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Page 5 of 20 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />distribution pipelines is also critical for the prolonged reliability of the water system. This year, the <br />Cambridge and Emerald Hills Watermain Replacement Project will replace approximately 1.5 miles of <br />aging pipe. This type of preventative work reduces the likelihood, and cost, of emergency repairs to an <br />aging system. The primary challenge for the ongoing pipe replacement program is the lack of funding to <br />design and construct facilities. <br />c. Water System Budget – Potable Water Budget <br />The water system’s largest single expense is treated-water acquisition from SFPUC. This year (FY 2024- <br />25), approximately two-thirds of the operating budget is allocated to wholesale purchase. <br />Figure 1: Potable Water System Budget Allocation <br />Funding for capital improvement projects has averaged approximately $4M annually for the past ten <br />years, which is about 11 percent of the total water system budget. <br />9.A. - Page 5 of 20 <br />490