“ns Joint AEC-AFSWP Maintenance Activities Contracts for electricity and natural gas to supply Sandia Base are under the jurisdiction of AFSWP. The AEC, by means of a contractual agreement with AFSWP, pays for its share of the electrical power and natural gas on a metered basis or as. s- mutually agreed between the parties to the contract. Steam for heating and processing on the Base is furnished from the AEC-owned steam plant in accordance with the contract agreement described above, AFSWP is charged for steam furnished it on a metered basis at the actual cost of operation to AEC per thousand pounds of steam produced. The water supply system was constructed jointly by AEC and AFSWP. AFSWP operates the system and AEC is charged 50 per cent of the direct labor and supervision cost of running the water pumpingplant. Fire protection is provided under the contract agreement by AFSWP, with AEC paying 40 per cent of the direct labor cost of the Fire Department. Police protection is furnished by AFSWP without charge to AEC. Los Alamos Community The change of Los Alamos from a makeshift community of 7,150 in July 1947, toa modernized, self-governing, and largely self-supporting community of 12, 700 population— the eighth largest city in New Mexico—was an outstanding achievement of the last six years, Building and developing Los Alamos community was a major management task during 1947-1950, The basic job was completed by mid-1950. Further progress has been made during the past three years in each phase of operations requisite to a modern city—adequate construction, provision of utilities, community operations, business management, schools, medicine, churches, contractor maintenance, etc. There have been definite accomplishments in each, contributing to the over-all achievement which is represented by today's community. The Construction Program The community of Los Alamos as envisaged at the time the community building program was initiated in fiscal year 1948 has been completed. Housing units, schools, commercial facilities, hospital and related structures have been built and are operating as per- manent parts of the community. The housing emphasis has turned to replacing the approximately 585 substandard hous- ing units located onthe original Townsite in the Eastern Area, This was projected in the original 1948 plan but had to be postponed because of the Korean emergency. It is being accomplished in phases over a period of years. As now projected, some 215 replacement houses will be built and with existing housing will support a laboratory total of 3, 100 employees and provide for an ultimate community population of 13,000. The first phase of the replacement program, consisting of 120 units, is scheduled for construction in fiscal year 1954, poesALo ss Pee 4