upr000275 51

P ^ I - W L * . I / * A § •* isW.*V j i Los Angeles, June IS, 1948 iff* 1-7354 Hr. A, i. Stoddard.; <gv t i *Jr *1 & m f {CO— MMrr.. AE,. #E.. PBoelngneert)t - * 8 LVLAVCo. Hu Is 9-4, approved fey the Sevada Public Service Commission, covering installation of water main© to serve new development* at Las Vegas, provide*; •whenever an application for water service le received which will require the Company to extend Its water sains or service pipes more than fifty feet, exclusive of the service pipe of each cruet oner to be served (as shown in Buie 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 mating such extension, fhe amount advanced shall be refunded to the applicants advancing same at the rate of W % of the customers* monthly bills for water for a period of ten years, or until the full amount advanced ha* been refunded, whichever occurs first. All such refunds shall be made by deducting the amount thereof fro® the customers' monthly water bills.• Under this rule, If several applicants request an extension and the extension 1® 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 main® subject to refund as provided in Pule 9-A. fh» rule ha* been subject to considerable criti­cism by subdividers and developers of housing projects, as it may take 10 years for the subdivider ©r developer to recover his cost, and in some oases he will not obtain full refund. homellinl Construction Co. proposes to construct 200 homes in Paradise Village Tract, requiring the construction of 8,900 feet of water mains, estimated to cost $56,000, and has requested refund of the entire deposit upon completion of an agreed uron number of home* in the Tract, an arrangement similar to that in effect during the development of war Housing project as covered fey our former Buie 9-C, which reads