2005 page one
Wayne Langston was appointed in an illegal "closed" session, did not reside or vote within the LMUD boundaries and never received a single vote to remain on the LMUD Board in ten years.
Remember when...
Doolittle advocated dissolving WAPA
The January 24, 2001 LMUD minutes reveal that U.S. House of Representative Doolittle, according to Frank Cady, advocated the abolition of Federal "cheap power" provided by the Western Area Power Administration. LMUD relies on its allocation of this cheap federal power to keep rates down.
Remember when...
LMUD Board suspends their salaries
The Lassen Municipal Utility District was facing bankruptcy. The Board had purchased excess power on speculation when the bottom dropped out of the market and they could not sell it. This resulted in a $8.7 million dollar loss for the utility district. The Board was asked to give up their salaries on January 24, 2001. This Board was subsequently recalled in March 2002.
Remember when...
LMUD to receive $9 million from PSREC
LMUD told the ratepayers that they had a study done by Powers Engineers to evaluate the value of LMUD customers being transferred to PSREC. No study was ever done and the ratepayers were lied to once again. LMUD has received $1.25 million for the transfer and that money is gone......
Remember when...
Arrowrock was "free" energy
Frank Cady presented the Arrowrock Hydroelectric project in Boise, Idaho to the LMUD Board but lied about every single detail of the project. Cady, on December 12, 2001, his promised to release the "Arrowrock Feasibility Study" to the ratepayers.
Remember when...
LMUD never approved Arrowrock money and then altered the minutes.
On April 25, 2001, Louie Templeton, LMUD President, stepped down and gave the gavel to Darrell Wood. Darrell Wood made a motion "as chair" and Louie Templeton seconded it from the floor. The Chairman, Darrell Wood cannot make a motion. No vote was taken or needed. They all knew that the Motion was improper and void. Frank Cady then had Keri Richards sign an affidavit that a unanimous vote was taken when it was not.
Remember when...
NCPA & LMUD....the "party"
In April 2001, only the General Manager attended the NCPA meetings. Now they send five or six people at a cost of thousands of dollars to the ratepayers. This continues to be a gross misuse of public funds.
Remember when...
Frank Cady made phony e-mails to get LMUD to sink another $100,000 into the "bogus co-generation" plant
2005
December 24, 2005
LMUD TO RAISE RATES WHEN IT CAN HURT RATEPAYERS THE MOST, winter......
Other small utilities have reduced expenses to avoid increases in rates.
The City of Lodi reduced operating and non-essential service expenses by 20%............but
The City of Lodi has been Honest with their ratepayers
Frank Cady and Don Battles teamed up on July 25, 2001 and lied to the public about "due diligence" on the sale of LMUD customers to PSREC. Don Battles claimed that LMUD performed a study on the value of these facilities and the cost to upgrade prior to signing any agreement with PSREC .
THERE WAS NO STUDY AND INSTEAD OF THE "ALLEGED" $9 MILLION DOLLARS DARRELL WOOD CLAIMED LMUD WAS TO RECEIVE FOR 10% OF LMUD'S CUSTOMERS, LMUD received less than $1.5 million.
FRANK CADY DEALS NOT GOOD FOR RATEPAYERS
December 21, 2005
Frank Cady immediately approached Nancy Cardenas to remove the Phase II Agreement Lodi Project from the Agenda after he saw KWH member, Eileen Spencer in attendance.
The Reason:
The Lodi Project doesn't exist
Frank Cady, after the close of the meeting, quickly stated, "The Phase II Agreement has not been finalized by NCPA. This project has not been built yet and is a 250 MW project". It was said in an act of desperation.
Sorry, Frank, you were already busted............................
NOTE: It is unknown what part NCPA played in this, since all of the documents were created and submitted were for internal use. No Phase I or Phase II Agreements were submitted by NCPA to LMUD that have been released.
The Truth:
NCPA (CVP,Corp) owns a small 50 MW "peaker plant" (built around the late 1980's) that sits near the City of Lodi's waste water treatment facility between Highway 12 and Highway 5. This facility is a used only for peak power, otherwise it remains unused. There is a PGE gas main near this 50 MW facility also.
The City of Lodi is a NCPA member and voted to participate in the "proposed" project, but reports no activity other than a "proposed" agreement to lease the land to NCPA should they decide to build a larger facility on this site. The proposed facility (gas-fired power plant) has never moved forward due to previous hurdles, some say "unsurpassable" hurdles. The project appears not to be "cost effective".
Where have we heard that before: NCPA co-generation plant, Arrowrock Hydro Project...all Cady promoted projects.
NO FIVE YEAR OLD 525 MW FACILITY EXISTS IN LODI
Frank Cady and Jaimee Richey committed fraud on the LMUD Board and ratepayers. If Jaimee Richey has invoiced LMUD for any work on this fraud, she should return the money and immediately withdraw from representing LMUD. Frank Cady should be terminated. The District Attorney should be advised of this fraud.
Frank Cady has brought phony projects to this Board before and even convinced this Board of Directors to purchase a power plant that didn't exist. The Arrowrock scandal. The ONLY ONES THAT HAVE EVER PROFITED FROM THESE BOGUS PROJECTS ARE THE ATTORNEYS. When does it stop ?
Frankly speaking, the Ratepayers get screwed every time.
December 20, 2005
LMUD SCHEDULES QUESTIONABLE "SPECIAL MEETING" for 6:30 PM
LMUD must give the public 24 hours to hold a "special meeting". This meeting was called at the last minute and may not comply with the Brown Act. This has never stopped LMUD before.
This will be a closed session in regards to property adjacent (The adjacent property is owned by Jack Beterbide) to the LMUD maintenance yard on Chestnut Street (This is the property where there were reports of hazardous waste dumps.) in Susanville.
Frank Cady in violation of his LMUD contract link
LMUD BOARD TO REVIEW GENERAL MANAGER'S PERFORMANCE IN CLOSED SESSION, at December 20, 2005 meeting @5:30 PM
December 19, 2005
LMUD WILL RAISE RATES ON JANUARY 1 NOT FEBRUARY 1
LMUD CANNOT JUSTIFY THE FIVE CENT INCREASE
RATEPAYERS DOOPED AGAIN
Like in 2001.....ratepayers must pay for LMUD's bad management...AGAIN ?
LMUD HAS NO AGENDA FOR THE PUBLIC
LMUD failed to post the December 20, 2005 Agenda on their website and has failed to make copies of the Agenda available for the public.
LMUD TO RELEASE THE ANNUAL AUDIT AT 12/20/05 MEETING
LMUD'S FLIM-FLAM MAN IS INTRODUCING PHASE II OF THE "LODI PROJECT".
Like Arrowrock, NCPA's Co-generation plant and others.........you will not find a Phase I Agreement. Frank Cady depends on no one keeping track of all of his scams. Well, we are !!!!!
These bogus projects historically have been invented to create legal work for Cady, Pardee and Richey LLP, Cady's law firm.
They have never been any benefit to the ratepayers.
LMUD BOARD TO REVIEW GENERAL MANAGER'S PERFORMANCE after six months
With any luck they will conclude that he has been and still is incompetent
December 17, 2005
LMUD BOARD MEMBER WOOD AND FRANK CADY HIDE EXPENSES
Nothing new for these two.......
........Nagel and Langston hid their Arrowrock trip expenses in Frank Cady's legal invoice. Cady now refuses to disclose his legal invoices.....now we know why the LMUD Board is not turning any Expense Reports in. KWH found these records: LINK
December 16, 2005
LMUD BOARD GIVES STAFF, MANAGEMENT, LEGAL COUNSEL 2006 CADILLAC'S ?
No, they really didn't but the wasteful spending amounts to giving every LMUD employee, LMUD management and attorneys a brand new 2006 Cadillac.
"BUNDLED" V "*UNBUNDLED"
*BREAKDOWN OF COSTS OF ENERGY ON LMUD BILLS
Frank Cady and the LMUD Board sold the ratepayers a bill of goods on this "adjustable rate schedule". Ratepayers are paying $.055 a KWH for electricity. This doesn't change even if you break it down by milicents. LMUD's power contracts have stabilized. Even Frank Cady states this in his General Managers report.
What has increased (LMUD will not break down (unbundle)) the cost of overhead.
This includes continued useless studies, bogus projects, excessive travel, meaningless expensive memberships, abusive decisions on questionable purchases, hidden board expenses.
LMUD and Frank Cady do not want to "UNBUNDLE" their wasteful and irresponsible spending.
THERE IS NOT REASON TO RAISE THE RATES BY $.05
The LMUD Board could "easily" reduce their spending by 5% and not increase the rates.
This fiscally irresponsible board will maintain their expensive lifestyle at the ratepayers expense............
December 13, 2005
LMUD HAS OVERSPENT, MISMANAGED AND LIED TO THE RATEPAYERS
Any rate increase, at this point in time, will cover the increasing reckless, frivolous and self serving expenses.
Rates are stable and there is no reason whatsoever to raise electric rates. The $ .115 rate is sufficient to cover power and operating costs.
"Kan We Help" warned the public for past six months
Cady's eight page "unbundled" diatribe of the $ .055 cost of electricity has nothing to do with the $ .06 management expense that LMUD and Cady have failed to address. Cady has presented no willingness to reduce the cost of operating expenses (travel, legal, benefits).
This LMUD Board with the help of Frank Cady has baffled the public with horse shit. They continue to waste money at the ratepayers expense......AND THERE IS NOTHING THE RATEPAYERS CAN DO NOW, BUT WATCH AND PAY AND PAY AND PAY.
July 1, 2004
December 9, 2005
LMUD BOARD RECEIVES ELECTRICITY FREE
The LMUD Board can double the rates.......they receive their electricity free.
A BENEFIT THEY ARE NOT ENTITLED TO: Board Benefits
KWH asked Nancy Cardenas....straight up......if she receives her electricity as a "benefit". She did not respond.
Two years ago, KWH requested a print out of the Directors expenses paid. A credit was given for "utility bills"......
THEY WANT TO RAISE OUR RATES......IT WON'T EFFECT THEM
IMMORAL, UNETHICAL.....UNFAIR
December 7, 2005
LMUD HIDING 2004/2005AUDIT
FRANK CADY "AMENDS" HIS GENERAL MANAGERS REPORT ON THE ADJUSTABLE RATE POLICY PRIOR TO THE BOARD MEETING AND THE BOARD STILL HOLDS THE 12/6/05 PUBLIC HEARING Amended Report
THE LMUD BOARD WILL LAUNCH ARROWROCK- BOONDOGGLE III
Another NCPA project......... NCPA'S, CVP, cORP.
psrec/ncpa
power plant - scam ii-terminated
there is a reason this
looks just like another Arrowrock... Arrowrock
power plant-scam I- terminated
This LMUD Board has a bad habit of not releasing the Board packet, to the public, prior to the meeting.
LMUD IN NEGOTIATIONS FOR REAL PROPERTY?
Why? They are broke?
Are they selling the LMUD yard on Chestnut or buying Beterbide's property?.....or is this just another Cady diversion to pad his legal practice (Cady, Pardee & Richey LLP) with more baseless charges
LMUD agenda, November 9, 2005
LMUD property on Chestnut
December 6, 2005
LMUD President asked if LMUD pays her utility bill as a benefit.
NO ANSWER WAS RECEIVED
Is LMUD management & staff receiving free electricity also?
No provision has ever been passed to give the Board of Directors the benefit of free electricity
Western Area Power Administration asks LMUD for Letter of Credit and $1.8 million dollars
Western Area Power Administration (WAPA) requires a Letter of Credit from LMUD before a power purchase agreement can be secured. LMUD must withdraw $1.8 million dollars from the $3,000,000 "Rate Stabilization Fund" to secure this Letter of Credit. Is LMUD even in compliance with the Bondholders?
However, WAPA must realize that a letter of credit does not protect WAPA from a utility district filing for bankruptcy.
LMUD is withholding the 2004/2005 Audit until after this power purchase agreement is signed.
LMUD paid thousands of dollars to NCPA (Northern California "Party" Association) to evaluate LMUD's power needs. This is the same organization that brought LMUD the bogus co-generation project, which is now defunct. This was all money down the drain...and the ratepayers saw no report, no results...nothing from NCPA or LMUD.............NOTHING.
The LMUD Board, Fred Nagel (a PSREC customer), Wayne Langston, Nancy Cardenas, George Sargent, Darrell Wood and Frank Cady have been refining their lies in an attempt to convince the ratepayers that LMUD has not been mismanaged. Who can we blame for this BRINK OF BANKRUPTCY?
Question:
How long has LMUD known about WAPA's "FULL SERVICE" PROGRAM? When......When.....When did LMUD sign up for the "full service" program ?
Answer: ?
December 5, 2005
LMUD BOARD DECEIVED PUBLIC
PUBLIC HEARING WILL BE FOR
RAISING RATES "AT WILL"
The LMUD Board voted to hold a Public Hearing on the Line Extension Policy at the November 22, 2005 Special meeting.
As KWH predicted they are not going to hold a public hearing on this subject but INSTEAD will vote to approve the "Adjustable Rate Increase" policy that enables this "irresponsible" Board of Directors to continue their reckless spending and raise rates "at will" to cover the fact that they have not shown any fiscal responsibility, at all, for the last three years. With the help and counsel of Frank Cady, this Board has run this small utility into the ground.
LMUD could reduce their spending by 5% and avoid any increase in the rates
LMUD is desperate........ This is the single most important vote that the LMUD ratepayers will face, EVER...and the LMUD Board had to deceive the public to do it.
December 2, 2005
LMUD BOARD MAY HAVE SECRET AGENDA ON DECEMBER 6
Frank Cady is trying to "sneak" the "adjustable rate policy" in the December 6, 2005 "Special" LMUD meeting. The public has been lead to think that the "PUBLIC HEARING" will be for the inane "line extension policy" only.
The LMUD Board placed Agenda Item 5A4 & 5A5 on the November 9, 2005 Agenda. Agenda Item 5A4 (Line Extension Policy) is clearly a statement by this Board that they intend to charge developers the cost of their improvements.
But LMUD supposedly was already doing this. This LMUD Board, however, would not release any information on any payments from Banner Medical Center on their new facility until the issue was forced by KWH members, to collect a very long outstanding balance. Frank Cady sits on the Banner Board of Directors. Conflict of Interests are not new to Frank Cady...........
LMUD Agenda, November 9, 2005
November 29, 2005
CALIFORNIA PUBLIC UTILITY COMMISSIONS "Office of Ratepayer Advocates" says that LMUD must comply with CPUC 14403
The LMUD Board cannot hold a public hearing "within" 30 days of the submittal of the General Managers Report. According to LMUD's Agenda they received and accepted the General Manager's Report at the November 22, 2005 Special Meeting. The General Manager's Report is not in compliance with CPUC Code 14403.3 and cannot be accepted by the LMUD Board.
The California Office of Ratepayer Advocates states that LMUD and SMUD are the only two "electrical districts" within the Municipal Utility Act. LMUD must comply with 14403 and 14403.3 . Frank Cady complied with both of these PUC codes in 2001 and he must comply now. The Division 6 Codes have not changed since 2001.
To comply with the Municipal Utility Act, LMUD cannot hold a Public Hearing on any rate increase until after December 22, 2005 but before February 22, 2006.
LMUD plans on raising the rates on February 1, 2006, so there is no reason not to comply with the law.
The LMUD Board also received a General Managers report for the "Adjustable Rate" policy (Agenda item 5A5).
The LMUD Board then scheduled a Special Board Meeting for November 22, 2005 to set a date for a public hearing for the "LMUD's Electric Service Policy aka Line Extension Policy.
NOTE: The LMUD Board did not agendize any "Adjustable Rate" policy at the November 22, 2005. If they hold the a public hearing, on December 6, 2005, they can only discuss the "Line Extension Policy" and not the "Adjustable Rate" policy.
BEWARE: If the LMUD Board is allowed to pass the "Adjustable Rate" policy, they can adjust rates, at will, without any "honest" accountability to the ratepayers. This is a very dangerous policy for LMUD ratepayers to live under when this Board of Directors has refused to adjust their reckless and irresponsible spending.
LMUD Agenda, November 22, 2005
November 30, 2005
JOHN DOOLITTLE UNDER SCRUTINY OF GRAND JURY AND DEPARTMENT OF JUSTICE
Sacramento Bee, November 30, 2005 article continues
Kan We Help requests LMUD financials from 2002-2005
LMUD attorney abuses her authority and creates one delay after another..........
LMUD is not in control of their public records and hasn't been for a very long time. Jaimee Richey, not the LMUD Board, is paid to decide which document is a disclosable document and what is not. The District finally has a General Manager that has experience on "what is and what is not" disclosable and the Board still must waste money on an outside attorney to handle all public records requests............Copy of the Request .
Jaimee Richey refused to take a call from KWH's attorney
President Cardenas was asked to help, but she found that she has no power over Frank Cady or Jaimee Richey.
November 28, 2005
LMUD BOARD TO RAISE ELECTRIC RATES at DECEMBER 6, 2005 meeting.....New $.12 per KWH effective on February 1, 2006
The LMUD Board placed this ad before any vote was taken to hold a Public Hearing.
The LMUD Board plans to approve an "adjustable rate every quarter" policy on December 6.
This means that they will never have to hold a public hearing again to raise rates and can raise electric rates at will.
This is a dangerous policy, to allow this LMUD Board to adopt, when they have shown no fiscal responsibility. Their wasteful spending has put them on the brink of bankruptcy again.
LMUD'S 2004 Promise not to increase rates
LMUD has refused to reduce their wasteful and irresponsible spending.
November 23, 2005
LMUD'S ANNUAL AUDIT MAY SHOW AS MUCH AS A $4.5 MILLION DOLLAR DEFICIT.
Where is the 2004/2005 LMUD Audit ?
LMUD will most likely hold another "Special Meeting" on Sunday to release the 2004/2005 Audit results of another excessive year of spending.
Steve Pezzullo, LMUD Auditor, asked for LMUD's Treasurer Nancy Cardenas's resignation after the LMUD Audit was released for 2003/2004. LMUD overspent their Operating Budget by $1.2 million.
The LMUD Board made no cut-backs in excessive travel, useless studies, continued & huge payments to ex-employees (Battles, Leiber, Twitchell), computers, redundant legal research and fees, redundant and useless memberships.
