CITY OF LAREDO
                             CITY COUNCIL MEETING

                            CITY COUNCIL CHAMBERS
                             1110 HOUSTON STREET
                                LAREDO, TEXAS
                                  5:30 P.M.

                                   MINUTES

       M-97-R-18                                             MAY 27, 1997

   I.  CALL TO ORDER

       With a quorum present Mayor Saul N. Ramirez, Jr. called the meeting to
       order.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Saul N. Ramirez, Jr. led in the Pledge of Allegiance.

 III.  ROLL CALL
       IN ATTENDANCE:
       SAUL N. RAMIREZ, JR., MAYOR
       JOSE R. PEREZ,        COUNCILMEMBER, DISTRICT I
       LOUIS H. BRUNI,              "     , DISTRICT II
       ALFONSO I. "PONCHO" CASSO,   "     , DISTRICT III
       CECILIA MAY MORENO,          "     , DISTRICT IV
       ELISEO VALDEZ,               "     , DISTRICT V
       JOE A. GUERRA,               "     , DISTRICT VI
       MARIO GEORGE ALVARADO,       "     , DISTRICT VII
       CONSUELO MONTALVO,           "     , DISTRICT VIII
       GUSTAVO GUEVARA, JR., CITY SECRETARY
       FLORENCIO PENA,       CITY MANAGER
       JAIME L. FLORES,      CITY ATTORNEY

  IV.  FINAL READINGS

       Motion to waive the final reading of ordinances #97-O-108, #97-O-109,
       #97-O-110, #97-O-111, #97-O-112, #97-O-113, #97-O-114, #97-O-115,
       #97-O-115, #97-O-116, #97-O-117, and #97-O-118.

       Moved : Cm. Perez
       Second: Cm. Valdez
       For:  6                            Against:  0         Abstain:  0
       (Cm. Casso and Cw. Moreno were not present.)

       2. 97-O-108  Ordinance authorizing the City Manager to execute all
                    necessary documents to effectively convey fee simple
                    title to Mr. Gilbert Narvaez and wife Diana G.  Narvaez
                    for the sale at fair market value of "The Surface Only"
                    of certain property described as being a tract of land
                    containing 0.17715 of an acre (7,716.73 square feet) more
                    or less, being out of the southerly 138.89' x 55.56' of
                    Lot 4-A, Block 1980 formerly known as the south half
                    section of the 2000 block of S.  Smith Avenue between
                    Chestnut and Vicente Streets situated in the Eastern
                    Division, City of Laredo, Webb County, Texas, and
                    providing for effective date.   (City Council)

                    Motion to approve Ordinance #97-O-108.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

       3. 97-O-109  Ordinance closing as a public easement those sections of:
                    A.  South Buena Vista between Chacota and Tinaja Streets,
                        also known as the 2600 block of South Buena Vista
                        Avenue;
                    B.  Chacota Street between South Buena Vista and Tapeyste
                        Avenues, also; known as the 1800 block of Chacota
                        Street, situated in the Eastern Division, and
                        providing for an effective date.  (City Council)

                    Motion to approve Ordinance #97-O-109.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

       4. 97-O-110  Ordinance authorizing the City Manager to execute all
                    necessary documents to effectively convey title to a
                    0.2253 acre tract of land and a 0.2343 acre tract of land
                    to Gateway Centennial Development Co.  Inc., and
                    Northtown Development Co.  Inc., in accordance with the
                    terms of the agreement approved by Resolution No.91-R-067
                    dated August 14, 1991.  Said properties were to be
                    reconveyed to the grantors in the event that the City of
                    Laredo was unable to meet the mutually agreed-upon
                    deadline date for acquisition of the necessary right-of-
                    way for the project. Said tracts being situated in North
                    Creek Plaza Subdivision, Webb County, Texas, and
                    providing for effective date. (As Amended) (Joe A.Guerra)

                    Motion to approve Ordinance #97-O-110.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

       5. 97-O-111  Ordinance authorizing the City Manager to execute all
                    necessary documents to effectively convey the "Surface
                    Only" of an approximately 0.556 acre tract of land,
                    (approximately 24,224 square feet) out of a 1.0 acre
                    tract of land out of Block 1, Don Rey of Texas, Inc., as
                    per plat recorded in Volume 5, page 82 of the plat
                    records of Webb County, Texas, with improvements located
                    at 202 West Del Mar Boulevard (formerly the Dairy Queen
                    Restaurant), to Gateway Centennial Development Company,
                    Inc., and Northtown Development Company, Inc., as
                    described in "Exhibits A" and providing for an effective
                    date.  A total of four proposals were received for this
                    purchase. Said property being sold to the highest bidder
                    as accepted by the Laredo City Council pursuant to public
                    sale of the property on May 19, 1997. (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-111.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

       6. 97-O-112  Ordinance adopting a annual budget for the new fund,
                    Friends of the Library Trust Fund for a donation by the
                    Friends of the Library, Laredo, Texas, Inc. in the amount
                    of $125,000.00 to be used for enhancements for the New
                    Main Library.   (City Council)

                    Motion to approve Ordinance #97-O-112.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

       7. 97-O-113  Ordinance amending the City of Laredo FY 1996-97 Annual
                    Budget to increase the revenues by an amount of
                    $1,890,990.00 received from Federal Aviation
                    Administration Grant Offer No. 3-48-0136-19-97 and
                    from an amendment to Grant Offer No. 3-48-0136-18-96 and
                    appropriating $2,111,101.00 comprising of the
                    $1,890,990.00 in grants received plus the local match of
                    $211,111.00 to the Airport Capital Outlay/Improvements
                    other than Buildings account for the purpose of
                    constructing the access road and parking lot to the new
                    airport passenger terminal.  The local match is available
                    in the Airport new passenger terminal reserve account
                    line item.  (Louis H. Bruni)

                    Motion to approve Ordinance #97-O-113.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

                    Motion instructing staff to bring back to council a
                    status report at the next meeting on naming the entrance
                    to the new airport terminal 'Gust'.

                    Moved : Cm. Guerra
                    Second: Cm. Alvarado
                    For:  6               Against:  0         Abstain:  0

       8. 97-O-114  Ordinance amending Ordinance No. 92-O-021 authorizing the
                    Health Department to increase the fee from $5.00 to
                    $10.00 per person who are not health department patients
                    for phlebotomy services at the Health Department
                    Laboratory; and providing for publication and effective
                    date.  (City Council)

                    Motion to approve Ordinance #97-O-114.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

       9. 97-O-115  Ordinance approving an amendment to the contract with the
                    Texas Department of Health for a budget revision for
                    additional funds for a total of $1,880.00 and extending
                    the terms of the Border Area Survey of the City of Laredo
                    Health Department for the period beginning September 1,
                    1996 through July 31, 1997.  (City Council)

                    Motion to approve Ordinance #97-O-115.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

      10. 97-O-116  Ordinance amending Ordinance No. 94-O-208 with a revised
                    fee schedule and sliding fee scale for the Child Dental
                    Health Clinic of the City of Laredo Health Department;
                    and providing for effective date and publication.
                    (City Council)

                    Motion to approve Ordinance #97-O-116.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

      11. 97-O-117  Ordinance amending Ordinance No. 90-O-179 to revise the
                    fee schedule for clinical services for the primary Health
                    Care Services (La Familia) Program and the Adult
                    Health/Chronic Disease Prevention (Buena Vida) Program of
                    the City of Laredo Health Department, providing for
                    effective date and publication.  (City Council)

                    Motion to approve Ordinance #97-O-117.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

      12. 97-O-118  Ordinance to amend the City of Laredo's 1996-97 Annual
                    Budget by increasing the Drainage Fund revenues and
                    expenditures by $225,172.00 and authorizing the City
                    Manager to implement said budget.  The increase of
                    $225,172.00 in revenues and expenditures in the Drainage
                    Fund is needed to complete funding for the construction
                    contract of the Santa Maria Avenue Drainage Improvements
                    between Del Mar Boulevard and Markley Lane.
                    (Mario G. Alvarado)

                    Motion to approve Ordinance #97-O-118.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0


   V.  RESOLUTIONS

      13. 97-R-056  Adopting the list of capital improvement projects to be
                    submitted to the South Texas Development Council (STDC)
                    for incorporation in the Overall Economic Development
                    Program Plan (OEDP) to be provided to the U.S. Depart-
                    ment of Commerce, Economic Development Administration
                    (EDA) for potential funding consideration and authorizing
                    the City Manager to submit a follow-up grant application
                    as may be directed by EDA.  Projects named include:
                    1.  The Airport Redevelopment Project
                    2.  El Portal Riverfront Development Project
                    3.  The Extension of a 16" Diameter main on F.M.  1472
                        (Mines Road) and Supporting 5 Million Gallon Water
                        Storage Tank and Booster Station Project
                    4.  The Extension of 16" Waterline from Larga Vista to
                        the Fire Fighting Training Facility Project.

                    Motion to approve Resolution #97-R-056.

                    Moved : Cm. Perez
                    Second: Cm. Valdez
                    For:  6               Against:  0         Abstain:  0

      14. 97-R-057  Accepting the donation of nine parcels of land as utility
                    easements for construction of the San Salvador/
                    Pine/Chestnut drainage improvements project said parcels
                    being located in the Eastern Division of the City of
                    Laredo, Webb County, Texas and said nine parcels of land
                    being further described as:

                    Parcel 1 - A 1,951.14 square feet tract of land, more or
                    less, being out of and a part of the South 92.89 feet of
                    Lot Number 6, Block Number 1919, Eastern Division, as per
                    the City of Laredo original land grant, recorded in
                    Volume 7, Page 15, plat records of Webb County, Texas;

                    Parcel 2 - A 4,106.05 square feet tract of land, more or
                    less, being out of and a part of Lot Number 7, Block
                    Number 1919, Eastern Division, as per the City of Laredo
                    original land grant, recorded in Volume 7, Page 15, plat
                    records of Webb County, Texas;

