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

                                  MINUTES

       M97-R-01                                          JANUARY 6, 1997

   I.  CALL TO ORDER

       With a quorum present Mayor Protem Casso called the meeting to order
       due to the Mayor running a little late.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Protem Casso led in the Pledge of Allegiance.

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

  IV.  APPROVAL OF MINUTES

       2. City Council Meeting of December 2, 1996.

          Motion to approve.

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

   V.  INTRODUCTORY ORDINANCES

       3.  Rescinding Ordinance No. 90-O-144 dated September 4, 1990
           authorizing the City Manager to execute a lease agreement with
           Saul Almaraz and wife Elvira Almaraz for a former 232 square
           feet section of Garza Street between San Eduardo and San
           Francisco Avenues and a former 233.90 square feet section of San
           Eduardo Avenue between Garza and Callaghan Streets abutting Lot
           8-A, Block 353, Western Division, which leased area consists of
           approximately 465.90 square feet for a term of (10) years with
           an option for the City to terminate by 60 days written notice
           and for a monthly rental of eleven dollars ($11.00), and
           providing for an effective date.

           Ordinance Introduction: City Council

       4.  Authorizing the City Manager to execute on behalf of the City of
           Laredo any and all necessary documents to effectively convey fee
           simple title to Elvira Almaraz for the sale at fair market value
           of the "surface only" of a tract of land containing 0.001169
           acres (509.29 square feet) more or less out of a certain 240
           square feet section of the 500 block of Garza Street between San
           Eduardo and San Francisco Avenues and out of a 269.29 square
           feet section of the 1700 block of San Eduardo Avenue between
           Garza and Callaghan Streets both sections abutting Lot 8-A,
           Block 353, Western Division, City of Laredo, Webb County Texas,
           said tract of land being encroached by the improvements of the
           abutting property, being Lot 8-A, Western Division, for
           $1,783.00, this being the fair market value, and providing for
           an effective date.

           Ordinance Introduction: City Council

       5.  An ordinance affecting participation of city employees in the
           Texas Municipal Retirement System granting the additional rights
           authorized by Section 854.202 (g) of Title 8, Texas Government
           Code, as amended; whereby any employee who is a member of the
           Texas Municipal Retirement System is eligible to retire and
           receive a service retirement annuity after 20 years of service
           at any age, and prescribing the effective date for the
           ordinance.

           Ordinance Introduction: City Council

       6.  An ordinance allowing certain employees of the city who have
           terminated previous memberships in Texas Municipal Retirement
           System, to deposit the sums so withdrawn, plus annual withdrawal
           charges, and allowing the undertaking the cost of allowing any
           such employee credit in such system for all service to which
           such employee had been entitled at date of such withdrawal, with
           like effect as if all such service had been performed as an
           employee of this city.

           Ordinance Introduction: City Council

       7.  Adopting the provisions of the Drug and Alcohol Testing Program
           for safety-sensitive positions established by Resolution No. 95-
           R-068, pursuant to the Omnibus Transportation Act of 1994 for
           commercial drivers and amending such policy to include all city
           employees and authorizing the city to implement policies and
           procedures identified herein pursuant to the city of Laredo's
           Code of Ordinances.

           Ordinance Introduction: City Council

   VI.  FINAL READINGS

        Motion to waive the final reading of ordinances #97-O-001,
        #97-O-002, #97-O-003, #97-O-004, #97-O-005, #97-O-006,
        #97-O-008, #97-O-009, #97-O-010, #97-O-011, #97-O-012,
        #97-O-013, #97-O-014, and #97-O-015.

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

     8. 97-O-001  Amending the provisions of the City of Laredo's code of
                  ordinances Chapter 2, Article II, Sec. 2-16, which sets
                  forth the departments of the City; and 2-17 which sets
                  forth the divisions in each department; thereby deleting
                  the transportation department and adding two departments
                  being the traffic and bridge department and the airport
                  department; and modifying the divisions within the
                  applicable departments; providing for publications and
                  providing for effective date.  (City Council) (As
                  Amended)

                  Motion to approve ordinance #97-O-001.

                  Moved : Cm. Perez
                  Second: Cw. Montalvo
                  For:  7               Against:           Abstain: 1
                                                           Cw. Moreno

     9. 97-O-002  Authorizing the Interim City Manager to execute a lease
                  with Terry E.  Priestap for approximately 2,040 square
                  feet constituting Building #1328 located at 4015 North
                  Jarvis Avenue.
                  1.  Lease term is for one year commencing November 1,
                      1996 and ending October 31, 1997 and may extended for
                      one year ending October 31, 1998.
                  2.  Monthly rent shall be $200.00 and will be adjusted
                      annually during the primary term and extension term
                      of this lease according to changes in the Consumer
                      Price Index.
                  Building #1328 has been vacant for the past 18 months.
                  (City Council)

                  Motion to approve ordinance #97-O-002

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

    10. 97-O-003  Approving and authorizing the execution of a 17' wide
                  utility easement for electrical facilities located at the
                  R.G. Barry leased premises at the Laredo International
                  Airport to Central Power and Light Company and
                  authorizing the Interim City Manager to execute all
                  necessary documents of conveyance effectuating same.
                  (City Council)

                  Motion to approve #97-O-003.

