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C O P Y <1\ Lae Vegas - June 12, 1946 W 23-4-20 Mr. Prank Strong: W 3-1 (CC - Mr. E. E. Bennett Mr. C. M. Cory ) Referring to your letter May 11, file 1-7334* and Mr. Bennett's letter, same date, file 36-47, Loth recommend­ing cancellation of contract with A. C. Delkin, covering the furnishing of water on a wholesale basis for use at his Lon- G-ene Apartments. I now attach copy of letter received from Public Service Commission, under date of June 7* from which it ap­pears that Delkin has now applied to the Commission for a certificate of public convenience and this has been denied on the grounds that he is not a public utility. Under the circumstances, I assume it would be proper (if not mandatory) for us to promptly serve notice of cancellation on Mr. Delkin. While Section 7 of the contract provides this may be done on six months notice, please note Section 6 provides that contract may be cancelled on 30 day notice for breach of any of the covenants therein, and he has failed to secure the Commission's approval of the contract provided in paragraph 10. If you concur, please arrange with Mr. Bennett to draw the 30 day notice, which I suggest be made effective July 31st, and mail it to him at 1100 Fourth Avenue, Arcadia, California. We will then commence serving the apartments on a flat rate basis August 1st. Regarding second paragraph of Commission's letter: There are only three (3 ) parties to whom the LVL&W Co. serves water on a meter basis, the Army Housing Project, contract for which was approved in Commission's Orders CPC 415* March 23, 1942: this contract with Delkin which is now under dis­cussion; and deliveries to the City of Las Vegas for use in City Park, which is not covered by a formal contract, as far as I can determine. Please see my letter October l6, 194-4, and your reply October 1 9 , 1944, file 1-7334* on this subject and advise if in your opinion formal contract should be negotiated with the City at this time and submitted to the Commission for approval. (Sgd) Walter R. Bracken