CC PACKET 03091999 - Laserfiche WebLink

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YEAR 2000 ISSUES Background Many existing computer programs use only the last two digits to refer to a year. These programs do not properly recognize a year that begins with "20" rather than "19". If not corrected, many computer applications could fail or create erroneous results, possibly affecting an organization's operations, financial condition, or ability to make timely payments on its indebtedness. Assessment The City is following the action plan recommended by the League of Minnesota Cities and has completed its assessment of all mechanical equipment, computer hardware and software, and imbedded computer chips for potential Year 2000 problems. The mainframe computer that processes payroll, utility billings and other payments is not Year 2000 compliant and will be replaced in April 1999. Card key access and security for the police department is not compliant, but a compliant upgrade will be purchased in April 1999. One personal computer in the police department is non-compliant; the vendor has been contacted. The software used to connect the police department with the State of Minnesota Public Safety database is not compliant, but staff is working with IBM to determine a fix for the software. The City has an agreement with NetLink to assist them with any Year 2000 issues involving the City's computers, software, and miscellaneous hardware. Third party vendors and service providers have been contacted to determine if they have any Year 2000 compliance issues, and all correspondence is on file with the Y2K Coordinator at City Hall. The City expects its remediation efforts to cost approximately $44,000 and to be completed by August 1999. City Council has approved a $100,000 reserve to deal with Year 2000 issues. The costs and estimated completion dates for the Year 2000 modifications are based on the City's best estimates, which were derived utilizing numerous assumptions of future events, including the continued availability of certain resources, third party modification plans and other factors. However, there can be no guarantee that these estimates will be achieved. Actual results could differ materially from those anticipated. Specific factors that might cause such material differences include, but are not limited to, the availability and cost of personnel trained in this area and the ability to locate and correct all relevant.computer codes and all equipment and mechanical systems. The failure of the City to cause its computer systems to be Year 2000 compliant or the failure of significant third party vendors to make their systems Year 2000 compliant could materially and adversely affect the financial condition or operations of the City or expose the City to liability if municipal services were interrupted or suspended as a result of such failure. DTC DTC management is aware that some computer applications, systems, and the like for processing data ("Systems") that are dependent upon calendar dates, including dates before, on, and after January 1, 2000, may encounter "Year 2000 problems." DTC has informed its Participants and other members of the financial community (the "Industry") that it has developed and is implementing a program so that its Systems, as the same relate to the timely payment of distributions (including principal and income payments) to security holders, book- entry deliveries, and settlement of trades within DTC ("DTC Services"), continue to function appropriately. This program includes a technical assessment and a remediation plan, each of which is complete. Additionally, DTC's plan includes a testing phase, which is expected to be completed within appropriate time frames. - 6 -