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

                                       MINUTES

       M97-R-09                                          MARCH 3, 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 led in the Pledge of Allegiance.

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

  IV.  APPROVAL OF MINUTES

       2. Special City Council Meeting of February 15, 1997
          City Council Meeting of February 18, 1997
          City Council Meeting of February 24, 1997
          City Council Workshop of February 27, 1997

          Motion to approve.

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

   V.  FINAL READINGS

       Motion to waive the final reading of ordinance(s) #97-O-052,
       #97-O-053, #97-O-054, #97-O-055, #97-O-056, #97-O-57, #97-O-058,
       #97-O-059, #97-O-060, #97-O-061, #97-O-062, and #97-O-63.

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

       3. 97-O-052  Ordinance amending the City of Laredo's 1996-97 annual
                    budget in the amount of $59,795.00 for a grant awarded by
                    the Texas Natural Resource Conservation Commission through
                    the South Texas Development Council to develop and
                    implement one (1) Household Hazardous Waste Collection and
                    Proper Disposal Program event.  The event is scheduled for
                    April 19, 1997 and authorizing the City Manager to
                    implement said budget.  (City Council)

                    Motion to approve ordinance #97-O-052.

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

       4. 97-O-053  Ordinance amending the zoning ordinance (map) of the City
                    of Laredo by rezoning Lots 2, 3, & 4, Block 1005, Eastern
                    Division, located at 1800 Ligarde, from B-1 (Limited
                    Business District) to B-3 (Community Business District).
                    (Jose R. Perez Jr.)

                    Motion to approve Ordinance #97-O-053.

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

       5. 97-O-054  Ordinance amending the Zoning Ordinance (Map) of the City
                    of Laredo by rezoning 18.77 acres out of Porcion 36,
                    Abstract 473, as further described by metes and bounds
                    located west of US 83 and north of Ca¤ones Boulevard from
                    AG (Agricultural District) and R-3 (Mixed Residential
                    District) to R-1-MH (Single Family Manufactured Housing
                    District).  (Jose R. Perez Jr.)

                    Motion to approve Ordinance #97-O-054.

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

       6. 97-O-055  Ordinance authorizing the issuance of a Special Use Permit
                    for sand and gravel sales/storage, on Lot 1, Block 1,
                    Northeast Complex, located at 1319 Muller Road.
                    (Louis H.  Bruni)

                    Motion to approve Ordinance #97-O-055.

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

       7. 97-O-056  Ordinance amending the Zoning Ordinance (Map) of the City
                    of Laredo by rezoning Lots 3 thru 8, Block 2012, Lots 7 and
                    8, Block 1941, Eastern Division, and 29,278.18 square feet
                    of closed public R.O.W.  formerly known as Laredo Street,
                    located at the northwest corner of Ejido Avenue and Laredo
                    Street, from R-3 (Mixed Residential District) to M-1 (Light
                    Manufacturing District). (Louis H.  Bruni)

                    Motion to approve Ordinance #97-O-056.

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

       8. 97-O-057  Ordinance amending the Zoning Ordinance (Map) of the City
                    of Laredo by rezoning Lots 7C and 8C, Block 87, Eastern
                    Division, located at the northeast corner of Monterrey
                    Avenue and Rosario Street, from R-3 (Mixed Residential
                    District) to M-1 (Light Manufacturing District).
                    (Alfonso "Poncho" Casso)

                    Motion to approve Ordinance #97-O-057.

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

       9. 97-O-058  Ordinance amending the Zoning Ordinance (Map) of the City
                    of Laredo by authorizing the issuance of a Conditional Use
                    Permit for truck/trailer rental on Lot 2, Block 8,
                    McPherson Acres Development, Unit III, located at 1613
                    Calle Del Norte.  (Eliseo Valdez, Jr.)

                    Motion to approve Ordinance #97-O-058.

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

      10. 97-O-059  Ordinance amending the Zoning Ordinance (Map) of the City
                    of Laredo by rezoning Lots B and C, North Town Auto Center,
                    located at #1 Auto Road South, from B-3 (Community Business
                    District) to B-4 (Highway Commercial District).  (Joe A.
                    Guerra)

                    Motion to approve Ordinance #97-O-059.

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

      11. 97-O-060  Ordinance amending the Zoning Ordinance (Map) of the City
                    of Laredo by rezoning Tract "A", and Lot 1, Block 1, of
                    Tract "E", North Town Auto Center, located at 6001 San
                    Dario Ave., from B-3 (Community Business District) to B-4
                    (Highway Commercial District).  (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-060.

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

      12. 97-O-061  Ordinance amending the City of Laredo's 1996-1997 annual
                    budget by increasing estimated revenues and appropriations
                    in the General Fund by $5,350.00, and authorizing the City
                    Manager to implement said budget.  (City Council)

                    Motion to approve Ordinance #97-O-061.

