CITY OF LAREDO

CITY COUNCIL MEETING

M2000-R-20

CITY COUNCIL CHAMBERS

1110 HOUSTON STREET

LAREDO, TEXAS 78040

JULY 24, 2000

5:30 P.M.

I. CALL TO ORDER

With a quorum present, Mayor Elizabeth G. Flores called the

meeting to order.

II. PLEDGE OF ALLEGIANCE

Mayor Elizabeth G. Flores led in the Pledge of Allegiance.

III. ROLL CALL

In attendance:

Elizabeth G. Flores Mayor

Alfredo Agredano Council Member, District I

Louis H. Bruni Council Member, District II

John C. Galo Council Member, District III

Johnny Amaya Council Member, District IV

Eliseo Valdez, Jr. Council Member, District V

Joe A. Guerra Mayor Pro Tempore, District VI

Jose A. Valdez, Jr. Council Member, District VII

Juan Ramirez Council Member, District VIII

Cynthia Collazo Acting City Manager

Larry Dovalina Acting City Manager

Jaime Flores City Attorney

IV. MINUTES

None.

V. COMMUNICATIONS AND RECOGNITIONS

Announcements

None.

Invitations

None.

Recognitions

a. Recognition to Sgt. Jose Jalomo, Jr., of the Laredo Police

Department who recently returned for the Federal Bureau of

Investigation's National Academy (FBINA) as he graduated

from the 201st Session, in Quantico, Virginia, on June 16,

2000.

Mayor Flores and the City Council recognized Sgt. Jose

Jalomo, Jr. for his dedication and achievements in law

enforcement and presented him with a plaque for his

outstanding accomplishments.

Communiques

Cm. Jose A. Valdez, Jr. read a letter from the Texas Department

of Transportation in connection with one of his agenda items

discussed at a previous meeting. The Texas Department of

Transportation reported that the city could not have a non-

commercial traffic lane established on the Mines Road between

Killiam Industrial Blvd. and Santa Maria Ave.

VI. APPOINTMENTS TO COMMISSION, BOARDS AND COMMITTEES

a. Appointment of Ana Maria Montoya by Council Member Eliseo

Valdez, Jr., to the Laredo Commission for Women.

Motion to approve.

Moved : Cm. Galo

Second: Cm. Amaya

For: 8 Against: 0 Abstain: 0

VII. PUBLIC HEARINGS

1. Public hearing to approve of an amendment to the contract with

the Texas Department of Health and Budget revision in the

amount of $12,000.00 for the La Familia Health Care Program of

the City of Laredo Health Department for the period beginning

September 1, 1999, through August 31, 2000.

INTRODUCTION OF AN ORDINANCE

Approval of an amendment of the contract with the Texas

Department of Health and Budget revision in the amount of

$12,000.00 for the La Familia Health Care Program of the City

of Laredo Health Department for the period beginning September

1, 1999, through August 31, 2000; and decrease revenue line

item 226-0000-323-4036 from $200,000 to $188,000 and

expenditure line item 226-6007 from $200,000 to $188,000.

Motion to open the public hearing.

Moved : Cm. Galo

Second: Cm. Bruni

For: 8 Against: 0 Abstain: 0

There was no public input.

Motion to close the public hearing and introduce.

Moved : Cm. Guerra

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

Ordinance Introduction: City Council

2. Public hearing concerning an application by Angel R. Laurel,

Jr., amending the Zoning Ordinance (Map) of the City of Laredo

by amending Ordinance 99-O-196, authorizing a name change on

the Conditional Use Permit, for used clothing sales, from Dan

iel B. Hastings, Sr. to Angel R. Laurel, Jr. on Lots 6 and 8,

Block 195, Western Division, located at 1119 Flores Avenue.

The current zoning for this site is CBD (Central Business

District). The Planning and Zoning Commission recommended

approval o f the proposed amendment to the Conditional Use

Permit.

INTRODUCTION OF AN ORDINANCE

Amending the Zoning Ordinance (Map) of the City of Laredo by

amending Ordinance 99-O-196, authorizing a name change on the

Conditional Use Permit, for used clothing sales, from Daniel

B. Hastings, Sr. to Angel R. Laurel, Jr. on Lots 6 and 8,

Block 195, Western Division, located at 1119 Flores Avenue;

providing for publication and effective date.

Motion to open the public hearing.

Moved : Cm. Galo

Second: Cm. Amaya

For: 8 Against: 0 Abstain: 0

There was no public input.

Motion to close the public hearing and introduce.

Moved : Cm. Guerra

Second: Cm. E. Valdez

For: 8 Against: 0 Abstain: 0

Ordinance Introduction: Cm. Ramirez

3. Public hearing concerning an application by N.W. Development

amending the Zoning Ordinance (Map) of the City of Laredo by

rezoning 1.680 acres, as further described by metes and

bounds, located on the northwest corner of Jacaman Rd. and the

Bartlett Avenue extension, from R-1 (Single Family Residential

District) to B-4 (Highway Commercial District). The Planning

and Zoning Commission recommended denial of the B-4 and

approval of a B-1 (Limited Business District).

INTRODUCTION OF AN ORDINANCE

Amending the Zoning Ordinance (Map) of the City of Laredo by

rezoning 1.680 acres, as further described by metes and

bounds, located on the northwest corner of Jacaman Rd. and the

Bartlett Avenue extension, from R-1 (Single Family

Residential District) to B-4 (Highway Commercial District);

providing for publication and effective date.

