A.R.S. tit. 40 ch. 6 — Arizona Revised Statutes Title 40 Chapter 6 — Urban Mass Transportation Systems

40-1111. Definitions In articles 2, 3 and 4, unless the context otherwise requires: 1. "Authority" means a metropolitan public transit authority organized under this article. 2. "Board" means the board of directors of a metropolitan public transit authority. 3. "Director" means a member of the board of directors. 4. "Metropolitan public transit authority" means a political subdivision organized solely to provide necessary plants, equipment, work instrumentalities, and real and personal property and rights thereto, which are used or useful for the transportation of passengers for hire on scheduled routes. 5. "Municipality" means any incorporated city or town. 6. "Operating area" means the area within which the authority provides transportation service, the boundaries of which shall be established in accordance with this article. 7. "Public agency" includes the state of Arizona and any county, city, town, district or other public agency or entity created under the laws of this state or the federal government. 8. "Public transit" means the local transportation of passengers and their incidental baggage on scheduled routes by means of a conveyance on an individual passenger fare-paying basis, and excluding transportation by a sightseeing bus, taxi or any vehicle not operated on a scheduled route basis. Nothing in this paragraph shall be construed to prohibit the authority from providing school bus services for transportation of pupils between their place of residence and school. 40-1112. Qualifying bodies which may form authority; purposes A. A metropolitan public transit authority may be formed by any of the following: 1. The governing body of a municipality, the population of which is not less than fifty-one per cent of the proposed area of the authority. 2. The governing bodies of more than one municipality acting jointly in a county, the combined population of which are not less than fifty-one per cent of the proposed area of the authority. 3. The board of supervisors of a county if the population of the unincorporated areas of such county within the proposed authority area and the population of any one or more contracting municipalities when combined is not less than fifty-one per cent of the population of the county. B. Such an authority may acquire, own and operate a metropolitan public transit system including all appurtenances thereof in the area of the authority. 40-1113. Procedures required to organize an authority A. A metropolitan public transit authority shall be organized and incorporated in the following manner: 1. The governing body of a municipality or county or the governing bodies of more than one municipality or county may pass an ordinance or ordinances declaring that the public convenience and necessity require the incorporation of a metropolitan public transit authority. Such ordinance shall state that it is proposed to incorporate the authority under the provisions of this article and shall include the name of the municipalities or counties, the area or portion of whose area is to be included within the operating area of the authority and a description of the unincorporated area of the county to be included within operating area of the authority. The ordinance shall have no force and effect unless the proposed contracting municipalities and counties described in such ordinance and qualified to participate shall have approved participation by ordinance or resolution similarly worded. 2. The articles of incorporation of a metropolitan public transit authority shall set forth: (a) The name or names of the originating municipalities or counties. (b) The name of the metropolitan public transit authority and the area to be served by such authority. (c) A statement that permission to organize the authority has been granted by resolution duly adopted by the governing body of the initiating municipalities or counties the area or a portion of the area of which is to be included and the date of adoption of such resolution. B. The articles of incorporation of an authority, any deeds or other documents by which properties are conveyed to the authority, and any mortgages executed by the authority shall be filed for record with the secretary of state. 40-1114. Authority subject to law and regulations; nonprofit status A. An authority shall be subject, in the operation of its transportation facilities and equipment, to the laws and regulations of the state of Arizona and of the applicable municipalities relating to traffic and operation of vehicles on the streets and highways of the state and of the municipalities. B. The corporation shall be a nonprofit enterprise, and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm or corporation. 40-1115. Inclusion of additional areas Additional areas may be included within the boundaries of the authority and become a part of such authority. If a petition for the inclusion of additional territory signed by at least fifty-one per cent of the qualified electors who reside within the limits of the additional territory is filed with the authority, such additional territory may be included in the authority by resolution of the board. Whenever any area shall be annexed or consolidated with a municipality which is a part of and otherwise completely within the boundaries of the authority organized as provided by this article, such annexed or consolidated area shall, by virtue of its annexation or consolidation to such municipality, become and be a part of the authority. 40-1116. Judicial review of action of municipality or county A party aggrieved by the act of a municipality or county in forming a metropolitan transit authority may, not later than twenty days after passage of the ordinance to incorporate the authority, bring an action in superior court in the county in which the authority is formed to set aside the action of the municipality or county. 