man000208 3

Th® major difference in these two appraisals under production facilities vas in the pipelines which increased by $li*2,l*55, reproduction cost, and an increase of $52,753 in depreciated cost. The Increase in reproduction cost is attributed to the fact that most of the pipelines were installed in solid rock, or "caliche", with much greater trenching cost than if ordinary earth trenching had been encountered. The install­ation costs as shown in the Co. appraisal are low for this type of trenching. Other appreciable differences under production facilities resulted from low unit costs for reinforced concrete and excavation in the various structures. Und®* distribution facilities the major difference in the appraisals for reproduction cost and depreciated cost was in service connections and pavement work. The reproduction cost of services as shown in the J.M.M.& Co. appraisal is $73,99^, with a present value of $56,333. The reproduction cost of service connections as appraised by the Las Vegas Land and Water Co. was $152,6^5 and the present value was $91,587. In the limited time v available it was impossible to make a field check of approximately 8000 services and therefore the Union Pacific figures were used in this appraisal. However, since the majority of the distribution m i n s are located in alleys, the average length of service line installed by the water company is probably quite short and these figures seem high. The great difference in pavement work resulted from a discrepancy between the quantities shown in the J.M.M. & Co. appraisal and the quantities reported by the Union Pacific. J.M.M.& Co. showed approximately 36,000 sq. ft. of pavement work whereas the Union Pacific showed over 250,000 sq. ft. I field investigation indicated that the latter figure was very nearly correct but that very little of the total had been laid by the Water Co. -3-