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

                                MINUTES


     M-97-R-29                                     AUGUST 25, 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, JR.,    COUNCILMEMBER, DISTRICT I
       LOUIS H. BRUNI,                     , DISTRICT II
       ALFONSO I. "PONCHO" CASSO,   "      , DISTRICT III
       CECILIA MAY MORENO,          "      , DISTRICT IV
       ELISEO VALDEZ, JR.,          "      , DISTRICT V
       JOE A. GUERRA,               "      , DISTRICT VI
       MARIO G. ALVARADO,           "      , DISTRICT VII
       GUSTAVO GUEVARA, JR.,  CITY SECRETARY
       FLORENCIO PENA,        CITY MANAGER
       JAIME L. FLORES,       CITY ATTORNEY

       ABSENCES:

       Motion to excuse Cw. Montalvo due to illness.

       Moved : Cm. Perez
       Second: Cm. Alvarado
       For:  7                          Against:  0         Abstain:  0

       Motion to waive the regular order of business and move up item X-A(1) for
       consideration.

       Moved : Cm. Perez
       Second: Cm. Bruni
       For:  7                          Against:  0         Abstain:  0

  IV.  INTRODUCTORY ORDINANCES

       2. Authorizing the City Manager to execute a partial release of covenant
          for the Southgate Subdivision, Unit II-A, Phase II Planned Unit
          Development.  This release will allow the developer to proceed with
          the sale of lots in this development.

          Ordinance Introduction: City Council

   V.  FINAL READINGS

       Motion to waive the final reading of ordinance(s) #97-O-189, #97-O-190,
       #97-O-191, #97-O-192, #97-O-193, and #97-O-194.

       Moved : Cm. Perez
       Second: Cm. Valdez
       For:  7                          Against:  0         Abstain:  0

       3. 97-O-189  Authorizing the City Manager to execute a lease with Dynair
                    CFE Services, Inc., for approximately 416 square feet
                    constituting Building #168.
                    1. Lease term is for one (1) year commencing May 1, 1997 and
                       ending April 30, 1998 and be extended for one (1) year
                       ending April 30, 1999.
                    2. Monthly rent shall be $425.00 and will be adjusted
                       annually during the primary and extension term of this
                       lease according to changes in the Consumer Price Index.
                       Previous monthly rent was $369.51. Leased premises are
                       used for air freight operations.  (City Council)

                    Motion to approve Ordinance #97-O-189.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  7             Against:  0         Abstain:  0

       4. 97-O-190  Closing as a public easement a 513.1 square foot parcel of
                    land, more or less, out of the 1000 Block of Baltimore
                    Street between Flores and San Agustin Avenues and the 3500
                    Block of Flores Avenue between Baltimore and Lafayette
                    Streets, said parcel of land being encroached by the
                    improvements of the abutting property being Lot 2, Block
                    901, Western Division, being more particularly described by
                    metes and bounds, and authorizing the sale of the "surface
                    only" of said parcel of land at the adjusted fair market
                    value of $1,026.20, and authorizing the City Manager to
                    execute all necessary documents to effectively convey fee
                    simple title to Victor Alvarez and wife Sara A.  Alvarez and
                    Irene R. Sanchez, a single woman.  (City Council)

                    Motion to approve Ordinance #97-O-190.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  7             Against:  0         Abstain:  0

       5. 97-O-191  Closing as a public easement a 465.28 square foot parcel of
                    land, more or less, out of the 1800 Block of Logan Avenue
                    between Guerrero and Lane Streets, said parcel of land being
                    encroached by the improvements of the abutting property
                    being Lot 7, Block 250, Eastern Division, being more
                    particularly described by metes and bounds, and authorizing
                    the sale of the "surface only" of said parcel of land at the
                    adjusted fair market value of $697.92, and authorizing the
                    City Manager to execute all necessary documents to
                    effectively convey fee simple title to Adelina de Leon and
                    Virginia A. Gonzalez.  (City Council)

                    Motion to approve Ordinance #97-O-191.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  7             Against:  0         Abstain:  0

       6. 97-O-192  Authorizing the establishment of a limited-time deferred
                    payment plan for delinquent customers of the utilities
                    department who declare themselves willing but unable to pay
                    the full balance on their account, citing hardship, or
                    extraordinary circumstances. (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-192.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  7             Against:  0         Abstain:  0

