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Technology Stocks : Discuss Year 2000 Issues

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To: John Mansfield who wrote (2570)9/12/1998 9:52:00 AM
From: John Mansfield  Read Replies (1) of 9818
 
'Good Morning, I am Port of Seattle Commissioner Paige Miller. I am here on behalf of the citizens of
King County in Washington State to explain how seriously we take the Y2K issue at Seattle-Tacoma
International Airport, to share with you some of our experience, and to provide some suggestions on how
Congress might help all airports deal with this crisis. I am proud of the fact that a recent Air
Transportation Association review found that we appear to be ahead of many other airports in preparing for
Y2K. But I am also here to express our concerns about how the airport industry will accomplish the Y2K
program in the short time remaining.

The Port of Seattle is a leader in Y2K program mobilization. We started in 1993 replacing old
computer programs to make sure they will handle the Y2K transition, and in 1997 we started looking at
mechanical devices with ''embedded'' computer chips which could also fail. What we found in our
inventory was that practically everything at the airport was potentially affected, and that we had better get
moving fast to find the problems and get them fixed.

Examples of key systems that are high on our list are: security controls, runway lighting, baggage
conveyors, fire alarms, back-up generators, 911 response systems, storm water treatment, heating, and
parking garage systems. If those systems fail we would obviously have a difficult time maintaining even a
minimal throughput of airplanes, passengers, and cars.

Given the magnitude of the threat, we have mobilized a Y2K team. Today there are 10 full time staffers
in that office, and soon the number will be 30. That team is following the GAO recommended Y2K project
plan, available on the World Wide Web. That plan says, find and assess each system, fix or replace it,
test to ensure compliance, and make contingency plans in case it all falls apart anyway. As of today we
have identified 113 systems and completed initial assessment on all of them. We are just beginning the
fix and test phase.

At this point, roughly a third of our systems are not compliant according to vendors, a third are
compliant according to vendors, and a third are still unknown because the vendor has not given us a
definitive answer or is not in business any more. Our budget for fixing known non-compliant systems and
testing all systems is approximately $10M. Fixing systems found to be non-compliant in testing could
potentially cost another $10 or $20 million. In the worst case scenario this would represent nearly a third
of our annual operating budget.

A number of factors make it difficult to solve the Y2K problem. First is the rock hard, unmovable,
deadline. January 1, 2000 will be here in 477 days. And every business, every airport, every government
office (from the Senate down to the dogcatcher) must meet that deadline. And that means we are all
competing for the same technically specialized resources (people) at the same time to fight the same
deadline. Another important factor is the liability concerns of vendors and owners, which can delay their
sharing of information and developing optimum solutions together. Finally, once you fix a system you
have the added effort to keep it fixed because when you fix something else it may impact the system you
fixed first.

I am not here to assure you that we will complete our Y2K program on time despite our best efforts
with our most capable people. We will do everything humanly possible to organize, manage, and deliver
solutions for each of the 113 systems at Sea-Tac, and to have contingency plans in place for their
possible failure. In some cases we are cannibalizing our own offices, pulling some of our best people
away from other projects that badly need them. But the problem is worldwide and industry-wide, involving
airlines, airports, and air traffic control systems. What we know about other airports is that for the most
part they have started their programs later than we have, and are planning to spend fewer resources.

I will end with a few suggestions for ways Congress could help solve this crisis. First, lead by
example. The time for study is past. We urgently need to produce an emergency plan for the country
which prioritizes sectors of the economy, identifies key resources that need to be redirected from the
least important to the most important, and pass legislation which accomplishes this. To do that, you may
have to defer other urgent national issues while you devote time and resources to Y2K.

Also, consider some sort of emergency funding mechanisms to assist entities such as airports that
serve the national interest to replace diverted operating and capital funds that have been depleted by Y2K.
Some funds should also be used to make sure all the compliance data that we, and other airports, create
as we deal with this problem is immediately available to all other airports that are trying to catch up with
Y2K. That way they won't have to ''re-invent the wheel.''

From 9-year olds doing their homework on the net, to the counting of ballots that put us all in office * *
* every day technology is becoming more and more integrated with the daily lives of Americans. That is
why the Y2K problem has the potential to create so much economic, political and personal crisis. That is
also why we need you to lead the country by aggressively organizing a national Y2K program, and
providing critical resources and funding. If you start now you can do it * * * and the Port of Seattle stands
ready to help.

senate.gov
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