PONDEROSA FIRE DISTRICT, a political subdivision of the State of Arizona; Utility Source, L.L.C., an Arizona limited liability company; Townhomes at Flagstaff Meadows Homeowners Association, an Arizona non-profit corporation; FLAGSTAFF MEADOWS PROPERTY OWNERS’ ASSOCIATION, an Arizona non-profit corporation; THE FLAGSTAFF MEADOWS UNIT 3 HOMEOWNERS ASSOCIATION, an Arizona non-profit corporation; and Bellemont 276 L.L.C., an Arizona limited liability company, Plaintiffs/Appellees, v. COCONINO COUNTY, Arizona, a political subdivision of the State of Arizona; Coconino County Board of Supervisors, thе duly elected governing board of Coconino County, Arizona; Coconino County Community Development, a department of Coconino County, Defendants/Appellants.
No. 1 CA-CV 13-0545
Court of Appeals of Arizona, Division 1
Aug. 28, 2014
334 P.3d 1256
CONCLUSION
¶ 19 Based on the foregoing, we reverse the dismissal of PMC‘s claims agаinst Farmers for the statutory enforcement of a medical lien and remand for further proceedings.
Gammage & Burnham PLC By Cameron C. Artigue and Christopher L. Hering, Phoenix, Counsel for Defendants/Appellants.
Mangum Wall Stoops & Warden PLLC By Michelle D‘Andrea, Flagstaff, Counsel for Amicus Curiae City of Flagstaff.
Maricopa County Attorney‘s Office By Wayne J. Peck, Phoenix, Counsel for Amicus Curiae Maricopa County.
Holloway Odegard & Kelly PC By Ellen M. Van Riper, Phoenix, Counsel for Amicus Curiae League of Arizona Cities and Towns.
Judge ANDREW W. GOULD delivered the opinion of the Court, in which Presiding Judge LAWRENCE F. WINTHROP and Judge MAURICE PORTLEY joined.
OPINION
GOULD, Judge.
¶ 1 We are asked to decide whether Coconino County, Arizona, the Coconino County Board of Supervisors (“Board“), and the Coconino County Community Development Department (collectively “the County“) have the discretion to call performance bonds posted by a developer to ensure сompletion of subdivision improvements pursuant to Arizona Revised Statute (“A.R.S.“) section
FACTS AND PROCEDURAL HISTORY
¶ 2 Empire Residential Construction, L.P. (“Empire“) subdivided land and developed Flagstaff Meadows, a residential community, in Cоconino County. The subdivision consists of three Units; Units 1 and 2 contain completed single-family homes and townhomes. In 2006, Empire applied to the Coconino County Planning and Zoning Commission to develop Unit 3 into a residential community for single-family homes and multiple-family residences. The Board voted unanimously to approve Empire‘s application.
¶ 3 On October 17, 2006, the Board issued a resolution approving Empire‘s proposed Unit 3 preliminary plat, including the requirement that:
In accordance with Section 4.14 of the Subdivision Ordinance, all improvements must be completed prior to submittal of a final plat or a cash deposit, letter of credit, performance bond, or other acceptable financial security shall be required for the costs of any improvements and construction not completed, plus a 10% contingency. This includes, but is not limited to, all roadways, drainage structures, utilities, traffic contrоl signs, street identification signs, fencing, park improvements, pedestrian trails, and landscaping.
Based on the Board‘s resolution, in October 2007, Empire acquired four subdivision bonds totaling $4,396,241.32. The bonds consisted of $3,364,428.10 for subdivision improvements, $196,998.22 for emergency evacuation route improvements, $660,000.00 for fire station additions, and $174,815.00 for landscaping improvements. The Board approved the final plat in October 2007.
¶ 4 Empire began construction of the subdivision improvements and, upon completion of the emergency evacuation route improvements, the County released the corresponding $196,998.22 bond. However, before it could complete the remaining subdivision improvements, Empire declared bankruptcy and abandoned Unit 3. At the time Empire abandoned Unit 3, the subdivision‘s infrastructure was not finished; there were no functional internal roads or utilities. In addition, no construction of homes had begun, and no lots had been sold to consumеrs. The remaining subdivision bonds totaled more than $4 million.
¶ 5 Following a series of trustee‘s sales, Bellemont 276, L.L.C. (“Bellemont“) eventually purchased Unit 3 in March 2011 with the intent of constructing residences on the subdivided lots and selling them to the public. Bellemont applied to the County for a building permit to begin construction. Bellemont also requested the County call the outstanding Unit 3 subdivision bonds. Over the next several months, the County negotiated with Bellemont regarding the cost of finishing the Unit 3 improvements; during these negotiations, the County also sought to protect itself from the risk of potential litigation costs that might be incurred in calling the bonds.
¶ 6 The negotiations did not produce an agreement and the County ultimately passed a resolution not to call the bonds. In support of this resolution the County found, among other things, that improvements in Unit 3 were “essentially unconstructed,” “there [were] no current residents suffering from lack of infrastructure,” “the public in-
¶ 7 Because there was no plan in place to complete the necessary improvements/infrastructure, the County rejected Bellemont‘s application for a building permit. In response, Bellemont filed a complaint alleging that it had acquired Unit 3 with the expectation the bonds would be called to pay for the remaining improvements and infrastructure. Bellemont requested declaratory relief1, a writ of mandamus compelling the County to call the bonds, and monetary damages.
¶ 8 Several parties joined Bellemont as plaintiffs in its complaint, alleging their interests were also harmеd by the County‘s refusal to call the bonds. Townhomes at Flagstaff Meadows Homeowners Association and Flagstaff Meadows Property Owners’ Association (“HOAs“), representing the adjacent lot owners of Units 1 and 2, complained about the undeveloped status of Unit 3. The HOA‘s argued they were being denied the right to live in the “completed subdivision” represented in the public report each resident received when purchasing their property. Ponderosa Fire District (“Ponderosa“) asserted it was denied improvements to its fire station that had been included in the Unit 3 final plat. Utility Source, L.L.C. (“USource“) argued that its investment in the infrastructure of Flagstaff Meadows as a whole could not be sustained without completion and occupation of Unit 3 absent a substantial increase in fees for the property owners in Units 1 and 2.
¶ 9 Appellees requested a hearing for the County to show cause why Appellees were not entitled to declaratory and mandamus relief. At the hearing, Appellees sought a declaration from the court that the County‘s duty to call the bond was a mandatory, ministerial act, and, based on this declaration, a writ of mandamus compelling the County to call the bonds. Appellees argued the County lacked discretion to refuse to call the bonds for Unit 3. Appellees conceded that the lots were all owned by Bellemont, and none had been sold оr committed to individual homeowners. The County responded that it had the discretion to decide whether to call the bonds. The County also objected, on procedural grounds, to any grant of relief at the show cause hearing.
¶ 10 At the conclusion of the hearing, the court granted Appellees’ application and ordered the County to (1) adopt a resolution stating the improvements were not finished and (2) send the resolution to the surety. Based on the terms of the surety bonds, this order constituted an order compelling the County to call the bonds.2
¶ 11 Following the hearing, the court issued a writ of mandamus pursuant to
DISCUSSION
¶ 12 The only claims involved in this appeal are Appellees’ claims for declaratory and mandamus relief regarding the County‘s discretion to call the bonds. We are not asked to decide whether Appellees may bring
I. Standard of Review
¶ 13 We review the construction of statutes and ordinances de novo. State ex rel. Montgomery v. Harris, 234 Ariz. 343, 344, ¶ 8, 322 P.3d 160, 161 (2014); Files v. Bernal, 200 Ariz. 64, 66, ¶ 2, 22 P.3d 57, 59 (App.2001).
II. Show Cause Hearing
¶ 14 The County argues the order to show cause procedure used by Appellees was improper because it denied it a full and fair opportunity to conduct discovery and present evidence. See
III. Standing
¶ 15 Appellees lack standing to call the bonds or to make a claim directly against the surety. Norton v. First Fed. Sav., 128 Ariz. 176, 180, 624 P.2d 854, 858 (1981). Appellees acknowledge that only the County, as the obligee, may call the bonds. Id. However, Appellees are not suing the surety or seeking to collect damages against the bonds. Rather, Appellees are seeking, by means of combined declaratory and mandamus relief, to compel the County to call the bonds.
¶ 16 Pursuant to
¶ 17 Section
¶ 18 Appellees also seek mandamus relief. A writ of mandamus allows a “party beneficially interested” in an action to compel a public official or board “to perform an act imposed by law.”
¶ 19 An action for mandamus “does not lie if the public officer is not specifically required by law to perform the act.” Board of Educ. v. Scottsdale Educ. Ass‘n, 109 Ariz. 342, 344, 509 P.2d 612, 614 (1973). A mandamus action may only be brought if the statutory duty imposed on the public official or board is purely “ministerial.” El Paso Natural Gas Co. v. State, 123 Ariz. 219, 221, 599 P.2d 175, 177 (1979). A ministerial duty is
¶ 20 Appellees claim they are “beneficially interested” in the County‘s refusal to call the bonds, because the bond monies are necessary to finish the Unit 3 improvements. However, we need not decide the issue of Appellees’ standing to bring a mandamus action, because even if we assume Appellees have standing, mandamus relief is not appropriate in this case.
IV. Construction of A.R.S. § 11-821(C)
¶ 21 We begin our analysis with
... shall require the posting of performance bonds, assurances or such other security as may be appropriate and necessary to ensure the installation of required street, sewer, electric and water utilities, drainage, flood control and improvements meeting established minimum standards of design and construction.
