CITY OF LAREDO
                          CITY COUNCIL MEETING

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

                                 MINUTES


       M-97-R-24                                      JULY 21, 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
       CONSUELO MONTALVO,           "     , DISTRICT VIII
       GUSTAVO GUEVARA, JR., CITY SECRETARY
       FLORENCIO PENA,       CITY MANAGER
       JAIME L. FLORES,      CITY ATTORNEY


  IV.  APPROVAL OF MINUTES

       2.  City Council Meeting of June 2, 1997
           City Council Meeting of June 16, 1997

           Motion to approve.

           Moved : Cm. Perez
           Second: Cw. Moreno
           For:  7                      Against:  0         Abstain:  0
       Motion to waive the rules of order and move item X.(A), #60,
       C(1)(2), #47, G(1), H(1), F(3) and 43.A(1).

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

   V.  INTRODUCTORY ORDINANCES

       3.  Closing as a public easement that section of South Jarvis
           Avenue between Cleveland and Blaine Streets, also known as
           the 700 block of South Jarvis Avenue, and providing for
           publication and effective date.

           Ordinance Introduction: City Council

       4.  Closing as a public easement a 3,502.12 square foot tract of
           land more or less out of the northeast quarter of the 1800
           block of Palo Blanco Street between Tapeyste Avenue and the
           east right-of-way line of Highway 83, situated in the
           Eastern Division, City of Laredo, Webb County, Texas, being
           more particularly described in "Exhibit A", and providing
           for publication and effective date.

           Ordinance Introduction: City Council

       5.  Amending Ordinance No. 97-O-108, approved on May 27, 1997,
           to correct the block number of a property erroneously
           identified as Lot 4-A, Block 1980, Eastern Division to
           hereby correct to read Lot 4-A, Block 1918, Eastern
           Division, providing for publication and effective date.

           Ordinance Introduction: City Council

       6.  Amending Ordinance No. 96-O-075, thereby correcting the
           named lessee from "International Customs Services, Inc.", to
           "Rafael Quiroz, Jr., D/B/A International Customs Services"
           thereby clearing the City Manager's authority to have signed
           the lease dated June 3, 1996, with Rafael Quiroz, Jr., D/B/A
           International Customs Services

           Ordinance Introduction: City Council

       7.  Authorizing the City Manager to execute a subordination,
           Non-disturbance, and Attornment Agreement between the City
           of Laredo and Rafael Quiroz, Jr., D/B/A International
           Customs Services subordinating the lease agreement dated
           June 3, 1996, between the City of Laredo and Rafael Quiroz,
           Jr., D/B/A International Customs Services, authorized by
           Ordinance No. 96-O-075, which ordinance was amended by
           Ordinance No.xx, at the Laredo International Airport.

           Ordinance Introduction: City Council

       8.  Authorizing the City Manager to execute all necessary
           documents to effectively convey, to the Laredo National
           Bank, title to the "Surface Only" of a 0.44900 of an acre
           tract of land, more or less, being a trangular tract and
           situated immediately East of Lot 1A, Block 1173, Eastern
           Division, City of Laredo, Webb County, Texas; said tract
           being generally described below and more particularly
           described by metes and bounds. Said conveyance being in
           exchange for the "Surface Only" of lots one (1) and two (2),
           Block 1190 and the "Surface Only" of a tract of land
           containing 0.1181 of an acre (5,144 square feet) all in the
           Eastern Division, City of Laredo, Webb County, Texas. Said
           tracts being generally described below and more particularly
           described by metes and bounds; and providing for an
           effective date.
           (Note: Action must first be initiated on item #22, prior to
           the initiation of any action on this item.)

           Ordinance Introduction: City Council


  VI.  FINAL READINGS

       Motion to waive the final reading of ordinances #97-O-151,
       #97-O-152, #97-O-153, #97-O-154, #97-O-155, #97-O-156,
       #97-O-157, #97-O-158, #97-O-159, and #97-O-160.

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

       9. 97-O-151  Ordinance approving an assignment from Aero Center,
                    Inc. to the Laredo National Bank of that airport
                    lease agreement for hanger #142, buildings #144,
                    #147, and #148 approved by Ordinance No. 94-O-001
                    dated January 3, 1994 and authorizing the City
                    Manager to execute said Consent of Assignment.
                    (City Council)

                    Motion to approve Ordinance #97-O-151.

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

      10. 97-O-152  Ordinance approving an assignment from Aero Center,
                    Inc. to the International Bank of Commerce and
                    Sanchez-O'Brien Oil and Gas Corporation, a joint
                    venture, of that lease agreement for an approximate
                    1.001 acre tract of improved land approved by
                    Ordinance No. 95-O-154 dated August 7, 1995, and
                    authorizing the City Manager to execute said
                    Consent of Assignment. (City Council)

                    Motion to approve Ordinance #97-O-152.

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

      11. 97-O-153  Ordinance authorizing the City of Laredo City
                    council to accept the assignment of a leased
                    contract issued to Panorama Broadcasting for the
                    use of an area of land for the construction of a
                    television station tower and authorizing the City
                    Manager to take such steps as are necessary to
                    execute the document to finalize the transaction.
                    (City Council)

                    Motion to approve Ordinance #97-O-153.

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

      12. 97-O-154  Ordinance Authorizing the City Manager to execute
                    Quitclaim Deeds, to the following seven grantors,
                    the City of Laredo's interest to the Mineral Rights
                    acquired through the conveyance of seven tracts of
                    additional right-of-way for the Mines Road Widening
                    Project. Said seven tracts being Parcel Nos. 29,
                    42, 43, 53, 54, 55, and 57; being situated in Webb
                    County, Texas, and providing for an effective date.
                    PARCEL 29 (Santos Costilla and San Juanita
                    Costilla, original grantors as per warranty deed to
                    the City of Laredo, recorded in volume 48, Pages
                    023-024, real property records, Webb County,
                    Texas). A 1.1006 acre tract being out of Porcion
                    10, Tomas Sanchez, original grantee, Abstract 280,
                    also being out of a 10.0 acre tract of land (Tract
                    2) unrecorded 172.90 acre tract subdivision, Webb
                    County, Texas as conveyed by deed from Jack E.
                    Blanco to Santos Costilla and San Juanita Costilla
                    as recorded in volume 13, pages 747 and 748, real
                    property records, Webb County, Texas.
                    PARCEL 42 (Venola Sanchez, Original Grantor, as per
                    warranty deed to the City of Laredo, recorded in
                    volume 23, pages 233-234, real property records
                    Webb County, Texas) - A 1.0080 acre tract being out
                    of Porcion 10, Tomas Sanchez, Original Grantee,
                    Abstract 280, also being out of a 4.4292 acre tract
                    (Tract 1) as conveyed by deed from Rodolfo Salinas,
                    Jr., to Venola Sanchez as recorded in volume 517,
                    pages 259-265, deed records, Webb County, Texas.
                    PARCEL 43 (Ernestina B. Wolter, Original Grantor as
                    per warranty deed to the City of Laredo, recorded
                    in volume 21, pages 771-772, real property records,
                    Webb County, Texas) - A 1.5225 acre tract being out
                    of Porcion 10, Tomas Sanchez, Original Grantee,
                    Abstract 280, also being out of a 5.3614 acre tract
                    (Tract 14) as conveyed by deed from Fernando Babiak
                    and wife, Elva Rosa Babiak to Ernestina B.  Wolter
                    as recorded in volume 572, Pages 97-101, deed
                    records, Webb County, Texas.
                    PARCEL 53 (Elias Herrera and wife, Olga F. Herrera,
                    Original Grantors as per warranty deed to the City
                    of Laredo, recorded in volume 160, pages 122-123,
                    real property records, Webb County, Texas). A
                    1.3167 acre tract being out of Porcion 10, Tomas
                    Sanchez, Original Grantee, Abstract 280, also being
                    out of a 6.4119 acre tract (Tract 30) as conveyed
                    by deed from Rodolfo Salinas, Jr., to Elias Herrera
                    and Olga P. Herrera as recorded in volume 517,
                    pages 410-417, deed records, Webb County, Texas.
                    PARCEL 54 (C.C.M. Financial Inc., Original Grantor
                    as per warranty deed to the City of Laredo,
                    recorded in volume 73, page 881, real property
                    records, Webb County, Texas). An 1.3186 acre tract
                    being out of Porcion 10, Tomas Sanchez, Original
                    Grantee, Abstract 280, also being out of a 6.6788
                    acre tract (Tract 31) as conveyed by deed from
                    Edward M.  Pina, a single man to Carlos Nelli
                    Marsicano, et al, as recorded in volume 1341, pages
                    5-8, deed records of Webb County, Texas.
                    PARCEL 55 (Agustin Meza, Jr., and wife, Vilma Meza,
                    Original Grantors as per warranty deed to the City
                    of Laredo, recorded in volume 22, page 175, real
                    property records, Webb County, Texas).  A 1.3186
                    acre tract being out of Porcion 10, Tomas Sanchez,
                    Original Grantee, Abstract 2280, also being out of
                    a 7.2909 acre tract (Tract 32) as conveyed by deed
                    from Rodolfo Salinas, Jr. to Mr. Agustin Meza Jr.,
                    and Vilma S. Meza as recorded in volume 517, Pages
                    426-433, deed records, Webb County, Texas.

