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V continue our recent policy of extending d i s t r ibution ma i n s w h e r e v e r reasonable Inducement offers, municipal ownership is not l i k e l y to become a pressing issue. Neither the city nor ourselves w o u l d benefit I from municipal ownership under existing conditions. | (4) With regard to water from Lake Mead by extension of the line now being constructed to serve the magnesium plant, I think the subject should be gone into by;Mr. Eracken with those active in the city's affairs, to determine whether the city wants the lake water, if it should be piped to Las Vegas, combined with the product from our springs and wells, or desire to limit the use of the lake wa t e r to l a r g e r i n d ustries in which latter event our mains need not be con n e c t e d w i t h the La k e Mead line. (5) Estimates as to the amount of water sup p l i e d to the LVLandttCo. and also as to the amount sold by that company to its c u s t o m e r s should not be resorted to as has been done during the 12 ye a r p e r i o d reviewed. T recommend reolacement of meters Nos. 2601, 2594 a n d 7064 at Las Vegas with meters that will accurately measure the water. The responsi b i l i t y for keeping meters in perfect operation should be firmly i m pressed uoon the division suoerlntendent of the LA&SLRR. No more m e t e r failures should be permitted. (6) No system la in effect for auditing the revenues accruing to the LVLendl/vCo. from water sold. This condition should be c o r r e c t e d promptly. The first step under a simple a c c ounting plan would be to inventory the service outlets and assign an audit number to each. The maintenance of these numbers would provide a running r e c o r d of the sources of all water revenue and would be the base from wh i c h physical end office checks could be made at any time selected **»*.ing the block 2.