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The President noted that it had been the consensus of opinion among the Directors at the November 7 meeting that the request could not be granted. He expressed the opinion that the action taken denying the request should be in the form of a resolution giving all of the pertinent factors. He had had a rough draft of a resolution prepared for the Board’s consideration. The draft was then read and discussed. It was agreed that the draft as prepared would be satisfactory and that copies should be sent to the Directors not present for their consideration prior to the meeting with the Improvement Associa­tion. The handling of publicity in connection with the action was discussed. It was agreed that no purpose would be served by publishing the letter from the Improvement Association, although Miss Woods could furnish the newspapers what­ever information they desired. CHARLESTON HEIGHTS WATER COMPANY The President advised that Mr. Becker, one of the developers of Charleston Heights subdivision, had come into see him relative to water supply from the District. Mr. Becker had indicated that the State Engineer had ordered that they discontinue pumping from the wells and obtain a supply from the District. However, they could not afford to pay the current District rates which Mr. Becker had obtained from the District office several months ago. The President had advised Mr. Becker that if he had a water problem, it should be pre­sented to the Board of Directors in writing. President Campbell had explained to Mr. Becker that it was necessary for the District to obtain sufficient revenue to take care of its bonds and that the District was not in a position to make special rates to particular customers. In response to a question from Mr. Becker, he had advised that the rates being-charged did not bring in a profit. Mr. Becker had indicated that Director Coulthard was his attorney. The President noted that Director Coulthard would probably have to dis­qualify himself from any discussion or action in the matter. The President then asked Manager Renshaw to give any information he had on the subject. The Manager advised that the Las Vegas Land and Water Company had been ordered by the Public Service Commission to supply the subdivision under Rule 9* which was the regular refunding rule. However, the developers did not want to pay for the line to the subdivision as required under the rule and had done nothing prior to the time the District took over. A short time ago, Mr. Becker had dis­cussed water rates, indicating that the developers wished to remain in the water business and to obtain water at wholesale rates. The Manager explained that, in effect, the subdivision would be getting wholesale rates, since the average price of water decreased with an increase in the quantity taken per month, due to the lower price in each succeeding rate step. He expressed the opinion that the original idea of the developers was to sell the distribution system to the District and leave to the District the problem of getting water to it. The President noted that the District would not have the money to buy the system and would probably not do so in any case. At this time Mrs. Barozzi was instructed to contact Mr. Coulthard*s office to find out if he was coming to the meeting. She reported that he would not be able to be present.