4/99 - MANAGERS: ARE YOU Y2K READY?

MANAGERS: ARE YOU Y2K READY?

BY CHARLES L. HOLDEN, CPM, nyarm

There are daily references made about "Y2K" or "The Millenium Bug" and it is not unreasonable to think that this situation will affect managers, housing companies, residents, vendors and service contractors.

The problem began in the early 1950’s when Grace Murray Hopper, the first female U.S. Navy admiral and distinguished computer scientist invented software capable of compiling the elements that translate text into 1’s and 0’s, that the computer could understand and use in everyday life. This was called Common Business Orientated language, or "COBOL", which would be the "Windows" of today. It kept permanent records and did all types of calculations automatically.

The mainframes built in the 1960’s lacked adequate space to store pertinent information on IBM or key punch cards. In order to save space, COBAL programmers shortened the dates. The computer understood that 123199 meant December 31, 1999, but like an automobile odometer, when it has reached its highest mileage, it will automatically return to its original setting. Therefore computers that are not Y2K compliant will return to 1900 because they were not programmed to interpret January 1, 2000.

There are some 30 billion computer chips embedded throughout the planet Earth and the cost to upgrade or render them Y2K compliant would be in the range of $7 billion.

On January 1, 2000, numerous computer based systems throughout the world will not be capable of processing information, thereby creating unpredictable consequences. Picture this: one second after midnight power failures, sewers, emergency vehicles, train switches, buses, hospitals all malfunctioning. Health care facilities, suppliers, vendors, banks, pharmacists, losing all their records. HVAC building systems, elevators, smoke detectors, security cameras, deliveries, etc. all being affected.

The conscientiousness of managing agents, property managers and management companies, as well as vendors, will determine how this situation will affect their residents and properties. Ultimately, these professionals will be responsible and must prepare their properties to circumvent these predictions.

Managers must:

Stay current with information via TV news, periodicals, the internet.
Inspect properties. List all mechanisms that utilize a clock or have a computer chip, i.e. boilers, burners, elevators, VCRs, software, all office computer systems.
Contact suppliers, vendors, banks, security companies, social services, payroll companies, insurance and visiting nurse services. Request, in writing, their Y2K compliance status. If they are not compliant, when will they be.
Dialogue with constituents and inform your Board of Directors where applicable. Utilize newsletters and open forum meetings to keep shareholders and tenants up-to-date since this issue is rapidly changing. Senior citizens should be encouraged to have a family member or friend with them in case there is a crisis.
Stock food, water, medications and a few dollars.

There is so much to be said on this subject and in no way is this information designed to create undue alarm but instead to instill caution. The Federal Government is well aware of the potential problems. Senators Robert Bennett (R-Utah) and Christopher Dodd (D-Conn), appointed to head the Y2K committee, recently quoted "there might be problems with parts of the country’s power grid, medical care and air traffic. What you might do is prepare for a good storm or hurricane."

So managers….do your dance!