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

      13. 97-O-062  Ordinance authorizing the issuance of a Special Use Permit
                    for Gas Extraction Facility to Waters Engineering &
                    Operating, Inc., for a 5.0 acre tract out of Abstract 239,
                    as further described by metes and bounds, located west of
                    Hwy. 83, north of Tinaja Street, and south of Saltillo
                    Street, known as Nora Lee Notzon No. 1 Well, of the City of
                    Laredo; providing for publication and effective date.
                    (City Council)

                    Motion to approve Ordinance #97-O-062.

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

      14. 97-O-063  Ordinance amending Section 24.1.2.2 of the Laredo Land
                    Development Code of the City of Laredo relating to
                    "HISTORIC DISTRICT/LANDMARK BOARD; POWER AND DUTIES";
                    providing for publication and effective date.
                    (City Council)

                    Motion to approve Ordinance #97-O-063.

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


  VI.  RESOLUTIONS

      15. 97-R-025  Supporting the Concord Hills Development and the provision
                    of downpayment assistance to qualifying low and moderate
                    income first-time homebuyers in the form of forgivable
                    individual loans of $3,000.  Passage of this resolution,
                    will allow the City to negotiate a contract with Vaquillas
                    Development Ltd. and the Texas Department of Housing and
                    Community Affairs that details the specific conditions of
                    assistance to be provided including but not limited to:
                    1.  That the $1.8 million dollar project be funded subject
                        to the annual appropriation by City Council and the
                        availability of HOME Investment Partnerships Program
                        (HOME) funds provided by the U.S. Dept. of Housing and
                        Urban Development (HUD).
                    2.  That funds be allocated for each specific year based on
                        Vaquillas Development Ltd.'s performance and ability to
                        construct housing as per the schedule proposed.  Fund
                        balances not utilized will forfeited.
                    3.  That the form of assistance (forgivable loans) provided
                        to the Concord Hills Development be consistent with the
                        assistance provided citywide to other individuals
                        through the City's regular Downpayment Assistance
                        Program.
                    4.  That the disbursement of funds by the City to Vaquillas
                        Development Ltd. be contingent on the State's and
                        County's award of matching funds.
                    Once the project is underway, the City would also need to
                    enter into individual contracts with the homebuyers who
                    would be directly assisted.  It is further proposed that
                    this resolution authorize the revision of the City's
                    Downpayment Assistance Program as funded through the HOME
                    Program to conform with this initiative and provide for
                    fair and equal housing opportunities citywide to others not
                    associated with the Concord Hills Development and who also
                    seek downpayment assistance, by incorporating the following
                    changes:
                    1.  Raise the maximum assistance which can be provided from
                        $2,500 up to $3,000
                    2.  Convert the program from a payable loan to a forgivable
                        loan program contingent on the assisted unit's
                        continued affordability for a 5 year period.
                    3.  Eliminate the 50% match requirement.

                    Motion to table and to incorporate that a resolution
                    and a contract be brought back to City Council for approval
                    on March 17th to include items as specifically stated by
                    the Texas Department of Housing and Community Affairs.

                    Moved : Cm. Perez
                    Second: Cm. Guerra
                    For:  7              Against:  1        Abstain:  0
                                         Cm. Casso

                    Motion to waive the rules of order move up item 36.A(1),
                    E(1) and E(2).

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

      16. 97-R-027  Authorizing the issuance of a Drilling Permit to drill and
                    operate a natural gas well to Waters Engineering &
                    Operating, Inc. on 5.0 acres out of Abstract 239 as further
                    described by metes and bounds, located west of Highway 83,
                    south of Saltillo Street, and north of Tinaja Street, known
                    as the Nora L. Notzon No. 1 Well.

                    Motion to approve Resolution #97-R-027.

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

      17. 97-R-028  Resolving that the City Manager may execute a Sub-
                    Ordination, Non-Disturbance and Attornment Agreement
                    between the City of Laredo, as Lessor, and L.A. Ventures,
                    Inc., as Lessee, and Laredo National Bank, as Lender, for
                    the purpose of securing a temporary and permanent loan for
                    the improvements made on Lot No. 4 of Block No. 1 at the
                    Laredo International Airpark Subdivision at the Laredo
                    International Airport.

                    Motion to approve Resolution #97-R-028.

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

      18. 97-R-029  Resolving that the City Manager may execute a Sub-
                    Ordination, Non-Disturbance and Attornment Agreement
                    between the City of Laredo, as Lessor, and L.A. Ventures,
                    Inc., as Lessee, and Laredo National Bank, as Lender, for
                    the purpose of securing a temporary and permanent loan for
                    the improvements made on Lot No. 5 of Block No. 1 at the
                    Laredo International Airpark Subdivision at the Laredo
                    International Airport.

                    Motion to approve Resolution #97-R-029.

