CITY OF LAREDO
                          CITY COUNCIL MEETING MINUTES

             M97-R-04                                   FEBRUARY 3, 1997

   I.  CALL TO ORDER

       With a quorum present Mayor Protem Casso called the meeting to order.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Protem Casso led in the Pledge of Allegiance.

 III.  ROLL CALL

       IN ATTENDANCE:
       JOSE R. PEREZ,        COUNCILMEMBER, DISTRICT I
       LOUIS H. BRINI,              "     , 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
       GUSTAVO GUEVARA, JR., CITY SECRETARY
       FLORENCIO PENA,       INTERIM CITY MANAGER
       JERRY CAIN,           ASST. CITY ATTORNEY

       Motion to excuse Cw. Montalvo due to illness and Mayor Ramirez due to out-of-
       town business commitment.

       Moved : Cm. Guerra
       Second: Cm. Bruni
       For:  5                           Against:  0         Abstain: 0
       (Cw. Moreno was not present)

  IV.  APPROVAL OF MINUTES

       2.  City Council Meeting of January 20, 1997

           Motion to approve.

           Moved : Cm. Perez
           Second: Cm. Valdez
           For:  5                      Against:  0         Abstain:  0
           Cw. Moreno was not present and Mayor Protem Casso was chairing the
           meeting.

           Cw. Moreno arrived at 5:40 p.m.

   V.  INTRODUCTORY ORDINANCES

       3.  Authorizing the Interim City Manager to execute a lease with Texas Migrant
           Council (CCMS) for approximately 883 square feet of office space
           constituting Suite No. 5 of Building #134 located at 4603 Maher Avenue.
           Lease term is for ten (10) months commencing February 1, 1997 and ending
           November 30, 1997 and may be extended for two (2) terms of one (1) year
           each ending November 30, 1998 and November 30, 1999.  Monthly rent shall
           be $679.91 and will be adjusted annually during the primary and extension
           terms of this lease according to changes in the Consumer Price Index.

           Ordinance Introduction: City Council

       4.  Authorizing the City Manager to execute two leases with Southwestern Bell
           Mobile Systems for an antenna installation lease at the water tanks
           located on McPherson Avenue and at the Laredo International Airport.
           1. Terms of the leases are for fifteen (15) years commencing on February
              XX, 1997 and ending February XX, 2012.
           2. Annual rent shall be $7,200.00 payable in advance, and will be adjusted
              annually during the term of the lease according to changes in the
              consumer price index, providing for effective date.

           Ordinance Introduction: City Council

VI.  FINAL READINGS
     Motion to waive the final reading of ordinances #97-O-031, #97-O-032, #97-O-33,
     #97-O-034, #97-O-037, #97-O-038, #97-O-039, #97-O-040, #97-O-041, and #97-O-042.

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

       5. 97-O-031  Ordinance authorizing the issuance of City of Laredo, Texas
                    General Obligation Bonds, Series 1997, in the amount of
                    $5,830,000.00 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.   (City Council)

                    Noe Hinojosa of Estrada-Hinojosa & Company made the presentation
                    to the council and announced the lowest bids for the bonds.

                    Motion to approve Ordinance #97-O-031 and awarding the low bidder
                    of Smith-Barney with a Net Interest Rate of 5.471940%.

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

       6. 97-O-032  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.  (City Council)

                    Motion to approve Ordinance #97-O-032 and award the low bid to
                    Legg Mason with a Net Interest Rate of 5.482725%.

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

       7. 97-O-033  Ordinance, as amended, authorizing the issuance of City of
                    Laredo, Texas combination tax and revenue certificates of
                    obligation, Series 1997-B, in the principal amount of $3,660,000
                    for the purpose of paying all or a portion of the city's
                    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. (City Council)

                    Motion to approve Ordinance #97-O-033 and to award the low bid to
                    Rausher-Pierce at a Net Interest Rate of 4.674203%.

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

       8. 97-O-034  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. (City Council)

                    Motion to approve Ordinance #97-O-034.

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

       9. 97-O-037  Ordinance authorizing the issuance of a Special Use Permit for
                    gas extraction facility to Sonat Exploration Company for a 2.75
                    acre tract out of Porcion 36, Abstract 473, as further described
                    by metes and bounds, located West of Hwy.  83, south of Masterson
                    Road, and east of Riverside Subdivision, known as the Sonat-L.A.
                    Wright No. 7 Well, of the City of Laredo; providing for
                    publication and effective date. (Jose R. Perez)

                    Motion to approve Ordinance #97-O-037.

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

      10. 97-O-038  Ordinance authorizing the issuance of a Special Use Permit for a
                    gas extraction facility to Sonat Exploration Company for a 2.75
                    acre tract out of Porcion 36, Abstract 473, as described by metes
                    and bounds, located west of Hwy. 83 and the South Laredo Sewer
                    Treatment Plant, known as the Sonat-L.A. Wright No. 14 Well, of
                    the City of Laredo; providing for publication and effective date.
                    (Jose R. Perez)

                    Motion to approve Ordinance #97-O-038.

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

      11. 97-O-039  Ordinance amending the zoning ordinance (Map) of the City of
                    Laredo by rezoning the west 1/3 of Lot 7 and the east 1/3 of Lot
                    8, Block 1991, Eastern Division, located at 3206 Ash Street, from
                    B-3 (Community Business District) to R-3 (Mixed Residential
                    District); providing for publication and effective date.
                    (Louis H. Bruni)

                    Motion to approve Ordinance #97-O-039.

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

      12. 97-O-040  Ordinance amending the zoning ordinance (Map) of the City of
                    Laredo by rezoning 25.3348 acres out of Porcion 28, Abstract 241,
                    as described by metes and bounds, located on the southside of US
                    59 and immediately south of the Heritage Park Subdivision, from
                    R-1A (Single-Family Reduced Area District) to R-1-MH (Single
                    Family Manufactured Housing District); providing for publication
                    and effective date.  (Louis H. Bruni)

                    Motion to approve Ordinance #97-O-040.

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

      13. 97-O-041  Ordinance amending the zoning ordinance (Map) of the City of
                    Laredo by rezoning 26.9405 acres out of Porcion 18, Abstract 591,
                    as described by metes and bounds, located West of FM 1472 at the
                    end of Killam Industrial Boulevard, from AG (Agricultural
                    District) and M-1 (Light Manufacturing District) to R-1A (Single
                    Family Reduced Area District); providing for publication and
                    effective date.  (Mario G. Alvarado)

                    Motion to approve Ordinance #97-O-041.

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

      14. 97-O-042  Ordinance amending the zoning ordinance (map) of the City of
                    Laredo by rezoning lots 9 and 10, Block 111, Western Division,
                    located at 817 San Dario Avenue, from B-1 (Limited Business
                    District) to B-3 (Community Business District); providing for
                    publication and effective date.  (Consuelo Montalvo)

                    Motion to approve Ordinance #97-O-042.

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

 VII.  RESOLUTIONS

      15. 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, subject to the terms of an existing
                    two year lease, and granting credit against park dedication
                    requirements in future development. the lease may be terminated
                    with 180 days notice by either the city or the lessee.

                    Motion to approve Resolution #97-R-004.

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

      16. 97-R-012  Authorizing the Interim City Manager of the City of Laredo to
                    accept an allocation of FY95 redirected funds from the Texas
                    Historical Commission's Certified Local Government Program in the
                    amount of $4,004.00, and authorizing the Interim City Manager to
                    execute the necessary documents.

                    Motion to approve Resolution #97-R-012.

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

      17. 97-R-014  Authorizing the issuance of a drilling permit to drill and
                    operate a gas extraction well on a 2.75 acre tract out of Porcion
                    36, Abstract 473, as further described by metes and bounds on
                    attached Exhibit "A", located west of U.S. Hwy 83 and the South
                    of Masterson Road, East of Riverside Subdivision, known as Sonat
                    -L.A.  Wright No. 7 Well, of the City of Laredo; providing for
                    publication and effective date.

                    Motion to approve Resolution #97-R-014.