40-1117. Condemnation privilege The authority may use the provisions of law relating to eminent domain. No provision for eminent domain given to the authority by this section or by any provision of law may be exercised against property or any franchise of a common carrier of passengers when a territory is being adequately served by such common carrier of passengers under authority of law. Such condemnation proceedings shall only be applicable to property located within the area of the authority. 40-1118. Exemption from taxation A. The title to all property acquired under the provisions of this article shall immediately and by operation of law vest in such transit authority, in its corporate name, and is dedicated and set apart for the uses and purposes set forth in this article, and shall be exempt from all taxation, including sales, gross receipts, motor vehicle registration fees, and any use taxes, provided the authority shall not be authorized to acquire title to any property other than property used for transportation purposes or directly connected therewith. B. Bonds issued pursuant to article 4 of this chapter, their transfer and income therefrom shall at all times be free from taxation within the state. 40-1121. Board of directors of authority; qualifications; appointment; terms; oath; meetings; compensation A. All powers, privileges and duties vested in a metropolitan public transit authority shall be administered by a board of directors consisting of at least five and not more than eleven members. Each member shall be a resident of the area covered by the authority. The initial board shall consist of five members as appointed by the governing body or bodies of the originating municipalities or counties. If the authority is organized by more than one municipality or county the initial board shall be appointed by the governing bodies of such municipalities or counties with each such municipality or county having five votes for such selections. Such vote may be cast by a municipality or county for one member or may be divided among any number of prospective appointees, not exceeding five. The governing bodies of any such municipalities or counties in making such appointments shall provide for equal representation on a population basis to all areas within the operating area except each municipality or county the area or a portion of the area of which is included within the authority shall have at least one resident as a member of the board. The initial board shall serve until January 1 of the year succeeding the next general election of the state. The term of office of all elected boards of directors shall be four years. Each four years an election shall be held for the purpose of voting for members of the board and the election shall be held at such time and conducted in such manner as prescribed by the governing body or bodies of the originating municipalities or counties. Appointment to fill a vacancy caused other than by expiration of term shall be made by resolution of the board, upon nomination of the governing body or bodies of the municipalities or counties entitled to representation on the board. B. At least twelve weeks preceding the date of the next state general election the governing body or bodies of the originating municipalities or counties shall call an election to be held for the succeeding board of directors. The call for election shall specify the number of directors to be voted for and what areas each is to represent. The governing body or bodies calling the election shall provide for equal representation on a population basis to all areas within the operating area except each municipality, county, or portion thereof if all the municipality or county is not within the authority, shall have at least one resident as a member of the board. The governing body or bodies calling the election shall prescribe the manner in which candidates of the board of directors shall qualify in order to have their names printed on the ballots. C. The governing body or bodies calling the election shall set the day for the election to be held, which day shall be not less than six weeks after the call of the election. Notice of the election must be published once in a daily or weekly newspaper of general circulation within the boundaries of the authority. The election shall be held as nearly as possible in conformity with the general election law. The governing body or bodies shall meet within thirty days following the election to canvass and to certify the results of the election. Only qualified electors residing within the boundaries of the authority on the date of the election shall be entitled to vote at such election. Electors may only vote for qualified candidates to represent the area in which such electors reside. D. The governing body or bodies calling the election may provide that the election shall be held on the same date as the next state general election. It may require the board of supervisors of the county or counties in which the authority is located to conduct the election for the board of directors in conjunction with its holding of the next state general election. The election shall be held at the same polling places and conducted by the same election officials as at the state general election, but separate ballots shall be used and those offering to vote shall sign an affidavit relating to their qualification to vote in the election for the board of directors. In the event the county sustains any additional expense above the normal expenditures incurred in connection with the general election the authority shall reimburse the county for such additional expenditures. E. Each director, before entering upon the duties of his office, shall take the oath of office, a copy of which