Rockport City Council Regular Meeting - February 10, 2026

The Rockport City Council held a regular meeting on Tuesday, February 10, 2026, at 5:00 PM at Rockport City Hall. Mayor Tim Jayroe presided. Councilmembers from Wards 2 (Matt Anderson), 3 (Brad Brundrett), and 4 (Andrea Hattman) were present and voted on all items. The Ward 1 seat (Stephanie Rangel) did not participate in proceedings, and Mayor Jayroe noted that two council members were absent during the primary rate study discussion. Key agenda items included the approval of a consent agenda, a utility services agreement amendment, and a major presentation on a follow-up Water and Wastewater Rate Study.

Ceremonial Matters

• Tenure Tuesday: City Manager Vanessa Shrauner recognized Reagan Lauderbrock for her five years of service with the city, currently serving as Executive Assistant.

Consent Calendar

The following items were approved unanimously by the three voting council members (Wards 2, 3, and 4):

• Approval of the January 27, 2026 City Council meeting minutes.
• Acceptance of the quarterly investment report ending December 31, 2025.
• Four resolutions authorizing the Rockport Police Department to apply for FY2027 state grants (Criminal Justice, State Crisis Intervention, Peace Officer Mental Health, and Body Worn Camera programs).
• Approval of the Rockport Police Department's 2025 Racial Profiling Report.
• Acceptance of quarterly reports from Hotel Occupancy Tax Grant recipients (Rockport Little Theatre, Rockport Cultural Arts District – Christmas in the District and Heritage Program).

Public Comments & Testimony

• Jennifer Day, Executive Director of Rockport Cultural Arts District: Expressed strong support for the Christmas in the District event, reporting that merchants saw sales increases ranging from 6% to 27%. She described the event as highly successful with strong community participation and thanked the council for its support.
• Jatine Bakta, Hotel Operator: Expressed skepticism regarding the direct economic benefit of Christmas in the District for hotels. He reported his three properties saw a decrease of 80 room nights in December 2024 compared to the prior year, contrasting with grant data referencing approximately 8,800 room nights. He suggested that future funding for such events might be better sourced from sales tax revenue or vetted by the Convention and Visitors Bureau (CVB), stating he did not believe the hotel tax return justified the spending.

Discussion Items

• Agenda Item 10: Amendment to Utility Services Agreement (Rockport Landing LLC): City Manager Shrauner presented an amendment extending the timeframe for Rockport Landing LLC to use their remaining 100 Living Unit Equivalents (LUEs) from 7 to 10 years for a fee of $300. The motion was approved by Wards 2, 3, and 4.
• Agenda Item 11: Ratification of Amendment No. 2 (DLF Two, Inc.): Assistant to the City Manager Kimberly Henry presented a late ratification for clean-up work from the prior year (hand trenching, PVC, and cement) connecting city and county facilities, totaling not more than $5,750. Funds were available in the City Hall budget. The motion was approved by Wards 2, 3, and 4.
• Agenda Item 12: Water and Wastewater Rate Study Presentation (Major Discussion): Finance Director Robbie Sorrell introduced Dan Jackson of the WillDann Group to present the revised study. The study was necessitated by a 25% drop in water consumption due to Stage 3 restrictions, higher-than-expected rate increases from the San Patricio Municipal Utility District (SPMUD), lower-than-projected growth, and increased general fund transfers.
  • Current Status: The average residential bill for 5,000 gallons is $97.33 (competitive regionally), but the city is losing revenue due to fixed costs against declining usage.
  • Plan A (Status Quo with Adjustments): Proposed an interim rate increase in March 2026 (5% water, 8% wastewater) followed by annual October increases through 2028. A $1.1 million drawdown from the utility fund balance was recommended to smooth customer impact, resulting in an average monthly increase of approximately $6 for residential customers.
  • Plan B (SPMUD Pass-Through): Proposed a separate line item pass-through rate for SPMUD’s wholesale costs plus 10% for water loss. This would stabilize the volumetric rate and automatically adjust for SPMUD changes. Overall revenue impact would be similar to Plan A.
  • Council Deliberations:
    • Councilmember Anderson (Ward 2) asked clarifying questions on the pass-through and reduced capital plan, and favored the pass-through (Plan B) for transparency.
    • Councilmember Brundrett (Ward 3) discussed the justification for general fund transfers from the utility, calling it good financial policy for transparency.
    • Councilmember Hattman (Ward 4) voiced strong opposition to the March interim increase, stating she could not support raising rates without a clear solution to the long-term water supply crisis. She argued that another increase so soon after the October 2025 adjustment was unfair to citizens, especially without a completed alternative water supply study.
    • City Manager Shrauner countered that the city is currently absorbing SPMUD’s nearly 17% rate increase against the budgeted 5%, making the interim adjustment necessary to “stop the bleeding.” She warned that inaction could lead to significantly larger hikes during possible curtailment.

Key Outcomes

• Consent Agenda, Item 10, and Item 11: Approved unanimously by the three voting council members.
• Water and Wastewater Rate Plan (Item 12): No action was taken. The presentation was received as informational. Council requested that any final decision be postponed until the two absent council members could be briefed. The item is expected to return for a potential vote at a subsequent meeting, alongside an update on the city's alternative water supply study.