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

    11. 97-O-004  Authorizing the Interim City Manager to execute a lease
                  agreement with the County of Webb on behalf of the Laredo
                  -Webb County Community Action Agency to establish a Head
                  Start Program Child Development Center on the properties
                  legally described as Lots 5 and 6, Block 113, Eastern
                  Division, located on the 200 Block of West Kearney
                  Street, in the City of Laredo, Webb County, Texas; and
                  providing for an effective date.  (City Council)

                  Motion to approve ordinance #97-O-004.

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

    12. 97-O-005  Ordinance authorizing the issuance of a Special Use
                  Permit for a Sexually Oriented Business, on Lot 9, Block
                  1, Tejas Industrial Park, Unit V, located at 8307 San
                  Lorenzo Drive, providing for publication and effective
                  date.  (Jose R. Perez)

                  Motion to approve ordinance #97-O-005.

                  Moved : Cm. Perez
                  Second: Cw. Montalvo
                  For:  6               Against:  2         Abstain:  0
                                        (Cw. Moreno and Cm. Valdez)

    13. 97-O-006  Ordinance amending the Zoning Ordinance (Map) of the City
                  of Laredo by rezoning a 8.5846 acres out of Porcion 25,
                  Abstract 50, as further described by metes and bounds,
                  located south of Del Mar Boulevard east of Country Club
                  Drive from R-2 (Multi-Family Residential District) to B-3
                  (Community Business District).  (Louis H. Bruni)

                  Motion to approve ordinance #97-O-006.

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

    14. 97-O-007  Ordinance amending the Zoning Ordinance (Map) of the City
                  of Laredo by rezoning 5.332 acres out of Porcion 25,
                  Abstract 50, as further described by metes and bounds,
                  located on Del Mar Boulevard east of the Winfield
                  Subdivision from R-1 (Single Family Residential District)
                  to B-1 (Limited Business District); providing for
                  publication and effective date. (Joe A. Guerra)

                  Motion to approve ordinance #97-O-007.

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

    15. 97-O-008  Ordinance amending the Zoning Ordinance (Map) of the City
                  of Laredo by rezoning 3.1 acres out of Porcion 25,
                  Abstract 50, as further described by metes and bounds,
                  located on Del Mar Boulevard east of the Winfield
                  Subdivision from R-1 (Single Family Residential District)
                  to R-2 (Multi-Family Residential District); providing for
                  publication and effective date. (Joe A. Guerra)

                  Motion to approve ordinance #97-O-008.

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

    16. 97-O-009  Ordinance amending the Zoning Ordinance (Map) of the City
                  of Laredo by rezoning Lots 1, 2, and 3, Block 10,
                  Interamerica Distribution Park, Phase V, located on
                  Killam Industrial Boulevard east of Atlanta Drive, from
                  M-1 (Light Manufacturing District) to R-2 (Multi-Family
                  Residential District); providing for publication and
                  effective date.  (Mario G. Alvarado)

                  Motion to approve ordinance #97-O-009.

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

    17. 97-O-010  Ordinance amending Section 31-92(A) pertaining to the
                  schedule of Sewer Rates of Chapter 31 (Utilities) of the
                  Code of Ordinances by increasing the minimum rate from
                  $5.50 to $8.50, for residential customers; and from
                  $10.00 to $13.00, for commercial customers; increasing
                  the escalating rate structure by approximately 14 percent
                  for commercial and residential customers; and providing
                  for publication and effective date.  (City Council)

                  Motion to approve ordinance #97-O-010.

                  Moved : Cm. Perez
                  Second: Cw. Montalvo
                  For:  7               Against:  1         Abstain:  0
                                        Cw. Moreno

    18. 97-O-011  Ordinance amending Chapter 12 of the Code of Ordinances
                  of the City of Laredo entitled Fire Prevention and
                  Protection, by creating a new Article III, entitled
                  Industrial Districts and a new section 12-61, entitled
                  "Industrial District Designation", and creating a new
                  section 12-62.  Authorizing a methodology for allocation
                  of Fire Protection Costs; authorizing the City manager to
                  enter into and execute said "Industrial District" Fire-
                  Fighting Services contracts on behalf of the City of
                  Laredo, and providing for publication and effective date.
                  (City Council)  (As Amended)

                  Motion to approve ordinance #97-O-011.

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

    19. 97-O-012  Ordinance amending the City of Laredo's 1996-1997 budget
                  in the amount of thirty thousand five hundred fifty nine
                  dollars ($30,559) to reflect expenditures for the
                  purchase of equipment for the Laredo Police Department
                  and authorizing the City Manager to implement said
                  budget.  (Joe A. Guerra)

                  Motion to approve ordinance #97-O-012.

