San Antonio City Council Session B – SAP Financial System Phase 3 Update (April 8, 2026)

On April 8, 2026, at 2:00 PM, the San Antonio City Council held Session B, receiving an update on Phase 3 of the Connect program to modernize the city’s financial systems. The presentation was led by Chief Financial Officer Troy Kirgan and IT Director Eric, with contributions from council members. The meeting included a transition into executive session at 3:17 PM for legal and collective bargaining matters, reconvening at 4:19 PM with no action taken, and adjourning shortly after.

Consent Calendar

• There was no consent calendar on this agenda.

Public Comments & Testimony

• Three members of the public signed up to speak, but their names were not stated in the transcript, and their comments were not included in the recording.

Discussion Items

• Phase 3 SAP System Upgrade Proposal – City staff presented plans for the final phase of the SAP system modernization, with a target to go live by October 2027. The upgrade aims to improve financial operations, enable better integration with other city systems, reduce reliance on spreadsheets, and include new tools like a co-pilot AI assistant. The contract value is approximately $47.1 million, with about $1.7 million allocated for design and exploration. The selected integrator is IBM, with subcontractors including Ernst & Young (20% local staffing) and FireCat Studio. The project will involve significant organizational change, including changes to workflows and user training.
• Employee Impact and Transition – Council members raised concerns about potential job displacement for city staff, the need for robust training programs during the transition, and the importance of recognizing employees who help implement the new system. The presenters acknowledged that some roles may change and that training is critical, adding that the project includes a change management and training budget.
• Cybersecurity and Data Governance – Discussion highlighted that moving to cloud-based systems reduces the city’s internal cybersecurity exposure and that SAP’s built-in security tools will help manage user access and prevent issues of former employees retaining system access.
• Local and Small Business Participation – Council members emphasized the need to include local, small, and minority-owned businesses in the project, asking for written commitments and reporting on how these firms can be involved. The presenters noted that three local firms have been contracted so far and that they are committed to expanding local participation.
• AI Strategy and Costs – The council discussed the city’s policy on artificial intelligence and how the new system’s AI capabilities would be deployed. The cost for citywide access to AI tools was estimated at approximately $300 per employee per year, but council emphasized the need for a clear strategy and training to ensure effective use.
• Digital Twin and Resident Services – Council members inquired about digital twin technology and how the new system would improve resident-facing interfaces, such as reporting outages or accessing permits. Staff explained that the project focuses on back-end modernization but will ultimately enable better online services for residents.

Key Outcomes

• The council received the Phase 3 SAP upgrade update and will consider formal approval of the contract on April 30, 2026.
• The council will request a written plan for increasing local and small business participation in the project.
• The council will have a future discussion on the city’s AI policy and associated costs.
• The meeting moved into executive session at 3:17 PM for legal and collective bargaining discussions, reconvened at 4:19 PM, and adjourned with no action taken.