shall be filed with the secretary of state and a copy thereof with the secretary of the authority. F. The initial meeting of a board shall be held at the time and place fixed by the governing body or bodies creating the authority, and at this first meeting shall elect from among its membership a president, a vice-president and a secretary, each of whom shall serve in such capacity for a period of two years. G. A majority of all members of the board shall constitute a quorum for the transaction of business. H. Directors shall each receive twenty-five dollars a day for attendance at board meetings, but not to exceed fifty dollars in one calendar month, and shall be reimbursed for travel to and from such meetings at the rate of ten cents per mile. 40-1122. Powers and duties of the board A. The board of directors shall: 1. Be the governing body of the authority and, in compliance with the provisions of this article, shall determine all questions of policy of the authority. 2. Fix the time and place at which its regular meeting shall be held, and shall provide for the calling and holding of special meetings. 3. Determine what transportation facilities should be acquired or constructed to provide the standards of public service determined by it to be necessary and reasonably supportable. 4. Fix the location of the principal place of business of the authority and the location of all offices and departments. 5. Supervise and regulate every transportation facility owned and operated by the authority, including the fixing of routes, rates, fares, rentals, charges and classifications thereof, and the making and enforcement of rules, regulations, contracts, practices, and schedules for or in connection with any transportation facility owned or controlled by the authority. The board shall establish such policies, insofar as practical, so as to result in revenue which will make the authority self-supporting. 6. Prescribe by resolution a system of business administration and create any and all necessary offices and positions of employment, and select and employ, and establish and reestablish, the powers, duties and compensation of all officers and employees, prescribe the periods, terms and conditions of their employment, and require and fix the amount of all official bonds necessary for the protection of funds and property of the authority. 7. Cause a semiannual audit to be made on all books and accounts of the authority by an independent certified public accountant. 8. As soon as practical after the close of each fiscal year, submit to the chief administrative officer and the governing body of any city and any county whose area or a portion thereof is within the authority a financial report showing the result of operations during the preceding fiscal year and the financial status of the authority on the final day thereof. Copies of the report shall be supplied to the general public upon request and shall be published in the newspaper having the largest circulation in the authority. B. The board of directors may: 1. Contract and take all actions and proceedings and do any and all other things necessary to carry out the purposes of this article. 2. Contract for or employ any professional services required by the authority or for the performance of work or services for the authority, which, in the opinion of the board, cannot satisfactorily be performed by the officers or the employees of the authority. 3. Adopt bylaws to govern the operation of the authority. 4. By resolution, delegate and redelegate to officers of the authority power to employ clerical, legal and engineering assistance and labor, and, under such conditions and restrictions as shall be fixed by the directors, power to bind the authority by contract. 5. Provide by resolution, under such terms and conditions as it sees fit, for the payment of demands against the authority without prior specific approval thereof by the board if the demand is for a purpose for which an expenditure has been previously approved by the board in an amount no greater than the amount so authorized, and if the demand is approved by the general manager or such other officer or deputy as the board may prescribe. 6. On behalf of the authority borrow money and issue bonds. 40-1123. Officers and employees of authority A. Officers of an authority may consist of the board of directors, and a general manager, a general counsel, a treasurer and a comptroller, as may be appointed by the board of directors to serve at the pleasure of the board. All other officers, deputies and employees shall be appointed by the board or its designee. B. The oath of office of all officers appointed by the board of directors or by the general manager of the authority shall be taken, subscribed, and filed with the secretary of the authority any time after the officer has notice of his appointment but not later than fifteen days after the commencement of his term of office. No other filing shall be required. C. The general manager shall serve full time. D. The general counsel shall be a person admitted to practice law in the state of Arizona and shall have been engaged in the practice of law for not less than seven years next preceding his appointment. E. The person appointed comptroller shall have been actively engaged in the practice of accounting for not less than three years next preceding his appointment. F. The treasurer shall be the custodian of the funds of the authority and shall make payments only upon warrants duly and regularly signed by the president or vice president of the board or other person authorized by the board so to do, and by the secretary or general manager. The treasurer shall keep an account of all receipts and disbursements. The treasurer shall furnish, at the expense of the originating political subdivision or subdivisions, a bond in the amount of fifty thousand dollars. The bond shall be conditioned upon the proper discharge of the powers and duties by the treasurer in accordance with the provisions of this article. The bond shall be approved by the attorney general and the board of directors of the authority and kept on file in the office of the board of directors. 