                    PARCEL 57 (Carlos Casiano, Jr., David Casiano,
                    Ramon Casiano, Demetrios Casiano, Tomas Casiano,
                    Daniel Casiano, Raquel Casiano Elliott, Guadalupe
                    Casiano Calvitt, Reynaldo Mireles and Manuel
                    Mireles, individually, and as independent executor,
                    Original Grantors as per warranty deed recorded i
                    Volume 100, Page 424, Real Property Records, Webb
                    County, Texas) -A2.8669 of an acre tract being out
                    of Porcion 10, Tomas Sanchez, Original Grantee,
                    Abstract 280, also being out of a 5.1272 acre tract
                    (Tract 69) as conveyed by deed from Rodolfo
                    Salinas, Jr., to Carlos Casiano and wife, Julia
                    Casiano, as recorded in volume 589, pages 7-3-605,
                    deed records, Webb County, Texas. (City Council)

                    Motion to approve Ordinance #97-O-154.

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

      13. 97-O-155  Ordinance authorizing the City Manager to execute
                    all necessary documents to revert a tract of land
                    containing 20,380.31 square feet, more or less, out
                    of the Mines Road (FM 1472) R.O.W. to its original
                    owner, but retaining it as a Drainage & Utility
                    Easement. Said tract of land being out of a 5.9755
                    acre tract of land situated in parts of Porcion
                    Nos.  17 and 18, Webb County, Texas, and being
                    generally described below and more particularly
                    described by metes and bounds and providing for an
                    effective date. (City Council)

                    Motion to approve Ordinance #97-O-155.

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


      14. 97-O-156  Ordinance amending Ordinance No. 95-O-299 by
                    changing Exhibit A; thereby authorizing the City
                    Manager to execute database access agreements with
                    any requestor of online access to inspect city
                    property tax records database via computer modem;
                    contract term to change so all will end on
                    September 30, 2002 and the annual maintenance,
                    processing, programming, and data manipulation fee
                    will be eliminated; a one time equipment fee is
                    required for the cost of the equipment; providing
                    for an effective date. (City Council)

                    Motion to approve Ordinance #97-O-156.

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

      15. 97-O-157  Ordinance authorizing the City Manager to execute a
                    ground lease with Alderete Communications, Inc., a
                    Texas Corporation, for the erection, maintenance,
                    and operation of a skeletal steel guyed
                    communications tower and associated equipment
                    building located at the Jefferson Street Water
                    Complex.
                    1. Lease term will be fifteen (15) years commencing
                       July 22, 1997 and ending August 22, 2012 (Date
                       will be determined after second reading of this
                       ordinance).
                    2. Rent will be payable in advance; first year's
                       rent is $8,676.00, and adjusted annually
                       according to changes in the consumer price
                       index.  (City Council)

                    Motion to approve Ordinance #97-O-157.

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

      16. 97-O-158  Ordinance approving amendment to the budget in the
                    amount of $9,500.00, for the Chronic Disease
                    Prevention Program, Breast and Cervical Cancer
                    Control Project (BCCCP), of the City of Laredo
                    Health Department and extension of contract term
                    period from June 30, 1997, through August 31, 1997,
                    providing for publication and effective date.
                    (City Council)

                    Motion to approve Ordinance #97-O-158.

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

      17. 97-O-159  Ordinance approving a contract with the University
                    of Texas Health Science Center at San Antonio and
                    budget in the amount of $5,250.00, for the
                    Education and Training Program of the City of
                    Laredo Health Department for the period beginning
                    February 1, 1997, through September 28, 1997,
                    providing for publication and effective date.
                    (City Council)

                    Motion to approve Ordinance #97-O-159.

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

      18. 97-O-160  Ordinance approving a contract with the Texas
                    Natural Resource and Conservation (TNRCC) and
                    budget in the amount of $25,000.00, to continue the
                    operation of a continuous air monitoring station
                    (CAMS) by the City of Laredo Health Department for
                    the period beginning September 1, 1997, through
                    August 31, 1998, providing for publication and
                    effective date. (City Council)

                    Motion to approve Ordinance #97-O-160.

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

 VII.  RESOLUTIONS

      19. 97-R-076  Re-appointing and appointing the following nominees
                    of Mayor Saul N. Ramirez, Jr., to the Historic
                    District/Landmark Board:
                    Position #1 Appoint Robert Cantu
                    Position #2 Re-Appoint Elia Pruneda
                    Position #3 Re-Appoint Lawrence Friedman
                    Position #4 Appoint Diana Sanchez Schultz

                    Motion to approve.

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

      20. 97-R-077  Authorizing the City Manager to enter into an
                    agreement with the Texas Municipal League (TML) to
                    participate in TML's Group Benefits Risk Pool
                    Retiree Medical Plan and to provide for an
                    effective date of October 1, 1997.

                    Motion to approve Resolution #97-R-077.

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

      21. 97-R-078  Identifying and granting retiree benefits to
                    employees who retired between January 1, 1987,
                    through December 31, 1995; and providing for an
                    effective date of October 1, 1997.

                    Motion to approve Resolution #97-R-078.

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


VIII.  MOTIONS

      22. Authorizing the competitive bid award to the Laredo National
          Bank for the sale to the City of Laredo of the "Surface Only"
          of a tract of land generally described as 0.44900 of an acre,
          more or less and being a triangular tract of land situated
          immediately east of Lot 1A, Block 1173, Eastern Division, as
          further described by metes and bounds, in exchange for the
          "Surface Only" of Lots 1 (one), and 2 (two), Block 1190, and
          the "Surface Only" of a tract of land containing 0.1181 of an
          acre (5,144 square feet) all in the Eastern Division of the
          City of Laredo, being more particularly described by metes
          and bounds.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0
      23. Approval of bid specifications and authorization to advertise
          for bids for the purchase of two lift station pumps. The
          pumps are required to restore pumping capacity to the
          McPherson Lift Station to increase the production of effluent
          for reuse at the North Laredo Plant. The project will be
          funded by transferring reserve funds to a new project called
          "McPherson Lift Station" from the 1994 wastewater bond.

          Motion to approve.

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

      24. Approval of bid specifications and authorizing the City
          Manager to advertise for bids for the following:
          a) Portrait of Mr. Luciano Guajardo for the Historical
             Collection;
          b) signage for book stacks and offices;
          c) display system for the multi-purpose room;
          d) archival digital scanning equipment;
          e) video & CD-ROM servers; and a
          f) photo ID machine.

          Motion to approve.

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

      25. Refund of property taxes in various amounts to the following
          company:
          a. Taco Bell/Austaco, Inc., in the amount of $3,210.17, as a
             result of a double assessment.

          Motion to approve.

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

      26. Authorizing the City Manager to submit a grant application
          and execute applicable documents to Central Power and Light
          Company in the amount of $100,000.00, to sponsor the Computer
          Lab for GED and ESL instruction in the New Main Library.

          Motion to approve.

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

      27. Motion to authorize submittal of a Federal Transit
          Administration (FTA) Section 5307 grant for $2,407,189.00,
          operating assistance and $1,376,000.00, capital/planning
          assistance for the El Metro Transit System. The funds
          represent estimated FY 1998 allocations of FTA funds.

          Motion to approve.

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

      28. Motion to authorize a $2,912,500.00, ($2,330,000.00 Federal
          Share), amendment to Project TX-90-X406 (Federal Transit
          Administration Section 5307) to provide funds for the
          purchase of eight buses, five vans, three support vehicles
          and maintenance equipment for the El Metro Transit System.

          Motion to approve.

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

      29. Motion to authorize submittal of a grant in the amount of
          $1,320,457.00, to the Texas Department of Transportation for
          the State Urbanized Transportation Fund for the 1998-99
          biennium. The funds requested will be used to support
          operating expenses at the El Metro Transit System during the
          1998 fiscal year.

          Motion to approve.

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

      30. To adopt three additional Retiree Medical Benefit Plans that
          will allow retirees under age 65 to purchase Medical Benefits
          at reduced rates and to provide for an effective date of
          October 1, 1997.

          Motion to approve.

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

      31. Award of a thirty-six month rental contract in the estimated
          amount of $58,824.00, to the LOW BIDDER, Ozped, Laredo,
          Texas, for providing eleven copiers for various City
          Departments. This contract is being awarded to the lowest
          bidder based on the lowest cost per copy cost. The per copy
          cost includes the use of the copier, a maintenance contract,
          and all consumable supplies (toner, developers) during the
          three year period. The contract pricing is approximately 5%
          less than the previous contract. A total of seven bids were
          received. Funding is available in the various department's
          contractual services - rental of equipment line item.

