Ponderosa v. Coconino ( 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 07-22-2014
    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
    2
    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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
    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
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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 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.
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    ¶9            Appellees requested a hearing for the County to show cause
    why Appellees were not entitled to declaratory and mandamus relief.1 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 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
    1      Because Appellees’ complaint included a claim for monetary
    damages under 42 U.S.C. § 1983, the County sought to remove the case to
    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
    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, 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
    6
    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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).
    ¶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).3
    ¶20          Appellees claim they are “beneficially interested” in the
    County’s refusal to call the bonds, because the bond monies are necessary
    3      Appellees do not assert, as alternative grounds for mandamus, that
    the County acted arbitrarily in refusing to call the bonds. Rhodes v. Clark,
    
    92 Ariz. 31
    , 35, 
    373 P.2d 348
    , 350 (1962) (holding that a mandamus action
    may only be brought to compel a ministerial duty or, if the action was
    discretionary, the public official or board acted arbitrarily and abused his
    discretion); 
    Collins, 56 Ariz. at 13
    , 104 P.2d at 179 (“[I]f it clearly appears
    that the officer has acted arbitrarily and unjustly and in the abuse of
    discretion, the [mandamus] action may still be brought.”).
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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 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.4
    According to Bellemont, to interpret the statute otherwise renders the
    4      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
    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 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
    9
    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    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) 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).
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    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    ¶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.
    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 properly 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.)
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    PONDEROSA, et al. v. COCONINO, et al.
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    ¶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
    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).
    12
    PONDEROSA, et al. v. COCONINO, et al.
    Opinion of the Court
    CONCLUSION
    ¶39           For the reasons discussed above, we conclude the County
    properly 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 to enter a judgment in favor of the County on
    Appellees’ claims for declaratory and mandamus relief.
    :gsh
    13