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

    20. 97-O-013  Ordinance amending the City of Laredo's Special Police
                  Program 1996-1997 budget in the amount of $96,228.00, for
                  a supplemental grant to the Cops Ahead Grant from the
                  U.S. Department of Justice for the first year funding of
                  the "Universal Hiring" Program for the period of October
                  1, 1996 through September 30, 1997, and authorizing the
                  Interim City Manager to implement said budget.(Cm. Perez)

                  Motion to approve ordinance #97-O-013.

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

    21. 97-O-014  Approval of an amendment to the contract with the Texas
                  Department of Health and a budget in the amount of
                  $192,828, for the Tuberculosis Prevention/Control
                  Projects of the City of Laredo Health Department for the
                  period beginning January 1, 1997, through December 31,
                  1997; and increasing Revenue Line Item No. 226-0000-323-
                  4071 from $0 to $192,828.00, and Expenditure Line Item
                  No. 226-6057 from $0 to $192,828.00.  (Jose R. Perez)

                  Motion to approve ordinance #97-O-014.

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

    22. 97-O-015  Ordinance to transfer Designated Fund Balance for
                  contingencies to Unreserved Fund Balance and amending the
                  City of Laredo's 1996-1997 General Fund budget to
                  appropriate from the Unreserved Fund Balance $288,000 as
                  a Reserve Appropriation for Capital Improvements to be
                  used only upon the prior approval of City Council and
                  authorizing the City Manager to implement said budget.
                  (Jose R. Perez)

                  Cw. Moreno requested a legal opinion if this transfer
                  is legal.

                  Florencio Pea, Interim City Manager, stated that the
                  Internal Audit Department opinion was that it meets
                  governmental standards, but he will have a legal opinion
                  by the next council meeting.

                  Motion to approve ordinance #97-O-015.

                  Moved : Cm. Perez
                  Second: Cw. Montalvo
                  For:  7               Against:  1         Abstain:  0
                                        Cw. Moreno

 VII.  RESOLUTIONS

    23. 96-R-150  Appointing the nominee of the Mayor and City Council
                  members to an Ad Hoc Ordinance Review Committee.  City
                  Council directed staff to develop this resolution.

                  Motion appointing the nominee of Cw. Moreno to an the Ad
                  Hoc Ordinance Review Committee as follows:

                  Councilmember                  Appointee

                  Cw. Moreno, District IV       Joseph Hein

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

    24. 97-R-001  Appointing of the nominees of the City Council Ad Hoc
                  Nominating Committee of the Convention and Visitors
                  Advisory Board.

                  Motion appointing the nominees of the City Council Ad Hoc
                  Nominating Committee of the Convention and
                  Visitors Advisory Board as follows:

                                                 Appointee
                  Representative of the
                      Hotel-Motel Assn:   D.J. Utterback - La Posada
                                          Ester Firova - Holiday Inn
                                          John Alvarez - Motel 6 N.  Dan
                                          Rodriguez - Red Rood Inn
                  Representative of the
                   Retail Merchants Sec:  Carlos Garza - Dillards
                                          Les Norton - Downtown Merch.
                                          Robin Anderson - N Creek
                  Representative of
                  Community/Civic Bus.    Louis Shuey - Mi Laredo
                                          Sharon Cruz - Caminos Del Rio
                  Representative of the
                       Restaurant Assn:   Lewis Lepovitz
                                           Guapos/Laredo Sports Bar
                  Representative of Ldo.
                    Chamber of Commerce:  Robert Sepulveda-
                                           Chairman of the Board
                  Moved : Cm. Perez
                  Second: Cm. Valdez
                  For:  8               Against:  0         Abstain:  0

    25. 97-R-002  Authorizing the City Manager to submit a grant applica-
                  tion to the Governor's Office for tenth year funding of
                  personnel and direct operating expenses for a Multi-
                  Agency Narcotics Task Force in the amount of $700,756.00
                  with the City designating $342,563.00 in matching funds
                  for a total of $1,043,319.00 and authorizing the City
                  Manager to sign any and all documents pertaining to this
                  Grant application. The task force works in concert with
                  the Laredo Office of the Drug Enforcement Administration
                  (DEA) in enforcing federal and state narcotics laws in
                  the city of Laredo and the counties of Webb, Zapata, Jim
                  Hogg, and La Salle.  The cash match will be derived from
                  existing program generated income.

                  Motion to approve resolution #96-R-150.

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

    26. 97-R-003  Accepting 31.0 acres of land more or less in Porcion 38
                  Abstract 472 Tadeo Sanchez Original Grantee fro use as
                  park and open space.

                  Motion to approve resolution #97-R-003.

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

    27. 97-R-004  Accepting 18.0 acres of land included in Block 21, Lot 1
                  River Oaks Park Subdivision from the Killam Development
                  Corporation for use as park and open space, and granting
                  credit against park dedication requirements in future
                  development.

                  Motion to approve resolution #97-R-004.

                  Moved : Cm. Perez
                  Second: Cm. Guerra

                  Joe Garza, Parks & Recreation Director, requested that
                  this item be tabled and placed at the next meeting.

                  Cm. Guerra withdrew his second and motion died for
                  lack of a second.

                  Motion to place this item on the meeting of January 20,
                  1997.

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

VIII.  MOTIONS

      28. Approval of bid specifications and authorization to advertise for
          bids for the following:
          a) annual contract - automotive parts, Fleet Division
          b) annual contract - automotive batteries, Fleet Division
          c) annual contract - lab services, Utilities Department
          d) annual contract - PVC & related material, Utilities
             Department, Wastewater Division
          e) annual contract - water repair clamps, Utilities Department,
             Water Distribution Division
          f) trailer mounted trash pump, Utilities Department, Water
             Distribution Division
          g) sportstrainer (weight equipment system) - Parks and Recreation
             (recreation center equipment)
          Bids for annual contracts will be received on January 30, 1997
          with a tentative bid award for February 18, 1997.  Bids for trash
          pump and sportstrainer will be received on January 23, 1997 with
          a tentative bid award for February 3, 1997.

          Motion to approve bid specifications and authorization to
          advertise.

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

      29. Approval of construction plans and authorization to advertise for
          bids for a Freight Booth in Lane 6 at the Juarez-Lincoln
          International Bridge No. 2 with tentative award on February 3,
          1997.  Funding is available in the Bridge Fund-Toll Plaza
          Improvements.

          Motion to approve construction plans and authorization to
          advertise for bids for a Freight Booth in Lane 6 at the Juarez-
          Lincoln International Bridge No. 2 with tentative award on
          February 3, 1997.

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

      30. Authorizing the Interim City Manager to request proposals from
          local homeless service providers for the award of $74,750 in 1996
          Emergency Shelter Grant funds for the rehabilitation of a
          homeless shelter(s) and $34,500 for the provision of homeless
          prevention services as stipulated in the 1996 Consolidated One
          Year Action Plan submitted to and approved by the U.S. Department
          of Housing and Urban Development (HUD).

          Motion authorizing the Interim City Manager to request proposals
          from local homeless service providers for the award of $74,750 in
          1996 Emergency Shelter Grant funds for the rehabilitation of a
          homeless shelter(s) and $34,500 for the provision of homeless
          prevention services as stipulated in the 1996 Consolidated One
          Year Action Plan submitted to and approved by the U.S. Department
          of Housing and Urban Development (HUD).

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

      31. Award of contract to the SOLE BIDDER, Hovertechnics, St.  Joseph,
          MI., in the amount of $17,605.00, for the purchase of a rescue
          hovercraft boat for the Fire Department.  The Department is
          requesting authorization to purchase this special rescue craft
          due to the difficulty in launching a regular rescue boat on the
          river banks.  Funding is available in the Fire Department's
          capital outlay budget.

          Motion to award of contract to Hovertechnics in the amount of
          $17,605.00, for the purchase of a rescue hovercraft boat for the
          Fire Department.

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

      32. Authorizing a three year lease purchase contract, in the total
          amount of $131,213.00, with IBM Corporation, Corpus Christi,
          Texas, for an upgrade of the AS/400 computer processor, and the
          addition of memory and disk capacity, for the computer network
          used by the Police and Fire Departments.  This upgrade will allow
          for faster processing and storage, and the retrieval of the data
          base files used in the Police Department's Crime and dispatching
          software, and for the Fire Department's CHIEF's software for EMS
          and fire reporting.  The terms of this contract will be for three
          years at an affected interest rate of 3.97%.  Police Trust funds
          will be used for this upgrade.

          Motion to authorize the three year lease purchase contract, in
          the total amount of $131,213.00, with IBM Corporation.

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

      33. Refund of property taxes in various amount to the following
          individuals for companies to:
          a. Falcon National Bank in the Amount of $1,947.55, as a result
             of an overpayment;
          b. Pyle Investments, Inc. in the amount of $1,653.78, as a result
             of the property being double assessed;
          c. Wal-Mart Stores, Inc. in the amount of $9,626.96, as a result
             of payment in error.

          Motion to approve the refund of property taxes.

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

  IX.  CITY MANAGER'S REPORT

      34. Report on the results of the surveys of the residents living on
          the 1700 through 2200 blocks of Lafayette Street, abutting the
          West Laredo Overpass.

          Erasmo Villarreal from the Community Development Department
          reported the results of the options selected by council at the
          meeting of December 2, 1996 which are as follows:

          Option II preferred by residents ......... 38
            Relocate all owner-occupants from 1700-2200 Lafayette St.
                                           24 at a cost of $1,848,000
            Relocate all tenants on area - 25 at a cost of    375,000
            Acquisition cost (rental properties)              635,000
            Incidental Expenses (appraisal & title policy)     93,100
            Demolition costs (49 structures)                  392,000
                      TOTAL .............................. $3,343,100

          Option VI preferred by residents .........  9
            Requires the acquisition of approximately 5 feet of additional
            right-of-way from Main to San Ignacio.  It is estimated that it
            will require approximately $612,480 to complete the project.

          Mr. Villarreal stated that 38 residents preferred option II, nine
          (9) residents preferred option VI and there were (2) two that did
          not have any preference.  He added that the two options would
          qualify under the Community Block Grant.

          Florencio Pea, Interim City Manager, pointed out that the cost
          estimate for the road construction is not included.  He said that
          the cost estimate is $3.3 million and includes land acquisition,
          demolition and relocation expenses, but does not include the
          pavement of the road on both sides of the bridge.

          Mayor Ramirez asked that if council proceeds with option II, is
          there a way to be able to break it so that they can start with
          the residents that are closest to the bridge, relocate them first
          and work our way out of that area.

          Mr. Pea stated that the next step is to meet with HUD, he said
          that they can phase the project as long as they make the whole
          project.  They can phase the purchases based on the availability
          of money this year and then in 1997/98.  They could phase it and
          get HUD to agree to that because they still need to do
          environmental hearings, etc. before monies can be released.

          Motion to go ahead and proceed with option #2 in phases, and come
          back to council with different phases.

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

      35. To formalize contract with the firm of Miller and Van Eaton,
          P.L.L.C. for legal representation of the City of Laredo in
          matters other than related to cable and telecommunications before
          the Congress, Executive Branch, and independent agencies of the
          federal government.

          Motion to approve to formalize the contract with Miller and Van
          Eaton.

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

   X.  COMMUNICATIONS

       a. Presentation by Rafael Lerma, Jr., concerning his desire for a
          sidewalk refund at 1907 Lafayette St.

          Mr. Pea explained that Mr. Lerma who has handicap problems,
          invested in widening the sidewalk, and asked council to reimburse
          him, and council authorized that he be reimbursed.

          Mayor Ramirez suggested that a time certain be set for claims,
          that maybe within 30 days if not they do not have a valid claim.
          He suggested that they send them a letter and advise them, only
          for sidewalk improvements and only if they did these improvements
          during the last two years from the date of construction of the
          bridge.

          Motion to approve to reimburse Mr. Lerma upon presentation of the
          invoice and that staff proceed in notifying residents that they
          can make a claim within 30 days and/or if they do have improve-
          ments that they would still be included in the negotiations for a
          new relocation expense that the city would be liable for.

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

       b. Motion to cancel the meeting of January 13th and reschedule the
          item of the selection of a City Manager to the meeting of January
          27, 1997.

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

  XI.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

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

       1. Appointing C.P. Jose Manuel Suarez Lopez and A.A. Lic.  Sergio
          Lujan as the Mexican representatives to the City's Transportation
          and Traffic Safety Advisory Committee.

          Motion appointing C.P. Jose Manuel Suarez Lopez as the voting
          member and A.A. Lic. Sergio Lujan as the alternate as the Mexican
          representatives to the City's Transportation and Traffic Safety
          Advisory Committee.

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

    B.  Requests by Councilmember Louis H. Bruni

       1. Discussion and possible action concerning future City Council
          approval of all detention ponds and the status of the ordinance
          requiring the concrete lining of all future detention ponds.

          Cm. Bruni stated that during his weekly tours he came upon
          another retention pond that he wasn't aware of in district.
          He said he wants to be notified before any retention ponds are
          approved and constructed in his district.  He added that this
          retention ponds pose more of a risk, additional flooding, health
          problems, and he has never been in favor of them, and thinks that
          they do not serve any purpose and wants to direct staff to prove
          to him that they are needed or finding some other ways of
          addressing the problem that this retention ponds are suppose to
          stop.

          Florencio Pea, Interim City Manager, replied that there would be
          no problem in having the Planning Director advise his office
          whenever there is a retention or detention pond being proposed by
          a developer and notifying him, but as far as the authority there
          may be a requirement that they would have to change an ordinance,
          but there is a question in his mind that might need be legally
          researched as to whether the maintenance of retention pond is the
          developers or if it is a requirement of public maintenance.  The
          council may be able to provide an ordinance that would require
          council acceptance of those retention ponds.  He concluded by
          saying that this requires legal research to see if that can be
          done.

          Motion to instruct staff that all future retention ponds, before
          they are approved and constructed, that the council member be
          notified by staff.

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

       2. Status report on the Chacon Creek Interceptor Project, with
          possible action.

          Fernando Roman, Acting Utilities Director, reported that the
          interceptor as currently designed meets the requirements of East,
          Southeast Laredo, and in the future an area northeast of the
          present development, including the Inner Loop area north of the
          Casa Blanca Lake, for the next 20 years.  The project includes
          approximately 23,000 ft. of 54" line form the Southside
          Wastewater Treatment Plant to the Chacon Creek and Piedra China,
          followed by 5,500 ft. of 42" line and 10,000 ft. of 36" line to
          Hwy. 59 and the Inner Loop.  This project will eliminate
          approximately 25 lift stations in east Laredo.