          Motion to approve.

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

      32. Award of supply contracts to the LOW BIDDERS, DPC Industries,
          Inc., Corpus Christi, Texas ($136,200.00), Bay Chemical and
          Supply, Odem, Texas ($47,200.00), Van Waters & Rodgers,
          Corpus Christi, Texas ($42,000.00), Polydnye, Inc.,
          Parsippany, NJ ($41,080.00), Calgon Industries, Pittsburgh,
          PA ($23,496.00), Environmental Chemical, Alamo, Texas
          $20,400.00), La Roche Industries, Waxahachie, Texas
          ($10,920.00), Phoenix Distribution Service, Houston, Texas
          ($9,550.00), PENNCO, Belville, Texas ($6,250.00), Acetylene
          Oxygen Co., Alice, Texas ($4,980.00) and APG Lime Company,
          New Braunfels, Texas ($4,886.40), for the purchase of
          chemicals for the Utilities Department.
          There is a tie bid from Van Waters & Rodgers, Corpus Christi,
          Texas and Kenwater North American, Antioch, California, for
          the purchase of ferric sulfate. The contract vendor will be
          determined by choosing lots. A total of twenty-one bids were
          received. Funding is available in the Utilities Department
          line items: Water Treatment Division-Chemicals and Wastewater
          Treatment Division-Chemicals.

          Cw. Moreno drew lots for the tie bid with the winner being
          Kenwater North American for the purchase of ferric sulfate.

          Motion to approve.

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

      33. Award of five year coin telephone service contract to AT&T,
          Dallas, Texas. The City requested proposals from vendors
          interested in providing coin operated telephone service,
          including long distance service, on City property, in City
          facilities, and on City right of way. This includes all coin
          telephones placed at current and future locations during the
          term of the contract. AT&T provided the most responsive
          proposal based on revenue to the City, vendor qualifications,
          vendor capability, and general responsiveness to the City's
          Request for Proposal (RFP). AT&T has contracted Southwestern
          Bell to provide the telephone equipment and coin and intra-
          lata, long distance commissions. Based on the commission
          structure proposed, the City anticipates yearly revenue of
          approximately $38,000.00. This represents a 73% increase in
          projected revenues. The Telecommunications Commission
          recommends approval of this contract.

          Motion to approve.

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

      34. Acceptance of the Pace Street Drainage Extension and the
          Ligarde/Barrios Drainage Project and approval of final
          payment in the amount of $88,991.00, to Ramex Construction
          Company, Inc., Houston, Texas.  Funding is available in the
          Drainage Fund - Pace Street and Ligarde/Barrios Drainage
          Project.  Contract was completed within the contract time of
          131 calendar days at the original contract amount of
          $152,315.00.

          Motion to table.

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

      35. Approval to select: (1) Porras Engineering Company, Laredo,
          Texas, to provide consulting engineering services to include
          surveys, design, preparation of plans and specifications with
          cost estimates, for a 12 inch diameter Wastewater Trunk Line
          (approximately 3500 linear feet) to serve the Santo Nino and
          Las Americas areas which will provide relief to a 10 inch
          line on Santa Clara; (2) Foster Engineering Company, Laredo,
          Texas, to provide consulting engineering services to include
          surveys, design, preparation of plans and specifications with
          cost estimates for the relocation of utilities and/or
          adjustments in conjunction with the Texas Department of
          Transportation's (TxDOT) proposed widening of U.S. Highway 59
          between San Dario and Ejido. A total of five firms responded
          to the City's request for proposals.

          Motion to approve.

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

      36. Award of an engineering contract to WSBC Civil Engineers,
          Laredo, Texas, for an amount not to exceed $17,270.00, to
          conduct a feasibility study and provide preliminary design
          for a 16 Inch Water Line along U.S. Highway 359 to service
          the proposed new Fire Training Facility, and the anticipation
          of the water services to the colonias located on State
          Highway 359. The feasibility study is necessary to determine
          and recommend the water line's designated route. Funding is
          available in Waterworks System Fund. A total of ten firms
          responded to the City's request for proposals on this
          project. Contract time is 90 days.

          Motion to approve.

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

      37. Award of an Architectural/Engineering (A/E) Contract to
          Design Group International, Laredo, Texas, for an amount not
          to exceed $23,924.00, for the design and preparation of plans
          and specifications for Roof Repairs at the Center for the
          Arts Building Project. Funding is available in General Fund
          Building Rehabilitation Account. A total of two firms
          responded to the City's request for proposals. Contract time
          is 60 days.

          Motion to approve.

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

      38. Award of an Architectural/Engineering (A/E) Contract to
          Design Group International, Laredo, Texas, for an amount not
          to exceed $13,328.00, to provide surveys, design and the
          preparation of plans and specifications for the Market Street
          Tennis Courts Improvements.  Funding is available in
          Community Development - Market Street Courts Account. A total
          of thirteen firms responded to the City's request for
          proposals.  Contract time is 60 days.

          Motion to approve.

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

      39. Approval of a change order no. 2, an increase of $357.60, for
          balance of quantities actually constructed in place,
          acceptance of the Sidewalks, Storm Drainage, and Curb and
          Gutter Improvements on Calton Road, Maher Avenue and Thomas
          Avenue (3 streets - approximately 1,700 L.F.) around the New
          Laredo Police Station Project, and approval of final payment
          in the amount of $30,352.80, to Ramex Construction Company,
          Houston, Texas. Original contract amount was for $44,265.00.
          Final construction contract amount is $50,861.80.  Funding is
          available in the Capital Improvement Fund. Contract was
          completed within the allotted contract time.

          Motion to approve as amended with a correction in the final
          payment amount of $30,852.80.

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

  IX.  CITY MANAGER'S REPORT

      40. Submission of the Fiscal Year 1997-1998 Annual Budget as per
          Article VI, Section 6.02, Submission of Budget of the Charter
          of the City of Laredo which states that "sixty (60) days
          before the end of the fiscal year, or any time before that,
          the City Manager shall present to the Council, in an open
          public meeting, after proper public notice, and having been
          placed on the Council meeting agenda, a budget for the
          ensuing fiscal year with an accompanying message."

          Florencio Pena, City Manager, made the formal presentation of
          the City Budget to the Council as per Article VI, Section

          6.02 of the City Charter.   He added that Town Hall meetings
          will be scheduled from August 8th thru August 10th.

      41. Presentation by the Administrative Services Department
          regarding the Health Insurance Portability and Accountability
          Act of 1996 (HIPAA), with possible action.

          Dan Migura, Administrative Services Director, stated that
          representatives from TML were present and prepared to do a 15
          minute presentation.  He gave an overview of HIPAA which is
          Health Insurance Portability and Accountability Act signed
          into law in August 19, 1997 and the intent of the law is to
          make health coverage available, portable, and guaranteed
          renewable for individuals.  It affects the city in the sense
          that we as the city have to make a decision to either opt in
          or opt out prior to October 1st which is the beginning of the
          plan year and because we are non-federal government plan our
          health benefit program falls under those guidelines and we
          have the ability to opt out.  If you are a private insurer
          you don't have that same provision.  They want to come back
          to council with a proposal to opt out and they just basically
          want to give council an opportunity to be informed.

          Cw. Moreno added that through the committee they spent two
          hours with many of these issues.  It is the recommendation of
          the committee to opt out and what that does is that it
          reduces our liability, when we opt out it does not mean that
          we wouldn't necessary not provide any of the options that are
          provided here.  It simply says that we opt out of the
          liability that goes with them, they will take each
          individually and decide to what extent they would want to
          cover those areas.  In some cases for example, under the area
          of pre-existing conditions, what they now offer is better
          than what is being suggested here so when they opt out it is
          not that we will not be covering pre-existing conditions, we
          cover pre-existing conditions at a better level than what is
          being recommended here.

          Motion to accept the committees recommendation, which is to
          opt out of the HIPAA regulations, that staff comes back with
          the proposal to opt out, and that staff keeps Council
          informed in any areas as to how they stay up with that.

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


      42. Request for confirmation of Mr. Keith Selman for appointment
          to the position of Planning Director with possible Executive
          Session pursuant to section 551.074 of the Texas Government
          Code to deliberate the appointment.

          Motion to confirming the appointment of Keith Selman as the
          Director of the Planning Department.

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

   X.  COMMUNICATIONS

       a. Proclaiming the month of August 1997, as "Picture a Prayer"
          month.

