CITY OF LAREDO
                          CITY COUNCIL MEETING

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

                                 MINUTES

       M97-R-16                                   MAY 5, 1997

   I.  CALL TO ORDER

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

  II.  PLEDGE OF ALLEGIANCE

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

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

       ABSENCES:

       Motion to excuse Cw. Montalvo.

       Moved : Cm. Perez
       Second: Cm. Guerra
       For:  6                     Against:  0         Abstain:  0
       Cm. Casso was not present, he joined the meeting at 5:40 p.m.

       Motion to waive the rules of order and move up item IX.A, B,
       X.A(1).

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

       Motion to waive the rules and move item X.C(4)

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

       Motion to waive the rules and move item D(1).

       Moved :
       Second:
       For:  6                     Against:  0         Abstain:  0


  IV.  INTRODUCTORY ORDINANCES

       2.  Amending Section 2-17 of Article II, Chapter 2 of the code
           of ordinances to create a utilities billing division in the
           Utilities Department, and to create a Tax Assessing and
           Collection Division in the Tax Department.  This amendment
           will restructure the Tax and Utilities Departments by moving
           the utilities billing function to the Utilities department.

           Ordinance Introduction: City Council

       3.  Authorizing the City Manager to execute a lease with United
           Exports Trading Association (U.E.T.A.) of Texas, Inc., for
           approximately 2,526 square feet out of Lot 10, Block 22, in
           the Western Division, City of Laredo, Webb County, Texas,
           lying North of the concrete pavement connecting Salinas
           Street with Water Street.
           1.  Lease term is for three (3) years commencing on April
               21, 1997 and ending April 20, 2000,
           2.  Monthly rent will be $720.00, providing for effective
               date.

           Ordinance Introduction: City Council


   V.  FINAL READINGS

          Motion to waive the final reading of ordinance 97-O-099,
          97-O-100, 97-O-101, 97-O-102, 97-O-103, 97-O-104, and
          97-O-105.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  5                  Against:  0              Abstain: 0
          Mayor Protem Casso was chairing the meeting and Cw. Moreno
          was out temporarily.

       4. 97-O-099  Ordinance amending the zoning ordinance (Map) of
                    the City of Laredo by rezoning Lot 7, Block 1744,
                    Eastern Division, located at 2806 Cross Street,
                    from R-2 (Multi-Family District) to R-3 (Mixed
                    Residential District); providing for publication
                    and effective date.  (Jose R. Perez Jr.)

                    Motion to approve Ordinance #97-O-099.

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

       5. 97-O-100  Ordinance amending the zoning ordinance (Map) of
                    the City of Laredo by rezoning Lot 9, Block 623,
                    Eastern Division, located at 520 McPherson Avenue,
                    from M-1 (Light Manufacturing District) to R-3
                    (Mixed Residential District), providing for
                    publication and effective date.  (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-100.

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

       6. 97-O-101  Ordinance authorizing the issuance of a Conditional
                    Use Permit for warehousing of bagged sand on 15,940
                    square feet of the North 1/2 of the Texas Mexican
                    Railway Company Right-of-Way through Block 1082,
                    Eastern Division, as further described by metes and
                    bounds, located at 701 Buena Vista Avenue;
                    providing for publication and effective date.
                    (Jose R. Perez)

                    Motion to approve Ordinance #97-O-101.

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

       7. 97-O-102  Ordinance amending the zoning ordinance (Map) of
                    the City of Laredo by rezoning the South 1/2 of the
                    Southwest 1/4 of Block 40, Calton Garden
                    Subdivision, located at 4601 San Francisco Avenue,
                    from R-3 (Mixed Residential District) to B-1
                    (Limited Business District); providing for
                    publication and effective date.  (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-102.

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

       8. 97-O-103  Ordinance the zoning ordinance (Map) of the City of
                    Laredo by rezoning Lot 1, Block 1, Salazar
                    Distribution Center, located at 14002 Mines Road,
                    from B-1 (Limited Business District) to M-1 (Light
                    Manufacturing District); providing for publication
                    and effective date.  (Consuelo Montalvo)

                    Motion to approve Ordinance #97-O-103.

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

       9. 97-O-104  Ordinance authorizing the issuance of a Conditional
                    Use Permit for a pawn shop on Lot 10, Block 46,
                    Western Division, located at 1019 Farragut Street;
                    providing for publication and effective date.
                    (Consuelo Montalvo)

                    Motion to approve Ordinance #97-O-104.

