PLACENTIA : Bond Sale Approved for Recycling Gear
The City Council this week unanimously approved the sale of $2.6 million in bonds to pay for new equipment for the city recycling program.
The Placentia Disposal Co. will use the money to buy new equipment for the recycling program scheduled to begin in July, City Administrator Robert D’Amato said.
The money will be repaid through garbage collection fees, he said.
“By financing the equipment ourselves, we were able to save as much as 50 cents per household,” said D’Amato, adding that city financing at an interest rate of 7.5% is cheaper than the bank rate of about 12%.
The equipment will include a mechanical arm that picks up curbside trash bins containing recyclables.
“The city will share in the profits from the recycled goods and will have a share in getting top dollar for recyclables,” he said.
The firm of Stradling Yocca Carlson & Rauth was chosen to act as bond counsel, with the firm of Seidler-Fitzgerald Public Finance acting as investment banker.--JULIE ESPY
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