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. \ ~ I~,.' . .~, ("t ...... w_ .;:. ,_ J . . The UVWUA and the Montrose Partners are proposing an operation schedule of eleven months per year, allowing one month for annual inspection and maintenance of the gates at the East Portal of the Tunnel and the tunnel itself. Additionally, because the AB Project will utilize only a short distance of the 50uth Canal, it will be possible to perform maintenance on the remaining portions of the canal during times when the project is in full operation when no irrigation water is required. Economic issues 1. The proposed AB Lateral Hydropower Project wi II have a much larger construction cost than the South Canal projects, and wi 11 have a much larger assessed valuation. This will mean an improved tax base for the City and County of Montrose, and will result in an overall increase in tax revenues to these governmental entities. Hence, the economic benefit will be spread over a much larger base. 2. The UVWUA will receive a substantial portion of the revenues resulting from the operation of the AB Lateral project. These revenues will mean that the UVWUA will be able to offset the rising maintenance costs of the irrigation system and will not require any substantial increase in water rates to its members. Thi swill, in turn, resu lt in improved profitability to the members of the UVWUA and an overall increase in the regional economy. In addition, the ability to receive revenues from the project will mean that the UVWUA will be able to invest these monies in improvements and overall maintenance of the canal system. This wi 11 result in the improved water use of the resources of the region, as well as fewer impacts to the salinity of the Colorado River. Further, the additional IS-13