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HomeMy WebLinkAboutMinutes - 2/28/2012 - Community Development Committee SPECIAL � COMMUNITY DEVELOPMENT COMMITTEE MEETING Tuesday, February 28, 2012 Aldermen's Conference Room, 7:00 p.m. In Attendance: Committee Members: Chairman Alderman Condon, Alderman Peterson and Alderman Santi. Absent: None. Also in Attendance: Deputy City Administrator Martin and City Clerk Jones. Also in Attendance: Kay Bates, McHenry Area Chamber of Commerce Stacey Kubis, lst Vice Chairman, McHenry Area Chamber of Commerce Jane Manny, McHenry Area Chamber of Commerce Kathy Pengilly Todd Marler Kalan Kircher, SweetPerk, Inc. Chairman Alderman Condon called the meeting to order at 7:07 p.m. Alderman Santi arrived at 7:07 p.m. Alderman Peterson arrived at 7:10 p.m. L' Continued Discussion Re�arding Economic Develonment Partnershin with McHenry Area Chamber of Commerce for the Creation of a Smartuhone App to Promote Local Business —SweetPerk Chairman Aldertnan Condon announced she appreciated everyone's attendance and stated she is excited about this potential project. She mentioned that Mr. Kircher needs to be on the train out of Crystal Lake to Chicago at 9:00 p.m. Deputy City Administrator Martin reiterated to the Committee that at the previous Special Meeting of the Community Development Committee, the members of the Committee and representatives from the McHenry Area Chamber of Commerce ("MACC") discussed engaging the service of SweetPerk to create a customized smart phone Application. The SweetPerk model would allow stores to create perks and/or incentives to attract customers using a uniquely designed "McHenry Shop Local App" that would be accessed using an iPhone 3G or Android 2.2 phone with a camera. The App would be free to the residents/customers to choose a McHenry business and scan their QR(quick-response) Code in at the time of purchase. Deputy City Administrator Martin noted that at the previous Special Meeting several questions about the program were raised. Staff was directed to: • contact the economic development directors, current users of the App, in the communities of Lake Forest and Naperville; • obtain a copy of the SweetPerk, Inc. agreement �... Special Comniunity Development Committee Meeting February 28, :'.012 Page 2 � Deputy City Administratar Martin shared the overall positive responses he received from the Economic Development Director for the City of Lake Forest. He indicated that the Director for the Downtov�n Naperville Association was out of town and he was unable to obtain any information. Deputy City .�dministrator Martin informed the Committee that Ms. Bates had contacted Mr. Kircher to o�tain information and clarification regarding some of the questions posed by the Committee. r�Ir. Kircher's responses to the inquiry were: • Website: There is no additional fee. A SweetPerk administrator will control the co�rtent of the App. This is included with the $30 per month fee. • Once the contract is signed, rates cannot change without an amendment to the contract, which requires the consent of both parties. • If the business does not pay their bill at the end of the month, the business will be notified several times before their listings are removed. SweetPerk will remove their perk after 30 days. • There is no minimum requirement of inembers before development of the App can begin. SweetPerk does recommend at least 25 listings to ensure there is sufficient content on the site to attract shoppers. • Individual businesses do not sign a contract with SweetPerk. • McHenry may include businesses outside the City, but any changes to the database or App would require an additional development fee. � Staff is seeking direction from the Committee regarding the following: • Consensus to move forward with the proposal and level of City financial participation and partnership structure with the MACC (logistics moving forward, maintenance of the website, businesses to include); • Direction to Staff and the City Attorney regarding review of the proposed Service Agreement and preparation of a formal written agreement with MACC solidifying the City's financial participation and partnership structure; and • Direction from the Committee to send the proposal to full Council for consideration. Chairman Alderman Condon requested clarification regarding the Agreement. She was assured that the Agreement/Contract would be a document that is co-signed between the City of McHenry and the MACC together with SweetPerk, Inc. Mr. Kircher provided the Committee and those in attendance with a brief presentation. He explained that SweetPerk builds mobile Apps for commerce purposes. The company began as a school project at Northwestern. He noted SweetPerk has just launched their sixth App in six months and currently has 17,000 users. Mr. Kircher stated the advantages of SweetPerk to the community are: �.• Special Comrnunity Development Committee Meeting February 28, Z012 Page 3 � • Trust local brand; • Hyper-local; • Comniunity run; • Financ;ially reasonable; and • Dynarnic content. He noted that further advantages are that all diagnostics are available to the subscriber in "real time" on the site and can be easily located, at no charge, and downloaded to an Excel spreadsheet. He presented those in attendance with a card that Downtown Evanston uses (copy attached) called "Passport to Downtown Evanston," which has the QR Code on the back that can be downloaded. Mr. Kircher explained that while SweetPerk does not do any print work and did not provide these cards, Downtown Evanston has found them very helpful as handouts to promote the App. Responding t�� an inquiry from Alderman Peterson, Mr. Kircher stated it is not necessary for a business to have a website in order to participate in the perk program. Responding to an inquiry from Alderman Santi, Mr. Kircher explained the simple process of adding perks. Mr. Kircher stated that SweetPerk plans to add Windows and Blackberry to the program within � the next couple of months. Ms. Bates indicated concerns with the Agreement at Page 15, Section 6. She noted that if the $7,500 is paid up front there appears to be no financial liability on the part of the company. Ms. Bates inquired about the possibility of recoupment of a portion of the $7,500 paid up front should SweetPerk cease to exist. Mr. Kircher stated that should SweetPerk cease doing business, SweetPerk would assist any of its customers with a move to another host. Ms. Bates stated she just wanted everyone to be aware there could be additional costs should SweetPerk, as a company, cease to function. Mr. Kircher announced to those in attendance that the entire Agreement is up for discussion. Chairman Alderman Condon opined she is comfortable with what has been presented. Alderman Santi stated he would like to see the start-up fee more balanced between the City and the MACC. Ms. Bates stated that she is limited as to the amount she can commit to the project and should the City decide not to incur the $7,500 start-up fee she would be required to go back to her Board to see if some agreement could be reached. Ms. Manny opined she believes in order to promote the App and encourage businesses to participate, the weekly maintenance of the site will be in excess of the one to two hours per week anticipated. � Special Community Development Committee Meeting February 28, 2012 Page 4 � Aldermait Peterson opined he would like a proposal presented to Council prior to expending any money on a formal contract being drawn up by the City Attorneys' office. Alderman Santi concurred with Alderman Peterson, but stated he is still uncomfortable with the disparity between the contribution being requested from the City and the amount being contributed by the MACC. Chairman Alderman Condon noted that with the man hours required for weekly administration and maintenance of the site, over the long run, the MACC will likely be contributing more than the $7,500 start-up fee. A brief discussion ensued regarding the necessity of presentation of a proposal as opposed to presentation of the Agreement to the Council. Chairman Alderman Condon requested a motion regarding direction to Staff. Motion by Peterson, seconded by Condon to direct Staff to prepare a proposal for presentation to full Council for consensus, prior to incurring any costs to draw up a contract, regarding the City paying the $7,500 start-up fee and the McHenry Area Chamber of Commerce paying the$30 monthly fee together with weekly administration of the site Aye: Condon, Peterson Nay: Santi. Absent: None. Motion carried. Deputy City Administrator Martin stated he will prepare two agreements to present to `.- Council. One between the City and the MACC and one between SweetPerks, Inc. and the MACC. Mr. Kircher stated he would be pleased to make himself available to Council for another presentation. Adi ournment Motion by Santi, seconded by Peterson to adjourn the meeting at 8:31 p.m. Aye: Condon, Santi. Peterson Nay: None. Absent: None. Motion carried. Respectfully submitted, � � ����� Geri Condon, Chairman � . � D1lO'NO1S NV�3NMOlNM04 � � � � . � � � } ,�'L7 . _ � � • � � �,. L■7 0i -, _ . . . . . � � . . . . . . . . . . . , -� , .