The URL can be used to link to this page

Home My WebLink AboutFIN 02/99 - III OF ", ~i\ (1", w_-~ r.: .Li1 f> :~~ REPORT TO COUNCIL FROM: Gi Ilis ^- Paterson Director of Finance & Treasurer DATE: February 2, 1999 REPORT NUMBER: FlN02-99 SUBJECT: Y2K Compliance -- Pre BuJget Approval of Expenditures RECOMMENDATION: That Report FIN02-l)9 ofthe Director of Finance be received and that - Council give pre budget approval of the expenditures included in the attached report entitled "Y2K Conlplial1(;e Status" in the ;lInount not exceeding $179,OUO in order to nlake the Town's opcrations Y2K compliant. OIZIGIN: Director of Finance & Treasurer AUTIIORITY: Municipal Act, R.S.O. 1990 FINANCIAL IMPLICATIONS: As indicated in the attachment, $179,000 needs to be spent early in W99 in order to have the changes inlplenlented, tesled and operational well before year end. These expenditures are necessary in urder to assisl in ensuring Y2K compliance for the Towll. As a resulL, approvallo expcnd the funds is being sought prior lo Council's consideration of the 1999 CUlTent and Capital Uudgcls. These cxpcnditlll'es will be included in the Town's 1999 CUlTentlJudget in General Governmenl Expenditures, to be fInanced {i'om the Tax Levy, or any other appropriate source. -- EXECUTIVE SUMMARY: Most goVerIlIllents and corporations are facing some necessary level of effort and expenditure in order to ensure, to the grealest degree possible, that systems, process and procedures, involving bolh hardware and sofiware, in all aspecls of operalions arc able 10 meet, and not be adversely alkclcu by, lhe changeover inlhe calendar from 1999 to 2000. This is lhe so called "Millennium ..u 1.__1 1_.. ....'\1\(\ 1._.=..._ n 1....._ ~.~.... I{cporttu Council FIN02-99 Date: February 2, 1999 Subject: '{2K CO:lIpliallce -- Pre Budgct Approval or Expellllilures Page 2 - This report and the alladllllent provides all overview or the ClIITent siluation and the rationale for lhe ahove recollllllendalion. BACKGROUND: Under lhe oireclion or the Chief Adlllinistrative Onieer, a Y2K Conuuillee was established with lhe Manager of Infurmation Systems as Chair. This Commillee met several times over the last few Inonlhs and the Manager prepared lhe lhe allached Y2K Compliance Status Report. The eXClcise revealed surprisingly rew potenlial problems, compared lo olhers that we arc aware of. The eslinlaled eot:l or correcting lhese problenls has been subjecllo extensive review, bolh belorc :IIHI aner prdinlinary estilllatcs were provided lo Councillors, which has resulted in a oecrease in lhe lolal cosl rlOm the original eslimate or approximalely $350,000 10 the current estimate of $179,000. I should point out however lhatmany of the costs deleted [rom the Y2K Compliance Stalus Report will be in the 1999 Capilal I3uoget as necessary operational expenditures. The Y2K Conllllillee looked at the systems and applications listed below and the allached Status Report identifies those that were not Y2K compliant. - All computing hardware and sollware: . personal computers including laplops . on~thc-shclrso/lware · cuslolni,.cd sc./lware applicaliolls . ccnlrally-supporteo server applications . local area Ilctworks . wide area nclworks . linancial soil ware Non "inJormation technology" ilems: · securily and access conlrol syslems (e.g. key cards) . l;lX n1achines wilh dale/lime logs · nlechanical devices . lelephone systems ano switchboards . hcaling, ventilation and air conoitioning systems . vehicles wilh electronic systems or micro-processors · envirolllllelllal conlrolunits . har-coding equipment . e1evalors As the allached reporl ilJ(jicales, some work needs lo be done and il should be cOlllmenced as soon as possible, hence the pre budgct approval request. While no one can absolutely guaranlee thallhen; wi Ilnol be any olher problems associaled wilh the change over lo the year 2000, we arc n:asollal>ly cOllliJenllhallhe actiolls conlained inlhe reporl will aJdress the problems idcnlifieu. ATTACIIMENTS: Y2K Compliancc -- Slatus - 't;-.. Gillis A. Paterson f1i '.I'd 01" or T7innllr.1' ,Iv Trl'n~llrl'r Reporl (0 Council FIN02-99 Dale: February 2, 1999 Suhject: Y2K C0l11pli:lI1ee -- Pre IJl1dgcl ^pprov:t1 of Expemlilures Page 3 - RccolllIIlCmkd lur lhe cOl1sidcrali~1\ or Pickeril1g Town Council Thomas.r. Quinn, Chicf ^dl11inislralivc orriccr ,- - - ....