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

 VII.  MOTIONS

      19. Approval of a professional services contract with Dr.  Maurice Click,
          to act as the Health Department's Health Authority under Section
          121.033 of the Texas Health and Safety Code, for a period of two
          months, and Dr. Benson Huang, to serve as Tuberculosis Elimination
          Program Clinician, also for two months.

          Motion to approve.

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

      20. Authorization to request Interest Statements from local physicians
          for the appointed position of Health Authority from April 1, 1997, to
          September 30, 1997, to be compensated at a monthly contract rate of
          $1,060.00, and Interest Statements for physician services related to
          the Tuberculosis Elimination Program from April 1, 1997, to September
          30, 1997. Compensation for the Tuberculosis Program will be at a rate
          of $1,500.00, per month for the TB Jail Project, and $150.00, per
          clinic for the regular program clinic at the Health Department.
          Funding for the Health Authority will be from state grants. Funding
          for the TB Jail Program is from Webb County while funding for the
          regular TB Program is from state grants.

          City Secretary Gustavo Guevara, Jr. noted for the record that
          the date of September 30, 1997 should read March 31, 1998.

          Motion to approve.

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

      21. Approval of the construction plans and authorization to advertise for
          bids for the Father Charles McNaboe Recreational Complex. A tentative
          bid award is scheduled for April 21, 1997.

          Motion to approve construction plans and authorize to advertise for
          bids.

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

      22. Approval of bid specifications and authorization to advertise for
          bids for the following:
          a)  landscaping contract - Farias, Tarver, and Cigarroa Recreation
              Centers
          b)  irrigation system installation - Farias, Tarver, and Cigarroa
              Recreation Center
          c)  swimming pool chemicals
          d)  bunker gear - Fire Department
          e)  safety footwear - Fire Department
          Tentative bid award is scheduled for April 7, 1997.

          Motion to approve.

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

      23. Authorizing the City Manager to solicit Request for Proposals from
          qualified engineering consultants for developing a Comprehensive
          Stormwater Management Ordinance(s) and Best Management Practices
          (BMP) guidance manual, per the City's National Pollution Discharge
          Elimination System (NPDES) stormwater requirements.  These ordinances
          and the BMP guidance manual are the initiation of the Stormwater
          Master Planning Process. A tentative bid award is scheduled for April
          1997.

          Motion to approve.

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

      24. Award of a one year food and beverage concessions contract for West
          Martin Field to J & H, Laredo, Texas. The concession services will be
          provided for the 20 games (plus playoffs) that the Tecolotes De Los
          Dos Laredos will be playing at West Martin Field during the 1997
          Mexican Baseball Season plus any City-sponsored special events. The
          concessionaire will be paying the City 15% of sales.

          Motion to approve.

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

      25. Award of an annual service contract to the SOLE BIDDER, Movac
          Environmental Service, Inc., McAllen, Texas, in the estimated amount
          of $30,000.00, for furnishing vacuum truck services to transport
          domestic sewage and/or sewage sludge for the Utilities Department -
          Wastewater Division.  Funding for this service is available in the
          Utilities Department's Wastewater Treatment Division Contractual
          Services Account.

          Motion to approve.

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

      26. Authorize the purchase of twelve portable radios for the Police
          Department through the Houston Galveston Area Council of Governments
          (HGAC) -Cooperative Purchasing Program, in the total amount of
          $22,920.00.  These voice secure radios will be purchased through the
          cooperative purchasing contract vendor Motorola.  Delivery of these
          radios is expected within sixty days. Funding for this purchase is
          available in the Police Department's Trust Fund - Capital Outlay
          Account.

          Cw. Moreno asked if there are any plans to fix asset inventory.

          Mr. Pena stated that they will look into that and attack the problem
          in a departamental basis.

          Motion to approve.

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

      27. Authorize the purchase of two fire pumpers through the Houston
          Galveston Area Council of Governments (HGAC) -Cooperative Purchasing
          Program, in the total amount of $552,007.00.  These two pumper trucks
          will be replacements for two, 1979 Fire Fox fire trucks currently in
          operation.  The two replacement trucks will be assigned to Fire
          Station #3 (San Bernardo) and #8 (Del Mar).  Funding is available
          from Contractual Obligation bond proceeds.  Delivery is anticipated
          within six to nine months.  This purchase will be made through the
          use of Certificates of Obligation.

          Motion to approve.

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

      28. Award of an engineering contract to Crane Engineering Corporation,
          Laredo, Texas, for an amount not to exceed $67,500.00, to provide
          surveys, design and the preparation of plans and specifications for
          the Street Paving Assessment Project 60 (24 Blocks). Contract time is
          120 calendar days. A

          total of 13 engineers/architects responded to the request for
          proposals. Funding is available in the Street Fund.

          Motion to approve.

