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Commission approves Morrow Street reconstruction agreements amid insurance and timeline concerns
Summary
The commission approved a CMAR preconstruction agreement with BHS Construction and an engineering contract with Olson Inc. for Morrow Street in Aggieville, 4–1, after debate about insurance limits, project timelines and parking design; staff will return at 35% design for further direction.
The Manhattan City Commission voted 4–1 to approve a $22,500 construction-manager-at-risk preconstruction agreement with BHS Construction Inc. and a $442,979 professional engineering agreement with Olson Inc. to advance the Morrow Street improvement project in Aggieville.
City staff said the work is intended to coordinate public infrastructure with a nearby hotel project and affect about 40 businesses on the two-block corridor. The contracts would move the design to roughly 35% so engineers can return with a guaranteed maximum price and construction phasing options. “This is the last phase of major reconstruction in Aggieville,” staff said in the presentation, and the team plans to return with 35% design for further commission direction.
Several commissioners pressed staff on contract language, insurance minimums and timeline expectations, saying the downtown context raises stakes for business interruptions. One commissioner urged more protective liability terms and a clearer project schedule before the city signs a long-term construction contract. Commissioner Morrison said the current insurance wording and other provisions “do not protect the city or the public” and requested specific contract markups to be submitted for review.
BHS representative Patrick Shutter told the commission the company carries an umbrella liability policy above the minimums in the draft agreement, saying, “I think we have a $15,000,000 umbrella liability policy, so we're covered.” Staff said they could return with comparable contract language and peer benchmarks for similar downtown projects. The commission also directed staff to collect feedback from Aggieville business owners on parking preferences (north vs. south side) and said they would include those responses in the next packet.
Public commenters representing Aggieville business interests asked the commission to prioritize pedestrian amenities and to weigh business input on parking configuration. “Please do not ignore the overwhelming support for pedestrian amenities as you continue this process,” said Ashley Furman, a resident and business supporter.
The motion to approve the CMAR and engineering agreements carried 4–1. The mayor cast a yes vote; one commissioner voted no. Staff said they will return with 35% documents, refined contract language and schedule estimates for further commission action.
