Ponderosa Fire District v. Coconino County , 235 Ariz. 597 ( 2014 )


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  •                                IN THE
    ARIZONA COURT OF APPEALS
    DIVISION ONE
    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, the 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
    FILED 08-28-2014
    Appeal from the Superior Court in Coconino County
    S0300CV201200366
    The Honorable Dan R. Slayton, Judge
    REVERSED AND REMANDED
    COUNSEL
    Freeman Huber Law PLLC, Flagstaff
    By Shelton L. Freeman and Matthew J. Mansfield
    Counsel for Plaintiffs/Appellees
    Gammage & Burnham PLC, Phoenix
    By Cameron C. Artigue and Christopher L. Hering
    Counsel for Defendants/Appellants
    Mangum Wall Stoops & Warden PLLC, Flagstaff
    By Michelle D’Andrea
    Counsel for Amicus Curiae City of Flagstaff
    Maricopa County Attorney’s Office, Phoenix
    By Wayne J. Peck
    Counsel for Amicus Curiae Maricopa County
    Holloway Odegard & Kelly PC, Phoenix
    By Ellen M. Van Riper
    Counsel for Amicus Curiae League of Arizona Cities and Towns
    OPINION
    Judge Andrew W. Gould delivered the opinion of the Court, in which
    Presiding Judge Lawrence F. Winthrop and Judge Maurice Portley joined.
    G O U L D, 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 completion of subdivision improvements pursuant to Arizona
    Revised Statute (“A.R.S.”) section 11-821(C) and Coconino County
    Subdivision Ordinance No. 82-3 (“Ordinance”), section 4.14(A)(2) (May 3,
    1982). We hold that A.R.S. § 11-821(C) and Ordinance § 4.14(A)(2) allow
    the County to exercise discretion in deciding when, and under what
    circumstances, it may call the performance bonds. Accordingly, we reverse
    the trial court’s judgment.
    FACTS AND PROCEDURAL HISTORY
    ¶2          Empire Residential Construction, L.P. (“Empire”) subdivided
    land and developed Flagstaff Meadows, a residential community, in
    Coconino County. The subdivision consists of three Units; Units 1 and 2
    contain completed single-family homes and townhomes. In 2006, Empire
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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 control
    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 consumers. 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
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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 infrastructure
    covered by the surety bonds is not needed to serve a substantial public
    interest,” calling the bonds “would primarily benefit only the single current
    owner of the subdivision property [Bellemont] rather than substantially
    benefiting the general public or the neighborhood,” and that “litigation is
    likely to result from a call . . . plac[ing] the County general fund at risk.”
    ¶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 relief, 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 harmed 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.1 At
    1    Because Appellees’ complaint included a claim for monetary
    damages under 42 U.S.C. § 1983, the County sought to remove the case to
    4
    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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 or 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 A.R.S. § 12-2021, requiring the County to issue a resolution
    calling the bonds. The County complied, passing a resolution calling the
    bonds. After the court entered a judgment with Rule 54(b) language, the
    County filed a timely notice of appeal.
    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
    claims for monetary damages based on the County’s refusal to call the Unit
    3 bonds. Moreover, this case only involves the County’s discretion to call
    the subdivision bonds; it does not address the County’s discretion, if any,
    the federal district court. Upon receipt of the County’s application for
    removal, the district court accepted jurisdiction of claims five and six, the
    claims for monetary damages, and remanded Appellees’ claims one
    through four, the claims for declaratory and injunctive relief.
    2     The surety bonds state: “Surety, upon receipt of a resolution of the
    Obligee [County] indicating that the improvements have not been installed
    or completed, will complete the improvements or pay to Obligee [County]
    such amount up to the Principal amount of this bond which will allow the
    Obligee [County] to complete the improvements.”
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    to discharge, waive, or release the bonds or to use the bond monies for some
    purpose other than completing the Unit 3 improvements.
    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, 
    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 Ariz. R. Civ. P. 6(d).
    However, the County fails to identify what additional discovery or
    evidence would have been helpful in opposing Appellees’ application for
    declaratory and mandamus relief. Moreover, the issue presented at the
    show cause hearing involved a pure issue of law concerning the
    construction of A.R.S. § 11-821(C) and Ordinance § 4.14(A)(2). The record
    reflects that the County was given an adequate opportunity to brief this
    legal issue and present its arguments at the hearing.
    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 A.R.S. § 12-1832, a party “whose rights, status, or
    other legal relations are affected by a statute, municipal ordinance, contract
    or franchise may have [a court] determine[] . . . any question of construction
    . . . arising under” the statute or ordinance, “and obtain a declaration of [his]
    rights, status or other legal relations thereunder.” Canyon Del Rio Investors,
    L.L.C. v. City of Flagstaff, 
    227 Ariz. 336
    , 341, ¶ 18, 
    258 P.3d 154
    , 159 (App.
    2011). “[A] justiciable controversy exists if there is an assertion of a right,
    status, or legal relation in which the plaintiff has a definite interest and a
    denial of it by the opposing party.” Keggi v. Northbrook Prop. & Cas. Ins. Co.,
    
    199 Ariz. 43
    , 45, ¶ 10, 
    13 P.3d 785
    , 787 (App. 2000) (internal citation omitted).
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    ¶17            Section 12-1832 grants Appellees standing to pursue their
    claim for declaratory relief. Appellees allege their interests are affected by
    the County’s refusal to call the bonds based on A.R.S. § 11-821(C) and
    Ordinance § 4.14(A)(2). Accordingly, Appellees properly seek a declaration
    of their rights under the statute and Ordinance.
    ¶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.” A.R.S. § 12-2021; Sears
    v. Hull, 
    192 Ariz. 65
    , 68, ¶ 11, 
    961 P.2d 1013
    , 1016 (1998). The term “party
    beneficially interested” is “applied liberally to promote the ends of justice.”
    Barry v. Phx. Union High School, 
    67 Ariz. 384
    , 387, 
    197 P.2d 533
    , 534 (1948);
    see Armer v. Superior Court, 
    112 Ariz. 478
    , 480, 
    543 P.2d 1107
    , 1109 (1975).
    ¶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
    one that specifically describes the manner of performance and “leaves
    nothing to the discretion” of the public official or board. 
    Id. In contrast,
    “if
    an action of a public officer is discretionary that discretion may not be
    controlled by mandamus.” Collins v. Krucker, 
    56 Ariz. 6
    , 13, 
    104 P.2d 176
    ,
    179 (1940).
    ¶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 A.R.S. § 11-821(C). Section 11-
    821(C) provides, in relevant part, that subdivision regulations adopted by
    a county board of supervisors:
    . . . 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
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    meeting established minimum standards of design and
    construction.
    ¶22            Appellees argue that the County’s interpretation of
    Ordinance § 4.14(A)(2) contravenes the plain language of A.R.S. § 11-
    821(C). When there is a conflict between a statute and an ordinance, the
    statute controls. Thomas and King, Inc. v. City of Phx., 
    208 Ariz. 203
    , 207, ¶ 11,
    
    92 P.3d 429
    , 433 (App. 2004); see City of Tempe v. Outdoor Sys., Inc., 
    201 Ariz. 106
    , 109, ¶ 9, 
    32 P.3d 31
    , 34 (App. 2001) (“When an ordinance regulates an
    area that is also regulated by state statute, the ordinance may parallel the
    statute or even reach beyond the parameters of the statute so long as the
    ordinance does not conflict with the statute.”).
    ¶23           Bellemont interprets the language in A.R.S. § 11-821(C) as
    stating that once a bond has been posted, the final plat approved, and the
    original developer defaults, the obligation to construct and pay for
    improvements is transferred from the original developer to the County.3
    According to Bellemont, to interpret the statute otherwise renders the bond
    requirement meaningless and allows the County to abandon unfinished
    subdivisions. We disagree.
    ¶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 269
    ; 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
    3      In support of this argument, Bellemont states that upon approval of
    the final plat, ownership of the streets and rights of way in Unit 3 was
    transferred to the County. We disagree. Although the County approved
    the streets in the final plat, this action did not transfer ownership of the
    streets to the County; ownership is not transferred to the County until it
    determines the streets are “fully completed” in accordance with the final
    plat. A.R.S. § 11-822(C); West v. Sundance Dev. Co., 
    169 Ariz. 579
    , 583, 
    821 P.2d 240
    , 244. (App. 1991)
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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 A.R.S. § 11-821(C), we are also guided by the principle that
    counties, like cities, have no inherent powers; a county’s authority is limited
    to those powers expressly or impliedly delegated to it by the state
    constitution or statutes. Associated Dairy Prods. Co. v. Page, 
    68 Ariz. 393
    , 395,
    
    206 P.2d 1041
    , 1043 (1949); Home Builders Assoc. of Cent. Ariz. v. City of
    Maricopa, 
    215 Ariz. 146
    , 149, ¶ 5, 
    158 P.3d 869
    , 873 (App. 2007). Thus, in
    performing its duties under A.R.S. § 11-821(C), the County possesses “all
    powers that may be fairly implied from, and are necessary for, the complete
    exercise of [its] express powers” under the statute. City of Phx. v. Phx. Civil
    Serv. Bd., 
    169 Ariz. 256
    , 259, 
    818 P.2d 241
    , 244 (App. 1991).
    ¶26            The primary purpose of the bond posting requirement in
    A.R.S. § 11-821(C) is to protect the public from bearing the costs of necessary
    subdivision improvements by requiring the developer to install and pay for
    such improvements. 
    Norton, 128 Ariz. at 179
    , 624 P.2d at 857 (“Performance
    bonds which insure the proper completion of street, sewer and water
    utilities by subdivision developers protect the city from the necessity of
    spending its citizens’ money to fulfill the developers’ responsibilities.”); see
    
    West, 169 Ariz. at 583-84
    , 821 P.2d at 244-45 (noting that purpose of a
    developer posting a bond under A.R.S. § 11-806.01(G), the predecessor
    statute to A.R.S. § 11-821(C), was to ensure that the developer performed
    its obligation to construct necessary subdivision improvements).
    ¶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 owner.” 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 A.R.S. § 11-821(C) because it purchased Unit 3 with the intent
    to construct residences on the lots and sell them to the public. The
    Ordinance and relevant state statutes all define a subdivider as including
    subsequent developers who seek to construct residences on subdivision lots
    and sell them. Both section 2.1 of the Ordinance and A.R.S. § 32-2101(55)
    9
    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    define a “subdivider” as anyone “who offers for sale or lease six or more
    lots . . . or who causes land to be subdivided . . . or who undertakes to
    develop a subdivision.” See Alaface v. Nat’l Inv. Co., 
    181 Ariz. 586
    , 592-93 &
    n.2, 892 P.2d. 1375, 1381-82 & n.2 (App. 1995) (noting that definition of
    “subdivider” under A.R.S. § 32-2101, includes subsequent developers who
    were not the original subdividers).
    ¶29          With this statutory purpose in mind, we examine the
    language of A.R.S. § 11-821(C). The statute provides that the County
    regulations “shall” require the posting of a bond, assurance or other
    security. A.R.S. § 11-821(C). Next, the statute mandates that the bond,
    assurance or security posted by the developer must be “appropriate and
    necessary” to “ensure” the installation of the “required” infrastructure.
    ¶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 exercise of its necessary and implied power under
    A.R.S. § 11-821(C). The legislative purpose of the statute is to require
    developers such as Bellemont to pay for the cost of subdivision
    improvements. Here, the County determined that calling the bonds did not
    serve this interest; rather, the County decided, in its discretion, to forego
    calling the bonds and require Bellemont to pay for the cost of the Unit 3
    improvements.
    ¶32           In support of this conclusion, we note that Bellemont’s
    construction of A.R.S. § 11-821(C) would lead to absurd results. Under
    Bellemont’s interpretation of the statute, whenever a developer abandons a
    subdivision, a county has a mandatory duty to call the bond, regardless of
    the circumstances. This leaves counties with an open-ended obligation to
    finish all abandoned subdivision improvements, with no discretion to
    consider any factors that may arise after the final plat is approved. For
    example, counties would be required to call a bond and finish
    improvements for a subdivision that may lay vacant for many years.
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    Indeed, if the County was obligated to call the bonds and finish the Unit 3
    improvements as Bellemont contends, then it was required to do so
    immediately upon Empire’s default in 2008 – despite the fact that six years
    later, the Unit 3 subdivision still remains vacant. This court is charged with
    construing statutes to avoid such absurd results. 
    Harris, 234 Ariz. at 345
    , ¶
    
    13, 322 P.3d at 162
    ; 
    Bilke, 206 Ariz. at 464
    , ¶ 
    11, 80 P.3d at 269
    .
    ¶33          We therefore conclude the County exercised its discretion
    under the statute by seeking 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 fails 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 use 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 permissive.” 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 A.R.S. § 11-
    821(C), which provides the County with discretion in deciding when, and
    11
    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    under what circumstances, to call a bond. Supra, at ¶¶ 31-32. Finally, a
    construction that provides the County with discretion to call bonds
    promotes the purpose and intent of Coconino County in enacting the
    Ordinance, which is “[t]o ensure that the costs of providing” subdivision
    improvements “are borne fairly and equitably by the subdivider rather than
    by property owners of the County at large.” Ordinance § 1.1. Supra, at ¶
    26.
    VI.    Attorneys’ Fees
    ¶38            Because we reverse, Appellees’ request for attorneys’ fees on
    appeal is denied. Appellees are not a prevailing party, and therefore are
    not entitled to an award of fees pursuant to either A.R.S. § 12-2030(A) or the
    private attorney general doctrine. See Arnold v. Ariz. Dept. of Health Servs.,
    
    160 Ariz. 593
    , 609-10, 
    775 P.2d 521
    , 537-38 (1989).
    CONCLUSION
    ¶39            For the reasons discussed above, we conclude the County
    exercised its discretion under A.R.S. § 11-821(C) and Ordinance § 4.14(A)(2)
    in refusing to call the Unit 3 bonds. As a consequence, the trial court erred
    in issuing its mandamus order compelling the County to call the bonds. We
    therefore reverse the trial court’s judgment, and remand this case to the trial
    court for further proceedings consistent with this opinion.
    :gsh
    12