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

      18. 97-R-015  Authorizing the issuance of a drilling permit to drill and
                    operate a gas extraction well on a 2.75 acre tract out of Porcion
                    36, Abstract 473, as further described by metes and bounds on
                    attached Exhibit "A", located west of U.S. Hwy 83 and the South
                    Laredo Sewer Treatment Plant, known as Sonat -L.A.  Wright No.
                    14 Well, of the City of Laredo; providing for publication and
                    effective date.

                    Motion to approve Resolution #97-R-015.

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

      19. 97-R-016  Supporting the re-establishment of an Elks Lodge in Laredo.

                    Motion to approve Resolution #97-R-016.

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

VIII.  MOTIONS

      20. Authorizing the Interim City Manager to solicit request for proposals from
          qualified environmental contractors for the removal of underground storage
          tanks from the City of Laredo Airport Fuel Farm.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cm. Perez
          For:  5                       Against:  0         Abstain:  0
          Cw. Moreno was temporarily chairing the meeting while Mayor Protem Casso
          was signing the bond documents.

      21. Authorization to advertise for Request for Proposals (RFPs) from area
          Architects/Engineers to prepare plans and specifications for the
          construction of the Azteca Neighborhood Park (Zacate Creek) C.I.P.  No. 97-
          31-006.  Funding is available in the Community Development 22nd Action Year
          -Azteca Park.

          Motion to approve.

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

      23. Authorization to advertise for Request for Proposals (RFPs) from area
          Engineers to include surveys, design and the preparation of plans and
          specifications for the Juarez-Lincoln Bridge 2 Expansion Joints Replacement
          Project.  Funding is available in the Bridge Fund.

          Motion to amend the authorization to include the resurfacing of the two
          bridges.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  5                       Against:  0         Abstain:  0

          Motion to approve to advertise for Request for Proposals.

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

      24. Approval of bid specifications and authorization to advertise for bids for
          the following:
          a) annual contract - armored car service, Bridge System, City Hall, Civic
             Center, Health Department
          b) security guard services - Bridge System, City Hall, Civic Center, Health
             Department
          Bids will be received on February 27, 1997 with a tentative bid award for
          March 17, 1997.

          Motion to amend the specifications by including a cost out of security
          guard services for all four centers.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  5                       Against:  0         Abstain:  0

          Motion to approve the bid specifications as amended.

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

      25. Approval of bid specifications and authorization to advertise for bids for
          the purchase of police package sedans.  The purchase of seventeen vehicles
          was authorized by City Council on December 15, 1996, however, staff will be
          requesting bid pricing for the purchase of up to ten additional units.  The
          Police Department anticipates receiving additional trust fund monies and
          savings in vehicle maintenance which will be used to purchase these
          additional vehicles.  Bids will be received on February 26, 1997 with a
          tentative bid award for March 3, 1997.

          Motion to approve.

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

      26. Authorizing the Interim City Manager to solicit bids for the purchase and
          installation of the passenger loading bridges to the new airport passenger
          terminal.

          Motion to approve.

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

      27. Approval of the construction plans and authorization to advertise for bids
          for the Pace Street Drainage Extension and the Ligarde/Barrios Drainage
          Project with tentative award on March 17, 1997. Funding is available in
          Drainage Fund.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cm. Perez
          For:  5                       Against:  0         Against:  0

      28. Approval of the construction plans and authorization to advertise for bids
          for the Malinche Avenue Re-alignment Street Improvements from Bartlett/
          Locust to Frost Street adjacent to J.W. Nixon High School with tentative
          award on March 17, 1997.  Funding is available in the Capital Improvement
          Fund.

          Motion to approve.

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

      29. Approval of the construction plans and authorization to advertise for bids
          for Parking Lot Improvements for Three Neighborhood Centers (Cigarroa,
          Northeast-Hillside and Tarver) once Community Development Block Grant
          (CDBG) Reprogrammed Funds have been cleared (Cigarroa & Tarver).  Funds for
          the Northeast-Hillside Recreation Center are available in the Recreational
          Center Fund (bond proceeds).

          Motion to approve.

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

      30. Approval of the construction plans and authorization to advertise for bids
          for the Repairs to the Tinaja Creek Concrete Channel Improvements between
          San Salvador and Pecan Street with tentative award on March 3, 1997.
          Funding is available in the Capital Improvement Fund - Tinaja Creek Channel
          Repairs Project.

