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Laa Vegas - October 14-, 19^9 m k r » R- X,os &m*3S£~es Mr* Wm* Reinhardt: ¥ 23-7 cc Mr. E. E. Bennett ) Supplementing my letter September 15t& regard­ing request of the Motel Owners Association that the hotel rate for water service be applied to motels and auto courts. I was under the impression that the matter was settled after our conversation with the Public Service Commission here October 11th; however Chairman Allard phoned from Carson City this morning advising that considerable pressure was Veing placed on the commission to have the hotel rate applied to motels. He requested that we file with the commission a rate for motels and auto courts differentiating from the bungalow court rate shown in our present schedule, together with our definition regarding lawns and landscaping. He also requested that I contact the attorney for the Motel Owners, Cleveland Schultz, with a view to compromising the matter to the satisfaction of the water company and the motel owners in order to avoid the necessity for a public hearing on the subject. While it is true a rate for auto courts and motels is not specl-cieally provided for in our existing rate schedule, we have always considered them in the same category as a bungalow court. However I would like to get rid of the troublesome matter of adjusting vacancy allowances each month and if we could establish a flat rate per innit that would have to be paid regardless whether occupied or vacant it might pay us to compromise. My suggestion would be to offer them a flat rate of $1.00 per unit without any additional charge for toilet and bath and discontinue vacancy allowances. Any additional facilities such as restaurants, stores, service stations^ houses or trailers would of course be in addition to the motel rate, in accordance with our present practice. I would rather do this than be forced to grant them the present hotel rate of about fO.^5 pen unit, because of the importance of keeping our rate structure reasonably consistent. The charge of $1*00 per trailer has been approved by the commission and if the |0.45 rate were applied to motels it would result in tourists being penalized merely because they have wheels under their abode.