40-1124. General powers of an authority A metropolitan public transit authority may: 1. Sue and be sued. 2. Adopt a corporate seal. 3. Take by grant, purchase, bequest, devise, or lease, and hold, enjoy, lease, sell, encumber, or otherwise dispose of real property or personal property of every kind within the purview of authority. 4. Make contracts and enter into stipulations of any nature whatsoever, including without limitations the generality of such contracts and stipulations to indemnify and save harmless, and to do all acts necessary and convenient for the full exercise of the powers granted in this article and may contract with any department or agency of the United States or the state of Arizona or with any public agency or private person, firm or corporation upon such terms and conditions as the board of directors may determine in the best interests of the authority. 5. Insure against any accident to or destruction of the system or any part thereof, and against loss of revenues from any cause whatsoever against public liability or property damage, or both, or against all other types of events, acts or omissions. 6. Provide a public transportation system using the roadways of the areas served by the authority for the transportation of passengers and their incidental baggage. 7. Acquire, contract for, lease, construct, own, operate, control or use rights of way, facilities and works for monorails, bus lines, stations, platforms, yards, terminals, parking lots and any and all other facilities necessary or convenient for public transportation service within or partly within the boundaries of the authority, whether underground, upon, or above the ground, and under, upon, or over public streets, highways, bridges, viaducts, or other public ways or waterways, together with all physical structures necessary or convenient for access for persons or vehicles thereto, and to acquire or contract for any interest in or rights to the use or joint use with a municipality or another authority of any or all of the foregoing, provided that installations in streets of a municipality or county or on the state highways or freeways shall be subject to approval of the state highway commission or governing body of the municipality or county. It shall be presumed that the use of the streets, highways, freeways and other public places by the authority for any purposes permitted under this article constitutes no greater burden on the adjoining properties than the uses existing as of the effective date of this article. If the facilities, other than state highways or freeways including streets, highways, lines, sewers, water mains, storm drains, poles, communications wires, of another public agency, of the state, or of a private owner must necessarily be relocated, replaced, or altered in order for the authority to construct or operate its system, or if the construction or operation by the authority of its system makes necessary the relocation, replacement or alteration of any such facilities of another public agency, of the state, or of a private owner in order to maintain the functioning of such facilities at their previous level of service, such facilities shall be relocated, replaced or altered within reasonable promptness by the respective public corporation, state or private owner, and the authority shall by prior agreement reimburse such public corporation, state or private owner for the actual cost necessarily incurred in such relocation, replacement or alteration. The authority may enter into an agreement with any city or county having jurisdiction over the street or highway involved, and, as may be provided in such an agreement, may close any such street or county highway at or near the point of its inception with any facility of the authority or may make provision for carrying such city street or county highway over or under or to a connection with such facility of the authority and may do any and all work on such city street, or county highway as is necessary. No city street or county highway shall be closed, either directly or indirectly, by construction of facilities of the authority except pursuant to such an agreement, or temporarily while necessary during the construction of such facilities. 8. Operate such feeder bus lines and other feeder services as necessary. 9. Collect revenues and monies of a public nature or from other sources as provided for in this article. 10. Borrow money and issue bonds. 40-1125. Cooperation with state or other agencies An authority may cooperate with and enter into agreements with the state of Arizona or any public agency for the acquisition, construction, improvement, completion, maintenance, operation or repair, joint or otherwise, and in whole or in part, of public transportation facilities and equipment, and for study and planning thereof. In connection with any such cooperation or contract, the state or any public agency may make public contributions to the authority as in the judgment of the legislature, or the governing board of the agency, are necessary or proper for its undertaking, and the authority may reimburse the state or public agency for any such advance or contribution from the proceeds of the sale of bonds or any other funds available to the authority. The state or any public agency may also authorize, aid and assist the authority to carry out any activity which the state or public agency is by law authorized to perform and carry out in its own behalf. 