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LAS VEGAS VALLEY WATER 900 SOUTH 5TH STREET SEGY.-TREAS. HARRY E. MILLER JAMES CASHMAN JOHN BUNCH Mr*. Wm. Reinhardt LAS VEGAS. NEVADA Telephone 5920 -2- DI STRICT April 1, 1954 basic purchase price of $2,500,000, pursuant to the provisions of Paragraph (a) of Section 9 of the Purchase Contract entered Into by the District under date of June I, 1953. As stated In Mr, Montgomery's letter, It is now clearly evident that the District will not be implemented with funds to carry the purchase agreement into effect and develop the urgently needed supplemental supply In time to cope with the approaching critical summer season. The District is now diligently taking the necessary steps to sell the $8,700,000 authorized Issue of bonds ot the earliest practicable time to provide the funds for carrying out the agreement. Ail of the preliminary steps to this end, Involving the preparation of a volum­inous official prospectus and a comprehensive engineering report, were completed last week. Invitations to several hundred prospective bond underwriting firms throughout the country are now being mailed out. Sealed bids will be received at the District offices, 900 South Fifth Street, Las Vegas, Nevada, on or before April 28, 1954 Under usual procedure, at least thirty days and frequently as much as sixty days must be allowed after award of bonds until the proceeds become available,, Consequently, it ap­pears that the District can not now anticipate taking over the Las Vegas Land and Water Company's production and distributing system at any date earlier than the 1st of June, or possibly tome time later. By then it will be too late for the District to develop additional production facilities before the heavy summer demand begins. Very truly yours, LAS VEGAS VALLEY WATER DISTRICT By _________ Thomas A. Campbell, President TAC:fc enc losure