Background:
In July 2019, the City applied for a Public Transit Service Development Grant administered by the Florida Department of Transportation (FDOT) to support the launch of a new on-demand electric vehicle shuttle program within the Western Sunrise Business and Entertainment District. In January 2020, the City was awarded three years of transit operating funds totaling $885,000, requiring a 50%. The grant was approved by the City Commission on April 13, 2021, via Resolution No. 21-31.
Following execution of the Public Transportation Grant Agreement, staff developed a Request for Proposals for an operator and, on March 22, 2022, awarded the contract to Beefree, LLC d/b/a Freebee for On-Demand Transportation Services. Service began in September 2022 with four Tesla Model X vehicles that can accommodate up to six passengers each. The program provides first- and last-mile connectivity to other forms of mass transit and offers local transportation between hotels, businesses, restaurants, residences, and shopping destinations. These services help reduce vehicle trips, alleviate local roadway congestion, and improve parking availability. Similar to rideshare platforms such as Uber and Lyft, riders within the Western Sunrise Business and Entertainment District can request a free ride using the mobile Freebee app.
The Sunrise Freebee program has been a transformative mobility option for the City. In its first year, Sunrise was recognized as the fastest-growing on-demand transportation service in Florida, with more than 45,000 passengers. Ridership has continued to increase, with more than 65,000 passengers served in 2024 and 2025. User feedback has been overwhelmingly positive, with 99% of riders reporting satisfaction with their experience. In addition to improving mobility, the Program supports local businesses by increasing customer access and enhancing economic activity within the District.
FDOT grant funding ended on December 31, 2025 and the FY 2025/2026 Adopted Budget provided funding to support the Program through September 30, 2026. To continue this successful transportation service, the City must identify a sustainable long-term funding source. On November 12, 2025, City Commission approved a Resolution to use the uniform method of collecting non-ad valorem transportation services beginning in Fiscal Year 2027 (tax year 2026). The methodology and amount of this new non-ad valorem special assessment will be determined by a consultant.
On December 9, 2025, the City Commission approved an agreement with Raftelis Financial Consultants, Inc. ("Raftelis") to develop a special assessment program to recover all or a portion of the Ridesharing Program’s operating costs through non-ad valorem assessments levied on property owners within the District. Raftelis is developing an assessment methodology compliant with Florida statutory and case law requirements and is preparing an assessment roll, which will be presented to the City Commission in July 2026.
Under Florida law, a non-ad valorem special assessment must satisfy two requirements: (1) the assessed properties must receive a special benefit from the service that is distinct from the general benefit conferred upon the public at large; and (2) the assessment must be reasonably apportioned among the benefited properties. The original scope of work addressed the apportionment methodology, including identification of the assessment area, property classification, and development of an equitable cost distribution framework.
During the course of the study, outside legal counsel advised that the assessment Program would benefit from an independent economic analysis demonstrating that the Freebee service provides a quantifiable economic benefit to properties within the assessment District, including an opinion on the service's impact upon property values. This analysis would strengthen the evidentiary record supporting the special benefit finding and provide additional legal defensibility should the assessment be challenged.
Raftelis has submitted a proposal to perform an Economic Impact Analysis under a lump-sum fee of $15,000. The scope of work includes:
- Quantification and summary of historical ridership activity, including monthly trends, time of day, trip length, number of passengers, and trip origin/destination locations.
- Analysis of potential consumer spending impacts attributable to the ride sharing program.
- Secondary research on trade areas, consumer spending patterns, and the relationship between transportation services, spending activity, and property values.
- A professional opinion on the magnitude of potential benefits relative to impacts upon property value.
- A brief technical memorandum summarizing the analysis and conclusions.
Staff recommends the City Commission approve Amendment No. 1 to the Professional Services Agreement with Raftelis Financial Consultants, Inc. in the amount of $15,000, increasing the total not-to-exceed contract amount from $45,078 to $60,078, for the completion of an Economic Impact Analysis of the City's Freebee Ride Sharing Program. The full cost of the Economic Impact Analysis can also be recovered as part of the Special Assessment.