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To request that the Mayor (i) propose an annual budget for Fiscal Year 2026-2027 that recommends $1,131,800 in funding to increase wages and benefits for contracted janitorial workers and (ii) pursue an amendment of the City’s Janitorial Services contract during Fiscal Year 2026-2027 to add a requirement that the City’s janitorial services contractor pay its employees at least the City’s minimum wage and to request that the Chief Administrative Officer, upon the approval of the aforementioned budget appropriation, pursue an amendment of the City’s janitorial services contract to include a requirement that the City’s janitorial services contractor pay the City’s minimum wage to its employees who are performing services under the City’s janitorial services contract beginning Jul. 1, 2026.
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WHEREAS, the City of Richmond’s minimum wage for all city employees was increased to $20.00 per hour, one of the highest in the Commonwealth, on July 1, 2024, but third-party contractors under contract to provide services in City facilities, including janitorial and security services, are not required to pay their employees at the same rate; and
WHEREAS, the City Council unanimously adopted Resolution No. 2025-R019, adopted June 2, 2025, which requested that the Chief Administrative Officer cause to be conducted a study of the fiscal, operational, and related considerations associated with requiring janitorial and security contractors under contract to provide services to the City to pay the City’s minimum wage, currently $20.00 per hour, to their employees who are performing services under those City contracts, and to provide the Council with any recommendations for implementing such a requirement; and
WHEREAS, the Chief Administrative Officer reported in the study performed pursuant to Resolution No. 2025-R019 that the City awarded a new security services contract pursuant to Chapter 21 of the Code of the City of Richmond (2020), as amended, and such contract includes minimum wage requirements, but that no such minimum wage requirements are included in the City’s existing contract for janitorial services, and
WHEREAS, the study found that requiring an increase to the wages to be paid by the janitorial services contractor to their employees up to the City minimum wage through a contract amendment would raise annual costs by approximately $1.04 million; and
WHEREAS, the study did not recommend bringing either security or janitorial services in-house as that would nearly double total annual costs.
WHEREAS, contracted workers deserve benefits such as paid time off and sick leave which is estimated to cost an additional $91,800 annually.
NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF RICHMOND:
That the Council requests that the Mayor propose an annual budget for the fiscal year commencing July 1, 2026, and ending June 30, 2027, that recommends $1,131,800 in funding to increase wages ($1,040,000) and benefits ($91,800) for contracted janitorial service workers with the City of Richmond.
BE IT FURTHER RESOLVED:
That the Council requests that the Mayor pursue an amendment of the City’s Janitorial Services contract during the fiscal year commencing July 1, 2026, and ending June 30, 2027, to add a requirement that the City’s janitorial services contractor pay its employees at least the City’s minimum wage.
BE IT FURTHER RESOLVED:
That the Council requests that the Chief Administrative Officer, upon the approval of the aforementioned budget appropriation for the fiscal year commencing July 1, 2026, and ending June 30, 2027, pursue an amendment of the City’s janitorial services contract to include a requirement that the City’s janitorial services contractor pay at least the City’s minimum wage to its employees who are performing services under the City’s janitorial services contract beginning July 1, 2026.
DATE: January 2, 2026
TO: The Honorable Members of City Council
THROUGH: RJ Warren, Council Chief of Staff
THROUGH: Will Perkins, Senior Legislative Services Manager
FROM: The Honorable Stephanie Lynch
RE: To request that the Mayor include $1,131,800 in funding in his forthcoming Fiscal Year 2027 budget proposal to increase wages ($1,040,000) and benefits ($91,800) for contracted janitorial workers and pursue amendment of the City’s Janitorial Services contract to add a requirement that the City’s janitorial services contractor pay its employees at least the City’s minimum wage in his forthcoming Fiscal Year 2027 budget proposal and to request that the Chief Administrative Officer, upon the effectiveness of the aforementioned budget amendment, to pursue amendments of the City’s janitorial services contract to include a requirement that the that the City’s janitorial services contractor pay the City’s minimum wage to its employees who are performing services under the City’s janitorial services contract.
CNL-2025-0021
PURPOSE: To request that the Mayor include $1.13 million in funding in his forthcoming Fiscal Year 2027 budget proposal to increase wages ($1.04 million) and benefits ($91,800) for contracted janitorial workers with the City of Richmond. Further, the resolution requests that the Chief Administrative Officer pursue amendments to the City’s janitorial services contract to require that contracted janitorial workers are paid at a rate equivalent to the city’s minimum wage.
BACKGROUND: Resolution 2025-R019 requested that the Chief Administrative Officer cause to be conducted a study of the fiscal, operational, and other considerations associated with requiring janitorial and security contractors under contract to provide services to the City to pay the City’s minimum wage, currently $20.00 per hour, to their employees who are performing work under City contracts, and to provide the Council with any recommendations for implementing such a requirement by no later than Nov. 1, 2025.
The study was completed and found that it would cost an additional $1.04 million annually to increase janitorial wages to the City’s minimum wage. The City executed a new security contract, effective November 1, 2025, increasing security wages to parity with the City’s minimum wage at an additional cost of $1.1 million in Fiscal Year 2026. The study found that for both positions, janitorial and security, it was more financially prudent to contract with outside vendors for these services rather than bringing them in-house - which would nearly double total annual costs.
Overall, the study recommended maintaining the status quo. However, given the findings listed above, patron wishes to express Council’s support for including additional funding in the Mayor’s proposed budget to increase janitorial wages as described in this study. Further, the patron supports funding additional benefits for contracted janitorial workers anticipated to cost approximately $91,800 - an estimate compiled by representatives of the Service Employees International Union (SEIU) 32BJ affiliate (see attachment “SEIU 32BJ email”). Specifically, the patron requests funding to provide janitorial workers with 40 hours of paid time off (PTO) and six paid holidays.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: A thriving City Hall
FISCAL IMPACT: Including this request in the Mayor’s proposed Fiscal Year 2027 budget should incur no additional costs in Fiscal Year 2026. Should the final Fiscal Year 2027 budget include funding as requested, fiscal analysis included in the study (attached CAO memo, page 9) identified additional $1.04 million in Fiscal Year 2027 costs and $7.1 million additional through Fiscal Year 2031. Further the SEIU 32BJ estimates that additional PTO and sick leave benefits would cost $91,800 (see attached “SEIU 32BJ email”) for a total of $1.13 million.
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: January 12, 2026
CITY COUNCIL PUBLIC HEARING DATE: January 26, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development
AFFECTED AGENCIES: Office of Chief Administrative Officer, Department of Budget and Strategic Planning, Department of Procurement Services, Department of General Services.
RELATIONSHIP TO EXISTING ORD. OR RES.: N/A
ATTACHMENTS: “CAO Memo Janitorial and Security Contract Analysis_FINAL 1.pdf” and “SEIU 32BJ email”
STAFF: Will Perkins, Senior Legislative Services Manager (804)-646-5975