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

      10. 97-O-105  Ordinance authorizing the issuance of a Conditional
                    Use Permit for a jewelry only pawn shop on Lot 4
                    and the South 8.56 Feet of Lot 3, Block 9, Western
                    Division, located at 1102 Zaragoza Street;
                    providing for publication and effective date.
                    (Consuelo Montalvo)

                    Motion to approve Ordinance #97-O-105.

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


  VI.  RESOLUTIONS

      11. 97-R-050  Opposing Senate Bill 1937 which will severely limit
                    a local government's right to manage their right-
                    of-ways.

                    Motion to approve Resolution #97-R-050.

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


 VII.  MOTIONS

      12. Approval of a preliminary plan for the Three Points
          Affordable Housing Project as prepared by Sanchez and Sanchez
          Architects for 32 single family affordable housing dwellings
          for low income applicants ranging from $12,000.00, to
          $15,000.00/annual income.  These homes will be located in an
          area bounded by Piedra China on the north, Mercer on the
          south, New York on the west and Canada on the east.  The
          preliminary plan includes one (1) floor plan and four (4)
          different elevations (facades).  At the March 3, 1997,
          meeting, City Council directed staff to develop a project to
          provide housing for low income families (those earning
          between $12,000.00 and $15,000.00 annually).  Staff is
          seeking City Council authorization to proceed.

          Cm. Perez stated that on a previous meeting it was set up
          that these homes were to be built, then they would go through
          the process of who would qualify and he had requested then,
          that staff look as to how people living in flood areas would
          be given the first option of qualifying them as flood victims
          or something to that effect.

          Erasmo Villarreal of Community Development stated that since
          that date some drainage improvements have been done to that
          area and there has been no flooding.

          Cm. Perez stated he does not have a concern with the drainage
          problem, only that these people need to be given the
          opportunity to get out of there if they need to.   He still
          wants these people to get priority or first choice for those
          affordable housing if they qualify.

          Mr. Pea stated they need to look at this issue more closely,
          it is not a relocation type of activity, but if there is
          another way to do that they will identify what those areas
          are and will bring back a report.

          Motion to approve.

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

      13. Approval of plans and specifications as prepared by Frank
          Architects, Inc., and authorization to advertise for bids
          from general contractors for 50 single family affordable
          housing dwellings for low and moderate income applicants for
          the Los Obispos Affordable Housing Project Phase I, to be
          located on Block 2, Lots 1-50 at Los Obispos Subdivision,
          Unit V. The final plans include six (6) different floor plans
          and six (6) different front elevations (facades) for a home
          of approximately 1,100 square feet.  A tentative bid award is
          scheduled for June 23, 1997.

          Motion to approve.

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

      14. Approval of bid specifications and authorization to advertise
          for bids for the following:
          a) uniforms - Police/Fire Departments/Bridge System
          b) lawn maintenance services - Utilities Department/Bridge
             System
          c) purchase of a submersible sewage pump -Utilities
             Department - Wastewater Treatment Division.
          A tentative bid award is scheduled for June 16, 1997.

          Motion to approve.

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

      15. Approval of construction plans and specifications and
          authorization to advertise for bids for the Alma Pierce
          Drainage Improvements.  The project consists of extending an
          existing storm sewer along Logan Avenue from San Carlos
          Street to Ryan Street in order to improve the drainage around
          Alma Pierce Elementary School.  A tentative bid award is
          scheduled for June 16, 1997.

          Motion to approve.

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

      16. Approval of construction plans and specifications and
          authorization to advertise for bids for a New Air
          Conditioning System and its accompanying Roof Structural
          Support for the Bridge Administration Building located at the
          Juarez-Lincoln International Bridge No. 2.  A tentative bid
          award is scheduled for June 16, 1997.

          Motion to approve.

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

      17. Award of a contract to the LOW BIDDER, Gillespie Ford, San
          Antonio, Texas, in the amount of $20,820.00, for the purchase
          of one 3/4 ton truck for the Community Development
          Department.  This vehicle will be equipped with a CNG bi-fuel
          fueling system. Funding is available in the department's
          capital outlay budget and will be used by the newly
          established graffiti removal crew.  A total of two bids were
          received for a bi-fueled vehicle, while a total of three bids
          were received for a conventionally fueled vehicle. Delivery
          is anticipated within ninety days.

          Motion to approve.

