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

                                   MINUTES

       M97-R-02                                              JANUARY 20, 1997

   I.  CALL TO ORDER

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

  II.  PLEDGE OF ALLEGIANCE

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

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

  IV.  APPROVAL OF MINUTES

       2.  City Council Meeting of December 16, 1996
           City Council Meeting of January 6, 1997

           Motion to approve.

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

   V.  INTRODUCTORY ORDINANCES

       3.  Authorizing the Interim City Manager to execute a lease amendment
           to the lease between the City of Laredo, as Lessor, and Laredo
           Coachworks, Inc., as Lessee, dated January 6, 1992 and approved by
           Ordinance No. 92-O-001; said Amendment will change Lessee's name
           from Laredo Coachworks, Inc., to LCW Automotive Corporation;
           providing for effective date.

           Ordinance Introduction: City Council

       4.  Authorizing the City Manager to execute a partial release of
           covenant (Vol. 1190 pg. 170 W.C.D.R.) for property originally
           platted as the Plaza, Southgate II, Units 1 and 2 (Vol. 3 page 11,
           W.C.P.R.) as replatted for the Southgate Subdivision Unit II-A,
           Phase 1, Planned Unit Development filed in Vol. 16 pgs. 69-70
           W.C.P.R.

           Ordinance Introduction: City Council

       5.  Granting a license to Aleystra De Mexico for the use of a
           telecommunications PVC conduit on Juarez Lincoln International
           Bridge and on city right-of-way on Iturbide Street.

           Ordinance Introduction: City Council

   VI.  FINAL READINGS
        Motion to waive the final reading of ordinance #97-O-016, #97-O-017,
        #97-O-018, #97-O-019, #97-O-020, #97-O-022, #97-O-023, #97-O-024,
        #97-O-025, #97-O-026, and #97-O-027.

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

       6. 97-O-016  Ordinance 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.

                    Motion to approve Ordinance 97-O-016.

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

       7. 97-O-017  Ordinance 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.  (City Council)

                    Motion to approve Ordinance 97-O-017.

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

       8. 97-O-018  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. (City Council)

                    Motion to approve Ordinance 97-O-018.

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

       9. 97-O-019  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.  (City Council)

                    Motion to approve Ordinance 97-O-019.

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

      10. 97-O-020  Ordinance 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.  (City Council)

                    Motion to approve Ordinance 97-O-020.

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

      11. 97-O-022  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 approve Ordinance 97-O-022.

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

      12. 97-O-023  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.  (City Council)

                    Motion to approve Ordinance 97-O-023.

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

      13. 97-O-024  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.  (Councilman Jose R. Perez)

                    Motion to approve Ordinance 97-O-024.

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

      14. 97-O-025  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 and authorizing the Interim City
                    Manager to implement said budget.  (City Council)

                    Motion to approve Ordinance 97-O-025.

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

      15. 97-O-026  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 approve Ordinance 97-O-026.

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

      16. 97-O-027  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 approve Ordinance 97-O-027.

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

 VII.  RESOLUTIONS

      17. 97-R-005  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 $713,062.00
                    with the City designating $370,905.00 in matching funds
                    for a total of $1,083,967.00 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 97-R-005.

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

      18. 97-R-006  Authorizing the City Manager to accept a Local law
                    Enforcement Block Grant from the U.S. Department of
                    Justice in the amount of $212,811.00, with the City
                    designating $23,646.00, in matching funds for a total of
                    $236,457.00, for two year funding of this grant beginning
                    October 1, 1996, through September 30, 1998.  The purpose
                    of this grant is to provide units of local government
                    with funds to underwrite projects to reduce crime and
                    improve public safety.  This grant will provide funds to
                    hire an additional four officers to include salaries,
                    fringe benefits, and equipment.

                    Motion to approve Resolution 97-R-006.

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

      19. 97-R-007  Authorizing the City Manager to accept a grant from the
                    Texas Department of Transportation in the amount of
                    $37,500.00, with the City designating $12,500.00, in
                    matching funds for a total of $50,000.00, for funding of
                    the "El Protector" Traffic Safety Education Program for
                    the period of October 1, 1996 through September 30, 1997.
                    This grant pays the salary, overtime pay, fringe bene-
                    fits, office supplies, and travel of one Police Officer.
                    This will be the third year of funding for this program.

                    Motion to approve Resolution 97-R-007.

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

      20. 97-R-008  Authorizing the City Manager to enter into an agreement
                    with the Department of Treasury/U.S.  Customs Service for
                    the reimbursement of $50,000.00, to the City of Laredo
                    for the period of October 1, 1996, through September 30,
                    1997, for overtime wages for Police Officers to work with
                    the U.S. Customs Service in the Operation Cooperation
                    Program. This program utilizes off-duty Police Officers
                    to search for stolen vehicles and contraband crossing
                    into Mexico at the City's International Bridges. This
                    operation will be in its eighth year of funding.

                    Motion to approve Resolution 97-R-008.

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

      21. 97-R-009  Authorizing the City Manager to accept a grant in the
                    amount of $78,916 from the Texas Department of Health for
                    the HIV/AIDS counseling, testing, referral and partner
                    elicitation/notification project of the City of Laredo
                    Health Department for the period beginning January 1,
                    1997, through December 31, 1997; and authorizing the City
                    Manager to execute the contract.

                    Motion to approve Resolution 97-R-009.

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

      22. 97-R-010  Authorizing the City Manager to accept a grant in the
                    amount of $24,000.00, from the Texas Department of Public
                    Safety, Division of Emergency Management for the purpose
                    of conducting a Hazardous Materials Transportation Route
                    Study, Phase II (Vulnerability Study) for the City of
                    Laredo; and authorizing the City Manager to request for
                    proposals to conduct this Vulnerability Study.

                    Motion to approve Resolution 97-R-010.

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

      23. 97-R-011  Expressing the City of Laredo's support of Senator Tom
                    Haywood's proposed senate bill 76 "Communities Enrichment
                    Act," which would require the Texas Lottery Commission to
                    return five cents from every dollar of the Texas State
                    lottery ticket sales to the cities and counties where
                    sales were transacted.

                    Motion to approve Resolution 97-R-011.

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

VIII.  MOTIONS

      24. Approval of bid specifications and authorization to advertise for
          bids for the following:
          a) annual contract - car wash services, Fleet Division
          b) annual contract - vacuum truck services, Utilities Department
          c) annual contract - asphalt repairs, Utilities Department
          d) annual contract - water taps, Utilities Department
          Bids for annual contracts will be received on February 11, 1997
          with a tentative bid award for February 18, 1997.

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

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

      25. Authorizing the Interim City Manager to solicit bids from qualified
          environmental contractors for Household Hazardous Waste packaging,
          transporting, and disposal services; in order to comply with the
          City's National Pollution Discharge Elimination System (NPDES)
          storm water permit requirements.

          Motion authorizing the Interim City Manager to solicit bids from
          qualified environmental contractors for Household Hazardous Waste
          packaging, transporting, and disposal services; in order to comply
          with the City's National

          Pollution Discharge Elimination System (NPDES) storm water permit
          requirements.

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

      26. Approval of construction plans and authorization to advertise for
          bids for the 1996-1997 Street Recycling Project (133.5 Blocks) with
          tentative award on March 3, 1997.  Funding is available in the
          Capital Projects Fund.

          Motion to approve of construction plans and authorization to
          advertise for bids for the 1996-1997 Street Recycling Project
          (133.5 Blocks) with tentative award on March 3, 1997.

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

      27. Approval of construction plans and authorization to advertise for
          bids for a Composite Liner for Cells No. 7 and No. 8 of the Laredo
          Landfill located at U.S. Highway 359 as required per Subtitle D
          Requirements of the Texas Natural Resource Conservation Commission
          (TNRCC) with tentative award on March 3, 1997.  Funding is
          available in the Landfill Fund.

          Motion to approve construction plans and authorization to advertise
          for bids for a Composite Liner for Cells No. 7 and No.  8 of the
          Laredo Landfill located at U.S. Highway 359.

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

      28. Award of a four month office supply contract to the Low Bidder,
          Executive Office Supply, Laredo, Texas, for providing general
          office supplies for all city departments. This contract is based on
          lowest bids submitted for forty-three general office supply items
          most commonly used by all city departments.  In addition, a
          percentage discount will be offered from the vendor's current
          catalog for general office supplies not specifically listed on the
          city's bid list. All items will be purchased on an as needed basis.
          The contract pricing is 2% less than the previous contract amount.
          Funding is available from the respective department's office supply
          line items.

          Motion to award a four month office supply contract to the Low
          Bidder, Executive Office Supply, Laredo, Texas, for providing
          general office supplies for all city departments.

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

      29. Award of a contract to the Low Bidder, Gateway Cleaners, Laredo,
          Texas, in the estimated amount of $50,000.00, for providing laundry
          dry cleaning services for Police Department uniforms. The bid
          pricing is approximately 14% less than the previous contract
          period. Funding is available in the Police Department's contractual
          services, linen and laundry service line item.

          Motion to award a contract to the Low Bidder, Gateway Cleaners,
          Laredo, Texas, in the estimated amount of $50,000.00, for providing
          laundry dry cleaning services for Police Department uniforms.

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

      30. Award of a contract to the Low Bidder, Grande Truck Center, San
          Antonio, Texas, in the amount of $44,300.00, for the purchase of
          one heavy truck with a mounted 1,500 gallon water tank. This truck
          will be assigned to the Public Works Department.  Funding is
          available in the Capital Improvement Fund -  Street Reconstruction.

          Motion to award a contract to the Low Bidder, Grande Truck Center,
          San Antonio, Texas, in the amount of $44,300.00, for the purchase
          of one heavy truck with a mounted 1,500 gallon water tank.

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

      31. Award of a contract to the Low Bidder, Sames Motor Company, Laredo,
          Texas, in the amount of $45,300.00, for the purchase of one 1/2 ton
          extended cab truck for the Public Works Department and one utility
          vehicle for the Risk Fund.  These vehicles will be equipped with
          compressed natural gas (CNG) bi-fuel fueling systems. Funding is
          available in the respective department's capital outlay budget.
          Delivery is anticipated within ninety days.

          Motion to award a contract to the Low Bidder, Sames Motor Company,
          Laredo, Texas, in the amount of $45,300.00, for the purchase of one
          1/2 ton extended cab truck for the Public Works Department and one
          utility vehicle for the Risk Fund.

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

      32. Award of a contract to the Sole Provider, Closner Equipment
          Company, Inc., San Antonio, Texas, in the amount of $28,028.65, for
          refurbishing the City's street paver.  Extensive repairs are needed
          to the 1991 Barber-Greene 220B paver in order to maintain this unit
          in operational condition. In addition, the contract pricing
          includes the installation of an adapter which aids in the paving
          process.  Closner Equipment Company, Inc., is the authorized dealer
          for this equipment. The original purchase price of this paver was
          $140,609.00. Staff anticipates that this refurbishing will extend
          the life of this equipment by approximately five (5) years. Funding
          is available in the Capital Improvement Fund -Street
          Reconstruction.

          Motion to award a contract to the Sole Provider, Closner Equipment
          Company, Inc., San Antonio, Texas, in the amount of $28,028.65, for
          refurbishing the City's street paver.

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

      33. Award of a contract to the Lowest Bidder Meeting Specifications,
          Naztec, Inc., Sugar Land, Texas, in the amount of $15,500.00, for
          the purchase of twenty, school warning beacons. Ten beacons are
          proposed for the Laredo Independent School District, eight for the
          United Independent School District, as well as two additional
          beacons for any new requests. Delivery of these items is antici-
          pated within sixty days. The City did receive a lower bid from
          Signal Engineering, Shreveport, Louisiana, however it did not meet
          specifications.  Funding is available in the Capital Improvement
          Fund with both school districts contributing 50% of the purchase
          cost.

          Cm. Guerra asked if one of this flashing lights can be installed at
          Del Mar Blvd. in front of St. Patrick's Church.

          Mayor Ramirez stated that this particular bid is one where we are
          going 50/50 match with the schools, and that staff might want to
          approach St. Patrick's to see if they would be interested in parti-
          cipating with the City with this flasher and if not, they will be
          considering putting it on our program because it is concern on
          Sundays.

          Cm. Guerra wants that this item be placed on the agenda for next
          meeting.

          Motion to award of a contract to the Lowest Bidder Meeting
          Specifications, Naztec, Inc., Sugar Land, Texas, in the amount of
          $15,500.00, for the purchase of twenty, school warning beacons.

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

      34. Award of a contract to the Sole Bidder, Newman Signs, Jamestown,
          North Dakota, in the amount of $45,116.57, for the purchase of
          4,800 street name sign blades for 1,200 intersections. These are
          vandal proof street name signs which will be installed in CDBG
          areas. The installation of these larger street name signs will
          facilitate the street identification by emergency vehicles. Bid
          pricing is approximately 5% less than the previous sign purchase.
          Funding for this purchase is available in the Community Development
          Fund.

          Motion to award a contract to the Sole Bidder, Newman Signs,
          Jamestown, North Dakota, in the amount of $45,116.57, for the
          purchase of 4,800 street name sign blades for 1,200 intersections.

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

      35. Award of a contract to the Sole Bidder, Woods Drilling Company,
          Laredo, Texas, in the amount of $12,560.00, to perforate a
          secondary zone in the Santa Isabel Well casing.  This work is
          intended to increase the yield of the existing well. the contract
          work includes pulling the existing pump, perforating the casing at
          a higher depth, water jetting the perforations, pulling 30 joints
          of black steel drop pipe, replacing this pipe with 4" galvanized
          pipe, and reinstalling the existing pipe. Funding for this project
          is available from the 1993 bond reserve appropriation.

          Motion award of a contract to the Sole Bidder, Woods Drilling
          Company, Laredo, Texas, in the amount of $12,560.00, to perforate a
          secondary zone in the Santa Isabel Well casing.

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

      36. Approval of amendment no. 1, an increase of $16,560.00 to the
          environmental assessment contract with Sherfey Engineering in
          association with Naismith Engineering, Inc. Laredo, Texas for the
          Manadas Creek Wastewater Interceptor Project on a fast tract basis
          in compliance with ASTM E 1527-94 Practice of Environmental Site
          Assessment, subjected to EDA approval.  These services were not
          anticipated, however, archaeological investigations and testing is
          required for the captioned project.  Current contract amount is
          $35,440.00.  Funding is available in the Capital Improvement Fund-
          Economic Development Administration (EDA) fund.

          Motion to approve amendment no. 1, an increase of $16,560.00 to the
          environmental assessment contract with Sherfey Engineering in
          association with Naismith Engineering, Inc.  Laredo, Texas for the
          Manadas Creek Wastewater Interceptor Project on a fast tract basis
          in compliance with ASTM E 1527-94 Practice of Environmental Site
          Assessment, subjected to EDA approval.

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

      37. Approval of change order no. 4, an increase of $25,037.00 to the
          construction contract with Don Krueger Construction Company,
          Victoria, Texas, for additional drilled pier depths for the
          Terminal Building and irrigation sleeves and electrical sleeves in
          preparation for the Landside Package, and to add 27 calendar days
          for the Laredo International Airport New Passenger Terminal Project
          and subject to Federal Aviation Administration (FAA) approval.
          Current construction contract amount is $15,087,145.00.  Funding is
          available in the New Airport Terminal Fund.

          Motion to approve change order no. 4, an increase of $25,037.00 to
          the construction contract with Don Krueger Construction Company,
          for additional drilled pier depths for the Terminal Building and
          irrigation sleeves and electrical sleeves in preparation for the
          Landside Package, and to add 27 calendar days for the Laredo
          International Airport New Passenger Terminal Project and subject to
          Federal Aviation Administration (FAA) approval.

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

      38. Award of a construction contract in the amount of $44,265.00 to the
          Lowest Bidder, Ramex Construction Company, Houston, Texas, for
          Sidewalks, Storm Drainage, and curb and gutter improvements on
          Calton Road, Maher Avenue and Thomas Avenue (3) streets -
          approximately 1,700 L.F.) around the New Laredo Police Station
          Project.  Funding is available in the Capital Improvements Project
          Fund

          Motion to award a construction contract in the amount of $44,265.00
          to Ramex Construction Company, for Sidewalks, Storm Drainage, and
          curb and gutter improvements on Calton Road, Maher Avenue and
          Thomas Avenue (3) streets -approximately 1,700 L.F.) around the New
          Laredo Police Station Project.

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

      39. Accepting the donation of $9,841.00, from Norwest Bank Texas,
          South, N.A., to be used by the City to purchase four scoreboards
          for the new Recreation Centers.

          Motion accepting the donation of $9,841.00, from Norwest Bank
          Texas, South, N.A., to be used by the City to purchase four
          scoreboards for the new Recreation Centers.

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

          Note:  Cw. Moreno joined the meeting at this time, 5:40 p.m.

  IX.  CITY MANAGER'S REPORT

      40. Presentation of a status report on the progress of the Colonias
          Project.

          Fernando Roman, Acting Utilities Director, stated that they
          are almost done and they are within 10 days of having the final
          document.

          Eddie Garza, representing Paul Garza & Associates, stated that the
          report will be completed by the end of the month and will have
          board approval by the end of April.  They have estimated
          approximately $1-$2 million that will be available for equity
          buying to the City.  The total estimated construction cost is
          between $12-$13 million, they are looking at a 10-15% grant to loan
          ratio.  The only item they have pending by their consultants is the
          environmental walk which will be taking place within the next two
          or three weeks.  His firm is also in the process of completing
          their document as well, only some field work needs to be completed.
          They have attended meetings with the residents of the colonias, the
          last meeting was on November, they are going to have a public
          hearing on March and that will be the official public hearing where
          the residents will be available to voice their concerns.

          Mr. Roman stated that the county is dealing with the right-of-way
          issues at this time.  He added that the right-of-way issue would
          not delay the approval of the money that they are seeking for
          April.

      41. Presentation of a status report on the Southside Wastewater
          Treatment Plant expansion pursuant to the dissolution of S.A.
          Garza Engineering, Inc., the engineering firm of record, and
          requesting authorization to hire a construction Manager for 90 days
          and establishing Camp Dresser McKee as the new Engineer of record.

          Fernando Roman, Acting Utilities Director, explained that proaject
          started in 1995 thinking that they were going to finish in
          approximately a year and a half.  In that year the firm of S.A.
          Garza firm had a turn of events, they have been closing their
          locations since then.  Mr. Garza decided to close down, there was
          no market for his firm and  originally had estimated that they
          would working with the City until the end of the construction.  A
          change order was significant during the planning of the Chacon
          Creek Interceptor and was recognized that unless we drop the lift
          station we wouldn't end up with an immediate lift station somewhere
          in the city.  To take advantage and full gravity and actually
          extend the coverage of the Chacon Interceptor they had to redesign
          the lift station which brought a new length of time into the
          picture.  They should have been finished by October, but there have
          been problems in the construction, and the result is that our
          contract with S.A. Garza finalized.  They have dissolved the
          contract and they need to finish this with a construction manager
          to continue monitoring the activities, which are putting the
          equipment on the facility, testing it and finalizing the
          electrical.  Most of the cement work is finished, the concrete work
          is done in its majority, they still have to check some submittals
          and finalize the project.  The last activity that they need to have
          is have a firm, Camp, Dresser, & McKee which was the main designer
          of this plan working for S.A. Garza, so they have asked them to
          certify the plant at the end of the project.  He was asking that
          council hire Mr. Don McDuff who was the engineer working for S.A.
          Garza at the end of the project.  He has made an offer of $8,500.00
          to continue with the construction services throughout the
          completion of the project, for the next 90 days.  This would be
          done hiring him as a professional engineer on his own and his rate
          would be approximately $30-35.00 an hour versus $100.00 per hour
          that CDM would charge.  Then they would have some electrical review
          and the certification on some manual writing by CDM for $19,537.00.

          And finally, for services that went past October, with S.A.  Garza
          which continued to be on board with the city.  The grand total is
          approximately $30,000.00.  There is money that the Garza firm did
          not collect which is approximately $23,000.00 and the rest
          approximately $7,000.00 from a project fund which has approximately
          $280,000.00

          Motion to approve Mr. Roman's and Mr. Pena's request and authorize
          the hiring of a Construction Manager for 90 days to continue
          construction services for $8,500.00 and establishing Camp Dresser
          McKee as the new Engineer of record, Electrical Review and
          certification for $19,537.00 and pay S.A. Garza Engineers
          $5,492.00.

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

      42. Motion to ratify and approve the retention of the Law Firm of Hunt,
          Hermansen, McKibben, and English, to file and to proceed to trial
          of the following lawsuits for the City of Laredo:
          a) Cause No. 96-CVQ01424-D3, In Re: Grand Jury Proceeding Re:
             Gustavo Guevara and the City of Laredo in the 341st District
             Court of Webb County, Texas,
          b) City of Laredo v. Jose Rubio, Jr., et. al., Cause No. 96-CVQ-
             01548-D2, in the 111th District Court of Webb County, Texas;
          and a request for possible Executive Session pursuant to Section
          551.071 of the Texas Government Code to discuss pending litigation.

          Motion to ratify and approve the retention of the Law Firm of Hunt,
          Hermansen, McKibben, and English, to file and to proceed to trial
          of the following lawsuits for the City of Laredo:
          a) Cause No. 96-CVQ01424-D3, In Re: Grand Jury Proceeding Re:
             Gustavo Guevara and the City of Laredo in the 341st District
             Court of Webb County, Texas,
          b) City of Laredo v. Jose Rubio, Jr., et. al., Cause No. 96-CVQ-
             01548-D2, in the 111th District Court of Webb County, Texas;
          and a request for possible Executive Session pursuant to Section
          551.071 of the Texas Government Code to discuss pending litigation.

          Moved : Cm. Casso
          Second: Cm. Alvarado
          For:  5                       Against:  2         Abstain:  0
                                        Cw. Moreno & Cm. Valdez
          Mayor vetoed.

          Motion to over-ride the Mayor's veto.

          Moved : Cm. Casso
          Second: Cm. Alvarado
          For:  5                      Against:  2         Abstain:  0
                                       Cw. Moreno & Cm. Valdez

   X.  COMMUNICATIONS

          Mayor Ramirez wished Cw. Moreno a happy belated birthday, she
          celebrated her birthday on the 18th.

  XI.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

    A.  Requests by Councilmember Louis H. Bruni

       1.  Status report on the Casa Blanca Trailer Park, with possible
           action.

           Jerry Cain, Asst. City Attorney, said he spoke to the Municipal
           Prosecutor who said that there was a trial of the operator of this
           mobile home park who was convicted of the offense and has now
           taken appeal into the county courts, his appeal is pending.  She
           also tells him that she has been assured by the landowners that
           they have begun an eviction proceeding against the operator of the
           trailer park, they are trying to get possession of their land and
           apparently until they do, they can't do anything about these
           trailers that are left there.

           Cm. Bruni asked what about all the garbage, broken down trailers
           without door and windows that are all over the property, can't
           code enforcement remove them, force clean the property and charge
           the tenant, the place is a mess and it is an eyesore.  He wants
           something to be done to correct the problem as soon as possible.

           Ms. Colon stated they have tried to file lawsuit for delinquent
           taxes, they don't have any clear titles, they do not know who to
           serve on many of these lots, some trailers are on bad condition
           that they cannot be moved, they have at the request of the
           landowner cut off the water to get people to move out because some
           had refused to move.  They are doing everything they can to help
           the landowner, code enforcement is also working on this issue and
           in trying to clean on those where they can't find any owners, it
           is a complicated issue and added that the landowner is giving them
           100% cooperation.

           Cm. Bruni wants to encourage staff to get this on a fast track to
           clean up the area on behalf of the landowners and on behalf of the
           city.

       2.  Status report on the Proviron natural gas riser located at the
           intersection of Loop 20 and Del Mar Boulevard, with possible
           action.

           Cm. Bruni stated this is a safety problem and was concerned about
           accidents and possible explosions.

           Florencio Pena, Interim City Manager, stated they met with
           Proviron and the Traffic Engineers to identify the amount of
           right-of-way that we have at that intersection.  They are
           agreedable that the city identify the optimum location for this
           riser based on the future plans for the expansion of that
           intersection and he does not know how far they are in providing
           that optimum plan.

           Mr. Jeff Ross, General Manager of Proviron, stated they have
           addressed the issue with the City Council, Mr. Pena, the City
           Engineer.  He had received a set of plans (the City Five Year
           Plan) and right now he is writing a response from the District
           Engineer for TxDot in order to possibly move that into the state
           right-of-way further from that intersection.  He was told that it
           is a "no" until they can talk to some people in Austin, and until
           they can find that this is an option and that they can move the
           regulator station, they have to wait.  They have agreed with Mr.
           Pena that they will remove the station, the biggest problem now is
           where to move it and where it would be the safest place.

       3.  Status report on the VAQ 94 commercial billboard located at the
           intersection of North Merida Drive and Loop 20, with possible
           action.

           Motion to table the item by Cm. Bruni since it is in District I.

       4.  Status report on the extension of water and wastewater lines to
           the colonias located on Highway 359, with possible action.

           Cm. Bruni stated that this item has already been taken care of.

       5.  Status report on the Traffic Division Oversize Permits Cash
           Handling Audit (Period of Fiscal Year 1995-1996), with possible
           action.

           Cm. Bruni went over the Traffic Division Oversize Permit Audit on
           the descripencies.  He read the report and said that this audit
           was conducted in January 6, 1997, and the finding were "non-
           compliance with internal control structures, did not reconcile
           with the permits, same employee was responsible for transaction
           from beginning to end, failure to maintain records from September
           1995 in a secure place the permits were never located for the
           audit, the traffic division was making monthly deposits instead of
           the required daily deposit, issue oversize permits on credit
           without authorization from the City Manager, further the traffic
           division did not maintain accounts receivable records of the
           customers of the oversize permits which had been issued on
           credit."  In conclusion it determined to be weak, numerous
           descripencies were identified, permits were paid by money orders
           that were never deposited to the city bank account, the
           verifications confirmed that a city employee had used the money
           for personal expenses, the information was provided to the
           District Attorney and the employee was arrested on August 26, 1996
           and indicted on November 26, 1996.  He added that Traffic Division
           did not reconcile oversize permits.  The discrepancies were found
           from January, 1995 through September 1996, city records were lost
           which should have been maintained for at least three years.

           Mr. Pena stated that the audit was completed, by July they took
           the necessary action regarding that particular employee, the
           employee has been indicted and they have also taken the necessary
           precautions to insure that this does not happen again, they have
           new internal controls, they have hired new staff, so they feel
           confident that all the findings that were there will be taken care
           of.

       6.  Status report on the two fires on FM 1472 (Mines Road) that
           occurred on Tuesday evening, with possible action.

           Cm. Bruni wanted to know in section of the Mines Road these fires
           occurred and whether they were in the county or within the city's
           500 ft. from the city to the Colombia Bridge?  He also wants to
           know the number of times reported that some of the fire hydrants
           that the Fire Department tried to hookup and were dry, when there
           was no water and when they had to go several miles away to tie
           them to a working fire hydrant.  He suggests that if the case is
           that some of these fire hydrants, for whatever reason are not
           working, that staff maybe can tag these hydrants showing that they
           are dry, either by painting them with a different color or in some
           other way so that the Fire Department does not waste time hooking
           up to a fire hydrant that doesn't work.

           Mike Garza, Interim Fire Chief, reported that the two fires
           occurred in a close proximity, they occurred outside the
           jurisdiction of City of Laredo.  The Fire Department responded
           with three (3) pumpers and they dispatched a tanker.  The first
           arriving unit was the Colombia Bridge unit which immediately
           reported that the structure was engulfed, the second arriving unit
           was fire truck from Station #9 out on the Mines Road, they
           reported that the structure was practically on the ground, so it
           was much unsalvageable by the time they arrived.  The firefighters
           utilized the water that was on board the apparatus, after the
           three truck loads of water were exhausted they went to the nearest
           available hydrants, which are the ones in question.  There were
           approximately half a mile away from the burning structure.  What
           was not known at the time was that these hydrants were never
           functional and operational.  The firefighter remembered the
           nearest hydrants and attempted to hookup to the hydrant and of
           course they were dried.  The next available hydrants were seven
           miles away and there they attempted to reload their tanks, come
           back and put out the embers that were left.  Curiously, there was
           another fire and the investigation is ongoing as to the cause
           because they don't know the cause of those fires.  It was a
           simultaneous event and since they were at the scene they were able
           to intervene on the other location.

           Mr. Garza stated there is an ongoing program where the crews check
           the hydrants on their own district.  It allows them to know where
           the fire hydrants are, they perform light maintenance to make sure
           they are operational and they clean all the debri around the
           hydrants to make them visible, the ones that are not in operable
           order are painted with a color and are immediately complied into a
           list which is sent to the Utilities Department so they can put
           them into repair.  These hydrants hadn't been painted, thus they
           thought they were operational.

           Cm. Bruni stated his concern is the City of Laredo having and
           interlocal agreement to provide fire service in the county and if
           the Fire Department cannot get there on time for whatever reason,
           or they are busy fighting a fire inside of corporate city limits,
           or we have a problem that legally we are going to get in trouble.
           He still thinks that council should move in the direction of
           putting the liability and the burden where it falls, on the County
           Commissioners Court because we receive no taxes from people in the
           county and all we are getting from an interlocal agreement to
           provide fire services is one big liability.

    B.  Requests by Councilmember Mario Alvarado

       1.  Update on the Santa Isabel Water Well Project on the Mines Road.

           Fernando Roman, Acting Utilities Director, stated that the fire
           hydrants are not in service, but the 16" line to which they are
           attached that was put in place during the planning of the
           industrial park is physically connected to the head that comes out
           of the well, but is not in service we cannot put any water in the
           lines that does not meet TNRCC standards.  He said that te water
           as we have it needs to be treated.

           In view of the fire tragedy that occurred on the Mines Road, they
           are prepared to do something in the mean time, they want to do a
           direct connection from the well to the tank so they can put water
           in the tank and then give access to the Fire Department directly
           to the tank noting that this water is not suitable for
           distribution and water will not be available to fire hydrants far
           away from the tank, only available at one fire hydrant and only
           for the eventuality that the Fire Department should have to
           respond to the location again.  They expect this to be a temporary
           solution to a problem, where within 45-60 days they should have
           the completion of the plant and they will be testing the reverse
           osmosis unit testing the components and then providing the water.

           He pointed that there are several issues pending such as:
           1) Residents that live on the other side of the highway have
           requested water in the past, they have asked if they can pay for
           the extension just like the ordinance calls for.
           2) In preparation for that they will put a connection at the tank
           so that they can bring whole water.
           3) As a way preparing for the future they are looking at
           possibilities of connecting other wells in the area to our raw
           water line, so if our well fails somebody else can pump into our
           pump as a backup for each other.

           He concluded by saying that they are away 45-60 days from
           finishing this project.

       2.  Discussion and possible action concerning the placement of a
           traffic signal at Mines Road and Rancho Viejo Drive (entrance to
           Ranch Viejo Subdivision).

           Roberto Murillo, Traffic Engineer, reported that he has most of
           the information, however there was also a request for a traffic
           light a Quail Creek which they have almost complete.
           He added that he should have an answer and a report on the study
           indicating his recommendations for that area within the next week
           or two with recommendations.

           Motion to table for February 3rd.

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

       3.  Discussion and possible action requesting a traffic count for the
           possible placement of a traffic signal on Milo Road and the
           intersection of Auburn or Gavin Roads.

           Cm. Alvarado stated that there is a written request from the
           developer, they also state that they will contribute $10,000.00,
           also a business was planning to moving to that location who is
           also stating that they will provide $10,000 toward defraying the
           cost of the traffic light for a total of $20,000 if it merits the
           traffic light.

           Roberto Murillo, Traffic Engineer, stated that on this issue the
           had already initiated a study, they do have preliminary traffic
           counts for the area, however the area is not fully developed.
           They did take a count, they have that data, and
           they need to incorporate it into the study.  The main thing is
           that once they do an evaluation they need to provide all this
           information and if it shows that we need to recommend a traffic
           light and that it warrants one, it needs be approved by TxDot
           because it is a state road.

           Motion to proceed with the traffic count study for the possible
           placement of a traffic signal on Milo Road and the intersection of
           Auburn or Gavin Roads.

           Moved :  Cm. Alvarado
           Second:  Cw. Moreno
           For:  6                      Against:  0         Abstain:  0

       4.  Discussion and possible action on the Jalapeno Festival request
           for charter buses from El Metro Transit System.

           Cm. Alvarado stated that this issue also includes the request from
           WBCA.

           Florencio Pena, Interim City Manager, explained that City Council
           raised the charter fares from $50 to $100 it has placed a
           financial burden on the WBCA and Jalapeno
           Festival.  The concern is that we are short of buses this year and
           we are going to have to lease out buses to help augment our fleet
           during this period.  He was asking that they allow them this week
           to make a recommendation, possibly, January 27th to get an item on
           the agenda because it might involved council contribution.

           Mr. Joe Baeza representing Jalapeno Festival and Nancy Blair
           representing WBCA were before council requesting to double the
           number of buses for the Park and Ride facility during the
           festivals, they would like two (2) Park and Ride locations one on
           the base and one on south Laredo and any break that they can get
           on the price per hour that is being charge on the charter buses.

           Mayor Ramirez stated they will look for a recommendation by
           January 27th to work this out.

           Cm. Bruni wants to make sure that the traffic flow is facilitated
           and expedited on Highway 59 east in order that it does not create
           a burden to the residents in that area,
           that it is planned with alternative routes and suggested that this
           recommendations also be included.

XII.  PUBLIC HEARINGS

      44. Public hearing authorizing the issuance of City of Laredo, Texas
          General Obligation Bonds, Series 1997, in the amount of $5,830,000
          for the purpose of constructing and permanently equipping three
          fire stations; constructing and installing and equipping a fire
          training tower and training facility; and all other matters related
          thereto.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the issuance of City of Laredo, Texas General
          Obligation Bonds, Series 1997, in the amount of $5,830,000 for the
          purpose of constructing and permanently equipping three fire
          stations; constructing and installing and equipping a fire training
          tower and training facility; and all other matters related thereto.

          Motion to open the public hearing.

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

          There was no public input.

          Cm. Guerra wanted to know if we already have the necessary land to
          build the station.

          Mr. Pena stated that they still don't have it, it is a concern
          because they need to get started on one of those fire stations so
          that it is operable by fall '98.  He added that they will continue
          dialogue with the landowners for the two locations.

          Cm. Guerra asked that a status report item on the land acquisition
          be placed on the agenda for next meeting under his requests.

          Motion to close the public hearing and introduce the ordinance with
          correction of two (2) fire stations instead of three (3).

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

      45. Public hearing authorizing the issuance of City of Laredo, Texas
          combination tax and waterworks system revenue certificates of
          obligation, Series 1997-A, in the principal amount of $2,860,000
          for the purpose of paying all or a portion of the City's
          contractual obligations for improvements and extensions to the
          City's Waterworks System and for paying legal, fiscal, and
          engineering fees in connection with this project and other matters
          relating thereto.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the issuance of City of Laredo, Texas
          combination tax and waterworks system revenue certificates of
          obligation, Series 1997-A, in the principal amount of $2,860,000
          for the purpose of paying all or a portion of the City's
          contractual obligations for improvements and extensions to the
          City's Waterworks System and for paying legal, fiscal, and
          engineering fees in connection with this project and other matters
          relating thereto.

          Motion to open the public hearing.

          Moved : Cm. Valdez
          Second: Cw. Montalvo
          For:  7

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      46. Public hearing authorizing the issuance of City of Laredo, Texas
          combination tax and revenue certificates of obligation, Series
          1997-B, in the principal amount of $3,360,000 for the purpose of
          paying all or a portion of the city contractual obligation for the
          acquisition of fire trucks and related equipment; acquisition of
          library equipment and construction of improvements at new main
          library; purchase and acquisition of material recycling facility
          from Southern Sanitation Services, Inc.; and for paying legal,
          fiscal, architectural, and engineering fees in connection with such
          projects; and other matters relating thereto.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the issuance of City of Laredo, Texas
          combination tax and revenue certificates of obligation, Series
          1997-B, in the principal amount of $3,360,000 for the purpose of
          paying all or a portion of the city contractual obligation for the
          acquisition of fire trucks and related equipment; acquisition of
          library equipment and construction of improvements at new main
          library; purchase and acquisition of material recycling facility
          from Southern Sanitation Services, Inc.; and for paying legal,
          fiscal, architectural, and engineering fees in connection with such
          projects; and other matters relating thereto.

          Motion to open the public hearing.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0
          (Cm. Bruni & Cm. Casso were not present.)

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Guerra
          Second: Cm. Valdez
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

      47. Public hearing amending the City of Laredo's Special Police Program
          1996/1997 budget in the amount of $236,457.00 for a Local Law
          Enforcement Block Grants Program from the U.S.  Department of
          Justice for the first year funding of this grant for the period of
          October 1, 1996 through September 30, 1997, and authorizing the
          Interim City Manager to implement said budget.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's Special Police Program
          1996/1997 budget in the amount of $236,457.00 for a Local Law
          Enforcement Block Grants Program from the U.S.  Department of
          Justice for the first year funding of this grant for the period of
          October 1, 1996 through September 30, 1997, and authorizing the
          Interim City Manager to implement said budget.

          Motion to open the public hearing.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0
          Cm. Bruni & Cm. Casso

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

      48. Public hearing approving a contract for fiscal year 1997-98 with
          the Texas Department of Health and Budget in the amount of $78,916
          for the HIV/AIDS counseling, testing, referral and partner
          elicitation/notification (CTRPE) project of the City of Laredo
          Health Department for the period beginning January 1, 1997, through
          December 31, 1997; and increasing revenue line item 226-0000-323-
          4043 from $0 to $78,916 and expenditure line item 226-6059 from $0
          to $78,916; and authorizing the Interim City Manager to execute the
          contract.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance approving a contract for fiscal year 1997-98 with the
          Texas Department of Health and Budget in the amount of $78,916 for
          the HIV/AIDS counseling, testing, referral and partner
          elicitation/notification (CTRPE) project of the City of Laredo
          Health Department for the period beginning January 1, 1997, through
          December 31, 1997; and increasing revenue line item 226-0000-323-
          4043 from $0 to $78,916 and expenditure line item 226-6059 from $0
          to $78,916; and authorizing the Interim City Manager to execute the
          contract.

          Motion to open the public hearing.

          Moved : Cw. Montalvo
          Second: Cm. Guerra
          For:  5                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cm. Guerra
          Second: Cm. Valdez
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

      49. Public hearing amending the City of Laredo FY 1996-97 Annual Budget
          to reflect the appropriate revenues and expenses required to accept
          the donation of $9,841 from Norwest Bank Texas, South, N.A. to
          purchase four scoreboards for the new recreation centers.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo FY 1996-97 annual budget to
          reflect the projected revenues and expenses required to accept the
          donation of $9,841 from Norwest Bank Texas, South, N.A.  purchase
          of four scoreboards for the new recreation centers.

          Motion to open the public hearing.

          Moved : Cw. Montalvo
          Second: Cm. Valdez
          For:  5                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

      50. Award of a contract to the Low Bidder, Eugenio Ramos, Laredo,
          Texas, in the amount of $30,160.00, for the purchase of twenty-four
          sets of kitchen cabinets for the Jose A. Flores Apartments.  Bids
          were requested on the finished cabinets only, with the Housing
          Corporation maintenance staff being responsible for their
          installation. These will be replacement cabinets for existing
          rental units.  Funding is available in the LMHC's Capital
          Improvement budget.

          Motion to award a contract to the Low Bidder, Eugenio Ramos,
          Laredo, Texas, in the amount of $30,160.00, for the purchase of
          twenty-four sets of kitchen cabinets for the Jose A.  Flores
          Apartments.

          Moved : Cm. Guerra
          Second: Cm. Valdez
          For:  5                       Against:  0         Abstain:  0

      51. Award of a contract to the Low Bidder, Sames Motor Company, Laredo,
          Texas, in the amount of $36,200.00, for the purchase of one 1/2 ton
          truck and one cargo van. These vehicles will be equipped with
          compressed natural gas (CNG) bi-fuel fueling systems. Funding is
          available in the LMHC's Capital Outlay budget. Delivery is
          anticipated within ninety days.

          Motion to award a contract to the Low Bidder, Sames Motor Company,
          Laredo, Texas, in the amount of $36,200.00, for the purchase of one
          1/2 ton truck and one cargo van.

          Moved : Cm. Alvarado
          Second: Cw. Moreno
          For:  5                       Against:  0         Abstain:  0

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

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

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

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

       Moved : Cw. Montalvo
       Second: Cm. Alvarado
       For:  5                          Against:  0         Abstain:  0

      52. Authorization to sell the following vehicles and equipment:
          a) Unit 8901/1989 Ford E350 in the amount of $200.00,
          b) Unit 8902/1989 Ford E350 in the amount of $100.00,
          c) Unit 8222/1982 Gillig no bid was received,
          d) Unit 8225/1982 Gillig in the amount of $100.00,
          e) Unit 601/1982 Trolley in the amount of $650.00,
          f) Unit 6930/1969 GMC in the amount of $300.00,
          g) Unit 6931/1969 GMC in the amount of $300.00,
          h) Unit 8706/1987 Ford in the amount of $300.00,
          i) Red Fuel Tank in the amount of $250.00,
          These vehicles and equipment have exhausted their useful life and
          are being sold "as is." The total amount of revenues being realized
          from this sale is $2,200.00; and authorization to dispose of Unit
          8222 for scrap material.

          Motion to authorize to sell the following vehicles and equipment:

          a) Unit 8901/1989 Ford E350 in the amount of $200.00,
          b) Unit 8902/1989 Ford E350 in the amount of $100.00,
          c) Unit 8222/1982 Gillig no bid was received,
          d) Unit 8225/1982 Gillig in the amount of $100.00,
          e) Unit 601/1982 Trolley in the amount of $650.00,
          f) Unit 6930/1969 GMC in the amount of $300.00,
          g) Unit 6931/1969 GMC in the amount of $300.00,
          h) Unit 8706/1987 Ford in the amount of $300.00,
          i) Red Fuel Tank in the amount of $250.00,

          Lots were drawn for tie bids: winners - Mr. Hector Pina purchaser
          for items b, e, and h.   Other buyers were Mr.  Daniel Vargas who
          purchased item a, d, f, g, h and Bravo Auto Sales purchased item i.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

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

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

  XV.  ADJOURNMENT

          Motion to adjourn.

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

          Time: 7:00  p.m

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 29 ARE TRUE
COMPLETE AND CORRECT PROCEEDINGS OF THE REGULAR CITY COUNCIL MEETING HELD ON
THE 20TH DAY OF JANUARY, 1997.  A CERTIFIED COPY IS ON FILE AT THE CITY
SECRETARY'S OFFICE.
                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY