Item 8d Memo

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      8d 
Date of Meeting    March 5, 2009 
DATE:    February 13, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Tony Baca, Manager, Airport Buildings & Facilities Services 
Michele Fideler, Airport Facilities Manager 
SUBJECT:  Lease for Multifunction Document Devices 
REQUEST:  Request Authorization to Execute a Lease for Multifunction Document Devices
for the Airport Office Building at an estimated cost of $463,251. 
SYNOPSIS:  The lease for multifunction document devices in the Airport Office Building must
be renewed. These devices provide copy, print, scan and fax ability at central
locations in the building. The lease will provide new devices and necessary
servicing over a four year period, while saving the Airport $143,345 compared to
the existing lease. The new lease will reduce the number of leased devices from
20 to 18 and will employ environmentally sustainable practices in terms of
recycling and energy rate. 
BACKGROUND 
The Port of Seattle's Airport Office Building (AOB) is occupied by approximately 300
employees and contract workers on six floors. There are 20 Xerox multi-function, networked
devices strategically located throughout the AOB that perform copying, printing, faxing and
scanning. The four-year leases on all but one of these machines expired in December 2008. 
The Port has cooperative purchasing agreements for multifunction document devices with both
King County and the State of Washington. The proposed new lease is based upon the State of
Washington contract pricing and terms. The Airport Facilities Manager interfaced with Port
purchasing agents prior to receiving proposals from Xerox, Ricoh, and Kyocera. 
Currently, the Port has only Xerox and Ricoh machines installed throughout the organization.
The purpose in limiting the number of companies is for operation and management purposes.
The Port's Information and Communications Technology (ICT) Department must manage the
installation of the devices on the Port's network, ensure that they meet the Port's information
security requirements and assist users installing the print drivers on their computers. ICT is also
required to interface with the companies when troubleshooting network/device issues, planning
for new features, and assisting with any changes or moves. If the number of brands of machines
were increased, the management of the devices becomes more complex and more staff support
would be required.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 13, 2009 
Page 2 of 3 

An assessment of the historical usage and locations of the existing devices led to the conclusion
that two of the 20 existing devices could be eliminated, bringing the total to 18. 
Both Xerox and Ricoh were provided a list of requirements for the next copier lease and both
companies were able to meet most of the requirements. They both proposed excellent machines,
maintenance service, and competitive pricing. In addition, as a gesture of good faith, we
investigated Kyocera machines. 
RECOMMENDED ALTERNATIVE 
Request authorization to execute a new four-year lease for 18 Ricoh multi-function devices for
the Airport Office Building. The machines have the speed, features and user-friendliness needed,
their pricing is competitive and lower than our existing lease, and they have excellent
recommendations from both within and outside of the Port. Ricoh has a new service organization
and model which has received stellar reviews in the industry, they offer customized billing, and
their sales representatives are clear communicators and responsive. 
OTHER ALTERNATIVES CONSIDERED 
1.  Execute a new four-year lease for 18 Xerox multi-function devices for the Airport Office
Building. Even though their machines are reliable, ongoing billing, installation and support
issues have occurred since 2006. This alternative is not recommended. 
2.  Execute a new four-year lease for 18 Kyocera multi-function devices for the Airport Office
Building. Their specialty is the education market. Their fastest, comparable machine was
slower than the Xerox or Ricoh machines. Installing a fleet of untried machines in the fastpaced
airport environment is unwise. This alternative is not recommended. 
FINANCIAL IMPLICATIONS 
Cost Estimate 
The total estimated cost for the four-year lease including per-copy costs is $463,251 
Lease costs: 
18 machines @ $379.60 per month = $6,832.80 per month (plus tax) 
$6832.80 x 48 months = $327,974 total lease cost 
Cost per copy: 
Black: $0.0069 
Color: $0.055 
Estimated copy costs based on current use: 
Black: 5,624,257 x $0.0069 = $38,807 
Color: 1,753,979 x $0.055 = $96,469

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
February 13, 2009 
Page 3 of 3 

Source of Funds 
The expense costs are budgeted in the approved 2009 annual Port budget for the Airport Office
Building as a recurring expense. Assuming implementation of the new contract by April 1, 2009,
there will be an estimated savings to the 2009 budget of $25,000. 
Financial Analysis 
Compared to the existing lease, the proposed lease will reduce costs by an estimated $2,987 per
month, for a total of $143,345 over the life of the lease. The newer machines cost less to build
and operate and the market has gotten more competitive. Purchase of the equipment was not
pursued for several reasons. The primary reason is that the technology for these devices is
changing rapidly and the new machines will be obsolete in four years or less. Purchasing requires
cash up front, which was not budgeted. Leasing allows an affordable monthly payment
(financing by the leasing company). Most businesses lease their copiers to avoid the significant
capital outlay required to purchase, and avoid the expense (in both time and dollars) to surplus or
discard the machines at the end of their useful life. 
ENVIRONMENTAL SUSTAINABILITY/COMMUNITY BENEFITS 
Ricoh has excellent environmental qualifications, such as a zero-waste-to-landfill practice. They
use state of the art de-manufacturing systems to recover 95% of the material content from
equipment that has reached the end of its useful life. Ricoh's products are Energy Star compliant. 
PREVIOUS COMMISSION ACTION 
This item has not previously gone to Commission for approval.

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