Citywide Healthy Snack and Beverage Vending Policy

CITY OF GLENDALE CALIFORNIA INTERDEPARTMENTAL COMMUNICATION Community Services and Parks Department DATE: March 21, 2016 TO: FROM: BY: SUBJECT: Parks, Recreation & Community Services Commission Roubik Golanian, Director of Public Works Shea Eccleston-Banwer, Public Works Manager Citywide Healthy Snack and Beverage Vending Policy RECOMMENDATION Motion to review and approve the Citywide Healthy Snack and Beverage Vending Policy and recommend the policy to the City Council for final approval. BACKGROUND On February 22, 2016 the Parks, Recreation & Community Services Commission received a report on the proposed Citywide Healthy Snack and Beverage Policy for the City of Glendale. This proposed policy is attached as Exhibit 1. After receiving information on the proposed policy, the Commission requested that City staff return with more data related to the potential revenue impacts of adopting this policy. Commission Revenue Impact To date, the City has received approximately $100,000 in commission revenue on the existing vending machine contract that is nearly eight years old. Of that amount, nearly $22,000 has been deposited into Community Services and Parks revenue funds. A list of the Community Services and Parks facilities with vending machines is attached as Exhibit 2. Staff continues to expect a loss in commission revenue as a result of the proposed policy and restrictions on vending products sold on City property, since soda and snack products that don't meet the proposed nutritional guidelines make up a significant proportion of the products sold. Since a healthy vending program for the City vending machines is already in place in Glendale, the proposed policy will likely result more in the removal of product choices rather than the addition of more healthy vending choices. The data on the impact of healthy vending restrictions on revenue is mixed. The Glendale Unified School District, who has faced several rounds of restrictions on products sold, reports that sales went down following every new regulation. The City's current vendor expects a revenue drop of 30-40%. A poll of vending machine operators similarly reported a 30-40% revenue drop as a result of the Healthy, Hunger-Free Kids Act of 2010. Conversely, healthy vending proponents contend that converting to healthy vending has no impact on profits or can even increase profits in some instances. The City of Baldwin Park reported a 30% drop in revenue in the first six months then a gradual return to previous levels after a couple years when they converted to healthy products. Pasadena reports that the impact on revenues was negligible. San Fernando reported comparable sales after adopting healthy

vending. A graph comparing revenue before and after a healthy vending policy was implemented in the City of San Fernando is attached as Exhibit 3. It has widely been reported that revenues for the City of Chicago tripled when they went healthy; however, this increase is likely due; in part, to the poor performance of the vendor that was in place before the City converted to healthy vending. Change to Beverage Policy There are currently two coffee vending machines on City property. Staff recommends that these machines be exempted from the beverage ban on caloric and non-caloric sweeteners as coffee is primarily a drink for adults. Exhibits: Exhibit 1: Exhibit 2: Exhibit 3: Draft Resolution for Healthy Snack and Beverage Vending Policy for the City of Glendale Community Services and Parks Facilities with Vending Machines City of San Fernando Revenue Before and After Healthy Vending Policy 2

Draft Resolution for Healthy Snack and Beverage Vending Policy, City of Glendale RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA ADOPTING A HEAL THY SNACK AND BEVERAGE POLICY FOR VENDING MACHINES ON CITY PROPERTY WHEREAS, the League of California Cities unanimously adopted a resolution reaffirming its recognition of the important role cities play in combating the obesity epidemic and called upon cities in California to join the Let's Move Cities and Towns Campaign; and WHEREAS, a goal of the Let's Move Cities and Towns Campaign is to make healthy food available to children and families in municipal facilities; and WHEREAS, the League initiated the Healthy Eating Active Living Cities Campaign to support cities to adopt policies to increase access to healthy food, and WHEREAS, more than half of California's adults are overweight or obese and therefore at risk for many chronic conditions including diabetes, heart disease, cancer, arthritis, stroke, and hypertension; and WHEREAS, according to 2013 Los Angeles County Public Health Office of Epidemiology statistics, the prevalence of childhood obesity in Los Angeles County is 22.4%; and WHEREAS, according to 2013 Los Angeles County Public Health Office of Epidemiology statistics, the prevalence of obesity in adults in Los Angeles County is 23.6%; and WHEREAS, more children are being diagnosed with diseases linked to overweight and obesity previously seen only in adults, such as Type 2 diabetes and heart disease; and WHEREAS, obesity and overweight take a tremendous toll on the health and productivity of all Californians, costing the state 21.7 billion annually; and WHEREAS, the City of Glendale bears a portion of these costs in health care premiums, sick days and lost productivity; and WHEREAS, teens and adults who consume one or more sodas or sugar sweetened beverages per day are more likely to be overweight or obese; and and WHEREAS, food and beverages of minimal nutritional value are marketed extensively; WHEREAS, The City of Glendale is committed to spending public funds to promote the public's health and welfare, including the health and welfare of children and families; and WHEREAS, the City Council has jurisdiction over municipal facilities and programs serving employees and residents where they consume food and beverages; and WHEREAS, it is in the City's interest to use its facilities and programs to promote and support health; NOW, THEREFORE, BE IT RESOLVED BY THE GLENDALE CITY COUNCIL: 3

Section 1. All of the food, beverages and snacks to be provided and/or sold in City vending machines at City facilities (parks, libraries, community centers, office buildings, etc.) shall provide healthier options in the following manner: Require 100% of snacks sold in vending machines on City property to meet specified nutrition standards. Require 100% of beverages sold in vending machines on City property to meet specified nutrition standards. Require 50% of beverages sold in vending machines on City property to be water with no added caloric or non-caloric sweeteners. The nutrition standards are set forth in Exhibit 1 which is attached hereto and incorporated herein by this reference. These standards have been established to mirror many of the standards used by the Glendale Unified School District (SB 12 and SB 965) as well as those standards developed in other cities and counties with snack and beverage vending policies. These standards are also consistent with the nutrition messages provided in the Dietary Guidelines for Americans. The Dietary Guidelines Advisory (DGAC), which was jointly established by the U.S. Department of Agriculture (USDA) and the U.S. Department of Health and Human Services (HHS), created the Dietary Guidelines for Americans with the purpose of providing science-based advice to promote health and reduce the risk of chronic disease through diet and physical activity. Section 2. Future procurement and/or contractual negotiations for the provision of snacks and beverages to be provided and/or sold through vending machines within City facilities, shall include a provision stipulating that all food and beverages to be purchased or provided through contracts shall meet the City's nutrition standards outlined above. Adopted on this day of, 2016. ATTEST: Mayor, City of Glendale City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF GLENDALE ) ) ) SS I, Ardashes Kassakhian, City Clerk of the City of Glendale, do hereby certify that the foregoing resolution No. was duly adopted by the Council of the City of Glendale, California, at a regular meeting held on the day of, 2016 and that the same was adopted by the following vote: Ayes: Noes: Absent: Abstain: City Clerk 4

Exhibit 1 Healthy Snack and Beverage Vending Standards 1) Snacks a) Snack foods shall have no more than: i) 35% of its calories from total fat ii) 10% of its calories from saturated fat iii) 35% sugar by weight iv) 250 calories per individual item v) 360 mg of sodium per package/serving vi) Exempt snack foods: Nuts, nut butters (such as peanut butter), seeds, legumes (beans), eggs, cheese, and fruits/vegetables that have not been deep fried and do not contain any added sugars and/or fat do not have to meet the above nutrition standards except for the 250 calorie limit. b) Snack foods shall contain no trans fat c) Snack foods shall emphasize fruit, vegetables, whole grains, and low fat (1 %) or nonfat dairy products d) Vending machines where more than one snack food is sold shall: i) Include at least one item that meets the FDA definition of "low sodium" (140 mg or less per serving or portion) ii) Include at least one item that contains at least two grams of dietary fiber 2) Beverages a) Beverages shall not be sweetened with added caloric or non-caloric sweeteners. i) Acceptable beverages: (1) Water with no added caloric or non-caloric sweeteners (2) 100% fruit/vegetable juice or fruit/vegetable juice combined with water or carbonated water (limited to a maximum of 12 oz and with no more than 200 mg of sodium per container) ii) Low fat (1%) and nonfat milk with no added flavors iii) Non-dairy milks fortified with calcium and vitamin D (such as soy, rice and/or other similar milks) with less than 200 calories per container and with no added flavors b) Hot coffee vending machines are allowed to dispense hot coffee with caloric and/or noncaloric sweeteners

Exhibit 2 Community Services and Parks Facilities with Vending Machines 1. Dunsmore Park 2. Glorietta Park 3. Verdugo Park/Skate Park (3) 4. Fremont Park 5. Pacific Park and Pool (2) 6. Maple Park (2) 7. Montrose Park 8. Brand Park (2) 9. Sparr Heights Senior Center 1 O. Glendale Civic Auditorium (3) 11. Adult Recreation Center (2) 12. Sports Complex (3) 13. Verdugo Jobs Center (2)

Exhibit 3 City of San Fernando Revenue Before and After Healthy Vending Policy Snack Vending Machine Gross Sales $3,500 $3,000 $2,500 $ $2,000 $1,500 $1,000 $1,Q17 $1,035 ~2011 --2012 $500 $- 1 2 3 4 5 6 7 8 9 10 11 12 Months