       7. 97-O-193  Authorizing the Utilities Department to refuse service to
                    individuals or business entities who owe prior balances for
                    services received and who attempt to open an account under a
                    different name or location for the purpose of avoiding
                    payment of said rendered services; providing for effective
                    date and publication.  (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-193.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  7             Against:  0         Abstain:  0

       8. 97-O-194  Ordinance amending the Capital Grant TX-90-X374 budget line
                    item Bus Purchases; from $900,000.00 to $983,481.00;
                    appropriating unused FY 95-96 federal operating funds in the
                    amount of $66,785.00 and applying previously appropriated
                    transit sales tax funds for bus purchases, in the amount of
                    $16,696.00, to serve as the 20% match.

                    (City Council)

                    Motion to approve Ordinance #97-O-194.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  7             Against:  0         Abstain:  0

  VI.  RESOLUTIONS

       9. 97-R-087  Authorizing the City Manager of the City of Laredo to submit
                    a grant application to the Texas Preservation Trust Fund of
                    the Texas Historical Commission in the amount of $66,666.00;
                    and authorizing the City Manager to execute the necessary
                    documents.

                    Motion to approve Resolution #97-R-087.

                    Moved : Cm. Perez
                    Second: Cm. Alvarado
                    For:  7             Against:  0         Abstain:  0

 VII.  MOTIONS

      10. Authorizing the City Manager to request proposals for engineering
          and/or planning of projects to be funded through the 23rd Action Year
          (AY) Community Development Block Grant (CDBG) in anticipation of
          funding to be made available October 1, 1997 by the U.S. Department of
          Housing and Urban Development (HUD). Proposals will be sought for the
          following projects:

          1. Gallagher Street Improvements
          2. Zacate Creek Beautification Project
          3. Sidewalk Program
          4. Tinaja/Chacon Pilot Channel, Phase I
          5. Paving Project 61 Engineering
          6. El Portal Riverfront Feasibility Study

          Motion authorizing the City Manager to request proposals for
          engineering and/or planning of projects to be funded through the 23rd
          Action Year (AY) Community Development Block Grant (CDBG) in
          anticipation of funding to be made available October 1, 1997 by the
          U.S. Department of Housing and Urban Development (HUD). Proposals will
          be sought for the following projects:

          1. Gallagher Street Improvements
          2. Zacate Creek Beautification Project
          3. Sidewalk Program
          4. Tinaja/Chacon Pilot Channel, Phase I
          5. Paving Project 61 Engineering
          6. El Portal Riverfront Feasibility Study

          Moved : Cm. Perez
          Second: Cm. Valdez
          For:  7                       Against:  0         Abstain:  0

      11. Approval of construction plans and specifications and authorization to
          advertise for bids for the Laredo Health Department Canopy for
          Perimeter of W.I.C. Building located at 2600 Cedar Avenue with
          tentative award September 22, 1997.  Funding is available in the
          Capital Improvement Fund Health Department Canopy Account.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Valdez
          For:  7                       Against:  0         Abstain:  0

      12. Approval of the construction plans and specifications and
          authorization to advertise for bids for the Azteca Neighborhood Park
          and Parking Lot Improvements with tentative award on September 22,
          1997. Funding is available in community development CDBG Azteca Park.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Valdez
          For:  7                       Against:  0         Abstain:  0

VIII.  CITY MANAGER'S REPORT

      13. Authorizing the City Manager to submit a proposal to the Federal
          Aviation Administration (FAA) to reimburse the City Airport Fund a
          monthly amount of $18,962.25 or $227,547.00 for FY 1997/98 for air
          traffic control services at Laredo International Airport. Air traffic
          control services for FY 1997/98 are budgeted at $280,000.00. FAA
          funding represents approximately 81 percent of the total cost to
          operate the air traffic control tower.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

      14. Request the City Council Ad Hoc Committee to select a date to meet
          with staff to discuss and recommend a possible pay plan revision for
          fiscal year 1997/98.

          Mayor Ramirez announced that it was the consensus of the City Council
          to set the date of September 8th at 5:30 p.m.

      15. Request for Executive Session as authorized by Section 551.072 of the
          Texas Government Code, to deliberate a proposed exchange of land
          between the United States Federal Government and the City of Laredo,
          for the local United States Federal Courthouse Building being
          described as All of Block 140, Western Division, and located at 1300
          Matamoros, for that section of the 1000 Block of Salinas Avenue
          between Washington and Victoria Streets.

