HomeMy WebLinkAbout09-08-2026 Community Investment & Personnel and Finance Joint Committee MinutesOFFICE OF THE CITY CLERK
BIANCA L. T IRADO, CITY CLERK
COMMUNITY INVESTMENT &
PERSONNEL AND FINANCE
COMMITTEES {JOINT MEETING)
Community Investment Committee
Members Present:
Community Investment Committee
Members Absent:
Personnel and Finance Committee Members
Present:
Personnel and Finance Committee Members
Absent:
Other Council Present:
Others Present:
Presenters:
Agenda:
SEPTEMBER 8, 2026, 6:00 P.M.
Sheila Niezgodski, Sherry Bolden-Simpson,
Kevin Upton, Tom Gryp, Ophelia Gooden-
Rodgers, Karen L. White
None
Rachel Tomas Morgan, Ophelia Gooden-
Rodgers, Caz Margenau, Karen L. White,
Sheila Niezgodski
None
Canneth Lee, Dr. Heidi Beidinger, Dr.
Oliver Davis, Sharon McBride*
Bianca L. Tirado, Matthew Neal, Jasmine
Jackson, Lari' onna Green, Veronica Pitt-
Payne, Bob Palmer
Eric Horvath, Jill Scicchitano, Alyson
Herzig
Presentation by Eric Horvath, Director of
Public Works, City of South Bend
Presentation by Jill Scicchitano, Economic
& Business Development Manager, AEP
Presentation by Alyson Herzig, Director of
Economic Development, South Bend
Regional Chamber of Commerce
INTEGRITY I SERVICE I ACCESSIBILITY
Jasmine Jack.son
CHIEF D EPUTY CITY CLERK/ CHIEF OF SL\FF
Matthew Neal
D EPCTY CITY CLERK / DIRECTOR OF POLICY
Veronica Pitt-Payne
DIRECTOR OF SPECL\L PROJECTS
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Questions from Council and Committee
Members
Public Comment
Members marked with an asterisk(*) are in virtual attendance via Microsoft Teams.
Please note the attached link for the meeting recording:
https:/ /docs.south bendin.gov /Web Lin k/Browse.aspx? d bid=O&repo=s bend& med iaid=4 l 3451
Committee Chair Karen L. White, Community Investment Committee, called to order the Joint
Committee meeting at 6:00 P.M. She announced that this is an informational meeting.
Committee Chair Sheila Niezgoski, Personnel and Finance Committee, stated that this meeting
was called as a follow up to the Utilities Committee meeting on August 20. She reiterated that
this is an informational meeting and stated that Council will not be judging, voting, or taking a
position.
Presentation by Eric Horvath, Director of Public Works, City of South Bend
Eric Horvath, Director of Public Works, with offices on the fourth ( 4th) floor of City Hall, South
Bend, IN 46601 , presented on the City's involvement with the Amazon data center and its
industrial wastewater pre-treatment program. He stated that the City of South Bend does not
provide water to the Amazon data center, however, the wastewater is discharged to the City's
sewer system. He explained that the influent runs directly to the City's wastewater treatment plant
through a dedicated sanitary sewer, not through the combined sewer system. To support the
project, two (2) lift station upgrades, a new lift station, and a section of gravity pipe were
completed through a partnership between the county, Amazon, and the City. He stated these
infrastructure upgrades are City assets and were designed to support not only Amazon but also
the GM Samsung plant and other facilities in the area.
