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( c o p y ) M LAS VEGAS VALLEY WATER DISTRICT April 1, 1954 Mr. Wm. Reinhardt, Vice President Las Vegas Land and Water Company 4-22 West Sixth Street Los Angeles 14, California Dear Mr. Reinhardt: The District desires to direct your attention to the following statements contained in the enclosed letter, dated March 23, 1954, from James M. Montgomery, District Consulting Engineer: 1 - The coming summer will undoubtedly be the most critical with respect to water supply that the community has ever known. 2 - At the present rate of progress it will be impossible for the District to develop new sources of supply in time for the coming season of high water demand. 3 - It is my recommendation that the District authorize the Las Vegas Land and Water Company to develop or acquire additional production facilities as quickly as possible. I feel that this is the only means now available to assure the required supply before the heavy demand begins. 4 - I feel that in view of the recent growth of Las Vegas the supply should be increased by about 4,000,000 to 5*000,000 gallons per day. 5 - The new facilities should be so located that they will not interfere with the existing wells of the Las Vegas Land and Water Company. This may require the acquisition of new well rights. The District directors are in full agreement with Mr. Montgomery’s statements and have now gone on record with a formal resolution concurring with his views and accepting the recommendations set forth in paragraphs 3 and 4 above. Accordingly, the District hereby forftally requests that the Las Vegas Land a m Water Company immediately proceed to develop new sources of supply sufficient to increase the present maximum production by from 4,000,000 to 5*000,000 gallons dally, in accordance with Mr, Montgomery’s recommendations. It is understood and agreed, of course, that all costs and expenses incurred in connection with developing the above-indicated increased water supply are to be added to the agreed 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 1, 1953*