New Page 14

THE GREAT LMUD SHILL

LMUD's Standish Substation being dismantled. New transform purchased remains on site.

LMUD purchases another $96,000 transformer, in 2013, for Lambert Lane Substation and hopes no one will notice

On July 9, 2013, LMUD calls for a planned outage at the Standish Substation and then the General Manager/Bookkeeper wants a "spare" transformer for the Standish substation

LMUD reported on August 27, 2013 that the foundation work had begun but the photo taken on August 23, 2013 shows that the foundation was complete, the "New" (spare) transformer had been delivered to Lambert Lane Substation, fencing complete

The LMUD Board reported at their November 26, 2013 meeting that they had completed Phase I, dirt and rock work. That is true but they did not disclose that a transformer had been delivered and installed on a pad.

In 2009, LMUD, under Bill Stewart, purchased $354,000 in transformers for "Lambert Lane" when Lambert Lane DID NOT EXIST. Those 2009 transformers have never been accounted for. So.......where did this one come from?

The LMUD Board does not want that question asked and they are certainly not going to answer it if it is asked again and again.....and again.

LMUD Board Votes, at their July 23, 2013 meeting, to Buy a $96,000 Transformer for

WHERE DID THE $354,000 LAMBERT LANE SUBSTATION TRANSFORMERS GO?

July 23, 2013, LMUD Agenda Item #11"potentially imminent failure of transformer at Standish Substation"

On July 9, 2013, LMUD calls for a planned outage at the Standish Substation and then the General Manager/Bookkeeper wants a "spare" transformer for the Standish substation

The July 6, 2011 Minutes state during the LMUD bus tour, David Folce mentions "moving the substation in Standish".

2011: LMUD's Standish Substation. Four miles from the Lambert Lane Substation

WHERE DID THE $354,000 LAMBERT LANE SUBSTATION TRANSFORMERS GO?

Wayne Langston was President of the LMUD Board when Bill Stewart opened the Lambert Lane Substation project account on September 9, 2010. No authorization to take this action was authorized by the LMUD Board. There was no authorization to spend a single dollar on the Lambert Lane Substation prior to September 9, 2010,yet it appears that $358,000 for material and labor had been bought and paid for on a non-existent project.

July 2011

Fred Nagel went on to say, at this very same meeting:

"LMUD's involvement in the financing aspect would be very minimal

Lassen Municipal Utility District, under Bookkeeper Bill Stewart, is not that much different than Frank Cady.

LMUD management had the audacity to ask the LMUD Board for the Lambert Lane Budget to be increased $280,000. Bill Stewart ordered $358,000, which included transformers, for Lambert Lane in 2010.

THE COST OF THE PAD, $87,000, WAS ALREADY IN THE LAMBERT LANE $850,000 BUDGET .

Fencing being installed on substation pad. Pad was elevated because this site is on a flood plain.

The largest expense to build this new substation are the transformers, which LMUD purchased three years ago and can not account for them today. Documents indicate that these transformers came with a five year warranty. Only two years left on the warranty

On July 1, 2010 $87,721.78 was posted for the Richmond Road substation transformer

Bill Stewart purchased 4 transformers in 2010 for Lambert Lane Substation, $354,239.47.

Lambert Lane was not a project, was never budgeted and never appeared on any LMUD Agenda until 2012?

LMUD has redacted (covered up) the dates of these purchases, but the purchase orders and delivery documents show that LMUD did receive these transformers.

On July 1, 2010 $87,721.78 was posted for the Richmond Road substation transformer.

Wayne Langston was the LMUD Board President, Bill Stewart was the LMUD Accountant and Richard Vial was the LMUD Treasurer at this time.

LMUD ratepayers are paying for a substation that has been designed for the dead-in-the-water 230kv project.

The Grading permit expired and LMUD had to pay a fine to bring the permit up to date

LMUD GENERAL MANAGER, BILL STEWARTDELIBERATELY DOCTORS UP LAMBERT LANE PHOTO?

1. Lambert lane is a straight road past the newly acquired property. LMUD made it curve at the top right corner into la la land

2. Part of the lot near Lambert Lane has been cut out of the photo. Most likely because the elevation has drastically changed

3. The bridge goes across Lambert Lane. LMUD awkwardly put another photo of Lambert Lane to the right side of the photo shopped road and thought no one would notice. (Lower right corner)

LMUD is holding a hearing on August 28, 2012 on the Lambert Lane substation Negative Declaration.