He explained that the wastewater consists of both non-contact cooling water and sanitary sewage
from workers on site. He said both streams are separately metered, and Amazon pays the same
rate as all other City customers plus a fourteen percent (14%) surcharge applicable to customers
outside City limits. He displayed a graph showing that Amazon ranked eleventh (11 th) among the
City's top twelve (12) wastewater customers by volume. Its discharge of approximately zero-
point-zero-three billion (0.03 billion) gallons represents approximately zero-point-two-eight
percent (0.28%) of the City's total annual flow, which is ten-point-nine billion (10.9 billion)
gallons. On a daily basis, influent from the facility constitutes approximately zero-point-one-
seven percent (0.17%) of the plant's daily design capacity. He presented a wastewater strength
comparison showing that Amazon's discharge is ninety-eight to ninety-nine percent (98-99%)
less concentrated than typical residential wastewater across four ( 4) primary parameters:
biochemical oxygen demand, ammonia, total suspended solids, and phosphorus. Metal
concentrations were similarly well below average, with lead ninety-two percent (92%) lower,
chromium seventy-two percent (72%) lower, nickel fifty-six percent (56%) lower, and copper
thirty-eight percent (38%) lower than the City's typical influent averages.
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He spoke about the City's pre-treatment program, an EPA-approved plan that makes the City of
South Bend the control authority for industrial wastewater in the area. He explained that the
purpose of pre-treatment is to protect workers at the wastewater treatment plant, microorganisms
in the biological treatment process, the resulting biosolids, and the environment from exposure to
harmful substances. The City's program involves reviewing an industry's operations, determining
if pre-treatment is required, issuing discharge permits with monitoring requirements and limits,
and enforcing compliance through notices of violation, administrative orders, civil penalties, and
termination of service ifneeded. Permits are approved by the Board of Public Works and are valid
for up to five (5) years. He stated that the City maintains twenty-four (24)-hour access to
monitoring manholes with composite samplers for compliance testing. Ongoing monitoring
reports are required from permitted industries, and the City will issue violations and
administrative orders to bring any industrial user back into compliance.
Presentation by Jill Scicchitano, Economic & Business Development Manager, AEP
Jill Scicchitano, Economic and Business Development Manager, AEP, 6480 Adams Road, South
Bend, IN 46628, presented. She provided an overview of Indiana Michigan Power, one of AEP's
seven (7) operating companies, which serves one hundred sixty-four (164) communities and more
than six hundred thousand (600,000) customers across northeast and north-central Indiana and
southwest Michigan. The company is regulated by the Indiana Utility Regulatory Commission
(IURC) and is part of the P JM Interconnection regional transmission network. She described their
infrastructure, which includes over twenty-one thousand (21,000) miles of distribution lines and
is part of AEP's broader network with the largest high-voltage transmission system in the nation.
The company's current energy mix includes nuclear, coal, natural gas, wind, solar, and hydro, and
it is exploring the expansion of small modular reactors (SMR), natural gas, and renewables.
She described the tariff framework governing large data center customers, established through a
2024 settlement and a 2025 IURC order. Key provisions ensure that large load customers pay for
the infrastructure needed to support them, are subject to exit and termination fees if they close
prematurely, face significant collateral requirements, and pay for one hundred percent (100%) of
their contracted energy, with a minimum payment due even if not operating at full capacity. She
stated that Indiana Michigan Power filed a proposed base rate reduction with the IURC in August
2026, with a five percent (5%) reduction for residential customers and a two percent (2%)
reduction for commercial and industrial customers. Pending IURC approval, the rate reduction is
expected to take effect in summer 2027. She also noted that a three-point-six percent (3.6%) rate
decrease was already implemented in May 2026. She attributed both reductions directly to
revenue generated by the growth in large load customers, including data centers. She described
Indiana Michigan Power's vetting and planning process for large load customers, which involves
comprehensive engineering analysis and load studies, compliance with NERC, FERC, the IURC,
and P JM, and verification that prospective customers have obtained all required zoning and land
use approvals before a contract is executed.
Presentation by Alyson Herzig, Director of Economic Development, South Bend Regional
Cham her of Commerce
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Alyson Herzig, Director of Economic Development, South Bend Regional Chamber of
Commerce, 101 North Michigan Street, South Bend, IN 46601, presented on the economic impact
of data center development. She distinguished three (3) types of data centers present in the
community: co-location facilities, which serve multiple business customers sharing space; cloud
computing facilities, which deliver storage, databases, and applications over the internet; and
hyperscale facilities, which include the Amazon Web Services (A WS) facility in New Carlisle and
the Microsoft facility in Granger. She noted that a frequently referenced facility in Dowagiac,
Michigan is a crypto mining facility that is no longer in operation and is not the type of facility
under discussion today.
