Title
Consider a memorandum/resolution authorizing the execution of a 10-year agreement between the City of Killeen and SEGRA, LLC to provide 2 strands of dark fiber to connect 15 City facilities to the City’s network, in the amount of $1,499,000.00.
Body
DATE: April 21, 2026
TO: Kent Cagle, City Manager
FROM: Willie Resto, Executive Director of Information Technology
SUBJECT: Segra 10-Year Fiber Agreement
BACKGROUND AND FINDINGS:
The City currently operates 15 facilities that are connected through a combination of Metro Ethernet and point-to-point network solutions which are aged and need replacement. While these services provide connectivity, the existing structure is fragmented and does not offer a unified fiber infrastructure connecting all facilities directly to the City’s network core.
Segra was asked to evaluate and scope the feasibility of connecting all City facilities via a dedicated fiber network and integrating them directly into the City’s primary network environment. This approach would create a more reliable, scalable, and secure infrastructure while improving overall network performance and redundancy.
Segra is a regional fiber infrastructure provider specializing in high-capacity fiber networks, dedicated internet access, and customized enterprise connectivity solutions. With extensive fiber assets and experience supporting municipal and government clients, Segra has the capability to design, deploy, and manage a comprehensive fiber solution tailored to the City’s operational needs. Their existing footprint and technical expertise position them to efficiently implement a unified fiber network connecting all 15 facilities.
Currently, the City’s annual connectivity expenses are as follows:
• Segra Internet (Gray Fiber): $16,530 annually
• Fire Station 4: $16,686 annually
• Metro Ethernet services: $68,067 annually
• Animal Shelter: $1,448 annually
Segra proposed 10-year agreement cost - $1,499,000
• One-Time Construction Cost - $350,000
• Annual Payment - $114,900
Based on Segra’s existing infrastructure, proven service capabilities, and familiarity with the City’s network environment, Segra is uniquely positioned to provide a comprehensive fiber connectivity solution for all City facilities.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Yes, this conforms to city policy.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The construction cost, coming from CIP funds total $350,000. Each year, services will cost $114,900 for a total of $1,499,000 over the lifetime of the 10-year contract.
Is this a one-time or recurring revenue/expenditure?
This is a reoccurring cost.
Is this revenue/expenditure budgeted?
Yes. Construction funds are available in the Water and Sewer CIP Account 350-56310-900-180-924014 and the Governmental CIP Account 300-56415-900-180-926006. Recurring expenses are available in the Information Technology Internet Service Account 627-54190-180-181-000000.
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:
Staff recommends that the City Council authorize the City Manager, or designee to execute a 10-year agreement between the City of Killeen and SEGRA, LLC in the amount of $1,499,000, using the TIPS contract 220105 and that the City Manager, or designee be expressly authorized to execute any and all change orders or supplemental agreements within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Legal
Finance
Purchasing
ATTACHED SUPPORTING DOCUMENTS:
TIPS Contract
Contract Verification
Certificate of Interested Parties
Presentation