Should the 8/28/12 action be delayed so that an "unaltered" photo and accurate and honest survey be presented to the public..

Just who do you have to know to change your lot size? You want your lot to be smaller, bigger?

Bill Stewart purchased 4 transformers in 2010 for Lambert Lane Substation, $354,239.47.

This project was never budgeted and never appeared on any LMUD Agenda until 2011?

Section 54959: Each member of a legislative body who attends a meeting of that legislative body where action is taken in violation of any provision of this chapter, and where the member intends to deprive the public of information to which the member knows or has reason to know the public is entitled under this chapter, is guilty of a misdemeanor.

The LMUD Board, Bill Stewart and Eugene Chittock knowingly and intentionally violated this section for many meetings.

FLASH:On 12/20/11,LMUD intends to fire Board Secretary and go after KWH

LMUD knows that Kan We Help's Secretary has had a Press Pass since 2002. After KWH contacted Hazel Campbell and asked her if she was only selling 6 acres she asked for copies of documents LMUD had filed. Hazel Campbell stated that LMUD's Kelly Holmes never talked about 6 acres, only her 10 acres. Hazel Campbell was told that Kan We Help was doing a story on this.

On September 9, 2010, Bill Stewart opened a General Ledger account for a proposed Lambert Lane substation. The LMUD Minutes do not reflect any approval of expenditures of a new substation on Lambert Lane prior to 9/9/10 yet LMUD has apparently spent over $358,000 on a non-existent project. Bill Stewart illegally redacted the dates (?)of these expenditures.

Bill Stewart and Eugene Chittock illegally covered up "disclosable" information.

Kan We Help filed a Public Records Request on November 28, 2011 for public documents on the proposed Lambert Lane Substation.

LMUD stated that there was no purchase contract, no billing for legal services from their Lead Negotiator Eugene Chittock and no check to pay for the Grading permit.

LMUD quickly filed a press release on December 6, 2011 announcing a $1.2 million dollar project that doesn't exist.

The LMUD Standish Substation sits at Hwy. 395 and County Road 301, just a few miles from the Lambert Lane property

LMUD's General Manager/Bookkeeper, Bill Stewart, is attempting [with Eugene Chittock's and the full LMUD Boards approval] to purchase 6 acres from an elderly widow, Hazel Campbell of Sacramento. The only problem is that Hazel Campbell thinks she is selling 10 acres for $20,000.

LMUD, on September 9, 2010 set up a General Ledger account for the Lambert Lane substation and has posted $358,000 of expenses on land they did not own.

This 10 acre parcel is not divided into a 6 acre parcel and a 4 acre parcel. Mrs. Campbell stated to Kan We Help that she has no intention of selling 6 of the 10 acres to LMUD. After checking with Lassen County, Kan We Help found no request by Mrs. Campbell to subdivide her property.

Kan We Help requested copies of the billing from LMUD for Eugene Chittock's time. LMUD lists Eugene Chittock as the "Lead Negotiator" in their Minutes. LMUD has stated that this billing does not exist. Kan We Help has found out why this legal billing does not exist. Hazel Campbell stated on December 12, 2011 that she has only spoken with an employee of LMUD, Kelly Holmes.

LMUD's Service Planner, Kelly Holmes was directed by Eugene Chittock to obtain a signed form enabling LMUD to act as OWNER/AGENT for this elderly widow. Mrs. Campbell signed this form on October 10, 2011 and was told that LMUD would pay for any improvements to the property prior to LMUD purchasing the 10 acres. Mrs. Campbell stated that she never agreed to sell only 6 acres.

Kelly Holmes was then instructed, on October 14, 2011 to take out a Grading Permit on Mrs. Campbell's property. The cost of this permit was $344.25 but LMUD claims that they issued no such payment.

The permit that Kelly Homes filed for the grading states that he believed the value of this property was $65,000.

Also, LMUD secretly obtained a flood "Elevation Certificate" from former "recalled" LMUD Director Vern Templeton and former partner of Fred Nagel. LMUD needed this certificate to bring in "fill dirt". There is a slough that runs on one side of Mrs. Campbell's property.