40-1126. Cooperation with federal government An authority may contract for and cooperate with and may accept grants, contributions, or loans directly through the sale of securities or equipment, trust certificates, or otherwise, from the United States, or any department, instrumentality, or agency thereof, for the purpose of financing the acquisition, construction, improvement, maintenance and operation of transportation facilities and equipment or for the study and planning thereof, in accordance with any legislation which Congress may have heretofore adopted or may hereafter adopt, under which aid, assistance and cooperation may be furnished by the United States in the acquisition, construction, improvement, maintenance and operation or in the financing of the acquisition, construction, improvement, maintenance and operation of any such transit facility or equipment. An authority, in dealing with the federal government or agencies thereof, may waive any privilege or immunity if such action is deemed in the best interest of the authority. 40-1127. Rates and charges The rates and charges for service furnished pursuant to this article shall be determined by vote of the majority of all of the members of the board. Such rates shall be reasonable, and, insofar as is practical, the revenue derived therefrom shall be sufficient to pay, in the following priority: 1. Interest and principal of the bonds, subject to the applicable provisions of this chapter authorizing issuance and retirement of bonds. 2. Operating expenses of the authority. 3. Repairs, maintenance and depreciation of works and property owned or operated by the authority. 4. Amounts necessary for the purchase, lease, or acquisition of property and equipment. 5. Amounts necessary for the payment of contracts, agreements, leases and other legal liabilities entered into by the authority. 40-1128. Dissolution of authority Whenever the board of directors of an authority, by resolution, determines that the purposes for which the authority was formed have been substantially complied with, that the need for the authority has terminated, and that all obligations incurred by the authority have been fully paid, the members of the board of directors of the authority shall, upon concurrence by resolution of the governing body creating the authority, thereupon dissolve the authority in accordance with provisions of title 10. A certificate of dissolution of the authority shall be filed for record with the secretary of state. Upon dissolution all property and funds of the authority shall revert to and be the property of the creating political subdivision or subdivisions in the proportion that the population of each contracting political subdivision bears to the total population of the area of the authority. 40-1131. Bonds A. For the purpose of acquiring, improving, enlarging or extending a transit system, the authority may issue self-liquidating revenue bonds. Bonds issued under this article shall be authorized by resolution of the board and may be issued in one or more series and shall bear the date of their issuance, mature at such time or times during a period of not to exceed thirty years from date of issuance, be in such denomination or denominations and in the form, coupon, registered, or registered as to principal only, carry the conversion or registration privileges, have the rank or priority, be executed in the manner, payable in the medium of payment, at the place or places and subject to the terms of redemption, with or without premium, as the resolution may provide, the total principle amount of all such bonds of the authority shall not exceed at any time the sum of two million dollars. Notwithstanding any provisions of law to the contrary, bonds issued pursuant to this section are negotiable. B. The bonds shall provide that: 1. No holder may compel the authority or any municipality the area or a portion of the area of which is included in the operating area thereof to exercise its ad valorem taxing power. 2. The bond does not constitute a debt of the authority and is payable only from revenues from the operation of the authority and its equipment and facilities. C. The bonds may be sold at public or private sale, at not less than the par value thereof with all accrued interest to date of delivery. In the event such bonds are sold at public sale, the board shall call for bids by publishing a notice inviting proposals for the purchase of the bonds at least once a week for two successive weeks prior to the date fixed for sale of the bonds, in a daily or weekly newspaper, published and of general circulation in the involved county and designated for such purpose, which notice shall be in the form the board shall prescribe. Pending preparation of the definitive bonds, interim receipts or certificates may be issued to the purchaser of the bonds in the form and containing the provisions determined by the board. 40-1132. Power to secure bonds; reimbursement for advance A. The board, in connection with the issuance of bonds and in order to secure the payment of the bonds and the interest thereon, shall have power by resolution: 1. To fix and maintain fees and other charges on equipment and facilities of or operated on behalf of the authority. 2. To provide that the bonds issued hereunder may be secured by a first and exclusive lien on the income and revenues derived from, and shall be payable from fees, and other charges on equipment and facilities of or operated on behalf of the authority as provided in paragraph 1. 3. To pledge and assign to or in trust for the benefit of the holder or the holders of bonds any part of the metropolitan public transit authority revenues as will be necessary to pay the principal of and interest on the bonds as the same become due. 4. To covenant with or for the benefit of the holder or holders of bonds issued hereunder, that so long as any of the bonds remain outstanding and unpaid, the board will prescribe fees and other charges on equipment and facilities of or operated on behalf of the authority and will revise the same when necessary so that the project for which the bonds are issued shall be self-supporting. B. An authority may reimburse the state or a public agency for any advance or contribution from the proceeds of the sale of bonds or any other funds available to the authority as provided for in section 40-1125. 