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C O P T Ltia Vegas, Sevada April 28, 1952* Mr. Wm. Reinhardt: (GO— Mr. B. 1. Bennett Mr. B o n g Smith ) Confirming our telephone conversation today, please he advised that at 10:00 A.M. this morning, April 28, 195*** three M d s for the purchase of water Bonds were submitted to the las Vegas Valley Water District, which are enumerated as follows: 1. Mr. Miles Pelikan, on behalf of John tfuveen and Company and associates-, offered to purchase '*‘8,700,000.00 worth of bonds for $8,700,906.5**. This bid was accompanied with Cashier's Check in the amount of $200,000,00, conditioned upon application of said sum towards the purchase price, if accepted, and return, if not accepted, with a forfeiture of said sum in event of acceptance but failure of performance by bidder. The bonds were specified to be general obligation bonds of the district, secured by a pledge of revenues of the district, with the condition that the district increase its water rates and install meters. Bonds maturing in the following years were to bear interest as follows: 1957 - 1961 1962 - 1976 1977 - 1979 3.80* 1980 - 1989 ** 1990 3.90* A cheek by the Water District established that the over-all average rate of interest was 3.97215*. The bid of this bidder was for the purchase of all bonds and was conditioned upon the Las Vegas Valley Water District taking title to the Las Vegas Land and Water Company simultaneously with delivery of bonds which are to be delivered under the notice of bid and bid within 30 days after award of the bid. John Nuveen et al. further specified that Section 19 of the bond resolution relating to the establishment of a reserve fund should be amended to provide that said fund shall be maintained from revenue, and in the event that revenue is insufficient to maintain said reserve fund for a period of six months the District would be compelled to levy a tax to replenish the reserve fund.