City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 13, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
TROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: LEAH RILEY, DIRECTOR, TRANSPORTATION AND ENVIRONMENTAL SERVICES
DOCKET TITLE:
TITLE
Public Hearing, Consideration and Authorization of the Execution of Proposed Comprehensive Agreement for the Waterfront Implementation Project.
BODY
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ISSUE: Review and approval of the Proposed Comprehensive Agreement for the Waterfront Implementation Project, including authorization for the City Manager to receive and negotiate a Guaranteed Maximum Price for the work and to execute a negotiated Comprehensive Agreement and to issue any necessary amendments to the previously approved Interim Agreement and associated Scope of Services.
RECOMMENDATION: That City Council:
1. Formally direct, and authorize, the City Manager to amend the existing Interim Agreement with Skanska/JMT for Phase 1 Scope of Service, as needed (to include amending the project scope, performance criteria, and Phase 1 fees), to design and construct the preferred project alternative: “Option 3 - Enhanced Gravity Sewer,” (as presented to Council on March 24, 2026), and as described herein and in Attachment 2.
2. Authorize the City Manager, or his designee, to:
• Receive and negotiate a Guaranteed Maximum Price (GMP) Proposal
• Execute a Comprehensive Agreement with Skanska/JMT generally consistent with the proposed draft Comprehensive Agreement (Attachment 1) to finalize both the project scope and Design-Builder scope
• Authorize Phase 2 Services for the Waterfront Implementation Project, not to exceed Council-authorized funding for Phase 2
• Determine the appropriate contract and payment structure (i.e. Cost-Plus with the potential for a Shared Savings provision, or Stipulated Price/Lump Sum) through negotiation of the GMP, multiple separate GMP proposals, and/or Early Works Packages
• Issue contract modifications and/or amendments to the project scope and Comprehensive Agreement, as needed within the financial limit authorized by Council, to accomplish requirements of Phase 2 design and construction for the Option 3-Enhanced Gravity Sewer option
• Scope, negotiate and execute Early Work Package contracts and amendments within the approved funding and contingency limits
BACKGROUND: In June of 2023, The Council authorized an Interim Agreement for the Waterfront Implementation Project (Project). The City is nearing completion of Phase 1 Services and requires Council authorization to execute the Phase 2 work via a Comprehensive Agreement.
A Public Hearing on the solicited proposal process was held in the interest of a fair and transparent procurement process. The City then commenced negotiations with the highest-ranked offeror and executed an Interim Agreement for Phase 1 Services consistent with the form of the Proposed Interim Agreement and with the goals and budget for the Project, which was subsequently advanced to 30% design.
National Park Service Reversal
In February 2026, the National Park Service (NPS) notified the City that it no longer supported the City’s long-standing plan to construct a pump station in Waterfront Park (consistent with the Small Area Plan, 2014 Council-adopted Waterfront Plan, and Solicitation RFQu 1047) and would no longer agree to provide a requested and required deed modification for the City-owned Waterfront Park parcel. This reversal required that the City develop an alternative approach to the Project.
Change in Project Scope and Owner Requirements
In response to the NPS reversal, staff and the project team developed several project alternatives that were presented to Council on March 24, 2026. Council directed staff to further evaluate the preferred “Option 3 - Enhanced Gravity Sewer,” (as described herein and in Attachment 2).
In summary, the preferred alternative, as practicable and affordable within the project budget:
• Eliminates the requirement and scope to construct a pump station
• Includes upgrading and replacing portions of critical existing storm sewer system
• Replaces and raises critical sections of bulkhead and shoreline (to the maximum extent practicable and as affordable within authorized funding) to achieve riverine flood protection to elevation 6+00
• Restores and creates parks and public amenities in Waterfront Park and Point Lumley Park
• Provides flexibility to defer improvements to Point Lumley Park and associated shoreline/bulkhead improvements, as needed, to meet the project budget:
o Including restoration of the existing parking lot post construction in lieu of the originally proposed park improvements
o Alternate Point Lumley hybrid shoreline condition
• Includes Lower King Street pedestrian improvements to the unit and100 block of King Street and the intersection of King Street and Union Street.
Public updates and information regarding the alternative Project scope and Public Hearing on the Comprehensive Agreement include:
• Project Webpage Updates
• Waterfront Commission Meetings - 4/21/26 & 5/19/26
• Presentation to Old Town Civic Association - 5/13/26
• Virtual Stakeholder/Public Meeting - 5/18/26
• Included direct email invitations to stakeholder list and public eNews
• Parks and Recreation Commission Meeting - 5/21/26
The Project alternative was advanced to 30% design, and parallel cost estimates were developed. With Council’s authorization, a modified scope for Phase 1 Services will advance the project to 70% design and subsequently a GMP proposal will be developed for final design and construction (Phase 2). After final negotiation of the GMP, Phase 2 services will be contracted via the final, negotiated Comprehensive Agreement, in conformance with the draft Comprehensive Agreement (attached) as authorized by Council. Phase 2 services are anticipated to include completion of design, support in obtaining regulatory approvals and permits, and construction of the Project.
DISCUSSION: A PPEA-compliant two-step procurement solicitation process was used for the Project, which is being delivered through the Progressive Design-Build model. This model provides the benefit of selecting a well-qualified combined design and construction team and divides the project delivery into two phases. Phase 1 services were contracted with the executed Interim Agreement and included site investigations, analysis of alternatives, development of design, permitting, and development of a GMP proposal.
Due to the “progressive” nature of the Progressive Design-Build delivery method, Phase 2 services and associated costs will be administratively negotiated and/or renegotiated based on the requirements and scope of work determined by the City and contracted under the final Comprehensive Agreement.
“Early Work Packages” are a set of construction activities that can be safely started before the main design is finalized. Examples for this project may include:
• Design packages
• Advanced mobilization for advanced utility/infrastructure work
• Advanced purchase of long-lead, high-risk, and/or cost-sensitive materials
• Selective demolition and/or replacement of aged, failing, or high-risk infrastructure as consistent with the scope of work
Early Work Packages may be authorized and negotiated when it is determined that advancing the work is in the City’s best interest. Authorization of such will be contingent upon the City obtaining all required development approvals for the applicable project elements, as well as any necessary permits and approvals from regulatory agencies with jurisdiction.
All other Phase 2 work will be authorized separately by the City Manager under the Council Approved Comprehensive Agreement (including any authorized modifications or amendments).
Per the City’s PPEA Guidelines, the Council must review the draft Comprehensive Agreement prior to authorizing the City Manager to finalize negotiations and execute the agreement. A draft Comprehensive Agreement was previously shared and reviewed by Council as part of the Public Hearing for the Interim Agreement on May 23, 2023.
CURRENT PROJECT BUDGET:
Remaining Budget for both Phase 1 Contract Modifications and Phase 2 Services is up to $141,500,000
FISCAL IMPACT:
The Interim Agreement, Comprehensive Agreement, and any associated Early Work Packages negotiated and incorporated by the City Manager, or his designee, shall be specifically limited to the project budget.
• Phase 1 Services -Authorization of an additional $1,000,000 to prior approved cap
o Total with modifications not to exceed $18,000,000
• Phase 2 - Design/Professional Services and Construction not to exceed $140,500,000.
Council’s authorized “not to exceed amount” for Phase 2 services shall increase to align with any future Council-approved additional funding (including any Council-authorized and awarded grants, CIP funding, and/or additional Stormwater Utility Funding).
ATTACHMENTS:
1. Draft Comprehensive Agreement
2. Exhibit - Concept Plan Excerpts from March 24, 2024, presentation to Council
3. Presentation
STAFF:
Cheran Ivery, City Attorney
Emily A. Baker, Deputy City Manager
Bryan MacAvoy, Assistant City Attorney
Daphne Kott, Deputy Director, Transportation and Environmental Services
Matthew Landes, Portfolio Manager, Transportation and Environmental Services