Full Criminal Investigation Needed
Cady screws up PSREC agreement, or did he?
LMUD DONATES PSREC its customers
In an attempt to hide the fact that they couldn't get two signatures in January/2002 (there was a recall pending)...
Cady waits until two PSREC members are put on the LMUD Board. Wayne Langston and Fred Nagel sign the agreement on May 8, 2002 but the legal date, of the contract to transfer LMUD service territory, is January 1, 2002.
Twitchell stated at the November 6, 2003 LMUD meeting that the transfer of Herlong, Sierra Army Depot would be done sometime in December 2003.....
According to Frank Cady, there are no documents related to any filings with any agencies responsible for this transfer . Frank Cady did not do "due diligence" in the transfer of customers. Cady claims that the required paperwork was never done...... So, how legal is the transfer of customer. Where is the money that LMUD was supposed to get from the transfer. LMUD did not budget this income.....????? Did LMUD ratepayers just GIVE AWAY the most profitable customers in the District????
The agreement calls for "economic stabilization" payments to be made by PSREC to the District of $155,000 for each full year that the specified customers are retail customers of PSREC ($100,000 per year for the Sierra Army Depot; $5,000 per year for the Fort Sage School District; and, $50,000 per year for the Federal Prison) through the end of 2010.
The economic stabilization payments will commence after the changeover date. In addition, the District received a one-time payment of $1,250,000 to compensate the District for lost revenue associated with the Federal Prison. Management has treated this payment as a sale of the associated facilities in order to remove the remaining depreciable basis from its books. This treatment resulted in a book gain of disposition of the associated assets of $1,232.439.