We established a recycled market development zone (RMDZ), one of 40 zones in California. The zone has generated $45 million of investment.

The City helped with low interest loans, loan packaging, technical assistance, and ombudsman services. The State designated it an enterprise zone with sales tax credit, hiring tax credit, training programs, net loss carry-over, etc.

I look first for effective project management, with senior experienced staff. The City can help with permits, utility management, construction assistance, marketing, procurement.

We also have an export development office to facilitate manufacturing for global markets.

In terms of capital, the City of Long Beach has a revolving loan fund with local banks. There are also SBA 7A loan guarantees and an RMDZ revolving loan fund from the state. Now my problem is a lack of available land. I can pick out the best technologies and management, and we get money from many sources to put the package together.

An example is Gridcore which uses scrap cardboard to produce furniture, wall panels, etc. It was initially funded by a USDA forest products research credit of $450,000, City of Long Beach revolving loan of $300,000, plus borrower equity injection of $250,000. Now it has received $12 million in private capital. It generated 80 new jobs, and operates 24 hours a day.

Fort James Corporation, created in 1997 with the merger of Fort Howard and James River, is one of the largest tissue corporations in the world. We make tissue that is 100% recycled, with significant post-consumer content, primarily from office paper and junk mail. Our U.S. mills use in excess of 100,000 tons per month.

We are concerned with where our new fiber material comes from. California generates two million tons of mixed paper per year -- only 25% is recovered. We need more diversion to feed our mills.

We finance MRFs and recycling operations, if the collection and production generates the material we need for tissue at an economically feasible price.

Recycling coordinators are experts in their field. They can teach procurement personnel and end users about the benefits of buying recycled products as well as explaining how to look for the differences in products.

LAMPPAC (Los Angeles Metro Public Purchasing Agents Cooperative) held a meeting to learn about things purchasing managers can do to help get to the 50% goal.

For example, traffic cones with a brown base are recycled, while black-based cones are not. This is a simple change that can be made when we have the knowledge.

Recycling coordinators and purchasing personnel must work together to reach the 50% goal.

King County in Washington saved nearly $500,000 last year buying recycled materials. Check their website at http://www.metrokc.gov/procure/green.

We need to overcome the myths about quality. We are also looking at a buyers consortium to help cities purchase in larger quantities so the cost will go down. City managers need to make related policy decision. We are considering producing a conference int he fall that will bring together recycling coordinators with procurement agents to increase the dialogue and catalyze more purchasing of reycled products.

Announcement: Nov. 15, 1998, is America Recycles Day. There will be a conference in Long Beach. For more information, contact Jim Mang at 562-570-2850. Different cities throughout California are being encouraged to sponsor events to highlight this annual event.