          Mayor Ramirez publicly read the proclamation and presented it
          to the youth group present.

       b. Cm. Bruni stated he sent a letter to Honorable Judith
          Zaffirini requesting some guidance on a grant application for
          funding from the Alternatives Fuel Council and he received
          an answer from Carole Rylander, Commissioner of the Texas
          Railroad Commission.  The letter updated on the Alternative
          Fuel Council Grant which was awarded on July 7th.  It said
          the council awarded the City of Laredo $35,000.00 to help
          fund the conversion of 24 city vehicles to compressed natural
          gas.

       c. Cm. Perez announced the Town Hall Meeting for District I
          tomorrow at 6:30 at the Cigarrroa Recreational Center.

          Cm. Valdez announced the Town Hall Meeting for District V
          at 6:30 at the Northeast Recreation Center.

          Mayor Ramirez announced the rest of the Town Hall Meetings
          for Districts VI, VII, VIII, III, II and IV.

  XI.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

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

       1. Congratulating the Olympia Track Team on qualifying for the
          National Junior Olympics to be held in North Carolina, and
          requesting any assistance that the City may provide to
          facilitate their trip.

          Mayor Ramirez congratulated the Olympia Track Team for
          qualifying for the National Junior Olympics.

          Alex De Luna, Coach of the Olympia Track Team, stated that of
          the 29 locals kids who qualified for the meet, 5 qualified
          for the National Junior Olympics to be held in North
          Carolina.  He presented the five youths as follows:

          Angeles Pantoja from Cigarroa High School, Allen Myers, Jaime
          Valderas from United High, Bobby Most from United High,
          Andy Vera from Martin High School and Joe Rubio, III from
          Gutierrez Elementary.

          Motion to authorize the Mayor to provide funding assistance
          to the group for the trip.

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

    B.  Requests by Mayor Pro Tem Jose R. Perez, Jr.

       1. Directing staff to research the use of CDBG Section 108 Loan
          monies for use in Capital Improvements.

          Cindy Collazo, CD Director, summarized the program, outlined
          the regulations and the use of eligible activities under
          Section 108 Loan monies.

          The program consists of Level I which is when the city
          borrows federal funds and Level II which city borrows for non
          profit when they want to do Community Development activities.
          It is up to the discretion of the city to workout the terms
          of the loan, it could be either equal to, higher, or lower
          than the cost of the funds.

          The eligible activities include Economic Development
          activities under CDBG, acquisition of real property,
          rehab for publicly owned real property, housing rehab
          eligible under CDBG, construction, reconstruction, or
          installation of public facilities (including street,
          sidewalk, and other site improvements); related relocation,
          clearance and site improvements, payment of interest on the
          guaranteed loan and issuance cost of public offerings; debt
          service reserves, public works and site improvements in
          colonias; and in limited circumstances, housing construction
          as part of community economic development, Housing
          Development Grant, Nehemiah Housing Opportunity Grant
          Programs.

          The rules apply as for CDBG you have to meet one of the
          national objectives which is to benefit low-and moderate-
          income persons or aid in the elimination or prevention of
          slums and blighted, or meet urgent needs of the community.

          The maximum commitment amount is again, five times your grant
          amount which basically amounts to $20 million.

          What is the security that HUD is requesting?  They are asking
          to pledge the current and future CDBG programs, HUD does not
          rely solely on CDBG funds to repay the loan.  Additionally
          security equals to about 1.25 coverage is also requested so
          that at least HUD feels at confort level with the amount
          pledged.  Some forms of pledging include parking revenues,
          lease revenues, pledge of tolls, general obligation, real
          estate property, and anything of value that HUD will review.

          The maximum repayment period for a Section 108 loan is 20
          years, there are different options for repayment.  The
          community can add a debt service to the loan amount,
          structure interest payments for a reasonable amount of time,
          create balloon payments.

          Interest rates charged on interim borrowing is priced at the
          3 month London Interbank Offered (LIBO) rate plus 20 basis
          points.  As of today it was 5.75 plus 20 basis points.  The
          permanent financing is based on treasury yield with similar
          maturity plus additional basis point spread.

          The application is going to be submitted at any time, there
          is no particular window for that.  The review period
          generally takes from 90-120 days (120 being the maximum).  It
          is first submitted to the HUD-San Antonio Office where they
          review it on eligibility and completeness after that it is
          forwarded to HUD-Washington to determine any type of
          additional security.  Once there is approval, then we work
          with the San Antonio Office, a public hearing is required,
          passage of a resolution is required authorizing the City
          Manager to submit the application, as well as executing the
          documents.

       2. Status report regarding the
          a) School Sidewalk Program
          b) the CDBG Sidewalk Program
          to include completion schedules.

          Rogelio Rivera, City Engineer, stated this project covers 13
          schools, 11 are CD and two are non CD.  They have completed
          four schools - Buenos Aires, Ochoa Sanchez, Memorial Middle
          and Nixon High, this report was as of last week, they are
          about 25-30% complete, they have four months to compete them,
          they are on schedule are for completion on October.

          Cindy Collazo, CD Director, stated that on the Neighborhood
          CD Program they received all the input from the council as
          far as streets were concern, they went on RFPs in June, staff
          worked with Mr. G.G. Salinas Engineer because they were
          authorized to negotiate contract which they need to bring
          back in August, however upon review by Mr. Salinas it was
          determined that the estimate was a lot higher because many of
          the sidewalks required retaining walls and driveways, and
          therefore staff is right now in the process of preparing and
          scaling down.  They will be coming back to council because it
          will probably need a reduction in the number of sidewalks to
          be down to about 11 or 12.  On August 4th they will bring
          back the item to go ahead and contract with Mr. Salinas
          because at this point it is important to keep in mind that
          any of the engineering cost comes from the same pot of money.
          As far as the time line, August to October for design,
          November accepting plans and authorization to advertise for
          bids, December award for the construction contract, January
          to April construction time and acceptance of the project.

    C.  Requests by Councilmember Louis H. Bruni

       1. Status report on the City of Laredo Drug Testing Policy with
          possible action.

          Dan Migura, Administrative Services Director, stated that in
          April of 1995 they adopted a drug and alcohol testing program
          that met with the mandates that deal to the CDL Program and
          thus they have the ability to do random testing as well as
          pre-employment post accident and reasonable suspicion with
          our drivers of equipment that is over 26,000 pounds as well
          as the CDL drivers.  They have had a very effective program,
          all the employees that fall within those categories are
          currently and have been in the past tested as needed.  There
          is a random testing program going on.  In January, 1997 the
          City Council adopted the Drug/Alcohol Testing Program which
          went beyond the DOT Program and allow to start doing pre-
          employment testing as well as post accident reasonable
          suspicion which they are currently doing now.  In 1996 they
          administered 75 alcohol oral testing, in drug only 17, in
          drug and alcohol 93 all relative to the CDL and DOT Program.
          In 1997 they did 47 random alcohol testings, 56 drug testing.
          In 1997 they had two (2) identifications of possible results
          and actions taken on those.  In 1997 to date since they
          implemented this program in March they have done 188 pre-
          employment drug/alcohol tests of which five (5) of those we
          positive and they took action with those.  They had one (1)
          reasonable suspicion to date, it was positive, and they have
          taken action with that.  They have had ten (10) Post
          Accidents and have had three individuals that have come
          forward on a self referral and they are currently working
          with those.  They have increased the exposure of testing and
          when they reviewed the random testing aspect of the
          drug/alcohol policy in early 1996, when they were proposing
          the program one of the comments that had to be addressed was
          are they going with reasonable suspicion and they agreed to
          do that.  What were they going to do with random testing?
          With random testing they had to look at many things.  The
          courts are not united, there is still the issue of privacy
          that they are having to deal with in some cases the courts
          rule in favor of the employer in some cases they don't and
          after they saw third party counsel outside they recommended
          that we not include random testing as part of our overall
          city-wide drug testing program. The other is, that if we were
          going to do a random test, they are talking about 1,700
          employees they would be looking at possibly additional
          $127,000-$175,000 that would have to be budgeted for that.

          Cw. Bruni is of the opinion that in order to safeguard the
          safety of the citizens and the liability of the City that we
          should have random drug testing and maybe even be looking at
          the possibility of drug testing all our employees including
          employees that work as subcontractors to the City of Laredo
          as long as it's within the perimeters of the attorney
          general's opinion and as long as it is legal.

          Jaime Flores, City Attorney, stated that the primary concerns
          here is in regard to balancing the important interests of
          government and protecting that sensitive information,
          security of employees and enhancing the work by its
          integrity.  The very important government interest vs. the
          very important 4th Amendment U.S. Constitution Right of
          Privacy that the employee has.  So in random testing it's not
          that balancing where we are seeking to obtain.  Courts have
          pretty much looked at both sides of the issue and rule from
          a municipality a government must have a compelling interest
          in order and that compelling interest of the government must
          out weigh or be greater than the privacy interest in order
          for that privacy interest of the individual to be overcome
          and it can be especially in the areas where we are talking
          about security sensitive or safety (firefighters, policemen,
          nurses, technicians who have very high degree of safety where
          random testing is a compelling interest of the government vs.
          the privacy interest.  So it would not be prudent or
          advisable to just go forward with random testing of all city
          employees taking the same mentioned factors in a secretarial
          job as opposed to a person who carries a firearm for example.
          They are looking at that in presenting to council a policy
          that would protect the employees of the City while respecting
          the very important privacy interest.