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

      18. Award of contract to the LOW BIDDER, Lucent Technologies
          Inc., San Antonio, Texas, in the amount of $53,327.91, for
          providing all required materials and installation of a
          certified voice and data telecommunications cabling system at
          the new Public Library building.  The telecommunications
          cabling system will support voice and high speed data
          communications as well as a Community Antenna TV (CATV)
          distribution system and public address system.  Funding is
          available in the new Main Library Construction Project
          Account.  A total of three bids were received for this work.
          The system will be completed within sixty days.

          Motion to approve.

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

      19. Award of contract to the LOW BIDDER, Brance-Krachy Company,
          Inc., Houston, Texas, in the amount of $11,974.00, for the
          purchase of two, replacement motors with a gear reducers for
          the Utilities Department.  These will be installed on #3 and
          #4 flocculators at the Jefferson Street Water Treatment
          plant. Flocculators mix the chemicals and water during the
          second stage of the water treatment process.  Funding is
          available in the Utilities Department - Water Treatment,
          Capital Outlay Account. A total of two bids were received for
          this purchase.  The motors will be delivered within two
          weeks.

          Motion to approve.

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

      20. Award of annual supply contracts to the LOW BIDDER MEETING
          SPECIFICATIONS, U.S. Filter Corporation, Laredo, Texas, in
          the estimated amount of $138,648.33, for supplying water line
          repair clamps for the Utilities Department.  All items will
          be purchased on an as need basis. A total of two bids were
          received for this purchase. Funding is available in the
          Utilities Department - Water Division Account.  The contract
          pricing is approximately 5% more than the previous contract.

          Motion to approve.

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

      21. Award of contract to the SOLE SOURCE PROVIDER, New York
          Blower, Willbrock, Illinois, in the amount of $15,495.80, for
          the purchase of two, replacement fan blowers, for the
          Utilities Department.  These will be installed at the Zacate
          Creek Wastewater Treatment Plant for the removal of hydrogen
          sulfide from the primary clarifiers. These blowers create a
          vacuum which directs the toxic hydrogen sulfide gases to a
          carbon filtering system within the clarifiers.  Funding is
          available in the Utilities Department - Wastewater Treatment
          Capital Outlay Account. Delivery is expected within three
          weeks.  These blowers are available only from the original
          equipment manufacturer.

          Motion to approve.

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

      22. Award of a construction contract to the LOWEST BIDDER, Pete
          Gallegos Paving, Inc., Laredo, Texas, in the amount of
          $333,823.00, for the Southgate Pilot Channel Improvements to
          be placed over an existing earthen ditch located along the
          east side of Canada Avenue, approximately 2,200 linear feet,
          and approximately 12 feet wide, from Norton Street to Ireland
          Street, curving southwesterly through the drainage easement
          located along the east side of New York Street to Southgate
          Boulevard. A total of two bids were received for this work.
          Funding is available in the Drainage Improvements Southgate
          Pilot Channel Account. Construction time is 70 working days.

          Motion to approve.

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

      23. Award of a construction contract to the LOWEST BIDDER, Ramex
          Construction Company, Inc., Houston, Texas, in the amount of
          $103,995.00, for the Willow/Chacon Drainage Improvements.
          This project consists of the extension of an underground
          drainage system to alleviate erosion abutting private
          property at mid-block between Texas Avenue and U.S. Highway
          83 between Willow and Chacon Streets. A total of two bids
          were received for this work. Funding is available in the
          Drainage Improvements Willow/Chacon Drainage Improvements
          Account. Construction time is 45 working days.

          Motion to amend the awarding of the contract by including
          the authorization to transfer $46,000 form the Community
          Development Block Grant Demolition of Substandard Building in
          the 22nd Action Year to cover the total drainage amount.

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

          Motion to approve the contract as amended.

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

      24. Award of a construction contract to the LOWEST BIDDER MEETING
          SPECIFICATIONS, Pete Gallegos Paving, Inc., Laredo, Texas, in
          the amount of $313,682.32, for the City of Laredo and Laredo
          Independent School District (LISD) Sidewalk Program (13
          Schools) for Buenos Aires Elementary, Ochoa/Sanchez
          Elementary, J.C. Martin Elementary, D.D. Hachar Elementary,
          Kawas Elementary, Ligarde Elementary, Daiches Elementary,
          Zachary Elementary, Cigarroa Middle, Memorial Middle, Lamar
          Middle, Cigarroa High and Nixon High Schools.  The City of
          Laredo will pay 50% of the costs as will the Laredo
          Independent School District. A total of five bids were
          received for this work.  Funding is available in the Capital
          Improvement Fund School Sidewalks Account and in the
          Community Development Department.  Construction time is 90
          working days.