LMUD Director Fred Nagel, who is a PSREC resident and customer, stated at the September 27, 2011 LMUD Meeting;

LMUD has been moving hazardous waste dirt around to different parcels in Lassen County.

If LMUD intends to move this contaminated dirt on to Mrs. Campbell's "4 acres", prior to purchasing this parcel, will she be liable for any water contamination in the future or will LMUD?

Fred Nagels son-in-law, Wayne Langston (served 9 years without ever being elected to the LMUD Board)

At the September 28, 2010 LMUD meeting, the LMUD Minutes reflect that David Folce asked the LMUD Board, not the General Manager Ray Luhring, to allow Luhring to approve purchase orders exceeding the amount ($10,000) a General Manager could approve without Board approval. According to the LMUD Minutes, the LMUD Board approved the General Manager to sign purchase orders in excess of $10,000 ONLY FOR THE RICHMOND AND MILLWOOD SUBSTATIONS.

This was not an unusual practice for the LMUD Board to abrogate their fiscal responsibility to the General Manager. At the February 23, 2010 meeting, David Folce asked the LMUD Board to let the General Manager sign two purchase orders that exceeded $10,000. This again was not an open authority to allow the General Manager to sign "all" purchase orders exceeding the $10,000 limit.

However, at the November 29, 2011 meeting the LMUD Board authorized the General Manager/Bookkeeper Bill Stewart to sign invoices up to $100,000 associated with the construction of the Lambert Lane Substation in Standish.

You can find the FIRST hint of a Lambert Lane Substation in LMUD's July 6, 2011 Minutes. The Minutes state that during the latest LMUD bus tour, David Folce mentions "moving the substation in Standish".

LMUD's Standish Substation. Four miles from the Lambert Lane property owned by Hazel Campbell

The Lambert Lane Substation first appeared on a LMUD Agenda on August 23, 2011 but was deleted prior to the meeting. The September 27, 2011 LMUD Agenda placed the purchase of the Lambert Lane property APN 119-280-12-11, owned by an elderly widow Hazel Campbell. The LMUD Minutes state that LMUD intended to purchase only 6 acres for $20,000. The parcel is a flat undivided 10 acres.

Lambert Lane 10 acres owned by Hazel Campbell. Four miles from LMUD's Standish Substation

Also mentioned, in the closed session decision to purchase this property, was a concern by Fred Nagel about BRINGING IN FILL DIRT PRIOR TO THE PURCHASE

At the November 29, 2011 LMUD meeting, Agenda Item 10 authorized General Manager/Bookkeeper Bill Stewart to sign the purchase agreement with Hazel Campbell of Sacramento.

At the November 29, 2011 LMUD meeting, Agenda Item 11 authorized General Manager/Bookkeeper Bill Stewart to sign invoices up to $100,000 without Board approval for expenses associated with the Lambert Lane Substation.

THE LMUD BOARD HAS NEVER APPROVED OR BUDGETED THE CONSTRUCTION OF A NEW SUBSTATION AT LAMBERT LANE IN STANDISH.

The LMUD Budget (July 1, 2011-June 30, 2012) states that "rebuilding" (?) the Standish substation will cost $145,000.

On December 6, 2011, Mr. Folce announced that the cost to BUILD the Lambert Lane Substation will be $1.2 million dollars.

LMUD records indicate that $204,986.23 was spent to install a new transformer at LMUD's Richmond Road Substation. This amount included the "rebuild" costs for this substation. The February 23, 2010 LMUD Minutes indicate that the LMUD Board approved the purchase of "transformers and associated equipment" (LMUD Purchase Orders #2010022 and #2010023) and approved the General Manager to sign the Purchase Orders.

LMUD Minutes; February 23, 2010

LMUD has illegally redacted (covered up) the dates of these purchases but the earliest start date on the Richmond Road Substation is July 1, 2010. On July 1, 2010 $87,721.78 was posted for the Richmond Road substation transformer

Wayne Langston was the LMUD Board President, Bill Stewart was the LMUD Accountant and Richard Vial was the LMUD Treasurer at this time.

At the September 28, 2010 LMUD Regular meeting, LMUD President Wayne Langston announced that he witnessed the new transformer installed at LMUD's Richmond Road Substation on September 22, 2010.

LMUD Minutes: 9/28/10

Oddly, at this same meeting, David Folce asked the LMUD Board to allow General Manager Luhring to be allowed to approve purchase orders that exceed the $10,000 limit for two projects, Richmond Road and Millwood substations, that had been close to completion.

This was an odd request due to the fact that most of the work at both of these substations were relatively completed. According to public records, only $19,153.47 was spent on the Millwood substation but this was over a long period of time (2/1/06 to 10/23/08). Also each of these purchases were all within the $10,000 limit of spending without the LMUD Boards approval.

What the public did not know is the LMUD Treasurer Richard Vial, Accountant Bill Stewart and General Manager Ray Luhring, on September 9, 2010 (three weeks before any LMUD Board meeting) had opened an illegal general ledger account for a project that did not exist.

According to LMUD records, the phantom Lambert Lane Project number was GT-0711. LMUD issued a Purchase Order (#20100099) on November 4, 2010 for $104.13 and an additional purchase of $5,877.98 for a NON EXISTENT LAMBERT LANE PROJECT. Both purchases were under the $10,000 imposed limit by the LMUD Board. LMUD paid for these with a wire transfer so they would not show up on their check register.

However, from November 10, 2010 to June 22, 2011 Bill Stewart posted $321,181.02 for 4 transformers under Project GT-0711, Lambert Lane. This LMUD purchase order (#20100140) now exceeds $358,000.

LMUD issued check #27551 for $96,538.44 on October 1, 2010 for a transformer under LMUD's Purchase Order #20100140, Lambert Lane substation. The latest check issued, check #29400, was issued by LMUD for $155,274.29 on June 30, 2011 for a transformer for Lambert Lane.

One Big Question: Where are the 4 Lambert Lane substation $358,000 transformers

The July 27, 2010 LMUD Minutes, Agenda Item 8, reveals that LMUD purchased $78,000 of custom wire and did nothing with it.

What happened to this wire? This is inexcusable by itself, but to order 4 transformers at a cost of $358,000 makes you sit up and take notice

LMUD began moving hazardous waste from their 1605 Chestnut Street property in 2004 to APN 119-200-10 in Wendel, CA, in 2004. According to LMUD Director Fred Nagel's 700 Form Fred Nagel owned this property in Wendel.

Why did LMUD publicly state that their contaminated dirt was being moved to an Assessor's parcel number that in 2004 did not exist. Assessor records show that , in 1997, Fred Nagel divided his parcel APN 119-200-10 into two parcels, APN 119-200-23 and APN-119-200-24/119-350-2

The EPA, Department of Toxic Substances Control stated that the PCB's from LMUD's 1605 Chestnut Street property were moved to LMUD's Richmond Road substation and then moved to Fred Nagels property (APN 119-200-10). No record of where the contamination was stored prior to 1605 Chestnut Street (This property is contiguous to 1545 & 1555 Chestnut Street).

On November 7, 2005, LMUD was fined $9,000 for moving PCB hazardous waste with forged Federal transport documents. Paul Glau was LMUD's HazMat Manager.

Coincidentally, Fred Nagel sold this parcel (APN 119-200-23; aka APN 119-200-10) on October 13, 2004 to Michael Dinkfeld.

On December 12, 2005, General Manager/General Counsel Frank Cady secretly orders an appraisal (John Bentley, $4,500) for two Susanville properties, 1545 & 1555 Chestnut Street. Kan We Help requested a copy of this appraisal and Frank Cady refused to release it

On February 1, 2006, Jack and Nancy Beterbide owned 1555 Chestnut Street (APN 101-150-02) but do not own the contaminated parcel 1545 Chestnut Street (APN 101-150-23). On February 1, 2006 Robert and Gail Prosise's owned APN 101-150-23.

Left: Jack Beterbide, Fred Nagel and Frank Cady's friend. Upper right, Frank Cady

Jack and Nancy Beterbide were instructed to purchase the Prosise's contaminated property (APN 1545 Chestnut) on February 1, 2006 for approximately $121,000. It has already been pre-arranged for LMUD to buy the contaminated property (1545 Chestnut) and the Beterbide's property (1555 Chestnut) on the same day, February 1, 2006. LMUD paid Jack and Nancy Beterbide $381,232 for both parcels.

Fred Nagel and Frank Cady knew this property was contaminated and set up a secret purchase with Nagels friend Jack Beterbide, who at the time did not even own this worthless piece of property.

In a world of connected brain cells, one can safely surmise that LMUD was clearly aware of the contamination on these parcels prior to moving forward with this "unapproved" manipulated "quick" sale and paying $381,232 for the privilege.

Make no mistake, Fred Nagel and Frank Cady were intricately knowledgeable of this worthless property on February 1, 2006.

LMUD,now, has to move this contaminated hydrocarbon dirt from 1545 Chestnut to Fred Nagels property in Wendel

Fred Nagel sold his second parcel in Wendel (APN 119-200-24) on March 15, 2007 to a Cupertino, CA family (The Fantozzi's, 10915 Linda Vista Drive, Cupertino, CA 95014)

The "property" in Wendel is being monitored for contamination. The Chestnut property is near wells and must be tested for years. LMUD ratepayers will be liable for any future lawsuits concerning this contamination.

On December 17, 2007LMUD purchases another contaminated parcel. This time they purchase a worthless 13 mile 69 kv transmission line from Kinross/Hayden Hill.

LMUD threatened to take this property through eminent domain and this forced Kinross to sell this property to LMUD for $65,000.

Now, LMUD wants to give it back. LMUD filed a lawsuit, in 2011, against Kinross stating that Frank Cady had no authority to purchase this property. Cady not only had authority to purchase this property but LMUD then unsuccessfully lobbyed the Lassen County Supervisors to waive the permit and bond issues for three years

B. LMUD Director Fred Nagel signed the check, on December 13, 2007, to Kinross before the Purchase Agreement was even signed

In September 2011, LMUD claims that they have completed the purchase of ATT's "buildings" on BLM property for $2500. (APN 109-010-04) but did not disclose the cost of leasing the BLM property that it sits on.

The purpose for purchasing these buildings: the Dead 239 kv Transmission project.

Now, let's look at LMUD's contradictory history or intentional lies

of the Viewland Substation

Viewland first appeared at the June 23, 2009 LMUD meeting. Closed session Agenda Item 14 (B) referenced the ATT Equipment Site at Viewland . Real Estate discussions must be first placed on the open Agenda prior to being placed in closed session.

LMUD knew to comply with the Brown Act they must allow open discussion first but intentionally did not do this.

LMUD January 26, 2010 Minutes, Agenda Item 8, states that staff was internally studying the transmission tariffs for a 230kv transmission line in Viewland and it is 3/4 done. Like the phony Arrowrock project, LMUD makes innocuous references and hopes no one will ask any questions. No study has ever been released by LMUD.

LMUD November 23, 2010 Minutes, Agenda Item 7, states that Director Vial and Director Bowden visited the ATT building at Viewland and said that they were very impressed.

LMUD January 25, 2011 Minutes, Agenda Item 13 states the first discussions on the purchase of ATT's Viewland buildings. LMUD attorney Eugene Chittock supports this site for theDEAD 230kv transmission line project.

LMUD knew the site was contaminated. Director Dow asked about this contamination and Chittock stated that "Phase I" would be completed on the property prior to the sale. An amended Phase I Environmental Site Assessment was completed on August 2011, by Chico Environmental. This assessment defined the contamination.

First indication, in LMUD Agenda Item 14,that the LMUD Directors would move towards planning a "financial obligation" to this DEAD 230kv Transmission Line project. Bill Stewart is attempting to duplicate the Arrowrock smoke screen.

LMUD April 5, 2011 Minutes, Agenda Item 11, states that LMUD Director Fred Nagel said "regardless of the outcome on the 230 kv transmission line project, the District needs to focus on the Viewland Substation".

Nagel also told the LMUD Board at this meeting: "Let the big developers do the appraisal and then show LMUD the worth of the project"

At the same meeting LMUD Director Dow states "the District needs to be looking toward the future. If the 230 kv line moves forward, the District will need help. It cannot be accomplished in-house"

LMUD April 25, 2011 Minutes, Agenda Item 5, LMUD Board Members spending thousands of dollars attending meetings all over the country, only to be told that the 230 kv transmission line is DEAD.

LMUD is not going to need to "set aside" any funds for this DEAD project

Agenda Item 13, LMUD's General Manager/Accountant Bill Stewart now wants the LMUD Board to hire the consulting firm Navigant, for a mere $17,000 to "develop" the DEAD 230 kv transmission line to the industry. All 4 Board members approved this contract. Direct Jay Dow was not present.

Instead of lowering the LMUD RATES by one cent, the LMUD Board considered and then approved a one cent dedication toward the DEAD 230kv transmission line project, the ATT/Viewland site (that LMUD does not even own) and even moved $1.5 million dollars from the Rate Stabilization fund to a special fund for the DEAD 230 kv transmission line project.

Bill Stewart, a Frank Cady protégé, tells the LMUD Board members that the one cent will produce $8.5 million dollars in 5 years.

Bill Stewart committed the ratepayers to tie up 10 million for a project that does not exist.

Fred Nagel went on to say, at this very same meeting:

"LMUD's involvement in the financing aspect would be very minimal

The LMUD May 24, 2011 Minutes, states that LMUD Director Fred Nagel (a PSREC customer) told the LMUD Board that the Memorandum of Understanding 230 kv partners (LMUD, WAPA? and TANC ?) believe the market is stalled on renewable energy and none of the big power entities are interested in putting further time or money into this project.

This group decided not to continue meeting, but Stewart tells the Board they should still spend the money to "travel" on behalf of this now DEAD project.

Somehow, now PSREC has slipped into the picture for the 230 kv line. In the past, PSREC customer Fred Nagel has made sure that LMUD money is used for PSREC studies and other asundery crap.

The LMUD June 28, 2011 Minutes, states that Fred Nagel and Bill Stewart traveled to Reno to attend a meeting with NEAC (Nevada Energy Assistance Corporation). Nagel claims that the ATT/Viewland site will be a good location for the RAT line (Reno/ALTURAS transmission line).

The LMUD July 6, 2011 Minutes, Agenda Item 4, on the LMUD Site bus tour, David Folce told the group that LMUD was interested in the ATT communication site known as Viewland because of its close proximately to the RAT line. ABSOLUTELY NO MENTION OF THE 230 kv line or the $10 million dollars LMUD plans to spend on it. The site now has a 60 kv transmission line.

This bus tour also mentioned the proposed "MAPES SUBSTATION". If you are not following the dotted line, LMUD plans to have 4 substations in the Standish/Wendel area. Lambert Lane, Mapes, Viewland, Standish. Did we miss any?

The LMUD September 27, 2011 Minutes, Agenda Item 8, states that Bill Stewart and David Folce met with NV Energy to discuss the interconnection possibilities at the proposed Viewland station.

Agenda Item 12 states that the existing 60 kv lines at Viewland work.

Can anyone imagine the collective outrage by the ratepayers if they knew that the 1 cent LMUD put aside for the DEAD 230 kv line was a fraud.

David Folce told the LMUD Board that the 60 kv will work but LMUD would have to install "phase shifting transformers" ....$10 million worth??????

Closed Session Agenda Item 15 dealt with the LMUD Board voting unanimously to purchase the ATT buildings at their Viewland site for $2,500. The LMUD Board also approved the Right-of-Way Lease for the BLM 40 acres surrounding ATT's buildings. No cost was disclosed.

LMUD October 25, 2011 Minutes, states that Steve Metague, from PGE said that he had not received sufficient interest from developers about renewable energy (wind, solar). Bill Stewart told Mr. Metague that LMUD will not participate in the 230 kv transmission line project until further notice. Even though PGE was not a part of the 230 kv MOU, they were suddenly an integral part.

Bill Stewart announced, to the LMUD Board, that he intends to travel to Tempe, Arizona on the 15th of November for a meeting on the 230 kv transmission line. ALL OF MR. STEWART'S TRAVEL SHOULD BE CAREFULLY LOOKED AT.

Bill Stewart is not only NOT qualified to be a General Manager and clearly... he cannot be trusted with public money

The Lassen County Times has to take responsibility for enabling LMUD. They sanitize or ignore the facts

The Lassen County District Attorney is responsible for the corruption at LMUD. Burns ignores the law breaking

In any other County, LMUD Board Would Face Criminal Charges for Their Lambert Lane Shill

The LMUD Board, Bill Stewart and Eugene Chittock knowingly and intentionally violated this section for many meetings.

This LMUD Board spent over $400,000 without the publics knowledge on a NON EXISTENT PROJECT