       2. Presentation by Dr. Jose G. Garcia, M.D., M.P.H. on alcohol
          and drug abuse with possible action.

          Dr. Garcia stated that he is in support of the idea or making
          sure that the rights of all of the employees are protected,
          however there is an area where he has some concern about that
          has to do with the area of testing for reasonable suspicion.
          It is his understanding that if the supervisors have not
          received adequate training for recognition of the elements
          that constitute reasonable suspicion and adequate
          documentation has not been maintained on a progressive basis,
          then the testing for reasonable suspicion may not be
          supported by court action.  He thinks that the reasonable
          suspicion testing is the one that has to have the most
          detailed and most precise documentation, including very
          careful training of the personnel that makes the decision
          that a particular person falls under the category of
          reasonable suspicion.  He thinks that type of training is
          what a complete package of drug testing must include, and
          that they have to have adequate training for the people
          that are going to be implementing the reasonable suspicion
          testing so they can recognize the individuals who in fact has
          a history of impairment that is more than likely caused by
          use of alcohol.

          Motion to instruct staff to get together with Dr. Garcia
          to formulate something to guide us as to what needs to be
          done, what steps and technical must be taken, get recommend-
          ations, and get a cost estimate of what it would cost to
          implement Dr. Garcia's recommendations.

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

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

       1. Discussion and possible action regarding the Mayor Pro Tem's
          authority, duties, and responsibilities.

          Cm. Casso stated that he received a letter from the City
          Manager addressed to the council which states that the basic
          issues were:
          (1) Does the election of a council member by his/her peers to
              the Office of Mayor Protem divest that council member of
              his/her voting privileges to him/her by the electorate,
              and replace such voting power with the voting power of
              the mayor? or,
          (2) Does the Mayor Protem retain his/her general voting
              priveleges? and,
          (3) If the council member retains his/her voting power, does
              the council member gain, in addition to his/her vote as a
              council member, the voting powers of the Mayor?

          Cm. Casso stated that his concern is that the City Charter
          provides explicit authority powers for the Office of the
          Mayor, but it does not do so for the Mayor Protem.  There is
          a city ordinance 90-O-101 which addresses the Mayor Protem's
          duties, but it doesn't specifically address the issue of
          voting authority.  So he thinks this is something this
          council need to debate and probably going to have to make an
          amendment to this ordinance and bring back to council because
          he knows staff already contacted the Attorney General's
          Office, TML, and it is up to this council to decide what it
          is going to be.  The way he sees the issue is that there are
          8 members on the council and the Mayor, so if the vote is
          4 to 4 the Mayor breaks the tie, but if the Mayor resigns it
          will be a Mayor Protem with seven Councilmembers and if for
          some reason council votes 4 to 3, he still retains his voting
          privileges and you would have grid lock for three long
          months.  If he uses his veto power, he could veto anything he
          wants because the Charter explicitly states that you need 5
          Councilmember votes to override his veto, he could literally
          veto everything and they wouldn't be able to do anything if
          they only have four members that would agree with him. So
          this poses a dilemma and he thinks this should be discussed
          as to what needs to be done because it up to this council and
          instruct staff to bring back an amendment if that is what
          council wants to do.

          Motion to instruct staff to bring an amendment to the
          ordinance on the powers of the Mayor Protem, that if the
          Mayor Protem accepts or assumes the responsibilities as Mayor
          Protem that he looses the power as a City Councilmember, the
          voting rights, so that he can carry out the Mayor's job.

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

       2. Discussion and possible action regarding the Wrecker Service
          Ordinance.

          Cm. Casso read a letter from a constituent as follows:
          Mr. Casso:  I've been trying to work with the Mayor on this
          problem, but we have trouble getting together, maybe you
          can also help.  My wife's car was one of the ones that the PD
          recovered across the river and I was contacted last Thursday
          June 5th via registered mail that the car was at Orozco's.  I
          do not mind paying a fare fee for the recovery of my
          property, but I feel that what is being asked is way out of
          line.  Second fact, she has the charges that Orozco wants me
          to pay, I called another tow truck service locally to get a
          price for towing a vehicle, I told them that my car had been
          broken down at the airport and if they would be able to tow
          the car from Nuevo Laredo to my home in North Laredo.  They
          said they would be able to do it with no problems, I asked
          the price, they quoted it would cost $150.00 to $180.00.
          Orozco is charging $600.00 just for Nuevo Laredo towing.
          Also after being notified that the car was here in Laredo, I
          went to look at it and its missing the radio, battery and
          spare, I borrowed a battery and the car started with no
          problems, this car didn't need to be towed it could have been
          driven back from Nuevo Laredo.  Like I stated before I don't
          mind paying a fare fee, but $948.00 just doesn't seem right."

          Cm. Casso stated this gentlemen is still asking about this
          fees and wants to know what staff recommends.

          Mayor Ramirez stated he called the towing service and they
          told him they would work with him and that was the last he
          heard.

          Florencio Pena, City Manager, stated he does not have the
          details on this situation, but that we have regulations as to
          how much they can charge and that he will look at the
          situation presented.

          Mr. Hector Cabello, owner of Cabello Wrecker Service, stated
          he feels that being sustained from the rotation list hurt his
          business because he has 15 wreckers, to this time he does not
          know what violations occurred in his business or why was he
          dismissed from the rotation list.

          Agustin Dovalina, Interim Chief of Police, stated that the
          bottom line is that his permit expired on June 30th and he
          did not renew it, so he was automatically not on the rotation
          list as of that date.

          Mr. Cabello stated that to get a permit from the City of
          Laredo the officer has to sign this and he has to submit
          $50.00, the check was ready the officer never came up with
          the permit.  He presented a paper officer drawn by Officer
          Morales that has never been circled or filled out.  He added
          he never got a notice for renewal or expiration of the
          permit.

          Cm. Alvarado stated that due process was not followed, there
          is a check off list, if there are any non-complying items
          they should have provided them in writing, he asked Officer
          Morales to do it, and he said that he would.

          Interim Chief Dovalina stated he will look into the matter
          and find exactly what transpired with Mr. Cabello.

          Cm. Casso requested something in writing as to what staff is
          going to do.

       3. Discussion and possible action regarding the creation of a
          tree department and committee for the City's participation in
          the Tree City USA Program.

          This item was discussed together with Cm. Valdez's F(2).

          Florencio Pena, City Manager, stated that this task will be
          assigned to the new director.

          Lynn Nava, from the Parks & Recreation Department, reported
          that it was the recommendation of the Parks & Recreation
          Committee that a Tree Board be created.

          Cm. Casso stated that he wants something in the budget for
          the next fiscal year and he suggested that the board be
          formed.


    E.  Requests by Councilmember Cecilia May Moreno

       1. Discussion and possible action on setting a timeline
          identifying possible funding sources and alignment of the
          proposed Outer Loop.

          Motion to set a timeline identifying possible funding sources
          and alignment of the proposed Outer Loop.

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

    F.  Requests by Councilmember Eliseo Valdez, Jr.

       1. Discussion and possible action regarding the upgrading of the
          lighting at Cruz Field.

          Motion to look for monies and bring back during to the budget
          hearings.

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

       2. Discussion and possible action regarding the City initiating
          a tree reclamation program.

          Cm. Valdez requested for staff to approach the City of
          Brownsville to see what they are doing and get costs.

       3. Status report regarding where the City is with regard to the
          selection of a legislative liaison, with possible action.
          (Co-Sponsored by Mayor Pro Tem Jose R. Perez, Jr.)

          Motion to recommend Raul Liendo as the legislative liaison at
          $12,500 per year as our Austin representative and instruct
          staff to bring back a contract for council approval.

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

          Cm. Casso requested that council should interview the
          applicants before hiring anyone or awarding a contract.

          Mr. Liendo stated that he would bypass his presentation and

          present it at an interview with council and the rest of the
          applicants.

          Motion to set a date for interviews, advice the applicants of
          the date of the interviews, and bring back to council with a
          recommendation by the next council meeting.

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

    G.  Requests by Councilmember Joe A. Guerra

       1. Presentation by Frank Leach from the Laredo Development
          Foundation regarding the development of a Public/Private
          Partnership to Streamline the City's Platting & Building
          Permit Process.

          Frank Leach spoke before Council on behalf of the Laredo
          Builders Association, Gateway Chapter/Texas Society of
          Professional Engineers, Laredo Chamber of Commerce and the
          Laredo Development Foundation to present 3 preliminary
          actions and 12 outlined recommendations to streamline the
          platting and building permit process.