She spoke about construction employment opportunities, noting that the A WS project peaked at
four-thousand five-hundred (4,500) workers on site, with approximately half of them local. She
stated that over one-thousand (1 ,000) local electricians worked on the project at premium wages.
The project generated one-hundred-seventy-four-thousand five-hundred (174,500) hotel room
nights, resulting in one-point-seven million dollars ($1 ,700,000) in innkeeper tax revenue. She
stated that hyperscale data center projects have brought hundreds of young people into the skilled
trades pipeline, and the region has seen ten-point-two percent (10.2%) job growth in construction
since 2020. She noted that the AWS development agreement required wages at one hundred
twenty-five percent (125%) of the county average, and actual wages average forty dollars and
nine cents ($40.09) per hour. She said that Amazon was required to employ four-hundred ( 400)
people and instead has hired one-thousand fifty-six (1 ,056) workers as of July 2026. She noted
that these jobs do not require a bachelor's degree, and AWS offers on-the-job training and tuition
reimbursement opportunities. According to the South Bend Regional Chamber's analysis, AWS
jobs generate approximately five-hundred-million dollars ($500,000,000) in annual economic
impact, and premium wages paid to local electricians result in another one-hundred-ten-million
dollars ($110,000,000) in economic impact.
She addressed water concerns and stated that an analysis by Peerless Midwest determined the safe
yield from the Kankakee aquifer to be forty-four-million (44,000,000) gallons per day. She said
the county capped all withdrawals, including residential, commercial, industrial, and agricultural
use, at twenty-four million (24,000,000) gallons per day. She cited the 2025 Kankakee Basin
Region Water Study, which concluded that future water availability is expected to meet or exceed
water demands in all subbasins, with the A WS data center factored into the analysis.
She stated that A WS 's 2026 tax bill is expected to reach twelve-point-five million dollars
($12,500,000) for its twelve ( 12) buildings currently in operation. The abatement structure
includes a ten (10)-year fifty percent (50%) real property abatement and a thirty-five (35)-year
eighty-five percent (85%) enterprise technology tax abatement. She noted that neither abatement
goes to one-hundred percent (100%). She added that AWS established a one-hundred-forty-three-
million dollar ($143,000,000) Community Enhancement Fund as part of their development
agreement.
She briefly addressed land use, noting that seventy percent (70%) of all agricultural land
conversion in St. Joseph County between 2010 and 2025 was for residential projects, with less
than thirty percent (30%) for industrial use. She stated that data centers represent zero-point-seven
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percent (0.7%) of all land use in the county today.
Finally, she discussed some positive community impacts of data center development. She said
AWS and Microsoft have attracted other businesses to the area, including a large mixed-use
redevelopment project that is currently in the planning stage. She stated that over one-hundred-
million dollars ($100,000,000) from the A WS Community Enhancement Fund has been directed
to water and sewer projects. AWS announced an additional thirty-four million doll;ir
($34,000,000) infrastructure investment, including twenty-seven million dollars ($27,000,000)
for road improvements, four million dollars ($4,000,000) to the fire department for equipment
and training, and three million dollars ($3,000,000) for community projects. A partnership
between AWS and New Prairie High School will provide three-thousand (3,000) students with
opportunities to explore science, technology, engineering, and mathematics (STEM) education.
Other community projects include a new playground for La Casa de Amistad and nutrition
programming with Unity Gardens. She stated that the recent Microsoft open house reflects a shift
toward increased transparency and community engagement from data center developers.
Questions from Council and Committee Members
Committee Chair Niezgodski invited questions from Personnel and Finance Committee Members.
Citizen Member Caz Margenau, Personnel and Finance Committee, asked whether the proposed
five percent (5%) residential rate reduction is a net reduction from current rates or a rollback of
recent increases.
Jill Scicchitano confirmed it is a reduction from current rates, with no plans to recover that
amount. She stated that the reduction is driven by revenue generated from large data center
customers.
Committee Member Rachel Tomas Morgan, Personnel and Finance Committee, asked if the
environmental concerns around data centers, including water use and noise, have been addressed
or are actively being addressed as more projects are built out nationally.
Alyson Herzig replied that cooling technology and generator technology have both improved
significantly. She stated that AWS uses Tier Four ( 4) generators, which are quieter than earlier
models and produce ninety percent (90%) less pollution. She noted that St. Joseph County has
one of the strictest noise ordinances in the country, and neither A WS nor Microsoft were
concerned about meeting its requirements. She said these companies are continuously looking to
improve their water and electricity usage.
Jill Scicchitano added that data center companies are generally open to accepting conditions
within local ordinances, and communities should bring their parameters to the table while still
allowing some flexibility. She noted that each project is unique, and most companies are willing
to work toward a balanced outcome.
Council President Canneth Lee acknowledged community concerns about the impact of data
centers on electricity rates. He noted that recent data center development has resulted m a
proposed rate reduction, and asked Jill Scicchitano to clarify that message for consumers.
EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT
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Jill Scicchitano replied that responsible, managed growth puts downward pressure on rates. She
said the revenue generated by large data center customers allows them to replace aging
infrastructure and improve the entire system at a larger scale and faster pace than would otherwise
be possible, without putting that cost burden on existing customers.
Council President Lee asked about the anticipated lifespan of a data center and whether there is
risJ<_ of a campus sitting vacant.
Alyson Herzig replied that hyperscale data centers hold contracts with companies across the world
for cloud storage, and the demand for storage will continue to grow regardless of changes in
artificial intelligence (AI) development. She said the possibility of a large data center campus
sitting vacant is not realistic based on what she has heard directly from A WS.
Committee Chair White invited questions from Community Investment Committee Members.
Committee Member Sherry Bolden-Simpson, Community Investment Committee, what data
center companies are doing differently now in terms of transparency and communication
compared to earlier projects.
Alyson Herzig compared A WS and Microsoft, noting that Microsoft identified itself within one
(1) month of expressing interest in the property, while the identity of Amazon was not disclosed
at the same early stage, which was consistent with industry practice at the time. She said the data
center industry has since recognized the importance of early disclosure and community
engagement.
Committee Member Bolden-Simpson asked if this resulted from residents standing up to demand
this change.
Alyson Herzig characterized it as a natural evolution of business practices that has occurred across
all industries.
Committee Member Bolden-Simpson asked Eric Horvath for a glossary of acronyms from his
presentation. She asked what information the Council needs in order to make sound decisions
about data centers.
Eric Horvath said each project must be evaluated on its own merits, since the technologies and
resource impacts of each data center are different. He noted that the Amazon project has very little
impact on City's wastewater treatment capacity. He said that based on what they know now, a
future, similar data center would likely not require the same level of permitting that was applied
to Amazon. He said the City has significant water and wastewater capacity, and the data center
industry overall is moving toward more efficient use of resources.
Committee Member Bolden-Simpson asked if the permit information is public.
Eric Horvath stated that the City entered a non-disclosure agreement (NOA) with Amazon
because this was the first (1 st) hyperscale data center permit the City had ever written, and access
to confidential operational information was needed to design the permit appropriately. He said he
does not foresee that being necessary for a similar future facility.
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Citizen Member Tom Gryp, Community Investment Committee, asked what lessons have been
learned from the existing data center projects and what should be done differently for any future
developments.
Alyson Herzig said the projects have resulted in a better understanding of local ordinances and a
commitment to earlier and more comprehensive public communication, and going forward, the
Chamber would publish frequently-asked questions (FAQs) earlier and make information more
accessible from the start. She encouraged vetting data center companies by calling other
communities they have worked with to understand what problems or benefits they brought.
Citizen Member Gryp asked if there is a need for more coordination between the City and county
during the initial negotiation process.
Alyson Herzig replied that based on her experience, Public Works and other relevant City
departments have been actively included in conversations from the beginning.
Committee Vice Chair Ophelia Gooden-Rodgers, Community Investment Committee, asked
where data would be stored if communities refuse to allow data centers.
Jill Scicchitano said there are communities across the country that welcome this type of
development and will continue to actively pursue these projects.
Committee Chair White said the presentations reinforce that utilities are a critical component of
data center development requiring thoughtful planning, collaboration, and long-term investment.
She said she appreciates the emphasis on transparency, open communication, and ensuring
residents are given the information they need and an opportunity to be heard.
Committee Chair Niezgodski noted that all meeting materials will be filed with the Clerk's Office
for public access. She recognized the building trades members present and acknowledged the
significance of the employment these projects represent, while also emphasizing the importance
of informed, careful decision-making. She invited questions from Councilmembers.
Councilmember Dr. Heidi Beidinger expressed concern that the community investments
described, such as STEM education and nonprofit engagement, could be one ( 1 )-time gestures
rather than sustained commitments. She said she is encouraged to hear how companies have
learned and adapted their practices.
Alyson Herzig said it is important to evaluate the culture and long-term community commitment
of the company itself. She stated that Amazon its general contractor Clayco have both
demonstrated sustained community engagement beyond the initial project. She added that the
Chamber helps connect companies with local nonprofits and community organizations.
Councilmember Dr. Beidinger noted that that Amazon and Microsoft are among the world's
wealthiest companies. She said she would like to see the sam'e level of investment and engagement
repeated every year.
Councilmember Dr. Oliver Davis expressed concern that Councilmembers and the public learned
about the City's involvement with A WS wastewater through the media. He expressed frustration
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that Eric Horvath did not give his presentation at the August 20 Utilities Committee meeting,
noting that this resulted in the perception that it was a one (1)-sided meeting.
Eric Horvath confirmed that he had a prior personal commitment on the night of the Utilities
Committee meeting. He clarified that he and Councilmember Bolden-Simpson discussed this
scheduling conflict prior to the meeting, and he suggested moving the date. He said he was
advised that the August 20 date had already been finalized, and no alternative date was offered.
He explained that he felt it was important for him to present the information rather than sending
a deputy, since he is the signatory on the NOA. He agreed that it would have been better if he
could have presented at the initial meeting. He noted that wastewater permits and compliance
matters are discussed publicly at Board of Public Works meetings, and it has not been standard
practice to independently report these proceedings to the Council.
Councilmember Dr. Davis asked how City administration prepared to inform residents about the
AWS wastewater permit in anticipation of the South Bend Tribune article on the issue.
Eric Horvath could not recall the specific article in question.
Committee Chair Niezgodski encouraged Councilmember Dr. Davis to follow up with Eric
Horvath after the meeting to clarify his questions and resolve any misunderstandings.
Committee Chair White added that any additional questions from Council and Committee
Members can be sent to the Clerk's Office.
Public Comment
Committee Chair Niezgodski opened the public hearing.
Joseph Mayer, 1166 Altgeld Street, South Bend, IN 46614, spoke on behalf of the Bricklayers
Union. He acknowledged public concern about data centers crashing the electric grid and asked
Jill Scicchitano to address this concern.
Jill Scicchitano replied that grid reliability is a common concern, and every large load request
involves a comprehensive engineering analysis with load studies. She said they work with NERC,
FERC, the IURC, and P JM to ensure that reliability is maintained with every plan of service.
James Gardner, 100 l North Michigan Street, Lakeville, IN 46536, spoke on behalf of the
Operating Engineers Union. He thanked the Council for bringing both sides of the discussion to
the public. He spoke about the importance of data infrastructure in the digital age and stated that
every project is unique and should be evaluated on its own merits.
Murray Miller, 23698 West Western Avenue, South Bend, IN 46619, spoke on behalf of the
Laborers Union and St. Joseph Valley Building Trades. He noted that the trades brought in
approximately two-hundred-fifty (250) new apprentices in the past (2) years due to data center
projects. He spoke about their ongoing participation in community service projects. He
emphasized their diverse membership in response to a comment from the August 20 meeting.
Jessica Michaels, 18457 Kem Road, South Bend, IN 46614, expressed concern about the lack of
discussion about water usage under different climate projections. She also noted that most water
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usage associated with data centers comes from energy production, and the amount of electricity
used by these facilities and the water required to generate it was not discussed.
Andre Stoner, 628 Cushing Street, South Bend, IN 46616, spoke as a member of We Make
Indiana. He said transparency around new data center proposals and the impact of those that are
already here are separate issues. He expressed concern about the scale of these projects relative
to their community contributions. He spoke about A WS 's projected electricity consumption, the
enforcement of permit requirements, the societal impact of AI, and state sales tax exemptions.
Sue Kesim, 4022 Kennedy Drive, South Bend, IN 46614, asked about per-and polyfluoroalkyl
substance (PFAS) removal in AWS wastewater. She asked if monthly average reporting fails to
capture short-term peaks in wastewater pollutant concentrations. She expressed concern about
construction dewatering practices and noted that edge computing may reduce future demand for
centralized data center capacity.
Eric Horvath replied that the City is implementing PFAS removal technologies at the North
Station and Pinhook water treatment plants, but PFAS removal is not currently regulated in
wastewater treatment. He clarified that the data presented reflects grab samples of actual pollutant
concentrations, and that results frequently came back as non-detects, which were excluded to
avoid artificially lowering the numbers.
Araquel Bloss, 2513 Erskine Boulevard, South Bend, IN 46614, acknowledged the aquifer 's safe
yield as cited by Alyson Herzig. She expressed concern that additional construction dewatering
withdrawals approved by the St. Joseph County Drainage Board exceed the safe yield. She noted
a new hyperscale data in Hobart, Indiana, on the same aquifer system. She referenced an
unanswered request for public records and asked about the risk of combined sewer overflows.
Eric Horvath stated that public records requests go through the City's legal department. He
confirmed that the A WS facility is serviced by a dedicated sanitary-only sewer that runs directly
to the treatment plant and does not interact with the combined sewer system at any point.
Steve Francis, Juday Lake Drive, South Bend, IN 46635, mentioned hearing about the City's
negotiations with data centers through the press. He encouraged City officials to commit to
transparency, hearing public input, and enacting ordinances with protections for future data center
development. He asked if AEP supports reopening the Rockport coal plant and asked how the
proposed five percent (5%) rate reduction compares to the increases over the past five (5) years.
Jorden Giger, 302 South Falcon Street, South Bend, IN 46619, asked why there was no Council
involvement in the AWS wastewater agreement and why an NOA was signed. He noted the water
demand associated with nuclear power generation and asked about AEP's plans to expand their
nuclear portfolio.
Ed Cataldo, 2105 Wilson Avenue, South Bend, [N 46617, echoed other residents' transparency
concerns. He said he is against future data center development until questions about long-term
risk mitigation, environmental footprint,job sustainability, and community commitments are fully
addressed.
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Committee Chair Niezgodski closed the public hearing.
Jill Scicchitano acknowledged the wide range of questions and asked for the opportunity to
provide a written response.
City Clerk Bianca Tirado confirmed that her team would gather all outstanding questions and
distribute them to the presenters for written follow-up.
With no further business, Committee Chair Sheila Niezgodski adjourned the Joint Committee
meeting at 8:31 P.M.
Respectfully Submitted,
Karen L. White, Committee Chair -Community Investment Committee
Sheila Niezgodski, Committee Chair -Personnel and Finance Committee
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