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

      29. Award of a construction contract to the LOW BIDDER, Pete Gallegos
          Paving, Inc., Laredo, Texas, in the amount of $98,790.00 for the
          Repairs to the Tinaja Creek Concrete Channel Improvements between San
          Salvador and Pecan Street.  Contract time is 80 working days. A total
          two bids were received for this service. Funding is available in the
          Capital Improvements Fund.

          Motion to approve.

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

      30. Award of a construction contract to the SOLE BIDDER, Cutler Repaving,
          Inc. in the amount of $257,803.04 for the 1996-1997 Street Recycling
          Project (133.5 Blocks). Contract time is 90 working days.  Funding is
          available in the Capital Improvement Fund.

          Motion to add the last block of Ejido located at Saunders and
          Ejido to this list.

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

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

      31. Approval of change order no. 1, an increase of $12,955.00, for
          additional sealing on the expansion joint and additional grouting of
          structural cracks, and to add 60 calendar days as a result of an
          interruption of work to allow the consultant to review the condition
          of the tank where the additional work was required to determine a
          method of repair as well the time required to await cleaning work by
          the Utilities Department of the interior floor of the structure so
          that the consultant could again review all conditions to determine if
          any additional areas needed to be addressed, to the construction
          contract with N.G.  Painting, Inc., Kerrville, Texas, for the Repairs
          to the North Ground Water Storage Tank located at Lyon Street and
          Meadow Avenue. Original contract amount was $80,900.00.  This change
          order will bring the total contract amount to $93,885.00.  Funding is
          available in the Waterworks System Fund.

          Motion to approve.

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

      32. Approval of change order no. 1, an increase of $565.00, for the
          balance of quantities actually constructed in place, acceptance of
          the Geosynthetic Clay Liner for Type IV Landfill located at the City
          of Laredo Landfill on State Highway 359 in accordance with the
          Subtitle "D" Requirements of the Texas Natural Resource Conservation
          Commission (TNRCC), and approval of final payment in the amount of
          $24,228.00 to Big "D" Environmental, Midland, Texas.  Final
          construction contract amount is $237,195.00. The project was
          completed within the allotted time.  Funding is available in the
          Landfill Fund.

          Motion to approve.

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

VIII.  CITY MANAGER'S REPORT

      33. Authorizing the City Manager to amend the November 18, 1996
          Interlocal Agreement between the County of Webb and the City of
          Laredo for fire protection, medical emergency, and rescue services to
          be provided outside the City limits to the unincorporated areas
          within Webb County, in order to increase the annual costs for these
          services from $400,000.00 to $500,000.00 per annum payable in equal
          monthly installments of $41,666.66 per annum for a term of three (3)
          years in order to include fire protection services to certain
          "Industrial Districts" as designated in Ordinance No. 97-O-011.

          Cm. Bruni reported that the City/County Metro Committee met with the
          County Commissioners last week to work out this agreement which they
          think is in the best interest of the community and the residents of
          Webb County.

          Motion to approve.

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

      34. Presentation regarding a status report on the progress of the water
          and wastewater Colonias Project.

          Mr. Eduardo Garza representing Paul Garza & Associates stated they
          submitted the report to the Water Development Board on January 24th
          and is currently in the review process and they are still undergoing
          environmental considerations at this time.

          Mr. David Juarez working with Paul Garza on this project reported
          that they did submit a completed final draft to the Texas Water
          Development Board on January.  He has been in communication with the
          Engineering staff who is conducting the review on that report.  He
          mentioned that as far as the schedule goes they had anticipated
          taking some consideration in April, 1997, however there were some
          environmental problems that were identified, their subcontractor
          T.R.C. Miriah did come down to the area, went over the route of the
          proposed line and one area of concern that was identified was the
          area on 359, along the railroad tracks Tex-Mex going to Chacon Creek.
          They are proposing to take the wastewater along the tracks to the
          proposed interceptor creek, however one thing that they found there
          were several brushy areas that were potential habitat for the ocelot.
          To his knowledge there has never been an ocelot identified in Webb
          County, but because they are using federal monies for this project
          they need to look at different alternatives to avoid that habitat.
          One of the alternatives they are looking at, is possibly bore
          underneath the tracts and coming along the northside of the tracks.
          That is something they have talked about.  The environmental firm has
          already looked at that area and they made that recommendation to us.
          They are going to try to expedite the change in their plan and he
          does not anticipate any major changes that would delay the project
          any further.  They do have to follow the proper procedures and
          conduct a formal public hearing which may delay their schedule
          somewhat to possibly May or June.  One of the major concerns was the
          availability of the funds, he is very familiar with the project and
          he has been in discussion with the EDAP and the Texas Water
          Development Board and they have assured him that the funding is still
          going to be there for this project.  They will try to meet the
          schedule.  They will get together with the environmental firm and
          make the changes and then they need to prepare their environmental
          information document.  When that is prepared a formal public hearing
          will be set, they anticipate that within two to four weeks the
          document will be complete and until they have a document that can be
          reviewed by the public they can't set a public hearing.

          Mr. Fernando Roman clarified some significant dates on the project
          and brief council on the retention of a financial advisor issue.

          Mr. Pena stated that the next report will be in 30 days.

          Motion to move item #35 to the end of the meeting.

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

      35. Discussion and possible action regarding possible partial settlement
          agreement in Cause No. C-95-00259-02 styled Jacaman Investment Group,
          LTD., John S. Jacaman Cattle Company, LTD., John Jacaman and Laura
          Jacaman Sanchez v. City of Laredo, with possible Executive Session
          for consultation with attorney pursuant to Section 551.071 (1), (A) &
          (B) of the Texas Government Code.

          Motion to go into Executive Session for consultation with attorney
          pursuant to Section 551.071 (1), (A) & (B) of the Texas Government
          Code.

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

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

          Motion to draft an agreement for partial settlement of issues
          pertaining to the plat for Jacaman Ranch, Unit 1, and authorize the
          City Manager to negotiate procedural and administrative details in
          the final draft subject to the concurrence of the City Attorney as
          Declaratory Judgment by the Court and to execute the agreement and
          carry out its terms.

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

  IX.  COMMUNICATIONS

       a. Presentation by Public Information Officer, Marco Alvarado regarding
          promotional videos on various City projects.

          Marco Alvarado presented (8) 30 second public service announcements
          videos of the Mayor and Councilmembers which highlights various city
          projects and ongoing activities.

       b. Presentation by Candelario Viera concerning a request for a second
          extension of his injury leave status.

          Mr. Candelario Viera was before council requesting another extension
          because he is scheduled for surgery on March 11th.

          Mr. Gilbert Sanchez, Risk Manager, reported that approximately a year
          ago Sgt. Viera came before council to request additional pay injury
          leave and according to administrative protocol the insurance carrier
          for the city has the right to contest that, in any spinal surgery
          that is the process.  The second opinion that was rendered by the TML
          designated doctor did not concur with Sgt. Viera's treating
          physician, at that point he was given the opportunity to solicit a
          third opinion, that third opinion originally did not concur with the
          treating doctors' recommendation for spinal surgery.  At that point
          Sgt. Viera then has the right to go before the Texas Workers'
          Compensation Commission to have a case hearing.  What happened at
          that point was that the hearing officer for the Workmen's
          Compensation Commission rendered a decision in favor of the city or
          TML that spinal surgery was not needed at that time.  Sgt. Viera then
          used his administrative protocol and contested that decision, the
          commission then granted Sgt. Guerra the authority to go back to the
          treating physician to do further testing, which he did.  At that
          point an additional MRI was conducted and the third opinion, which
          they rely on, reverses the original opinion which is why they are
          here today.  Mr. Viera states that surgery is scheduled for March
          11th.

          Mr. Sanchez stated that all medicals will be covered, it's only the
          issue of income benefits.

          Mr. Pena stated that the question here is the continuation of pay.
          Police Officers get 100% of their pay unlike other employees and Mr.
          Viera is asking continuation of pay.

          Motion to give Mr. Viera the extended benefits subject to surgery at
          the time that it is stipulated (March 11th) and subject to the six
          month recovery period that it takes, and at that time for whatever
          reason or a complication in the recovery, etc. that it be brought
          before council prior to benefits expiring.

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

       c. Cw. Montalvo requested that by next council meeting staff bring back
          a cost estimate as far as having an employee collecting delinquent
          taxes for the Tax Department instead of having outside attorneys
          collecting them.

       d. Cm. Bruni stated he was handed an invitation by Maria E. Myer and
          Antonio Munoz who are members of Union de Colonias Olividadas, it
          states council is invited to a very important meeting where
          Mr. Robert Garcia from KLDO is having live coverage for this meeting,
          to be aired at the 10:00 news.  Commissisioner Roque Vela and people
          from the colonias will be attending this meeting and was inviting
          council to witness and contribute their expertise in the matter, the
          meeting is scheduled for March 3rd at 10:00 p.m. at the San Carlos
          Mission.

       e. Mr. & Mrs. Juan Garza from Victory Outreach stated that they have
          opened a new center and was requesting assistance from the city.

          Mayor Ramirez asked that this item be placed on the agenda for the
          next meeting to be sponsored by himself and co-sponsored by Cm.
          Guerra.

   X.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

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

       1.  Recognizing the accomplishments of the "Laredo All American
           Cheerleaders" which consists of 24 school girls ranging in ages from
           9 to 14. These fine young ladies represented the City at the
           National Cheerleaders Association competition held in Dallas on
           February 15 & 16. They placed 22nd nationally out of a pool of 89
           teams.

           Mayor Ramirez recognized the Laredo All American Cheerleaders and
           their leader Mrs. Norma V. Arriaga.

