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Page 2 <br />Y2K Compliance <br />For City Council Meeting January 19, 1999 <br />ALTERNATIVES <br />The City could take a passive approach to this problem and wait until the clock changes to see if there are <br />any adverse effects of the date rollover. Conversely, the City could take a proactive position by evaluating <br />all of the known components in the City systems and ascertain any potential problems that could occur <br />and make a conscientious effort to mitigate any impacts of the date change. Because of the potential <br />liabilities that may face the City, the latter alternative would be recommended. <br />To accomplish this, the Utility Department has engaged the services of TAVA / R. W. Beck to perform the <br />systems analyses for the City. Their task is to inventory all of the embedded program components <br />throughout the City facilities and render a report stating whether or not each is in compliance or fails in <br />functioning when the millennium changes. <br />In addition to the contract work, each department, through the Finance Department and Information <br />Systems, will be responsible to contact any software vendor to determine their compliance with the Y2K <br />problem. Once all of the tasks are completed, the City will have a pretty good idea of its exposure to any <br />Y2K noncompliance and the probable impacts on City services. <br />FINANCIAL <br />It is difficult to determine the ultimate costs of complying with the Y21K situation. We are sure that the <br />costs TAVA / R. W. Beck will be in the $17,000 range. This will be paid through the billings from SCPPA <br />as prearranged by the eleven members of the JPA who initiated and authorized the expenses for the <br />participating cities. <br />The costs for bringing the City into compliance will not be known until the systems review is complete. <br />From this the various components, if any, can be identified and the costs of replacement or modification <br />can be quantified. This could be minor if the only problem is associated with something as trivial as a <br />programmed thermostat, but could be substantial if a major piece of software or component at the <br />substation or wastewater treatment plant fails to comply. <br />ENVIRONMENTAL IMPACTS <br />No environmental impacts are envisioned from either compliance or noncompliance. <br />RECOMMENDATION <br />It is recommended that the City complete the inventory of Y2K sensitive components. Upon the- receipt of <br />the final report, determine the sensitivity of each element in noncompliance and prepare a budget for <br />mitigation. This budget should be presented to City Council prior to the establishment of the FY 1999- <br />2000 City budget. Once this step to mitigate any problems is devised, the costs to fix, or minimize any <br />impacts of the date change can be incorporated in each departmental budget. <br />In addition to any mitigation of existing components, the City should establish a policy to assure that any <br />new purchases between now and into the next year include provisions that the vendor will provide <br />assurance that any equipment with embedded program chips will be Y21K compliant. <br />