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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
FINANCE DEPARTMENT
DATE: JUNE 9, 2026
FROM: FINANCE DEPARTMENT
SUBJECT: APPROVE A MASTER AGREEMENT WITH CHAMELEON
BEVERAGE COMPANY, INC. FOR ALUMINUM BOTTLED
DRINKING WATER
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve Contract Master Agreement (MA) No. 106-499070 with Chameleon Beverage Company, Inc. for the purchase of aluminum bottled drinking water for Anaheim Public Utilities (APU), in the amount of $162,362.88, for a one-year term, with up to four optional one-year renewals (cumulative amount of $811,814.40, plus annual renewal increases in accordance with the applicable Consumer Price Index (CPI) and applicable sales tax); and
2. Authorize the Purchasing Agent, or designee, on behalf of the City of Anaheim (City), to execute the MA and all related or necessary contractual documents related to the MA and to exercise the renewal options as appropriate.
DISCUSSION:
In November 2025, the City issued a competitive Request for Proposals (RFP) for the procurement of aluminum bottled drinking water, which was publicly advertised through the City’s procurement portal. A total of 8,033 vendors were notified of the solicitation through the City’s procurement portal. The City received one (1) responsive proposal from Chameleon Beverage Company, Inc. (Commerce, CA). The proposal was evaluated using a points-based system in accordance with the criteria set forth in the RFP, including price and overall value; packaging, shipping, and delivery plan; regulatory compliance and quality control; water source and product quality; bottle and material specifications; labeling and branding process; and experience and references.
Based on the evaluation of the proposal, staff recommends award of the proposed MA to Chameleon Beverage Company, Inc., as the proposer determined to be the most responsive and responsible, offering competitive pricing, reliable delivery, and demonstrated compliance with the City’s specifications. Chameleon Beverage Company, Approve a Master Agreement with Chameleon Beverage Company, Inc. for Aluminum Bottled Drinking Water June 9, 2026
Inc. is currently providing plastic bottled drinking water to the City, with satisfactory performance, supporting their ability to meet the City’s current requirements.
The drinking water is to be drawn from a Southern California water source, filtered through reverse osmosis, bottled in 16.9 fluid ounce aluminum bottles, lithographed with the Anaheim Public Utilities logo, and packaged 24 bottles per case. In addition, the awarded vendor must be licensed by the State of California Department of Public Health, Food and Drug Branch as a bottling plant for drinking water purified by reverse osmosis. The facility must also be monitored by a California Certified Public Health Microbiologist.
The bottled water program supports student engagement and public outreach at community events. The transition from plastic to aluminum bottles reflects the City’s continuous commitment to a green and sustainable community; however, there is a higher cost for aluminum ($0.87 per bottle) versus plastic ($0.29 per bottle) which may reduce the number of cases supplied per event. As for student engagement, artwork currently featured on plastic water bottles will transition to biodegradable paper bookmarks with embedded wildflower seeds to continue APU’s emphasis on water conservation education.
The proposed MA will be for a one-year term with up to four optional one-year renewal periods.
Unit pricing will remain fixed during the initial one-year base period. Pricing for renewal periods will be negotiated annually but may not exceed the change in the Consumer Price Index (CPI) for the Los Angeles, Long Beach, and Anaheim, California areas for the preceding 12-month period.
IMPACT ON BUDGET:
Sufficient funds are available in Anaheim Public Utilities’ Fiscal Year 2025/26 budget.
Subsequent renewals of the agreement will be subject to Council’s approval of budget appropriations.
Respectfully submitted, Concurred by,
Ed Segura Dukku Lee
Purchasing Agent Public Utilities General Manager
Attachment:
1. Contract MA No. 106-499070