          Motion to approve.

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

      31. Approval of the construction plans and authorization to advertise for bids
          for the construction of an 18 Inch Diameter Sanitary Sewer Main along
          Bustamante Street from Meadow Avenue to east San Francisco Avenue at Zacate
          Creek with a tentative bid award on March 17, 1997. This project is part of
          a grant application package submitted to the Economic Development
          Administration. Funding is available in the Sewer Fund.

          Motion to approve.

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

      32. Award of a construction contract in the amount of $95,000.00, to the Second
          Lowest Bidder, Paragon Builders, Inc., Laredo, Texas, for the construction
          of a Freight Booth in Lane 6 at the Juarez-Lincoln International Bridge No.
          2.  Funding is available in the Bridge Fund -Toll Plaza Improvements.

          Motion to approve.

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

      33. Award of annual contract to the Low Bidder, Aldo T.  Rodriguez DBA Laredo
          Electric Motor, Laredo, Texas, in the estimated amount of $30,000.00, for
          providing electric motor repair service for the Utilities Department.  The
          bid pricing will be firm during the contract period and all repair work
          will be secured on an as need basis.

          Motion to approve.

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

      34. Approval of fund transfers for payment of the utilities portion of the
          Hilltop Road project, in the amount of $25,000.00 for water and $44,000.00
          for wastewater, from paving reserves.

          Motion to approve.

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

      35. Award of construction contract to the Low Bidder, Pete Gallegos Paving,
          Inc., Laredo, Texas, in the amount of $226,634.90 for the Paving
          Improvements on Hilltop Road, approximately 1250 L.F. from Interstate IH-35
          to Wagner Court.  Funding is available in the Street Fund.

          Motion to approve.

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

      36. Award of contract to Core Laboratories, Corpus Christi, Texas, in the
          amount of $37,350.00 for laboratory analytical services to analyze 50
          stormwater samples in compliance with the City's National Pollution
          Discharge Elimination System (NPDES) stormwater permit.

          Motion to approve.

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

      37. Award of a contract to Reed-Stowe of Austin, Texas for the development of
          an impact fee study.  The study which will have a cost not to exceed
          $80,000.00, will include a cost of service analysis, the development of
          impact fees based on a 10-year CIP program, and an implementation and
          trading methodology.

          Motion to approve.

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

      38. Award of a contract to NRS Engineers, of Harlingen, Texas, for the
          preparation of a 10-year Capital Improvements Program for water and
          wastewater. The study, which will provide information for the impact fee
          study, will cost $20,000.00.

          Motion to approve.

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

      39. Award of contract to Micron Electronics, Inc., Nampa, Idaho, a State of
          Texas Qualified Information System Vendor, in the amount of $100,274.00 for
          the purchase of forty personal computers. Staff is recommending purchasing
          these computers through the State of Texas - Catalogue Purchase Program.
          Purchasing micro-computers from State qualified vendors allow the City to
          tailor the computer to the needs and budgets of the departments.

          Motion to approve.

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

      40. Approval of change order no. 2, an increase of $1,646.20, for the balance
          of quantities actually constructed in place, and an increase to the
          contract time of 72 working days due to delays beyond the contractor's
          control, acceptance of the North Laredo/Webb County Infrastructure Sanitary
          Sewer Improvements along Del Mar Boulevard (EDA Project No. 08-01-02878)
          from the sanitary system at Winfield Subdivision to the Webb County
          Detention Center, and approval of final payment in the amount of
          $144,836.13 to Ramex Construction Company, Houston, Texas.  Final
          construction contract amount is $1,197,356.63. Funding is available in
          North Laredo/Webb County Infrastructure Project.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  7                       Against:  0         Abstain:  0
          Mayor Protem Casso returned to chair the meeting.

      41. Approval of amendment no. 1, an increase of $21,648.53 to the
          architectural/engineering contract with Ashley Humphries & Sanchez
          Architects for the Father Charles McNaboe Recreational Complex.  This
          increase was not anticipated, however, the approval of a grant from Texas
          Natural Resource Conservation Commission augmented the cost of the
          recreational facility from $931,000.00 to $1,223,327.00 to accommodate the
          Stormwater Pollution Control features in the Ecology Demonstration
          Showcase.  Original A/E fee of $69,000.00 is increased by $21,648.53 for a
          current A/E of $90,648.53.

          Motion to approve.

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

      42. Authorizing the Utilities Department to allow the construction of a 12"
          water line to temporarily serve the future Pan American Trailer Park, in
          exchange for a letter of credit covering the cost of the trailer park's
          participation in a future reimbursement contract.

          Motion to approve.

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

      43. Approving a request from the Washington Birthday Celebration Association to
          use airport premises for the purpose of a public display of aircraft and
          other National Guard resources at no cost to the Washington Birthday
          Celebration Association.  This event will be held on Sunday, February 23,
          1997.  There will be no charge to the public to attend the event.

          Motion to approve.

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

      44. Authorizing the award of 1996 Emergency Shelter Grant (ESG) Funds made
          available by the U.S. Dept. of Housing and Urban Development (HUD) to:
          Catholic Social Services of Laredo, Inc.  (CSSL) in the amount of
          $74,750.00 for the rehabilitation of the Frontera Halfway House to include
          a study/library center which can also be utilized as additional bed space
          in times of emergency and the construction of a hallway connecting the
          cafeteria to the main shelter structure; and to the Laredo Webb County
          Community Action Agency (CAA) in the amount of $34,500.00 for the provision
          of homeless prevention services; and authorizing the execution of any and
          all documents resulting from such an award.

          Motion to approve.

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

      45. Authorizing the award of 1993 and 1995 HOME Investment Partnerships
          Program, Community Housing Development Organization (CHDO) set aside funds
          to: Habitat for Humanity ($103,800) for the acquisition of 6 lots on which
          6 single family housing units for homeownership will be constructed with
          non HOME funds; Azteca Economic Development and Preservation Corporation
          ($40,000) for the acquisition of 2 lots within the Azteca Neighborhood on
          which 2 single family affordable rental units will be constructed with non
          HOME funds; and Laredo Webb Neighborhood Housing Services ($112,250) for
          the provision of downpayment assistance to 36 first time homebuyers.

          Cindy Collazo, Community Development Director, gave an overview of the
          project.

          Motion to approve.

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

      46. Approval of agreement authorizing Narseco Sandoval to act as an agent for
          the City of Laredo to sell fence spaces at West Martin Field for the
          purpose of advertising.  The agent will be selling the spaces at $1,200.00
          per sign and will be paid a flat fee of $100.00 per sign sold.  The term of
          the agreement will be for one (1) year.

          Motion to approve.

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

  IX.  CITY MANAGER'S REPORT

      47. Establishing the need to widen blocks 1700-2200 of Lafayette St. from 18
          feet up to 31 feet of right-of-way, or as may be deemed necessary,
          including the reconstruction of a 4 feet sidewalk to address safety
          concerns.  In order to carry forth this improvement, staff also seeks
          authorization to initiate the amendment process necessary to reprogram
          $1,000,000.00 in 22nd Action Year Community Development Block Grant Funds
          (CDBG) previously allocated for the acquisition of land and $633,886.00 in
          19th and 20th Action year CDBG fund balances for the purpose of acquiring
          necessary right-of-way and relocating affected residents through Phase I of
          this project.  Also requesting City Council authorization to plan opening
          of bridge on or by February 14, 1997.

          Motion to approve.

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

      48. Presentation of the 1995-96 Comprehensive Annual Financial Report (CAFR)
          prepared by the City of Laredo's Financial Services Department and audited
          by the independent audit firm of Baum & Mejia CPA's.

          Mr. Clayton Baum, of Baum & Mejia CPA's, introduced Mr. Raul Garza who gave
          the council an overview of eight reports.  He reported that they have gone
          over these findings and the financial statements in detail with management
          and the Audit Committee.  These eight reports cover three general areas of
          the city, the financial statements, the Internal Control structure of the
          city and the compliance with the governing laws and regulations.  The
          report which they have issued is unqualified or in other words "a clean
          report", which is that they did not find anything wrong with the financial,
          internal control structure or the compliance of the city that they consider
          to be material.  They did however find some immaterial instances with the
          aforementioned areas, and they have addressed their recommendations in
          detail with management and the Audit Committee.

          He went over the general purpose financial statements, and focused on the
          general fund assets and added that on 9/30 the total assets amount to
          $18,304,980.00, liabilities amount to
          $8,555,874 which resulted in the audited fund balance of $9,749,106 and
          comparing that to the estimated fund balance at 9/30/96 which was included
          in the budget you had expected fund balance of $9,067,471.00.  On the
          actual balance you came up $681,635.00 better than anticipated.  On 1996/97
          period it was estimated a beginning fund balance of $8,351,898.00 whereas
          the actual fund balance is $9,749,106.00 which is approximately $1.3
          million cushion that is not in the budget.

          Cw. Moreno stated that the committee met with staff and with
          representatives from the company, the meeting was very informative,
          beneficial and they were very satisfied with all the information they got.

          Motion to accept the report as presented by Mr. Raul Garza.

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

      49. Request for Executive Session pursuant to Section 551.072 of the Texas
          Government Code to discuss land acquisitions in conjunction with the siting
          of fire stations in both north and south Laredo.

          Motion to go into Executive Session pursuant to Section 551.072 of the
          Texas Government Code to discuss land acquisitions in conjunction with the
          siting of fire stations in both north and south Laredo.

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

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

 X.  COMMUNICATIONS

      A.  Presentation by Andrew Neblett, Director of the Office of Pollution
          Prevention and Recycling and Helen Lowman, Clean Cities 2000 Coordinator of
          a membership certificate to the Mayor and City Council and a city limit
          sign with the "Clean Cities 2000 Member" logo.

          Ms. Helen Lowman of the Clean Cities 2000 Coordinator made the presentation
          to the council and presented the Mayor Protem with the logo sign.

  XI.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

    A.  Requests by Councilmember Cecilia May Moreno

       1.  Approval of my nominee, Nick Villarreal to the Parks and Recreation
           Advisory Board.

           Motion to approve nominee, Nick Villarreal to the Parks and Recreation
           Advisory Board.

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

    B.  Requests by Councilmember Joe A. Guerra

       1.  Approval of my nominees, Mark Pease and Antonio Hernandez to the Planning
           and Zoning Commission and the Beautification Committee respectively.

           Motion to approve nominees, Mark Pease and Antonio Hernandez to the
           Planning and Zoning Commission and the Beautification Committee.

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

 XII.  PUBLIC HEARINGS

      51. Public hearing amending the City of Laredo's 1996-1997 Annual Budget by
          increasing estimated revenues and appropriations in the General Fund by
          $4,004.00, resulting from redirected funds from the Texas Historical
          Commission's Certified Local Government Program, 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 by
          increasing estimated revenues and appropriations in the General Fund by
          $4,004.00 and authorizing the Interim City Manager to implement said
          budget, providing for publication and effective date.

          Motion to open the public hearing.

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

      52. Approval of bid specification and authorization to advertise for bids for
          the following:   security guard services - Tomas Flores Apartment Complex.

          Motion to approve.

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

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

          Moved : Cm. Alvarado
          Second: Cw. Moreno
          For:  6                       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 Laredo Mass Transit Board.

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

      53. Award of contract to Micron Electronics Inc., Nampa, Idaho, a State of
          Texas Qualified Information System Vendor, in the amount of $23,384.00, for
          the purchase of eight personal computers.  Staff is recommending purchasing
          these computers through the State of Texas - Catalogue Purchase Program.

          Motion to approve.

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

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

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

  XV.  ADJOURNMENT

          Motion to adjourn.          Time of adjournment:  8:43 p.m.

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

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 18
ARE TRUE COMPLETE AND CORRECT PROCEEDING OF THE REGULAR CITY COUNCIL MEETING HELD ON
THE 3RD DAY OF FEBRUARY, 1997.  A CERTIFIED  COPY IS ON FILE AT THE CITY SECRETARY'S
OFFICE.

                                  ________________________
                                    GUSTAVO GUEVARA, JR.
                                     CITY SECRETARY