Report of Findings
CITY OF
PALO ALTO 2025 Residential Water Customer
UTILITIES
Satisfaction Study
11 December 2025 Confidential & Proprietary
CITY OF
Table of Contents PALO ALTO
UTILITIES
Section One
Project Overview
Section Two
Key Study Findings
Section Three
Considerations
Section Four
About GreatBlue
Section Five
Aggregate Data
(Provided Separately)
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 2 Project Overview
Research Objectives Areas of Investigation
• GreatBlue Research was commissioned by the City of Palo Alto The 2025 City of Palo Alto Utilities Residential Water Customer Utilities (hereinafter "CPAU") to conduct additional research Satisfaction Study leveraged a quantitative online survey among its residential water customers as part of a larger methodology to address the following areas of investigation:
statewide research initiative involving municipal utilities in California. • Customer Satisfaction & Service: overall satisfaction, expectations, contact experiences, and comparisons to other • The primary goal of this research study was to identify key service providers. drivers of customer satisfaction, expectations, and perceptions • Water Quality & Reliability: perceptions of water taste, as they relate to the experiences of CPAU customers. safety, clarity, reliability, and confidence in utility responsiveness.
• Affordability & Value: trust in the utility to keep rates • The outcome of this research will enable CPAU to
affordable and assessments of cost relative to service
a) more clearly understand customer satisfaction drivers and received
areas of concern, b) act on near-term opportunities for • Infrastructure, Future Investments, & Preparedness:
improvement, and c) create a strategic roadmap to enhance impressions of current infrastructure, support for upgrades, customer engagement, satisfaction, and long-term trust in their priorities for future investment, perceptions of drought and water providers.
emergency readiness
• God programs, and communication preterenation behaviors Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 3 Research Methodology Snapshot
Methodology No. of Questions Quality Assurance Sample
No. of Completes
Digital 74* Dual-level** Provided by the City of
CPAU 2025: 338 Palo Alto Utilities
CPAU 2023: 400
Muni: 1,200 Research Dates
Target Northern: 480 Margin of Error Confidence Level
Southern: 720 October 14 -
Residential Customers +/- 5.21% 95%
November 25, 2025
* Data quality personnel, in addition to a computer-aided interviewing platform, ensure that the integrity of the data is accurate *** Final Muni sample was weighted according to age, gender, and education. Demographic weighting targets were originally derived from and based on the U.S Census Bureau, 2023 American Community Survey 1-year Estimates Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /4 Respondent Profile | Demographics
Age Education Gender
25 to 34 0.3% Technical school graduate • 0.9%
Male 56.8%
35 to 44] 21% Some college 3.6%
45 to 54 | 7.1%
College graduate 25.4% Female 35.2%
55 to 64 18.9%
65 or older Post-graduate or professional degree 64.8%
62.1%
Prefer not to say | 8.0%
Prefer not to say 9.5% Prefer not to say 5.3%
0% 50% 100% 0% 100% 50% 100%
Ethnicity Rent or Own Type of House
Caucasian 64.2%
Single family home 96.2%
16.6% Rent 3.8%
Asian
Townhome 1.8%
Hispanic / Latino 1.5% Apartment in mutamiy or more units
0.3%
Pacific Islander Own 92.0%
African American 0.3% Condominium in mult or yeling 0.6%
17.8% Condominium in multifamily building 0.6%
Prefer not to say Prefer not to say 4.1% vith less than 3 units Other 0.9% Prefer not to say 0.6%
0% 100% 0% 50% 100% 0% 50% 100%
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /5 Respondent Profile | Demographics
Number of People in Household 1 Person Household Income 3 Person Household Income Under $70,350 26.0% Under $90,450 | 1.7%
1 / just myself 14.8%
S70,350 to less than $111,700 4.0% $90,450 to less than $143,600 | 11.7% 2 52.1% $111,700 to less than $164,000 10.0% $143,600 to less than $210,850 11.7% $164,000 or more 30.0% $210,850 or more 41.7%
3 17.8%
Prefer not to say 30.0% Prefer not to say 33.3%
4 8.0% 0% 50% 100% 0% 50% 100%
n=50 n=60
5 3.0% 2 Person Household Income 4 Person Household Income Under $80,400 4.5% 11.1%
Under $100,450
6 1.2%
$80,400 to less than $127,650 11.9%
$159,550 to less than $234,250 3.7%
7 $127,650 to less than $187,400 12.5%
0.9%
$234,250 or more 59.3%
$187,400 or more 32.4%
Prefer not to say 2.4% 38.6% Prefer not to say 25.9%
Prefer not to say
0% 50% 100% 0% 50% 100% 0% 50% 100%
n=176 n=27
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /6 Respondent Profile | Demographics
5 Person Household Income 6 Person Household Income 7 Person Household Income $116,550 to less than
$185,100 25.0%
Under $108,500 10.0%
S124,600 0 5087.350 33.3%
$185,100 to less than 25.0%
$271,750
$253,000 or more 50.0%
$271,750 or more 25.0%
8197,850 10 8280450 66.7%
Prefer not to say 40.0%
Prefer not to say 25.0%
0% 50% 100% 0% 50% 100% 0% 50% 100%
n=10 n=3
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 7
CITY OF
PALO ALTO
UTILITIES
Key Study Findings
