Council approves $92,100 in bond refunds for Paul Jensen after warranty holdback

Preston City Council voted to approve refunds for two bonds tied to work at a Paul Jensen property, approving an $89,100 improvement-bond refund and a $3,000 swale-bond refund on the recommendation of Public Works and the city engineer.

Councilmembers questioned whether residual construction debris and unfinished work in adjacent right-of-way should delay the refunds. City staff explained the project had been treated as a single improvement and that, under city procedure for improvement bonds, the city retains 10% for warranty purposes. As one councilmember put it during the hearing, “Is the 10% enough to cover the warranty?” Staff responded that the 10% holdback is standard for improvement bonds in these circumstances.

John Boles, who the council asked to address on-site conditions, told the council he had spoken with the contractor and described visual observations of unfinished sidewalk work and a cement wall with a gate; he said some vegetation and debris along the right-of-way may predate Jensen’s ownership. Councilmember Todd Thomas moved to approve the refunds “as approved by our public works and engineer,” and an unidentified councilmember seconded the motion; the motion carried following a roll-call vote.

The council directed staff to monitor the area and said they would revisit the swale/right-of-way cleanup if issues remained after 30 days. No additional city funds were allocated; staff said the refunds follow the city’s established bonding and inspection practices.

The council returned to the published agenda after the vote and moved on to a scheduled public hearing on downtown revitalization.