THE RATEPAYERS WILL PAY AGAIN BY MORE RATE INCREASES
November 20, 2005
LMUD TRIES TO HOLD PUBLIC HEARING ON DECEMBER 6 FOR
ELECTRIC
RATE
INCREASES
The public hearing cannot be set before December 17, 2005 LMUD RESOLUTION 2001-03
14403- Public Hearing Requirements
No evidence that LMUD will reduce spending to avoid any increase.............very sad management
The
LMUD General Manager attempted to raise electric rates without a public hearing.
General Manager Cady claimed that it was only a "policy"
change and LMUD was not obligated to hold a "PUBLIC HEARING". He
was wrong.
LMUD has scheduled a Special Meeting on November 22, 2005 to set the date of the public hearing, even though they have already decided on December 6, 2005? The only problem is that the law says that the public hearing can be not less than 30 days after the General Manager's report is filed. Cady invoked CPUC 14403 in 2001 when he wrote the Resolution 2001-03 to increase the rates then....Nothing has changed.
Cady used the term "Line Extension Policy" to deceive the public that it was a rate increase, now he is calling it "LMUD's Electric Service Policy". Why can't he be honest and just call it a "Rate Increase Policy"....that's what it is.
The public hearing cannot be set before December 22, 2005
BUT FRANK CADY, A PRACTICING ATTORNEY, THAT HAS 14 YEARS OF UTILITY EXPERIENCE................KNEW THAT. ? He wrote Resolution 2001-03.
MAYBE THIS ADVICE CAME FROM THEIR NEW LEGAL COUNSEL and FRANK CADY'S LAW PARTNER, JAIMEE RICHEY.......................
WHY CAN'T CADY BE HONEST?
14402- Public can take action against increase in rates
November 17, 2005
BAD JUDGES TARGETED
GOOD JUDGES, NOT TO WORRY...
......GOOD JUDGES FOLLOW THE LAW
November 16, 2005
"GREAT" (?) MANAGEMENT IN LASSEN COUNTY GOVERNMENT
Lassen County Supervisor Chapman Correctly Objects to County Clerk fee increases
County Clerk Theresa Nagel tells the County Supervisors that she needs to raise her rates for services to cover her costs.
"BAD" TREND FOR THE PUBLIC (raise public rates without first reducing costs)
LASSEN COUNTY
Like her husband, LMUD Director Fred Nagel, she just makes up an unverifiable "cost". If the "cost" was valid, she would increase the rate to cover the cost, right? ......WRONG......
Increases from 10% to 300%.......?
LASSEN MUNICIPAL UTILITY DISTRICT
LMUD claims that it cost $25.00 per month to read each meter and raised the charge to $8.00. If it cost $8.00 a month to read a meter, LMUD is doing something VERY wrong............ This is a 15-45 second task. LMUD has managed to get away with charging the ratepayers twice for services that are included in the $11.5 per KWH "commodity" fee.
LMUD has refused to reduce their wasteful spending
Now LMUD will raise the commodity fee, $11.5 per KWH, at will.
November 15, 2005
CADY'S CORRUPTION COMPLETE
Frank Cady's law partner, Jaimee Richey, is now in place as LMUD's General Counsel. There isn't a person in Lassen County that would've predicted any other outcome.
Jaimee Richey will not have to do anything for her $15,000 a month.
Frank Cady is now withholding the supporting documentation from her invoices. Cady has released all law firms supporting documentation (properly redacted) prior to hiring Richey.
Frank Cady profits from being LMUD's General Manager and a partner in Cady, Pardee, Richey LLP. Flagrant Conflict of Interest and there is nothing anybody can or will do about it.
A Limited Liability Partnership has at least two partners. The Secretary of State says that Cady & Richey are partners
.Secretary of State registration of Cady, Pardee & Richey LLP
Lassen County Times, 11/15/05:
"Cady chose to leave the room during the discussion on Richey's hiring because before leaving his law practice he profited from Richey being his law partner" "I am precluded from participating in any of the process of hiring general counsel and therefore, I am not a member of the Ad Hoc Committee nor have I reviewed or made any recommendation concerning the responses to the RFQ"
Cady did what he had to do. The Conflict of Interest Code and the FPPC says that he can not participate in the hiring his law partner and ......he can't hire his law partner. Cady leaves the room when ever the LMUD Board considers any employment contract or action with his law partner, because he knows that when all is said and done.......he and Richey lied to obtain their public contracts.
The truth,
If the public thought that their voice was silent before it is now dead.
There will be no restraint on Cady's wasteful spending, parties, travel, entertainment expenses, baseless contracts to his friends for "studies". There will not be anyone, including this Board (Wood is in partnership with BKC which is owned by Frank Cady and Craig Kellison) that will be able to control Frank Cady and Jaimee Richey. NO ONE.....................SHORT OF LEGAL ACTION.
LMUD IS NOW THE POSTER CHILD FOR PURE UNADULTERATED CORRUPTION
LMUD Board must hold a public hearing if they want to raise rates
The LMUD Board of Directors intend to violate the law and just raise our rates without a public hearing. The public hearing must be within 90 days of the General Manager's Report. The public hearing must be held before February 9, 2006.
LMUD's $300,000 lawyers told them that they can raise rates without bringing it before the public....so it must be true. 14403-General Manager report to the District.
This may be the sleaziest act on record for LMUD
November 14, 2005
STEWART, NAGEL, CADY
ALTER FINANCIAL REPORTS TO LMUD BOARD...WHY?
There are many questions on the erroneous entries on the financial reports
Cady reports that LMUD has 11,900 meters, but the revenue does not reflect a 23% increase, only a continuous decrease in revenue. Less customers, less revenue, less power needed
2003/2004 REVENUE $17,100,781 * 2004/2005 REVENUE $16,468,554
Projected 2005/2006 REVENUE $15,989,513 (4% decrease in revenue from previous year)
LMUD REPORTED 10,500 METERS IN 2004 WHEN THEY GAVE PSREC 1,000 METERS.
LMUD 2005/2006 BUDGET PROJECTS DEFICIT OF $1.2 MILLION
LMUD MUST REDUCE OPERATION COSTS BY 5%
LMUD Financial reports do not balance with LMUD's withdrawals from the Reserve Funds
Wire Transfers-April-October 2005
April/2005 Financial Report May/2005 Financial Report
June/2005 Financial Report July/2005 Financial Report
August/2005 Financial Report September/2005 Financial Report
November 11, 2005
LMUD MAKING BOND PAYMENTS FROM RESERVE ACCOUNTS
Is LMUD in compliance with the Bond Covenants?
FRANK CADY, LMUD GM/legal council, FINDS A WAY TO SUBMIT A PROPOSAL FOR A RATE ADJUSTMENT CLAUSE
Energy Contracts have "fixed" amounts
POWER & DELIVERY COST ADJUSTMENT MECHANISM
LMUD MUST HOLD ANOTHER PUBLIC HEARING 14403-General Manager report to the District
Proposed initial rate increase under this plan (5% increase)
The Frank Cady and the old "Recalled Board" (LMUD now has two of the 2001 Directors, Wood and Langston, again) attempted to impose a rate that was adjustable in 2001. It was a bad decision then and they decided not to go down that road.
The danger of an "adjustable rate", for the ratepayers, is that this LMUD Board will abuse this and could raise the rates because of increases in operation & maintenance costs and claim that the energy prices have gone up.
This LMUD Board has a history of not being truthful
This is a very dangerous tool to give a Board of Directors that refuses to curb their wasteful spending habits.
FRED NAGEL (a PSREC customer) states on October 19, 2005, that "LMUD is operating in the red and reserves are being depleted"
A competent Board would immediately look at the maintenance and operations costs and reduce all unnecessary expenditures, not this Board. They want to put the burden of their mismanagement on to the ratepayers again.
LMUD continues to spend and spend. KWH gave the Directors a chart to reduce spending by over $1,000,000 a year immediately. The Directors have ignored all requests to stop their reckless spending and the reserves keep shrinking.
IMMEDIATE REDUCTION IN SPENDING
November 9, 2005
LMUD General Manager Attempting to create new fees
Ratepayers Beware
????????????????????
Agenda item 4: Line Extension Policy Fees
Agenda item 5:Rate Schedule for Power & Delivery Cost Adjustment Mechanism
LMUD signs long term power agreements which stabilized energy costs. No new fees and no increase in rates.
REDUCE SPENDING
*******************
ON FEBRUARY 14, 2001 LMUD DIRECTORS VOTED TO ADD A $ .035 SURCHARGE ON RESIDENTIAL CUSTOMERS
The 2001 LMUD Board of Directors (recalled in March 2002) considered OPTION 5, a Rate Adjustment Clause (RAC), but did not include this in Resolution 2001-03. This RAC would have allowed LMUD to adjust the rates should energy prices fluctuate. (See also OPTION 1-4).
The danger of Option 5, for the ratepayers, is that LMUD could raise the rates because of increases in operation & maintenance costs and claim that the energy prices have gone up.
LMUD MUST CURTAIL THEIR RECKLESS SPENDING.
OPTION 5 NOT INCLUDED IN SURCHARGE RESOLUTION
RESOLUTION 2001-03, however did include: "that this surcharge be reviewed within 60 days after the end of each fiscal quarter for the purpose of determining the continued necessity of the surcharge and/or its amendment, modification, or revocation.