          The project is estimated to cost close to $12.8 million with one
          million additional to reach the area north of the East Corridor
          Industrial Park.  Currently the City has $9.8 million consisting
          of $6.1 million from an EPA grant and $3.7 million from a bond
          sale.  A sale of $4 million will raise the capital needed to
          complete the project.

          The project is scheduled to bid in October of 1997, unless the
          acquisition of right-of-way can be expedited.  Construc-tion will
          begin in December 1997 and will have a completion date of June
          1999.  The critical junction of Chacon Creek and Piedra China
          will be reached in December 1998 and will enable the colonias
          project to be connected to the system.

       3. Status report on the Santos Trailer Park, with possible action.

          Erasmo Villarreal reported that they have been in contact with
          the attorney that represents this family, there are still two
          tenants residing there and one of the tenants has said since day
          one that he will not move until he is evicted.  The other tenant
          is a tenant that has been in California, he came back recently
          and has been looking for a place to his move trailer.  They have
          advised the attorney representing them that it is a matter that
          they need to follow an eviction notice to able to clear that
          property.  He has advise and said that the legal proceeding have
          been prepared, that the attorney for this matter Mr. Henry
          Cuellar will be reviewing this and as soon as it is reviewed they
          will be filing with the JP to remove these people.

    C.  Requests by Councilmember Eliseo Valdez, Jr.

       1. Request to have a traffic study done at the intersection of
          Springfield and Saunders Avenue with possible action.  The
          traffic stacks back on Springfield, north of Saunders and causes
          major traffic congestion during peak traffic hours.

          Roberto Murillo, Traffic Engineer, stated that the intersection
          of Springfield is a one lane road which is one of the major
          limitations there.  The other question is the elevation on
          Saunders, it has a hump as you go over and that creates many
          delays.  He said that the State has a project this year where
          they will be redoing and leveling Saunders Street and this will
          be helping with that situation.  He concluded by saying that they
          will do a traffic count to see what they can do in terms of
          timing and from there they can adjust the timing and do the best
          they can with the traffic light.

          Motion to instruct staff to conduct a traffic study at the
          intersection of Springfield and Saunders Avenue and look at the
          possibility of purchasing additional right-of-way at the corner
          to create a right hand turning lane.

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

    D.  Requests by Councilmember Mario Alvarado

       1. Request for staff to determine ownership of Ortiz Street (1600
          through 1700 blocks) adjacent to Farias Elementary School, west
          of Santa Maria.  Does it belong to city or school?

          Mr. Erasmo Villarreal reported that a research was done which
          shows that the street was closed by the Planning & Zoning
          Commission on October 15, 1987, but there was no official action
          taken in form of an ordinance by the City Council to officially
          close this street, so these streets belong to the city.

          Cm. Alvarado stated that there is no problem, the school is in
          agreement that if we were to open this particular street it would
          help with the traffic flow and the drop-off and pickup of the
          children, the property is now fenced, it is part of the property
          now fenced by the school.  He suggested that we now go back to
          the appropriate people to discuss this particular project, to
          open the Ortiz Street and to make it viable.  He also suggested
          that it be done on a loop type.

          Rogelio Rivera, City Engineer, reported that there is a project
          on the 1998 Capital Improvements Program for the school drop-offs
          on several schools, subject to the funding being available on a
          50-50 match basis with L.I.S.D.

       2. Study and recommendation from staff to expand truck route from
          Riverside to Industrial Blvd.  (Approximately 3 blocks).

          Rogelio Rivera, City Engineer, reported that the area by Micro is
          in litigation, there was supposed to have been a
          court settlement and he has to confirm with legal to see where we
          are.  In the area where the mixing plant is there is a wall that
          is encroaching half way down the middle of a 60 ft. right-of-way
          and that particular area can be worked out.  He added that
          further to the north where they make the turn to connect to the
          pave street they will probably need additional acquisition of
          right-of-way.

       3. Request for cost estimate on the widening and paving of Santa
          Maria from Markley to Del Mar Blvd.

          Rogelio Rivera, City Engineer, reported that there is a cost
          estimate, the budget calls for $3 million dollars for road paving
          improvements and $1.6 million dollars for drainage to be done in
          '98-'99.  The $1.6 million is there for the drainage only.

          Cm. Alvarado stated that we need to start looking at a way to
          fund the paving.

          Mayor Ramirez stated that maybe we can see if it can come out of
          CD if funding continues and if it is eligible.

          Florencio Pea, Interim City Manager, stated that this is under
          investigation right now, preliminary they have told us that it is
          primarily serving a commercial area and not a low income area,
          they have to see if it is eligible.  Mr. Pea stated that council
          may need to start planning in the summer of this year for a
          possible bond issue for late 1997 or early 1998 since we are
          going to have that window of opportunity in 1998-99 of close to a
          million dollars which means $10 million worth of projects without
          having to impact the taxes.

          At this time Mr. Rene Garcia spoke of final reading of ordinance
          97-O-012 in reference to industrial districts.  He said he was
          representing the industrial parks, their main concern was that
          there was a possibility that fire protection services might be
          disrupted.  They were assured by council that this was not going
          happen.  His first option would be that council go ahead and
          pursue an agreement with Webb County honor their contract of
          $400,000.00 and bring this item up next year.

          He suggested that the methodology for cost be discussed in length
          and that the allocation basis that the adjusted city tax rate per
          100 valuation multiply by the industrial district valuation
          define to include less the free port exemptions.  He asked that
          they exclude the free port exemptions.  That the formula under
          item A also include all the income from all the services provided
          by the Fire Department.  The other item is what do we do about
          unimproved property, this ordinance identifies three areas Unitec
          Industrial, Pinto Valle which has no improvement on it other than
          the streets, they have no need for fire protection services,
          there is no incentive for them to negotiate with the city.  He
          suggested that a minimum cost of $250.00 for unimproved
          properties.

          Cm. Bruni suggested that Mr. Garcia talk to staff about his
          suggestions because a vote was already taken.

          Mayor Ramirez suggested that council give direction to staff in
          this regard and that they come back with a recommendation to
          reduce the charge for unimproved properties within industrial
          areas and that they get charged that way until they develop those
          industrial properties.

          Mayor Ramirez suggested that staff take additional action on
          those points that are valid such as the unimproved property and
          the free port exemptions.

XII.  PUBLIC HEARINGS

      37. Public hearing amending Section 24-82.4.1 of the Laredo Land
          Development Code relating to the permitted dimensions for on-
          premises free-standing signs; providing for publication and
          effective date.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending Section 24-82-4.1 of the Laredo Land
          Development Code relating to permitted dimensions of on-premises
          free-standing signs; providing for publication and effective
          date.

          Motion to open the public hearing.

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

          Keith Selman from the Planning Staff, made the presentation
          before the Council.

          Ron Whitehawk, representing Paul Young, stated that what is
          needed in order to handle Mr. Young's situation is that free
          standing signs on lots that are zoned B-4 be: 200 sq. ft. of
          signage for the first 100 linear feet of frontage plus 1.5 sq.
          ft. of signage for each additional linear foot of frontage over
          100 ft. with a cap of 1,200 sq. ft. of total signage.

          Motion to amend the ordinance by changing the provisions of
          1.0 sq. ft to 1.5 sq. ft.; over 200 ft. to 100 ft.; and the cap
          of 750 sq. ft. to 1,200 sq. ft. of total signage.

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

          Motion to close the public hearing and introduce the ordinance as
          amended.

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

          Ordinance Introduction: City Council

      38. Public hearing concerning an ordinance reorganizing subsections
          (A) through (C) and creating subsection (D) "Charges for Copies
          of Public Information from other City Departments," of section 2-
          3, of Chapter 2 of the Code of Ordinances of the City of Laredo,
          thereby codifying and amending Ordinance No. 91-O-249; providing
          for an increased charge for birth certificates, definitions and
          additional charges for copies to be accessed; providing
          severability; and providing for an effective date and
          publication.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance reorganizing subsections (A) through (C) and creating
          subsection (D) "Charges for Copies of Public Information from
          other City Departments," of section 2-3, of Chapter 2 of the Code
          of Ordinances of the City of Laredo, thereby codifying and
          amending Ordinance No. 91-O-249; providing for an increased
          charge for birth certificates, definitions and additional charges
          for copies to be accessed; providing severability; and providing
          for an effective date and publication.

          Motion to open the public hearing.

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

          Phyllis Colon, Tax Assessor-Collector, made the presentation
          before the council.

          Jesus Ponce asked for clarification of new charges.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      39. Public hearing amending Section 30-2, titled "Fee for issuance of
          property tax certificates," of Article I, of Chapter 30,
          taxation, of the code of ordinances of the City of Laredo by;
          thereby increasing the fee charged for tax certificates;
          providing severability; and providing for an effective date and
          publication.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending Section 30-2, titled "Fee for issuance of
          property tax certificates," of Article I, of Chapter 30,
          taxation, of the code of ordinances of the City of Laredo by;
          thereby increasing the fee charged for tax certificates;
          providing severability; and providing for an effective date and
          publication.

          Motion to open the public hearing.

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

          Phyllis Colon, Tax Assessor-Collector, made the presentation
          before the Council.

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      40. Public hearing and authorization to reprogram 18th and 19th
          Action Year Community Development Block Grant Program (CDBG) fund
          balances totaling $335,676 to carry out the following projects:
          1.  Public Improvements associated with the Cigarroa, Farias, and
              K. Tarver Recreational Centers  . . . .  $189,200
          2.  Paving Project 59 Grants  . . . . . . . . .    26,480
          3.  National Pollution Discharge Elimination System
              (NPDES) Stormwater Management Plan . . . . .   44,996
          4.  Graffiti Removal Program   . . . . . . . . .   75,000
                               TOTAL   . . . . . . . . . .  $335,676
          CDBG fund balances totaling $633,886 will still remain available
          for future reprogramming.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      41. Public hearing authorizing the issuance of a Special Use Permit
          for an above ground diesel fuel storage tank, on Lot 1, Block
          2001, South Laredo Industrial Park, located at 417 Boom Town
          Road.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the issuance of a Special
          Use Permit for a 10,000 gallon above ground diesel storage tank,
          on Lot 1, Block 2001, South Laredo Industrial Park, located at
          417 Boom Town Road, providing for publication and effective date.

          Motion to open the public hearing.

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

          Rogelio Cabello with Halliburton stated that they already have
          underground tank and do not have any problems, but they want to
          build an above storage tank.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: Cm. Perez

      42. Public hearing amending the City of Laredo's 1996-1997 annual
          budget in the amount of $247,923.00 for a grant awarded by Texas
          Natural Resource Conservation Commission to implement the Ecology
          Demonstration Showcase at Father Charles McNaboe Recreational
          Complex for the period from 11/01/96 to 9/30/97 and authorizing
          the Interim City Manager to implement said budget.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1996-1997 annual budget
          in the amount of $247,923.00 for a grant awarded by Texas Natural
          Resource Conservation Commission to implement the Ecology
          Demonstration Showcase at Father Charles McNaboe Recreational
          Complex for the period from 11/01/96 to 9/30/97.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      43. Public hearing amending the City of Laredo's 1996-1997 annual
          budget by creating a right-of-way maintenance crew for the Public
          Works Department composed of five (5) laborers and one heavy
          truck driver for a total of $75,808, and authorizing the City
          Manager to implement said budget.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1996-1997 annual budget
          by creating a right-of-way maintenance crew for the Public Works
          Department composed of five (5) laborers and one heavy truck
          driver for a total of $75,808, and authorizing the City Manager
          to implement said budget.

          Motion to open the public hearing.

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

          Ordinance Introduction: City Council

      44. Public hearing amending the City of Laredo's Garbage Ordinance
          dated June 6, 1977 and redefining the word "Rubbish" to mean tin
          cans, bottles, papers, tree limbs (which shall be cut into
          lengths not exceeding 6 feet), papers etc., from any premises
          within the city limits, and authorizing the Interim City Manager
          to implement said amendment.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's Garbage Ordinance dated
          June 6, 1977 and redefining the word "Rubbish" to mean tin cans,
          bottles, papers, tree limbs (which shall be cut into lengths not
          exceeding 6 feet), papers, etc., from any premises within the
          city limits, and authorizing the Interim City Manager to
          implement said amendment.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

XIII.  MOTION TO RECESS AND CONVENE AS THE LAREDO MUNICIPAL HOUSING
       CORPORATION

       Motion to recess as City Council and convene as The Laredo Municipal
       Housing Corporation.

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

      45. Approval of bid specifications and authorization to advertise for
          bids for the installation of security fencing at the Tomas Flores
          Apartments.  This project has been identified in the 1997 Capital
          Improvement Project budget.  Approximately 2,265 linear feet will
          be installed around the perimeter of this apartment complex.

          Motion to approve the bid specifications and authorize to
          advertise for bids.

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

          Motion to adjourn as The Municipal Housing Corporation.

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

 XIV.  MOTION TO RECESS AND CONVENE AS THE LAREDO MASS TRANSIT BOARD

       Motion to recess as City Council and convene as The Mass Transit
       Board.

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

      46. Public Hearing and motion to realign the following three El Metro
          Bus Routes in order to increase efficiency, productivity, and on-
          time performance:
          a) Route #14 Santa Rita
          b) Route #9  Market
          c) Route #15 Main/Riverside

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing, realign the three routes and
          introduce the ordinance.

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

          Ordinance Introduction: City Council

      47. Motion to adopt a logo, colors and typeface for use on all EL
          METRO-related media.

          Motion to keep the current/present logo.

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

      48. Motion to suspend advertising on El Metro buses.

          Motion to approve.

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

      49. Approval of bid specifications and authorization to advertise for
          bids for the purchase of the following equipment and furniture
          for the Transit System Intermodel Downtown Transit Center:
          a) (1) three wheel street legal police vehicle (cushman type)
          b) (1) parking lot sweeper/scrubber
          c) office and lobby furniture.

          Motion to approve bid specifications and authorize to advertise
          for bids.

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

          Motion to adjourn as The Mass Transit Board and convene as City
          Council.

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

  XV.  ADJOURNMENT

          Motion to adjourn.

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

          Adjournment time:  8:50 p.m

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 24 ARE
TRUE COMPLETE AND CORRECT PROCEEDINGS OF THE REGULAR CITY COUNCIL MEETING
HELD ON THE 6TH DAY OF JANUARY, 1997.  A CERTIFIED COPY IS ON FILE AT THE
CITY SECRETARY'S OFFICE.

                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY