Village of Marcellus Council Proceedings-Regular Meeting, September 9, 2025

Agenda
Motion by Irwin, supported by Engstrom, to approve the agenda as revised:

• Move Item 9. Public Participation Plan for MI Neighborhood 2.0 Homeowner Rehabilitation Program  to Item F. Under Public Hearing MSHDA MI Neighborhood Program.

• Add Item 13. Water Project

• Under DPW – Add Item C. Sidewalks

Ayes: All. Nays: None. Motion carried.

Minutes
Motion by Webb, supported by Engstrom, to approve as presented and place on file the minutes of the August 26, 2025, regular meeting. Ayes: All. Nays: None. Motion carried. 

Bills
Motion by Haley G., supported by Engstrom, to authorize the payment of bills in the amount of $18,817.51. Roll call vote – Ayes: Watts, Engstrom, Haley G., Markle, Haley M., Webb and Irwin. Nays: None. Motion carried.

Attorney Daniel Hatch Update – Downtown Beautification Project Update
Village Attorney Daniel Hatch provided an update on the Downtown Beautification Project. He reported that he, along with President Irwin and President Pro Tempore Engstrom, met with representatives from Wightman & Associates, Inc., Balkema Excavating, Inc., and Western Surety Bonding Company to discuss project defaults and the Village’s demands for a cure.

   Mr. Hatch stated he expects a proposal from Wightman & Associates, Inc. and Balkema Excavating, Inc. that would resolve the issues at no cost to the Village. He is also waiting for a response from Ted Gryfinski of Western Surety. As of this date, no responses have been received.

   Once the proposal(s) are received, they will be forwarded to Higgins & Associates, Inc., the Village’s design/construction expert, for review and approval or rejection.

Public Hearing – MSHDA MI Neighborhood 2.0 Program 7:30 p.m.
Motion by Webb, supported by Markle, to recess the regular Village Council meeting and open the Public Hearing for the Michigan State Housing Development Authority’s (MSHDA), Community Development Block Grant (CDBG), MI Neighborhood 2.0 Program Public Hearing. Roll call vote – Ayes: Haley M., Webb, Irwin, Engstrom, Markle, Watts and Haley G. Nays: None. Motion carried.

   Village Manager/Clerk Terrill reminded Village Council members and citizen attendees that the Village had been invited to apply to the MI Neighborhood 2.0 CDBG program after submitting its Letter of Intent; and gave the following introduction and explanation of the MSHDA MI Neighborhood 2.0 CDBG CHILL Program, its benefits to the community and requirements for eligibility:

Overview and Purpose
What it is: The MI Neighborhood 2.0 program is a grant opportunity from the Michigan State Housing Development Authority (MSHDA) that combines state and federal funding to achieve the goals of Michigan’s Statewide Housing Plan. The program is designed to create and preserve safe, affordable housing.

Grant and Loan Structure:
Total Funding Request: We are applying for a total of $472,000.

$72,000 will be allocated for program administration.

Grants are available for eligible activities costing $10,000.

For eligible activities costing between $10,001 and $25,000, a zero-interest, deferred loan will be provided with a forgivable lien. This maximum amount accounts for costs related to the  Lead Policy Bulletin.

Program Beneficiaries & Eligibility
Whom the Program Benefits: The program is designed to assist owner-occupied households within the Village of Marcellus. It targets those with an income at or below 80% of the Area Median Income (AMI), a minimum of 20% of households must be at or below 60% of AMI.

Homeowner Residency Requirement: A five-year, non-prorated forgivable lien is placed on properties that receive over $10,000 in assistance. This means the homeowner must live in the home for 5 years after the improvements are made to avoid having to repay the loan.

Eligible Properties: The program focuses on owner-occupied, single-family homes within the designated service area. Properties must be owned by the applicant and cannot be tax delinquent or have outstanding building code violations.

Eligible Activities: A variety of home repairs and improvements are eligible, including:

Housing Rehabilitation: This includes a wide range of improvements, from minor repairs for energy efficiency or accessibility to major renovations. Eligible activities include:

Roof, soffit, gutter and fascia replacement/repair.

Siding and painting.

Porch, deck, ramp and step repair or installation.

Private driveways and sidewalks.

Energy efficiency improvements (e.g., windows and doors, if combined with other repairs).

Ineligible Activities: CDBG funds do not cover temporary relocation costs. Note: All projects must be of professional quality and meet local code requirements.

Program Administration
Roles and Responsibilities:
Village Manager/Clerk: Serves as the Certifying Officer for environmental review and the authorized signatory for all application documents, grant agreements and payment requests.

Third-Party Administrator/Contractor: A qualified third-party administrator will handle day-to-day program management, including outreach, eligibility determination and project oversight.

Contractors: All contractors will be pre-qualified, licensed, and insured.

Public Engagement and Accountability:

Public Hearings: The program requires a minimum of two public hearings. The initial program hearing was published in The Marcellus News on September 4, 2025.

Information Access: The public must have reasonable and timely access to all local meetings, information and records related to the grant.

Complaint Procedures: Written complaint procedures will be available, with the goal of a written response within 15 working days.

   President Irwin commented that this is a great opportunity for the Village to continue improving living conditions in the community, making the town more attractive and stated this is something the Village should pursue. 

  Current CHILL and MI Neighborhood TPA Sarah Ayers shared that homeowners are eligible for up to $50,000 in assistance through MSHDA programs over five years. This is a significant point for residents who may have had to scale back on their projects in a previous grant cycle. Once the work under our current program is completed and closed out, these homeowners will have the opportunity to apply for additional funds through a future MSHDA grant.

   There were no other questions or comments about the program.

   Motion by Irwin, supported by Markle, to close the public hearing and return to open session at 7:41 p.m. Roll call vote – Ayes: Engstrom, Irwin, Watts, Webb, Haley M., Haley G. and Markle. Nays: None. Motion carried.

Approval to Continue Application to MSHDA CDBG MI Neighborhood 2.0 Program
Motion by Irwin, supported by  Watts, to support and approve the Village’s continued pursuit of a grant from the MSHDA CDBG MI Neighborhood 2.0 Program. Roll call vote – Ayes: Markle, Haley G., Engstrom, Irwin, Watts, Webb and Haley M. Nays: None. Motion carried.

Citizen/Public Participation Plan for MI Neighborhood 2.0 Rehabilitation Program
Motion by Irwin, supported by Engstrom, to approve the MI Neighborhood 2.0 Citizen/Public Participation Plan. Roll call vote – Ayes: Webb, Markle, Irwin, Engstrom, Haley G., Watts and Haley M. Nays: None. Motion carried.

Complaint Procedures and Project Plan for MI Neighborhood 2.0 Rehabilitation Program
Motion by Irwin, supported by Watts, to approve the Complaint Procedures and Project Plan for the MSHDA MI Neighborhood 2.0 Program. Roll call vote – Ayes: Engstrom, Haley G., Watts, Webb, Markle, Haley M. and Irwin. Nays: None. Motion carried.

Resolution 2025-04 – Authorizing Resolution
Motion by Irwin, supported by Engstrom, to adopt Resolution 2025-04, a Resolution to Authorize Michigan State Housing Development Authority (MSHDA) MI Neighborhood 2.0 CDBG Program for Homeowner Improvement Projects. Roll call vote – Ayes: Markle, Haley M., Watts, Webb, Irwin, Haley G. and Engstrom. Nays: None. Motion carried.

Consent Agenda
Motion by Haley G., supported by Markle, to receive and place on file all items on the Consent Agenda. Ayes: All. Nays: None. Motion carried.

Clerk’s Report
MSHDA CHILL and MI Neighborhood Program Inspector 
Motion by Irwin, supported by Engstrom, to approve the bid and hiring of Brian Lamoreaux for inspection services for the CHILL and MI Neighborhood Programs at a cost of $200.00 per address. Roll call vote – Ayes: Webb, Irwin, Haley M., Engstrom, Markle, Watts and Haley G. Nays: None. Motion carried.

MSHDA CHILL and MI Neighborhood Program Updates
CHILL and Mi Neighborhood TPA Sarah Ayers, provided the Village Council with the following information regarding the CHILL and MI Neighborhood Programs: 

● MI Neighborhood:
○ Called Better World Builders regarding the energy audit for 219 Dibble Street 

○ Work on four properties are underway and work on the remaining five will begin when drawdown funds arrive

○ All funds will be expended with the current homeowner list.

● CHILL:
○ Following addresses have applied for CHILL Cohort Two. These homes have all passed initial income verification.

● 319 East Dibble Street

● 387 North Maple Street

● 156 East North Street

● 479 Elm Street

● 285 North Burney Street

● 288 East Main Street

● 104 West Read Street

● 257 East Monroe

○ Internally, we have completed the State Historic Preservation Office (SHPO) inventory cards for the following addresses:

■ 319 East Dibble Street

■ 387 North Maple Street

■ 156 East North Street

■ 479 Elm Street

■ 285 North Burney Street

■ 288 East Main Street

■ 104 West Read Street

■ 257 East Monroe

○ Sent emails to the county to verify warranty deeds. 

○ Connected with the county treasurer for property tax verification. All taxes have been confirmed as up to date

○ Homeowners will reconnect with the TPA team the week of September 18 to supply in-depth financial documentation 

● Next Steps:

○ Begin working on the Environmental Review Tier 2 forms for CHILL Round Two Cohort

○ FSR Drawdown Two for CHILL recipients

○ FSR Drawdown for MIN recipients

○ FSR Reporting for MIN recipients

○ Finalize contracted construction projects and necessary documentation as completed.

○ Review and approve home inspection bids TPA

Development Incentives and Application Form
Motion by Webb, supported by Haley M., to approve the Development Incentives Policy and its associated Application form and to forward the same to the Planning Commission for discussion and approval. Roll call vote – Ayes: Haley G., Irwin, Markle, Watts, Webb, Haley M. and Engstrom. Nays: None. Motion carried.

VC3 – Quote for Treasurer PC, DPW Laptop and Windows 11 Updates to Clerk PC and DPW PC
Motion by Irwin, supported by Engstrom, to approve a quote from VC3 in the amount of $3,581.00 for the acquisition of a new PC for the Treasurer and a new laptop for the DPW. The motion also authorizes VC3 to perform necessary Windows 11 updates on the existing Clerk and DPW computers. Roll call vote – Ayes: Webb, Haley G., Engstrom, Irwin, Markle, Watts and Haley M. Nays: None. Motion carried.

Marcellus Metalcasters 18-Month Notice 
Village Manager/Clerk Terrill reported receipt of a formal email notice from Brad Ade, dated September 5, 2025. The email confirmed Marcellus Metalcasters’ intention to terminate its lease on March 4, 2027, as the company will be moving the remainder of its operations to its Bangor, Michigan location. Mr. Ade also conveyed the company’s willingness to release the lease earlier should the Village find a new tenant.

Motion by Irwin, supported by Haley G., to accept Marcellus Metalcasters’ Notice of Intent to Vacate. Ayes: All. Nays: None. Motion carried. President Irwin reminded Village Council members that the building should be “broom clean” upon termination.

DPW
August 2025 DPW Report
Motion by Irwin, supported by Webb, to receive and place on file the August 2025 DPW Report. Ayes: All. Nays: None. Motion carried.

NTEC Quote – Water Tower Tank Inspection
President Irwin shared the Nelson Tank Engineering and Consulting, Inc. (NTEC) quote for the Village’s required 5-year water tower inspection. The inspection involves the use of a Remote Operated Vehicle (ROV) to perform an underwater inspection and does not require the water tower to be emptied and eliminates the need to shut the system down for five days. Motion by Irwin, supported by Haley M., to approve the quote from NTEC for the ROV Method inspection at a cost of $4,350.00. Roll call vote – Ayes: Engstrom, Irwin, Webb, Haley G., Markle, Watts and Haley M. Nays: None. Motion carried.

MSU Citizen Planner Program
Motion by Markle, supported by Haley M., to authorize payment for registration of up to three Planning Commission members to attend the upcoming Citizen Planner sessions in St. Joseph County at a cost of $250.00 each. Roll call vote – Ayes: Watts, Webb, Markle, Irwin, Haley G., Engstrom and Haley M. Nays: None. Motion carried.

Adjournment
Motion by Haley M., supported by Markle, to adjourn at 8:30 p.m. Ayes: All. Nays: None. Motion passed.

Jacqueline A. Terrill
Village Manager/Clerk

Dennis Irwin
Village President

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