LMUD NEVER COMPLIED
The 2001 LMUD Board of Directors (which included Darrell Wood) promised to rescind the $ .35 surcharge in January 2002. This promise was never kept. The spending spree began.................. The results.......LMUD is BROKE.
November 8, 2005
FRANK CADY SIMPLY, CAN NOT TELL THE TRUTH
In the General Managers "rush to deception" he forgot to include LMUD's "operations costs".
According to LMUD's General Manager's November Ruralite Report, it takes all of the $ .115 to buy electricity and nothing to run the District. He offers a "lightbulb"chart attempting to represent, to LMUD customers, that the current rate is consumed solely for the purchase and distribution of electricity.
If the LMUD General Manager/Legal Counsel would have stated that $ .05767 of the $ .115 per KWH was spent on acquiring and distributing electricity....it would have been closer to the truth. But he did not do that.
However, the LMUD General Manager/Legal Counsel, Frank Cady, is preparing to ask for a COMMODITIES RATE INCREASE. Frank Cady is simply not capable of being straight with the public....
The LMUD Directors, with the help and counsel of Frank Cady, have managed to run this small utility district into the ground. They are CASH POOR, because of their spending habits. This has not occurred because of the energy market, but just bad management.
November/2005 Ruralite, General Managers Report
November 7, 2005
JAIMEE RICHEY LIED ABOUT BEING A "Professional Corporation"
KWH filed a complaint with the California Bar Association against Richey's recent actions with the Lassen Municipal Utility District
Local attorney, Jaimee Richey has been advertising that she is a "Professional Corporation". The California Bar Association states that she has just registered as a P.C., on November 4, 2005.
WHAT DOES THIS SAY ABOUT THE LMUD DIRECTORS TOLERANCE FOR WRONG DOING?
Richey and Cady are still registered as partners of "Cady, Pardee & Richey LLP".
Cady & Richey owned 60 S. Lassen on July 5, 2005 and lied to the LMUD Directors to obtain public contracts.
Cady owns 1/2 of 60 S. Lassen Richey owns 1/2 of 60 S. Lassen
Link to Cady/Richey Complaint Complaint Exhibits
DO THE LMUD RATEPAYERS WANT ANOTHER LIAR AS GENERAL COUNSEL?
Frank Cady now is attempting to make his law partner LMUD's General Counsel................Conflict of Interest....most definitely.
LMUD TO LOOK AT RAISING RATES AGAIN
LMUD General Manager is up to no good again........ Frank Cady is proposing to look at fees for line extensions and power and delivery cost adjustments (???).
DON'T BE FOOLED AGAIN
Both of these expenses are included in the commodities charge to the ratepayers (the $ .115 per KWH). The power contracts are stable, the operational costs are "level" according to this General Manager.
LMUD must look at reducing their operational expenses before raising anymore rates; start with memberships, redundant legal representation, travel, useless studies.............
This LMUD Board has wasted more money then the "Recalled Board" could have even thought about spending. When does it stop?
LMUD Agenda, November 9, 2005 @5:30 PM
November 6, 2005
Northern California "Party" Association
Frank Cady, a few LMUD Board Members (Nagel, Wood & Langston), Don Battles and Jaimee Richey have "partied" at NCPA functions at a cost of thousands of dollars to the LMUD ratepayers. Benefit to the ratepayers, zero benefit.
The latest NCPA function (9/21/05-9/23/05) was at Squaw Valley.
Wayne Langston and Darrell Wood's expenses have been hidden somewhere. Public Record Requests revealed that Frank Cady, in the past, inappropriately has hidden Board expenses in his legal invoices to LMUD. Frank Cady is now withholding his legal invoices................
Ratepayer Puzzle: How much was spent on.... just this party?
Where is the September 20-23 NCPA meeting on Cady's Expense Report?
Fred Nagel was the only Board Member to submit an expense report. No expense reports were submitted by Wood or Langston according to Frank Cady. Jaimee Richey attended this function, but since she is hiding her LMUD invoices, it is unknown whether she charged LMUD for her time and for Langston and Wood's expenses also. The Board voted to pay only her expenses.
LMUD ratepayers paid all of Don Battles expenses to attend this three (four days for Frank Cady and Darrell Wood) day event.
FRANK CADY CHARGES $2340 FOR HIS AIRPLANE AND RECEIVES ANOTHER $1200 FOR CAR ALLOWANCE ?
Ratepayers: Remember this when LMUD wants to raise our rates. LMUD has not considered ANY REDUCTION OF EXPENSES
NCPA'S CO-GENERATION PROJECT MAY BE GONE....
but the NCPA GIANT SUCKING SOUND still needs to be monitored...........
November 3, 2005
Property Owners of Vacation Homes Outraged at being called "transients"
Property Owners of vacation homes have inundated this website with their anger and frustration over the treatment by LMUD.
Their main complaint seems to be that they pay all year round for water, sewer, property taxes, for schools and electricity when they only use these services for a few months out of the year.
LMUD could not justify a $4.50 monthly increase let alone a $25.00 increase in the "Basic Charge" (now referred to as a facility charge). LMUD is now charging the ratepayers twice for the same service, if you follow the General Managers report.
LMUD Board is grossly mis-managing the District.
If the actual cost was $23.00, which it is not, the LMUD Board was obligated to raise the fee to $23.00. The reason they didn't...the Basic Charge is for customers that don't occupy their property but still want their electricity connected......LMUD did not tell the truth.
November 1, 2005
LMUD INTENDS TO HIDE JAIMEE RICHEY'S LEGAL FEES
Jaimee Richey, Frank Cady's law partner, has been submitting huge unverifiable legal invoices to LMUD. Frank Cady has decided after three years of releasing legal invoices in their entirety, that he will not release Richey's legal invoices to KWH, the public or anyone else.
The reason: Richey and Cady cannot justify these huge amounts they are billing LMUD. LMUD has no pending litigation, no legal work other than what Richey and Cady invent.
NOTE: LMUD claims that they are advertising for an attorney but their ad doesn't appear in the classifieds. General Manager Cady does provide the copy for the ad but no ad appears in the newspapers that they claim to be in.
Cady and Richey lied to get these contracts and now are in a position to hide every penny of their over-billing. This is public money..................our money.
Kan We Help has three years of Cady's invoices and all other legal invoices from a myriad of law firms presently under contract. Many of these law firms are redundant and ratepayers are paying huge amounts for...........nothing.
Please remember, Cady the attorney, released these disclosable public documents because the law said he had to !!!!!
Richey's legal charges are unverifiable.....Cady must hide them.
(LMUD does not have $15,000 a month of pending litigation......that's a fact)
This website only found an ad submitted by Eugene Chittock
LMUD's reaction: They took the link off of the website
October 31, 2005
KWH PURSUES GRAND JURY COMPLAINTS BEING MISHANDLED
October 27, 2005
GOTCHA !
Frank Cady and Jaimee Richey of "Cady, Pardee & Richey LLP" have altered their website cadylaw.com since we published Cady's website address. The website now, will not allow you to go in to the Attorney page or Firm profile. Interesting.....You no longer can view Frank and Jaimee at work. Conflict of Interest.......you betcha...........Cady & Richey lied to obtain their LMUD contracts.
Just in case you missed the Attorney page........................
October 26, 2005
KWH's SECOND VICTORY
"High Sierra Co-generation Plant" is gone !!!!!
psrec/lmud/ncpa power plant - scam ii
Unlike, Arrowrock, KWH was able to get all of the documents in order to monitor and expose the bogus project. The $64,000 question is what did the ratepayers get for their hard earned money......like the bogus Arrowrock Hydro Plant in Boise, Idaho (a $300,000 scam)......NOTHING.
At the end, KWH exposed Frank Cady's fake memo's that tried to suck another $100,000 of our money. LMUD went over their $43,000 budget and had two choices:
1. Lie about what they had spent to-date and approve more money to cover it
2. Drop the project
THEY DROPPED THE PROJECT
KWH'S FIRST VICTORY: LMUD'S ARROWROCK HYDROELECTRIC PLANT Arrowrock
October 25, 2005
KWH TOLD THAT NO REFERENCE TO KWH WILL EVER APPEAR IN THE LASSEN COUNTY TIMES
Lassen County Times, 10/25/05, Barbara France, "Times editors publish what we know"
That couldn't be further from the truth. They publish what they want you to know and what they are told to publish". Barbara France told the publisher of this website that she cannot make any reference to KWH. What is Taborski afraid of.....the truth.....God forbid...the facts..............
EXAMPLE:
Frank Cady told the public and the LMUD Board that LMUD does not have to comply with PUC 14403.314403.3-Requirements of General Manager Report, and that this government code was just for Sacramento Municipal Utility District LMUD' Resolution 2001-03 (the specific requirements for the General Manager's Report for any rate increase for an electricity district).
KWH filed a written objection to the public hearing based on the fact that Frank Cady's General Manager's report did not comply with the requirements of this section (KWH member, Eileen Spencer, was the "unnamed" person, referenced by France, that was allowed to comment at the beginning of the meeting. Cardenas told Eileen Spencer that she couldn't speak in public comment. Spencer replied, "Nancy, you know that is illegal". Spencer was allowed to comment and submit written objections.)
France was given a copy of Government Code 14403.3 and also the LMUD 2001-04 Resolution that referenced the use of the same code, but she did not report that in her article because it would confirm that KWH was correct. Cady lies and France swears by it.
