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File #: RS-25-163    Version: 1 Name: Interlocal Agreement with City of Fort Worth to contract with J.P. Morgan Chase
Type: Resolution Status: Resolutions
File created: 9/22/2025 In control: City Council
On agenda: 10/21/2025 Final action:
Title: Consider a memorandum/resolution authorizing the City Manager to enter into an Interlocal Agreement with the City of Fort Worth to allow the City of Killeen to participate in the Commercial Card Agreement with JP Morgan Chase Bank N.A.
Sponsors: Finance Department, City Attorney Department
Attachments: 1. Interlocal Agreement - City of Fort Worth, 2. J.P. Morgan Chase Commercial Card Agreement, 3. Presentation
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Title

 

Consider a memorandum/resolution authorizing the City Manager to enter into an Interlocal Agreement with the City of Fort Worth to allow the City of Killeen to participate in the Commercial Card Agreement with JP Morgan Chase Bank N.A.

 

Body

 

DATE:                     October 21, 2025                     

 

TO:                     Kent Cagle, City Manager                     

 

FROM:                     Judith Tangalin, Executive Director of Finance                     

 

SUBJECT:                     Interlocal Agreement with the City of Forth Worth for participation in the Commercial Card Agreement with JP Morgan Chase Bank N.A.                     

 

BACKGROUND AND FINDINGS:

 

Since 2011, the City has used Citibank to provide commercial card services for procurement and travel needs through the State of Texas cooperative contract. This program has streamlined small-dollar purchasing, emergency purchases, and training and travel expenses.

The State’s contract with Citibank ended on September 1, 2025, and all existing Citibank cards will be terminated by February 2026 as the State transitions to U.S. Bank. To avoid disruption to City operations, Finance Department staff reviewed available options for a new commercial card provider and determined that J.P. Morgan Chase offers the best fit.

J.P. Morgan is already the City’s depository bank, so extending this relationship to procurement and travel cards will simplify oversight and reduce administrative complexity. In addition, J.P. Morgan’s program supports virtual card payments within the AP (accounts-payable) process. Using virtual cards will speed the AP workflow, reduce paper check issuance, strengthen payment security, and increase the total annual transaction volume, therefor potentially increasing the annual rebate amount generated by the program.

The City may contract with J.P. Morgan by entering into an Interlocal Cooperative Purchasing Agreement with the City of Fort Worth, which allows the City to adopt the same terms and conditions without issuing a separate competitive bid. This authority is provided by Chapter 791 of the Texas Government Code and Subchapter F, Chapter 271 of the Texas Local Government Code, which permit local governments to participate in cooperative purchasing agreements

 

THE ALTERNATIVES CONSIDERED:

 

1. Contract with U.S. Bank through the State of Texas contract for the City’s commercial card program.

2. Enter into an interlocal agreement with the City of Fort Worth and contract with J.P. Morgan Chase for the City’s commercial card program.

 

Which alternative is recommended? Why?

 

Option #2 is recommended because J.P. Morgan is the City’s depository bank, allowing the commercial card program to integrate with existing banking services. J.P. Morgan Chase’s commercial card program supports virtual card payments, streamlining the accounts-payable process, reducing paper checks, and enhancing security. Consolidating procurement, travel, and virtual card transactions under one provider also increases annual transaction volume, which increases the City’s rebate revenue while ensuring a smooth transition before the February 2026 deadline.

 

CONFORMITY TO CITY POLICY:

 

Yes, the interlocal agreement between the City of Killeen and City of Fort Worth conforms to City Policy and Texas Local Government Code, Chapter 791 and Chapter 271 Subchapter F.

 

FINANCIAL IMPACT:

 

What is the amount of the revenue/expenditure in the current fiscal year? For future years?

 

There is no cost to the City to enter into an interlocal agreement with the City of Fort Worth to participate in its commercial card program with J.P. Morgan Chase. The program provides annual revenue through transaction rebates. Based on the City’s average annual credit-card spending and a 29-day payment cycle, the estimated annual rebate is approximately $34,000, subject to change with variations in total annual spending and payment turnaround.

 

Is this a one-time or recurring revenue/expenditure?

 

N/A

 

Is this revenue/expenditure budgeted?

 

N/A

 

If not, where will the money come from?

 

N/A

 

Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?

 

N/A

 

RECOMMENDATION:

 

City Council to authorize the City Manager to to enter into an Interlocal Agreement with the City of Fort Worth to allow the City of Killeen to participate in the Commercial Card Agreement with JP Morgan Chase Bank.N.A.

 

DEPARTMENTAL CLEARANCES:

 

Finance

Legal

 

ATTACHED SUPPORTING DOCUMENTS:

 

Interlocal Agreement - City of Fort Worth

J.P. Morgan Chase Commercial Card Agreement

Presentation