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Attending a LMUD meeting is like sitting in a room with a one-way mirror. You can see the Board, but they can't see you

Nagel & Langston did not live in LMUD service boundaries when they were "put" on the Board..Nagel still does not live within the LMUD service boundaries

This Board has so much to hide that they can not, under any circumstances, let the public comment on the BUSINESS PORTION OF THE LMUD MEETING. 

NOTE: KWH member ,Eileen Spencer, and others were thrown out of meetings, by Wayne Langston, for objecting to the LMUD Board putting the public's business in the "INFORMATION" portion of the Agenda where they prohibited public comments.  However.......(1/6/05) They now are backtracking. Apparently they were told by the Auditors they LEGALLY can not do this. 

 2002 LMUD board clashes with Cady 

Frank Cady requires LMUD Board members to check their brains at the door and pick up their crayons. 


January 17, 2006

LMUD approves 3% wage increase for management staff

LMUD hires outside CPA firm to find out why the health benefits paid out can not be reconciled. LMUD has a "self funding" account for paying their own medical bills. This account has been under investigation for over a year. 


LMUD listens to Cady and eliminates two Board positions. LMUD now has only a President and Vice-President. The Board eliminated the Secretary and Treasurer's positions. 

Cady appoints Jeri Kresge as the Secretary. She is not an elected official and cannot hold this position. 

Cady is allowed to create a new fulltime position of "Assistant to General Manager" aka Accounting Specialist, Assistant to the Controller. 

The Board approved a payment of $22,500 to NCPA, for the bogus power plant study. 


December 20, 2005

KWH asks LMUD to post Agenda on website


(As of 8:30 PM on 12/19/05, no agenda posted on the LMUD website for the December 20, 2005 regular meeting). REGULAR MEETINGS MUST BE POSTED 72 HOURS PRIOR TO THE MEETING. PUBLIC MUST HAVE ACCESS TO POSTED AGENDA. 

Brown Act


December 6, 2005

Frank Cady claimed that the public agreed with the rate increase of $.005 per KWH. The LMUD minutes reflect that there was only one person, at the meeting, that spoke and he was asked to speak by the LMUD Board. Cady claimed that the public supported the increase....? link


The LMUD Board told the public that this Special Meeting was to vote on a Line Extension Policy, but they deceived the public by putting the "adjustable rate increase" on the agenda instead. This Board intentionally deceived the public. 

The LMUD Board has not made any payments to WAPA on the "underbilling" issue. Now LMUD is applying for a line of credit.........LMUD has no cash and is quickly depleting the reserves that keep them in compliance with the bondholders. 

LMUD has changed meeting days, scheduled the "Basic Charge" rate increase intentionally to conflict with the City of Susanville's natural gas rate increase meeting, failed to notify the public of the adjustable rate public hearing at the LMUD meeting and lead the public to believe that the public hearing was about the line extension policy. This Board and Frank Cady have done everything they could to keep the public uninformed.

The LMUD Board included Agenda item 5A3 for Consideration of Resolution 2005-22 (Capitalization Policy) but failed to include the Resolution. Cady did this same routine when he introduced the Arrowrock Scam. He talked about this nebulous project but never prepared a Resolution. Arrowrock was the biggest lie that Cady presented to the Board and now he's trying to bring another "Arrowrock" type project to the Board (Resolution 2005-21). This is identical to Arrowrock. Only Cady's law firm will benefit from this bogus project. Like Arrowrock, LMUD was on the brink of bankruptcy. What better time to bring another bogus project, CVP gas fired plant, WHEN LMUD IS BROKE. Arrowrock was a lie and diversion. CVP is a lie and a diversion.

 A federal and state investigation is needed to clean up Lassen Municipal Utility District. 


November 22, 2005

LMUD to hold Public Hearing for a line extension policy at Special Meeting. This website was told that LMUD did not have to hold a Public Hearing for a policy change. 

The General Manager will most likely try and sneak in the "adjustable rate increase" at this Special Meeting. If the LMUD Board is allowed to adjust the rates "at will", this will be the most devastating act by this LMUD Board or any future LMUD Board. 

November 9, 2005

The General Manager will submit a request to raise commodities rate. No Board Packet available to public as of 11/9/05. The LMUD Board does not make the  Board Packets  available to the public prior to the meeting. 

October 19, 2005

LMUD's website was down the day of the meeting. The public had no access to the General Manager's report

Over 75 people attended the LMUD meeting. Standing room only.

