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BCC- Mr, X. X, Bennett (Law Dept Pile 80-11) Mr. L. B. Maag - Las Vegas Lee Angeles* California November 13, 1953 Mr. Thomas A. Campbell Las Vegas Talley Water District 900 South 5th Street Las Vegas, Nevada Additleas Mid Betterments to the Las Vegas hnd.mtffr .fopcm Jatei---------- Bear Mr. Campbell! X have your letter at November 7th on the above subject* and I think there are a few matters which should be cleared up in connection with the proposal contained la your letter. At X read your lettsr* you aew desire that three bide be taken fer all contracts covering additions and botterments, the cost of whioh the Voter District Is obligated to pay under the outstanding contract between the Voter District, the lailroeds, and the Voter Company. Teu will recall that the contract provides that we shall secure the approval of the Water District for all expenditures exceeding $2,000,00 for each individual Job* It weald seem unnecessary to eecuro three bide fer such well Jobs when wo are not required, under the contract, to secure the approval of the District for such expenditures. Shore le another situation la connection with the practice! operation of the Water Company in work of this nature. At you know, tone of the larger subdividers here preferred te lay their own pipe lines, either through a subsidiary contracting company or through some outside contractor. In these instances it has been the practice heretofore fer them to submit their plane and their eeatraetor*s estimate te Mr. Maag, who then reviews their estimates end makes up his own estimate based on the specifications shewn In the contract so submitted to him. If the contractor's figure le lower then Mr. Maag'e estimate, we accept the eoa- tmotor's figure (subject te the approval of the District) and enter Into a contract under Bale 9 for the customary refund based on that contract price. If, oa the other hand, the contractor's figures are higher than the estimates made by Mr, Haag, we enter into a Bale 9 contract providing for refunds based on Mr. Haag's estimate. Xn view of the close afflllatlen, in many Instances, between the subdividere and the contractor, which affiliation is probably a