Motion to open the public hearing.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

Ron Whitehawk, Cherokee Engineering, spoke in favor of the

zone change to a B-1 designation. He mentioned that this

zoning change would allow for the development of a convenience

store together with a gasoline station type facility. He

added that it will be a necessary neighborhood convenience and

asked that the City Council approve this zone change.

Keith Selman, Planning and Zoning Director, provided

information that his department favors the requested zone

change to a B-1 designation rather than to a B-4 designation.

Motion to close the public hearing and introduce.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

Ordinance Introduction: Cm. Bruni

4. Public hearing amending the City of Laredo FY 1999-2000 Annual

Budget by creating 4 new positions for Parks and Recreation

Department, D. D. Hachar Recreation Center, authorizing the

City Manager to implement said amendment.

INTRODUCTION OF AN ORDINANCE

An ordinance amending the City of Laredo FY 1999-2000 Annual

Budget by creating 4 new positions for the Parks and

Recreation Department, D. D. Hachar Recreation Center,

authorizing the City Manager to implement said amendment.

Motion to open the public hearing.

Moved : Cm. Galo

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

There was no public input.

Cm. Galo mentioned that this issue did not need to be

presented at the budget hearing because it had previously been

approved and funded.

Cm. Ramirez inquired as to the budgeted amounts for the four

new positions.

John Vidaurri, Parks and Recreation Director, responded that

the total amount for the four positions is $79,691.05.

Motion to close the public hearing and introduce.

Moved : Cm. Agredano

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

Ordinance Introduction: City Council

5. Public hearing authorizing the transfer from Mineral Leases

Fund to the Capital Improvements Fund in the amount of

$115,080.00 to partially fund the development of a 4.16 acre

neighborhood park located in Eastwoods Subdivision at the 3600

block of Sheffield and Derby in District II; amending the City

of Laredo FY 1999-2000 Annual Budget for General Fund by

appropriating revenues and expenditures in the amount of

$108,201.28 as proceeds from the settlement of a lawsuit

styled City of San Beni to, et al., vs. P.G. & E. Gas

Transmission; transferring $66,920.00 to the Capital

Improvements Fund to provide additional funding for Eastwoods

Park and the COPS Substation to be located at Springfield Ave.

and Ryan St. in District V, and authorizin g the City Manager

to implement said Budget.

INTRODUCTION OF AN ORDINANCE

Authorizing the transfer from Mineral Leases Fund to the

Capital Improvements Fund in the amount of $115,080.00 to

partially fund the development of a 4.16 acre neighborhood

park located in Eastwoods Subdivision at the 3600 block of

Sheffield and Derby in District II; amending the City of

Laredo FY 1999-2000 Annual Budget for General Fund by

appropriating revenues and expenditures in the amount of

$108,201.28 as proceeds from the settlement of a lawsuit

styled City of San Benito , et al., vs. P.G. & E. Gas

Transmission; transferring $66,920.00 to the Capital

Improvements Fund to provide additional funding for Eastwoods

Park and the COPS Substation to be located at Springfield Ave.

and Ryan St. in District V, and authorizing the City Manager

to implement said Budget.

Motion to open the public hearing.

Moved : Cm. Galo

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

There was no public input.

Motion to close the public hearing and introduce.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

Ordinance Introduction: City Council

VIII. GENERAL COUNCIL DISCUSSIONS AND PRESENTATIONS

6. A. Request by Mayor Elizabeth G. Flores

1. Presentation of the Texas Border Infrastructure

Coalition's Legislative Agenda for the 77th

Legislative Session.

Mayor Flores thanked the members of the City Council

for the opportunity to present the Texas Border

Infrastructure Coalition Legislative Proposal. She

introduced coalition members who joined her in the

presentation before City Council. Ren e Gonzalez,

TBIC Coordinator, Horacio De Leon, TBIC

Transportation Tri-Chair and Blas Castaneda, TBIC

Education and Workforce Development Tri-Chair.

Following is a written summary of the presentation made

before City Council:

The TBIC was formed during the early part of the last

legislative session when it was apparent that the

legislature wanted a collaboration of efforts along the

Texas/Mexican Border. For Laredo, Council Members John

Galo and Joe Guerra were part of the team instrumental in

developing our agenda, plan of action, and lobbying

efforts. Mr. Rene Gonzalez will give us a brief reminder

of that success. I was appointed Chair of the Texas

Border Infrastructure Coalition, September, 1999. Since

then, the TBIC has met with many individuals representing

federal, state, and local government, industry, and the

private sector. We met with people from the border and

people who had never been to the border.

The purpose of our meetings was to understand other

Texan's vision for the border in terms of transportation

infrastructure, education, and workforce development. We

also met to present to others the important role the

border plays in the success of other Texas cities. We met

to discuss how the border could be better, not only for

the border but also for Texas. The TBIC members know

that after 1500 years of benign neglect, of having to "go

it alone", the border has been receiving some very wel

come attention. But TBIC members also recognize that the

economic future of Texas depends on Texas' stronger and

more immediate investment in the Border. The TBIC has

two reports to give you today that have been turned over

to the Senate Border Affairs committee, the Senate State

Affairs Committee, and the Border Legislatures with

recommendations for the 2001 Legislative Session. One

report is from the Transportation Committee and the other

from the Workforce and Education Committee.

Transportation Sub-Committee

We believe that the impact of NAFTA has been very

positive for the state as a whole. The border region can

surely identify with the positive by the decrease in the

unemployment rate and the increase in private investment.

But the border region can also identify with the negative

and this is the increase in NAFTA related traffic causing

accidents, infrastructure, maintenance, congestion, air

and nose pollution, and construction of highways

straining local economies and impacting the quality of

life of our citizens. For these reasons, the following

recommendations are made:

Recommendation 1: Compress TxDOT's $1.8 billion Border

Trade Transportation Task Force Plan

from ten years to five years.

Recommendation 2: Increase maintenance and expansion of

farm to market roads and off system

streets along the border linking NAFTA

traffic with NAFTA corridors.

Recommendation 3: Streamline right-of-way acquisition by

TxDOT on state funded projects.

Recommendation 4: Streamlining the environmental process

in the preliminary design phase of

TxDOT projects.

Recommendation 5: Review the current statutes and

procedures and create solutions that

will speed up the TxDOT consultant

selection process.

Recommendation 6: Amend the Transportation Code to

automatically waive local match

requirements for projects in the 53

economically disadvantaged counties

identified by TxDOT.

Recommendation 7: TxDOT must include local communities

in their decision making process for

the creation of state inspection

facilities.

Recommendation 8: The State of Texas should allow any

new transportation revenues and

innovative financing to be invested in

developing, improving, and

constructing NAFTA roadways that

provide access to international ports

along the Texas-Mexico border.

Workforce Development and Education

The mission developed by the Workforce Development &

Education Committee is to provide a better quality of

life for the citizens of the Texas-Mexico border region

by providing economic development opportunities,

sustainable livable wages, and promoti ng a clean,

healthy, and safe environment.

There is a gap that exists in Texas even in communities

that are experiencing growth and lower unemployment. A

lack of education and lack of skill gap that is keeping

our border residents from taking advantage of our great

Texas economy. Because so much depends on the border

residents and their ability to perform, we believe the

future of Texas depends on its willingness to close this

gap.

Recommendations by our workforce committee, if

implemented, will make it possible to help close the gap

that isolates communities from the economic mainstream of

Texas. If we work together, we can help prepare all of

our citizens to enter the labor force with the necessary

skills to earn salaries that support a higher standard of

living.

Recommendation 1: Enact legislation to permit the

creation of Workforce Development

Districts.

Recommendation 2: To effectively implement a

comprehensive array of Adult

Educational Training Programs required

to address economic development.

Recommendation 3: Appropriate a high level of funding

for the High Priority Development

Program which was enacted by the 76th

Legislature.

Recommendation 4: Increase appropriations for

universities serving distressed

communities.

Recommendation 5: Increase appropriations for the Skills

Development Fund.

Recommendation 6: Public Service Space.

Recommendation 7: The legislature needs to appropriate

funds to meet the federal matching

requirements for childcare funds that

are available to the State.

Recommendation 8: Authorize legislation that allows

Workforce Development Boards to

qualify for Telecommunications

Infrastructure Funds.

There is no denying that the Texas border is a very

important piece of the future of the great State of

Texas. Indeed, to the future of the United States of

America. For this reason, TBIC has formed alliances with

hardworking groups throughout the state in order to

understand and advocate for each other. This is why the

Transportation Committee and Workforce and Education

Committee have worked extra hard to deliver this

informative, current, and substantial proposal. The

recommendations were developed with input from

representatives of cities, counties, universities,

community colleges, private sector representatives,

international trade organizations, workforce development

organizations, and region service centers that

participated in a series of meetings, focus groups, and

discussions held throughout Texas.

The answers lie in cooperation and collaboration so that

we can have healthy competition. We have done lots of

work, but I suspect this is only the beginning. As we

approach the next legislative session, the TBIC asks that

you please make plans to help us promote the needs of the

Border and the TBIC --recommendations to Senators, State

Representatives, the Lt. Governor, and the Governor. We

need your help. We need the help of the private sector

and every citizen on the border. As you know, because of

our success, other coalitions have formed around the

state. We are prepared to continue to work with everyone

concerned to find the best possible solutions to the many

challenges we will face together in our effort to make

Laredo and other Border towns the best they can be.

Following is a summary provided by Rene Gonzalez, TBIC

Coordinator, to illustrate the history of infrastructure

along Texas borders and the goals to be realized by the

Coalition.

The Texas Border Infrastructure Coalition (TBIC) is made

up of representatives from communities along the Texas-

Mexico border region. The Coalition came together to

form a united front and develop key recommendations on

infrastructure needs of the border. Cities, counties,

businesses, community colleges, universities, and

individuals have partnered to develop strategies to

address the transportation and workforce needs of our

region. He mentioned that the Texas border continues to

be the fast est growing sector of the nation and includes

the largest inland ports in the world. NAFTA has and

will continue to benefit the State of Texas and the

entire nation. Our transportation needs as a result of

NAFTA have increased exponentially in the la st three

years.

Texas at Center of North-South Trade Axis:

The U.S.-Mexico border is the most crossed border in the

world, and Texas has the longest international border of

any state bordering either Mexico or Canada. Annually,

more than 200 million people cross the international

boundary. In 1996, more than 2.8 million trucks, 33

million cars, and 15 million pedestrians crossed the

Texas-Mexico border through 11 Texas ports of entry. In

Laredo alone, more than 2.7 million trucks crossed at the

Laredo port of entry in 1999.

Texas exports to Mexico in 1999 were $41,412,851,585.

Texas exports to Mexico have increased by 73% since 1994.

In 1999, Laredo alone handled about $32 billion in U.S.

exports and $35 billion in U.S. imports. Communities

throughout Texas and the United States are experiencing

positive economic impacts from trade flows through border

ports. At 15,000 jobs per $1 billion in exports, the $32

billion in U.S. exports through Laredo represent 500,000

U.S. jobs. At about $15.00 per hour or $30,000 per year

for manufacturing, that is about $15 billion in U.S.

wages.

Unpredictable (transportation) time periods of having

goods delivered to their facility as opposed to having

them delivered to the border increase the effective costs

by 20 to 30 percent. These costs are due to lack of

personnel at federal agencies charged with inspecting

trucks at the border, as well as, outdated computer

systems and inadequate infrastructure.

For the period of 1994 to 1998, the State of Texas

contributed 45 percent of the overall cost for border

infrastructure projects. California contributed 12

percent of the overall cost; Arizona and New Mexico

contributed 26 percent and 24 percent, re spectively.

California has two counties in the border region, Arizona

and New Mexico have four counties each and Texas has 23

counties in the border region. Arizona and New Mexico's

costs for border infrastructure projects were about $320

million a nd #363 million, respectively. The total costs

of border projects for the State of California for the

years 1994-1998 were about $1.25 billion. The total

costs of border projects for the State of Texas for the

years 1994-1998 were about $1.21 billion.

The transportation infrastructure goal of the TBIC is to

bring federal and state investment to the Texas border

region. The North American Free Trade Agreement (NAFTA)

has created tax-based pressure on local governments along

the Texas-Mexico border region. Local governments at all

border points of entry are faced with high cost of

maintenance, matching funds, and expansion needs in areas

of roadways, highways, international crossings, rail

facilities, commercial cargo airports, and sea shippi ng

cargo facilities. Local governments cannot be expected

to carry the financial burden of an entire state or

nation.

B. Request by Council Member Louis H. Bruni

1. Status report on City's acquisition of secondary

water source, with possible action.

Motion made to discuss this item in conjunction with

Item #27 (water source proposal).

Moved : Cm. Galo

Second: Cm. Bruni

For: 8 Against: 0 Abstain: 0

C. Request by Council Member Jose A. Valdez, Jr.

1. Discussion with possible action to implement a parking

permit system for the downtown parking meters. (Co-

sponsored by Council Member Juan Ramirez)

Roberto Murillo, Traffic Director, provided the City

Council with some options regarding the parking permit

system. He reported that his department has been

making several changes in improvements to the parking

meters, creating different par king zones, replacing

some of the equipment, etc. The department purchased

electronic meters a few months ago and his crew will

be installing new electronic meters to about three-

fourths of the meters needed in the downtown area. He

mentioned that the City Council recently approved the

purchase of the remaining meters and the entire city

will have new meters in the near future.

One of the options of the new electronic meters is the

potential to utilize a swipe card. He commented that

the City Council would have to approve the purchase of

additional equipment and software in order to use this

particular feature on the new m eters. Also, his

department would have to make adjustments for the

selected time limits to be programmed on the parking

meters. He explained that the card would allow the

user to swipe the card for a set amount of time in .25

cent increments.

On a related matter, Mr. Murillo mentioned that his

department receives a great number of telephone calls

regarding residential parking spaces around the magnet

schools where the employees of the schools are parking

their vehicles in the residential neighborhoods. He

is currently researching this matter to see how other

cities handle this particular situation to allow only

the residents to park their vehicles in the

residential parking spaces.

D. Request by Council Member Juan Ramirez

1. Request for a status report on the Tecolotes contract

that includes, cost to the City per game, cost of

promotions, effectiveness of promotions, average

attendance and other information relevant to the

contract, with possible action.

Goyo Lopez, Veterans Field Coordinator, provided the

City Council with a status report as to operational

costs as well as the different types of promotional

features employed to increase attendance for the

games.

Season Tickets - A total of 198 season tickets have

been sold. Of this total, 173 fans purchased tickets

in the reserved section with the remaining 25 buying

seats in the general admission section. Nearly

$20,000.00 in season tickets has b een sold. Thirty-

nine season ticket holders remain on the accounts

receivable list because of the balance of $5,140.00

owed to the City.

Average Attendance -- As of our last game on July 15,

2000, the average paid attendance for the Tecos has

hovered at the 1,030 mark. $42,832.00 in revenue has

been generated at the gate. The amount averages to a

take of $2,677.00 per game.

Novelty Sales - The sale of t-shirts, caps, hand

clappers, and Teco programs have done fairly well.

As of July 15, 2000, the novelty sales have generated

$5,751.00 in revenue for an average of $359.00 per

game.

Paid Outfield Advertisements - Fifteen signs have

been sold for a total sum of $20,640.00. Four signs

measure 12 feet in height and 32 feet in width. The

remaining 12 signs measure 12 feet in height and 16

feet in width. $16,995.00 has alr eady been

deposited and an amount of $3,645.00 remains pending.

The following is a list of paid advertisers.

International Bank of Commerce Commerce Bank

Laredo National Bank Falcon International Bank

Twins Air Conditioning (partial) El Metro

Dairy Queen Time Warner

CPL Laredo Medical Group

Mercy Health Center Mercy Health Plans

Physical Therapy Consultants E. Garza Construction

Mariscos El Pescador Conoco Pump-N-Shop

2. Discussion with possible action on the need for a

police unit at the intersections approaching the

International Bridge II during peak hour to control

traffic.

Police Chief Agustin Dovalina indicated that his

department had rerouted some units over to the Mines

Road area being that the heavy traffic had shifted

over to that part of the city due to the new bridge

opening. He stated that he would sen d some police

units to the mentioned intersections approaching

Bridge II during peak hours to handle traffic flow.

3. Discussion with possible action on the need for

parking facilities in the downtown area and

specifically in the area of San Agustin Church.

Roberto Murillo, Traffic Director, provided

information regarding the three parking facilities

available around the San Agustin Church area which

amount to 166 available spaces. He stated that there

are also 60 parking meters available withi n a two-

block radius.

Arturo Garcia, Downtown Economic Development

Coordinator, reported that there is a $1,000,000.00

allocation for parking acquisition within the central

business district. He stated that the agency has

acquired two properties: one at the corne r of

Iturbide St. and Santa Maria Ave. and a second one

at the 1500 block of Grant St. He commented that

there is approximately $600,000.00 that they can

utilize to acquire more properties.

4. Request for additional lighting on the east side of

the Civic Center along San Bernardo Ave.

Roberto Murillo, Traffic Director, reported that a

preliminary survey had been made of the area several

years ago, and at that time additional lighting had

been installed along San Bernardo Ave. He stated

that his department did identify som e areas in front

of the Civic Center that require improved lighting.

Therefore, he will be making a request to Central

Power and Light Company to provide a cost estimate

for improving the lumens and installing more lights

along that stretch of San B ernardo Ave.

IX. INTRODUCTORY ORDINANCES

7. Ordinance authorizing the City Manager to execute a lease with

Webb County for approximately 300 square feet of office space

constituting Suite No. 20 of Building No. S-1 located at 1718

E. Calton Road at the Laredo International Airport. Lease

term is for one (1) year commencing on July 1, 2000 and ending

on June 30, 2001, and may be extended for two (2) terms of one

(1) year each ending on June 30, 2002 and June 30, 2003.

Monthly rent shall be $345.00 and will be adjusted annually

during the primary and extension terms of this lease according

to changes in the Consumer Price Index.

Ordinance Introduction: City Council except Cm. E. Valdez and

Cm. Amaya

8. Ordinance authorizing the City Manager to execute a lease

agreement with Texas Migrant Council for approximately 50,442

square feet of land located on Tract 3, Block 25 (5102 North

Bartlett) at the Laredo International Airport. Lease term is

for five (5) years commencing on August 1, 2000 and ending on

July 31, 2005 with a 120-day notice to terminate by either

party. New monthly rent shall be $750.00 and will be adjusted

annually according to changes in the Consumer Price Index.

Current monthly rent is $724.93.

Ordinance Introduction: City Council

9. Ordinance authorizing the City Manager to execute a lease with

Juan Vargas d/b/a The Education Center for approximately 4,308

square feet constituting Building No. 1169 located at 4407

Foster Avenue at the Laredo International Airport. Lease term

is for three (3) months commencing on October 1, 2000 and

ending on December 31, 2000. Lessor has the option of

extending this lease for one (1) term of six (6) months ending

on June 30, 2001. New monthly rent shall be $1,625.00.

Current monthly rent is $1,537.00.

Ordinance Introduction: City Council

10. Ordinance authorizing the City Manager to execute a lease with

Border Maintenance Services, Inc., for approximately 2,504

square feet constituting Building No. 1421 located at 1817

Pappas Street at the Laredo International Airport. Lease term

is for one (1) year commencing on July 1, 2000 and ending on

June 30, 2001. New monthly rent shall be $851.00. Current

monthly rent is $725.00.

Ordinance Introduction: City Council

11. Ordinance authorizing the City Manager to execute a lease with

Webb County for approximately 300 square feet of office space

constituting Suite No. 22 of Building No. S-1 located at 1718

E. Calton Road at the Laredo International Airport. Lease

term is for one (1) year commencing on July 1, 2000 and ending

on June 30, 2001, and may be extended for two (2) terms of one

(1) year each ending on June 30, 2002 and June 30, 2003.

Monthly rent shall be $345.00 and will be adjusted annually

during the primary and extension terms of this lease according

to changes in the Consumer Price Index.

Ordinance Introduction: City Council except Cm. E. Valdez and

Cm. Amaya

12. Ordinance authorizing the City Manager to execute a lease with

Webb County for approximately 300 square feet of office space

constituting Suite No. 23 of Building No. S-1 located at 1718

E. Calton Road at the Laredo International Airport. Lease

term is for one (1) year commencing on July 1, 2000 and ending

on June 30, 2001, and may be extended for two (2) terms of one

(1) year ending on June 30, 2002 and June 30, 2003. Monthly

rent shall be $345.00 and will be adjusted annually during the

primary and extension terms of this lease according to changes

in the Consumer Price Index.

Ordinance Introduction: City Council except Cm. E. Valdez and

Cm. Amaya

X. FINAL READINGS OF ORDINANCES

Internet Availability: http://www.cityoflaredo.com

Motion to waive final reading of ordinances # 2000-O-183,

# 2000-O-184, #2000-O-185, # 2000-O-186, #2000-O-187, and

# 2000-O-188.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

13. 2000-O-183 Establishing and creating Policy and Procedures

to consider requests for Foreign-Trade Zone

Boundary (FTZ) Modifications that temporarily

transfer FTZ designation from the Laredo

International Airport Site No. 1 to private

sites not currently participating in the FTZ

Program; establishing an Administrative Fee of

$200.00 per acre per month, subject to Foreign-

Trade Zones Board approval; and authorizing the

City Manager to implement said Policy and

Procedures; providing for an ef fective date.

(City Council)

Motion to adopt Ordinance # 2000-O-183.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

2000-O-184 An ordinance designating as a one-way eastbound

that section of Mier Street, block number 100,

between Monterrey Avenue on the west and Sanders

Avenue on the east, providing for the

installation of appropriate signs to i ndicate

one-way traffic in the east direction and

providing for publication and effective date.

(Cm. John C. Galo)

Motion to adopt Ordinance # 2000-O-184.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

2000-O-185 An ordinance setting the maximum speed limits in

that portion of Spur 400 between Arkansas Ave.

and Loop 20, within the City Limits of Laredo,

Webb County, Texas, as 35mph, 45mph, as defined

in the Texas Department of Transportation Control

Section Map 3543-01. (Cm. Louis H. Bruni)

Motion to adopt Ordinance # 2000-O-185.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

2000-O-186 An ordinance setting the maximum speed limits on

that portion of US 59 between Arkansas Avenue and

IH 35, within the City Limits of Laredo, Webb

County, Texas, as 35mph, as defined in the Texas

Department of Transportati on Control Section Map

0542-01. (Cm. Louis H. Bruni)

Motion to adopt Ordinance # 2000-O-186.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

2000-O-187 An ordinance setting the maximum speed limits on

that portion of US 83 (Guadalupe and Chihuahua)

between Santa Ursula and Milmo Avenue, within the

City Limits of Laredo, Webb County, Texas, as

30mph, as defined in the Texas Department of

Transportation Control Section Map 0086-01.

(Cm. John C. Galo)

Motion to adopt Ordinance # 2000-O-187.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

2000-O-188 An ordinance authorizing the City Manager to

purchase from the Utilities Department at fair

market value, lots number one (1), and twelve

(12), block number six hundred eighty-five (685)

in the Eastern Division of the Ci ty of Laredo,

also commonly known as the 2200 Block of

McPherson in order to establish a centralized

recycling drop off site. (City Council)

Motion to adopt Ordinance # 2000-O-188.

Moved : Cm. Bruni

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

XI. RESOLUTIONS

14. 2000-R-106 A resolution resolving that the City Manager

execute a Subordination, Non-Disturbance, and

Attornment Agreement with the City of Laredo, as

Landlord, Valero Development Corporation, as

Tenant, and Falcon International Bank, as

Mortgagee, thereby subordinating to the bank's

mortgage the lease agreement for approximately

46,838 square feet of land located on Tract 1,

Block 25 at the Laredo International Airport that

was authorized by Ordinance No. 2000-O-129 dated

May 22, 2000.

Motion to approve Resolution # 2000-R-106.

Moved : Cm. Galo

Second: Cm. Bruni

For: 8 Against: 0 Abstain: 0

15. 2000-R-107 A resolution resolving that the City Manager

execute a Subordination, Non-Disturbance, and

Attornment Agreement with the City of Laredo, as

Landlord, Valero Development Corporation, as

Tenant, and Falcon International Bank, as

Mortgagee, thereby subordinating to the bank's

mortgage the lease agreement for Building No. 55

located at 4818 Thomas Avenue that was authorized

by Ordinance No. 99-O-102 dated April 19, 1999.

Motion to approve Resolution # 2000-R-107.

Moved : Cm. Galo

Second: Cm. Bruni

For: 8 Against: 0 Abstain: 0

16. 2000-R-108 A resolution resolving that the City Manager

execute a subordination, Non-Disturbance, and

Attornment Agreement with the City of Laredo, as

Landlord, Jose Mario Flores, as Tenant, and

Falcon International Bank, as Mortgagee, thereby

subordinating to the bank's mortgage the lease

agreement for Building No. 464 located at 1705

E. Hillside at the Laredo International Airport

that was authorized by Ordinance No. 2000-O-126

dated May 15, 2000.

Motion to approve Resolution # 2000-R-108.

Moved : Cm. Galo

Second: Cm. Bruni

For: 8 Against: 0 Abstain: 0

XII. MOTIONS

17. In accordance with Article IX, Section 9.03 of the Charter of

the City of Laredo, referring the proposed City of Laredo

Comprehensive Plan to the Planning and Zoning Commission and

requiring a report from the Planning and Zoning Commission on

any recommendation to be brought back before the City Council

no later than September 30, 2000.

Motion to approve.

Moved : Cm. Galo

Second: Cm. Amaya

For: 8 Against: 0 Abstain: 0

18. Consideration for approval of change order no. 1 an increase

of $81,495.00 for additional utility work to the construction

contract with Pete Gallegos Paving, Inc., Laredo, Texas, for

the 16-Inch Water Line Along State Highway 359. Funding is a

vailable in the Waterworks 1997 Bond Issue Line Extensions.

Motion to approve.

Moved : Cm. Galo

Second: Cm. Amaya

For: 8 Against: 0 Abstain: 0

19. Consideration for acceptance of the Construction of Sidewalks

and Handicap Ramps on School Approaches and other Streets

located within the Community Development Target Areas,

approximately 123 Blocks and approval of final payment in the

amount of $106, 768.52 to Pete Gallegos Paving, Inc., Laredo,

Texas. Final contract amount is $476,703.22. Funding is

available in the Community Development 25th Action Year and

Capital Improvements Project.

Motion to approve.

Moved : Cm. Galo

Second: Cm. Amaya

For: 8 Against: 0 Abstain: 0

20. Consideration for approval of change order no. 3 a decrease

amount of $15,180.50 for the balance of quantities actually

constructed in place, acceptance of the CDBG Sidewalks in

District IV Project (City of Laredo Sidewalk Construction

Project No. 10) and approval of final payment in the amount

of $58,277.00 to Pete Gallegos, Inc., Laredo, Texas. Final

contract amount is $238,317.00. Funding is available in the

Community Development 25th Action Year.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

21. Consideration to REJECT THE SOLE BID submitted by

Construction Inc. for the Police Substation located at

Santa Maria Ave. at Ortiz Street due to the base bid being

too high, and the bid package being incomplete with no

acknowledgement of addenda and a bid bond with pages missing

and authorizing the City Manager to construct the Police

Substation with in-house forces (Public Works Department).

Funding is available in the Community Development 25th Action

year -Farias Police Substation.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

22. Consideration for approval of change order no. 1 to the DPW

Service Center (EDA Project No. 08-01-03159) for an amount of

$20,316.62 for additional construction work preparation of

subgrade at Thomas Avenue by Marshall Company. Funding is

available in the Betterment Allowance already in the

contract.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 7 Against: 0 Abstain: 1

Cm. J. Valdez

23. Consideration to award a construction contract to Laredo

Class One Builders, Inc., Laredo, Texas, in the amount of

$115,000.00 for Police Substation located at Sierra Vista and

Cenizo Loop. Capital Improvement Projects - Cops Substation

District I.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

24. Consideration to authorize the City Manager to donate used

child development equipment to the City of El Cenizo, Texas,

507 Cadena, El Cenizo, Texas, 78046. This is strictly a

donation and will be at no cost to the City.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

25. Consideration for approval of the Plans and Specifications

for Phase IA and Phase 1B of the City of Laredo Residential

Sound Insulation Program, as part of the Federal Aviation

Regulation Part 150 Noise Compatibility Program; and

authorization t o advertise for bids for soundproofing work

in accordance with said plans and specifications.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

26. Consideration to authorize the payment of a vehicle allowance

of $250.00 per month to Assistant City Manager Cynthia

Collazo. This vehicle allowance is equal to the allowance

currently paid to Assistant City Manager Larry Dovalina.

This payment is to be effective as of July 1, 1999.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

XIII. STAFF REPORT

27. Status report on the Privatization of the Utilities

Department and authorization to publish Request for Proposals

from interested parties.

Cm. Bruni read a portion of the minutes of the May 1, 2000,

department meeting wherein a staff report illustrated

recommendations made to the Water Issues Committee by the

Utilities Department regarding selection of two firms to

develop a sec ondary water supply with possible action.

As per minutes of the May 1st meeting, a motion was made by

Cm. Bruni to select two companies that would submit

proposals for the City of Laredo short-term secondary ground

water development project. The two companies are: U.S.

Filter Opera ting Services, Inc. of Houston and United Water

Services, L.L.C. of New Jersey. A motion was also made to

instruct the Acting City Manager to proceed with negotiations

with Zachary Thames for the long-term water source in NW Webb

County. He mention ed that this is what spurred the Water

Issues Committee to place this item for discussion at the

meeting of July 15, 2000. He noted that it had been 90 days

since the City Council had made this directive to the

Utilities Department, and Cm. Bruni wa nted to listen to the

report that was presented before the Water Issues Committee

meeting.

Fernando Roman, Utilities Director, provided a copy of the

report presented at the Water Issues Committee meeting which

revised the goals and direction of the groundwater

development project. He stated that the two motions made at

the council meeting to negotiate for the NW water source are

accompanied by further direction received at the Water Issues

Committee meeting which is to find a "strike price", a

maximum price that the City of Laredo could pay for water

that would address certain criteria. He informed the City

Council on the progress made by the Utilities Department.

In the course of 90 days, they conducted a technical session

with the firms and consultants on June 20th. The objective

was to address any areas of discr epancies they might have

found from the proposals to the study already prepared and to

better understand the approach the companies had prepared.

His department has also had the consultants verify the cost

assumptions so that they can have the confi dence that what

we are looking at is close to the figure to be paid out.

He stated that this groundwater project has had an effect on

the impact fees calendar. He further stated that if there is

going to be a major shift in capital, the department needs to

recognize that and the best way to do this is before

committing to the CIP. He commented that he has a consultant

working on this matter and that he would be providing

modifications to the CIP by the end of the week. Based on

those figures obtained, the Utilities Department will be able

to put that in th eir overall assessment of this project.

He also reported to City Council on the matter of the "strike

price". He has been working on preparing this draft copy of

a report which provides a financial analysis of what is

required to bring water under various price scenarios,

funding sources, and rate increases, if necessary. Cost

accountants are conducting this review to ensure that all the

assumptions are correct and that his department is putting

forth a product that the City Council can rely on. They will

give him a final recommendation on Friday and at that time

his report will be finalized. He concluded that the three

firms are willing to invest their money in the verification

process and are willing to invest up to $1,000,000.00 to

verify that they have the produc t being offered for sale.

The question posed by them to the Utilities Department is

what certainty do they have that they will be awarded the

contract should they invest the money. He mentioned that the

Utilities Department would be contacting their legal

consultants whom they hired for this express purpose so they

can prepare a Letter of Intent for the City Council's review.

Mr. Roman went on to present the City Council with a report

regarding the privatization of the Utilities Department. He

provided figures on the amounts of funds needed to purchase

water at a given price. He focused on the issue being

explored of operational savings should the Utilities

Department become privatized.

Skip Stitt, a consultant for Competitive Government

Strategies out of Indianapolis, IN provided some information

on the transition process by other municipalities.

Motion to authorize to publish Request for Proposals from

interested parties on the privatization of the Utilities

Department.

Moved : Cm. Guerra

Second: Cm. Galo

For: 8 Against: 0 Abstain: 0

28. Submission of Fiscal Year 2000-2001 Annual Budget as per

Article VI, Section 6.02, Submission of Budget of the Charter

of the City of Laredo which states that "sixty (60) days

before the end of the fiscal year, or any time before th at,

the City Manager shall present to the Council, in an open

public meeting, after proper public notice, and having been

placed on the Council meeting agenda, a budget for the

ensuing fiscal year with an accompanying message".

Beto Ramirez, Budget Director, submitted the proposed annual

budget and informed the City Council of the schedule for the

upcoming budget workshops. The tentative dates will be

Wednesday, August 9, 2000, through Friday, August 11, 2000,

beginning at 5:30 p.m. and ending at 10:00 p.m.

On a related issue, Mr. Ramirez mentioned that this is the

time of the year when his department schedules the town hall

meetings at the different council districts. His estimated

cost analysis for carrying out this project is about

$41,000.00. This expenditure for the eight council meetings

plus the one at Mall del Norte includes personnel overtime

wages, materials for presentations, etc. He recommended to

the City Council that they continue with the presentation at

Mall del Norte an d eliminate the individual town hall

meetings at the council districts.

Mayor Flores stated that there has to be another avenue for

disseminating this information out to the public due to the

lower citizen turnout at past meetings.

29. Presentation on the recruitment progress of the City Manager

position, with possible action.

Dan Migura, Administrative Services Department Director,

reported that his department had received two written

inquiries from two potential candidates. There is one

additional qualified applicant bringing the total of

qualified applicants for the position to eleven.

Cm. Galo inquired whether the executive search firms that

have shown an interest in being retained for the selection

process are charging a straight fee or would it vary

depending on whether the City of Laredo hired one of their

chosen applicants.

Dan Migura responded that the search firms would provide a

qualified applicant and would charge a straight fee

regardless of whether the City of Laredo would hire that

individual or not.

30. Presentation by Graphitiks Advertisement Design Inc., on the

AVI Marketing Logo for the City of Laredo's transponders,

with possible action.

Rafael Garcia, Bridge System Director, stated that the goal

is to develop a logo that would represent our city and our

global position as a Gateway to Mexico. Having gone through

a combination of slogans and logos, his department narrowed

the choices down for the City Council to consider. He

introduced Joe Garcia of Graphitiks Advertising who gave a

presentation before council on the proposed design for the

transponders.

Joe Garcia followed with a presentation for the creation of a

slogan and logo design for the AVI marketing project. He

displayed several representations of the names and logo

designs for the transponder swipe card for consideration by

City Council. The City Council approved the "Easy Go"

slogan and logo recommended by Joe Garcia.

XIV. RECESS AND CONVENE AS THE LAREDO MUNICIPAL HOUSING CORPORATION

Motion to recess as City Council and convene as Laredo Municipal

Housing Corporation.

Moved : Cm. Guerra

Second: Cm. Bruni

For: 8 Against: 0 Abstain: 0

31. 2000-RMH-003 A resolution for the approval from the Laredo

Municipal Housing Corporation (LMHC) Board of

Directors to charge 80% of Fair Market Rents

(FMR) on all rental units that become vacant at

the Jose A. Flores Apartments, effective July

25, 2000. The proposed calculated rental rates

at 80% of FMR are as follows: $388.00 for a 2-

bedroom, $485.00 for a 3-bedroom, and $546.00

for a 4-bedroom.

Jesus J. Ponce spoke regarding his disapproval

as to the increase in rental rates because

there are certain residents that cannot pay

these increases to the rental units.

Mario Maldonado, Laredo Municipal Housing

Corporation Director, reported that rent for

those units are based on 30% of income sources.

He explained that the Laredo Housing Authority

provides assistance to families that file an

application. The Laredo Municipal Housing

Corporation does not have income li mits and

charges below fair market rents on their rental

units. He further stated that they are making

improvements to the units such as kitchen

cabinets, air conditioning and heating units,

etc.

Motion to approve.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

Motion to recess as Laredo Municipal Housing

Corporation and reconvene as the City Council.

Moved : Cm. Galo

Second: Cm. Bruni

For: 8 Against: 0 Abstain: 0

XV. ADJOURNMENT TIME: 8:45 P.M.

Motion to adjourn.

Moved : Cm. Bruni

Second: Cm. Agredano

For: 8 Against: 0 Abstain: 0

I hereby certify that the above minutes contained in pages 01 to 23 are

true, complete, and correct proceedings of the City Council meeting held

on the 24th day of July, 2000.

____________________

Gustavo Guevara, Jr.

City Secretary