Consideration and Ratification of Contract: Ratification of the $33,836 Amendment to the Order Form for the Contract with Placer Labs, Inc. for Placer.ai data analytics software bringing the total contract amount to $129,240.
 

1. Ratify the $33,836 Amendment to the Order Form for the Contract with Placer Labs, Inc. for Placer.ai data analytics software bringing the total contract amount to $129,240; and 
2. Authorize the City Manager to execute all necessary documents.

The City of Flagstaff Economic Development Office procured a contract with Placer Labs, Inc. in FY22, after receiving quotes from three vendors: Buxton Analytics, Placer Labs, Inc. and Gazelle.AI. Placer Labs, Inc., and the Placer.ai data analytics service was selected. The initial contract amount was $19,500. Economic Development has renewed this contract each year since FY22. Upon receiving the most recent $33,836 Amendment to the Order Form, the cumulative amount of the contract is now $129,240; which is over the $100,000 City Charter threshold for purchases requiring City Council approval. For this reason, staff brought this $33,836 Amendment to the Order Form to the City Council for ratification of the contract. 

Although the price of the service has increased over the term, Placer Labs, Inc. is still found to be very cost-effective. Placer Labs, Inc. delivers demographic information based upon GPS information from cell phones and other business analytics to demonstrate through the Experian-based psychographic Mosaic who is spending how much time in any given location. This software remains a vital tool in supporting business attraction, retention and expansion, public event attendance for staffing Fire, Police, Emergency Management, and reporting to community partners and stakeholders.

Project Name: Contract with Placer Labs, Inc. - Economic Development Retail Analytics
Cost: $33,836.00
Account Number Budgeted: 052-07-213-0830-4-4206
FY Budgeted Amount: $51,000
Grant Funded:No
Funding Source: BBB

No. Previous contracts did not meet procurement requirements for City Council approval.

1. Ratify the $33,836 Amendment to the Order Form for the Contract with Placer Labs, Inc. for Placer.ai data analytics software bringing the total contract amount to $129,240; or
2. Do not approve the ratification and provide staff direction.

High-performing governance -- The Economic Development Program works with community and internal partners daily, much of what is accomplished with the analytics supports local businesses, entrepreneurs, as well as other community entities and regional partners.
Robust and resilient economy — the analytics tools enable us to provide information to potential businesses for attraction purposes as well as existing businesses supporting expansion.
Livable community -- Economic Development creates revenue through BBB taxes which provides residents with a quality of life through programming provided by other city divisions and sections that receive BBB funds for their budget.

Policy ED.1.3 Use economic best practices to promote quality and fiscally sound projects.
Policy ED.2.1 As industry sectors emerge and grow, encourage regional workforce development partners to take a proactive role by preparing the local labor force for current and future workforce needs.
Policy ED.3.5 Advocate the economic sustainability and growth of businesses with opportunities for transitional commercial space, leased space, and property ownership.

DD-4: Placer.AI can inform transit planning by showing when and where activity peaks, helping optimize transit routes and schedules. Identifying gaps between housing, employment centers, and services. Supporting data-driven decisions to increase transit ridership.

Preserve1: Placer.AI analytics help identify underutilized buildings, validate demand for new uses, reduce redevelopment risk, and measure post-project impacts—making adaptive reuse a data-driven, lower-risk strategy for housing, economic development, and sustainability. Placer.AI supports Flagstaff’s Carbon Neutrality Plan by providing real-world mobility and activity data that helps provide information to reduce vehicle miles traveled.

Economic Devleopment Strategic Plan
Pillar 3, Strategy 2 Establish Sustainable Economic Development Metrics That Support Municipal Climate Action Targets
Pillar 3, Strategy 3 Attract and Expand Businesses That Align With City Criteria for Sustainable Development
Pillar 3, Strategy 4 Identify Opportunities for Infrastructure Expansion
Pillar 3, Strategy 5 Enhance Business Supports That Promote Sustainable Economic Development
Pillar 4, Strategy 2 Strengthen Community Partnerships
Pillar 4, Strategy 3 Formalize Relationships With Business Support Organizations