The LMUD Board approved a change to the Basic Charge to a flat fee of $8.00 and voted not to continue their involvement with the Co-generation plant at the State Prison. 

October 12, 2005

LMUD posts the October 12, 2005 Agenda on October 7, 2005 (on the website) 

LMUD's Board Packet web page, not available @ 10/12/05; 5:30 PM. Board Packet not available to public prior to meeting.  LMUD makes Board Packet available on website the following day (91 pages)

LMUD continues to not include Resolutions in their Agendas. The LMUD Board can not take action on Resolutions not posted on the Agenda. Resolution 2005-16 was not on the Agenda. 

September 28, 2005

As of September 27, 2005, at 4:00 PM, no special meeting notice was posted at the LMUD office

No Board packets were available to the public, as of 5:30 PM on September 28, 2005. The Board packet was never posted on the LMUD website. 



September14, 2005

All Board members were present. Barbara France, LCT, was present.

The meeting started at 5:30 PM.

Since Frank Cady is being allowed to act as General Counsel and General Manager, he decided to stay in his old seat.

Cady pontificated for one and a half hours about the history of energy and "his" huge importance to the industry. According to Cady, all energy deals go through him....? Sad..


There was no public comment.

The Board went right to General Manager/Counsels report. Frank Cady announced that Paul Glau will be the new Hazardous Waste/Safety person since  Bill Waltman quit. Three employees have left since Cady arrived. 

    Paul Glau, far right, new LMUD Haz/Mat manager

Frank Cady "told" the LMUD Board of Directors that he was considering a 5% incentive to anyone that would "cross train". (Cady Policy not Board Policy)  Frank Cady reported that there were three major outages; Eagle Lake, Litchfield and Westwood. 

Frank Cady announced that he has reduced the Engineering candidates down to two. He also made a statement that he does not like LMUD's present retirement system. Cady claims that LMUD lost a lot of candidates due to the fact that LMUD is not part of the PERS system. 

LMUD is Broke

This LMUD Board, under the direct advice from Frank Cady, has squandered, wasted and totally disregarded their fiscal responsibility to the ratepayers that supposedly elected them. 

Increase in Fees

Cady "told" the Board that he was considering a "facility charge". Cady said that PSREC has a "facility charge". Cady recommended that the $3.50 fee now charged LMUD ratepayers be increased to $23.50. That would decrease LMUD's present negative cash flow approximately $180,000 a month ($2,160,000 annual increase).  This can be translated to each ratepayer as an annual "increase" of $240.00.

Frank Cady told the LMUD Board that "the meter readers stop and have coffee with residents to catch up on local gossip"

The average time a meter reader is at a residence is less than 30 seconds....but Cady wants to spend money on a "STUDY".  Duhhhhh, ask the Meter Reader. 

Increase in Rates

Cady also suggested that LMUD institute a "flexible rate" or a 15% to 20% flat increase in rates. With a "flexible rate" the ratepayer will never know what their electric bill will be from month to month. 

A 15%- 20% increase in the rates would give LMUD $2,400,000 to $3,200,000 more to squander. This has been the worst LMUD Board, in this small utilities history. and it is only going to get worse. Frank Cady can spend at will budget restraints, no authorization needed from the LMUD Board. 


Langston has never made very many, if any, intelligent remarks, but this maybe on the TOP TEN MOST STUPID THINGS that he has said to date. 

Langston also "chimed" that the LMUD Board is aware that there will be a $4,541,153 million dollar deficit at the end of this fiscal year.  link

THEY ADMIT THIS and they continue to squander money with unsound decisions.....WHY?....The LMUD Board simply doesn't's our money not theirs...........

FRANK CADY then told the Board that he purchased an $8,000 copier that had not been appropriated by the Board. Cady ranted that it was legal...which of course it was not....and that he would continue to purchase capital expenditures at will. He told the Board that he is required only to put out to bid items over $25,000.....and....what does that have to do with spending "non-budgeted" capital expenditure items ????????

Fred Nagel said that it was okay, as though he was facing upsetting the  "godfather". It was pathetic (on Nagels part) and sleazy on Cady's part. Cady is slowly and methodically eliminating the Board's authority....

FRANK CADY THEN WENT ON FOR ONE HOUR AND A HALF ON THE HISTORY OF ENERGY. By the time he stopped, he probably thought he had Barbara France and the attendees,  thinking that he ran the world of power.  It was more or less pathetic because 75 % of what he spewed was pure horse shit. He dropped names in the industry that depended on him, meetings with companies that are "courting" LMUD and specifically Frank Cady.....................Rhetoric piled on redundancy.....Frank Cady suffers from delusions of grandeur and the ratepayers are paying.......paying and paying.  

We will spare you the details of his diatribe, but reserve the right to interject all of his comments (from notes of the meeting) when it may be necessary....

Controllers Report- Since Bill Stewart was not in attendance, there was no Controllers report. The report that was included with the Board packet paints a gloomy forecast for LMUD and no efforts are being offered to change this. 

rumors of .........bankruptcy, bankruptcy, bankruptcy 

Treasurers Report- Fred Nagel

Cady (for the moment) is still allowing him to be the official LMUD Treasurer . Nagel stated, at the last meeting, that he would not be making anymore reports....nonetheless he made one. Using his computer graphics he very carefully told the Board that things aren't very good.   $4.5 million dollar deficit by the end of this fiscal year.... Nagel found humor in the state of LMUD's pending financial tragedy.....where there was no humor. LMUD is using their reserves which simply putting the bond covenants in jeopardy again. Fred Nagel did not suggest reducing their wasteful spending...........As an elected officer, he offered nothing.......nothing at all. 

Action Items:

5 A 1- Approval of Minutes, August 10, 2005 and August 31, 2004. The minutes were approved.

5 A 2-Consideration of purchasing a copier- No consideration needed, Frank Cady made the decision for the Board and bought one. This was not an approved budget item. Look for more abuses...

5 B-Approval of "Service contract". Frank Cady explained that this was a "clean up" contract. Frank Cady has been LMUD's legal counsel for almost 15 years and failed to execute legal contracts with vendors, law firms, etc. He did a huge "clean up" effort when the auditors pointed this out to him a year ago. Is Cady Cady honest? 

5 C-Appoint NCPA Commissioner, Alternate and Essential Staff. Cady suggested to the Board that he be the NCPA Commissioner. The Board voted to keep Fred Nagel as NCPA Commissioner, but Fred later stated that he would trade with Frank when needed. This looked to be another rehearsed dog and pony show. Who knows what the purpose was. 

5 D- VIOLATION OF THE BROWN ACT. The LMUD Board failed to agendize Resolution 2005-14. They passed this resolution without being on the agenda, voiding their vote.  link

(This resolution ultimately gives Cady the right to make LMUD policy without the Boards involvement)

Frank Cady now can order 10 computers and give 9 away as surplus.  There is nothing that can stop him. The Board doesn't care as long as they get their fair share.

Cady determines what is bought and what is given away. 

We understand that a person like Frank Cady is not given to abuses, corruption.....or dis-honesty for that matter. 

5 E-Payment of bills passed unanimously.

Jaimee Richey, illegal counsel for LMUD and law partner of Frank Cady, told Barbara France that there will be no action in closed session. France then left.    Frank Cady didn't spend 1-1/2 hours on how great he is for the defunct Board.


  Look for a "full page" expose, from Barbara France on how great (how great a crook that is) the General Manager is

 France gets upset with this comment

The meeting adjourned to closed session at 7:45 and reconvened at 8:20


Boards Evaluation and Cover up of Frank Cady and Jaimee Richey's dishonesty and fraud to obtain public contracts. No action reported. 


August 31, 2005



The LMUD Board will do nothing

Cardenas threatens to call police "during" public comment. 



Frank Cady and Darrell Wood were absent from the LMUD Special Meeting on 8/31/05

Jaimee Richey threw the complaint in the trash can 



The LMUD Special Meeting started at 5:30 PM. Lassen County Times News Editor was not present but was given a copy of the complaint after the meeting.

Action item 5 B. Renewal of insurance-Bill Stewart asked the Board to write the insurance policies to coincide with the Districts fiscal year. Fred Nagel commented that the Board might consider writing the power contracts to coincide with the fiscal year (July 1-June 30) The Board approved unanimously to allow Stewart to sign the insurance contracts.

Action item 5 C. Consideration of payment of bills. The Board approved the payment of bills unanimously. 

Jaimee Richey submitted a bill for July Services for $15,157.16. There is no LMUD litigation and LMUD is approving legal expenses for redundant legislative work (Thousands of dollars also (each month) to many other law firms) So there is absolutely no justification for paying Frank Cady and Jaimee Richey for bogus legal fees. Jaimee charges abusive amounts for speaking with LMUD staff.............  

The LMUD Board has failed in their fiduciary duties

Action item 5 D.- Approval of "Interim Attorney" Richey's "vacation" to a NCPA Conference on September 21-23. 

Jaimee Richey claims that she will only charge for expenses, hotel, meals, mileage.....Frank Cady submits a "bullshit" memo to the Board to get her $180 per hour while she attends this three day event. The Board did not approve the hourly fee.

Richey not "interim counsel" 

Richey interim counsel 

Public Comment: Eileen Spencer handed the LMUD Board a copy of the KWH Complaint against Jaimee Richey and Frank Cady. Nancy Cardenas asked what this had to do with the agenda item. Eileen Spencer told her that there was no need to approve funds for someone that they had to terminate for dishonesty and fraud. Langston "interrupted" and chimed that there has been no fraud. Spencer told Langston to read the complaint. It was undisputable. 

 Ms. Cardenas asked Ms. Spencer to sit down. Ms. Spencer was in the five minute public comment period. Ms. Spencer continued to tell the Board, within the time allotted for public comment,  that it is important that the Board understand that this report has been given to the appropriate agencies and that what KWH does depends on what the Board does with this complaint.  Dramatically, the timer kept by Jeri Kresge rang. Ms. Spencer's time was up.

Nancy Cardenas looked at Wayne Langston and said "Do we call the police now?"

All First Amendment RIGHTS are suspended when you attend a LMUD meeting. 

Ms. Cardenas did not like what was being said....the remedy:  call the police. 

The ignorance, immaturity and possible involvement by Langston was evident when he threw his copy of the complaint on the floor. 

This Board is one the most corrupt in the County. 

Action item 5 E- Consideration of annual fee to CMUA. The Board approved this expense unanimously ($5,000) An extreme redundant cost for the ratepayers. 

The meeting was adjourned at 5:45 PM.


August 10, 2005


The LMUD meeting started on time (5:30 PM) with all Board members 

present. The Lassen County Times, Barbara France was present. 

Since Frank Cady represents LMUD as General Manager and legal counsel he decided that he needed to move his seat where the LMUD general counsel usually sits. Old habits are hard to lose. 

Board packets were not ready and were handed out at the meeting. The public had no opportunity to review any of the documents prior to the meeting. 


Eileen Spencer presented President Cardenas with a copy of Darrell Wood's "Board Member Statement of Meetings" report for June/2005. Darrell Wood did not identify any legal events on his timesheet, he merely writes "LC" . JUNE 2005. His arrogance is only superceded by his lack of respect for the law. 


Staff Reports

Frank Cady asks the Board to delete the closed session agenda item. 

Bill Stewart told the Board that no insurance company was interested in writing a policy for the District. Frank Cady said that he knew someone that was interested. Darrell Wood said that he used to sell insurance and said that he would look into it also. 

General Manager Report

Frank Cady reported that he was re-instating (?) the outage report. Cady reported that there was no Personnel Report yet Sharon Edwards was brought in to fill in for "who"? LMUD seems to have lost another employee (Payroll clerk ?). 

Bill Stewart no longer does the "Cash Trend & Budget" report. It seems that Cady is reducing Stewarts responsibilities. 

Frank Cady reported that LMUD's expenses exceed the revenue. He reported that there is no money for maintenance or upgrades. He told the Board that there is only $438,441 available for $2 million dollars worth of capital expenditure projects. 

NOTE: The Bond Covenants are being met only by the COP fund (Balance in COP Fund, $2,599,778) & Rate Stabilization fund (Balance in Rate Stabilization Fund, $3,000,000). These funds were not designed to be used to keep the District solvent. LMUD cannot use any of the COP funds now for Capital Improvements. This has been the worst management of LMUD since the public recalled the Directors in 2002. LMUD has no cash.  

KWH has been telling the Board this for three years..!!!!!!

Cady told the Board that two projects must be completed, Bunyan Road and the Numa project (new developments off of Skyline). Director Langston asked if the $99,000 of wire, in inventory, was included in the  $294,000 budgeted for the Numa project. Cady responded that the wire, in inventory, is for both the Bunyan Road and Numa projects. 

Cady told the Board that he may have to come back to them with permission to buy power. Cady has brought this up so many times. He knows that the Board voted to allow him or basically anyone at LMUD to enter into a power purchase agreement. 

Cady said that if LMUD were to extend the Coral Contract one calendar year, it would cost an additional $1.9 million. To extend the contract 3 years, it would cost an additional $2.1million per calendar year. Five years, $1.9 million per calendar year. 

Financial Report

Bill Stewart reported that the cash is off $2.2 million. Cardenas suggested changing the cash report to make it look better. Bill Stewart told her that 2+3 will still equal 5.  NOTE: Cady has eroded Stewarts duties and will control the finances himself.

Treasurers Report

Fred Nagel is LMUD's treasurer. He had no report. NOTE: Cady is eroding the Board of Directors duties and will control the finances himself. Nagel reported that he will no longer give a Treasurers report. 


Action Items: (open to public comment,....sometimes)

President Cardenas pulled Agenda item 5C for discussion.

Eileen Spencer asked whether or not the "F/Y 04/05" on Agenda item 5 A3  is correct. Cady said that Spencer was correct and  it should be 05/06 instead of 04/05 and asked the Board to correct it. Bill Stewart said that 04/05 was correct.  Because no one seemed to understand what they were doing the Board decided to leave the F/Y at 04/05. 

LMUD August 10, 2005 AGENDA should be F/Y 04/05 since the Board was only acting on a previous motion. The Board decided not to advertise for a new auditor...did Steve Pezzullo and Frank Cady make up.....????? Did they come to an understanding about how the 04/05 audit will look?  This "re-newed" relationship will be monitored....................

Public Comment on Action items, 5 A, 1-3:

Agenda item 5 A1- No discussion. Board unanimously passed this motion

Agenda item 5 A2- KWH member Eileen Spencer told the Board that LMUD is cash poor and now they want to pay for another EXPENSE. Spencer asked Cardenas if this is a one-time shredding service or an ongoing service. Cardenas did not know, yet she voted on this expense. Cardenas asked Frank Cady. Cady gave a long, monotone answer that only required a yes or no. Spencer asked if there would be a record or list of the documents being shredded. Cady said no. Cady said that this service would free staff from having to shred documents. Board unanimously passed this new expense. After the meeting, the documents revealed that this service is for every 8 weeks. 

Agenda item 5 A3- KWH member Eileen Spencer asked the Board about hiring an Auditor at this late date. Cardenas said that they were not going to send out an RFP because the audit was in progress. Cardenas failed to identify who the auditor was. Board unanimously passed this motion.

Agenda item 5 A4

The Board added the President and Vice-President to the list of individuals that can make daily transfers to and from  the LAIF fund. This means that ALL OF THESE PEOPLE can take money out as well as put money in. Where's the accountability. THEY DON'T NEED TO NOTIFY ANYONE. WHAT CHAOS. WHAT SHEAR STUPIDITY

             Resolution 2003-02                Resolution 2005-11


Agenda item B

LMUD voted to send out an "Request for Qualifications and Proposals" for General Counsel Attorney Services. This six page document settles one thing for sure.....Jaimee Richey does not qualify. She specializes in agriculture.......and after three years of practicing law under Frank Cady, couldn't be trusted past her nose. Richey is Frank Cady's law partner. 

LMUD has only one lawsuit pending: KWH v LMUD.  There is no other pending litigation, according to Lassen Superior Court and the Third District Court of Appeals. 

Agenda item C

The CMUD (Cady Municipal Utility District) Board of Directors have emptied the coffers in their three years on the Board. 

Now, this Board voted to hire a Treasurer. A new employee. They have no money to do this but Frank wants complete control of the finances and has found a way to eliminate the duties and responsibilities of elected officials. This new position will duplicate what Bill Stewart does......makes perfect sense. This was a slap-in-the-face to Bill Stewart but a good portion of LMUD's  financial mess is due to the incompetence of Bill Stewart. The rest of the financial mess can be attributed to the LMUD Board of Directors lack of experience and unwillingness to learn.

It was Cady's BEST CRAP to-date. He convinced these elected officials that they do not need to be involved with LMUD finances. Fred Nagel was glad that he didn't need to be LMUD's Treasurer. Nancy Cardenas was happy that she didn't have to come in to sign checks and waste her time on LMUD business. Cady's intent is to keep LMUD Directors away from LMUD business...and he is well on his way of doing it.........



Agenda item D

The Board approved Resolution 2005-13 updating policy in regards to the purchase of supplies and materials pursuant to PUC 12751

12751-Contracts-low bidders

Agenda item E

The Board approved payments. This is something that the Board gives up when the new "TREASURER" IS HIRED. It will be interesting to watch the powers of the LMUD Board erode every month. Frank Cady is already making District policy without approval by the Directors. The law says that only the District can make policy??????

Frank told the Board that the payments will be signed off by the Controller and Treasurer. 



July 13, 2005


LMUD Board 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 2005 MEETINGS continued