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /8 Key Study Findings
General Satisfaction Metrics and Future Strategy Customer Service & Communication • In 2025, the overall average positive rating for organizational • Of the customers who contacted CAU in the last year, three-quarters (75.9%) reported being characteristics among CPAU customers was 80.0%, a slight satisfied with their customer service experience. The highest-rated area continued to be "being increase over 2023 (+1.1 percentage points), with customers courteous and treating customers with respect" (84.4%), despite a slight decline from 2023 (-3.8 providing the highest ratings for the utility "maintaining an percentage points). adequate supply of water," "promoting the efficient use and • Three-fifths of CPAU customers (60.2%) rated the utility's customer service as either "among the conservation of water," and "monitoring water quality." best" or "above average" compared to other service providers, which was on par with 2023 but • The most important characteristics were "monitoring water lower than muni customers in 2025 (-5.9 percentage points). quality" (69.5%), "maintaining an adequate supply of water" • Over one-half of customers (52.8%) reported that CPAU takes care of things the first time when (52.1%), and "providing good service and value for the cost of they contact the utility, down -13.9 percentage points from 2023 water" (51.2%). • Regarding important water information and messages, over eight-out-of-ten CPAU customers • The top expectations among customers include "clean water" (Bi2 materred "e-mail" communications, followed by over one-third (37.6%) who preferred (82.8%) and "affordable prices" (52.1%). Over eight-out-of- ten (82.6%) reported CPAU meets these expectations "all" or Water Quality & Conservation
• The 2025 NP+S (Net Positive Score) for CPAU remained • Customers provided the strongest positive ratings for the "clarity" (89.9%) of CPAU's water supply, and nearly nine-out-of-ten (88.8%) rated the quality of their water positively. strong at 86.1%, with over half of customers identifying as • Over one-half of customers (51.5%) expressed concern about contaminants in their water satisfied customers (56.8%) and one-quarter as loyal
supply, on par with 2023. However, three-quarters of customers (75.7%) trusted CPAU to take customers (25.7%).
• Over two-thirds of CAU customers (68.0%) rated the cost for immediate action to resolve any water quality issues, consistent with 2023. the value of their water service as "good" or "very good," • Roughly one-third of CPAU customers (34.3%) felt the utility is prepared for droughts, and one- which was on par with 2023. Further, a similar frequency of customers (65.4%) expressed trust in the utility to keep rates affordable.
• Over three-fifths of customers (63.3%) were familiar with the "WaterSmart Home Water Report • Future priorities of customers include protecting local water quality (66.0%) and keeping rates affordable (64.8%).
Potential trade-offs cited by customers to help keep rates low included "fewer investments in online tools for customers" or townhome to install water-efficient fixtures, over two-fifths of customers (41.7%) would prefer (44.3%) and "slower expansion of water conservation
"upfront rebates." followed by over one-third (37.5%) who would prefer "information and programs" (32.9%).
guidance."
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /9 CITYOS
PALO ALTO
UTILITIES
Key Metrics and Future Investments
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /10 Satisfaction | Organizational Characteristics ALO ALT
TILITIE
CPAU - 2023 CPAU - 2025 Muni - 2025
In 2025, CPAU continued to receive consistently high
positive ratings across all organizational Maintaining an adequate supply of water 93.8% 94.0% 73.5% characteristics, with no decreases recorded
compared to 2023 and slight increases recorded for Promoting the efficient use and conservation of water 84.0% 87.9% 65.5% CPAU "promoting the efficient use and conservation
of water" (+3.9 percentage points), "being open and Monitoring water quality 88.9% 87.7% 66.7% honest about company operations and policies"
(+3.3 percentage points), and "providing good Environmentally responsible 85.5% 85.3% 62.1% service and value for the cost of water" (+2.4
percentage points). This led to an overall average Informing the public about water issues 79.3%
79.9% 63.8%
positive rating of 80.0%, which was a slight increase
over 2023 (+1.1 percentage points). Of note, CPAU
76.5% 77.7% 60.1%
achieved higher positive ratings across all
organizational characteristics compared to total muni
ratings in 2025. Communicating effectively with customers 74.4% 75.9% 63.4% Customers provided the highest positive ratings for Community involvement 72.2% 72.6% 57.4% CPAU, "maintaining an adequate supply of water,"
"promoting the efficient use and conservation of Being open and honest about company operations and 66.7% 70.0% 57.8% policies
water," and "monitoring water quality," with
approximately nine-out-of-ten customers rating these Providing good service and value for the cost of water 67.6% 70.0% 62.4% characteristics positively.