          Motion to approve.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          Cm. Alvarado withdrew his second.

          Paragon Builders, represented by John Charles, argued that
          Paragon was the lowest bidder.

          Rogelio Rivera, City Engineer, stated that where there is a
          conflict between words and numbers, that the words would
          govern the bid amounts.

          Motion to table for the next meeting to clarify the bid
          amount of Paragon Builders.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  4                  Against:  0              Abstain:  1
                                                            Cm. Perez

      25. Approval of change order no. 3, a net increase of $18,201.49,
          to the construction contract with Ramex Construction Company,
          Houston, Texas, for
          a) the installation of two (2) additional security cameras
             and various other miscellaneous items
          b) to delete the circulation desk screen, and
          c) a savings on the interior signage
          at the City of Laredo New Main Library. This change order
          will also add 87 calendar days to the contract consisting of
          21 calendar days for bad weather plus 66 calendar days for
          the additional work required for change order no. 3. The
          project is scheduled for completion by October 1997.
          Original contract amount was $5,641,000.00.  This change
          order will bring the total to $5,760,003.00.  Funding is
          available in the New Main Library Buildings Capital Outlay
          Account.

          Motion to approve.

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

      26. Awarding a professional consulting services contract for an
          amount not to exceed $126,720.00, to Carter and Burgess,
          Inc., Houston, Texas, to develop a Comprehensive Stormwater
          Management Ordinance(s) and Best Management Practices (BMP)
          guidance manual, as required by the City's National Pollutant
          Discharge Elimination System (NPDES) stormwater requirements.
          These ordinances and the BMP guidance manual will govern the
          criteria regarding special use permits for detention/
          retention ponds, and are the initiation of the Stormwater
          Master Planning Process.  A total of four firms responded to
          the City's request for proposals.  Funding is available in
          the Environmental Engineering Division.

          Motion to approve.

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


VIII.  CITY MANAGER'S REPORT

      27. Presentation regarding the status of the lease with the
          Laredo Children's Museum.

          Florencio Pea, City Manager, stated that there were six
          areas of concern with the lease agreement as presented by the
          attorney for the Children's Museum.  The concerns were:

          (1) The operational costs associated with the structure,
          apparently the representatives would like the city to pay the
          utilities, the ground maintenance, and the building
          maintenance.  These are items not in the budget and they will
          have an impact.

          (2) The right of first refusal.  The city attorney has some
          concerns about the proposed wording.

          (3) The non-payment of taxes.  Mr. Pea stated that the city
          cannot waive taxes, if it is required by state law to pay
          taxes then they have to pay them, but he is not sure what the
          state law says in reference to non-profit status.

          (4) There is a clause in the agreement that makes reference
          to sub-leasing.  The city should have complete control as to
          whether the property is to be sub-leased.

          (5) There is a question regarding metes and bounds
          description that is not available.  They cannot enter into a
          lease today, because there is no metes and bounds description
          of the property.  They will have to conduct a survey to
          parcel that out.

          (6) Since this property was bought with bond money which was
          intended for the purpose of constructing a library, they
          would have to conduct a research and determine whether or not
          a museum would be an eligible use under the intent of this
          bond issue.

          Ken Valls, attorney for the Children's Museum, stated that
          they may be satisfied with a 25 year lease with a 25 year
          option; they will provide the meets and bounds description to
          the City Attorney; the sub-leasing needs to be done in order
          to provide exhibit space for exhibitors from all over the
          country, any other type of sub-lease would have to be
          approved by the Council; ad valorem taxes are exempt for this
          agency; and that the maintenance of grounds is not an
          important issue and they will negotiate with staff.

          Motion to direct staff to proceed with a contract formulation
          and bring back to Council by May 19th.

