Esling v. Krambeck

• Decision Date: 21 May 2003
• Docket Number: No. 22473.,22473.
• Citation: 2003 SD 59,663 N.W.2d 671
• Court: South Dakota Supreme Court
• Parties: John J. ESLING, Holly Baker, Paul Baker, Gloria Baker, David Meredith, Steinmeyer Farms, Inc. and Save Centennial Valley Association, Appellants, v. Jerry KRAMBECK, Mayor of Spearfish, and the Common City Council of the City of Spearfish and the Lawrence County Commission, appellees.

663 N.W.2d 671

2003 SD 59

John J. ESLING, Holly Baker, Paul Baker, Gloria Baker, David Meredith, Steinmeyer Farms, Inc. and Save Centennial Valley Association, Appellants, v. Jerry KRAMBECK, Mayor of Spearfish, and the Common City Council of the City of Spearfish and the Lawrence County Commission, appellees.

No. 22473.

Supreme Court of South Dakota.

Argued January 14, 2003.

Decided May 21, 2003.

Reed C. Richards of Richards & Richards, Deadwood, South Dakota, Attorney for appellants.

John Fitzgerald, Lawrence County State's Attorney, Bruce Outka, Lawrence County Deputy State's Attorney, Deadwood, South Dakota, Attorneys for appellee Lawrence County.

Lester Nies of Hood, Nies & Dardis, Spearfish, South Dakota, Attorney for appellee Krambeck et al.

KONENKAMP, Justice.

[¶ 1.] In this appeal from a denial of a writ of certiorari, we review the circuit court's ruling that the City of Spearfish lawfully annexed territory under a voluntary petition for annexation. We affirm.

Background

[¶ 2.] A petition for voluntary annexation under SDCL 9-4-1 was presented to the Spearfish Planning Commission for concurrent annexation and zoning. The property involved is locally known as "Centennial Valley." It includes the county airport, a few small ranches, the Daryll Propp land (formerly the Frawley Ranch), and the John Esling ranch. The petitioned territory consisted of approximately 2,000 acres and shared a common border with the City of Spearfish. For zoning, the territory was to be designated as an AG Agricultural Conservation District with a Rural Service District tax designation, except the county airport, which was to be zoned for its use.

[¶ 3.] In September 2001, the Lawrence County Commission authorized its chairperson to sign the voluntary annexation petition to include the county owned airport. At the same time, under SDCL 9-4-5, the Lawrence County Commission passed a motion approving the city's annexation of unplatted lands described in the petition. A week later, the Spearfish Planning Commission scheduled a hearing on the voluntary annexation petition, and published a notice of public hearing on the matter. Approximately one month later, the Spearfish Planning Commission held its public hearing. Despite objections to the annexation by the applicants here, the Commission unanimously recommended that the City Council approve the annexation petition. After published notices, the City Council held three public hearings on the voluntary annexation. The following actions were adopted unanimously: Resolution 2001-33 for annexation, Ordinance 904 for zoning, and Ordinance 905 for the rural service district.

[¶ 4.] The City Council found that the total value of the territory subject to voluntary annexation was $1,913,730 and that the owners of $1,435,298 in value signed the annexation petition (89.94%).¹ In calculating the total value of the territory, the City of Spearfish included the insured value of the Lawrence County Airport public hanger and the value of the privately owned airport hangers on ground leases.²

[¶ 5.] To overturn the annexation, the applicants filed for a writ of certiorari. In its decision, the circuit court subtracted the value of the privately owned airport hangers from the total value, finding that the private owners did not constitute "owners of ... the ... territory sought to be annexed."³ Nevertheless, the court held that the insured value of the public hanger was properly included in the total value of the annexed territory and that the owners of more than three-fourths of the total value had signed the petition. The applicants appeal, asserting the following errors: (1) "The city and county exceeded their authority in accepting the values used in the voluntary annexation petition." (2) "The city exceeded its authority since the annexed area is not contiguous." (3) "The change of zoning in the annexed area is contrary to the initiated ordinance."

Standard of Review

[¶ 6.] Our review of certiorari proceedings is limited to whether the challenged court, officer, board, or tribunal had jurisdiction and whether it regularly pursued its authority. Peters v. Spearfish ETJ Planning Comm'n, 1997 SD 105, ¶ 6, 567 N.W.2d 880, 883. Certiorari proceedings "cannot be used to examine evidence for the purpose of determining the correctness of a finding...." Willard v. Civil Service Bd. of Sioux Falls, 75 S.D. 297, 298, 63 N.W.2d 801, 801 (1954). Construing a statute entails answering a question of law; thus, we review the circuit court's statutory interpretation de novo. Ridley v. Lawrence County Comm'n, 2000 SD 143, ¶ 5, 619 N.W.2d 254, 257

(citations omitted). The purpose of statutory construction is to discover the true intention of the law which is to be ascertained primarily from the language expressed in the statute. City of Rapid City v. Anderson, 2000 SD 77, ¶ 7, 612 N.W.2d 289, 291-92 (citations omitted). The intent of a statute is determined from what the Legislature said, rather than what we think it should have said. Id. Words and phrases in a statute must be given their plain meaning and effect. Moss v. Guttormson, 1996 SD 76, ¶ 10, 551 N.W.2d 14, 17 (citations omitted). In interpreting statutes, we presume that the Legislature did not intend an absurd result. Id. We review a trial court's findings of fact under the clearly erroneous standard and its conclusions of law under the de novo standard. City of Marion v. Rapp, 2002 SD 146, ¶ 5, 655 N.W.2d 88, 90.

Analysis and Decision

1. Value of the Territory

[¶ 7.] The applicants first contend that the circuit court erred in declaring it proper for the city to use the insured value of the public hanger. To address this argument, we review the language of SDCL 9-4-1. Voluntary annexation under that statute requires that the petition must be signed: (1) by not less than three-fourths of the registered voters, and (2) by the owners of not less than three-fourths of the value of the territory sought to be annexed.⁴ SDCL 9-4-1. The applicants do not challenge the first element.⁵ Rather, they dispute whether the second requirement was met, regarding the "value of the territory." They insist that the term "value" in SDCL 9-4-1 means only the "assessed value" of real property subject to voluntary annexation, and therefore, the circuit court erred when it upheld the city's decision to include the insured value of the public airport hanger in the total value of the annexed territory. On this precise point, the statute is silent.

[¶ 8.] Accordingly, we must ascertain the meaning of the term "value" as used in SDCL 9-4-1. Statutory wording is given its ordinary meaning, unless it appears from the context that another meaning is intended. Douville v. Christensen, 2002 SD 33, ¶ 11, 641 N.W.2d 651, 654. When a statutory term is not defined, we construe it according to its accepted usage. Spearfish ETJ Planning Comm'n, 1997 SD 105 at ¶ 13, 567 N.W.2d at 885. The ordinary meaning of the term "value" is "the monetary worth or price of something; the amount of goods, services, or money that something will command in an exchange." Black's Law Dictionary 1549 (7th ed.1999).

[¶ 9.] Several courts have declared that in voluntary annexations the "assessed value" of the property must be used. But those cases all dealt with statutes that included the word "assessed" or some variation of it. City of Phoenix v. State, 58 Ariz. 8, 117 P.2d 87 (1941); Thain v. City of Palo Alto, 273 Cal.App.2d 400, 78 Cal.Rptr. 240 (1969); Johnson v. City of Spokane, 19 Wash.App. 722, 577 P.2d 164 (1978). In contrast, SDCL 9-4-1 does not expressly state that the "value of the territory" must be the assessed value. If the Legislature had intended to limit "value" to "assessed value," it certainly could have done so. Without specific statutory direction, therefore, we think the question comes down to a matter of reasonableness.

[¶ 10.] With certiorari review limited to the question whether the city had jurisdiction and whether it regularly pursued its authority, we ask, did the city act in excess of its jurisdiction or in an irregular pursuit of its authority? Given the broad scope of the word "value" in SDCL 9-4-1, only an unreasonable application of the statute would constitute an act in excess of jurisdiction. Thus, the city's "action will be sustained unless in [its] proceedings [it] did some act forbidden by law or neglected to do some act required by law." Save Centennial Valley Ass'n, Inc. v. Schultz, 284 N.W.2d 452, 454 (S.D.1979) (citing State v. State Bd. of Assessment and Equalization, 3 S.D. 338, 53 N.W. 192 (1892)).

[¶ 11.] First, was it reasonable to include the value of the county owned hanger for purposes of SDCL 9-4-1? We conclude that it was. Lawrence County, as a body politic, has the right to petition the City of Spearfish to include its property within the city limits. After it is determined that the owner of the property in question may properly petition for voluntary annexation, SDCL 9-4-1 directs the city to consider the value of Lawrence County's territory (the airport) seeking annexation.⁶ The term "territory," as used in SDCL 9-4-1, is synonymous with the term "area" and the real property within that area. Real property consists of "land; that which is affixed to the land; that which is incidental or appurtenant to land; and that which is immovable by law." SDCL 43-1-3. Accordingly, it was proper for the city to consider the value of the airport land and the value of the airport hanger affixed to the land. See Johnson, 19 Wash.App. 722,

577 P.2d 164 (city owned property was included in the valuation for property seeking annexation); Thain, 273 Cal.App.2d 400, 401,

78 Cal. Rptr. 240 ("`value of the territory' means the value of land and improvements thereon").

[¶ 12.] Second, was it reasonable to use the insured value of the county owned hanger? Or, put another way, how should the property value of the Lawrence County Airport be reasonably...