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Mr* Tta. Reinhardt 3. September 30, 1952 Accordingly 'I recommends !• Th&t the Railroad Company Immediately transfer to the |,fV- ?# Compaay at book value the 4 o /V 5TB acre® of laud and the water production fa­cilities which the District is now negotiating to buy; • .? . 2* That the Railroad Company grant a li­cense, subject tet termination upon short notice, t© the. LTJjdf Company for pip# line and power ' line rights of way across the retained lands of the Railroad Company; 3* That the Water Company immediately start serving Industries now served by the Railroad {excluding perhaps the P.F,S*) by proper'tariff publication* 1 understand it will he necessary to construct a pipe line a-cross. the Railroad yards to connect the P»F«2»- to the shop-welt, so it might be necessary for the winter Company to furnish water -te the ?.F* ?S* during m interim period.* 4* 1 That the Las Togas Land end Water Com­pany execute a mortgage upon its entire, water ays tew in favor of the' Railroad Company to se­cure advances which the Railroad Company has already made to the water department and which it will have made by the transfer of its facil­ities to the Water Sompeny. It appear# to me , that interest on such advances should be charged* 5* That the existing contract between the l&ilroad-fiud the !..VJA^ Company be super­seded by one providing that the Railroad Com­pany will maintain and operate the water pro­duction facilities at actual cost of labor and materials plus the present management fee.This would eliminate the present interest charge and lucerne tax allowance billed to the LTwfcW Company* If It were decided to have the main­tenance and operation crews in the water field on the payroll of the Lft&w Itself rather than on the Railroad payroll, the only charge which the Railroad would make to the Veter Company would be for management services and interest on the advances.