Board of Estimate and Contract:
RESOLVED, that an Ordinance adopted by the City Council on September 23, 2026, and signed by the Mayor on September 24, 2026, authorizing the Mayor to Enter into a Master Funding Agreement with the New York State Environmental Facilities Corporation for Water Quality Infrastructure Projects and Sewer Rehabilitation Programs - (the Master Funding Agreement establishes a Maximum Grant Amount of $128,377,500, subject to all terms, conditions, limitations, eligibility requirements, and project-specific approvals established by EFC, NYSDEC, and the Master Funding Agreement); be, and the same is hereby approved.
City Council:
AN ORDINANCE AUTHORIZING THE MAYOR TO
ENTER INTO A MASTER FUNDING AGREEMENT
WITH THE NEW YORK STATE ENVIRONMENTAL
FACILITIES CORPORATION FOR WATER QUALITY
INFRASTRUCTURE PROJECTS AND SEWER
REHABILITATION PROGRAMS
Whereas, in correspondence dated September 14, 2026, the Chief of Infrastructure and Capital Improvements of the City of Mount Vernon has formally requested authorization for the Mayor to enter into the Master Funding Agreement for Water Quality Infrastructure Project Work with the New York State Environmental Facilities Corporation, dated July 20, 2026, substantially in the form presented to the City Council, subject to such non-substantive modifications, revisions, additions, or deletions as may be approved by the Corporation Counsel; and
Whereas, the City of Mount Vernon (the “City”) continues to undertake substantial work to address deficiencies within its sanitary sewer and stormwater infrastructure, improve system reliability, protect public health, and advance compliance with applicable federal, State, and local water quality requirements; and
Whereas, the City has identified a continuing need for funding and administrative mechanisms to support eligible water quality infrastructure, sewer rehabilitation, planning, design, construction, and related improvement projects; and
Whereas, the New York State Environmental Facilities Corporation (“EFC”) provides financial assistance for eligible municipal water quality infrastructure projects that provide a water quality benefit; and
Whereas, the City has been presented with a proposed Master Funding Agreement for Water Quality Infrastructure Project Work, dated July 20, 2026, between the City and EFC (the “Master Funding Agreement”), which is intended to establish the contractual, financial, and administrative framework through which the City may submit eligible projects to EFC for consideration and authorization of funding; and
Whereas, the Master Funding Agreement provides for a Maximum Grant Amount of One Hundred Twenty-Eight Million Three Hundred Seventy-Seven Thousand Five Hundred Dollars ($128,377,500), subject to the terms, conditions, limitations, eligibility requirements, and project-specific approvals contained therein; and
Whereas, the Maximum Grant Amount represents a funding framework and does not constitute an automatic authorization for the City to expend the entire amount, as funding shall be made available only for eligible costs associated with projects that have been properly submitted and approved in accordance with the Master Funding Agreement and applicable EFC and New York State requirements; and
Whereas, pursuant to the Master Funding Agreement, the City may submit Project Authorization Requests identifying the proposed project scope, estimated costs, requested funding, anticipated schedule, and supporting documentation for review by EFC; and
Whereas, Section 3.1 of the Master Funding Agreement provides that EFC may approve, reject, approve with conditions, approve in part, suspend, or modify a Project Authorization Request, thereby ensuring that project-specific funding decisions are made in accordance with applicable eligibility requirements, documented scope, estimated costs, and other applicable conditions; and
Whereas, the Master Funding Agreement provides for continuing oversight by EFC and the New York State Department of Environmental Conservation (“NYSDEC”), including requirements relating to project authorization, disbursements, plans and specifications, project records, audits, and access to approved projects; and
Whereas, Section 3.1(d) of the Master Funding Agreement requires applicable Disbursement Requests to be approved by NYSDEC; and
Whereas, Section 3.1(e) of the Master Funding Agreement provides that, where applicable, construction funding, other than funding for planning and design, shall not be disbursed until the applicable plans and specifications have been approved or accepted by NYSDEC and the City has satisfied all applicable conditions; and
Whereas, Section 4.11 of the Master Funding Agreement requires the City to maintain appropriate project accounts and records and permits EFC and its authorized representatives to review and audit such records; and
Whereas, the Master Funding Agreement further requires the City to provide EFC, NYSDEC, and their authorized representatives appropriate access to approved projects and associated records, subject to the terms and conditions of the Agreement; and
Whereas, the Master Funding Agreement requires the City to use funding solely for Eligible Costs associated with Approved Projects and to comply with applicable federal, State, and local laws, regulations, procurement requirements, governmental approvals, prevailing wage requirements, and other applicable conditions; and
Whereas, the Master Funding Agreement further establishes requirements concerning project documentation, maintenance of records, proof of payment, project completion, and participation by Minority- and Women-Owned Business Enterprises (“MWBE”) and Service-Disabled Veteran-Owned Business Enterprises (“SDVOB”), as applicable; and
Whereas, approval of the Master Funding Agreement will provide the City with a common contractual and administrative framework through which eligible sewer rehabilitation and water quality infrastructure projects may be advanced through the EFC funding process, without requiring the City to establish an entirely separate master funding relationship for each eligible project; and
Whereas, the Master Funding Agreement does not, by itself, approve any particular construction project, authorize any particular contractor, or waive or eliminate the City's obligations concerning procurement, engineering, environmental review, construction, or other applicable legal and regulatory requirements; and
Whereas, the City will remain responsible for complying with all applicable requirements and for any costs associated with approved projects that exceed the funding actually authorized or provided by EFC; and
Whereas, the City Council finds that entering into the Master Funding Agreement is in the best interests of the City and its residents because it will provide an important funding mechanism to support the City's continuing sewer rehabilitation and water quality infrastructure objectives while maintaining appropriate financial, technical, regulatory, and municipal accountability; and
Whereas, the City Council has reviewed the proposed Master Funding Agreement and has determined that authorization of the same is warranted, subject to any modifications or conditions deemed appropriate by the City's Corporation Counsel;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MOUNT VERNON, NEW YORK, AS FOLLOWS:
Section 1. Title. This Ordinance shall be known and may be cited as the “Master Funding Agreement with New York State Environmental Facilities Corporation for Water Quality Infrastructure Projects and Sewer Rehabilitation Ordinance.”
Section 2. Authorization of Master Funding Agreement. The Mayor is hereby authorized to enter into the Master Funding Agreement for Water Quality Infrastructure Project Work with the New York State Environmental Facilities Corporation, dated July 20, 2026, substantially in the form presented to the City Council, subject to such non-substantive modifications, revisions, additions, or deletions as may be approved by the Corporation Counsel.
Section 3. Maximum Grant Amount. The Master Funding Agreement establishes a Maximum Grant Amount of $128,377,500, subject to all terms, conditions, limitations, eligibility requirements, and project-specific approvals established by EFC, NYSDEC, and the Master Funding Agreement.
The establishment of such Maximum Grant Amount shall not be construed as an authorization for the City to expend the entire amount. Funding shall be available only for Eligible Costs associated with Approved Projects and only to the extent authorized and disbursed pursuant to the Master Funding Agreement and applicable law.
Section 4. Project Authorization and Funding. The City is authorized to submit Project Authorization Requests to EFC for eligible water quality infrastructure and sewer rehabilitation projects.
Each Project Authorization Request shall identify, as applicable, the proposed project scope, estimated costs, requested funding, anticipated schedule, supporting documentation, and such other information as may be required by EFC or NYSDEC.
No project shall be deemed approved for funding solely by virtue of this Ordinance or the execution of the Master Funding Agreement. Each project shall remain subject to the applicable EFC authorization, eligibility determination, funding allocation, and other required approvals.
Section 5. EFC and NYSDEC Oversight. The City shall comply with all applicable oversight, review, authorization, and reporting requirements imposed by EFC and NYSDEC under the Master Funding Agreement and applicable law.
The City acknowledges that EFC may approve, reject, approve with conditions, approve in part, suspend, or modify Project Authorization Requests and that applicable disbursement requests shall be subject to NYSDEC approval and all other conditions established under the Master Funding Agreement.
Where applicable, construction funding shall not be disbursed until the required plans and specifications have been approved or accepted by NYSDEC and all applicable conditions have been satisfied.
Section 6. Municipal Compliance Obligations. The City shall:
1. Use EFC funding solely for Eligible Costs associated with Approved Projects;
2. Comply with all applicable federal, State, and local laws, rules, regulations, and requirements;
3. Comply with all applicable municipal and governmental procurement requirements;
4. Obtain all required permits, approvals, and authorizations;
5. Maintain appropriate project accounts, financial records, and supporting documentation;
6. Submit documentation required in connection with Project Authorization Requests and Disbursement Requests;
7. Provide proof of payment and other supporting documentation required for reimbursement or disbursement;
8. Comply with applicable prevailing wage requirements;
9. Comply with applicable MWBE and SDVOB participation requirements;
10. Permit EFC, NYSDEC, and their authorized representatives reasonable access to approved projects and associated records as required by the Master Funding Agreement;
11. Maintain records in accordance with the applicable recordkeeping and audit requirements; and
12. Complete approved projects and remain responsible for any costs or obligations not covered by EFC funding.
Section 7. No Waiver of Procurement or Other Legal Requirements. Nothing contained in this Ordinance or the Master Funding Agreement shall be construed to exempt the City from any applicable procurement requirement, competitive bidding requirement, engineering requirement, environmental review, permitting requirement, prevailing wage obligation, MWBE or SDVOB requirement, or other requirement imposed by federal, State, or local law.
Any contract, purchase, construction project, professional service, or other expenditure undertaken in connection with an Approved Project shall be subject to all applicable City and legal approval requirements.
Section 8. Authority to Execute Documents. The Mayor of the City of Mount Vernon, or the Mayor's duly authorized designee, is hereby authorized to execute the Master Funding Agreement and such certifications, applications, Project Authorization Requests, Disbursement Requests, amendments, acknowledgments, and other documents as may be necessary or appropriate to implement the purposes of this Ordinance, subject to review and approval as to form by the Corporation Counsel.
Section 9. Accounting and Disbursement of Funds. All funds received pursuant to the Master Funding Agreement shall be deposited, accounted for, and disbursed in accordance with applicable law, City financial procedures, the requirements of EFC and NYSDEC, and the terms of the applicable Project Authorization.
No expenditure shall be made from EFC funding except for costs determined to be eligible and properly authorized under the applicable funding documents.
Section 10. Severability. If any provision of this Ordinance or the application thereof to any person, entity, or circumstance is adjudged invalid by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining provisions of this Ordinance, which shall remain in full force and effect.
Section 11. Effective Date. This Ordinance shall take effect immediately upon its adoption by the City Council and subsequent approval by the Board of Estimate and Contract.