¶ 22 Appellees arguе that the County‘s interpretation of Ordinance § 4.14(A)(2) contravenes the plain language of
¶ 23 Bellemont interprets the language in
¶ 24 In construing a statute, we look to the plain language of the statute, giving effect to every word and phrase, and assigning to each word its plain and common meaning. Bilke v. State, 206 Ariz. 462, 464, ¶ 11, 80 P.3d 269, 271 (2003); Cochise Cnty. v. Broken Arrow Baptist Church, 161 Ariz. 406, 409, 778 P.2d 1302, 1305 (App.1989). If a statute‘s language is clear and unambiguous, we apply it without resorting to other methods of statutory interpretation, unless doing so would lead to impossible or absurd results. Harris, 234 Ariz. at 345, ¶ 13, 322 P.3d at 162; Bilke, 206 Ariz. at 464, ¶ 11, 80 P.3d at 271; State v. Flores, 160 Ariz. 235, 239, 772 P.2d 589, 593 (App.1989). If a statute‘s language is ambiguous, we attempt to determine the legislative intent by interpreting the statute as a whole, considering its place in the relevant statutory scheme, as well as the statute‘s “subject matter, historical background, effects and consequences, and spirit and purpose.” Harris, 234 Ariz. at 345, ¶ 13, 322 P.3d at 162 (internal citations omitted); see CSA 13-101 Loop, LLC v. Loop 101, LLC, 233 Ariz. 355, 360-61, ¶¶ 14-17, 312 P.3d 1121, 1126-27 (App.2013).
¶ 25 In determining whether the County has discretion to call the bonds under
¶ 26 The primary purpose of the bond posting requirement in
¶ 27 Bellemont concedes that developers have the obligation to install required subdivision improvements. Bellemont asserts, however, that there is currently no developer or subdivider to complete the improvements for Unit 3. Bellemont claims that it is not a developer or subdivider; rather, it is “just a county property ownеr.” Bellemont further contends that Arizona law and the Ordinance place no requirement on it, as a property owner, to complete the improvements simply because it owns multiple lots in the subdivision.
¶ 28 We conclude Bellemont is a developer and subdivider for the purposes of
¶ 29 With this statutory purpose in mind, we examine the language of
¶ 30 When read together, all of these terms plainly require the County to “ensure” that the amount of the bond posted by a developer is sufficient to cover the cost of necessary subdivision improvements. The statute does not, however, specify when a county is required to call a bond. Where a statute is silent on an issue, “we will not read into [it] something which is not within the express manifest intention of the Legislature as gathered from the statute itself,” nor will we “inflate, expand, stretch or extend the statute to matters not falling within its expressed provisions.” See Martin v. Althoff, 27 Ariz. App. 588, 591, 557 P.2d 187, 190 (1976) (citation omitted).
¶ 31 We conclude the County‘s decision not to call the bonds at this time was a proper exеrcise of its necessary and implied power under
¶ 32 In support of this conclusion, we note that Bellemont‘s construction of
¶ 33 We therefore conclude the County exercised its discretion under the statute by seеking to have Bellemont install the required subdivision improvements rather than calling the bonds.
V. Construction of Ordinance Section 4.14(A)(2)
¶ 34 Ordinance § 4.14(A)(2) states the following regarding subdivision performance bonds:
The Final Plat will be submitted to the Board for approval if the construction and improvements have been accepted or if a cash deposit or other financial arrangement acceptable to the County have been made between the subdivider and the Board. In the event the subdivider fаils to perform within the time allotted by the Board, then after reasonable notice to the subdivider of the default, the County may do or have done all work and charge subdivider‘s deposit with all costs and expenses incurred. (Emphasis added.)
¶ 35 The County argues that the use of the word “may,” rather than “shall,” is permissive and implies discretion. Ordinance § 2.1. Bellemont argues that the use of the word “may” limits the County‘s discretion to either call the bonds and finish the project itself, or usе the bond monies to hire others to complete the project; the language does not, however, provide the County with the discretion to refuse to call the bonds.
¶ 36 We conclude Ordinance § 4.14(A)(2) allows the County to exercise its discretion in calling the bonds. The use of the word “may” in the Ordinance is a permissive term, and implies discretion. Section 2.1 of the Ordinance states that for the purposes of the Ordinance, the “word ‘shall’ is mandatory; the word ‘may’ is рermissive.” See Walter v. Wilkinson, 198 Ariz. 431, 432, ¶ 7, 10 P.3d 1218, 1219 (App.2000) (holding that use of the word “may” in a statute generally indicates permissive intent, while “shall” generally indicates a mandatory provision).
¶ 37 Further, this construction is consistent with
VI. Attorneys’ Fees
¶ 38 Because we reverse, Appellees’ request for attorneys’ fees on appeal is denied.
CONCLUSION
¶ 39 For the reasons discussed above, we conclude the County exercised its discretion under