                    Parcel 3 - A 468.35 square feet tract of land, more or
                    less, being out of and a part of the North 46 feet of Lot
                    Number 6, Block Number 1919, Eastern Division, as per the
                    City of Laredo original land grant, recorded in Volume 7,
                    Page 15 plat records of Webb County, Texas;

                    Parcel 4 - A 288.52. square feet tract of land, more or
                    less, being out of and a part of Lot Number 3, Block
                    Number 1919, Eastern Division, as per the City of Laredo
                    original land grant, recorded in Volume 7, Page 15, plat
                    records of Webb County, Texas;

                    Parcel 5 - A 3,820.95 square feet tract of land, more or
                    less, being out of and a part of the East 2/3 of Lot
                    Number 2, Block Number 1919, Eastern Division, as per the
                    City of Laredo original land grant, recorded in Volume 7,
                    Page 15, plat records of Webb County, Texas;

                    Parcel 6 - A 3,194.63.14 square feet tract of land, more
                    or less, being out of and a part of Lot Number 1 and the
                    West 1/3 of Lot Number 2, Block Number 1919, Eastern
                    Division, as per the City of Laredo original land grant,
                    recorded in Volume 7, Page 15, plat records of Webb
                    County, Texas;

                    Parcel 7 - A 730.97 square feet tract of land, more or
                    less, being out of and a part of Lot Number 12, Block
                    Number 1920, Eastern Division, as per the City of Laredo
                    original land grant, recorded in Volume 7, Page 15, plat
                    records of Webb County, Texas;

                    Parcel 8 - A 618.67 square feet tract of land, more or
                    less, being out of and a part of the West 46.29 feet of
                    Lot Number 6, Block Number 1887, Eastern Division, as per
                    the City of Laredo original land grant, recorded in
                    Volume 7, Page 15, plat records of Webb County, Texas;

                    Parcel 9 - A 974.48 square feet tract of land, more or
                    less, being out of and a part of a property comprised of
                    Lot Numbers 4, 5, and 6, Block Number 1886-A, Eastern
                    Division, as per the City of Laredo original land grant,
                    recorded in Volume 7, Page 14, plat records of Webb
                    County, Texas; further described by metes and bounds.

                    Erasmo Villarreal, Assistant Community Development
                    Director, stated that they received a letter from
                    Sigifredo Perez, III attorney for Mrs. Ardith A. Epstein
                    advising them that she was in Florida and assured him
                    that she will sign the necessary easement agreement upon
                    her arrival.

                    Motion to approve Resolution #97-R-057 subject to the
                    signing of the easement agreement by Mrs. Ardith A.
                    Epstein.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  6               Against:  0         Abstain:  0


  VI.  MOTIONS

      15. Authorization to advertise for Request for Proposals (RFPs) for
          consulting services to prepare an engineering preliminary survey
          and a survey of final improvements for 50 single family dwellings
          of affordable housing for low and moderate income applicants for
          Los Obispos Affordable Housing Project Phase I, located on Block 2,
          Lots 1-50 at Los Obispos Subdivision, Unit V.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cw. Montalvo
          For:  6                         Against:  0         Abstain:  0

      16. Authorization the line item transfer of Community Development Block
          Grant Funds from the Azteca Neighborhood Wastewater Improvements
          Project fund balance of $54,966.18 to the Santo Nino Wastewater
          Improvement Project for the construction of a 12" wastewater
          trunkline of approximately 3,500 linear feet and authorizing the
          City Manager to advertise the Request for Proposals from qualified
          engineers for the design of this sewer line.  This project will
          design a 12" wastewater trunk line that will help relieve the
          existing 10" wastewater line on Santa Clara Street that carries
          wastewater from a wide area in the Santo Nino and Las Americas
          neighborhoods.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cw. Montalvo
          For:  6                         Against:  0         Abstain:  0

      17. Award of a construction contract to the SOLE BIDDER, Ramex
          Construction Company, Houston, Texas, in the amount of $908,136.00
          for the San Salvador/Pine/Chestnut Drainage Improvements.  Funding
          is available from Community Development Department monies.
          Contract time is 130 working days.  This item was tabled at the
          5/19/97 City Council meeting as a result of easement acquisition
          concerns.  These have been taken care of and the project is ready
          to move forward.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cw. Montalvo
          For:  6                         Against:  0         Abstain:  0
      18. Award of contract to the LOW BIDDER MEETING SPECIFICATIONS, Simon
          Ladder Towers, Inc., Epharate, PA., in the amount of $494,053.00,
          for the purchase of an aerial fire truck.  This truck will be a
          replacement for a 1974 model aerial truck.  The truck will be
          equipped with a 100 foot aerial apparatus, a 2,000 gpm (gallons per
          minute) fire pump, and a 300 gallon water tank.  The unit will be
          ready for delivery within thirty to sixty days.  Funding is
          available from contractual obligation bond monies.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  6                         Against:  0         Abstain:  0

      19. Approval of change order no. 1, an increase of $11,027.08 to the
          construction contract with Cutler Repaving Inc. to add per City
          Council Action on May 19, 1997 the 1300 and 1400 blocks of Hibiscus
          Lane and the 1300 and 1400 Blocks of Wildrose Lane to the
          construction contract with Cutler Repaving, Inc., Lawrence, Kansas
          for the 1996-1997 Street Recycling Project (133.5 Blocks).  New
          total of blocks is 137.5 Blocks.  Funding is available in the
          Capital Improvement Fund Street Materials.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  6                         Against:  0         Abstain:  0

          Cm. Casso and Cw. Moreno joined the meeting, 5:40 p.m.


