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 Subchapte...
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