- Y2K Compliance Status Jon Storms, Chair Y2K Committee February 2, 1999 - - Table of Contents Section Content Page 1.0 Overvie\v " .J 2.0 Y2K Compliant Departments " .J 3.0 Non Y2K Compliant Associated Costs 3 4.0 Non Y2K Compliant Departments ~.l Parks and Facilities 4 4.2 Public Works 4 4.3 Clerks 4 4.4 Customer Care 4 4.5 Transportation 5 4.6 library 5 4.7 Fire 5 -- - 2 - 1.0 Overview The Town or Pickering appears to be in quite good shape regarding the Y2K issue. Seve:1 depanments responded to the Y2K status request as being fully compliant, \vith the remainder indicating partial compliance. Based on depanmental responses, the total cost, to ensure the Town of Pickering is Y2K compliant is estimated to be $179,000. The cost of staff labour is not included. To e:1sure success, departments should receive budget approval in February, 1999, to proceed \\'ith their Y2K proj ects at the earliest possible date. The date of June 14, 1999, has been targeted as the date for the Y2K project completion. Therefore, starting February 26, 1999 departments submit monthly reports outlining their Y2K status, until such time as they have become Y2K compliant. Also departments be notified that they have until May 31, 1999, to become fully Y2K compliant. Departments will be encouraged to proceed with utmost speed, as the Town will be competing \vith the rest of the world for services. If departments leave their Y2K projects too late, they may fmd industry resources already reserved by other companies and municipalities, and thus, be unable to meet the May 31, 1999, deadline and perhaps the December 31, 1999, deadline. - 2.0 Y2K Compliant Departments 2.1 Finance 2.2 Planning 2.3 Economic Development 2.4 Human Resources 2.5 Legal 2.6 Information Systems 2.7 Culture & Recreation 3.0 Non Y2K Compliant Associated Costs 3.1 Parks & Facilities $82,340 3.2 Public \Vorks 574 3.3 Clerks 5,610 3.4 Customer Care 14,000 3.5 Transportation 1,840 3.6 Library 72,916 3.7 Fire 1,720 $179.000 - 3 - 4.0 Non Y2K Compliant Departments 4.1 Parks and Facilities Two systems require replacement as follows: Energy \Ianagement Systems: Civic Complex Recreation Complex East Shore Community Centre Simplex Time Clock Don Beer Arena Total cost 580,500 S 1.840 $8'1.340 One manufacturer (General Electric) who supplied the computerized relay panels for the Civic Complex lighting has suggested a possible solution that \yould in effect be without cost. This involves some minor programming of dates, etc. within eacl: ccmputer relay module. However, they are not prepared to "guarantee" the results given the age of the system (the system \yas designed and installed before Y2K was even thought of). Given the high cost of upgrading to newer computer modules, Parks and Facilities is prepared to recommend deletion of this item at this time and \vill reprogram as suggested by the manufacturer, but as per General Electric's non-guarantee, the ultimate results are not guaranteed. ,- 4.2 Public \V orks Only one system was identified as being in need of an upgrade, and that was the Traffic Counting Board, at a cost of $574 otherwise the Board will not operate in the year 2000. This upgrade is not absolutely necessary to the safety of the Town, but this equipment is critically date sensitive and the software upgrade will enhance the performance of this tool and provide Year 2000 compatibility. 4.3 Clerks Two systems need to be upgraded, both at the Works Centre: the Inventory System that will cost $2,390, and the Phoenix Gas Dispensing system, at a cost of 53 ,220 both of which are date sensitive. The total cost for Clerks to be made Y2K compliant is $5,610. The Inventory System will be reviewed later in 1999 before any funds are expended. 4.4 Customer Care Two date sensitive voice-messaging systems to be upgraded as follows: Call Pro Civic Complex $13,425 Star Talk Recreation Complex 5575 Total cost 14.000 - 4 - 4.5 Transportation One date sensitive Simplex Time Clock is to be replaced, at a cost of $1,840, subject to the final disposition, and timing, of any transit amalgamation. 4.6 Library Thirty-seven PCs require replacement, along with a number of network and software system upgrades pertaining to their computer network at a cost of 572,916. The Library's automation philosophy has been to make its hardware and software acquisitions last as long as practicable: e.g., to upgrade to newer versions of software or to more powerful hardware only as needed, where possible to re-use otherwise outmoded hardware as print servers and the like, etc. This approach has allowed the Library to avoid the cost of frequent system-wide upgrades, with the result that a large number of older computers and software version are in use. All items requested for replacement have been tested for Y2K compliance, and failed. 4.7 Fire The Time Date Stamp is to be replaced at a cost of$1,720. - ",-.. 5