 VII.  CITY MANAGER'S REPORT

      20. Request for Executive Session pursuant to Section 551.071 of the
          Texas Government Code and consultation with Attorney to discuss the
          status and possible action to be taken regarding pending lawsuits
          for the City of Laredo:  a) Cause No. 96-CVQ01424-D3, In Re: Grand
          Jury Proceeding Re: Gustavo Guevara and the City of Laredo, in the
          341st District Court of Webb County, Texas, b) City of Laredo v.
          Jose Rubio, Jr., et.al.  Cause Number 96-CVQ-01548-D2, in the 111th
          District Court of Webb County, Texas, being handled by the Law Firm
          of Hunt, Hermansen, McKibben, and English.

          Motion to go into executive session.

          Moved : Cm. Valdez
          Second: Cm. Bruni
          For:  8                         Against:  0         Abstain:  0

          Mayor Ramirez and Cw. Moreno did not participate in the executive
          session proceedings.

          After Executive Session Mayor Protem Perez announced that no formal
          action was taken.

          Motion to retain Mr. McKibben as the attorney of record and to
          file a nonsuit.

          Moved : Cm. Alvarado
          Second: Cm. Bruni
          For:  6                       Against:  0         Abstain:  0
          Cm. Perez was chairing the meeting and Cw. Moreno did not vote.

      21. Request for Executive Session to be conducted pursuant to Section
          551.071 of the Texas Government Code to discuss possible litigation
          regarding a report prepared by Keith Lyons and Associates, Inc.,
          regarding the Fleet Management Division.

          Motion to go into executive session.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  8                         Against:  0         Abstain:  0

          After Executive Session Mayor Ramirez announced that no formal
          action was taken.

          Mayor Ramirez instructed staff to proceed with the investigation.

      22. Presentation and possible action regarding the administrative
          investigation concerning the recovery of stolen vehicles from
          Nuevo Laredo on April 16, 1997.  Briefing by Risk Manager, Gilbert
          Sanchez and Internal Affairs Investigator Sergio Moreno on the
          findings of the administrative investigation of April 16, 1997,
          stolen vehicle operation.

          Gilbert Sanchez, Risk Manager, provided a summary of the procedures
          they used to accumulate the information that will be presented.
          Essentially Investigator Moreno and him have been conducting
          interviews and documentation that has been available to them.  The
          report is a synopsis of some of the statements that he has
          condensed in summary and some of the information that Orozco
          Wrecker and Mora Wrecker have provided along with some of the
          statements from Comandante Muniz and other officials from Nuevo
          Laredo.

          He said that over the last couple of weeks they conducted the
          interviews, accumulated the data, summarized it, and also looked at
          what the ordinance stipulates.  He added that the ordinance is very
          specific regarding the rotation tow list.  There is no discretion
          given to the Police Chief as to what he can and cannot do.  Second,
          that if we did engage in this type of agreement for the recovery of
          vehicles it would be contrary to what the ordinance says.  If there
          was a practice to recover vehicles from across, our practices are
          already established and the auto task force basically has some
          procedures in place.  They do know for a fact that we deviated from
          those standard practices.

          Police Investigator Sergio Moreno with the Internal Affairs
          Division stated that he worked in conjunction with Mr. Sanchez in
          the investigation.  His report mirrors Mr. Sanchez's report and as
          Mr. Sanchez said, the Police Chief was given no lead way except in
          an emergency situation.  As far as the practice for recovering
          stolen vehicles from Mexico, it is only a practice there is no
          standard operating procedure.

          Cm. Alvarado question in reference to an article in Nuevo Laredo
          newspaper where the U.S. Consulate, Mr. Parnell indicated that
          there was a bi-national agreement in place?

          Florencio Pea, City Manager, stated that Isiah Parnell from the
          Consulates Office will provide him with a copy of the treaty with
          Mexico, on procedures for returning stolen vehicles.  He added that
          Mr. Parnell had summarized the procedures to him.  Mr. Pea
          recommended to use the treaty as a method to set procedures for use
          by city staff as interim until more permanent procedures are
          established.

          Cm. Casso stated that council needs time to read the report
          presented to them that evening with the possibility of bringing the
          item back.

      23. Consideration and action instructing the City Manager to proceed
          with the selection of the Chief of Police.

          Motion to bring back for June 2nd.

          Moved : Cm. Alvarado
          Second: Cm. Guerra
          For:  4                         Against:  5         Abstain:  0

          Cm. Bruni                       Cm. Perez
          Cm. Casso                       Cw. Moreno
          Cm. Guerra                      Cm. Valdez
          Cm. Alvarado                    Cw. Montalvo
                                          Mayor Ramirez

      24. Amending the HOME Investment Partnerships Program Policy and
          Procedures Manual as it pertains to Downpayment Assistance Program.
          The following are the proposed changes:
          a) increase the loan amount of $2,500.00, up to a maximum of
             $3,000.00 for households with incomes of up to 80% of housing
             area median family income and $5,000.00 for households with
             incomes equal to or below 60% of housing area median family
             income;
          b) eliminate the 50% match required from the applicant;
          c) decrease the 5% interest on the principal loan amount to 0%, d)
          define the deferred payment period to 3 years;
          e) recommend that assisted homebuyers make a minimum investment of
             $1,000.00; and
          f) recommend that assisted homebuyers enroll in a homebuyers course
             and that no more than $50.00 be used from downpayment assistance
             to pay for such course.

          After the deferment period, the eligible borrower(s) will start
          making payments on the Downpayment Assistance Loan as per a
          predetermined schedule based on the loan amount. There will not be
          any prepayment penalties. The repayment period may not exceed five
          years. A second Lien Deed of Trust with Vendor's Lien and Real
          Estate Lien Note will be recorded against the property being
          purchased. The property should remain affordable for a period of
          five years. This program is Citywide and may be used towards the
          purchase of an existing or a newly constructed home. This item was
          tabled at the May 5, 1997, City Council Meeting, as a result of
          concerns raised by members of the building community. Staff has met
          with members of the Laredo Builders Association. The above is a
          blending of staff's original proposals as well as those suggestions
          from the building community.

          Erasmo Villarreal of Community Development made the presentation
          before City Council.

          Motion to approve with the deletion of "recommend that" in item
          (e).

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  8                         Against:  0         Abstain:  0

          Motion to change the pay back period from 5 to 10 years for those
          people who borrowed the $8,000.

          Moved : Cw. Moreno
          Second: Cm. Bruni
          For:  8                         Against:  0         Abstain:  0

          Cm. Perez stated that during the budget retreats last year he made
          a motion in reference to this issue, that some of these homes were
          to built at Los Obispos and that they would give the residents in
          the flood plain the opportunity.  They did get a report from Mr.
          Villarreal after nine months had informed him that because of the
          rules that are in place right now, that these people would not
          qualify and wanted council go in another route.

          Mr. Villarreal stated that staff researched the situation as to
          whether these individuals were property owners right now (around
          the Chacon Creek area) and were qualified as first time homebuyer
          under the program right now, and because they are property owners
          right now and they own their own houses, the rules and research
          shows it is something that is not feasible.  Another area that they
          also looked was if there is a public need immediately for using
          block monies to do acquisition and relocation and see if it was
          feasible to do and they cannot find out anything currently that
          they can tailor and make it safe for the area.

          Mayor Ramirez asked if they can get FEMA, because it is a flood
          plain area and is prone to damage.  He added that FEMA has reworked
          their guidelines to make it more accessible to flooding victims
          and asked that staff look into this.

          Motion to instruct staff to research into what FEMA rates in term
          of providing assistance; that the research included on the issue
          that individuals do not qualify because they are not first time
          homebuyers because they are not leaving their homes by choice in a
          way, there is a problem in that area; and that it also include home
          many families are out there.  That this issues be evaluated and
          that all options be researched to see if it is something feasible
          and just as another possible alternative.

          Moved : Cm. Perez
          Second: Cw. Moreno
          For:  8                         Against:  0         Abstain:  0

          Motion to adopt as amended.

          Moved : Cm. Perez
          Second: Cw. Moreno
          For:  8                         Against:  0         Abstain:  0

VIII.  COMMUNICATIONS

          None.

  IX.  CITY COUNCIL DISCUSSION AND PRESENTATION

      25. Requests by Mayor and City Councilmembers for discussion and
          presentation.

    A.  Requests by Councilmember Louis H. Bruni

       1. Requesting a status report on the external audit which has been
          conducted at the Fleet Maintenance Division with possible Executive
          Session pursuant to Section 551.071 of the Texas Government Code to
          discuss possible litigation, with possible action.

          This item was handled with item #21.

       2. Requesting a legal opinion from the City Attorney concerning
          Ordinance No. 91-O-100, as well as a written response from the
          Texas Natural Resource Conservation Commission pertaining to Wet
          Water Rights, with possible action.

          Cm. Bruni asked the City Attorney if he had reviewed the ordinance.

          Jaime Flores, City Attorney, stated he did not review the
          ordinance, that there is a legal opinion on that ordinance, however
          he did not know if he was requesting a review on the opinion of
          that legal opinion.

          Cm. Bruni answered that is what he would like, a legal opinion.
          He added that he has some concerns about how TNRCC talks about what
          they call "Wet Water" and had asked the Utilities Director to send
          them a letter, which he did, but before he sent it council passed
          an ordinances whereby we do not any longer accept water rights in
          lieu of CIP's.  We had been accepting water rights, and converting
          them to municipal water rights and his concern was that if these
          water rights were dormant when they changed them into municipal
          water rights then have we given up "what the TNRCC refers to as Wet
          Water".  When we put these water rights and developer come and
          apply these water rights to their subdivisions, we couldn't
          immediately drop them at the Rio Grande, so he asked the Utilities
          Director to get a written statement from TNRCC.

          Fernando Roman, Utilities Director, stated that his knowledge on
          this from TNRCC staff is that whenever you buy water that is not of
          a municipal base, you have to convert it from agricultural or
          industrial to municipal being that it is active or non-active.
          That it immediately gets activated by being placed on what they
          called a municipal pool which is a reserves of one to two years of
          water in the reservoirs that is exclusively dedicated for cities.
          That pool means that if a drought has persisted for many years, the
          agricultural would suffer first and approximately 9,000 acre feet
          of water would have been denied to them, but the cities would have
          never been denied that.  We are in the last in the list of the
          priorities to cut the water.   When the water rights are converted
          to municipal, it was explained to him that they become active
          immediately and are converted to our main certificate number which
          starts at 32,000 a fraction and is not close to 40,000.  He has
          asked for a written clarification on this issue from TNRCC.

          Cm. Bruni stated his concern is that there is "x" amount of
          municipal water rights out there for the lower Rio Grande (from
          Amistad to Falcon), there is "x" amount of acre feet that are for
          municipal use that are being impounded in Amistad, his concern is
          that the water rights that are municipal or that are prescribed,
          there is more water rights out there than there is water that's
          being reserved for municipal use.  He said water rights are just a
          piece of paper saying that you can draw "x" amount of gallons from
          the Rio Grande, the bottom line is that those "x" amount of gallons
          are not in the reserve of the Rio Grande, those water rights are
          useless.  He wants to make sure that we do have enough water for
          municipal use and wants that council go on the direction that he
          has been advocating which is to find a secondary source of water.
          He concluded by saying that there are many studies going on and
          that we look into a secondary source of water which would be the
          continued drilling of aquifers and not only depend on one sole
          source of water.
          
          He wants a written report from the Utilities Director as to whether
          the water rights are over prescribed and how much water rights we
          do have and if indeed they are Wet Water Rights.  He wants a list
          of all the reports, the engineering studies, all the studies in
          process, the mapping of the aquifers, the secondary effluent
          program and where they will be storing water.  He wants the City
          Attorney to clarify the language on the ordinance and if there was
          violation of any ordinance by accepting these water rights or to
          the contracts with different developers.

       3. Discussion and possible action concerning approaching the
          developers of North Heights Subdivision and request they consider
          opening Willow Creek Avenue as an additional access point from
          North Heights Subdivision.

          Cm. Bruni stated that there were concerns on the blockage of
          emergency vehicles due to the fact that there exists only one
          entrance and exit.  He asked staff to talk to the developers and
          residents to assure them that at no time will that one entrance
          ever impede the entry of emergency vehicles into that subdivision.
          He instructed staff to talk to the developers and see if they can
          get another outlet or street that would hit directly Hwy 59.

       4. Discussion and possible action concerning the addition of the 2300
          to the 2700 Blocks of Plum Street to the Street Recycling Program.

          Motion to include them on next year's recycling program.

          Moved : Cm. Bruni
          Second: Cm. Guerra
          For:  8                         Against:  0         Abstain:  0

       5. Discussion and possible action concerning reducing the speed limit
          on the 2300 to the 2700 Blocks of Plum Street from 30 mph to 20
          mph.

          Cm. Bruni requested that discussion on this item be deferred until
          action is taken on the speed bumps.

       6. Discussion and possible action concerning the addition of the 2300
          to the 2700 Blocks of Plum Street to the "Street Hump Pilot
          Project."

          Motion to instruct staff to proceed with instructing the Traffic
          Department to include the 2300 to 2700 Blocks of Plum to the
          "Street Hump Pilot Project".

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                         Against:  0         Abstain:  0

    B.  Requests by Councilmember Alfonso I. "Poncho" Casso

       1. Discussion and possible action regarding the hiring of a consultant
          for the privatization of the city's Utilities Department.

          Fernando Roman, Utilities Director, stated that they are looking at
          privatization objectives, how real are the proposed annual savings,
          the improvement of personnel, etc.  There were questions to resolve
          such as the reliability of the firm.  He proposed to visit existing
          projects and finalize industry studies.  If they decide to proceed,
          then he would recommend to invest on expert based requests for
          proposals and pre-qualified the bidders.  On the visits he would
          witness worksites; learn from elected officials; discuss with city
          staff; hear customer opinions; and discuss the mechanics with
          administrative staff.  He concluded by stated that the next step is
          to sit down with staff to work schedule in order to make the visits
          to different communities and find out who is going.

    C.  Requests by Councilmember Joe A. Guerra

       1. Discussion and possible concerning the placement of the following
          list of streets:
          1.  Entire length of Widener Lane
          2.  Winchester from Boise to Eaton
          3.  Nye from Fenwick to Boise
          4.  Boise from Plymouth to Widener into next years Street Recycling
              Program.

          Motion to include these streets on next year's recycling program.

          Moved : Cm. Guerra
          Second: Cm. Perez
          For:  8                         Against:  0         Abstain:  0


   X.  PUBLIC HEARINGS

      26. Public hearing concerning the application by Joaquin and Dolores
          Vasquez, amending the zoning ordinance (Map) of the City of Laredo
          by rezoning the west 46.3 feet of Lot 3, Block 1059, Eastern
          Division, located at 1915 Norton Street from R-3 (Mixed Residential
          District) to B-3 (Community Business District).  The Planning and
          Zoning Commission recommends approval of the zone change.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the zoning ordinance (Map) of the City of Laredo
          by rezoning the west 46.3 feet of Lot 3, Block 1059, Eastern
          Division, located at 1915 Norton Street from R-3 (Mixed Residential
          District) to B-3 (Community Business District); providing for
          publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cw. Montalvo
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Perez

      27. Public hearing concerning the application by Veronica Flores,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning all of Block 1777, Eastern Division, located north of Diaz
          Street between New York Avenue and Canada Avenue, from R-2 (Multi-
          Family Residential District) to R-3 (Mixed Residential District).
          The Planning Zoning Commission recommends approval of the zone
          change.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning all of Block 1777, Eastern Division, located north of
          Diaz Street between New York Avenue and Canada Avenue, from R-2
          (Multi-Family Residential District) to R-3 (Mixed Residential
          District); providing for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0
          (Cm. Casso was not present to vote.)

          Ron Whitehawk representing Mrs. Veronica Flores spoke in favor.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Perez
          Second: Cm. Valdez
          For:  7                       Against:  0         Abstain:  0
          Cm. Casso was not present.

          Ordinance Introduction: Cm. Perez

      28. Public hearing concerning the application by Dolores Hernandez,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 8, Block 2031, Eastern Division, located at 3220 Santa
          Barbara Street from R-3 (Mixed Residential District) to B-1

          (Limited Business District).  The Planning and Zoning Commission
          recommends denial of the zone change.  This is an appeal from the
          Planning and Zoning Commission.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning Lot 8, Block 2031, Eastern Division, located at 3220
          Santa Barbara Street from R-3 (Mixed Residential District) to B-1
          (Limited Business District); providing for publication and
          effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cw. Moreno
          For:  7                       Against:  0         Abstain:  0

          Mrs. Dolores Hernandez, property owner, was present to answer any
          questions.

          Motion to close the public hearing and override Planning and Zoning
          Commission and approve the zone change request.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  6                         Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Perez

      29. Public hearing concerning the application by Ernesto J. Cardenas,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 7, and part of Lot 6, Lot 8 and part of Lot 5, Block
          1705, Eastern Division, located at 2820 Chihuahua Street from R-3
          (Mixed Residential District) to B-1 (Limited Business District).
          The Planning and Zoning Commission recommends denial of the zone
          change.  This is an appeal from the Planning and Zoning Commission.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning Lot 7, and part of Lot 6, Lot 8 and part of Lot 5,
          Block 1705, Eastern Division, located at 2820 Chihuahua Street from
          R-3 (Mixed Residential District) to B-1 (Limited Business
          District); providing for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain: 0

          Ron Whitehawk representing Mr. Ernesto Cardenas property owner
          spoke in favor of having a Mom & Pop type of grocery store to keep
          himself busy as a neighborhood store.  He intends to live in the
          same property.

          Mr. Ernesto Cardenas, property owner, spoke in favor of being
          granted the zone change to place his grocery store.

          Ernesto Cardenas, Jr. spoke in favor of the zone change request.

          Mrs. Elvia Tays back property owner spoke in favor of granting Mr.
          Cardenas the zone change.

          Ricardo Tays property owner on Rosario spoke in favor.

          Rosa Salinas, on behalf of her mother who lives at 2903 Chihuahua
          spoke on the concerns from her mother.  She stated that there are 4
          stores already in close vicinity and that the traffic congestion is
          getting bad.  She asked why is there an intrusion in that area when
          you already have commercial zoning areas.  She informed council
          that Mr. Cardenas already has a drive-thru less than a block away.

          Mrs. Maria Ibarra, Rosa's mother, informed council that they have a
          property on Chihuahua and Arkansas and that they should place it
          there.

          Motion to close the public hearing and send back to Planning and
          Zoning Commission for consideration as a Conditional Use Permit.