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

      28. Amending the HOME Investment Partnerships Program Policy and
          Procedures Manual as it pertains to Downpayment Assistance
          Program. The following are the proposed changes:
          a) increase the loan amount of $2,500.00, up to a maximum of
             $3,000.00,
          b) eliminate the 50% match required from the applicant,
          c) decrease the 5% interest on the principal loan amount to
             0%, and
          d) define the deferred payment period to 3 years.  After the
          deferment period, the eligible borrower(s) will start making
          payments on the Downpayment Assistance Loan as per a
          predetermined schedule based on the loan amount.  There will
          not be any prepayment penalties. The repayment period may not
          exceed five years. A second Lien Deed of Trust with Vendor's
          Lien and Real Estate Lien Note will be recorded against the
          property being purchased.  The property should remain
          affordable for a period of five years. This program is
          Citywide and may be used towards the purchase of an existing
          or a newly constructed home. The proposed changes will allow
          the Citywide program to coincide with the recently approved
          Concord Hills Downpayment Assistance Program by providing
          qualifying applicants with assistance of up to $3,000.00.

          Chris Arthur, representing the Builders Association, asked
          council to wait on any recommendation until they have time to
          inform the community on how the various programs work and
          save the City money.

          Motion amending the HOME Investment Partnerships Program
          Policy and Procedures Manual as it pertains to Downpayment
          Assistance Program.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          The second was withdrawn.

          Motion to table.

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

          Mayor Ramirez returned to join the council, 8:10 p.m.
          He had left at 7:10 p.m.

      29. Presentation regarding the status of the City's National
          Pollutant Discharge Elimination System (NPDES) stormwater
          discharge requirements and acceptance of the permit issued by
          the U.S. Environmental Protection Agency (EPA) in compliance
          with 40 CFR 122 and 124.

          Raj Guntner, Environmental Engineer, made the presentation
          before the council.  A detail of the requirements is avail-
          able for review in the agenda book.

          Motion to accept a draft permit as issued by United States
          Environmental Protection Agency in compliance with 40 CFR 122
          and 124 and comply with the permit conditions.

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

      30. Presentation regarding the status of the detention pond
          ordinance. An ordinance will be introduced at a subsequent
          meeting which will provide for the concrete lining of the
          detention pond's embankment.

          Raj Guntner, Environmental Engineer, gave a report to the
          council stating that a draft of the proposed ordinance was
          included in the agenda book for their review and that this
          draft will be presented before Planning & Zoning Commission.

      31. Discussion and possible action regarding proposed partial
          settlement agreement in Cause No. C-95-00259-D2 styled
          Jacaman Investment Group LTD., et al. v. City of Laredo with
          possible executive session for consultation with City
          Attorney, as per Section 551.071 of the Texas Government
          Code.

          Motion to go into executive session under Section 551.071 of
          the Texas Government Code.

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

          Motion to instruct the City Manager and Legal Department to
          proceed with settlement.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0


  IX.  COMMUNICATIONS

       a. Recognizing Les Norton and Dennis Longoria for their
          exemplary service to the City of Laredo Fire Fighters' and
          Police Officers' Civil Service Commission. Their service to
          the City is 16 and 11 years respectively.

          Mayor Ramirez recognized Les Norton for his 18 years, as
          corrected by Mr. Norton, of exemplary service to the City of
          Laredo.

          Dennis Longoria was not present.

       b. Recognizing the Department of Public Works for their receipt
          of the Texas Clean Cities 2000 award.

          Mayor Ramirez recognized Raj Guntner from Environmental
          Engineering Department and Joe Guerra, Public Works Director
          for this award.

       c. City Manager Pea announced that there will be a visit by
          several officials from the State of Nuevo Leon on issues that
          relate to Solidarity Bridge at 6:30 p.m. at Colombia.  The
          following individuals will be present:

          Lic. Fernando Canales Clariond -
               candidate for Governor of Nuevo Leon
          Jesus Hinojosa - Mayor of Monterrey
          Lic. Aldalberto Nunez - Mayor of San Nicolas de los Garza
          Senator Mauricio Fernandez
          Senator Lic. Luis Santos de la Garza
          Lic. Consuelo Botello - Federal Representative
          Lic. Jorge Padilla - Ferderal Representative
          Lic. Jose Luis Coindreau
          Raul Monter
          Arq. Antonio Fuentes Flores - coordinator of the event

       d. Cm. Alvarado reported on the Laredo Delegation to the Summit
          attended in Washington and that a formal report will be
          presented at the next council meeting.

       e. Cm. Alvarado announced the Mothers Day Concert set for May
          8th from 6:30 p.m. to 11:00 p.m. at the Civic Center free of
          admission to the public.

       f. Cm. Bruni publicly congratulated El Manana Newspaper owners
          on their new office.

