City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 22, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: EMILY A. BAKER, DEPUTY CITY MANAGER AND INTERIM DIRECTOR, TRANSPORTATION & ENVIRONMENTAL SERVICES
DOCKET TITLE:
TITLE
Consideration of Modifications to the Washington Metropolitan Area Transit Authority Funding Agreement for the Potomac Yard Metrorail Station [ROLL-CALL VOTE]
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ISSUE: Consideration of modifications to the Amended and Restated Agreement Between the Washington Metropolitan Area Transit Authority (WMATA) and the City of Alexandria, Virginia, for the Funding of the Potomac Yard Station Project (Funding Agreement) to add $35 million in funding for the Potomac Yard Metrorail Station.
RECOMMENDATION:
1. That City Council authorize the City Manager, subject to approval of all applicable legal documentation by the City Attorney, to enter into a third amendment to the WMATA Funding Agreement upon full execution of a global settlement agreement resolving all merited change orders, negotiated Contractor's claims, and the existing escalator claim, with such funds constituting the City's final payment and a release of all current and future claims related to the project; and
2. That City Council authorize the appropriation and use of up to $35M from the Potomac Yard Fund balance to fund such third amendment to the Funding Agreement.
BACKGROUND: On May 14, 2025, the City received notice from WMATA that the project budget is insufficient to close out the project. WMATA's cost accounting indicates an additional $35M is required to close out all outstanding merited change orders, submitted Contractor claims, and the existing escalator claim currently with the Armed Services Board of Contract Appeals associated with the project. WMATA understands this request for additional funding will be the final...
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