The LMUD Board was overwhelmed by 70 or more, standing room only, that attended the LMUD Public Hearing.
In the not to distant past, the LMUD Board would call the Police when they didn't like what you said. Fortunately the First Amendment and the Brown Act (Public Criticism) still protects a citizens right to redress their government. LMUD used this tactic to frighten and intimidate the ratepayers for almost a year and finally gave up on it. Now, Barbara France paints them, when they behave, as Saints.........?
The Brilliance of Barbara France, "LMUD Board does the right thing",
"By all accounts, the LMUD meeting was exceptionally cordial as compared to some meetings in the LMUD Board room where citizens have been asked to leave for refusing to discontinue critical commentary"
Brown Act, 54954.3- The legislative body of a local agency shall not prohibit criticism of the policies, procedures, programs, or services of the agency, or the acts or omissions of the legislative body.
The truth about the agenda: LMUD added the contrived NCPA co-generation plant request for $100,000 before the rate increase (which LMUD abandoned at the meeting with no mention of this by Barbara France ?). LMUD and Cady hoped that if anyone showed up for this public hearing that LMUD could drag out this bogus agenda item until everyone left at 7:00 PM to attend the Susanville City Council meeting. Barbara France claims that she asked Frank Cady to switch the agenda items before the meeting ????????? Now...maybe that wasn't the truth after all..................
NOTE: Three individuals contacted this website to report that they had been asked to attend the LMUD meeting, by Frank Cady and Darrell Wood, to speak about raising the the rates on electricity. Was the meeting "salted" ?
October 24, 2005
LMUD General Manager was hired on July 1, 2005 and immediately puts Don Battles "Back on the Gravy Train"
.....and exactly what did ratepayers pay for? No explanation of charges ?
Battles July/05 Invoice Battles August/05 Invoice Battles September/05 Invoice
October 23, 2005
LMUD GM,FRANK CADY,IS A LIAR
DIRECTOR WOOD IS A LIAR
LMUD's Resolution 2001-03, page two;
"Whereas, pursuant to the California Public Utilities Code Section 14403, the general manager prepared and filed with the Board his request and recommendations concerning the proposed surcharge in the manner required by CPUC Section 14403.3"
They have zero credibility
Frank Cady was caught lying about the "General Managers Report" in regards to LMUD having to comply with CPUC 14403.3
Cady said that Spencer did not do her homework. Spencer filed an oral and written objection, at the 10/19/05 Public Hearing, based on, among other critical issues, that the General Manager's report was not in compliance with CPUC 14403.3.
Cady told the public and the LMUD Board that 14403.3 only applied to Sacrament Municipal Utility District.
LMUD RELEASES PUBLIC RECORDS REQUEST FOR RESOLUTION 2001-03 AFTER THE PUBLIC HEARING..........
KWH requested a copy of Resolution 2001-03 on October 4, 2005,
The document was due on October 14, 2005. .
but LMUD released this document on October 20, 2005.
During the October 19, 2005 LMUD meeting, Darrell Wood offered support for Frank Cady when Frank Cady stated that LMUD did not have to comply with CPUC 14403.3, that only SMUD had to comply with CPUC 14403.3.
Director Wood was on the LMUD Board in 2001 and voted on Resolution 2001-03.
OCTOBER 20, 2005
SUSANVILLE ATTORNEY, DAVID WILLIAMS, LOSES THIRD CASE AGAINST EILEEN SPENCER
The Court orders sanctions against Williams
LMUD INCREASES THE "BASIC CHARGE" TO A FLAT $8.00 PER MONTH from $3.50 without any credible reason.
LMUD ratepayers now are paying twice for the same services?
LMUD ADDS A $$25.00 "CONNECTION" FEE ALSO.
NOTE: Most customers do not disconnect but simply transfer from one customer to the next. The LMUD General Manager submitted no statistics, at all, on the number of disconnects for customers that Frank Cady called "transient". These customers own vacation homes in Lassen County. Will this action cause mass exiting from Lassen County. Has LMUD sent the wrong message to businesses, tourism and people that think Lassen County is a nice place to live ?
KWH SUBMITS WRITTEN OBJECTION TO INCREASE
Frank Cady made a desperate attempt to cover up the fact that he screwed up the General Managers Report.........Municipal Utilities District Act
CADY ACTUALLY ANNOUNCED THAT LMUD IS NOT UNDER CPUC DIVISION 6 and that Division 6-14403.3 only applies to SMUD (Sacramento Municipal Utility District). UNBELIEVABLE !!!!!!! 14403.3-Requirements of General Manager Report
The LMUD Board, and especially Darrell Wood, should have corrected him, but didn't. The 2001 "recalled Board" voted on the rate increase and the General Manager submitted the report under 14403.3. Darrell Wood voted to approved the $.35 surcharge under Resolution 2001-03.
KWH will make sure that the California Public Utilities Commission is told of LMUD's General Managers position. KWH will make sure that "Bill" Cady, CPUC attorney, gets a copy also.
LMUD BOARD
VOTES TO BACK OUT OF NCPA'S & PSREC's Co-generation Project at the State Prison
Finally, they did something right !
At the LMUD meeting on October 19, 2005, the LMUD Board did not support the General Manager's position to continue pouring money into this project.
KWH STRONGLY OBJECTED TO THIS BOONDOGGLE
KWH files objection at the October 19, 2005 meeting
LMUD General Manager and NCPA lied to the public and the LMUD Board to get $100,000
On March 29, 2004, LMUD signed an agreement to get involved with NCPA and PSREC (Fred Nagels utility) to "study" building a co-generation plant at the State Prison.
LMUD has no ability to help finance a $10,000,000 project (LMUD's commitment would be $4,300,000) or anything else for that matter. KWH files objection
So why did they agree to help pay for PSREC's co-generation plant?
RATEPAYERS ASK YOURSELF,
Why would LMUD continue to fund a study when there is no possibility of financing the project. ZERO %?
On March 29, 2004, LMUD hid paying for Phase I by disguising it as a "Needs Assessment". LMUD paid NCPA $10,000 for this, alleged and never to be released, "Needs Assessment".
While LMUD jumped right in and approved Phase II , at the same meeting, the Phase II Agreement did not include providing RFP's (Request for Proposals) or RFQ's (Request for Qualifications).
The "Needs Assessment" did...but NCPA is not asking for more money for the Needs Assessment, but asked suddenly for $100,000 for Phase II that doesn't even require or provide for RFP's.
Confused? You should be. This was a quickly put together scam that Frank Cady and NCPA cooked up.
The "Agreement" states that NCPA must give LMUD and PSREC a 30 day notice if they need to more money. LMUD was under no obligation to suddenly approve an additional $43,000. Phase II Agreement
Frank Cady presented NCPA's request for an additional $100,000 on Phase II anyway. Cady hoped that no one would pick up on the deception. Keep in mind, that the Board does not read anything and has shown no interest in curtailing bogus expenses. This Board has abdicated its financial responsibilities to Frank Cady.
LMUD has spent $64,816 ($21,816 over budget) without approving any additional funds for this.....Arrowrock like project (The Arrowrock Hydro project was a scam that Cady brought to the 2000 LMUD Board to distract the public from the $8.7 million loss by the Board. This Board was recalled in March/2002).
LMUD has been paying NCPA $3,426 a month.....for what? Do we have the right to ask?
LMUD RATEPAYERS WILL NEVER SEE "ANYTHING" FOR THIS MONEY
Cady simply needed the money to cover up the fact that the Board spent more than the amount approved for Phase II. Cady has a proven track record, that it is easy to lie and get away with it..........
City of Susanville Approves Natural Gas Rates 10/19/05
The Susanville City Council approved the $.79 increase per therm, on their natural gas rates, with little or no objection.
Left to Right: Council Members Callegari, Joy, Sayers, DeBoer and Fahlen. Luann Rainey is sitting in the foreground
Only three of the 33 people that attended the meeting spoke against the proposed rate increase. The Agenda and Board packet are only available in a binder. The City does not even make copies of the Agenda available to the public that attends.
Lino Gallegari was the only Council Member that understood the hardship that this increase would cause and voted against the increase.
Mary Fahlen, Rocky Joy and Doug Sayers and Doug DeBoer were in favor of the increase. They cited that the City had to break even on this service.
City Administrator, Luann Rainey, explained that the City has taken on a $24 million dollar debt for installing the natural gas lines to the City and that they are presently paying only the interest on this debt ($1.4 million annually). She said this increase would only leave the City at a break-even point.
Luann Rainey said that the College is paying only $1.02 per therm. Council Member Sayers asked the City Administrator to contact the College and begin "re-negotiation" on their rates.
Council member Doug Sayers reminded the Council that this program went before the voters and was passed by a majority. Sayers did not mention that when the City of Susanville was pushing hard for this that the public was given a much different financial picture, prior to the election.
The City presently has 2,216 natural gas customers and feared that the increase in rates would provoke a decline in usage, a decline in revenue. The City Administrator told the Council that 3 residential customers and 1 business customer had terminated their service after hearing about the proposed increase.
One member of the public told the board that he and his mother would just freeze this winter because they cannot afford this increase.
October 19, 2005
LMUD website Down today
as of: 6:00 AM-5:30 PM
Will it be up and running after the meeting? Answer: Yes
LMUD GENERAL MANAGER REPORT DOES NOT REMOTELY COMPLY WITH PUC CODE
Cady tells public, "Mrs. Spencer should have done her homework. LMUD is not under the PUC and PUC Code 14403.3 only applies to SMUD".
Mrs. Spencer did do her homework and Cady was backed into the corner facing the truth and he did what he normally does............when all else fails, lies.
Cady demonstrated clearly that he is not qualified to be General Manager
The three utilities that are governed under CPUC Division 6 are Sacramento Municipal Utility District, East Bay Municipal Utility District and the tiny little LMUD........
PUC Code 14403.3 is within Division 6 14403-General Manager report to the District
So is 14401, 14402, 14403....Frank Cady knows that he cannot pick and chose which law to obey....oh, wait a minute........yes he can.
LMUD General Manager, Frank Cady submits a deficient report to the LMUD Board that not only is full of shameful personal prejudices but doesn't even comply with the California Public Utility Commissions mandatory requirements under Division 6 (Utility Code that governs Municipal Utilities) Cady is a practicing licensed California attorney. Cady knows the law and ignores it.
14403.3-Requirements of General Manager Report
LMUD GENERAL MANAGER REPORT ON "BASIC CHARGE" INCREASE
October 18, 2005
LMUD ADDS DISTRACTION TO "PUBLIC HEARING" ON RATE INCREASE 10/19/05 LMUD Agenda
PSREC/LMUD SCAM I PSREC/LMUD/NCPA SCAM II
George Sargent questioned "Why should we go into debt for millions when buying the 5 MW on the open market is less of a risk." Where was George when the Arrowrock Scam was being marketed? 11/4/04
LMUD will hold a public hearing, on a rate change, but they hope to distract the public by slipping in the "Co-generation Sink Hole" project.
LMUD LIES ABOUT HOW MUCH THEY SPENT ON BOGUS STUDY AND NOW MUST COVER IT UP BY APPROVING MORE MONEY.
As of October/2005, LMUD has invested $64,816.00 for what?
(The approved budget is $43,000)
They have yet to produce the "study" that was promised. Sound familiar? (the promised Arrowrock study was never produced either) Now, NCPA wants an additional $100,000.
Ratepayers pay and get NOTHING.....again ?
ARROWROCK..... ALL OVER AGAIN
NCPA stated that the "feasibility study" will be completed by 2006. No study is being offered by NCPA, but their hand is out for another $100,000. LMUD lies to the public and has moved into PHASE III. LMUD Nov. 4, 2004 meeting
REVISIT THE PAST......LASSEN COLLEGE CO-GENERATION PLANT link
LMUD was lured into this "Bill of Goods" by Frank Cady, Fred Nagel (PSREC customer) and NCPA with the promise by NCPA to finance the $10,000,000 boondoggle.
NCPA BACKED OUT OF FINANCING...WHY? BECAUSE NCPA KNOWS THE PROJECT IS NOT FEASIBLE. link
PUBLIC BEWARE
(LMUD and the General Manager plan to delay the rate issue from being heard hoping that the public will leave to attend another HOT issue at Susanville City Hall at 7:00 PM on the natural gas rate increase link )
NOTE: The public can address agenda issues at the beginning of the meeting, in "Public Comment", or they have an opportunity to speak when the agenda items are discussed by the board. The Brown Act allows this link. The LMUD meeting rules are repressive, abusive and violate the Brown Act .
LMUD continues to throw money at NCPA and the public has received no information on what the $60,000 (Phase II budget is $43,000) has been spent on. LMUD must release the "feasibility study" to the public before moving to Phase III.........but they will hide it and lie just like they did with the Arrowrock study. BOGUS, BOGUS, BOGUS.
LMUD has wasted over $60,000 on this "Arrowrock" type project.
LMUD has refused to disclose when or even "if" they gave NCPA the initial $10,000.
Just how stupid does LMUD think the public is ?
THE CO-GENERATION PROJECT WITH PSREC IN NOTHING BUT ANOTHER SCAM ON THE LMUD RATEPAYERS
LMUD and PSREC attempted to borrow money from the U.S. Department of Agriculture (RUS) for this project in Phase II (the study phase) link. Kan We Help contacted RUS in May/2005 and alerted them that LMUD is still in Phase II (study) and had not authorized any action to be taken to move into Phase III (financing).
October 14, 2005
JUDGE BRADBURY ALERTED TO ACTION BY GRAND JURY FOREMAN
G
FRANK CADY'S LAW PARTNER NO LONGER LMUD'S "INTERIM" GENERAL COUNSEL link
Jaimee Richey, Frank Cady's law partner, no longer refers to herself as "Interim" General Counsel since the LMUD Board plans to take no action on the Conflict of Interest that exists between Frank Cady and Jaimee Richey ("Cady, Pardee & Richey LLP"). Cady & Richey's website
It appears that LMUD never had any intentions of advertising for a competent legal counsel or hiring anyone other than Frank Cady's law partner.
On July 1, 2005, LMUD hired Frank Cady (former legal counsel for LMUD) as their sixth General Manager in five years (Baxter, Battles, Les Leiber, Evelene Twitchell, Les Leiber, Sharon Edwards, Frank Cady).
LMUD has lived under controversy for their abusive management style for over five years. Ratepayers recalled the Board members, in March of 2002, because of gross mismanagement and abuses and an $8.7 million dollar loss. Nothing has changed with the new LMUD Board...............they are still told what to do by Frank Cady.
After the Board could find no one to take the position of General Manager position (with Twitchells sudden departure after the audit was released), they had to hire Frank Cady as General Manager. Cady's law partner came with the package, as "Interim" LMUD General, even though Cady & Richey had to lie to get both of their public contracts.
Lassen County has no vehicle nor any inclination to correct "white collar" crime. Lassen County's Grand Jury is manipulated by the politicians and District Attorney. The District Attorney looks the other way when one of the "good ole boys" gets into trouble.....just normal small town cronyism. The local newspaper suppresses the truth......Don't expect things to change anytime soon.
CADY BLOWS "SUNSHINE" WHERE THE SUN DOESN'T SHINE.
KWH files objection, to Cady's proposed rate hike, with the PUC.
Frank Cady and his LMUD Board have provided a neatly packaged "False Facts" report to release to the public. According to LMUD documents, the $3.50 ("Basic Charge") is not a meter reading charge at all.
The $4.5 million dollar deficit spending that LMUD recorded this last fiscal year is due only to the reckless and irresponsible management of this Board. This irresponsible and reckless spending is well documented.
LMUD enjoys an energy contract that has kept our power costs stable. The mis-management of public money is why they need to ask the public to bare the costs of their mistakes again. This is a repeat of the 2001 fiscal disaster that led to the recall of the LMUD Board.
All "cash" assets are holding the bond holders at bay and LMUD is now slowly depleting those funds also.
NO "BELT TIGHTENING" BY THIS BOARD
9/14/05: LANGSTON SAID "ALL WE NEED TO DO IS KEEP AN EYE ON THE BUDGET AT THE END OF THE YEAR".
FISCAL 2004/2005 YEAR END REPORT
NO EVIDENCE THAT THE LMUD BOARD (CADY) HAS MADE ANY ATTEMPT AT REDUCING THEIR EXPENSES OR FLAGRANT AND WASTEFUL SPENDING HABITS
LMUD is BROKE AND ALLOWS CADY TO HIRE AN "ASSISTANT GENERAL MANAGER" ? LMUD Agenda
It probably has become too difficult running his law practice from LMUD.
LMUD has no budget to add an Assistant General Manager.....plus they don't need one, unless Frank Cady plans on never being there at all. All they can do is appoint a temporary general manager to "act" in Frank Cady's absence......which is 75% of the time.
LMUD will also hire a Director of Engineering @ $135,000 to $140,000 or higher........All this person will be able to do is sit in an office and do "patch work maintenance" of the system. Steve Trevino can do that.... The last Director of Engineering,Chuck Lusky, left because LMUD doesn't have any cash......LMUD has no money for capital projects. That cash is being used to comply with the Bond Covenants......(Question: Is LMUD even complying with the bond covenants?)
REMEMBER THESE EXPENDITURES WHEN THEY RAISE OUR RATES
Richey is buying software ($220.00?), taking totally unnecessary trips for an "Interim" General Counsel, and doesn't have to document any of it. LMUD just writes her a check without any proof of services. This not a generally accepted accounting practice. KWH Demands Richey Documents
Of course, Richey and Cady lied to get their public contracts in the first place and that's not an accepted practice either.........
Link to Complaint Complaint Exhibits
REMEMBER THESE EXPENDITURES WHEN THEY RAISE OUR RATES
LMUD pays $3,000 a month for the Ruralite and gets 3 pages link
REMEMBER THESE EXPENDITURES WHEN THEY RAISE OUR RATES
LMUD INTENTIONALLY BREAKS THE LAW AND THEN GOES INTO CLOSED SESSION TO DISCUSS IT
RICHEY & CADY STILL PRACTICING LAW together................ cadylaw.com
CADY LAW IS ABOVE THE LAW
LMUD HOLDS PUBLIC HEARING TO INCREASE RATES ON READING METERS & ADD A CONNECTION FEE FOR NEW CUSTOMERS
$3.50 TO$23.50 TO READ EACH METER ( A 10-30 SECOND SERVICE)
CITY OF SUSANVILLE TO HOLD PUBLIC HEARING ON NATURAL GAS RATES, OCTOBER 19 @ 7:00 pm
susanville cpa, Steve pezzullo,
anti-susanville or anti-corruption
Pezzullo takes on the Susanville City Council for mis-management 9/27/05
this complaint will be suppressed.......the Grand Jury will never see this complaint ?????? Why
KWH FILES FRAUD AND MISCONDUCT COMPLAINT WITH THE LASSEN COUNTY GRAND JURY
Frank Cady & Jaimee Richey lied to obtain public contracts
Lassen County Times Editorial, "Did the grand jury do its job", 8/16/05
WHO HAS THE POWER TO SUPPRESS A GRAND JURY COMPLAINT
do the lmud ratepayers deserve the highest rates in the state?
yes
do the lmud ratepayers deserve the most corrupt utility in the state?
yes
You ask why?...because they let it happen. They were unwilling to stop it. LMUD ratepayers have closed their eyes and covered their ears and just let it happen. This website will publish every penny of the gross mismanagement of this Board of Directors in the past three years, every penny. You be the judge.
LMUD's neighbor Surprise Valley Electric- Good Management
CADY PROPOSES TO INCREASE OUR RATES BY INITIATING A "FLEXIBLE RATE"
Frank Cady strongly suggested to the LMUD Board that they pass an adjustable rate. This rate would go up but never lower than the base rate of $ .115. Ratepayers would have to pay whatever Frank Cady wanted to charge and you would never know what your electric bill would be.
Also, Cady told the Board to increase the "meter reading fee" from $3.50 to $23.50 a month. The self-serving study was done by Cady..and the Board told Cady to do another study.????? The tail is wagging the dog. 700 % increase
All of this and Frank Cady made no suggestion of reducing the operation costs.
This Board, under the direction AND control of Frank Cady, has wasted millions of dollars. LMUD will post an anticipated $4.5 million deficit by the end of this fiscal year and LMUD keeps spending....and spending like there was no tomorrow.
The "tomorrow" will hit the ratepayers before the end of this fiscal year.
LMUD VIOLATES BROWN ACT INTENTIONALLY
September 14, 2005, LMUD meeting
LMUD has hit a new low for Sleaze
What does it take for appointed and elected officials, of Lassen County, to be accountable for their actions and to follow the law?
Frank Cady and the LMUD Board (all of them) failed to put "Resolution 2005-14" on the Agenda for Wednesday nights meeting. The agenda item was to consider...(this means discussion and a direction given to formulate a Resolution). You can expect this type of deception from this Board and Frank Cady, from now on.
There was a reason for this deception:
1. Resolution 2005-14 was not placed on the Agenda released to the public because it proposes to give-away LMUD property, that ratepayers paid for, to the employees, Board members and anyone that is in good favor with Frank Cady.
The LMUD Board relinquishes yet another Board power to Frank Cady. The Board gave Frank Cady the right to determine what is "surplus" property and then dispose of it to anyone he wishes. The Board approved Cady to make district policy without their approval.
It seems extremely odd that Frank Cady, now general manager and legal counsel for LMUD, never thought this was important for the Board to consider before ????? THE FOX IS IN THE HENOUSE
The LMUD Board also relinquished its sole authority to change the budget to Frank Cady. Frank told the Board that he will spend money at will and will only report his spending.....AFTER THE FACT TO THE BOARD. Cady purchased a capital expense item that was not approved by the Board and basically told them that he would continue to do this.
RATEPAYERS.......THERE IS NO NEED TO HAVE AN ELECTED BOARD, this is now Cady Municipal Utility District
Board ignores Cady/Richey complaint....they are in damage control. As always, if they ignore it, it will go away...Board shows absolute complicity.
FRANK CADY'S REAL ESTATE DEALS BEING INVESTIGATED
Frank Cady, under the name of BKC, bought property from clients.
Cady buried BKC acquisitions in secondary partnerships like "Bantley Aviation" and "Bronson's Corners" to hide the sales. Darrell Wood is a partner with Frank Cady in "Bantley Aviation". Properties were sold to businesses like Lassen Waste Systems, Inc. and NRLL.
Much more to come..[BANNER MEDICAL development fees (Frank Cady sits on the Banner Board) ]..(this is the tip of the iceberg)...........
Bantley Aviation Bronson's Corners. B K C.
JUDGE BRADBURY RESPONDS TO KWH COMPLAINT AGAINST FRANK CADY & RICHEY
CADY HANDS OUT BLINDERS TO HIS GO-FERS, KB, AW, SB, RB, MT, SA, BF, DC & JC....
RICHEY CHARGES LMUD $15,000 FOR TWO WEEKS WORK IN JULY
Frank Cady cannot divest from his LLP
Cady, Pardee & Richey never had a contract with LMUD. Frank Cady terminated his legal services with LMUD, on June 30, 2005.
According to court records, LMUD has no legal issues at all, except KWH v LMUD. This case has been sitting, at the Third District Court of Appeals, waiting for a decision and LMUD farmed that out to Jay Allen-Eisen.
There is no possible way that LMUD could have needed $15,000 of legal services in two weeks from an (three years of practice with Frank Cady taught her how to get away with this) attorney that specializes in agriculture. NO WAY.
LMUD paid this $15,000 legal bill without a blink of an eye. The public should be outraged.......and the public should be looking at the LMUD's books very closely and five other bank accounts.
AT $180 PER HOUR, RICHEY SPENT EVERY WAKING MOMENT ON LMUD, 8 HOURS A DAY FOR TWO WEEKS... IS LMUD HER ONLY CLIENT????
Frank receives $10,800 a month from LMUD as General Manager and another check from Cady, Pardee & Richey LLP. Cady charged $110 per hour, for legal services before he became LMUD General Manager, and now he charges $180 per hour for legal services.
SOMETHING STINKS AT LMUD.......NO, IT'S JUST RANCID AT LMUD
Frank Cady cannot divest from his LLP
CADY & RICHEY CAUGHT LYING TO GET LMUD CONTRACTS
"UNDISPUTABLE FACTS"
KWH files complaint with LMUD and Judge Bradbury against Richey and Cady 9/1/05
Jaimee Richey (Shown in photo) and Frank Cady not truthful about partnership and ownership of real property and much more.............gross misconduct
Link to Complaint Complaint Exhibits
Link to Complaint Complaint Exhibits
FRANK CADY RELEASES HIS ASSETS CADY 2005-FFPC 700 FORM
LMUD GENERAL MANAGER CONFIRMS THAT THE UTILITY DISTRICT IS CASH POOR
CADY RUNNING LAW PRACTICE FROM LMUD
Jeri Kresge no longer Board of Directors secretary but now answers the phone as Frank Cady's Executive Secretary.
Front office staff no longer allowed to answer any questions, not even if someone wants to know when the next LMUD meeting is. Cady's private company......that's what it is starting to look like.
FRANK CADY RESIGNS AS LMUD GENERAL COUNSEL
Cady Pardee and Richey's clients are in direct conflict with LMUD. link
LMUD carelessly makes a significant disclosure of Cady's financial interest in Cady and Pardee...they ask him to leave the room while the LMUD Directors discuss hiring his partner. LMUD Meeting, July 13, 2005
On July 13, 2005 Cady lists himself as: Frank Cady PC professional corporation
Frank Cady's LMUD meal ticket has not expired. LMUD hires his partner. Frank Cady is not an "inactive" attorney.
The State Bar says that he has an "active" license.
Richey would be the "next" to the last person qualified to be general counsel for LMUD.
She has no experience in utility law and would farm out all of LMUD's legal messes and get $180 an hour to do it, just as Cady did for years.
LMUD needs a part-time counsel as-needed. LMUD has budgeted $330,000 for this next fiscal year for Richey.
JUDGE RIDGELY LAZARD MADE COMMENTS ABOUT RICHEY'S EXPERIENCE:
"when young associates (Richey) labors are inadequately organized by supervising partners."
"the court recognizes that a less experienced lawyer will take more time to complete a task and has taken that into consideration in the reduction of hours."
Cady has been setting this up for three years.
Frank Cady has not been removed from LMUD litigations and is still being paid by LMUD for legal services.
No Pardee's have ever practiced in this law office ?
Shady Cady thinks that by covering up his name, on his sign, and removing the LLP now from his stationery that he no longer has a financial interest in Cady Pardee and Richey LLP.
On July 13, 2005 Cady lists himself as Frank Cady PC
This is just another Cady "Shell Game".
1892 vs. 1938
LMUD will pretend to secretly review the applicants and somehow come to the conclusion that they need only to hire an "idiot" that will be the front for Frank Cady.......Jaimee Richey.
LMUD will pay her $180.00 p/h....she is not worth $90.00 p/h. Frank Cady's contract was for $110.00 p/h.
Previous sign June/2002 included a retired attorney, David Tallant ?
Lassen College Co-generation Plant
DOES THIS COMMUNITY NEED A REMINDER?
KWH QUESTIONS NCPA ON THE NATURAL GAS CO-GENERATION POWER PLANT that LMUD/PSREC plan to build.
Big savings for PSREC, little benefit to LMUD
LMUD's records show that LMUD has spent $51,112 on the study as of 6/8/05
LMUD does not report on study prior to seeking financing
LMUD's role in this $10,000,000 project .......... link
NCPA will not finance project as per Don Dame
3/29/04: George Sargent questioned "why should we go into debt for millions when buying the 5 MW on the open market is less of a risk." Where was George when the Arrowrock Scam was being marketed by Frank Cady?
$800,000 annual savings to PSREC...LMUD Director Fred Nagel is a PSREC customer.
OUTGOING DIRECTOR, AL VAZQUEZ SAID....."It sounds like we're just passing a hot potato around".
If it walks like a duck and smells like a skunk....its probably a skunk.
US DEPARTMENT OF AGRICULTURE RESPONSE
NCPA COMMITMENT TO FINANCE- GONE
As a response to refusing KWH ads, the Lassen County Times published an account of Arrowrock, as an Editorial, that made LMUD look like Heros. This paper has no shame. 6/14/05
FERC AGREES WITH KWH'S POSITION ON ARROWROCK
FERC cites KWH's position in ruling to deny Arrowrock stay
Why did LMUD spend thousands of dollars to keep the truth from the public?
KWH spent thousands of dollars trying to find the truth for the public !!!!
Lassen County Times response to Arrowrock license ending.
June 7, 2005; The Lassen County Times decided that the public did not need to know about the Arrowrock license and that FERC found that the history of this license was in question and is terminating the license on June 27, 2005. News Editor, Barbara France's interest in LMUD and the public's concerns ended when she found out she wasn't moving.
LMUD LETTER ON DYER RESORT "EIR" FULL OF OVERSTATEMENTS AND INACCURACIES
GROSS BROWN ACT VIOLATION
5/11/05
FRANK CADY PLACED AN ILLEGAL "CONFERENCE WITH" THE DYER MOUNTAIN ASSOCIATES IN CLOSED SESSION....NO ONE FROM DYER MOUNTAIN ASSOCIATES KNEW ABOUT THIS CONFERENCE.
LMUD Directors lose control of LMUD, the ratepayers lose control of the elected officials
FRED NAGEL PROPOSED THAT LMUD COULD PROVIDE
WATER AND SEWER TO DYER MOUNTAIN
Jerry Duffy of Dyer Mtn. Associates said that was news to him?
The Westwood Community Services District will be interested in this...they provide water and sewer to the Westwood area. Westwood is in Fred Nagels Ward
LMUD VIOLATES FIRST AMENDMENT RIGHTS OF REPORTER
LMUD DISCRIMINATES AGAINST
LOCAL REPORTER LINK
"Reporter's
Handbook on Media Law"
Barbara France (Lassen County Times News Editor) and Mike Smith (KSUE radio) were sitting at the "press" table with Spencer. , Spencer was asked to leave the press table. Spencer was the only one that had press credentials.
The "MEDIA" has changed since the internet, You can find little and big news on the internet
Lassen County Times Los Angeles Times
FRANK CADY THREATENS to throw out MEDIA REPORTER PRIOR TO THE LMUD MEETING LINK
Frank Cady cannot require the press to show credentials and also then make a determination on who is press and who is not press. It's simply against the law.
KWH has First Amendment cases which provide precedent cases on the subject.
Spencer commented, "Cady has always been arrogant and a bully, that 's nothing new, but he has crossed over the line with these threats. The LMUD employees must be terrified at the thought of Cady "officially" running LMUD."
Spencer stated that she will be sitting at the press table.
Frank Cady intends to call the
Susanville Police to violate the First Amendment. His hands
will be clean. All
Cady has to do is cause a disruption.
IF FRANK CADY GETS MAD AT THE LASSEN COUNTY TIMES OR A RADIO STATION REPORTER, HE COULD THROW THEM OUT OF THE LMUD MEETING. They have no press credentials.
Frank is on very dangerous ground
LMUD press table...................empty?
LMUD General Manager warns of rate increases if gas prices continue to rise. LMUD 3/10/05 MEETING
This website will publish and distribute to LMUD ratepayers, "in detail", the wasteful history of this LMUD Board if they choose to raise the rates rather than reduce their spending. This Board continues to make unsound business decisions.
LMUD HAS NO CASH, AND WILL NEED TO BORROW MONEY OR
RAISE THE RATES?
Nancy Cardenas said "We will have to go into more debt very soon"
LMUD hires headhunter again, for sixth General Manager in three years
Mr. Mycoff asks Board what they want in a General Manager
LMUD DIRECTORS PUT ON A GREAT MASQUERADE FOR THE HEAD HUNTERS
Wayne Langston told Mycoff & Associates "Customers aren't so much concerned about how much it will cost, but if they get it"[electricity]
MILLIONS OF DOLLARS OF PUBLIC MONEY SPENT
WITHOUT CONTRACTS OR WITHOUT EXECUTED CONTRACTS
LMUD'S ATTORNEY'S, CADY & RICHEY DID NOT FOLLOW THE LAW link
LMUD AUDIT SHOWS DEEP FINANCIAL PROBLEMS
12/22/04
LMUD Special Meeting link
The LMUD Board was told by McKenzie and Pezzullo, LMUD's auditors that "in fifteen years of doing LMUD's audit, this is the first time we have had to "qualify" (Definition: the result of the limitation is the failure of the CPA to obtain sufficient objective and verifiable evidence in support of business transactions of the entity being audited) the audit".
"Uncertainty now exists as to the exposure of the District for unlawful disbursement of public funds" link NOTE: A copy of the 27 page Audit is available at the LMUD office
DIRECTORS PUT LMUD and its' employees AT RISK
LMUD withheld entries to deceive the public of its true financial condition. The auditors chastised the Board for not being in compliance with normal accounting practices. The LMUD Directors attacked the auditors for not alerting the Directors of their financial position. One Auditor fired back that
DID THE LMUD BOARD HOLD THE AUDIT REPORT UNTIL AFTER THE LMUD ELECTION ?
The LMUD Board "Statement of Meetings" indicates ongoing audit meetings as early as September/2004 to the present and Budget meetings in June/2004. This Board has failed in its' fiduciary responsibilities.
LMUD DIRECTORS CONCENTRATE ON AUDIT PRIOR TO ELECTION DAY
>DAMAGE CONTROL<
Nagel, Cardenas, Vazquez on the November 2 ballot
LINK: The Lassen County Times suppresses all LMUD bad news, all of it....
Pezzullo & Gussett write:
"Uncertainty now exists as to the exposure of the District for unlawful disbursement of public funds" link NOTE: A copy of the 27 page Audit is available at the LMUD office
Langston meets with Cady and Auditors on November 1 and 2, prior to Election Day
Langston- October Statement, and November Statement
Nagel meets with Twitchell and Auditor on November 1 prior to Election Day
Nagel- October Statement and November Statement
Cardenas concentrates on Audit prior to Election
Cardenas-October Statement, 9/9/04
Vazquez meets with Cardenas on October 29 Reason: LMUD Audit
Vazquez- October Statement, 9/10/04
All records obtained through the Public Records Act
Would Richard Parker and Jack Helsel have won if the Audit Report had been released prior to the November 2, 2004 Election. Probably..................
DID THE LMUD BOARD WITHHOLD THE AUDIT REPORT UNTIL AFTER THE LMUD ELECTION ? YES THEY DID
Gov't Code 53894: An officer of a local agency willfully and knowingly rendering a false report is guilty of a misdemeanor.
Bill Stewart, LMUD's Controller, did not make accounting entries in accordance with standard rules which led to a false reporting of LMUD's financial condition.
KWH member, Eileen Spencer sent Bill Stewart a letter on 12/4/02 after the 2001-2002 Audit was presented at the December 3, 2002 LMUD meeting. KWH handed out the financial requirements to the Board after Frank Cady stated that LMUD's only financial requirement was to publish a financial statement in the newspaper. link
Stewart ignored KWH's warning
This Board has recklessly approved worthless contracts over the past two years. Spending money that they didn't have. Now they are faced with the possibility of being "Out of Compliance with the Bond Covenants.
More details of the Gusset and Pezzullo Audit will be available on 12/23/04, after the meeting recording is transcribed. It is shocking.
The Lassen County Times did not send a reporter. They will sanitize the Audit, print what LMUD tells them to print or they won't print anything at all. The LCT does not print bad news about LMUD......ever.
COVER-UP OF ILLEGAL PAYMENTS
The Auditors gave LMUD some very disturbing facts about LMUD and what condition they are in. They told the Board that they spent $1.2 million dollars over their Operating Expense Budget.
The LMUD Board, in an unprecedented move to discuss Agenda item 5E after the closed session on November 4, 2004, passed this motion: "A motion was made and seconded to ratify all contracts, written or oral, whether completed or not over the last ten years and expenditures made thereon from inception, conditioned upon the concurrent certification of Controller/Accountant and General Manager."
Frank Cady is attempting to cover up all of the illegal contracts and lack of contracts over the past ten years. This may not work for him.......... This was an all-to-obvious move, on Cady's part, for a cover-up.
KWH has also filed a complaint, with LMUD, in regards to Frank Cady and Jamie "Richy's" over-billings to the utility district. LINK
"Richey" is the person that was approving double payments to law firms.
Cady and "Richey" are the persons that met with the LMUD Board illegally. LINK
"Richey" is the person that said that there were "no documents" for the $1,250,000. "Richey" is the person that said there were "no documents" submitted to CPUC for the PSREC transfer. LINK
"Richey" is the person that said that there is no Powers Engineers Report that Don Battles had done in 2001.