          Moved : Cm. Bruni
          Second: Cm. Casso
          For:  8                         Against:  0         Abstain:  0

      30. Public hearing concerning the application by Arturo and Juanita
          Alvarez, amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning Lot 2, Block 600, Eastern Division, located at 1217
          Hendricks Avenue from B-1 (Limited Business District) to R-O
          (Residential/Office District).  The Planning and Zoning Commission
          recommends approval of the zone change.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning Lot 2, Block 600, Eastern Division, located at 1217
          Hendricks Avenue from B-1 (Limited Business District) to R-O
          (Residential/Office District); providing for publication and
          effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Casso
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Casso

      31. Public hearing concerning the application by Francisco and Tomasa
          Hernandez, amending Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 4, Block 1412, Eastern Division, located at 2414
          Market Street from R-3 (Mixed Residential District) to B-1 (Limited
          Business District). The Planning and Zoning Commission recommends
          approval of the zone change.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 4, Block 1412, Eastern Division, located at 2414
          Market Street from R-3 (Mixed Residential District) to B-1 (Limited
          Business District); providing for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Casso
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Casso
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Casso

      32. Public hearing concerning the application by Francisco Velazquez,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning the west 2/3 of Lot 1, Block 876, Eastern Division,
          located at 2719 Meadow Avenue from R-3 (Mixed Residential District)
          to B-1 (Limited Business District).  The Planning and Zoning
          Commission recommends approval of the zone change.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning the west 2/3 of Lot 1, Block 876, Eastern Division,
          located at 2719 Meadow Avenue from R-3 (Mixed Residential District)
          to B-1 (Limited Business District); providing for publication and
          effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cw. Moreno
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cw. Moreno
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cw. Moreno

      33. Public hearing concerning the application by Juan Manuel Esparza,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 1, Block 448, Eastern Division, located at 119 East
          Bustamante Street from R-3 (Mixed Residential District) to B-4
          (Highway Commercial District).  The Planning and Zoning Commission
          recommends denial of the zone change.  This is an appeal from the
          Planning and Zoning Commission.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning Lot 1, Block 448, Eastern Division, located at 119 East
          Bustamante Street from R-3 (Mixed Residential District) to B-4
          (Highway Commercial District); providing for publication and
          effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          Mr. Juan Esparza gave the City Secretary a list containing 31
          signatures around the area who did not object to the zone change
          request by Mr. Esparza.

          Motion to close the public hearing, override the Planning and
          Zoning Commission, approve the zone change request, and introduce
          the ordinance.

          Moved : Cm. Valdez
          Second: Cm. Guerra
          For:  6                       Against:  2         Abstain:  0
                                        Cw. Moreno & Cm. Alvarado

          Ordinance Introduction: Cm. Valdez

      34. Public hearing concerning the application by Rogelio Garcia,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning the north 60 feet of the south 110 feet of the east 48
          feet and the southeast corner 50 x 148 feet of the south 1/2 of
          Block 41, Calton Gardens Subdivision, located at 4602 and 4604 San
          Francisco, from B-1 (Limited Business District) to B-3 (Community
          Business District).  The Planning and Zoning Commission recommends
          approval of the zone change.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning the north 60 feet of the south 110 feet of the east 48
          feet and the southeast corner 50 x 148 feet of the south 1/2 of
          Block 41, Calton Gardens Subdivision, located at 4602 and 4604 San
          Francisco, from B-1 (Limited Business District) to B-3 (Community
          Business District); providing for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cw. Montalvo
          For:  8                         Against:  0         Abstain: 0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Guerra
          Second: Cm. Bruni
          For:  8                         Against:  0         Abstain: 0

          Ordinance Introduction: Cm. Guerra

      35. Public hearing concerning the application by Kay Carmona,
          authorizing the issuance of a Special Use Permit for a Mobile Home
          Park known as Carmona's Mobile Home Park, on Block 2, 3, 15, and
          18, out of the Calton Gardens Subdivision, located at 5000
          Gallagher Avenue.  The Planning and Zoning Commission recommends
          approval of the Special Use Permit and variance.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the issuance of a Special Use Permit for a
          Mobile Home Park known as Carmona's Mobile Home Park, on Block 2,
          3, 15, and 18, out of the Calton Gardens Subdivision, located at
          5000 Gallagher Avenue; providing for publication and effective
          date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                         Against:  0         Abstain:  0

          Abraham Rodriguez, representing METRO Affordable Housing
          Corporation, spoke against the authorization of the Special Use
          Permit as it will have a financial economic impact on their
          project.

          Mrs. Kay Carmona, property owner, stated that she wants to continue
          operating as a Manufactured Housing Park.  She stated that she has
          been there for almost 35 years and that she does not see putting
          money into it the way the street is.  She also plans to convert the
          property as within 10 years her property would not be the same as
          it is now.  She does not intend to put a fantastic sum of money
          into building that up to remain as it.

          Motion to close the public hearing and send back to the Planning
          and Zoning Commission for reconsideration.


          Moved : Cm. Guerra
          Second: Cm. Valdez
          For:  8                       Against:  0         Abstain: 0


  XI.  ADJOURNMENT

          Motion to adjourn.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          Adjournment time: 8:50 p.m.

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 25 ARE TRUE,
COMPLETE, AND CORRECT PROCEEDINGS OF THE REGULAR CITY COUNCIL MEETING HELD ON
THE 27TH DAY OF MAY, 1997.  A CERTIFIED COPY IS ON FILE AT THE CITY
SECRETARY'S OFFICE.


                                                ________________________
                                                  GUSTAVO GUEVARA, JR.
                                                     CITY SECRETARY