    B.  Requests by Councilmember Louis H. Bruni

       1.  Presentation by former Mayor Aldo Tatangelo on the City of Laredo's
           position on affordable housing with possible action.

           Cm. Bruni asked that items B(1) and B(2) be taken together.

           Mr. Tatangelo stated that his plan or intent is for the city to
           build low income affordable housing on city property for people with
           yearly income of $10,000-$15,000.00 to take them out of slums or out
           of sub-standard housing, unfortunately the original plan has been
           forgotten, the city has bought property, he thinks it is wrong, is
           against this and it's against the rules of HUD.  He wants to know
           what will be done with city property, we have the assets, but
           nothing is done.  He concluded by saying that he wanted a commitment
           by the City Council.
           
           Erasmo Villarreal from Community Development stated there are three
           city blocks in which they are trying to build.  They are trying to
           design a product specifically for what Mr. Tatangelo is taking
           about, building a house with lot for about $20,000 to
           $25,000 that may fit individuals in the very low income level.  They
           already have the funds and specs for the 100 lots that were bought
           at Los Obispos, they were planning to bring those specs next week
           and get authorization.  The funding that they have designated to do
           the construction aspect of these things is now geared to do the
           houses at Los Obispos first and the they will come back and do these
           other projects, or if they can find additional funds, they can do
           this concurrently.

           Cw. Montalvo wanted to know when Mr. Villarreal is coming before
           council to bring all the information.

           Mayor Ramirez stated that Mr. Villarreal is coming back with a plan
           with the cost to put that plan through and at that time
           they will decide where to find the money, re-appropriate once we see
           the plan which will take approximately 45 days for those three
           blocks and at that time if council wants to fund it with the
           $350,000.00 that we have, we can do it.

       2.  Presentation by former Mayor Aldo Tatangelo on the proposed
           demolition of two buildings at the Laredo International Airport with
           possible action.

           Mr. Tatangelo wants to know why they are being torn down.

           Joe Flores, Airport Director, stated that they are not suitable for
           residential or housing use because it is not compatible to the area
           and that the area is better suited for commercial use.

           Motion to instruct staff to prepare a report on the positive
           and negative points on the use of these two buildings.

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

       3.  Status report on the Montgomery/India Drainage Project with possible
           action.

           Rogelio Rivera, City Engineer, reported that this project was
           awarded back in December to Juarez Engineering with a five month
           contract, they are at the end of three months, and they will have
           plans ready by the end of March when they will receive the sub-
           surface exploration which has gotten underway, and if that is done
           possibly by the end of March, the plans will be going out for bids
           in April and will be awarded in May or June and it will take about
           six months for completion.

       4.  Status report on the Santos Trailer Park with possible action.

           Cindy Collazo, Community Development Director, reported that one
           resident was evicted from the property, so there is only one
           remaining.  They did write a letter to the attorney representing the
           Santos Family because they understand the gentlemen will be leaving
           to California this month and they are really pushing for the
           remaining resident to be out of there before the owner leaves and
           were asking for his cooperation.

           Cm. Bruni asked staff that as soon as it is cleared out, to instruct
           the owners to completely clean the property.

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

           Cm. Bruni stated that the park is still messy, dirty, it's an
           eyesore, and there are still families living there.

           Benny Salinas, Building Director, reported that there are some
           houses that do meet standards and that are occupied.  There are some
           that are in terrible condition, some are used as storage buildings,
           and they will be citing violations through the zoning ordinances.
           One of the problems that they are having is that the mobile homes
           belong to Mr. Tomas Gomez and he is a tenant, the property belongs
           to a different party, the owner of the property is trying to evict
           Mr. Gomez, he has moved some of the structures to Rio Bravo but
           there are still many of them in the property.  He added that they
           have been working with the Legal Department to try to settle this
           matter with Mr. Gomez, but have been unable to find him.  Some
           zoning violations have been filed at Municipal Court.
           
           Ginger Reinert, Assistant City Attorney, reported on the status of
           the cases as they presently are at Municipal Court.

       6.  Discussion and possible action concerning the addition of the 1100
           Block of Texas to the City's Paving Program.

           Cindy Collazo, Community Development Director, stated staff went to
           the site and apparently there is interest in the purchasing the
           street.  There are two of three abutting owners that they have
           contacted and that are interested in purchasing the street, so they
           would like to explore that option before, it is officially closed by
           council, so they are talking about 45-60 days if the whole process
           comes through.

           Motion to include this block in project 60.

           Moved : Cm. Bruni
           Second: Cm. Guerra

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

    C.  Requests by Councilmember Alfonso I. "Poncho" Casso

       1.  Discussion and possible action regarding broken water pipes on the
           2400 Block of Fremont Street.

           Cm. Casso stated that these pipes are broken every year for the past
           six or seven years on that block and wants to know when they will
           replace the entire water pipes there.

           Fernando Roman, Utilities Director, stated that they conducted an
           analysis of 11 blocks for seven years and indeed found about 18
           pipes in that lapse, most of them occurred in 2400 and 2700
           block of Fremont.  He added that this area is a transition area
           where the pressure is higher, they would like to begin the
           replacement of these pipes starting on the 2700 block within 30 days
           and then move uphill until they reach the 1500 block.  They don't
           have any problem with the pipes on the 1700-2200 which are the same
           age.

       2.  Discussion and possible action regarding our sign ordinance.

           Motion to table indefinitely.

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

       3.  Discussion and possible action regarding the artwork for the statue
           to replace George Washington.

           Cm. Casso presented the artwork to Mayor Ramirez, wants input from
           council and that council decide what direction to go, and also wants
           to know when the county will pick up the George Washington Statue.

           Mayor Ramirez suggested that the artwork perhaps on the eagle have
           the wings spread out grabbing the flag with one claw and the other
           sort of in an attack mode, which is what the veterans are
           suggesting.

           Cm. Casso suggested it be done like the last time where the City
           Secretary asked for proposals.

           Mayor Ramirez asked that we go out for a proposal package for both
           statues, the eagle, the Santos Benavides and also the airport work
           as well and that the proposal package be brought back for the March
           17th.
           
           Mr. Evan Quiroz stated that the Quiroz family had given the statue
           to the City of Laredo and that it was not on a temporary loan basis,
           the city owns the statue.

           Cm. Bruni stated that if the owner of the statue says it is the
           city's we should keep it and just put a Santos Benavides Statue on
           the front and keep George Washington where it is.

    D.  Requests by Councilmember Cecilia May Moreno

       1.  Status report regarding the painting of the Lyon Street water Tanks.
           Fernando Roman, Utilities Director, reported that he had been in
           contact with Nixon High School and that the painting may probably be
           done in June.

    E.  Requests by Councilmember Mario G. Alvarado

       1.  Recognition of the B.E.S.T. Organization and the Laredo-Webb
           Neighborhood Housing Services, Inc., for acquiring a $20,000.00,
           HOME Rehabilitation Grant for the Perez Family located on Burnside
           Street.

           Cm. Alvarado presented Appreciation Awards to John Puig who was
           presenting the Laredo-Webb Neighborhood Housing Services, Inc.  and
           Henry Flores who was representing B.E.S.T.
           
           John Puig introduced the people in the audience who are part of NHS,
           those present were: Jesse Hinojosa, Tony Martinez, Mario Gonzalez,
           Norma Leal, and Marie Villarreal and Mr. Angelo Picarillo who was
           representing HOME.

           Henry Flores introduced from B.E.S.T. the following: John Arndt,
           Adriana Craddock, Alicia Castillo, and Jesus Ponce.

       2.  Presentation by John Arndt on a disc golf recreation program with a
           request to have the City's Education and Recreation Department
           review this program for possible consideration.

           Mr. John Arndt made the presentation before council and explained
           the need for this sport to our community kids and people of all ages
           and wanted to see if the city could provide some area at any city
           park for this sport.
           
           Cm. Alvarado asked that this proposal be turned over to the
           Parks & Recreation Director for their review.

           Motion to waive the rules of order and move up item #33.

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

       2.  Appointing Norma Castilla as my nominee the Laredo Commission for
           Women.

           Motion appointing Norma Castilla as Cw. Moreno's nominee to the
           Laredo Commission for Women.

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

  XI.  PUBLIC HEARINGS

      37. Public hearing regarding the amendment of the 19th and 20th Action
          Year (AY) Community Development Block Grant (CDBG) Final Statements
          and the 1996 Consolidated Plan as it pertains to the use of 22 Action
          Year CDBG funds for the purpose of reprogramming a total of
          $1,633,886.00, to facilitate Phase I acquisition and relocation
          activities associated with the widening of Blocks 1700-2200 of
          Lafayette Street. CDBG funds and fund balances proposed to be
          reprogrammed include:
          19th Action Year CDBG
          Housing Rehab Administration . . . . . .$       91
          Housing Rehab Loans. . . . . . . . . . .$       17
          Project 48 Grants. . . . . . . . . . . .$    1,054
          Project 50 Grants. . . . . . . . . . . .$    1,370
          Project 47 Street Improvements . . . . .$       20
          Affordable Housing Infrastructure. . . .$  130,587
          Northeast Laredo Park. . . . . . . . . .$    4,321
                        Subtotal . . . . .$137,460
          20th Action Year CDBG
          Administration       . . . . . . . . . .$   24,655
          Housing Rehab Administration . . . . . .$   27,880
          Street Improvement Project 52 Grants . .$    9,120
          Street Improvement Project 54 Grants . .$   19,793
          Street Improvement Project 55 Grants . .$   17,780
          Street Improvement Project 56 Grants . .$    6,025
          Street Improvement Project 54. . . . . .$   22,807
          Santo Nino Wastewater Improvement
            Project. . . . . . . . . . . . . . . .$  150,000
          Azteca Neighborhood Wastewater Imp.
            Project. . . . . . . . . . . . . . . .$  150,000
          Laredo Webb Neighborhood Housing
            Services . . . . . . . . . . . . . . .$   68,366
                        Subtotal . . . . .$496,426
          22nd AY CDBG
          Acquisition of Land for Affordable
            Housing. . . . . . . . . . . . . . . .$1,000,000
                        Subtotal . . . .$1,000,000
                        Total. . . . . . . . . . .$1,633,886

          Motion to open the public hearing.

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

          Juan Ramon Barrera spoke in favor of the amendment.

          Motion to close the public hearing.

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

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

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

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

      38. 97-RT-026 Approval of Resolution authorizing the Laredo Municipal
                    Transit System to enter into an agreement with Mr. Paul
                    Garza, Property owner, and the Texas General Services
                    Commission, lessee, to permit an El Metro Bus and
                    Paratransit Van to access the new Texas Human Services
                    Department Building parking lot located at 4410 State
                    Highway 359 for safe boarding and alighting by passengers.
                    This will allow for the safe and proper boarding and
                    alighting of passengers visiting the new Human Services
                    Department Food Stamp Office.

                    Motion to approve Resolution 97-RT-026.

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

      39. Public hearing concerning the extension of the El Metro busroute #8B,
          "Guadalupe/Villa del Sol", approximately 1.3 miles in order to
          provide public transportation to the new Texas Human Services
          Department located at 4410 State Highway 359.  This extension will be
          effective March 10, 1997.

                            APPROVAL OF A MOTION
          Motion to extend the El Metro bus route #8B, "Guadalupe/Villa del
          Sol", approximately 1.3 miles in order to provide public
          transportation to the new Texas Human Services Department located at
          4100 State Highway 359. This extension will be effective March 10,
          1997.

          Motion to open the public hearing.

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

          Jesus Ponce wanted to know since the Guadalupe Bus serves the veteran
          clinic and runs every hour, will the extension increase the time span
          for the services to the clinic, or will it affect the schedule.  He
          asked that council consider changing the schedule for this route to
          run every 45 minutes.

          Gilbert Segovia, Transit Director, explained that the time span will
          remain the same, they are just making minor adjustments in
          time points, there will be no changes to the actual schedule.  He
          said they will be looking at the next fiscal year to make any
          modifications that they need to do city-wide.

          Motion to approve to extend the El Metro bus route #8B,
          "Guadalupe/Villa del Sol", approximately 1.3 miles in order to
          provide public transportation to the new Texas Human Services
          Department located at 4100 State Highway 359.

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

      40. Award of contracts to the following LOW BIDDERS MEETING
          SPECIFICATIONS for the purchase of equipment and furniture for the
          Inter-modal Downtown Transit Center:
          a) Design Source, Laredo, Texas-Desks   $ 8,766.87
             (a total of five bids were received)
          b) Cook & Jones, McAllen, Texas-Seating $ 9,539.50
             (a total of five bids were received)
          c) Executive World, Laredo, Texas-
             Misc. Furniture                      $ 6,489.00
             (a total of five bids were received)
          d) Tenant, Anaheim, CA-Parking Lot
             Sweeper                              $31,917.39
             (a total of two bids were received)
          Funding is available in the Transit System -Section 3 Grant, Inter-
          Modal Transit Center Account.

          Motion to approve.

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

      41. Approval of amendment no. 4, an increase of $2,300.00, to the
          professional engineering and architectural contract with Wilbur Smith
          Associates Engineers, Houston, Texas, for additional structural
          engineering design services for canopy improvements at the Intercity
          Bus Service Facility at Phase "B" of the Laredo Intermodal Transit
          Center. Original contract amount was $765,000.00.  This change
          amendment will bring the total contract amount to $792,030.00.
          Funding is available in Transit System Purchase Professional Fee
          Account.

          Motion to approve.

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

      42. Approval of change order no. 1, a decrease of $12,060.00, to the
          contract with Nova Bus, Inc., to purchase fifteen compressed natural
          gas transit buses, to delete the bus stripe painting option and have
          the El Metro's maintenance personnel apply logo and stripe decals.
          Original contract amount was $4,516,200.00.  This change order will
          reduce the total contract amount to $4,504,140.00.

          Motion to approve.

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

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

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

XIII.  ADJOURNMENT

          Motion to adjourn.

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

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES O1 TO 26 ARE TRUE
COMPLETE AND CORRECT PROCEEDING OF THE REGULAR CITY COUNCIL MEETING HELD ON THE
3RD DAY OF MARCH, 1997.  A COPY IS ON FILE AT THE CITY SECRETARY'S OFFICE.

                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY