Agenda Packets - 1999/02/01 - Laserfiche WebLink

Home Browse Search

/ /:/ M iff / riff-MM /_.:/ MMM MM: M:MM YEAR 2000 PROBLEM tive leadership role in helping their communities prepare as well. Payment to one entity is dependent on rev- enue to another. If electric companies cannot produce electricity,many parts of the community will shut down;if they cannot generate revenues,they will be unable to make transactions with other businesses. There could be an avalanche of negative impacts from merchants'inability to charge for services,including the dire prospect of economic downturns,business shutdowns, and layoffs. At the same time,security systems in private as well as public buildings,including alarm systems,automatic door locking and opening systems,and identification systems could operate erratically or not at all, putting people and goods at risk and disabling authorized access to important functions. •• _ Programmable elevator systems could go into weekend mode on weekdays,or into week- day mode at night or on weekends, leaving buildings open;or could go into emergency or maintenance modes at the wrong times and leave buildings inaccessible. The Local Economy and Local Government Revenues Local government and local businesses are linked by a two-way exchange of information. Taxes,licenses,real estate information,development programs,and other city or county programs depend on the flow of informa- tion,and so do businesses. Ignoring the Y2K problem threatens that flow of information,and thus the health of the local economy and the fiscal health of the local government. Local governments whose computer systems are vulnerable to Y2K problems face potential loss of revenues if they do nothing. Dayton,Ohio,for example,saw the Y2K problem as a threat to$210 million a year in revenues from water fees,income taxes,and accounts receivable. The city plans to have systems installed sometime this year to keep its revenue streams flowing. Tax bills could be overdue or not due at all,licenses could expire and not be renewed, building permits could go unissued,and so on -- and the link between local business and local government could become hopelessly tangled. And beyond those are still other effects that local government and local businesses,too, need to consider, including legal liability. Legal Liabilities The potential effects of the Year 2000 problem seem likely to create an environment in which legal action will thrive. So far,with no lawsuits filed,there are no court decisions and no case law. But there will be. Warren Reid, Encino,Calif.,legal consultant specializing in Y2K issues,told clients in a recent white paper, "Failing to fix your upcoming Year 2000 problems can not only cause disruption and loss of market share, -4-