40-1133. Provision of bond resolution; covenants A. A resolution pertaining to issuance of bonds under this article may contain covenants as to: 1. The purpose to which the proceeds of sale of the bonds may be applied and to the use and disposition thereof. 2. The use and disposition of the revenues of the project for which the bonds are to be issued. 3. The issuance of other or additional bonds, payable from the revenue received from the operation of the authority and its equipment and facilities. 4. The operation and maintenance of the authority and its equipment and facilities. 5. The insurance to be carried thereon and the use and disposition of insurance monies. 6. The use of capitalized interest, reserve and sinking funds and any other funds as the authority deems necessary to the proper handling of authority monies. 7. Books of account and the inspection and audit thereof. 8. The terms and conditions upon which the holders of the bonds, or any proportion of them, or a trustee therefor, shall be entitled to the appointment of a receiver, who may enter and take possession of the authority's records, equipment and facilities, operate and maintain it, prescribe charges, fees and rentals and collect, receive and apply all revenues therefrom thereafter arising in the same manner as the board itself might do, until such time as the terms and conditions of the bonds are satisfied, at which time the receiver shall return possession of the authority and its equipment and facilities to the board. B. The provisions of this article and any such resolution shall be deemed a contract with the holders of the bonds, and the duties of the board under this article and resolution shall be enforceable by mandamus or other appropriate action in a court of competent jurisdiction. C. Neither the members of the board nor any person executing the bonds shall be personally liable for the payment of the bonds. 40-1134. Validity of bonds A. Bonds issued under this article and bearing the signatures of officers in office on the date of the signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon have ceased to be officers of the board. B. The validity of the bonds shall not be dependent on or affected by the validity or regularity of any proceedings relating to the construction, acquisition, improvement, reconstruction or extension of the facilities of the authority from the proceeds of the sale of the bonds or the proceedings taken in connection therewith. 40-1135. Prior lien of bonds A. Except as otherwise provided in the resolution authorizing the bonds, all bonds of the same issue under this article shall have a prior and paramount lien on the revenues of the authority and its equipment and facilities for which the bonds have been issued over and ahead of bonds of an issue payable from that revenue which may be subsequently authorized, and over and ahead of claims or other obligations of any nature against that revenue subsequently arising or subsequently incurred. B. Bonds of the same issue issued under this article shall be equally and ratably secured, without priority by reason of number, date, sale, execution or delivery, by a lien on the revenue in accordance with the terms of the resolution authorizing the bonds. 40-1136. Bond obligations of the metropolitan public transit authority All bonds issued pursuant to this article shall be obligations of the authority issuing such bonds, and payable only in accordance with the terms thereof and shall not be obligations general, special or otherwise of the state of Arizona or any county or municipality thereof. Such bonds shall not constitute a legal debt of the state of Arizona or any county or municipality thereof, and shall not be enforceable out of any funds of the authority other than the income and revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of such bonds. 40-1137. Bonds as legal investments Bonds issued under the provisions of this article are made securities in which all public officers and bodies of the state and all municipalities and political subdivisions of this state, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business, all administrators, guardians, executors, trustees and other fiduciaries and all other persons whomever are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds including capital in their control or belonging to them. The bonds are also made securities which may be deposited with and may be received by all public officers and bodies of the state and all municipalities and political subdivisions of this state for any purpose for which the deposit of bonds or other obligations of the state is now or may hereafter be authorized. 40-1138. Limitation on indebtedness An authority shall not incur an indebtedness which exceeds one million dollars. As used in this section, "indebtedness" includes, without limitation, any and all forms thereof which an authority is authorized to incur by this article or by any other law. 40-1139. Annual financial statement of authority; estimate of expenses; notice of hearing on estimate A. The board of directors of each metropolitan public transit authority, on or before the third Monday in July each year, shall prepare a full and complete statement of the financial affairs for the preceding fiscal year and an estimate of the different amounts which will be required to meet the expense for the current fiscal year. The estimate shall include an estimate of the amount of money required for each item of expenditure necessary for authority purposes, the amounts necessary to pay the interest and principal of outstanding bonds, the items and amounts of levy provided by law and an amount for unanticipated contingencies or emergencies. B. The estimate shall be entered upon the minutes of the board and shall be fully itemized showing under separate heads the following: 1. The amounts estimated as required for each department, office or official, for each improvement, for the maintenance of structures and institutions and for the salaries of officers. 2. The separate amounts proposed for construction, maintenance, engineering and administration of the facilities of the authority. 3. A full and complete disclosure and statement of the contemplated expenditures for the ensuing year, showing the amount proposed to be expended from each separate fund and the total amount of proposed expense. C. The estimate shall also contain: 1. A statement of the receipts for the previous year from sources other than direct property taxes. 2. The amounts estimated to be received during the current fiscal year from sources other than direct property taxes. 3. The amounts actually levied and the amounts actually collected for authority purposes upon the tax rolls of the previous fiscal year. 4. The amount proposed to be raised by direct property taxation for the current fiscal year. D. The estimate required by this section shall be published with a notice that the board will hold a hearing on such estimate for the purposes provided in section 40-1140. Such publication shall be once a week for at least two consecutive weeks in the official newspaper of the county, if there is one, and if not, in a newspaper of general circulation therein. 40-1140. Hearing on estimates; adoption of proposed budget A. The board of directors of each metropolitan public transit authority shall meet on the day designated in the notice provided by subsection D of section 40-1139, and any taxpayer may appear and be heard in favor of or against any proposed expenditure or tax levy. B. When the hearing is concluded, the governing board shall determine and adopt estimates of proposed expenditures for the various purposes set forth in the published proposal and such adopted estimates shall constitute the budget of the authority for the current fiscal year. C. The total amounts in the budget proposed for expenditure shall not exceed the total of amounts proposed for expenditure in the published estimates. D. No expenditures shall be made for a purpose not included in such budget, and no expenditure shall be made, nor debt, obligation or liability incurred or created in any fiscal year in excess of the amount specified for each purpose in the budget for such fiscal year as adopted. E. The board of directors shall file, in writing, with the board of supervisors its estimate of the amount of money required by the authority for the ensuing year. If the board of directors determines that the estimated amount to be received from the anticipated revenue of the authority will not produce the amount of money budgeted the board of directors shall include with the estimate the additional amount needed for the authority and shall certify such amount to the board of supervisors at the time of filing the estimate. 40-1141. Metropolitan public transit authority levy The board of supervisors of each county where a metropolitan public transit authority has been established shall annually, at the time of levying other taxes, levy a metropolitan public transit authority tax on the property in the area of a public transit authority in which an additional amount is required, as determined by the authority pursuant to section 40-1140. The tax shall be at a rate sufficient to provide the additional amount. The tax shall be added to and collected in the same manner as other county taxes on the property within the area of the authority. The amount of the metropolitan public transit authority tax levied upon the property in the area of a particular authority shall be paid to the treasurer of such authority. 40-1142. Investment of funds by board The board may, by resolution, order that any of the monies in the funds under its control which are not necessary for current operating expenses be invested in any obligation, bonds or securities in which a city or county could invest such funds, provided that: 1. Any such investment shall be made in such a manner that the monies in such funds will be available at the times and in the amounts necessary to accomplish the purpose for which such funds were established. 2. No such investment shall be made in contravention of any provision or covenant in any proceedings for the authorization and issuance of bonds, notes, contracts or other evidences of indebtedness. 40-1143. Bids required by board; exception The purchase of all supplies, equipment and materials, and construction facilities and works, when the expenditure required exceeds two thousand five hundred dollars shall be by contract let to the lowest responsible bidder. Notice requesting bids shall be published in a newspaper of general circulation in the area at least once and not less than ten days prior to expiration of the period within which bids shall be received. The board may reject any and all bids and readvertise at its discretion. If, after rejecting bids, the board determines and declares by vote of two-thirds of all its members that in its opinion supplies, equipment and materials may be purchased at a lower price on the open market, the board may proceed to purchase the same in the open market without further observances of the provisions requiring contracts, bids or notice. Contracts, in writing or otherwise, may be let without advertising for or inviting bids when any repairs, alterations or other work or for the purchase of materials, supplies, equipment or other property shall be deemed by the board of directors to be of urgent necessity, and shall be authorized by a two-thirds vote of the entire board membership. 40-1144. Claims against the authority Every claim against an authority for damages or injuries alleged to have been caused by the negligent act or omission of the authority shall be presented to the board in writing within fifteen days after the happening of such injury, or damage, signed by the claimant or some person duly authorized to sign for same, and properly verified, stating the time and place at which the injury or damage occurred and a general statement of the cause or circumstances of the death, injury or damages. No action shall be commenced to recover for such death, injury or damages until thirty days after such presentation or unless the board shall sooner deny such claim. 40-1146. Certification of bonds and approval of contracts by attorney general A. The board may submit to the attorney general of this state any bonds to be issued under this article after all proceedings for the authorization of such bonds have been taken. Upon the submission of such proceedings to the attorney general, the attorney general shall examine into and pass upon the validity of such bonds and the regularity of all proceedings in connection therewith. If such proceedings conform to the provisions of this article, and it is determined that such bonds when delivered and paid for will constitute binding and legal obligations of the authority enforceable according to the terms thereof, the attorney general shall certify in substance upon the back of each of such bonds that it is issued in accordance with the Constitution and laws of the state of Arizona. B. All agreements for the purpose of carrying out the provisions of this article shall be subject to the approval of the attorney general as to form and content. 40-1147. Supplemental law The powers conferred by articles 2, 3 and 4 of this chapter shall be in addition to and supplemental to the powers conferred by any other law, general or special. Articles 2, 3 and 4 of this chapter shall, without reference to any other provision in this title, or to any other law, general or special, be deemed full authority for the acquisition of property for future public transit needs under articles 2, 3 and 4 of this chapter, for entering into contracts in connection therewith, and for the authorization, issuance and sale of the bonds pursuant to article 4 of this chapter and without regard to the procedure required by any other such law. 40-1151. Definition For the purposes of this article, "public transportation services" means the local transportation of passengers and their incidental baggage by means of a public conveyance, including personalized public transit, jitney buses or conveyances, commuter buses, other such systems and excluding sightseeing buses and taxi services. 40-1152. Public transportation services; contracts and agreements; fares and service charges; educational institutions; financial grants A. In addition to other authority granted pursuant to titles 9 and 11 and this title, or city charter, any county or incorporated city or town may provide public transportation services directly or by contract with a private party, motor carrier or public service corporation, within or without the corporate limits, within or without the county boundaries or to any portion as determined by the board of supervisors or the mayor and council, and may expend public funds for such purposes. Counties, cities and towns and contractors furnishing public transportation services solely at the direction of and in accordance with a system adopted by the governing body of such county, city or town are not subject to the provisions of title 28, chapter 9, article 2 and chapter 16, article 4. B. Any county, city or town may, by resolution, provide for a system of fares or service charges to defray all or part of the costs of providing public transportation services. C. Any county, city or town may enter into contracts or agreements pursuant to title 11, chapter 7, article 3 to provide public transportation services on a cooperative or contract basis with one another or may jointly form a nonprofit corporation to carry out public transportation services in their behalf directly or by contract with a private party, motor carrier or public service corporation. D. In addition to other provisions of law, school districts, universities or colleges may enter into contracts or agreements with cities, towns, counties, any combination thereof, or a nonprofit corporation created by such units of government to provide public transportation services directly or by contract with a private party, motor carrier or public service corporation. Such agreements may include provisions for the sale of school buses to such entities for the purpose of providing joint school and public transportation and for reasonable charges for transportation of the general public by school districts, universities or colleges provided adequate liability insurance has been obtained. E. Any county, city or town or a nonprofit corporation created by such units of government may accept grants, contributions or loans from this state or the United States, or any instrumentality thereof, for the purpose of financing the acquisition, construction, improvement, operation and maintenance of a public transportation service system directly or by contract with a private party, motor carrier or public service corporation. F. Nothing contained in this article shall permit or be construed to permit a regional council of governments or a regional planning agency created pursuant to a joint exercise of powers agreement or pursuant to nonprofit corporation statutes to provide public transportation services nor to operate such services contrary to the provisions of section 9-519.