City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 6, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: TERRY SUEHR, DIRECTOR, PROJECT IMPLEMENTATION
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Consideration of Modifications to the Washington Metropolitan Area Transit Authority Funding Agreement for the Potomac Yard Metrorail Station.
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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 $10 million in funding for the Potomac Yard Metrorail Station.
RECOMMENDATION: That City Council approve a second amendment to modify the WMATA Funding Agreement (Attachment 1) to reflect the addition of $10 million in funding from the Potomac Yard fund balance and authorize the City Manager to enter into an amendment to the Funding Agreement that reflects this change and is in general conformance with the remaining terms and conditions of the executed Funding Agreement attached.
BACKGROUND: On May 2, 2023, the City received notice from WMATA that the project budget is insufficient to complete the project. WMATA's current cost accounting and forecast indicate a $10,000,000 shortfall, resulting from unanticipated increases in technical oversight, project duration, project management, and scope. This request for additional funding does not cover any current or future litigation or claims associated with the project. Potential additional costs include the ongoing litigation associated with the installed escalators, the delay claim notice from the contractor, or other claims not yet filed. WMATA has denied these claims, but they are subject to litigation. The Amended and Restated Agreement between Washington Metropolitan Area Transit Authori...
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