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m / \J Los Angeles, June 16, 1949 1-7334 Mr, A.- E, Stoddard: (CC— Mr. A, M. Folger) Mr. E. E. Bennett LVL&WCo, Rule 9-A, approved by the Nevada Public Service Commission, covering installation of water mains to serve new developments at Las Vegas, provides: "Whenever an application for water service is received which will require the Company to extend its water mains or service pipes more than fifty feet, exclusive of the service pipe of each customer to be served (as shown in Rule 9 of this Company's rules and regulations) the customer or customers shall enter into a contract to advance sufficient money to cover cost of making such extension. The amount advanced shall be refunded to the applicants advancing same at the rate of 50# of the customers' monthly bills for water for a period of ten years, or until the full amount advanced has been refunded, whichever occurs first. All such refunds shall be made by deducting the amount thereof from the customers' monthly water bills," Under this rule, if several applicants request an extension and the extension is less than 50 feet per consumer, the Water Company is obligated to construct the extension without cost to the consumers, However, in the case of a housing project, where the developer proposes to erect a number of houses for sale or rent, we have required the developer to advance the cost of the mains subject to refund as provided in Rule 9-A, The rule has been subject to considerable criticism by subdividers and developers of housing projects, as it may take 10 years for the subdivider or developer to pecover his cost, and in some Cases he will not obtain full refund, Nomellini Construction Co, proposes to construct 200 homes in Paradise Village Tract, requiring the construction of 8,900 feet of water mains, estimated to cost #36,000, and has requested refund of the entire deposit upon completion of an agreed upon number of homes in the Tract, an arrangement similar to that in effect during the development of War Housing project as covered by our former Rule 9-C, which read: f t if m L . C . C . JUL IS ^49