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9 PRSR Directors Report Handout from meetingBECK LAW OFFICE 4746 Sheridan Ave. S. Minneapolis, MN 55410 Timothy Wold SRF Consulting Group, Inc. 2701 W Wayzata Blvd, Suite 100 Minneapolis, MN 55416 Peter K Beck Attorney at Law May 6, 2022 Re: Orono Park Pickleball Courts Dear Mr. Wold: 612-991-1350 peter@peterbeoMaw.com VIA U.S MAIL This letter is written on behalf of my client the City of Elk River ("City"). On April 20, 2020, the City entered into a Standard Agreement for Professional Services ("Agreement") with SRF Consulting Group, Inc. ("SRF") to provide the professional services described in SRF's April 4, 2020, proposal to the City for Active Park Improvements for Orono Park and the City's Youth Activity Complex. Included in the services to be provided by SRF is the design of four (4) pickleball courts at Orono Park. As you are aware, SRF designed the pickleball courts with a 1.25% slope, draining from east to west, with a crown between courts 1 and 2. New Look Construction, the contractor, subsequently installed the pickleball courts with a crown that has an approximately 1.4% slope. The American Sports Building Association Pickleball Court Construction and Maintenance Manual, 2020 Edition ("Manual"), provides that pickleball court surfaces should slope between 0.83% (1:120) and 1.00% (1:100), and should be sloped in one plane in the shortest direction. The 1.25% slope that SRF designed for the Orono Park pickleball courts exceeds this standard by 25%, and the east -west drainage pattern with the crown between courts 1 and 2 is contrary to the Manual standard that drainage be sloped in one plane in the shortest direction. These two design defects need to be corrected, and the only way to do so is by removing all of the existing bituminous pavement and concrete maintenance strip, regrading the courts, and replacing the bituminous surface and concrete maintenance strip. In a letter to Michael Hecker, Elk River Parks and Recreation Director, dated October 20, 2021, you proposed that SRF would address the design defects by paying for the cost of removing and replacing the concrete maintenance strip, removing the existing bituminous surface and installing a base lift of bituminous, all for a total amount of $21,119. You further suggested the City bear the cost of revising the drainage pattern from east -west to north -south by paying for the regrading, including additional class five base; and that the contractor bear the cost of repaving because of the construction defect that resulted in an approximately 1.4% slope at the crown. Timothy Wold SRF Consulting Group, Inc. May 6, 2022 Page 2 The east -west drainage pattern with the crown between courts 1 and 2 is inconsistent with the Manual and is therefore a design defect. However, the City Council has indicated a willingness to contribute $11,750 towards regrading the pickleball courts, provided that the drainage pattern is changed to a north -south orientation and the final slope of the courts is between 0.83% and 1.00%, as provided in the Manual standards. The contractor has pointed out that regardless of whether the existing courts were installed at 1.25% or 1.4%, they need to be removed and reinstalled in order to achieve the Manual standard of 0.83% to 1.00% slope. We agree with this point, but after extensive discussions New Look has agreed to contribute $5,000 towards reconstruction of the pickleball courts. Section 7 of SRF's Agreement with the City provides that SRF shall exercise the same degree of care, skill and diligence in the performance of the work it performs as is ordinarily exercised by members of the profession under similar circumstances in Minnesota, and that SRF shall be liable to the fullest extent permitted under applicable law, without limitation, for injuries, loss or damages proximately caused by SRF's breach of their standard of care. The City is aware of several pickleball court installations in the Elk River area that comply with the 0.83% to 1.00% Manual standard, and there are numerous others around the state that similarly comply with the standard. It is clear that compliance with this standard is required for SRF to meet its obligation under the Agreement to exercise the same degree of care as is ordinarily exercised by members of the profession under similar circumstances in the state of Minnesota. Therefore, this letter is to demand that SRF confirm it will remove the existing noncompliant pickleball court surfaces and concrete maintenance strip and replace them with four (4) pickleball courts that slope north to south or south to north, at a grade between 0.83% and 1.00%. The City and New Look will contribute $16,750 towards the cost to reconstruct the courts to comply with the Manual standards, but all other costs will be the responsibility of SRF. Section 19 of the Agreement specifically obligates SRF to indemnify the City from any costs, losses, and expenses, including attorney fees, resulting from SRF's negligent acts or omissions (including, without limitation, professional errors or omissions) in the performance of the services provided for in the Agreement. Failure to design the pickleball courts consistent with the Manual standards falls well within this indemnification requirement. Reconstruction and completion of the Orono Park pickleball courts cannot be delayed any further. It is imperative that this project proceed immediately and that the courts be completed and playable as early as possible. If we do not receive confirmation within ten (10) days that SRF will proceed with reconstruction of the pickleball courts under these terms, the City will proceed with the project on its own and, pursuant to the terms of the Agreement, hold SRF responsible to the fullest extent for all damages caused by SRF's breach of its standard of care, including damages for the delay caused by installation of the defective pickleball courts. In addition to the defective pickleball courts, a second issue has arisen regarding SRF's performance under the Agreement. SRF's April 4, 2020, proposal, incorporated in the Agreement, provides for construction services and states that, "... staff assigned to the project will stay Timothy Wold SRF Consulting Group, Inc. May 6, 2022 Page 3 engaged from the beginning to the end of the project ..." The Orono Park/YAC project has not been completed, yet Mr. Hecker advises that you are no longer performing all of the services SRF contracted in the Agreement to provide, stating that SRF has exceeded its budget for this project and "does not work for free." SRF is obligated to perform the services it contracted to provide, whether or not it underestimated the cost to it to provide these services. Section 19 of the Agreement provides that SRF is responsible for "all losses by reason of the failure of said Consultant fully to perform, in any respect, all obligations" under the Agreement. Once again, we must demand that SRF perform as required by the Agreement, and advise you that if SRF refuses to do so the City will proceed to make other arrangements including, potentially, engaging another consultant to complete the project. If that becomes necessary, the City will pursue SRF for all damages caused by SRF's breach of the Agreement. Finally, as you consider the efficacy and financial impact of not honoring your contractual obligations with the City, please immediately provide us with a copy of your Professional Liability Insurance policy and the Comprehensive General/Commercial Liability Coverage, including the Contractual Liability coverage, for which the City is an additional insured. Very truly yours, PETER K. BECK ATTORNEY AT LAW PLLC L-5 Peter K. Beck cc: John Dietz, Mayor Cal Portner, City Administrator Michael Hecker, Director of Parks and Recreation