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SPENCER L. BUTTERFIELD V I C E P R E S I D E N T WILLIAM COULTHARD S E C Y .- T R E A S . HARRY E. MILLER E. OTTO UNDERHILL JAMES CASHMAN JO H N BUNCH Officers and Directors THOMAS A. CAMPBELL PRESIDENT LAS VEGAS VALLEY WATER DISTRICT 9 0 0 S O U T H 5TH S T R E E T LAS VEGAS, NEVADA Telephone 5920 HOWARD F. CLARK C H I E F E N G I N E E R A N D M A N A G E R P. O. BOX 1448 November 29, 1951 In a telephone conversation on this date with attorney Franklin Ham ilton, of G 'M e lve n y & Myers In Los Angeles, the problems confronting the District in the event of acquisition of the Las Vegas Land & Water Company irrespective of acquisition of the Las Vegas Land & Water Company individually without first arranging for a supplementary supply from Lake Mead through the Henderson facility was further discussed. Reference was made to the opinion previously rendered by O 'M e lve n y & Myers to the effect that once the District acquired the local water com pany, the District would be exposed to the necessity of supplying water outside the city limits within the boundary of "reasonableness". That is, that if a prospective consumer outside the Incorporated limits of the city of Las Vegas called upon the Water District to supply them with water, the District would be compelled to furnish water unless the extension of mains was deemed "unreasonable". It had been suggested by O 'M e lve n y & Myers that it would pose a very serious obstacle to the District in going to the public for approval of a bond Issue to finance acquisition of the Land & Water Company because it would mean that the residents of the city <f Las Vegas would be voting themsleves Into debt to purchase an early diminishing asset which could be further depleted by a diversion cf water to consumers outside of the city . However, at the request of the District, O 'M e lve n y & Myers have given further study to the matter with the result that they now believe that there are practical elements which may cffset the inherent objections outlined above, v i z . : O n the assumption that the municipalities should step in and acquire the local Water Company's facilities, the problem would still exist with respect to depletion of the available underground water supply. Although the m unicipality would not be required to render service outside of the city lim its, new projects in the resort hotel area on the "Strip" would have the right to drill their own wells and develop their own water supply. Consequently, In substance, they are going to be tapping the same resources upon which the city is drawing for its supply. So, even though the existing or prospective consumers outside of the city limits are not drawing on the city supplydirectly, they are drawing on the same underground supply. There Is a further possibility that If that is the fact, might It not be better for the District to acquire the Water Company and place itself in the position of drilling