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2025-04-01(sr)(OA)Healthy Options Point of Sale.pdf

Richmond City Council
April 1, 2025

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2025-04-01(sr)(OA)Healthy Options Point of Sale.pdf
Meeting
April 1, 2025
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Richmond City Council
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6
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Text extracted from the city's file for reading and search. Open the original on pub-richmond.escribemeetings.com. That file is the official record.
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April 1, 2025

Economic Development

DATE: April 1, 2025
TO: Mayor Martinez and Members of the City Council
FROM:

James Atencio, Senior Assistant City Attorney
Samantha Carr, Environmental Manager
Yahna Williamson, Management Analyst

Subject:

Receive Direction from City Council on Healthy Options at Point of Sale (HOPS).

FINANCIAL IMPACT: The financial impact of implementing a HOPS will depend on the selected enforcement mechanism and may
include administrative and enforcement costs.

PREVIOUS COUNCIL
ACTION:

January 25, 2022
March 4, 2025

STATEMENT OF THE
ISSUE:

City Council directed City staff to return and present
options and address concerns following the Healthy
Options at Point-of-Sale (HOPS) presentation by youth
advocates. City Councilmembers raised concerns
regarding costs, enforcement, and implementation
logistics. This report outlines options and next steps for City Council consideration.

RECOMMENDED ACTION:

DISCUSS and PROVIDE DIRECTION to City staff on the
draft Healthy Options at Point-of-Sale (HOPS) ordinance in collaboration with HOPS youth advocates - City
Attorney’s Office/Economic Development Department
(James Atencio 510-620-6509/Samantha Carr 510-620-
5407/Yahna Williamson 510-620-6574).

AGENDA
REPORT

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DISCUSSION:

Background

On January 25, 2022, the City Council received a report from Heathy Options at Points- of-Sale (HOPS) youth advocates detailing the prevalence of unhealthy food and beverage marketing in Richmond retail stores (Attachment 1). The report highlighted how checkout aisles are stocked with snacks high in salt, saturated fat, and added sugars, disproportionately affecting low-income and communities of color. Following this presentation, the City Council directed staff to draft an ordinance requiring large retail stores to provide healthier checkout options within 60 days. However, due to competing priorities, this directive was not implemented at the time.

On March 4, 2025, a new cohort of HOPS youth advocates presented updated research reaffirming the need for a Healthy Checkout Ordinance in Richmond (Attachment 2).

They provided data on similar policies successfully implemented in Berkeley (2020) and Contra Costa County (2024). The City Council, recognizing the importance of this initiative, directed staff to return within 30 days with policy options addressing concerns around enforcement costs, implementation logistics, and defining key components of the policy.

LOCAL CITY AND COUNTY ORDINANCES:

The City of Berkeley in Alameda County and the City of Perris in Riverside County have adopted Healthy Options at Point-of-Sale Ordinances. On November 5, 2024, the Contra Costa County Board of Supervisors directed staff to draft an ordinance and bring back for the Board’s approval. Table 1 below provides an overview of each local government’s ordinance.

City Ordinance
Name
Key Provisions Enforcement
Mechanism
Berkeley,
Alameda
Couty
Healthy
Checkout
Ordinance
 Requires grocery stores to offer
healthier food and beverage
options at checkout lines
 limits placement of sugary
snacks and sodas.
 Stores larger than 2,500 Sq.

Ft.

City inspections and
fines for non-
compliance
Perris,
Riverside
County
Healthy
Options at
Point-of-Sale
Ordinance
 Mandates retailers to display
healthy food options
prominently.

Retail audits and
financial penalties for
violations

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 Prohibits certain high calorie,
low nutrient products at
checkout.
 Stores Larger than 2,500 Sq.

Ft.

Contra
Costa
County
(Drafting
currently in
progress)
Healthy
Options at
Point-of-Sale
Ordinance
 Initial motion focuses on
2,000SF expected to focus on
improving healthy food
availability at retail points of
sale; inspired by Berkeley and
Perris models.

To be determined by
Contra Costa County
Board of Supervisors

RICHMOND ORDINANCE OPTIONS:

The draft Richmond ordinance is modeled after Contra Costa County’s proposed ordinance, which is modeled after Berkeley’s ordinance (Attachment 3). In drafting the ordinance, City staff identified four policy questions requiring Council direction. City staff are requesting City Council discussion and direction after reviewing the proposed recommendations on the following:

1. Enforcement Entity

2. Definition of “Large Businesses”

3. Definition of “Healthy Foods”

4. Outreach and Education options

City staff will provide additional information on costs based on Council’s direction.

1. Enforcement Entity

Enforcement is a key component of the proposed ordinance, particularly since the City of Richmond does not have its own public health department with environmental inspectors or nutritionists, as the City of Perris, City of Berkeley, and Contra Costa County. City’s current enforcement options include:

1. Coordinating with County’s Environmental Health Division to request enforcement of the ordinance on the City’s behalf

2. Utilizing the City of Richmond’s Code Enforcement Division

3. Hiring vendor or contractors to temporarily complete enforcement

Staff Recommendation:

City staff recommend reaching out to Contra Costa County Environmental Health to discuss the potential for them to enforce the City’s ordinance along with the County’s proposed ordinance.

Rationale:
 Partnering with the County on this component would be beneficial, as it aligns with work the County is already planning to undertake.

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 Partnership would also create opportunities for the City and County to collaborate more efficiently on other elements of the ordinance moving forward

However, if the County chooses not to enforce the City’s ordinance, the City could explore alternative options. One such option is applying for a Department of Justice (DOJ) grant expected to be released this spring, which may offer enforcement funding for the Healthy Retail policy and similar initiatives. City staff intends to conduct further research into this grant opportunity as more information becomes available.

2. Definition of “Large Businesses”

City staff is seeking City Council direction on defining “Large Businesses” for the purpose of the HOPS ordinance. The definition in draft ordinances defines large businesses as retail stores exceeding 2,000 square feet, based on the County’s definition. However, the City of Berkeley and the City of Perris define large businesses as retail stores exceeding utilize 2,500 sq. ft. for the definition.

Staff Recommendation:

City staff recommends aligning the definition of large business with the proposed Contra Costa County definition, which states that A Healthy Retail Policy is required in all unincorporated food retail stores over 2,000 sq. ft., in which there are nutrition standards for food and beverage items stocked in checkout areas within 3 feet of the point of sale.

Rationale:
 Ensures consistency with the proposed Contra Costa County Healthy Checkout policy
 Targets businesses with sufficient capacity to stock alternative healthy food options
 Provides a clear, enforceable threshold that minimizes ambiguity in implementation

3. Definition of “Healthy Food”

The definition of “Healthy Foods” is critical for ensuring compliance with the ordinance and achieving its intended health benefits. Staff propose the following criteria:

Staff Recommended:

Adopt a definition that aligns with Contra Costa County’s proposed Checkout Ordinance, which is modeled after the City of Berkeley’s ordinance, ensuring consistency with established best practices.

Proposed Definition:

A “healthy food” is a food or beverage that meets one or more of the following guidelines:

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 Foods with 5 or less grams of added sugar AND 200 milligrams or less of sodium per serving
 Gum and mints with no added sugar
 Beverages with no added sugar and no low- to no-calorie sweeteners

Rationale:
 Provides an objective standard for businesses to follow  Ensures that retailers can stock compliant products without significant cost burden
 Aligns with evidence-based dietary recommendations for improving public health

City Council feedback is requested to refine or approve this definition.

4. Outreach and Education

To ensure successful implementation and compliance with this policy, effective outreach and education are key. Efforts will focus on engaging retailers, community organizations, and residents through informational materials, workshops, and direct support. The goal is to build awareness, provide technical assistance, and reinforce the benefits of the policy for both public health and local businesses. Collaboration with Contra Costa County and other stakeholders will help create a seamless transition and long-term success.

Staff Recommendation:

The City will implement a 1-year outreach period before enforcement begins, during which it will take several steps to ensure businesses are informed and prepared to comply with the ordinance. Informational postcards will be sent to businesses affected by the new regulations, providing key details about compliance requirements.

Additionally, educational workshops will be conducted to offer resources and guidance to businesses on how to meet the ordinance's standards. To further support compliance, the City will facilitate partnerships with local health organizations and grocers, increasing access to qualifying healthy products. A public awareness campaign will also be launched, utilizing digital platforms, community meetings, and in-store signage to inform both businesses and the public about the ordinance and its benefits.

Rationale:
 Mirrors Contra Costa Counties proposed approach as well as the City of Berkeley’s approach, which successfully allowed businesses to transition without financial hardship
 Provides businesses with a clear timeline to adjust product offerings  Builds community buy-in by educating residents on the health benefits of the policy
 Helps to emphasize that this is not intended to be punitive for retailers but rather a collaborative effort aimed at improving community health while also supporting the economic interests of store owners.

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SYNERGISTIC POLICIES:

The Healthy Checkout Ordinance aligns with Richmond’s existing Health in All Policies (HiAP) Framework, which prioritizes health equity, community well-being, and reducing chronic disease rates. The Richmond HiAP report highlights the disproportionate burden of diet-related illnesses, such as type 2 diabetes and cardiovascular disease, in low-income neighborhoods. By ensuring healthier retail environments, the proposed ordinance directly supports the HiAP’s goals of improving nutritional access and reducing health disparities.

Furthermore, this initiative complements the City’s broader efforts in food equity, public health promotion, and sustainable economic development. The ordinance would contribute to Richmond’s long-term strategy of fostering a healthier community while reinforcing the City’s commitment to evidence-based policymaking.

DOCUMENTS ATTACHED:

Attachment 1 - January 25, 2022, Agenda Report on HOPS
Attachment 2 – HOPS Youth Advocates Presentation (March 4, 2025) Attachment 3 – Ordinance Draft

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