande.
Any financing resolution, financing property, adjustment mechanism, and all other obligations of the Corporation set forth in such financing resolution shall be direct, explicit, irrevocable, Non-bypassable and unconditional upon issuance of the bonds, and legally enforceable against the Authority and the Corporation. Except for the requirements in § 1097(b) of this title, the revitalization charges and the adjustment mechanism shall only be subject to the agreement signed and ratified by the boards of directors of the Corporation and the Authority, and shall not be subject to any other provision of law, including the provisions of Act No. 21 of §§ 261 et seq. of Title 27, or §§ 141 et seq. of this title, as respectively amended, or any other provision of law requiring or providing for the review or approval of rates by any government entity, or the holding of public hearings or notice of rate changes of any government entity, including the Legislative Assembly. No other government entity shall adopt any regulations, rules, or procedures nor take any other action that would delay or adversely affect the implementation of the adjustment mechanism or the collection of revitalization charge revenues.
The review by the Corporation of the periodic adjustment of revitalization charges pursuant to the adjustment mechanism shall be limited solely to the mathematical accuracy of the calculations of the amount of such adjustments, and in connection to each such review by the Corporation, it shall retain the services of one or more persons with the necessary experience to review the mathematical accuracy of such periodic adjustments. If the Corporation determines that the calculation of any adjustment to the revitalization charges is mathematically inaccurate, such adjustment shall be modified on or before the following application of the adjustment mechanism and the over or under estimation of collections resulting from such mathematical inaccuracy shall be credited to or added in the following application of the adjustment mechanism, as the case may be, but no customer shall be entitled to a refund of revitalization charges or the retroactive application thereof by reason of mathematical inaccuracies in such periodic adjustments. No adjustment of revitalization charges pursuant to the adjustment mechanism shall in any way affect the irrevocability or Non-bypassability of the financing resolution related thereto. The Corporation is hereby authorized to hire one or more persons to review the calculation of revitalization charges prepared by the servicer. The Authority is hereby authorized and directed to provide the Corporation and the agents thereof with any information required by the Corporation and by any calculation agent to review the calculation of all such periodic adjustments. The Government Development Bank or its successor, as fiscal agent of the Commonwealth of Puerto Rico, is hereby authorized and directed to assist and provide support and financial advice to the Corporation, so that the purposes of this chapter may be achieved diligently, effectively, and in accordance with the provisions of this chapter.
History —July 12, 2016, No. 68, § 2.6.