       Cw. Moreno returned to join the meeting at 8:35 p.m.  She had
       left at 7:10 p.m.


   X.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

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

       1. Recognizing the participation of City of Laredo employees in
          the 1996-1997 United Way Campaign.

          Mayor Ramirez recognized Mrs. Phyllis Colon for her work in
          the United Way Campaign who in turned presented the following
          awards to various city departments:

          The Silver Award to:  Police, Airport, Traffic, Bridge, Civic
          Center, Health, Public Works, and Finance.

          The Golden Award to:  Fire, Traffic, City Secretary, and City
          Manager.

          Mrs. Colon received the Volunteer of the Week Award and the
          Mucho Mass Award from the Board of Directors.

    B.  Requests by Councilmember Louis H. Bruni

       1. Status report on the Air Passenger Survey conducted by the
          City of Laredo's airport consultant Vesta Rae Associates,
          with possible action.

          Mr. Jose Flores, Airport Director, and Bill Bouldin,
          Marketing Director, made the presentation before the council.
          The survey confirms that an extraordinary number of Laredoans
          routinely travel to San Antonio to begin their air travel.
          Of every 15 air tickets purchased by Laredoans, 8 are bought
          here and 7 are bought in San Antonio.  The survey revealed
          that local air travel is predominantly business oriented, as
          opposed to pleasure oriented.  Both business and pleasure
          travelers listed ticket cost as the main reason they chose to
          fly from San Antonio.  Dallas and Houston were the principal
          destination of the survey's respondents, followed by Las
          Vegas, San Antonio, and Mexico City.

          A detail report is available for review in the agenda book.

       2. Staff presentation regarding a cost proposal for the
          inclusion of Ponderosa Street into a current paving program,
          with possible action.

          Rogelio Rivera, City Engineer, reported the following cost
          estimate:
                    Street Reconstruction  : $39,510.00
                    Street Overlay ........:  16,170.00
                    Concrete Valley Gutters:  12,800.00
                             Subtotal .....: $68,480.00
                    Testing/Contingencies  :   6,848.00
                    Engineering ...........:   6,848.00
                             Total ........: $82,176.00

          Mayor Ramirez suggested that Public Works continues the with
          the repairs until we can find monies to include it into a
          paving/reconstruction project.

       3. Staff presentation regarding a proposal to deal with the
          problem of vehicles accessing Casa Blanca Road from Clubview
          Drive.

          Mr. Luis Landin, Traffic Manager, stated that he had talked
          to Mr. Cliff Wilson, Webb County Road & Bridge Director, and
          that they had closed the road together with the assistance
          from Joe Guerra, Public Works Director, who placed cables to
          barricade the road.  He reported that Mr. Haynes would not
          participate in any manner.

    C.  Requests by Councilmember Alfonso I. Casso

       1. Discussion and possible action regarding the landfill and the
          possibility of producing electricity.

          Joe Guerra, Public Works Director, reported that the City of
          Laredo government buildings and property pay $4.5 million to
          CP&L per year on electricity payments while we receive about
          $2 million in franchise fees.  He added that there are 155
          plants in the U.S. while Japan has 42.  These plants burn
          everything.  The estimated cost of a waste to energy plant is
          about $60 million.  He concluded by giving Cm. Casso a
          brochure with additional information.

       2. Discussion and possible action regarding the planting of
          cypress trees on Meadow Street in front of both cemeteries.

          Cm. Casso suggested that the city considers planting a row of
          trees along Meadow and requested that staff comes back with
          costs.

          Mayor Ramirez requested for staff to provide a cost estimate
          for a wrought iron fence along Meadow.

       3. Discussion and possible action regarding the parking of
          tractor trailers in residential areas.

          Cm. Casso stated that he has received numerous complaints and
          that our ordinances are not being enforced and it's getting
          out of hand.

          Richard Perez, Assistant to the City Manager, stated that
          staff and Legal Department are in the process of developing a
          comprehensive ordinance and they will report to council by
          the May 19th meeting.

       4. Discussion and possible action regarding the collection of
          city taxes by the county.
          (Co-sponsored by Councilman Louis H. Bruni)

          Cm. Casso stated for the record that an EEOC complaint by
          Phyllis Colon was not filed against him nor Cm. Bruni, that
          the complaint had been filed against the City Manager only.

          Patricia Barrera, Webb County Tax Assessor/Collector, made a
          report to the council on the handling of city tax collections
          by her office.  She reported that an estimated cost of $1.08
          per parcel would be the charged to the city for those
          services.

          Cm. Casso wanted a report from staff on whether we can save
          money and how much by contracting with Ms. Barrera and a
          report from Mrs. Colon on whether she will need more staff.

       5. Discussion and possible action regarding the repaving of
          Malinche Street.

          Cm. Casso stated that there are two things which need to be
          done 1) on Malinche and Willow, Ramex Construction is
          destroying residents' front yards. 2) on Malinche Street he
          noticed that they are resurfacing certain areas, but when
          they get to Guatemozin they stop, the curbs are not complete.
          He wants the projects to be finished, he will provide staff
          with the names and addresses of the residents, and wants to
          see if it can be included in one of the paving projects.

          Staff will look at that the section of Malinche from
          Guatemozin to Chacon and will come back to council with cost
          estimates and a time table.

       6. Discussion and possible action regarding the proposed dam by
          Webb County.

          Cm. Casso stated that he placed this item on the agenda
          because the county has taken the lead and believes that the
          city should be involved and we should include other cities
          especially those upstream.  He would also like to invite Raul
          Sanchez from St. Mary's University School of Law due to his
          knowledge on this item.

          Mayor Ramirez told Cm. Casso that he would go to the county
          to take an official position.

    D.  Requests by Councilmember Joe A. Guerra

       1. Discussion and possible action concerning a presentation by
          Dr. Hector Farias regarding international trade.

          Motion to support the following two positions presented by
          Dr. Farias:

          I. Taxation of international trade services.
          The attempt to tax services of freight forwarders, customs
          brokers, transportation companies, warehousing, and
          distribution was narrowly averted in the House (HB 4).
          However, we remain concerned that this issue might be re-
          introduced in the Senate version of this legislation.  We are
          strongly opposed to the taxation of international trade
          services and are convinced that Laredo would be negatively
          impacted by any such levy.

          II. Elimination of Export Certifications.
          The House passed HB 4 with language that eliminates the
          ability of Mexican walk-in shoppers to obtain export
          certifications from customs brokers as a means to obtain a
          refund for the sales taxes they have paid on their purchases.
          Elimination of this exemption would severely damage our
          retail industry, since it would be tantamount to another peso
          devaluation (of 8.25% to be exact).

          We support the recommendations of the Coalition of Texas
          Customs Brokers as presented to State Comptroller John Sharp.
          We are concerned that the Senate and final versions of this
          legislation will eliminate this exemption to the detriment of
          Laredo's retail industry.

          Moved : Cm. Guerra
          Second: Cm. Bruni
          For:  5                       Against:  0         Abstain:  0
          Note:  Mayor Ramirez left at 7:10 and Mayor Protem Casso was
          chairing the meeting.

    E.  Requests by Councilmember Mario G. Alvarado

       1. Discussion and possible action requesting traffic department
          staff to review the traffic light signals change sequence
          from Del Mar Boulevard and Santa Maria up to Del Mar and
          Springfield in order to help improve the flow of traffic.
          (Co-sponsored by Joe A. Guerra)

          Luis Landin, Traffic Manager, reported that on April 20th the
          controller was down and replaced by 1:00 a.m. and was
          reprogrammed as before and is presently working fine.

       2. Discussion and possible action requesting traffic department
          staff to meet with Farias School Administrators to work on a
          temporary road block plan during the schools pickup and
          dropoff hours.

          Mr. Landin reported that he will meet with Farias School
          Administrators.

       3. Discussion and possible action requesting traffic department
          staff for street crossing lines for Farias Elementary School.

          Mr. Landin stated that he will work with them and is
          presently in the process of placing cross walks.

       4. Discussion and possible action requesting Public Works to
          setup a schedule for street sweeper maintenance along the
          Mines Road area.

          Mayor Ramirez stated that the maintenance responsibility of
          Mines Road belongs to the State.

          Florencio Pea, City Manager, stated that he will check with
          Villarreal from TxDOT on this matter and will report on any
          discussions with him.

       5. Report from Public Works on repair work scheduled for San
          Lorenzo Street at the 8300 block area.

          Joe Guerra, Public Works Director, stated that San Lorenzo
          does not have a black base.  He would have to dig it up and
          place 6 inches of black base.  He will provide a cost
          estimate for emergency repairs.

    F.  Requests by Councilmember Consuelo "Chelo" Montalvo

       1. Discussion and possible action to maintain branch library
          services at Bruni Plaza.

          Motion to table.

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


  XI.  PUBLIC HEARINGS

      33. Public hearing concerning the adoption of an ordinance
          setting the rates to be charged by El Metro for parking at
          the Laredo Transit Center, located at 1300 Farragut Street,
          Laredo, Texas, and for various miscellaneous fees related to
          contract parking as follows:
          a) daily parking rate shall be $1.50 per hour or portion
             thereof, subject to a daily maximum of $7.50.
          b) Contract parking rate shall be $75.00, per month. $40.00,
             shall be charged for the initial month of a contract if it
             begins on or after the 16th day of the month. Otherwise,
             no proportion of the monthly rate shall apply at either
             the beginning or end of a contract term.
          c) The following miscellaneous fees shall also apply:
             1) refundable key deposit: $10.00,
             2) replacement charge for damaged key: $10.00,
             3) replacement charge for lost key: $25.00.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance setting the rates to be charged by El Metro for
          parking at the Laredo Transit Center, located at 1300
          Farragut Street, Laredo, Texas, and for various miscellaneous
          fees related to contract parking as follows:
          a) daily parking rate shall be $1.50 per hour or portion
             thereof, subject to a daily maximum of $7.50.
          b) Contract parking rate shall be $75.00, per month. $40.00,
             shall be charged for the initial month of a contract if it
             begins on or after the 16th day of the month. Otherwise,
             no proportion of the monthly rate shall apply at either
             the beginning or end of a contract term.
          c) The following miscellaneous fees shall also apply:
             1) refundable key deposit: $10.00,
             2) replacement charge for damaged key: $10.00,
             3) replacement charge for lost key: $25.00.
           Providing for publication and a July 4, 1997, effective
           date.

          Motion to open the public hearing.

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

          Mr. Mark Conway and Mr. Mario Perez appeared before the
          council stating that they were representing downtown
          organizations.  They felt that the monthly rate is excessive
          and wanted council to make it more affordable to the downtown
          employees.

          Mayor Ramirez replied that he would like to meet with them
          along with Cw. Montalvo to discuss this issue.

          Motion to close the public hearing and introduce.

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

          Ordinance Introduction: City Council

      34. Public hearing regarding the adoption of the Los Dos Laredos
          Environmental Management Plan.  The environmental plan is a
          bi-national planning project developed jointly by staff in
          Laredo, Texas and Nuevo Laredo, Tamaulipas.

          97-R-049  Resolution authorizing the adoption of Los Dos
                    Laredos Environmental Management Plan, a Bi-
                    National planning project.

          Motion to open the public hearing.

          Moved : Cw. Moreno
          Second: Cm. Guerra
          For:  7                  Against:  0              Abstain: 0

          Mary Mahoney, from the Planning Department, made the
          presentation before the council.

          There was no public input.

          Motion to adopt resolution 97-R-049.

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

          Motion to close the public hearing.

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


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

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

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

      35. Award of contract to the LOW BIDDER, Leyendecker Lumber,
          Laredo, Texas, in the amount of $23,928.00, for the purchase
          of approximately 1,200 cases of floor tile.  Orders will be
          placed on a monthly basis (100 cases per month) and installed
          by Laredo Municipal Housing Corporation staff at the Jose A.
          Flores and Tomas Flores Apartment complexes.  Funding is
          available in the LMHC's Capital Outlay Account. A total of
          six bids were received for this purchase. The contract is
          approximately 6% less than the previous contract price.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                  Against:  0              Abstain: 0

          Motion to adjourn as The Laredo Municipal Housing and convene
          as Laredo Mass Transit Board.

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


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

      36. Award of contracts to the LOW BIDDER Autophone of Laredo,
          Inc., Laredo, Texas, in the amount of $20,160.00, for the
          purchase and installation of fifteen mobile radios for the
          new transit buses.

          Motion to approve.

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

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

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


 XIV.  ADJOURNMENT

          Motion to adjourn.

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

          Adjournment time: 9:55 p.m.

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 24
ARE TRUE COMPLETE AND CORRECT PROCEEDING OF THE REGULAR CITY COUNCIL
MEETING HELD ON THE 5TH DAY OF MAY, 1997.  A CERTIFIED COPY IS ON FILE
AT THE CITY SECRETARY'S OFFICE.


                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY