{"id":182742,"date":"2015-06-17T18:34:00","date_gmt":"2015-06-17T23:34:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2015\/06\/17\/and-from-the-socialist-paradise-of-montana-wait-what-montana-whiskey-tango-foxtrot\/"},"modified":"2015-06-17T18:34:00","modified_gmt":"2015-06-17T23:34:00","slug":"and-from-the-socialist-paradise-of-montana-wait-what-montana-whiskey-tango-foxtrot","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2015\/06\/17\/and-from-the-socialist-paradise-of-montana-wait-what-montana-whiskey-tango-foxtrot\/","title":{"rendered":"And from the Socialist Paradise of Montana \u2026\u2026\u2026 Wait? What? Montana?!?!?! \u2026\u2026\u2026 Whiskey Tango Foxtrot?!?!?!?"},"content":{"rendered":"

The city of Missoula, Montana has apparently had enough of mismanagement of their water infrastructure by its Carlyle Group owned private water company, Mountain Water Company, along with the normal private equity hijinks, so they tried to buy it.<\/p>\n

The Carlyle Group refused, and so the city condemned the company, and seized it by eminent domain, and now Missoula has won a court victory confirming their right to seize the utility<\/a>: <\/p>\n

Missoula won its legal fight to take ownership of Mountain Water Co. and the city\u2019s drinking water system Monday.<\/span>

<\/span> In a 68-page decision, Missoula District Court Judge Karen Townsend said the city “carried its burden of proof” and showed that “its contemplated use of the water system as a municipally owned water system is more necessary than the current use as a privately owned for-profit enterprise.”<\/span>

<\/span> “Based on credible evidence at trial, the Court concludes that the object of this condemnation proceeding, the use of the water system, is a public use for which the right of eminent domain may properly be exercised” under Montana law, Townsend said.<\/span>

<\/span> The judge said she \u201cconsidered the broad range of circumstances,\u201d and weighed \u201cthe benefits to be derived from the proposed public use against the impairments to the existing use.\u201d<\/span>

<\/span> Her conclusion: \u201cThe proposed public use is more reasonable\u201d and \u201cproper.\u201d<\/span>

<\/span> The city made its case, she continued, and proved that \u201cthe taking is a more necessary public use.\u201d<\/span>

<\/span> The city did try to purchase Mountain Water Co. from its owner, global equity firm The Carlyle Group, Townsend said, \u201cand the final written offer was rejected.\u201d It is now, she said, Missoula\u2019s \u201cright to acquire\u201d the water system by exercising its power of eminent domain.<\/span><\/p><\/blockquote>\n

Basically, Mountain Water Company is not performing timely maintenance on the infrastructure<\/a> (after all, some resources have to go toward paying inflated private equity “Management Fees”):<\/p>\n

\u2026\u2026\u2026<\/span>

<\/span> The water system pumps groundwater from the Missoula aquifer through 37 wells and 327 miles of water main. The system serves 23,500 customers, with 1,500 of them outside the city limits. The city of Missoula estimates that an investment of $66 million to $95 million is needed to bring the system to industry standards.<\/span><\/p>\n