          The three preliminary actions were:
          (A) Request that City Staff members from Traffic, Planning,
              Environment, Utilities and Building Permits immediately
              schedule a meeting with our private sector group to
              further refine our recommendations into a list of action
              items to be considered by the City Council.
          (B) Request that the City Council Workshop to review these
              action items with City Staff and our private sector group
              to scheduled as soon as possible, preferably as soon as
              the City Budget Hearings are concluded.
          (C) Request that the City Staff immediately help our private
              sector group review and revise our draft City
              Specification Book.

          The 12 outline recommendations were:
          1 - Adoption of a City of Laredo Construction Specification
              Book is a top priority.  A draft copy has been prepared
              and should be reviewed, revised and agreed-upon by the
              City Staff and the private sector beginning immediately.

          2 - The private sector must be required to submit complete
              applications to all concerned City Departments for
              preliminary plans, master plans, construction plans,
              permits, final approval, etc., based on written
              checklists maintained by each department.

          3 - City Staff and the private sector should begin within the
              next 45 days to establish specific policy, procedures and
              checklist necessary to file plats, seek P & Z approvals,
              approve plans for construction, final acceptance of
              projects and final acceptance with letters in a timely
              manner.  This would also include construction water meter
              permits, street cut permits, building permits and
              requirements necessary for environmental and traffic
              approvals.

          4 - A Policy and Procedure Handbook should then be prepared
              to include a flow chart and specific requirements
              established by the City so that anyone, local or
              otherwise, would know exactly how to get something
              accomplished in this community.

          5 - Private sector engineers should be made responsible for
              micro-managing & inspecting projects to reduce the City
              Staff workload & free-up City engineers for more
              important works such as preparing for future growth.

          6 - A One-Stop Center for building permits and utility
              permits should be created to help speed-up the process of
              paying all the various permit fees.

          7 - For private sector projects, the owner of the project
              will select the Testing Laboratory from a list of
              qualified testing laboratories to be maintained by the
              City Engineer.

          8 - Planning & Zoning Commission Agendas:  Any person or
              entity that files a plan that does not require a public
              hearing, and has the appropriate fees and submitted all
              required documentation, must be placed on the P & Z
              agenda for its next meeting.  Any request requiring a
              public hearing should be placed on the agenda once proper
              notice of such meeting has been given ad defined by State
              Law.

          9 - Voluntary Annexations:  To speed-up the entry of new
              projects into the marketplace, voluntary annexations
              should be made quarterly instead of annually.  Although
              an additional staff person would be required at the
              Planning Department, this minor City expense would remove

              what is now a time-constraint on the development of new
              projects.

         10 - City Computer Equipment:  To make the process more
              efficient the City should (a) invest in an Internet
              Server, (b) network all departmental computers so that
              inter-communication between department can be facilitated
              through e-mail, (c) place and keep updated all
              subdivision, development and zoning ordinances on the
              City's Web Site, and (d) purchase computers for the
              Building Permit Office.

         11 - Fee Structure:  All current City fees relating to
              building projects should be reviewed and compared to
              other Cities and revised if necessary to make Laredo cost
              competitive.

         12 - Technical Review Board:  (Not to duplicate any functions
              of the Planning & Zoning Commission)

              The City should establish a Technical Review Board made
              up of representatives of City Staff and the private
              sector (engineers, contractors and testing labs)

              The purpose of this group would be to provide input to
              the City Manager and City Council with regard to
              technical matters involved in construction and
              development.  This board would seek to implement
              productive and efficient policies and procedures for the
              purpose of providing cost effective development and
              construction.

              This Board would review all technical provisions and
              specification changes recommended by Engineering,
              Planning, Utilities, Environment, Traffic and Building
              Permit Department to provide private sector business
              input with regard to cost/benefit analysis and
              historical/practical use and effectiveness of the
              proposed changes.

              Mr. Pena stated that what is referred to is the Ad Hoc
              Ordinance Committee that has been created by Council,
              staff has been meeting with them for the last three
              months, basically the approach that Mr. Leach and the
              other members are proposing is much more focused.  They
              have met with this group already and he feels that they
              have made good progress with it, there are a few points

              that they may still disagree, on but he will bring those
              to City Council.

              Motion to instruct staff to proceed with the three steps
              that have been recommended by Mr. Leach and that they
              come back to Council within 90 days with a preliminary
              recommendation as to how to work this process up.

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

    H.  Requests by Councilmember Mario G. Alvarado

       1. Update by the Utilities Department regarding the Santa Isabel
          Water Well Project, with possible action.

          Jerry Pinzon, Assistant Utilities Director,  reported that
          after the exploratory drilling that they did to increase the
          production they found one of the indexes of the quality of
          the water was higher than what it was originally assigned for
          so what they are doing is a pilot test to see what they are
          going to have to do.  They are going to have to do extra
          treatment for it and so they asked the engineering staff to
          investigate what that pre-treatment is going to be.  They got
          some quality samples on Friday and were sent for testing and
          they will get the results by the end of the week.

          Cm. Alvarado stated that the concern was that this well has
          been under construction since 1993 at a cost of $1.5 million
          and not one single drop of water has been produced and that
          the area residents are waiting for water service.

          Mr. Pinzon stated that the contractor was put on notice for
          delinquent charges, they started the project later than they
          were supposed to, so there has been some problems.  The well
          has been constructed, it is the filtration system that is the
          problem.

          Florencio Pena, City Manager, stated that this project has
          had quite a few difficulties associated with it, one of the
          alternatives that they have in place right now is the
          Colonias Project which is going to provide water service
          along Mines Road.  The Santa Isabel Project will then be a
          support system entirely at that point and a really not of
          much use at that point unless they can tie it as a redundant
          or a secondary system to that, so the priority right now is
          to get the Colonia Project done and it is unfortunate it was
          a risk whenever you build water wells and the risk that was
          taken here, and the risk that was taken here has not played
          it way out completely at this point, they are trying to
          salvage as much as they can of this project.

          Mayor Ramirez stated there is difficulty with the water
          quality and that the problem has been that the filtrations
          system installed was not capable of cleaning out the water.

          Cm. Alvarado stated that he wants a written report and the
          status of the project at every first meeting of the month.
          He also requested that at the next meeting staff present a
          full budget report to how much money has been spent in this
          project.

       2. Discussion and possible action requesting street maintenance
          on the railroad crossing at Industrial Boulevard.

          Motion to force clean the area.

          Moved : Cm. Alvarado
          Second: Cw. Moreno
          For:  6                       Against:            Abstain:  0
          (Cm. Casso & Cm. Guerra were out temporarily.)

       3. Follow-up on a request by City Council for a traffic signal
          at Mines Road and Rancho Viejo, with possible action.

          Luis Landin, Traffic Manager, reported that the signal design
          has already been completed, they will present to TxDoT for
          approval, it might be approved because that area warrants the
          signal, they have to order the poles which will take three
          months to received because they have to be fabricated.  They
          might have the signal by the 1st of December.

          Cm. Alvarado stated that on a previous meeting it was stated
          that it would be installed by November.  His concern is that
          school starts in August and the biggest concern is the
          traffic trying to turn to Rancho Viejo.  He wants staff to do
          anything that can be done to expedite the timetable earlier
          than November.

          Mr. Murillo stated that the manufacturers have indicated that
          if they want a faster delivery of the poles, they might be
          able to do it but at a much higher cost.

          Mr. Landin stated they will try to expedite this as soon as
          possible.

       4. Discussion and possible action concerning acquiring an
          easement along the creek located between Finley Elementary
          School and Saint Jude Church.

          Rogelio Rivera, City Engineer, reported that there is a
          drainage easement already in that area (north of Bristol Road
          all the way to Rancho Viejo), south of that is privately
          owned.

          Cm. Alvarado stated that the concern that some people from
          the Parish have expressed whether the city needs to acquire
          some type of easement or right-of-way that is wide enough
          to be able to go in there with the machinery to do regular
          maintenance.

          Mr. Rivera answered that Public Works does regular
          maintenance, and in fact done maintenance on the private area
          because of the health hazard.  He added that it does belong
          to the city, it is a dedicated drainage easement that is part
          of the development.

          Mayor Ramirez stated that we can go in there, and wants that
          staff check just to make sure, and see  if there is adequate
          distance in the easement available in and out due to the
          construction by the church.

    I.  Requests by Councilmember Consuelo "Chelo" Montalvo

       1. Discussion and possible action regarding the sale of three
          surplus vehicles to our Sister City of Cienega de Flores,
          Nuevo Leon, Mexico, as follows:
                 Vehicle                Value
          a. 1977 Chevrolet C-65 Truck, $3500
          b. 1986 Ford Pick-up,         $2000
          c. 1990 Chevrolet Pick-up.    $4000
          (Co-sponsored by Cm. Eliseo Valdez, Jr.)