Average 78.9% 80.0% 63.3%
Aggregate of ratings 7-10 with "dont know" responses removed n= 338 (CPAU - 2025), 400 (CPAU - 2023), 1,200 (2025 - Muni) (organizational characteristics] (grid) CAU provides water service to your home. Please rate the CAU on the following characteristics using a scale of one to ten where one (1) means very poor and ten (10) means very good (+/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 11 Satisfaction | Most Important Characteristics ALO ALI
ILITI
The top three most important organizational Percentage Who Find Importance in Each Characteristic characteristics for CPAU customers in 2025 remained
"monitoring water quality," "maintaining an adequate 74.0% supply of water," and "providing good service and Monitoring water quality 69.5% value for the cost of water," despite significantly fewer 65.5% Maintaining an adequate supply of water
customers finding "maintaining an adequate supply of 1 52.1% (-) water" important compared to 2023 (-13.4 percentage Providing good service and value for the 54.8% points). cost of wate | 51.2%
Promoting the conservation of water | 26.3%
Of note, "monitoring water quality" and "maintaining an • 24.9% adequate water supply" were also among the most 19.3%
Informing the public about water issues • 21.0%
highly rated organizational characteristics for CPAU
customers, indicating alignment between CAU's | 20.8%
Environmentally responsible I 18.3%
service and customer priorities
Valuing its customers and being committed 11.8%
to providing excellent customer service | 14.5%
Being open and honest about company 1 15.5%
operations and policies | 12.1%
1 9.5%
Communicating effectively with customers 10.4%
Community involvement 0.3%
| 0.6%
0% 25% 50% 75% 100%
I CPAU - 2023 (n=400) • CPAU - 2025 (n=338)
(r) nates are signs me it a consen ever me cred A 0, Just rated, what are the most important to you as a customer of the PAU? (Select al that ap) Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /12 Satisfaction | Top Expectations FALO ALTO
The top expectation among CAU respondents in 2025 was "clean water" by a sizable margin, followed by "affordable prices," which aligned with 2023.
When asked how often their utility meets these expectations, over eight-out-of-ten customers reported CPAU meets them "all" or "most of the time," which was consistent with 2023 and significantly higher compared to all muni respondents in 2025(+6.0 percentage points).
Top 6 Expectations Among Muni Respondents Frequency Expectations Are Met
86.5% 85.0%
Total "All or "Most of the | 82.6%
Clean water / safe water 82.8%
62.6% (-) time" | 76.6% (-)
54.0% 31.5%
Affordable prices / fair pricing / cost
52.1% All of the time • 37.9%
savings | 33.2%
44.5% (-)
46.3% • 53.5% (+)
Reliable / consistent service | 40.8% Most of the time 1 44.7%
34.7% (-) | 43.4%
35.0% 11.3%
Problems solved quickly / fast service /
33.4% Some of the time 10.1%
prompt service | 16.0% (+)
125.7%()
Good customer service / answer 20.3% 1 1.0%
questions / knowledgeable / properly | 24.9% Never 2.7% trained staff | 23.1% • 4.0%
23.8% 1 2.8%
Proper billing / easy to understand bill /
22.5% Don't know / unsure - 4.7%
prompt processing 23.1% • 3.4%
25% 50% 75% 100% 25% 50% 75% 100%
CPAU - 2023 (n=400) • CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) • CPAU - 2023 (n=400) • CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) [top expectations] (multi select) Everyone has expectations of the service organizations they do business with over time. What are the top three expectations you have regarding the service you receive from CPAU? [meeting_expectations] (single select) Does CAU meet your expectations. (+/_) indiestes statistical sianificance at a 95% confidence level compgred to CPAU 2025 dats Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 13 Satisfaction | Net Positive Score ALO ALI
ILITIE
In 2025, CPAU received an NP+S (Net Positive Score) of 86.1%, which was consistent with 2023 and all muni customers in 2025. Over half of customers identified as a "satisfied customer" of their utility, followed by about one-quarter who described themselves as a "loyal customer." Notably, significantly more customers identified as "satisfied customers" of CPAU compared to muni customers overall (+9.9 percentage points), while significantly fewer identified as a "loyal customer" (-7.5 percentage points) or an "advocate" (-3.0 percentage points).
Net Positive Score (NP+S)
100%
87.3% 86.1% 86.8%
75%
59.3%
56.8%
50% 46.9% (-)
33.2% (+)
23.8% 25.7%
25%
6.6% (+) 8.5% 8.3% 8.7% 4.3% 5.6% 4.6%
4.3% 3.6%
0%
NP+S (advocate + An advocate of A loyal customer A satisfied A less than satisfied Don't know / unsure loyal + satisfied) CPAU customer customer
• CPAU - 2023 (n=400) CAU - 2025 (n=338) • Muni - 2025 (n=1,200) ps]: Which of the following best describes your relationship with PAUS +/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 14 Satisfaction | Trust & Perception of Rates BALD ALTO
Nearly two-thirds of customers expressed "a great deal" or "some trust" in CPAU to keep rates affordable, which was significantly lower compared to muni customers in 2025 (-3.5 percentage points). Similarly, over two-thirds of CPAU customers rated the overall cost of water relative to the value received as either "good" or "very good," which was on par with 2023 but lower compared to muni customers in 2025 (-7.3 percentage points).
Trust in Utility to Keep Rates Affordable Perceived Cost for the Value of Service
63.5% 68.3%
Total "Trust" 65.4% Total "Good" 68.0%
| 68.9% 175.3% (+)
19.3% 13.5%
A great deal of trust 24.0% Very good 13.6%
1 26.9% • 20.7% (+)
44.3% 54.8%
Some trust 41.4% Good | 54.4%
42.0% 1 54.7%
23.5% 10.0%
Limited trust 20.1% Poor 10.7%
20.2% || 13.6%
7.3% | 6.0%
No trust 6.8% Very poor • 4.4%
6.7% • 6.0%
5.8% 15.8%
Don't know / unsure 7.7% Don't know / unsure 16.9%
1 4.2% (-) 5.1%(-)
50% 75% 100% 25% 50% 75% 100%
CAU-2023 (n=400) CPAU - 2025 (n=338) Muni - 2025 (n=1,200) • CPAU - 2023 (n=400) • CPAU - 2025 (n=338) Muni-2025 n=1,200) [trust_affordability]: How would you describe the level of trust you have that CAU does all it can to keep its rates affordable? cost_value]: How would you rate the overall cost of water as compared to the value you receive from your utilly? Would you say... (+/-) indicates statistical sianificence at a 95% confidence level compgred to CPAU 2025 dats Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 15 Satisfaction | Future Investments ALO ALT
Over six-out-of-ten customers prioritized "protecting local water quality and sources" and "keeping water rates affordable" as the top future investments fol PAU. When those who valued affordability were asked about potential trade-offs to keep rates low, over two-fifths of these customers reported being willing to have "fewer investments in online tools for customers," while nearly one-third of customers were open to "slower expansion of water conservation programs and incentives."
Top 7 Most Preferred Future Utility Investments Affordability Tradeoffs Top 5 Shown
Protecting local water quality and sources 66.0%
Fewer investments in online tools for
customers 44.3%
Keeping water rates affordable 64.8%
55.6% Slower expansion of water conservatior 32.9%
programs and incentives
Increasing use of recycled or non-traditiona 35.8%
water sources Fewer improvements to customer 27.4%
service
Expanding water conservation programs and
incentives 26.0%
I am not willing to give up anything to 21.5%
Improving water system reliability and reduce water rates
22.8%
reducing service interruptions
Supporting low-income or disadvantaged Reduced use of advanced or recycled 17.4%
19.5% water sources
communities with water access
25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2025 (n=338) • CPAU - 2025 (n=219)
No tracking data No tracking data; Only asked to those who answered "keeping utility rates affordable" in (most_important_investments) most important investments: Which of the following investments listed below do you want CPAU to prioritize? (Select all that apply) affordability tradeoffs): In order to keep water rates more affordable, which of the following cost saving measures would you be willing for PAU to consider in the near future? (Select all that apply) Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /16
CHRY OH
PALO ALTO
UTILITIES
Customer Service
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 17 Customer Service | Contact Reasons & Methods
UTILITIES
Of the 32.0% of CPAU customers who contacted the utility in the past 12 months, three-fifths reported doing so by speaking with a representative over the phone, and nearly one-third of customers contacted the utility regarding a high bill. Overall, three-quarters of CPAU customers in 2025 reported being satisfied with their experience, which was a decrease from 2023 (-4.8 percentage points) and significantly lower compared to all 2025 muni respondents (-9.0 percentage points).
Satisfaction with Customer Service Experience Top Reasons for Contact I 80.7% CPAU - 2023 CPAU - 2025
Total "Satisfied" 75.9% High bill or consumption call 20.2% 30.6% • 84.9% (+)
Other 22.9% 16.7%
55.0%
Very satisfied 50.0% Billing question (Not high bill or 20.2% 13.9%
55.0% consumption)
25.7% Service initiation or termination 4.6% 7.4%
Somewhat satisfied | 25.9% Trash / waste service related 0.0% 7.4%
30.0%
Top 5 shown
9.2%
Not very satisfied 10.2%
7.6% Top Contact Methods
8.3% CPAU - 2023
CPAU - 2025
Not at all satisfied 11.1%
• 5.5% (-) the phoich representative over 60.2%
58.7%
1.8%
Don't know / unsure 1 2.8% E-mail 20.2% 23.1%
• 2.1% Other 12.8% 7.4%
0% 25% 50% 75% 100% Visited office / service center 0.9% 3.7% • CPAU - 2023 (n=109) Automated response / IVR 0.9% 2.8% • CPAU - 2025 (n=108) Muni- 2025 (n=335)
Top 5 shown
(customer service_contact_reason]: What was the purpose of the contact? (customer servicé contact method): Which of the following methods did you use to contact CPAU? encomar caruce enesciani How carelea vier univuh vour aynenens conaclinadan t) andreigreenale indicatestatistialsignianea%confidenevelcompardoA225data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /18 Customer Service | Satisfaction Ratings FALO ALTO
customer service characteristics compared to muni customers in 2025.
Positive Ratings (7-10) for Customer Service Characteristics 100%
88.2%
84.4% 84.5% 82.7%
80.2%
77.3%
74.2% 74.2% 73.0%
75% 70.7% 69.7% 70.8%
50%
25%
0%
Being courteous to you and treating Understanding your problem or Explain bit our lead to
you with respect need
CPAU - 2023 (n=85) • CPAU - 2025 (n=90) •Muni - 2025 (n=220) Only asked to those who had an interaction with utity personnel or sentreceived an emal or text message from their utility [customer_service_characteristics]: Please rate the representative you worked with on how well he or she performed in a number of important characteristics. Please use a scale of one to ten where one (1) means very poor and ten (10) means very good.
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 19 Customer Service | Contact Resolution ) PALO ALTO
Over one-half of customers reported that issues were "taken care of the first time" when contacting CPAU, which marks a decrease from 2023 (-13.9 percentage points). Among the 22.2% who required repeated contact, the most common reasons were a "lack of resolution in previous contacts," followed Contacts Needed to Resolve Issue
66.7%
Reasons Prompting Multiple Contacts
Taken care of the first time 52.8%
CAU -2025
56.2%
Base size 24
12.6%
Lack of resolution in previous 41.7%
Must have repeated contact 22.2% contacts)
| 20.4% Iling issue (eg, incorre
larges, payment problem 33.3%
14.9%
Other 20.8%
It varies 20.4%
20.7% 4.2%
Only asked to those who needed multiple contacts to resolve their issue;
5.7% No tracking data
Don't know / unsure 4.6%
• 2.6%
0% 25% 50% 75% 100%
• CPAU - 2023 (n=87) | CPAU - 2025 (n=108) • Muni - 2025 (n=335) (Issue_resolution]: Generally, when you contact CPAU, are things taken care of to your satisfaction the first time, or do you need to have repeated contact with them? (muit contact resolution): For what reason did you require multiple points of contact with CPAU? (+/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /20 Customer Service | Quality of Customer Service A PALD ALTO customer service is "among the best" (-10.0 percentage points).
Quality of Customer Service Compared to Other Service Providers 100%
75%
66.1%
59.6% 60.2%
50%
38.5%
35.0% 35.2%
31.0%
25.0% 23.5% (+)
25% 21.1% 19.3%
11.0% 15.7%
11.1%
6.4% 9.3% 4.8%
3.7% 3.7% 3.6% 2.1% (-)
0% "Among the best or Among the best Above average Average Below average Among the worst Don't know / unsure "Above average"
• CPAU - 2023 (n=109) • CPAU - 2025 (n=108) • Muni - 2025 (n=335) stomer_service_comparison]: Please assess how PAUs' customer service for water service compares with other service providers such as banks, the telephone or cable company, or other utiitie s) indicates statistical significance at a 95% confidence level compared to CPAU 2025 da Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /21
CITY OF
PALO ALTC
UTILITIES
Communication and Digital Tools
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 22 Communication | Preferred Methods • PALO ALTO
garding important water information and messages, over eight-out-of-ten CPAU customers preferred "e-mail" communications, followed by over one-th 1o preferred "direct mail." Further, among the three (3) respondents who favored social media, two (2) preferred "Facebook" as the channel through whi they would like to receive information from CPAU, and one (1) preferred Instagram.
Preferences Regarding Communication Channels Preferences Regarding Social Media Platforms
85.3%
E-mail
82.0%
50.8% (+)
Direct mail
37.6% Facebook 66.7%
26.3% (+)
Website
16.9%
21.8%
Text message 20.7%
4.0% (+)
Social media (Facebook, Twitter, etc)
0.9%
2.3% Instagram 33.3%
Local television / cable TV
1.5%
2.0%
Local radio
0.9%
25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2023 (n=400) • CAU - 2025 (n=338) • CPAU - 2025 (n=3) Top 7 responses shown No tracking date; Only asked to those who answered "social media" in (preferred_communication_method] [preferred_communication_channel]: What is the best way for CPAU to communicate with you about important water information and messages? (Select all that apply) (social_media): Which social media channel would you prefer to receive Information from CAU through? (+/-) indicates statistical significance at a 95% confidence level compared to PAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /23
CITY OF
PALO ALTO
UTILITIES
Water Quality
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 24 Water Quality | Satisfaction Ratings FALO ALTO
In 2025, satisfaction with water quality characteristics remained largely consistent with 2023, with "clarity" receiving the highest positive ratings, followed closely by "smell" and "taste." Of note, nearly nine-out-of-ten customers rated the overall quality of CPAU's water positively, which was significantly more than all muni customers in 2025 (+17.0 percentage points). Further, ratings for "clarity," "smell," and "taste" were all also significantly higher than mun customers in 2025.
Positive Ratings (7-10) for Water Quality Characteristics 100%
91.0% 91.3% 89.9% 91.5% 89.6% 91.0%
88.8% 88.5%
71.8% (-) 74.2% (-) 72.4% (-)
75%
64.5% 65.0% 64.1% (-)
61.8%
50%
25%
0% T
Overall quality of Purity (free from Clarity Smell Taste water bacteria and
viruses)
• CPAU - 2023 (n=400) • CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) water_quality characteristics] (grid) Now please rate these specific qualities of the water delivered to you by PAU. Please use a scale of one to ten where one (1) means very poor and ten (10) means very good. +-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /25 Water Quality | Confidence in Water Supply PALM ALTO
Over one-half of 2025 CAU customers reported being concerned about potential contaminants in their water supply, on par with 2023. However, if a problem were to arise, three-quarters of customers reported having trust that CPAU would take immediate action and keep customers informed, which remained on par with 2023 findings and was significantly higher than muni customers in 2025 (+9.5 percentage points).
Concern with Potential Contaminants in Water Supply Confidence in Water Supply Quality Management
53.3% 76.0%
Total "Concerned" (Ratings 7-10) 51.5% Total "Trust" (Ratings 7-10) 75.7%
55.2% 66.2% (-)
10.8% 10.8%
Neutral (Ratings 5 or 6) 11.8% Neutral (Ratings 5 or 6) 10.4%
16.9% (+) 17.1% (+)
32.0% 4.5%
Total "Not concerned" (Ratings 1-4) 34.9% Total "Distrust" (Ratings 1-4) 4.7%
25.7% (-) 13.7% (+)
25% 50% 75% 100% 25% 50% 75% 100%
CPAU - 2023 (n=400) | CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) CPAU - 2023 (n=400) •I CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) [concer_contaminants]: How concerned are you about potential contaminants in the water supply? Please use a scale of one to ten where one (1) means you are not at all concerned and ten (10) means you are very concerned. confidence_water_supply_remediation): How confident are you that if CPAU finds a problem with the water supplied to your community that they will take immediate action to resolve the problem and keep customers informed (including timely updates through email, social media, or website)? Please use a scale of one to ten where one (1) means you do not trust them at all and ten (10) means you trust them completely. (+/-) indicates statistical significance at a 95% confidence level compared to PAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /26 Water Quality | Utility Water Infrastructure ALO ALT
Just over one-quarter of customers in 2025 described CAU's water infrastructure as being in "pretty good shape," which was on par with 2023 but significantly lower than muni customers in 2025 (-6.3 percentage points). It should be noted that two-fifths of customers were unsure of the wate Impression of Current Water Infrastructure Support for Water Infrastructure Investments
25.8%
Is in pretty good shape | 28.4% 64.0%
134.7% (+
"Support" (Ratings 7-10) 63.0%
27.3%
Needs some upgrading, maintenance
25.1% 48.4% (-)
and repair 23.5%
8.0% (+)
17.8%
Requires major upgrading and repair 3.6% i
I 10.6% (+)
"Neutral" (Ratings 5-6) 15.1%
0.3%
Requires complete rebuild 0.3% 25.6% (+)
| 5.8% (+) /
3.3%
12.0% (-)
It varies 1.8%
| 9.1% (+)
"Oppose" (Ratings 1-4) 17.5%
35.5%
Don't know / unsure 40.8% 20.8%
16.3% (-)
0% 25% 50% 75% 100% 25% 50% 75% 100%
• CPAU - 2023 (n=400) • CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) • CPAU - 2023 (n=400) • CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) [perception_infrastructure: What is your impression of PAU's water infrastructure at present? Consider the term "water infrastructure" referring to pipes, pumps, treatment plants, dams, reservoirs and the like. Would you say the water infrastructure. [infrastructure_investment_support); if you knew that PAU's water infrastructure requires major investments to upgrade and maintain and these efforts will be funded by charging higher rates, how strongly would you support or oppose making these majo investments? Pease use a scare or one to ten where one ( is strongly oppose and ten (Turis stongry support (+/-) indicates statistical significance at a 95% confidence level compared to CAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 27 Water Quality | CA Water Infrastructure •ALO ALT
TILITIE
Over two-fifths of CPAU customers in 2025 said the State of California "could be doing more" to maintain water infrastructure such as pipes, pumps, dams, and reservoirs, significantly lower than in 2023 (-12.1 percentage points), and now in line among all muni customers in 2025. Conversely, significantly fewer CAU customers believe the State is doing the right amount of maintenance compared to muni customers in 2025 (-21.6 percentage points), while more CPAU customers were unsure of the State's efforts (+21.9 percentage points).
Perceived Water Infrastructure in the State of California as a Whole 100%
75%
58.0% (+)
50% 45.9% 42.7%
35.5% (+) 38.5%
30.8% (-)
25% 16.6% (-)
10.5% 13.9%
0.8% 1.8% 5.3% (+)
0%
Could be doing Is doing the right Is doing too much Don't know / more amount of unsure
maintenance
CPAU - 2023 (n=400) • CPAU - 2025 (n=338) Muni - 2025 (n=1,200) Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 28
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Water Conservation & Usage
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 29 Water Conservation | Water Usage Reduction
UTILITIES
Among CPAU customers who have a lawn, nearly three-fifths expressed interest in replacing all or part of their lawn with drought-tolerant plants to conserve water, including nearly one-quarter who were "very interested." In an effort to reduce water usage, nearly one-half of CPAU customers indicated they "try hard to use less water but could probably do a little more," while over one-third feel they are already doing everything they possibly can to use water.
Interest in Replacing Lawn with Drought-tolerant Plants Actions Taken to Reduce Water Usage
57.8% (-)
Total "Interested" 38.8%
72.1% I am already doing everything
possibly can to use less water 36.1%
24.9% (-)
Very interested
34.7% 49.0%
I try hard to use less water but could
32.9%
Somewhat interested probably do a little more 49.4%
37.4%
26.0% (+) I try not to waste water but I do not
Not very interested 11.5%
10.3% focus very much on the amount of
water l use 12.7%
10.4%
Not at all interested
11.8%
0.8%
5.8% Don't know / Unsure
Don't know / unsure 1.8%
5.8%
25% 50% 75% 100% 0% 25% 50% 75% 100%
• CPAU - 2025 (n=173) • Muni - 2025 (n=945) CPAU - 2023 (n=400) • CAU - 2025 (n=338) No tracking data; not including respondents who reported not having a lawn (drought tolerant_plants] (scale) How interested would you be in replacing all or part of your lawn with drought-tolerant plants to conserve water? water_conservation_efforts] (single select) Which of the following statements best describes your current efforts to reduce your water use? (+/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 30 Emergency Preparedness | Natural Disasters PALT ALTO
Roughly one-third of CPAU customers in 2025 felt their utility is well prepared to meet the challenges of another drought, a decrease from 2023 (-3.0 percentage points) and significantly lower than all muni customers in 2025 (-15.1 percentage points). Further, over one-quarter of customers felt that CPAU is prepared to handle an emergency or natural disaster, such as an earthquake or wildfire, consistent with 2023 but significantly lower than muni customers in 2025 (-20.2 percentage points). Of note, significantly more CPAU customers were unsure of the utility's preparedness for both drought and natural disasters compared to 2023 and muni customers in 2025.
Utility Preparedness for Drought Utility Preparedness for Natural Disasters
37.3% 27.3%
"Prepared" (Ratings 7-10) 34.3% "Prepared" (Ratings 7-10) 27.5%
49.4% (+) 47.7% (+)
14.3% 14.0% (+)
"Neutral" (Ratings 5-6) 10.1% "Neutral" (Ratings 5-6) 8.0% 121.0% (+) | 22.7% (+)
8.0% 7.0%
"Not prepared" (Ratings 1-4) 25.0% "Not prepared" (Ratings 1-4) 4.1%
18.0% (+) 16.0% (+)
40.5% (-) 51.8% (-)
Don't know / unsure 50.6% Don't know / unsure 60.4%
11.6% (-) 13.6% (-)
0% 25% 50% 75% 100% 0% 25% 50% 75% 100%
CPAU - 2023 (n=400) CPAU - 2025 (n=338) Muni - 2025 (n=1,200) CPAU - 2023 (n=400) || CPAU - 2025 (n=338) • Muni - 2025 (n=1,200) (drought_preparedness: One of Califomia's water challenges is drought. If California faces another drought in the future, how well prepared is CPAU to meet those challenges? Please use a scale of one to ten where one (1) is poorly prepared and ten (10) Is very well prepared.
(emergency preparedness: Parts of California periodically face emergencies and natural disasters such as earthquakes and wildfires. How prepared is PAU to face situations like these? Please use a scale of one to ten where one (1) is poorly prepared and ten (70) is very weir prepared
(+/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 31 Water Conservation | Utility Offerings FALO ALTO
In 2025, the most useful water conservation offering
identified by CPAU customers was "leak detection tools and Usefulness of Utility Offerings notifications," followed by "materials on specific ways to reduce your household's water use at no cost to you."
CPAU - 2023 CAU - 2025 Muni - 2025
Compared to 2023, the perceived usefulness of "materials on ways to reduce household water use" (-8.0 percentage points) declined significantly. However, significantly more CPAU customers identified "leak detection tools and Leak detection tools and notifications 76.9% 67.7% notifications" as useful compared to muni respondents
overall (+9.2 percentage points).
Materials on specific ways to reduce
your household's water use at no 64.5% 56.5% 63.9%
cost to you
More rebate options for water 52.4%
efficiency programs
Higher rebate amounts for water 52.1% 62.8%
efficiency programs
Aggregate of ratings 7-10 shown
(usefulness utility offerings): Please rate the usefulness of each of the following items if CPAU offered them. Please use a scale of one to ten where one (1) Is not useful and ten (10) Is very useful.
Color of value (red/green) indicates statistical sianificance at a 95% confidence level compared to CPAU 2025 data Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide /32 Water Conservation | Utility Offerings ALO ALT
TILITIE
Over three-fifths of customers were familiar with the Familiarity with Programs Offered "WaterSmart Home Water Report Program," followed by
half of customers who were familiar with the
_Total Very Somewhat Not very Not at all Don't knov
"Landscape Rebate Program," and the "Landscape "Familiar" familiar familiar familiar familiar / Unsure Workshops."
Of note, over two-thirds of customers (68.9%) were not WaterSmart Home Water Report
63.3% 25.7% 37.6% 12.7% 16.6% 7.4%
familiar with the "Project Pledge - One time utility bill Program assistance."
Landscape Rebate Program 50.9% 15.1% 35.8% 17.2% 23.7% 8.3% Landscape Workshops 50.9% 12.1% 38.8% 17.8% 23.4% 8.0%
Water Wise Outdoor Survey 43.2% 8.6% 34.6% 20.1% 24.9% 11.8% Project Pledge - One time utility bill 9.2% 2.1% 7.1% 18.9% 50.0% 21.9% assistance
water_conservation_efforts] (grid) How would you describe your familiarity with each of the following programs currently offered by the City of Palo Alto or with our partners, Valley Water, BAWSCA? Please Indicate whether you are "very familiar," "somewha amiller," "not very familiar," or "not at all familiar" with the following Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 33 Water Conservation | Water Usage Report A PALM ALTO
Over two-thirds of CPAU customers who currently receive water usage data or reports said the information helps identify whether their household is using water carefully, which is slightly lower than 2023 (-4.2 percentage points) and significantly lower compared to muni customers in 2025 (-6.4 percentage points). However, among those who do not currently receive this information, over two-fifths indicated it would be helpful.
Helpfulness of Current Water Use Reports Perceived Helpfulness of Potential Water Use Reports
73.0% 45.9%
"Helpful" (Ratings 7-10) 68.8% "Helpful" (Ratings 7-10)
75.2% (+) 50.0%
13.6%
24.3%
"Neutral" (Ratings 5-6) 16.6% "Neutral" (Ratings 5-6)
15.8% 19.2%
12.0% 13.5%
"Not Helpful" (Ratings 1-4) 13.3% "Not Helpful" (Ratings 1-4)
7.5% (-) 17.8%
25% 50% 75% 100% 0% 25% 50% 75% 100%
CPAU - 2023 (n=359) • CPAU - 2025 (n=301) Muni - 2025 (n=842) • CPAU - 2025 (n=37) • Muni - 2025 (n=358) Only asked to those who cumently receive a water usage report Only asked to those who do not currently receive a water usage report +/-) indicates statistical significance at a 95% confidence level compared to CPAU 2025 dat Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 34 Water Conservation | Willingness to Pay FALO ALTO
willing to pay "$400 to less than $500" for the service.
Willingness to Pay for High-Efficiency Toilet Installation Willingness to Pay for Large Leak Repair Program $500 or more 12.5% $500 or more 37.5%
$400 to less than $500 33.3% $400 to less than $500 32.3% $300 to less than $400 15.6% $300 to less than $400 6.3% $250 to less than $300 6.3% $250 to less than $300 3.1% $200 to less than $250 13. 1% $200 to less than $250 3.1% $100 to less than $200 29.2% $100 to less than $200 17.7% 0% 25% 50% 75% 100% 25% 50% 75% 100%
• CPAU - 2025 (n=96) • CPAU - 2025 (n=96)
Only asked to low-income customers in a single family or townhome Only asked to low-income customers in a single family or townhome leak_fix_cost]: If the City offered a program to help fix large leaks (actual cost of over $4,000), how much would you be willing to pay for this service? Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 35 Water Conservation | Water-Efficient Fixtures PALO ALTE
TILITIES
When asked what assistance would be most helpful for low-income Preferred Assistance for Water-Efficient Fixture Installation customers in a single-family or townhome to install water-efficient fixtures, over two-fifths of customers would prefer "upfront rebates," followed by over one-third who would prefer general "information and Upfront rebates 41.7% guidance."
Information and guidance 37.5%
Foloved over one terest rans pad frug mydiy contractor," Help finding a contractor 28.1%
No interest loans paid through my utility bill 17.7%
Low monthly payments with no upfront cost 14.6%
I'm not interested in water-efficient fixtures right now 11.5% Don't know / unsure 17.7%
0% 25% 50% 75% 100%
• CPAU - 2025 (n=96)
Only asked to low-income customers in a single family or townhome (assistance_type): What type of assistance would most help you install water-efficient fixtures? (Select all that apply) Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 36
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Considerations
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 37 Considerations
Strengthen Water-Efficiency Support for Low- Address Declines in Customer Service Satisfaction Income Customers and Strengthen First-Contact Resolution 2025 findings reveal clear variation in what low-income customers are Customer service performance remains an important strength for CPAU willing to pay for high-efficiency fixtures and essential leak repairs. While relative to muni benchmarks, yet 2025 results show a clear downward shift one-third would contribute $400-$500 for a high-efficiency toilet, a sizable from 2023. Satisfaction with recent interactions fell nearly five percentage portion can only manage $100-$200. Customers also expressed a strong points, and first-contact resolution dropped notably, with roughly one-half of preference for upfront rebates and straightforward guidance when customers having their issue resolved on the first contact. Repeat contacts adopting water-efficient upgrades. These patterns signal an opportunity for were most often driven by a lack of resolution in previous contacts and CPAU to tailor programs based on actual affordability thresholds and to ongoing billing challenges, areas that can reduce customer confidence if support long-term conservation goals among income-sensitive not actively addressed. These trends suggest an opportunity for CPAU to households. refine internal processes, improve clarity in billing communications, and build stronger follow-through practices to prevent issues from escalating.
Actionable Insights Actionable Insights
• Align rebate tiers and cost-share structures with demonstrated • Review billing inquiry workflows to reduce repeat contacts, with a willingness-to-pay segments, ensuring that lower-cost options focus on identifying where information gaps or ambiguous next remain accessible to customers with limited budgets. steps create customer confusion. • Offer upfront, point-of-purchase incentives for high-efficiency toilets, •Implement an internal first-contact resolution dashboard to track given that 41.7% of low-income customers prefer this form of outcomes by issue type, service channel, and representative, assistance over loans or back-end reimbursement. enabling targeted coaching. • Develop a simplified "water-efficiency navigation guide" that • Consider a post-contact pulse survey to capture immediate bundles installation guidance, recommended products, and feedback on clarity, courtesy, and resolution, helping pinpoint friction contractor contacts to meet the 37.5% who want clearer guidance. points in real time. • Conduct a short affordability and program-design survey specific to •Expand training around expectation-setting and proactive low-income households to validate optimal incentive amounts and communication, particularly for high-bill and billing-adjustment calls. identify barriers to participation not captured in the willingness-to- • Develop knowledge-base improvements or quick-reference tools for pay questions. representatives to streamline responses to common issues.
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 38 CHITOR
PALO ALTO
UTILITIES
About GreatBlue
Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 39 Harnessing the Power of Data
...to help clients achieve organizational goals.
ill Data supporting strategic decisions to Methodologies: Studies:
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Copyright 2025 Great Blue Research, Inc. All Rights Reserved. Not for Distribution and Reproduction. Slide / 40 Michael Vigeant CEO
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