Two years and $14 million later, Missoula wins right to buy Mountain Water

Missoula mayor John Engen atop Water Works Hill

Missoula mayor John Engen atop Water Works Hill

On Tuesday afternoon, the Montana Supreme Court upheld a district court decision forcing the sale of Mountain Water to the city of Missoula by eminent domain. It was the culmination of a fight that has lasted almost two years, beginning when the city offered multinational private equity fund The Carlyle Group $50 million for our water system in 2014. After Carlyle refused and Missoula started preparing its eminent-domain suit, the city estimated the total legal cost of condemnation at $400,000. As of this writing, we’ve spent $6 million, and we’ll likely be held liable for Carlyle’s $8 million in legal costs, too. But the important thing is we bought the water company—not for the $50 million we considered a fair price in 2014, but for $88.6 million. But we won, and Mountain Water is a good deal at any price, as the mayor expressed in this tweet yesterday:

That’s kind of infuriating. At a City Club forum in January of last year, before the value of Mountain Water had been established by a district court, I asked city council members at what threshold the purchase price of the water company would no longer save ratepayers money over the life of a 20-year bond. They didn’t know. The city had not run the numbers to determine at what point Mountain Water stopped being a good deal. Fifty million was a good price, apparently, and $50 billion would be too much. But within that range, no one could say exactly where a smart investment would turn dumb. Then-Councilman Adam Hertz said no such detailed financial analysis was available.

Engen insists this deal will save ratepayers money, and he admonishes us to study before we tweet. But he did not study before he embarked on the largest purchase in Missoula’s history. His insistence that those who criticize him base their arguments on careful examination of the numbers ignores the fact that he committed to this plan without studying those numbers himself. It’s a bad look, and so is the lawsuit alleging that the $8 million Carlyle spent on legal defenses was excessive. The city is going over Carlyle’s expenses with a fine-toothed comb, looking out for taxpayer dollars in the matter of dinner at Hooters, for example, when it overshot its own estimated legal bill by 1400 percent. You can read all about it in this week’s column for the Missoula Independent.

I’m glad we won City of Missoula v. Mountain Water. It will be good for this town to own its water system. But I don’t know whether it will be good for ratepayers to have bought it for $89 million plus $14 million instead of $50 million. Apparently, neither does anyone in city government. That’s the problem. The city didn’t perform its due diligence on this deal, and now we have committed to a massive investment that may or may not save us money over the next two decades. It doesn’t matter. We just did it.

Ways to lose to Donald Trump: Run on land war in Asia

As Vizzini in The Princess Bride, Wallace Shawn taught us a classic error.

As Vizzini in The Princess Bride, Wallace Shawn taught us a classic error.

Now that Donald Trump is the presumptive Republican nominee, Hillary Clinton is guaranteed to become president. It’s obvious Trump can’t win. He’s utterly unqualified. His negatives are too high. Everyone of sense can see he is doomed in the general, just as we all knew his candidacy was going nowhere in the primaries. Okay, so he won almost all the primaries, but that was a fluke. This time, there’s no way. Democrats will keep the White House in 2016, because all of Trump’s signature issues appeal to fundamentally limited subsets of voters. He’s not selling anything the majority of Americans can agree on. On a completely unrelated note, the Intercept has reported that Trump called Hillary “trigger happy” at a rally in Lynden, Washington, where he warned that she would embroil the United States in another land war in the Middle East. Meanwhile, Hillary is courting neoconservatives put off by Trump’s isolationism. Here’s Republican strategist Steve Schmidt:

Donald Trump will be running to the left as we understand it against Hillary Clinton on national security issues. And the candidate in the race most like George W. Bush and Dick Cheney from a foreign policy perspective is in fact Hillary Clinton, not the Republican nominee.

Finally, the Democrats have an opportunity to position themselves as the party of hawks—and at a moment when war is so popular!

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Is this the handsomest GOP ticket ever?

Paul Ryan addresses a journalist who was mean to Mitt Romney last week.

Paul Ryan was a high school prom king. Also his dad died when he was young, which is sad and uncool, and now he wants your dad to die too. Mitt Romney picked this guy to be his running mate Saturday morning, in a clever bid to capture a bloc of voters who might otherwise have gone to Obama: Tea Party members. Actually Ryan is a respected representative whose traction among the conservative wing of his party would help President Romney corral a potentially rebellious Congress. Or Candidate Romney decided he was going to lose in November unless he did something crazy. It depends whom you ask.

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