          Motion to proceed with the sale on the same basis as the
          vehicles that were sold to Nuevo Laredo.

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


 XII.  PUBLIC HEARINGS

      44. Public hearing concerning the application by B.P. Newman
          Investment Company, Max L. Watts, President amending the
          Zoning Ordinance (Map) of the City of Laredo by rezoning
          27.9858 acres, as further described by metes and bounds,
          located on Ejido Avenue, south of Los Obispos Subdivision,
          from R-3 (Mixed Residential District) to R-1-MH (Single
          Family Manufactured Housing District). The Planning and
          Zoning Commission recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 27.9858 acres, as further described by
          metes and bounds, located on Ejido Avenue, south of Los
          Obispos Subdivision, from R-3 (Mixed Residential District) to
          R-1-MH (Single Family Manufactured Housing District);
          providing for an effective date and publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Perez

      45. Public hearing concerning the application by B.P. Newman
          Investment Company, amending the Zoning Ordinance (Map) of
          the City of Laredo by rezoning 20.0801 acres, as further
          described by metes and bounds, located southeast of the
          intersection of Sierra Vista Boulevard and Ejido Avenue, from
          R-3 (Mixed Residential District) to R-1-MH (Single Family
          Manufactured Housing District). The Planning and Zoning
          Commission recommends approval of this zone change.


                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 20.0801 acres, as further described by
          metes and bounds, located southeast of the intersection of
          Sierra Vista Boulevard and Ejido Avenue, from R-3 (Mixed
          Residential District) to R-1-MH (Single Family Manufactured
          Housing District); providing for an effective date and
          publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Perez

      46. Public hearing concerning the application by Antonio
          Gonzalez, amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 2, Block 1, Los Presidentes
          Subdivision, Unit III, located at 3519 Pine Street from R-1
          (Single Family Residential District) to B-1 (Limited Business
          District). The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 2, Block 1, Los Presidentes
          Subdivision, Unit III, located at 3519 Pine Street from R-1
          (Single Family Residential District) to B-1 (Limited Business
          District); providing for an effective date and publication.

          Motion to open the public hearing.

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


          Mr. Diego Rodriguez, 3509 Hein, spoke against the zone change
          request.

          Mrs. Graciela Gonzalez, Child Care Provider, spoke in favor
          of the zone change request for the purpose of providing a Day
          Care Center.  She presented a list of 72 signatures in favor
          of allowing the Day Care Center at this location.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Perez

      47. Public hearing concerning the application by Del Trautman,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 22 acres, as further described by metes and bounds,
          located on the south side of Del Mar Boulevard, south of
          Bermuda Dunes Subdivision, from R-1 (Single Family
          Residential District), R-2 (Multi-Family Residential
          District) and B-3 (Community Business District) to B-4
          (Highway Commercial District).  The Planning and Zoning
          Commission recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 22 acres, as further described by metes
          and bounds, located on the south side of Del Mar Boulevard,
          south of Bermuda Dunes Subdivision, from R-1 (Single Family
          Residential District), R-2 (Multi-Family Residential
          District) and B-3 (Community Business District) to B-4
          (Highway Commercial District); providing for an effective
          date and publication.

          Motion to open the public hearing.

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

          Mr. Del Trautman, representing the property owner, appeared
          before the council to speak in favor of the zone change
          request.

          Motion to close the public hearing and table the item for the
          August 18th meeting.

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

      48. Public hearing concerning the application by Eduard C. Hachar
          and Robert D. Hachar, amending the Zoning Ordinance (Map) of
          the City of Laredo by authorizing the issuance of a
          Conditional Use Permit for a child education/day care center
          on Lots 1 and 2, Block 1697, Eastern Division, located at
          2801 and 2807 East Fremont Street. The Planning and Zoning
          Commission recommends approval of this conditional use
          permit.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by authorizing the issuance of a Conditional Use
          Permit for a child education/day care center on Lots 1 and 2,
          Block 1697, Eastern Division, located at 2801 and 2807 East
          Fremont; providing for an effective date and publication.

          Motion to open the public hearing.

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

          Mr. Keith Selman, Planning & Zoning Director, made the
          presentation.

          There was no public input.

          Cm. Bruni stated that the concerns were the off-street
          parking.  When children will be dropped off, the residents
          were concern that they would be coming off Arkansas and
          blocking traffic, the residents on the north side, when
          trying to pull of their driveways would be impacted by
          vehicles that are parked there dropping off the children.  He
          would like to make sure that there is no off-street parking
          at all and that the children are not dropped off in front of
          the building by somehow access thru the parking area in the
          back.  He told his constituents that he met with 8 families
          of the area and that he would table issue to the following
          meeting so that they can get together with the developer and
          the residents so that they can rest assure that there will be
          no interruption of traffic going in and out.

          Motion to close the public hearing, table for the next
          council meeting with the recommendation on site specific
          parking.

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

      49. Public hearing concerning the application by Ernesto J.
          Cardenas, amending the Zoning Ordinance (Map) of the City of
          Laredo by authorizing the issuance of a Conditional Use
          Permit for a grocery store on Lot 7, and part of Lot 6, Lot
          8, and part of Lot 5, Block 1705, Eastern Division, located
          at 2820 Chihuahua Street. On appeal, the City Council at the
          meeting of May 27, 1997, requested that the item be sent back
          to the Planning and Zoning Commission for consideration of a
          conditional use permit. The Planning and Zoning Commission
          recommends denial of this conditional use permit.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by authorizing the issuance of a Conditional Use
          Permit for a grocery store on Lot 7, and part of Lot 6, Lot
          8, and part of Lot 5, Block 1705, Eastern Division, located
          at 2820 Chihuahua Street; providing for an effective date and
          publication.

          Motion to open the public hearing.

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

          Ron Whitehawk, representing Mr. Ernesto Cardenas, spoke in
          favor of the Conditional Use Permit for this property for use
          as a small grocery store.

          Mr. Ernesto Cardenas, property owner, spoke in favor of being
          granted the zone change request.

          Sylvia Tays of 2804 Rosario spoke in favor of the zone change
          request by Mr. Cardenas.

          Ms. Nora Valdez spoke in favor of the zone change request.

          Ms. Delfina Martinez spoke in favor.

          Maria Ibarra, 2903 Chihuahua, spoke against the zone change
          requested by Mr. Cardenas.

          Mrs. Maria Lara spoke against the zone change request.

          Cm. Bruni turned in a list of 30 signatures who were in favor
          of the zone change request.

          Motion to close the public hearing and over rule the Planning
          and Zoning Commission and grant the zone change request.

          Moved : Cm. Bruni
          Second: Cm. Guerra
          For:  3                       Against:  5         Abstain:  0
          Cm. Bruni                     Cm. Perez
          Cm. Casso                     Cw. Moreno
          Cm. Guerra                    Cm. Valdez
                                        Cm. Alvarado
                                        Cw. Montalvo

      50. Public hearing concerning the application by Jacaman
          Investment Group, LTD, amending the Zoning Ordinance (Map) of
          the City of Laredo by rezoning 107.74 acres, as further
          described by metes and bounds, located east of the Bob
          Bullock Loop and north of Lake Casa Blanca, from AG
          (Agricultural District) to R-1 (Single Family Residential
          District). The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 107.74 acres, as further described by
          metes and bounds, located east of the Bob Bullock Loop and
          north of Lake Casa Blanca, from AG (Agricultural District) to
          R-1 (Single Family Residential District); providing for an
          effective date and publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Bruni

      51. Public hearing concerning the application by Jacaman
          Investment Group, LTD, amending the Zoning Ordinance (Map) of
          the City of Laredo by rezoning 10.997 acres, located at 7100
          Bob Bullock Loop, from AG (Agricultural District) to B-3
          (Community Business District). The Planning and Zoning
          Commission recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 10.997 acres, as further described by
          metes and bounds, located at 7100 Bob Bullock Loop, from AG
          (Agricultural District) to B-3 (Community Business District);
          providing for an effective date and publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Bruni

      52. Public hearing concerning the application by Jacaman
          Investment Group, LTD, amending the Zoning Ordinance (Map) of
          the City of Laredo by rezoning 21.849 acres, as further
          described by metes and bounds, located east of the Bob
          Bullock Loop and north of Casa Blanca Lake, from AG
          (Agricultural District) to R-2 (Multi-Family Residential
          District). The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 21.849 acres, as further described by
          metes and bounds, located east of the Bob Bullock Loop and
          north of Casa Blanca Lake, from AG (Agricultural District) to
          R-2 (Multi-Family Residential District); providing for an
          effective date and publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Bruni

      53. Public hearing concerning the application by Robert
          Kitzmiller for Border Broadcasters, Inc., amending the Zoning
          Ordinance (Map) of the City of Laredo by rezoning Lots 1, 2,
          3, 4, 5, 6, 7, 8, 9, 10, 11, and 12, Block 1481-A, Eastern
          Division, located on South Zapata Highway at Wooster Street,
          from B-3 (Community Business District) to B-4 (Highway
          Commercial District). This is an appeal from a recommendation
          for denial by the Planning and Zoning Commission.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,
          and 12, Block 1481-A, Eastern Division, located on South
          Zapata Highway at Wooster Street, from B-3 (Community
          Business District) to B-4 (Highway Commercial District);
          providing for an effective date and publication.

          Motion to open the public hearing.

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

          Ron Whitehawk, representing property owner, spoke in favor
          stating the this facility will be use as a Community
          Corrections Center/Halfway House for federal prisoners from
          the area.

          Mr. Pedro Gonzalez spoke against this facility because it
          would be near his home.

          Motion to close the public hearing and deny the zone change
          request.

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

      54. Public hearing concerning the application by Dr. George
          Garcia, amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 3.5 acres, as further described by metes
          and bounds, located at 301 International Boulevard, from B-3
          (Community Business District) to B-4 (Highway Commercial
          District). The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 3.5 acres, as further described by metes
          and bounds, located at 301 International Boulevard, from B-3
          (Community Business District) to B-4 (Highway Commercial
          District); providing for an effective date and publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Guerra

      55. Public hearing concerning the application by A.F. Muller,
          Jr., amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 2 acres, as further described by metes and
          bounds, located at 405 A.F. Muller Sr., Memorial Boulevard,
          from M-1 (Light Manufacturing District) to B-3 (Community
          Business District). The Planning and Zoning Commission
          recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 2 acres, as further described by metes and
          bounds, located at 405 A.F.  Muller Sr., Memorial Boulevard,
          from M-1 (Light Manufacturing District) to B-3 (Community
          Business District); providing for an effective date and
          publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Alvarado

      56. Public hearing concerning the application by Refugio
          Hinojosa, Oscar Hinojosa, Eduardo Hinojosa and Carlos
          Hinojosa, amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 3.409 acres out of Porcion 19, Abstract
          591, as further described by metes and bounds, located west
          of F.M.  1472 across from the old municipal airport, from M-1
          (Light Manufacturing District) to B-3 (Community Business
          District). The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 3.409 acres out of Porcion 19, Abstract
          591, as further described by metes and bounds, located west
          of F.M. 1472 across from the old municipal airport, from M-1
          (Light Manufacturing District) to B-3 (Community Business
          District); providing for an effective date and publication.

          Motion to open the public hearing.

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

          Mr. Ron Whitehawk, on behalf of the Killam Industrial Park,
          spoke in favor.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Alvarado

      57. Public hearing concerning the application by Edmundo Gomez,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 3, Block 619, Western Division, located at 2314
          Ventura Street, from R-2 (Multi-Family Residential District)
          to R-3 (Mixed Residential District). The Planning and Zoning
          Commission recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 3, Block 619, Western Division,
          located at 2314 Ventura Street, from R-2 (Multi-Family
          Residential District) to R-3 (Mixed Residential District);
          providing for an effective date and publication.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cw. Montalvo

      58. Public hearing concerning the application by Applied
          Petroleum Technologies, Sam J. Susser, amending the Zoning
          Ordinance (Map) of the City of Laredo by rezoning Lots 1 and
          3, Block 169, Western Division, located at 1002 Santa Maria
          Avenue, from R-O (Residential/Office District) to B-1
          (Limited Business District). The Planning and Zoning
          Commission recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lots 1 and 3, Block 169, Western Division,
          located at 1002 Santa Maria Avenue, from R-O
          (Residential/Office District) to B-1 (Limited Business
          District); providing for an effective date and publication.

          Motion to open the public hearing.

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

          Sergio Davila spoke in favor to ease the traffic flow.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cw. Montalvo

      59. Public hearing approving an amendment to the budget in the
          amount of $37,691.00, for the HIV/AIDS Housing Opportunities
          for Persons with AIDS (HOPWA) Project of the City of Laredo
          Health Department, and extension of contract term period from
          June 30, 1997 through January 31, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving an amendment to the budget in the amount
          of $37,691.00, for the HIV/AIDS Housing Opportunities for
          Persons with AIDS (HOPWA) Project of the City of Laredo
          Health Department, and extending the contract period from
          July 1, 1996, through June 30, 1997 to July 1, 1996, through
          January 31, 1998; and increase revenue line item 226-0000-
          323-4058 from $55,996.00, to $93,687.00, and expenditure line
          item 226-6040 from $55,996.00 to $93,687.00.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

      60. Public hearing allowing interested persons to comment on the
          1997 Consolidated Plan which identifies the projects proposed
          to be funded by the U.S.  Department of Housing and Urban
          Development through the 23rd Action Year Community
          Development Block Grant (CDBG), the 1997 HOME Investment
          Partnerships Program (HOME), and the 1997 Emergency Shelter
          Grant (ESG). The projects are as follows:
          23rd Action Year CDBG ($4,372,000)
           1. Administration  . . . . . . . . . . .$  561,825 2.
           Housing Rehab Admin . . . . . . . . .$  132,276
           3. Housing Rehab Loan Program  . . . . .$  350,000
           4. Code Enforcement  . . . . . . . . . .$  254,830
           5. Graffiti Removal Program  . . . . . .$   34,100
           6. Lafayette Widening
              Project Phase II. . . . . . . . . . .$  800,000
           7. Gallagher Street Improvements . . . .$  110,000
           8. Guadalupe Street Improvements . . . .$   50,000
           9. Zacate Creek Beautification . . . . .$  300,000
          10. El Portal Riverfront
              Feasibility . . . . . . . . . . . . .$   23,000
          11. Sidewalk Program (All CD District
              $307,296 and Districts 2, 3, & 4 -
              $477,000) . . . . . . . . . . . . . .$  784,296
          12. Paving Project 60 Grants  . . . . . .$   27,673
          13. Tinaja/Chacon Creek Pilot
              Channel Phase I . . . . . . . . . . .$  358,000
          14. Paving Project 60 . . . . . . . . . .$  400,000
          15. Downtown Sidewalk
              Curb Construction . . . . . . . . . .$  119,000
          16. Paving Project 61 Engineering . . . .$   40,000
          Park Improvements
          17. East Martin Field Improvements. . . .$    3,000 18.
          Benavides Softball
              Complex Irrigation System . . . . . .$   10,000
          19. Maryland Toddler Park
              (Adjacent to Health Department) . . .$    6,000
          20. Los Dos Laredo Park Improvements  . .$    4,000
          21. Zacate Creek Park Soccer
              Field Improvements. . . . . . . . . .$   17,780
          HOME Investment Partnerships Program
          1997 Grant $1,192,000
           1. Downpayment Assistance. . . . . . . .$  700,000
           2. New Construction. . . . . . . . . . .$  200,134
           3. Community Housing
              Development Organization. . . . . . .$  178,800
           4. Administration. . . . . . . . . . . .$  113,066
          Estimated HOME Program Income $2,000,300
           1. New Construction. . . . . . . . . . .$1,600,300
           2. Substantial Rehabilitation. . . . . .$  100,000
           3. Downpayment Assistance. . . . . . . .$  300,000
          Emergency Shelter Grant - $115,000
           1. Homeless Prevention . . . . . . . . .$   34,500
           2. Shelter Rehabilitation. . . . . . . .$   79,920
           3. Administration. . . . . . . . . . . .$      580

          Motion to open the public hearing.

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

          Cindy Collazo, CD Director, reported that item #21 needs to
          the reflect the correct amount of $4,000, instead of $17,780.

          Mr. Richard Flyn asked how the homeless are to be served with
          the proposed $34,500.

          Mrs. Collazo replied that this amount is for RFPs for an
          agency to assist for mortgage payments, rent assistance, etc.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council


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

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

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

      61. Motion to adopt the Disadvantaged Business Enterprise Program
          and 22% Goal for 1997-98.

          Motion to approve.

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

      62. Approval of change order No. 6, an increase of $16,716.12, to
          the Intermodal Transit Center construction contract with
          Ramex Construction Company, Houston, Texas, for the addition
          of elevator sump pumps, heat detectors and metal partitions
          to comply with recent State and Local elevator code
          revisions; and interior changes to the office towers as
          requested by City staff.  Original contract amount was for
          $8,009,000.00.  This change order will bring the total
          $8,735,959.45.

          Motion to approve.

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

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

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

 XIV.  ADJOURNMENT

          Motion to adjourn.

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

          Adjournment time:  9:55 p.m

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 48
ARE TRUE, COMPLETE AND CORRECT PROCEEDINGS OF THE REGULAR CITY COUNCIL
MEETING HELD ON THE 21ST DAY OF JULY, 1997.  A CERTIFIED COPY IS ON
FILE AT THE CITY SECRETARY'S OFFICE.


                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY