HomeMy WebLinkAboutMinutes - 5/2/2012 - Community Development Committee , � ��`i.\�' . l\���.
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To: Chairm�n Alderman Condon �j �F
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Fm: City Cl�,rk Jones ��'�
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Date: March?, 2012 �- 1 q�.�-�
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Subj: Commtinity Development Committee Minutes ,�,�►` �L��
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Enclosed is a copy of the February 28, 2012 Special Community Development Committee
Minutes. Please review, comment/correct or sign and return to me at your earliest convenience.
Thank you.
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`— SPECIAL
COMMUNITY DEVELOPMENT COMMITTEE MEETING
Tuesday,February 28, 2012
Aldermen's Conference Room,7:00 p.m.
In Attenctance: 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.
Continued Discussion Regarding Economic Development Partnershin with McHenry
Area Chamber of Commerce for the Creation of a Smartphone App to Promote
Local Business—SweetPerk
Chairman Alderman 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 Cc�mmunity Development Committee Meeting
February�:8, 2012
� Page 2
Deputy City Administrator 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 Dc�wntown Naperville Association was out of town and he was unable to obtain any
informatic�n.
Deputy City Administrator Martin informed the Committee that Ms. Bates had contacted
Mr. Kircher to obtain information and clarification regarding some of the questions posed by
the Comrriittee. Mr. Kircher's responses to the inquiry were:
• Website: There is no additional fee. A SweetPerk administrator will
control the content 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 forwaxd 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 betwe�n 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.
Special C��mmunity Development Committee Meeting
February:'.8, 2012
� Page 3 .
Mr. Kircher stated the advantages of SweetPerk to the community are:
• Trust local brand;
• H��per-local;
• Cc�mmunity run;
• Fi:iancially reasonable; and
• D�mamic 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 att�iched) 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 to 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 tlie simple process of
�, adding perks.
Mr. Kircher stated that SweetPerk plans ta 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 �VIACC. 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 C�>mmunity Development Committee Meeting
February?8, 2012
� Page 4
Alderman 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
contribute�d by the MACC. Chairman Alderman Condon noted that with the man hours
required Eor weekly administration and maintenance of the site, over the long run, the
MACC v��ill 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 AgreE ment 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.
Adiournment
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.
Respectiully submitted,
Geri Condon, Chairman
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