Letter from Frank Strong (Los Angeles) to C. H. Bloom, March 9, 1929

Los Angeles, March 9, 1929. 768. Mr. C. H. Bloom: Referring to your letter of March 7th, file 9215- 34, to General Attorney McNamee, concerning water service to industrial Lessees at Las Vegas where such service is to be performed by the Railroad Company: Mr. Rauch, in his negotiations for the three leases, for which we are now preparing agreements, is asked by Lessees what charges will be made for and in connection with water service. He has been obliged to advise that this matter is under consideration and that the information will be furnished later. This, of course, is unsatisfactory to Lesses and embarrassing for Mr. Rauch. I believe that the situation should be promptly analized and a definite policy adopted with respect to charges so that, even if we cannot at this time present the Lessee with a form of agreement, we can advise just what the installation cost and service rates will be. In cases of Units Nos. 2 and 3, where service is to be performed by the Railroad, the supply line will located across the spur track from leased premises. The service connection for the Pioneer Lumber Company, for instance, would be 16 1/2 feet in length from the supply line to the lease line while the connection for the Empire Lumber Company would be from 17 to 30 feet in length, depending upon its location. The meters would, I presume, be installed immediately adjacent to the supply line inasmuch as in that location there would be least interference with ground operations. Our lease is made subject to thirty day cancellation but inasmuch as the Lessee will, in practically all cases, have sufficient confidence in us to invest a considerable amount of money in its plant building, paving, etc., we may consider that it will likewise assume investment in water pipe lines necessary to serve the leased premises regardless of the thirty day cancellation clause in the lease itself, When it comes, however, to asking the Lessee to pay cost of that portion of the connection which extends outside of the leased premises together with the cost of a meter, under a double threat, that is the lease itself contains a thirty day cancellation clause and the water agreement contains an independent thirty day cancellation clause, it seems to me we would be asking too much. - 2 - The City of Log Angelas has established installation charges as follows: For a 3/4" connection from supply line to property line, including meter, which a latter is usually installed in the parking space, $15.00. For 1" connection, as above, $24.00. For 11/2" connection, as above, $52.00. For 2" connection, as above, $79.00. For over 2" connection, individual estimates are made and the deposit determined as estimated cost plus 10%. For above amounts. City extends these lines from where the main happens to be to the property line. This may be 30 feet or 60 feet. The deposit is not refundable but the service is not subject to termination. In the case of the successors of the Belvedere Water Corporation, serving our Nos. 3, 4 and 5 Industrial Tracts, Los Angeles, and which concern operates under the Railroad Commission of California, the ruling with respect to connections is as follows: "EXTENSION OF WATER SERVICE, COST AND OWNERSHIP ON PRIVATE PROPERTY. Upon application by a bona fide applicant for service, the Company, will, at its own expense, furnish and install service pipe of suitable capacity from its mains to the curb line or property line of property abutting upon a public street, highway, alley, lane or road along which it already has or will install street mains. The consumer will install that portion of the service inside of curb or property line, the expense of same to be paid by the consumer. The materials furnished by consumer in construction of such service extension will at all times be and remain the sole property of the consumer and when necessary shall be maintained and repaired by the consumer at his own expense. The Company will not be required to install more than one service to any one consumer." Unless such an arrangement will conflict with practice established by Las Vegas Land and Water Company in other - 3 - services, I recommend that the agreement provide that Railroad Company will, at its own cost, make connection with its supply line, install meter and extend the connection to the lease line. Lessee to assume all cost of that portion beyond the lease line. If this is not consistent with established practice, then I recommend that we adopt the rates of deposit established by the City of Los Angeles,quoted above, but, in view of the termination clause, we provide in the agreement, if, under the termination clause of the contract, Railroad shall discontinue service within a period of one year from and after date of installation, then upon such termination Railroad shall refund to Lessee the entire amount of the deposit. Frank Strong. CC-Mr. W. E. Rauch. FS:HS