          Motion to go into Executive Session as authorized by Section 551.072
          of the Texas Government Code, to deliberate a proposed exchange of
          land between the United States Federal Government and the City of
          Laredo, for the local United States Federal Courthouse Building being
          described as All of Block 140, Western Division, and located at 1300
          Matamoros, for that section of the 1000 Block of Salinas Avenue
          between Washington and Victoria Streets.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  7                       Against:            Abstain:  0

          After executive session Mayor Ramirez announced that no formal action
          was taken.

      16. Request for Executive Session as authorized by Section 551.072 of the
          Texas Government Code to deliberate land acquisition relating to the
          Laredo Northwest International Bridge (4th Bridge) to be located on
          Farm Road 1472.

          Motion to go into Executive Session as authorized by Section 551.072
          of the Texas Government Code to deliberate land acquisition relating
          to the Laredo Northwest International Bridge (4th Bridge) to be
          located on Farm Road 1472.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

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

      17. Request for Executive Session as authorized by Section 551.072 of the
          Texas Government Code to deliberate the possible acquisition of
          property at the northwest and southwest corners of FM 3464 and IH-35.

          Motion to go into Executive Session as authorized by Section 551.072
          of the Texas Government Code to deliberate the possible acquisition of
          property at the northwest and southwest corners of FM 3464 and IH-35.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

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

  IX.  COMMUNICATIONS

       A. Recognizing the hard work and dedication the following individuals
          provided to the City of Laredo in the development of the City's
          Hazardous Materials (HAZMAT) Ordinance:

          1. Prof. Monica Schurtman
             Immigration and Human Rights Clinic
             St. Mary's University School of Law

          2. Phillip Doyle
             Student Attorney
             St. Mary's University School of Law

          3. Fr. John Moder
             President
             St. Mary's University

          4. Barbara Aldave
             Dean, School of Law
             St. Mary's University

          5. Frank Cardenas
             HazMat Inspector

          Mayor Ramirez recognized the above mentioned individuals with the
          exception of Father John Moder who was not present and presented them
          with plaques in recognition for their hard work and vision on an
          effective Haz-Mat ordinance.

       b. Cm. Alvarado stated he had a discussion with Gilbert Segovia of El
          Metro and the Chairperson of the Traffic/Transportation Committee who
          stated there were concerns and recommendations made by the
          Traffic/Transportation that were forwarded to Mr.  Segovia which were
          in turn forwarded to the City Manager.  The concerns are the truck
          traffic on IH-35.  The recommendations made by the Traffic & Safety
          Committee were done hoping to get some options that Council and staff
          can be instructed to look at, to facilitate those problems.

          Mayor Ramirez stated they will hear recommendations, take them under
          advisement and asked that Cm. Alvarado sponsor the item for next
          agenda.

          Mr. Humberto Gonzalez, member of the Traffic/Safety Committee stated
          that they have had meetings with the Police Department discussing the
          issue to curve the problems on IH-35, but that

          the recommendations have not been taken seriously.  Several
          recommendations made include:
          (1) Installing a camera on one of the overpasses so that they can see
              some of these tractor trailers crossing over or cutting line.

          (2) Sometimes the problems persist because PD does not have the ample
              manpower.  The board recommended that PD go into a quick solution
              program which entails the hiring off duty police officers to have
              a detail at I-35 from 3:30 p.m. to 12:00 a.m. which is the time of
              congestion at IH-35.

          (3) If they can come to an understanding between City Council and the
              Police Department to where they can set up a program to let the
              Police Department hire these personnel for 60 to 90 days to see
              how it works, he believes that some of these problems will be
              eliminated.

          Mayor Ramirez asked Cm. Alvarado to sponsor this item for
          recommendations from staff for the next council meeting.

          Police Sgt. Jose Jalomo reported that they are having a hard time in
          keeping trucks in line due to the lack of officers.


   X.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

    A.  Requests by Mayor Saul N. Ramirez, Jr.

       1. Nominating:
                    Pete Saenz
                    Arturo Santos
                    Rene Herrera
                    Jose Lara
                    Bobbie Martinez
          to the Laredo Affordable Housing Board.

          Motion confirming the nominations.

          Moved : Cm. Perez
          Second: Cm. Guerra
          For:  7                       Against:  0         Abstain:  0

  XI.  PUBLIC HEARINGS

      19. Public hearing concerning the application by Manuel Vera and Son
          authorizing the issuance of a Special Use Permit for sand and gravel
          sales/storage, on Lot 7, Block 2003, South Laredo Industrial Park,
          located at 2010 Rotary Street.  The Planning and Zoning Commission
          recommends approval of this Special Use Permit.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the issuance of a Special Use Permit for sand an
          gravel sales/storage, on Lot 7, Block 2003, South Laredo Industrial
          Park, located at 2010 Rotary Street; providing for publication and
          effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

          Keith Selman, Planning Director, made the presentation before the
          council.

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Perez

      20. Public hearing concerning the application by Daniel Garcia amending
          the Zoning Ordinance (Map) of the City of Laredo by rezoning Lots 1, 2
          and 3, Block 204, Eastern Division, located at 1502 S. Zapata Hwy.,
          from B-3 (Community Business District) to B-4 (Highway Commercial
          District).  The Planning and Zoning Commission recommends approval of
          this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lots 1, 2 and 3, Block 204, Eastern Division, located at 1502
          S.  Zapata Hwy., from B-3

          (Community Business 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:  7                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Perez
          Second: Cm. Guerra
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Perez

      21. Public hearing concerning the application by Jose De Jesus Raygoza
          amending the Zoning Ordinance (Map) of the City of Laredo by rezoning
          Lot 6, Block 1597, Eastern Division, located at 2606 Cross Street,
          from R-2 (Multi-Family Residential District) to R-3 (Mixed Residential
          District).  The Planning and Zoning Commission recommends approval of
          this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 6, Block 1597, Eastern Division, located at 2606 Cross
          Street, from R-2 (Multi-Family Residential District) to R-3 (Mixed
          Residential District).

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

          Mr. Juan Barrera stated that he was against the rezoning change.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Perez

      22. Public hearing concerning the application by Elodia Chapa amending the
          Zoning Ordinance (Map) of the City of Laredo by rezoning Lot 4, Block
          1750, Eastern Division, located at 2919 Cross Street, from R-2 (Multi-
          Family Residential District) to R-3 (Mixed Residential District).  The
          Planning and Zoning Commission recommends approval of this zone
          change.
                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 4, Block 1750, Eastern Division, located at 2919 Cross
          Street, from R-2 (Multi-Family Residential District) to R-3 (Mixed
          Residential District).

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

          Ordinance introduction: Cm. Perez

      23. Public hearing concerning the application by Reno Sand and Gravel,
          Irma Garcia authorizing the issuance of a Special Use Permit for sand
          an gravel sales/storage, on Lot 1, Block 1, Northeast Complex, located
          at 1319 Muller Road. The Planning and Zoning Commission recommends
          approval of this Special Use Permit.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the issuance of a Special Use Permit for sand an
          gravel sales/storage, on Lot 1, Block 1, Northeast Complex, located at
          1319 Muller Road; providing for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

          Ms. Veronica Garcia, representing Reno Gravel, stated that they
          purchased the building for the purpose of have better mobility with
          the trucks and asked that council favors the zone change request.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Bruni
          Second: Cm. Valdez
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Bruni

      24. Public hearing concerning the application by Adolfo Gonzalez, amending
          the Zoning Ordinance (Map) of the City of Laredo by rezoning Lots 7
          and 8, Block 697, Eastern Division, located at 1219 Chihuahua Street,
          from R-O (Residential/Office District) to B-1 (Limited Business
          District).  The Planning and Zoning Commission recommends approval of
          this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lots 7 and 8, Block 697, Eastern Division, located at 1219
          Chihuahua Street, from R-O (Residential/Office District) to B-1
          (Limited Business District).  Providing for publication and effective
          date.

          Motion to open the public hearing.

          Moved : Cm. Guerra
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

          Ron Whitehawk, representing Mr. Adolfo Gonzalez, passed a petition to
          council favoring the zone change request.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Casso
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Casso

      25. Public hearing concerning the application by Myrna I.  Sanchez,
          amending the Zoning Ordinance (Map) of the City of Laredo by rezoning
          all of Block 53, Calton Gardens Subdivision, located at 5400
          Springfield Avenue, from R-3 (Mixed Residential District) to B-3
          (Community Business District).  The Planning and Zoning Commission
          recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning all of Block 53, Calton Gardens Subdivision, located at 5400
          Springfield Avenue, 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. Moreno
          For:  7                       Against:  0         Abstain:  0

          Ron Whitehawk, representing the developers, spoke in favor of the zone
          change request.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Guerra
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Guerra

      26. Public hearing concerning the application by Jose De Hoyos, amending
          the Zoning Ordinance (Map) of the City of Laredo by rezoning Lots 5
          and 6, Block 1067, Western Division, located at 1020 Tacuba Street,
          from R-3 (Mixed Residential District) to B-1 (Limited Business
          District).  The Planning and Zoning Commission recommends approval of
          this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lots 5 and 6, Block 1067, Western Division, located at 1020
          Tacuba 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:  7                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Alvarado
          Second: Cm. Bruni
          For:  6                       Against:  0         Abstain:  0 Mayor
          Protem Perez was chairing the meeting.

          Ordinance Introduction: Cm. Alvarado

      27. Public hearing amending Section 24.77.1 of the Laredo Development Code
          relating to permitted lot dimensions in certain districts, decreasing
          the allowable lot area in the R-1A (Single Family Reduced Area
          District) from 4500 square feet to 3700 square feet, reduce the
          frontage requirement for R-1A from 42 feet to 37 feet, deleting lot
          depth requirements in AG, R-1, R-1A, R-2, RS, R-O, and B-1 districts,
          providing minimum lot area requirements for lots intended for non-
          service oriented uses such as communication towers and off-premise
          signs, and providing for the staggering of side lot lines in R-1, R-
          1A, R-1MH, R-2, R-3, and R-0 developments; providing for publication
          and effective date.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending Section 24.77.1 of the Laredo Development Code
          relating to permitted lot dimensions in certain districts, decreasing
          the allowable lot area in the R-1A (Single Family Reduced Area
          District) from 4500 square feet to 3700 square feet, reduce the
          frontage requirement for R-1A from 42 feet to 37 feet, deleting lot
          depth requirements in AG, R-1, R-1A, R-2, RS, R-O, and B-1 districts,
          providing minimum lot area requirements for lots intended for non-
          service oriented uses such as communication towers and off-premise
          signs, and providing for the staggering of side lot lines in R-1, R-
          1A, R-1MH, R-2, R-3, and R-0 developments; providing for publication
          and effective date.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  6                       Against:  0         Abstain:  0 (Mayor
          Protem Perez was chairing the meeting)

          Mr. Steve Snow spoke in favor of the depth change provisions.

          Cm. Casso was opposed to diminishing the standard without further
          study.

          Motion to close the public hearing, defer this item for the next
          council meeting, break up the items, and bring
          bring back with recommendations.

          Moved : Cm. Perez
          Second: Cm. Valdez
          For:  7                       Against:  0         Abstain:  0

      28. Public hearing concerning the application by East House Properties,
          Danny Wyers amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning 1.8117 acres, as further described by metes and bounds,
          located on the west side of Remington Drive, south of US 59, from R-1
          (Single Family Residential District) and B-3 (Community Business
          District) to R-1A (Single Family Reduced Area District) Planned Unit
          Development.  The Planning and Zoning Commission recommends approval
          of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 1.8117 acres, as further described by metes and bounds,
          located on the west side of Remington Drive, south of US 59, from R-1
          (Single Family Residential District) and B-3 (Community Business
          District) to R-1A (Single Family Reduced Area District) Planned Unit
          Development; providing for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

          Mr. Steve Snow spoke in favor of the PUD provision and stressed that
          there needs to be some mechanism established.

          Mayor Ramirez stated that the charge is clear to staff,
          which is to set up a mechanism to allow for the Plan Unit Development
          (PUD) to be more amenable to low and moderate income families.

          Cw. Moreno said some lots have three foot sidewalks, they do not
          comply with ADA requirements.

          Mr. Selman said that they need to look at all of these issues.  He
          stated he will be more diligent in the reviews of the PUD, the
          ordinance as it is set up is more flexible in terms of being a design
          element.  A developer can come in and provide design alternatives,
          there are some minimum standards in terms of size in lots for PUD and
          other things.  He concluded by saying that it allows for flexibility
          and design.

          Cm. Bruni that the sidewalks issue be addressed.

          Motion to close the public hearing, introduce the ordinance, and that
          all PUD requests be suspended until they get this changed.

          Moved : Cm. Bruni
          Second: Cm. Valdez
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Bruni

      29. Public hearing concerning the application by N.W. House Ltd., Steve
          Snow, amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 12.5 acres, as further described by metes and bounds, located
          south of Killam Industrial Boulevard, west of FM 1472, from R-1A
          (Single Family Reduced Area District) to R-1A (Single Family Reduced
          Area District) Planned Unit Development.  The Planning and Zoning
          Commission recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 12.5 acres, as further described by metes and bounds, located
          south of Killam Industrial Boulevard, west of FM 1472, from R-1A
          (Single Family Reduced Area District) to R-1A (Single Family Reduced
          Area District), Planned Unit Development. Providing for publication
          and effective date.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Guerra
          For:  7                       Against:  0         Abstain:  0

          Mr. Steve Snow spoke in favor.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Alvarado
          Second: Cm. Perez
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Alvarado

      30. Public hearing amending the City of Laredo's FY 1996-97 budget by
          transferring $485,000.00 from General Fund to Capital Improvement
          Fund, and authorizing the City Manager to amend budget for proposed FY
          97-98 projects that can be funded in the current fiscal year through
          line-item savings.  publication and effective date.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's FY 1996-97 budget by
          transferring $485,000.00 from General Fund to Capital Improvement
          Fund, and authorizing the City Manager to amend budget for proposed FY
          97-98 projects that can be funded in the current fiscal year through
          line-item savings.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

     31.  Public hearing for setting a tax rate of $0.53993 with a maintenance
          and operation rate of $.336788 and an interest and sinking fund rate
          of $.203142 and a motion to set a date of September 2, 1997 for
          adoption of the 1997 tax rate.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Guerra
          For:  7                       Against:  0         Abstain:  0

          Phyllis Colon, Tax Assessor/Collector, presented the following:

             1997 Appraisal District Roll for the City of Laredo

                                            1996             1997
          Certified assessed value:    $4,094,037,677   $4,454,737,723
          Certified taxable value:      3,523,521,904    3,806,075,234
          Adjusted roll August 1st:     3,538,521,176    3,806,075,234
          1997 value of new improvements                   159,791,896
          1997 value of property annexed into City           9,231,560

          1996 Tax Rate                    0.526766
          1997 Effective Tax Rate                             0.523413
          1997 Rollback Tax Rate                              0.540469
          Levy August 1st             19,100,489 (proposed) 20,550,142
          Certified collection rate for budget purposes:           95%

          1997 Proposed Tax Rate:
                    Maintenance and Operation                  0.336788
                    Debt Service                               0.203142 Total
                    Rate ..............................  0.539930

          Mr. Jesus Ponce asked what was the tax increase.

          Mayor Ramirez answered that it was 1 cent increase per $100 property
          valuation.

          Motion to close the public hearing and set the date of September 2,
          1997 for the adoption of the rate.

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


     M97-R-29(S)         SUPPLEMENTAL AGENDA          AUGUST 25, 1997

   X.  CITY COUNCIL DISCUSSION AND PRESENTATION

       B.  Requests by Councilmember Joe A. Guerra

        1. Discussion and possible action to direct staff to
           amend Ordinance No. 94-O-077 which authorizes the issuance of a
           special use permit for a gas extraction facility for a .86 acre tract
           out of Porcion 25, Abstract 50, located at the northeast corner of
           McPherson Road and Del Mar Boulevard, by amending the provision for
           the placement of structures located within the proximity of the well-
           head from 250 feet to 100 feet.

           Florencio Pea, Interim City Manager, stated that this item was
           brought to their attention late last week and in order to facilitate
           the approval process they were able to get it done and placed in
           conjunction with Cm. Guerra to get it
           in the agenda.  He informed Cm. Guerra that they would meet with the
           legal staff before the meeting to determine what would be the proper
           process to get this permit reviewed.  He added that it has been
           determined by legal staff that the zoning change process will be
           required, so they will have to go back to the Planning and Zoning
           Commission and go through the normal hearing process.

           Mr. Keith Selman explained that there is a provision on their special
           use permit that prohibits any structure to be within 250 ft. of the
           well-head, this became acute when they were platting the property.
           They have some contracts to build and contract on the site.  They
           feel it is an encumbrance on the site to have this 250 ft. setback
           provision as a radius around the well-head.

           Mayor Ramirez stated he has no problems with the request if it is one
           that by reducing this area they are going to implement higher
           standards of safety that will have to be put in place in lieu of this
           250 feet.

           Cm. Bruni stated for the record, "that since Enron has purchased this
           whole field from Amaco there is about maybe 100 wells in that field.
           That particular location has two...right directly across from that
           location there is also two other wells..and Enron has spoken to our
           office and has related to us that they plan on reworking in possibly
           deeping those wells and certainly we work in those wells to try and
           recomplete at a shallow zone.  So they're in the process of having
           heavy equipment move on top of those wells and either deepen with a
           rig or rework with a work over rig.  In the process of reworking
           these wells, entails the removal of that well-head equipment and then
           they go in there with a blow out preventor and set it up on top of
           that equipment.  They go in there to try and kill the well with
           drilling fluids so they don't have a blowout like what happened in
           Pearsal as they saw in the news media.  There was a tremendous
           blowout in Pearsal it took many weeks to extinguish, that is also
           possible when you rework wells.  Blowouts have occurred during the
           reworking process of these wells and I don't think it would be in the
           best interest of this City Council to allow the encroachment on these
           particular well-heads that are inside our city limits.  It is an
           issue of great concern for the safety of the residents and the
           citizens of the City of Laredo and of the children that they not be
           allowed within a certain amount of feet of these installations.  I
           think it would behoove this council as to how the Mayor stated, to
           study this issue carefully...  study this issue to make sure that
           more security is beefed up or the additional enclosures are beefed
           like the second well and not like the first well.  What we don't want
           is to have some tragedy there because the developer knew going that
           into this process of drilling and completing that he'd be ripping the
           benefits, the royalties coming out of this well. These wells usually
           have a life span of 10 years once the well finishes producing gas,
           the oil companies go in there and shoot cement into the formations on
           their surface casing so that any lingering gas cannot escape, once
           that is done a concrete slap or establishment can be placed."  He
           added he has spoke to some attorneys and the liability would fall
           under the developer, the oil company and this City Council both
           officially and on their official capacity."  He concluded by saying
           that to have a fast food restaurant or a convenient store, the
           building itself, the wall itself 100 feet from the structure is
           totally unacceptable.

           Cm. Casso questioned what is the legality regarding the shut down of
           those wells?  Lets say 100 feet is not safe, why is 200 feet any
           safer than 100 feet?  Can the city right now actually shut those well
           down or not?

           Jaime Flores, City Attorney, stated that the City Manager, the
           Planning Staff and himself got together to look at those issues and
           to put it frankly, they really don't feel that they have the
           expertise to proceed with requesting any kind of request to instruct
           staff to amend the ordinance.  The recommendation he would suggest
           would be to go slow on this issue, and take a look at all the safety
           issues and concerns with regards to what specifically would take to
           tap the casings.  He added he does not have the expertise in any of
           those areas.

           Cm. Casso asked that they do look at the legal issues, but to also
           look at the continuation of growth.

           J.C. Trevino III, attorney for the developer, stated that right now
           the special use permit in effect addresses the 250 ft. setback for
           the back well only, not the front well and there was not a special
           use permit for that front well.  That well has no radius or no
           setbacks and that is the one that needs to be addressed, but in
           reference to Cm. Bruni's comments they might as well address both of
           them and try to satisfy the city and Cm. Bruni's concerns.  They will
           work with staff, the oil company, legal staff, and City Council and
           perhaps come up with something that satisfies everyone.

           Cm. Bruni stated for the record that Enron is not happy with the 100
           ft.

           Motion to send this item to P&Z at their following meeting to meet
           all posting requirements and upon review and recommendation that it
           be sent to the Ad Hoc Drilling Committee.

           Moved : Cm. Guerra
           Second: Cm. Alvarado
           For:  7                      Against:  0         Abstain: 0

 XII.  ADJOURNMENT

          Motion to adjourn.  Time: 8:35 p.m.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 23
ARE TRUE, COMPLETE, AND CORRECT PROCEEDING OF THE CITY COUNCIL MEETING HELD ON
THE 25TH DAY OF AUGUST, 1997.  A CERTIFIED COPY IS ON FILE AT THE CITY
SECRETARY'S OFFICE.



                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY