The issue may be resolving in our favor
After talking face-to-face with Philip at the recent VCDL meeting, Philip followed their normal protocol and contacted the Alexandria City Clerk's office by phone to let them know we were aware of their extra-legal CHP application/renewal requirements. The Clerk said that despite what the website indicated, they were actually following VA State law and not requiring a SASE, were accepting renewals by mail, were not requiring additional training certifications from military members, etc. The Clerk said he would contact the person responsible for their website and would have the content changed to reflect the correct requirements. Philip and I agreed to follow up with each other in 30 days to see if the changes have been made to the website and, if not, to decide how we would proceed.
For now, it seems that Alexandria City is following the law and no legal action is currently anticipated.