CITY OF LAREDO
                          CITY COUNCIL MEETING

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

                                MINUTES


      M97-R-28                                     AUGUST 18, 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 ALVARADO,              "     , DISTRICT VII
       CONSUELO (CHELO) 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 July 7, 1997
          City Council Workshop COPS of July 10, 1997
          Aid to other Agencies Workshop of July 19, 1997
          City Council Meeting of July 21, 1997

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Guerra
          For:  7                       Against:  0         Abstain:  0
          Cw. Moreno was not present.

          Motion to waive regular order of business and move up items
          F(1), A(1), B(1), and D(1).

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

          Cw. Moreno joined the meeting at 6:20 p.m.

   V.  INTRODUCTORY ORDINANCES

       3.  Authorizing the City Manager to execute a lease with Dynair
           CFE Services, Inc., for approximately 416 square feet
           constituting Building #168.
           1. Lease term is for one (1) year commencing May 1, 1997 and
              ending April 30, 1998 and be extended for one (1) year
              ending April 30, 1999.
           2. Monthly rent shall be $425.00 and will be adjusted
              annually during the primary and extension term of this
              lease according to changes in the Consumer Price Index.
              Previous monthly rent was $369.51. Leased premises are
              used for air freight operations

           Ordinance Introduction: City Council

       4.  Closing as a public easement a 513.1 square foot parcel of
           land, more or less, out of the 1000 Block of Baltimore
           Street between Flores and San Agustin Avenues and the 3500
           Block of Flores Avenue between Baltimore and Lafayette
           Streets, said parcel of land being encroached by the
           improvements of the abutting property being Lot 2, Block
           901, Western Division, being more particularly described by
           metes and bounds, and authorizing the sale of the "surface
           only" of said parcel of land at the adjusted fair market
           value of $1,026.20, and authorizing the City Manager to
           execute all necessary documents to effectively convey fee
           simple title to Victor Alvarez and wife Sara A.  Alvarez and
           Irene R. Sanchez, a single woman.

           Ordinance Introduction: City Council

       5.  Closing as a public easement a 465.28 square foot parcel of
           land, more or less, out of the 1800 Block of Logan Avenue
           between Guerrero and Lane Streets, said parcel of land being
           encroached by the improvements of the abutting property
           being Lot 7, Block 250, Eastern Division, being more
           particularly described by metes and bounds, and authorizing
           the sale of the "surface only" of said parcel of land at the
           adjusted fair market value of $697.92, and authorizing the
           City Manager to execute all necessary documents to
           effectively convey fee simple title to Adelina de Leon and
           Virginia A. Gonzalez.

           Ordinance Introduction: City Council

       6.  Authorizing the establishment of a limited-time deferred
           payment plan for delinquent customers of the utilities
           department who declare themselves willing but unable to pay
           the full balance on their account, citing hardship, or
           extraordinary circumstances.

           Ordinance Introduction: Cm. Guerra

       7.  Authorizing the Utilities Department to refuse service to
           individuals or business entities who owe prior balances for
           services received and who attempt to open an account under a
           different name or location for the purpose of avoiding
           payment of said rendered services; providing for effective
           date and publication.

           Ordinance Introduction: Cm. Guerra

  VI.  FINAL READINGS

       Motion to waive the final reading of Ordinance(s) #97-O-179,
       #97-O-180, #97-O-181, #97-O-182, #97-O-183, #97-O-184,
       #97-O-185, #97-O-186, #97-O-187, and #97-O-188.

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

       8. 97-O-179  Amending Section 2 of Ordinance No. 90-O-101, to
                    clarify and set forth the voting powers  of the
                    Mayor Pro Tem of the City of Laredo, and for other
                    purposes.  (City Council)

                    Motion to approve.

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

       9. 97-O-180  Authorizing the City Manager to execute a lease
                    with Border Maintenance Service, Inc., for
                    approximately 2,304 square feet constituting
                    Building #1421 located at 1817 Pappas Street at the
                    Laredo International Airport. Lease premises are
                    used for office space and a maintenance service
                    workshop.
                    1. Lease term is for one (1) year commencing July
                       1, 1997 and ending June 30, 1998.
                    2. Monthly rent shall be $550.00.  Previous monthly
                       rent was $500.00.  (City Council)

                    Motion to approve.

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

      10. 97-O-181  Authorizing the City Manager to execute a lease
                    with Loomis, Fargo & Co., for approximately 1,380
                    square feet constituting Building #S-3 located at
                    1703 Sandman Street. Lease premises are used for
                    armored car security services.
                    1. Lease term is for one (1) year commencing July
                       1, 1997 and ending June 30, 1998 and may be
                       extended for one (1) year ending June 30, 1999.
                    2. Monthly rent shall be $1,104.00 and will be
                       adjusted annually during the primary and
                       extension term of this lease according to
                       changes in the Consumer Price Index.  Previous
                       monthly rent was $992.41.
                       (City Council)

                    Motion to approve.

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

      11. 97-O-182  Authorizing the City Manager to execute a lease
                    with Bowden Medical, Inc., for approximately 3,588
                    square feet constituting Building #1432, #1438 and
                    #1439. Building #1432 is located at 1803 Pappas
                    Street, and Building #1438 & #1439 are located at
                    1719 Pappas Street at the Laredo International
                    Airport.  Lease premises are used to store medical
                    equipment and supplies.
                    1. Lease term is for one (1) year commencing May 1,
                       1997 and ending April 30, 1998.
                    2. Monthly rent shall be $630.00.  Previous monthly
                       rent was $600.00.  (City Council)

                    Motion to approve.

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

      12. 97-O-183  Amending the provisions o the City of Laredo's Code
                    of Ordinances Chapter 2, Article II, Sec. 2-16,
                    which sets forth the Departments of the City; and
                    2017 which sets forth the division in each
                    department; thereby deleting the Educational and
                    Recreational Services Department and the
                    Developmental Services Department and adding four
                    departments being the Parks and Recreation
                    Department, the Building Inspections Department,
                    the Library Department, and the Convention and
                    Visitors' Bureau; and modifying the divisions
                    within the applicable Departments; providing for
                    publication and providing for effective date.
                    (City Council)

                    Motion to approve.

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

      13. 97-O-184  Authorizing the execution of an interim loan
                    agreement between the City of Laredo and NBC Bank -
                    Laredo, N.A., in the amount of $1,350,000.00,
                    payable from surplus revenues of the City's
                    International Toll Bridge System, and other matters
                    related to this subject.  (City Council)

                    Motion to approve.

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

      14. 97-O-185  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.
                    (Louis H. Bruni)

                    Motion to approve.

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

      15. 97-O-186  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.  (Alfonso I. Casso)

                    Adan Gonzalez, a local attorney and area resident,
                    asked council to deny this zone change request or
                    at the least table if denial is not considered.  He
                    spoke against the zone change request.

                    Chad Sims, area property owner, pilot, and a
                    neighbor of Mr. Gonzalez, stated that the location
                    is very close to the airport runways, approach and
                    departure runways.  His concern is the safety
                    factor on forced landings on either departures or
                    approaches with tall buildings and also during bad
                    weather.  He asked that the tall structures
                    provision be looked at.

                    Cm. Bruni showed a video of the area.  He stated
                    that the Texas Department of Health has ruled
                    against licensing the new Colombia Doctors Hospital
                    if the facility were to be built on the proposed
                    site due to the proximity of the airport runways.
                    He stated for the record, "I do not opposed to the
                    building of Doctors Hospital, Laredo needs
                    additional facilities, and Laredo needs additional
                    corporations to invest in our community.  We just
                    don't need to have a hospital built in an area that
                    would endanger the very people that we are trying
                    to help.  I submit and proposed to you that perhaps
                    if we could...it would be in Laredo's best interest
                    to work with Colombia HCA in the location more
                    proper than the location we see in front of us.
                    It's a new hospital, it is going to be there for 50
                    years, lets see if we can bring both sides together
                    and work together on this issue."

                    He read for the record a fax sent to him from The
                    Texas Department of Health - Licensing Division in
                    reference to the proposed construction site for
                    Colombia HCA replacing hospital as follows:

                    "Dear Mr. Bruni:"

                    "Thank you for the aerial map of Laredo...of the
                    Laredo area containing the north portion of the
                    airport and the proposed site for the new Colombia
                    HCA Hospital.  Hospitalizing standards Sections
                    6.3-11 prohibit building or licensing of hospitals
                    near airports.  The area in which the hospital
                    cannot be built or license lies within an area
                    defined by a perpendicular line to the runway two
                    miles or 10,560 ft. of each end of the runway in a
                    parallel line one half mile or 2,640 ft. from each
                    side of the runway.  The proposed site is directly
                    in line with runway 17L and 17R.  The location is
                    well within the prohibited area.  For this reason,
                    any building within this area would not be licensed
                    as a hospital by the Texas Department of Health and
                    Licensing Division.  Submitted by Mr. Z--- A.
                    Pithut, P.E. & Chief Engineer in Austin, Texas."

                    Cm. Casso stated that regarding the airport
                    runways, landing etc., that is not much of a
                    council issue as much as a private sector issue
                    because once they change the zone change what is
                    going to happen is that it still has to go to the
                    platting requirement and if they go to that stage
                    and don't pass that stage they will be denied
                    there.  If what Cm. Bruni is saying about the
                    ruling is true, because it has not been verified,
                    if it is true then they won't pass that stage.  He
                    added that we shouldn't be here denying a zone
                    change because of Cm. Bruni's argument.  He stated
                    what he has tried to do during the last three
                    years is to be leave the politics out of the
                    decision making that goes on at City Hall, it is
                    difficult to do, but he tries to do that.  When a
                    hospital tries to invest in other communities, they
                    open their arms to these people.  These people are
                    going to invest $70 million and provide 250 jobs.
                    He concluded by saying that they have to create a
                    pro-business environment in this community.  He is
                    also concerned that Cm. Bruni is exposing this
                    municipality to a tremendous amount of liability
                    because one of the principal partners is Del
                    Trautman, but one of the minor is partners is his
                    brother-in-law, Steve Whitworth.

                    Motion to table indefinitely.

                    Moved : Cm. Bruni
                    Second: Cm. Perez
                    For:  6             Against:  2         Abstain:  0
                    Cm. Perez           Cm. Casso
                    Cm. Bruni           Cm. Guerra
                    Cw. Moreno
                    Cm. Valdez, Cm. Alvarado, and Cw. Montalvo

      16. 97-O-187  Ordinance amending the City of Laredo's 1996-1997,
                    annual budget in the amount of $55,721.00 for
                    funding of supplies and direct operating expenses
                    for a Multi-Agency Narcotics Task Force for the
                    period of June 1, 1997 through May 31, 1998. (As
                    Amended) (City Council)

                    Motion to approve.

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

      17. 97-O-188  Amending the City of Laredo's 1996-1997, Annual
                    Budget in the amount of $24,000.00, for a grant
                    from the Texas Department of Public Safety Division

                    of Emergency Management in order to complete a
                    Hazard Vulnerability Analysis.  (City Council)

                    Motion to approve.

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

 VII.  RESOLUTIONS

      18. 97-R-085  Opposing the proposed Nuclear Waste Dump to be
                    located in Sierra Blanca, Hudspeth County, Texas.
                    (Sponsored By Mayor Saul N. Ramirez, Jr.)

                    Motion opposing the proposed Nuclear Waste Dump to
                    be located in Sierra Blanca, Hudspeth County,
                    Texas.

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

      19. 97-R-088  Authorizing the City of Laredo to participate in
                    the following investment pools:  LOGIC (Local
                    Government Investment Cooperative) and Lone Star
                    Investment Pool.  The City of Laredo Investment
                    Policy requires approval by City Council in order
                    to join any investment pool. LOGIC and Lone Star
                    Investment pools are both in compliance with the
                    Public Funds Investment Act; both offer safety of
                    principal; both offer diversification of the City
                    Portfolio; both offer liquidity and higher yields.

                    Motion to approve.

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

VIII.  MOTIONS

      20. Approval of bid specifications and authorization to advertise
          for bids for the following:
          a) Computer Equipment - Police Department, Engineering, Tax
             Department, Utilities Department, Bridge System.  A
             tentative bid award date is set for September 15, 1997.
             Funding is available in the Police Department Trust Fund -
             Capital Outlay, Engineering Department Design, Drafting,
             Capital Outlay, Bridge System -Capital Outlay.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  7                       Against:  0         Abstain:  0
          Cm. Casso was not present.

      21. Authorizing the City Manager to solicit request for proposals
          from qualified environmental services for drilling 4
          additional Groundwater Monitoring Wells at the City's
          Municipal Landfill in compliance with Texas Natural Resource
          Conservation Commission (TNRCC) Chapter 330 Subchapter I
          (Groundwater Sampling and Monitoring) and Subchapter J
          (Closure).

          Motion to approve.

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

      22. Approval of construction plans and authorization to advertise
          for bids for the Telecommunications Offices and Public Access
          Facility, and authorization to bid the project with tentative
          award on September 22, 1997. The facility is to be located in
          the Civic Center on the 900 block of garden Street. Funding
          is available in the Public Access Channel Account.

          Motion to approve.

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

      23. Authorizing the City Manager to pursue a planning grant from
          the Border Environment Cooperation Commission (BECC) for the
          preparation of a water master plan; authorizing the issuance
          of Request for Qualifications from engineering firms for said
          project.

          Motion to approve.

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

      24. Approval of a contract with RWL Group, Dallas, Texas, for an
          amount not to exceed $9,500.00, to conduct a funding study
          with respect to the surplus or deficit position of the Health
          and Benefits Fund in order validate the recommended pension
          upgrade approved by the City Council at the budget workshop,
          to become effective January 1, 1998.

          Motion to approve.

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

      25. Approval of a contract with RWL Group, Dallas, Texas, for an
          amount not to exceed $8,000.00, to conduct a rate study of
          the City's health benefits plan.

          Motion to approve.

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

      26. Authorizing the use of monies located in the City Council's
          Reserve For Capital Improvement account to facilitate the
          purchase of a marble monument to be placed at Veterans Field
          in the amount of $2,075.00, from Joe Jackson Heights, Laredo,
          Texas.

          Motion to approve.

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

      27. Authorize the purchase of seven portable radio for the Police
          Department through the Houston Galveston Area Council of
          Governments (HGAC) - Cooperative Purchasing Program, in the
          total amount of $13,370.00. These voice secure radios will be
          purchased through the cooperative purchasing contract vendor
          Motorola. This equipment is needed for the implementation of
          the Community Oriented Policing Program. Delivery of these
          radios is expected within sixty days.

          Motion to approve.

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

      28. Authorizing the City Manager to request bids and to purchase
          street lights to be placed on trees and around light poles in
          the Downtown area bounded by IH-35 on the East, Moctezuma on
          the North, Zaragoza Street on the South, and Santa Maria
          Avenue on the West. This project will provide increased
          illumination and enhance the area's safety and aesthetics. To
          fund this project, staff further seeks authorization to
          transfer $170,000.00, of 22nd Action Year Community
          Development Block Grant funds from the Economic Development
          Loan Account No. 211-9640-535-1189 to the Street Light
          Account No. 211-9640-535-1158.

          Motion to approve.

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

      29. Acceptance of the Construction of Cells No. 7 and No.  8 per
          Subtitle D Requirements of the Texas Natural Resource
          Conservation Commission (TNRCC) for the City of Laredo
          Landfill located at Texas Highway 359 and approval of final
          payment in the amount of $25,201.39 to Big D Lining Systems
          Company, Midland, Texas. Funding is available in account No.
          666-2760-353-1200.

          Motion to approve.

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

      30. Acceptance of the 36 Inch Diameter Water Line Project from
          the Jefferson Street Water Treatment Plant to FM 1472 Water
          Tower at Mines Road, and approval of total release of the
          retainage in the amount of $112,621.05 to McLean Construction
          Company, Inc., Killeen, Texas. A deduction of $2,360.00, for
          contact clips not placed is recommended, therefore final
          payment is $110,261.05. Funding is available in the Retainage
          Payable Account.

          Motion to approve.

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

      31. Approval of change order no. 2, a decrease of $1,356.35,
          acceptance of the Malinche Avenue Re-Alignment Street
          Improvements from Bartlett/Locust to Frost Street Project,
          and approval of final payment in the amount of $24,251.05 to
          Ramex Construction Company, Inc., Houston, Texas.  Funding is

          available in the Capital Improvement Fund Malinche Re-
          Alignment Project and Retainage Payable Account.

          Motion to approve.

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

      32. Approval to reject the sole bid received from Leyendecker
          Construction Company in the amount of $2,198,000.00 for the
          construction of the Father Charles McNaboe Recreational
          Complex and authorizing City Staff to work on a plan whereby
          some of the construction work can be done in-house and
          portions to be subcontracted out, with the concurrence of the
          Texas Department of Parks and Wildlife and United Independent
          School District (UISD).

          Motion to approve.

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

      33. Award of a construction contract to the LOWEST BIDDER, A.E.
          Construction Company, Inc., San Antonio, Texas, in the amount
          of $263,930.86, for the Construction of 68 accessible ramps
          at 17 intersections at San Agustin Plaza, Bruni Plaza and
          Saint Peters Plaza and related access routes.  A total of
          three bids were received for this project. Contract time is
          130 working days. Funding is available in the Community
          Development Curb Construction ADA and Capital Improvement ADA
          Improvements.

          Motion to approve.

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

      34. Award of an asbestos abatement contract to the LOWEST BIDDER,
          Bexar Environmental San Antonio, Texas in the amount of
          $23,598.00 for the Asbestos Abatement of Laredo International
          Airport Buildings 1324 & 1425. This project is part of the
          Economic Development Administration Airport/Medical
          Infrastructure Improvement Project. The City received a total
          of seven (7) bids. Funding is available in the Airport/
          Medical Infrastructure Improvement Project Fund.
          Motion to approve.

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

      35. Award of an engineering contract to G.G. Salinas Engineering,
          Laredo, Texas, in the amount of $38,600.00 to provide
          surveys, design and prepare plans and specifications for the
          construction of sidewalks along Community Development lock
          Grant (CDBG) residential neighborhoods to provide safe
          walkways to connect neighborhoods to local schools.  Funding
          is available in the Community Development CD Projects/
          Sidewalks Account.

          Motion to approve.

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

      36. Approval of amendment no. 2, an increase of $45,000.00 to the
          engineering contract with NRS Consulting Engineers,
          Harlingen, Texas, for additional Resident Project
          Representative (inspection services) due to construction
          delays for the Milmo Avenue, East Corridor and Other Booster
          Pump Station Project and for the 5 Million Gallon Water
          Storage Tank and High Service Pump for the sierra Vista
          Booster Station in South Laredo.  Staff recommends seeking
          reimbursement for these additional inspection costs from the
          contractor by assessing liquidated damages for delays.
          Original contract amount was for $175,400.00. This amendment
          brings the total to $243,400.00. Funding is available in the
          Waterworks System Fund.

          Motion to approve.

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

      37. Authorizing the City Manager to amend the City's contract
          with Parsons Brinckerhoff Quade & Douglas, Inc., for
          Environmental Assessment Services (EA) associated with the
          Laredo Northwest International Bridge (Fourth Bridge) and
          connecting roadways to extend the contract period to
          January 15, 1997.

          Motion to approve.

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

      38. Referring proposed amendments of the City of Laredo
          Comprehensive Land Use Plan to the Planning and Zoning
          Commission and requiring said amendments to be brought back
          before the City Council no later than September 15, 1997, in
          accordance with Article IX, Section 9.03 of the Charter of
          the City of Laredo.

          Motion to approve.

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

      39. Motion to (1) accept the Webb County Appraisal District
          Property Appraisal Roll, (2) accept the Effective Tax Rate
          Calculation, (3) setting a Public Hearing for August 25,
          1997, to adopt the proposed Tax Year 1997 tax rate, and (4)
          authorizing the Tax Assessor/Collector to begin publication
          of notices.

          Motion to approve.

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

  IX.  CITY MANAGER'S REPORT

      40. Discussion and possible action regarding implementing Section
          4, of the Interlocal Agreement between the City of Laredo and
          the County of Webb for the provision of fire protection,
          emergency medical and rescue services for all unincorporated
          areas of the County outside the incorporated limits of the
          City as it relates the terms of this section. Section 4
          provides that a 365 day notice be given to re-negotiate or
          cancel said agreement.

          Motion to approve.

          Moved : Cm. Bruni
          Second: Cm. Guerra
          For:  6                       Against:  0         Abstain:  0
          Mayor Protem Perez and Cm. Casso not present.

      41. Authorize the City Manager to proceed with the permanent
          closure of the 1100 Block of Zaragoza Street. This section of
          street, between Convent Avenue and Flores Avenue, has been
          temporarily closed since March 12, 1997 when Bridge I was
          closed to vehicular traffic for emergency repairs.  The
          permanent closure of Zaragoza Street is being recommended to
          remove traffic backups that occur in the San Agustin Historic
          District by prohibiting access to Bridge I from Zaragoza
          Street, to reduce vehicular and pedestrian conflicts at the
          intersection of Convent Avenue/Zaragoza Street, and to
          improve pedestrian access to Bridge I.

          Motion to proceed with the permanent closure of the 1100
          block of Zaragoza Street.

          Moved : Cw. Moreno
          Second: Cm. Guerra
          For:  6                       Against:  0         Abstain:  0
          Mayor Protem Perez and Cm. Casso not present.

      42. Requesting the City Council conduct an evaluation of
          performance of the City Manager as per Section 6 of the
          Employment Agreement between the City of Laredo and Mr.
          Florencio Pena, III, with possible Executive Session pursuant
          to Section 551.074 of the Texas Government Code to deliberate
          said evaluation.

          Motion to go into Executive Session pursuant to Section
          551.074 of the Texas Government Code to deliberate said
          evaluation.

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

          After executive session Mayor Ramirez announced that no
          formal action was taken.

          Anthony Stahl, from the Fire Department Local 1390, wants
          City Council to be aware of the problems they have had with
          Mr. Pena in regards to their contract.  He said that most
          recently was this weekend when Mr. Pena went public with the
          news media about the Assistant Fire Chief's position.  He
          wants to know if the councilmembers knew of the Assistant
          Fire Chief's position and if it was in the contract?

          Mayor Ramirez stated all he knows from its administration if
          it is not governed by the agreement.

          Mr. Stahl stated that under their contract the Assistant Fire
          Chief's position is covered under their contract, they have
          90 days to fill the position.  The contract stipulates that
          only the Fire Chief can fill that position and it is covered
          by federal law.  Right now they don't have an Assistant Fire
          Chief.  They just want to make sure that the communication
          between the City Manager, City Council, and Fire Fighters are
          straight.  He added that on previous years it was mentioned
          about 19 firefighters, the bond election was in 1993 and
          since then nothing has been done, it has been four years and
          all the other projects are being done right now or have been
          finished and he feels they are still behind the times.  He
          wants clarification on the Assistant Fire Chief's position.
          He thinks there is a big communication gap, it hasn't been
          there, and does not think they have to come before City
          Council because this are things that should be taken care by
          the City Manager.

          Fernando Alarcon, President of the Union Association, stated
          that the Fire Chief shall have the right to appoint the
          position of Assistant Chief, the appointee shall be a member
          of the of the Laredo Fire Department who shall have a minimum
          of five years in the classified service, and it is under
          Article 6.  Under Article 14, it says he is under the
          pay scale, an Assistant Fire Chief shall receive no less than
          15% more than the Deputy Chief or the Fire Marshall with over
          30 months, and shall have equally enjoy the other benefits
          provided by this contract.  He added this contract is backed
          up by a federal law and this position needs to be filled
          according to civil service within 90 days.  It came to their
          attention that this issue is in the budget, that they want to
          eliminate this position, and that would be violating the
          contract, and they are going to go ahead and fight for this
          position because it's a complete violation to their contract.
          They feel that under their union they have not been dealt
          right when the county negotiations were being done.  The city
          is contracting the fire department, under this contract it
          stipulates that they deal with the city only and he feels it
          is not right for them not to be part of the negotiations when
          they are subcontracted.  He made it known to Mr. Pena that it
          is a violation of this contract while the negotiations were
          ongoing with County, they mentioned to him that they must be
          part of the negotiations.

          Mr. Steve Landin, member of the Firefighters Association,
          echoed what Mr. Stahl and Mr. Alarcon have said, added it is
          a position in the contract, negotiated previously and
          emphasized that they have had problems with Mr. Pena since he
          was appointed and want to see if they can work with somebody
          because the open door policy is not there.

          Florencio Pea, Interim City Manager, stated that manning of
          the Fire Department and Police is a basic responsibility of
          the City Council.  It is a management right that is spared
          down in contract.  They will review the contract and make
          certain that there is no violation.  He added that this is
          the first time he heard of this concern, that there was a
          provision in the contract, they will look at the contract to
          see if there is anything there, he is just not familiar with
          any contract that is negotiated for fire or police that
          doesn't give a sole responsibility for City Council to set
          its manning, its level of positions it wants in an
          organization.  In regards to his open door policy, it is an
          open door policy, and he feels a little tick on the back that
          he waited to come to this meeting to bring this issue to his
          attention.  He hopes that they do deal with their chief first
          and that the chief lets him know.  He intends to work fully
          with the Fire Department at council's direction and he knows
          that the position of Assistant Fire Chief position is a
          critical position.  His door is open and willing to discuss
          matters before council, he will look at the provision of the
          contract to make sure there is no violation there.

          Cw. Montalvo stated that the Fire Chief is the one that
          should come to the City Manager and do whatever dealings have
          to be made.  The union comes before the council when they are
          negotiating the contracts.  They have to talk to their Fire
          Chief in regards to their guidelines and rules.

          Jaime Flores, City Attorney, stated that Legal will review it
          and will bring back a report to council.

      43. Request for Executive Session pursuant to Section 551.071 of
          the Texas Government Code to discuss pending litigation to-
          wit: City of Laredo vs. Texas Mexican Railway Company and
          Missouri Pacific Railroad Company, d.b.a. Union Pacific
          Railroad Company, Cause No. 96CVQ-00193-D2, in the 111th
          Judicial District Court of Webb County, Texas.

          Motion to go into Executive Session pursuant to Section
          551.071 of the Texas Government Code to discuss pending
          litigation to-wit: City of Laredo vs. Texas Mexican Railway
          Company and Missouri Pacific Railroad Company, d.b.a.  Union
          Pacific Railroad Company, Cause No. 96CVQ-00193-D2, in the
          111th Judicial District Court of Webb County, Texas.

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

          After executive session Mayor Ramirez announced that no
          formal action was taken.

   X.  COMMUNICATIONS

          a. Mr. Tom Waite, Ex-Vice President of the Laredo Transporta-
             tion Association, spoke on the traffic conditions in
             northwest Laredo.  He stated that he would like the City
             address the problems at IH-35 and Milo Interchange.  There
             are some corners that can be addressed for a short term
             solution.  He said that the State of Texas has money to do
             the corners, but that the city needs to annex those
             corners for right-of-way purposes.

             Mayor Ramirez stated that we are in the process of
             preparing documentation to address that whole area.

             Florencio Pea, Interim City Manager, stated that staff
             has made a request to the landowner to deed over the land
             and that they are in negotiations.

          b. Mr. Ron Anderson, from TG108, Inc., addressed the council
             for assistance in acquiring the Laredo Manor Apartments.
             He stated that the acquisition will be by an non-profit
             organization which will be acquiring the property.  He
             asked for council support in addressing the drainage
             problem.


  XI.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

    A.  Requests by Councilmember Jose R. Perez, Jr.

       1. Discussion and possible action regarding the naming of a
          Police Chief, and additionally requesting that the City
          Manager submit the name(s) of individuals to be considered
          for the position of Police Chief.

          Florencio Pea, Interim City Manager, stated that he had
          interviewed four candidates which were: Richard Clark,
          Agustin Dovalina, Steven Garza, and E.J. Laurel.  His
          recommendation at this time was E.J. Laurel.

          Motion to confirm the nomination of E.J. Laurel as Chief of
          Police.

          Moved : Cm. Guerra
          Second: Cm. Casso
          For:  3                       Against:  4         Abstain:  0
          Cm. Casso                     Cm. Perez
          Cm. Guerra                    Cm. Bruni
          Cm. Alvarado                  Cm. Valdez
                                        Cw. Montalvo
          Cw. Moreno was not present.

          Motion to confirm the nomination of Agustin Dovalina as Chief
          of Police.

          Moved : Cm. Perez
          Second: Cw. Montalvo
          For:  5                       Against:  2         Abstain:  0
          Cm. Perez                     Cm. Casso
          Cm. Bruni                     Cm. Guerra
          Cw. Moreno
          Cm. Valdez
          Cw. Montalvo

    B.  Requests by Councilmember Louis H. Bruni

       1. Presentation by Efrain Gutierrez regarding the use of the
          public access channel.

          Mr. Gutierrez stated that he is not being given the
          opportunity to have access to Access Channel staff and
          equipment.  He added that there is little training to the
          public on the use of public access equipment and that they
          are not allowed to use the expensive equipment, but rather
          they must rely on inexpensive cameras.  He continued by
          stating that he has been discriminated against for the
          time use of the equipment.

          Mayor Ramirez stated that the equipment is not equipment that
          was bought recently, it was part of the approved bond issue
          when they first constructed it.  It is not only for the City
          Council, but for the Cable Commission Meetings, Planning &
          Zoning Meetings, Workshops, etc.  We have been very limited
          in the resources that we've had available to the general
          public through our Public Access because of the facilities
          that we currently occupy.  He added that as a result of the
          agreements that have taken place with Time Warner they will
          be constructing a complete studio facility and capable of
          allowing greater access to the general public for the use of
          the public access equipment.  He encouraged the general
          public that is interested in accessing the equipment to come
          and apply for the use of the equipment, added that
          regrettably we are limited in the money we have available.

          Mr. Gutierrez stated what bothers him is the lack of
          creativity and the lack of training being provided which he
          thinks are serious and should be addressed.

          Larry Dovalina, Telecommunications Officer, stated that some
          of the concerns that Mr. Gutierrez raised, have also been
          raised at prior telecommunications meetings.  They are trying
          to work and see if they can spur activity/creativity within
          the city to have additional producers.  He welcomed Mr.
          Gutierrez's support and would like to have him join the PAC
          Director in trying to come up with some kind of approach to
          be able address those problems.  There are problems that they
          wish they could resolve and make the climate as suitable as
          possible for people to come in and use the facilities.  One
          of the reasons they pushed for the new building and the items
          related to the equipment and settlement were precisely for
          that reason.  They felt that there was a need for additional
          facilities, they will be happy to have Mr. Gutierrez look at
          the plans.  One of the studios is aimed directly at community
          production and they other for governmental.  He added that
          Public Access as our franchise is written, not only deals
          with Public Access for the public but it also involves
          educational access, governmental access, and religious access
          which is one of the few franchises in the nation who in fact
          has a religious access schedule.  They decided at an early
          stage as to how to deal with those access questions, they
          formulated the franchise with that intent.  The ordinance
          that puts together the public access and the operation of
          public access were all done with certain ideas in mind.
          There is a process for people who have concerns, complaints,
          comments, about how Public Access operates for them to
          follow.  There is a process for when a program gets rejected,
          it is not within the goal of Public Access to censor any kind
          of programming.  They have a set of rules that have been
          revised that can be changed or amended, and he welcomes input
          from any citizen.

          Mr. Bruce Miller Earl, Chairman of the Telecommunications
          Commission, stated that the present equipment is not adequate
          for field training.  He welcomes Mr. Gutierrez's input and he
          will address his concern at the future meetings of the Tele-
          communications Commission.

    C.  Requests by Councilmember Cecilia May Moreno

       1. Status report regarding the painting of the Lyon Street water
          tanks.

          Fernando Roman, Utilities Director, reported that they are in
          the final stages of the repairs and that he has not been
          furnished with a design by Nixon High School Administration
          and that he will contact them again for the status on the
          design.

    D.  Requests by Councilmember Joe A. Guerra

       1. Presentation by Ale Arreguin regarding the elimination of the
          building inspectors from the Fiscal Year 1997-1998 Annual
          Budget thereby saving millions of dollars for the city.

          Mr. Arreguin spoke on the elimination of building inspectors
          as his personal recommendation and gave the following report:

          a.  A new idea that would eliminate the building inspectors
              from the city budget and it would save the city about
              half a million dollars a year, and the service it
              provides of inspecting construction will not be
              eliminated.

          b.  Who benefits

              1. The city and taxpayers save about half a million
                 dollars a years every year, and it still will be able
                 provide the same service, but with more quality and
                 faster service to the property owners who will be
                 constructing.

              2. The city will be up a million dollars.

              3. The city can reduce the building permit fees by half,
                 thus the property owners who are going to built will
                 save over half a million dollars a year.

              4. The property owners benefit:
                 a. Permits fees reduced
                 b. Better quality and quantity service of inspections
                 c. More inspectors added at no cost to city
                 d. Inspectors will be responsible and liable.

              5. The building Inspectors benefits:
                 a. Stand to double their current income
                 b. Will be licenses by the city
                 c. City will maintain a rotating system for fair
                    practice between inspectors, and have a codes of
                    ethics, rules and procedures that they will follow.
                    City will also set fees that they can charge for
                    each inspection.
                 d. Will be able to deduct all his expenses
                 e. Will provide weekend services
                 f. Will be responsible and liable
                 g. Will answer to a committee on any major violations
                    or disputes concerning their rules, procedures and
                    policies.

          Mr. Arreguin provided the council with an organizational
          chart list and existing building code expenses on labor cost,
          vehicle cost, and office costs.

          Cm. Guerra stated that we should take Mr. Arreguin's
          comments and suggestions under advicement and that he gets
          together with the Building Director, CD Director, City
          Attorney, City Manager, and any other department that may be
          involved.

          Jaime Flores, City Attorney, stated that there are many valid
          ideas on what Mr. Arreguin is proposing, there are many
          points and discussions that have to take place before
          something such as this can be implemented.

          Cm. Guerra suggested this idea be pursued at staff level.

          Benny Salinas, Building Director, stated that the plumbing
          inspectors must work for a municipality in order to get a
          license.

          Mayor Ramirez state that they will take Cm. Guerra's
          suggestion, which is to take it under advicement and have Mr.
          Pena, the City Attorney, and the Building Inspector review
          the recommendations to see if it is something that is
          possible.

    E.  Requests by Councilmember Mario G. Alvarado

       1. Request to traffic department staff to work with the Texas
          Department of Transportation on placing street name signs
          going into the Industrial Parks on Mines Road with possible
          action.

          Motion to instruct staff to work with the Texas Department of
          Transportation on placing street name signs going into the
          Industrial Parks on Mines Road.

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

    F.  Requests by Councilmember Consuelo "Chelo" Montalvo

       1. Instructing staff to meet with the Hamilton Hotel developers
          and aid them in preparing a Section 108 Loan package and
          bring back to the City Council for approval.

          Cw. Montalvo stated that she had received the package, but
          needs more information from staff.

          Motion to instruct staff to provide Cw. Montalvo with the
          necessary information.

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

       2. Nominating Roberto Luis Trevino, 1422 Wingfoot, to be my
          representative on the Airport Advisory Board.

          Motion to approve Roberto Luis Trevino as the Airport
          Advisory Board.

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

 XII.  PUBLIC HEARINGS

      45. Public hearing regarding an ordinance amending the Capital
          Grant TX-90-X374 budget line item Bus Purchases; from
          $900,000.00, to $983,481.00; appropriating unused FY 95-96
          federal operating funds in the amount of $66,785.00 and
          applying previously appropriated transit sales tax funds for
          bus purchases, in the amount of $16,696.00, to serve as the
          20% match.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Capital Grant TX-90-X374 budget line
          item Bus Purchases; from $900,000.00 to $983,481.00;
          appropriating unused FY 95-96 federal operating funds in the
          amount of $66,785.00 and applying previously appropriated
          transit sales tax funds for bus purchases, in the amount of
          $16,696.00, to serve as the 20% match.

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

          Ordinance Introduction: City Council

XIII.  RECESS AND CONVENE AS THE MASS TRANSIT BOARD

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

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

      46. 97-RT-086 Resolution authorizing the City Manager to accept
                    and execute a grant from the Texas Department of
                    Transportation for the State Urbanized
                    Transportation Fund for the 1998-99 biennium in the
                    amount of $909,887.00; and providing for grant
                    funds to be deposited in the Transit Department
                    Accounts.

                    Motion to approve.

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

      47. Motion to authorize staff to sell surplus vehicles,
          miscellaneous bus parts, and steel bus wheels to the highest
          bidder.  Said vehicles have exhausted their useful lives; and
          parts are obsolete.  All items are being offered "as is" with
          no implied or express warranties or claims of serviceability.
                     Model           Unit
                   1982 Gillig        8216
                   1982 Gillig        8221 1982 Gillig        8224
                   1982 Gillig        8215 1982 Gillig        8220

          Motion to approve.

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

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

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



M97-R-26(S)                 SUPPLEMENTAL                AUGUST 18, 1997

IX.  CITY MANAGER'S REPORT

     A. Discussion and possible action regarding the assessment of the
        U.S. Marine Corps Corp-of-Engineers Capital Improvement
        Projects.

        Florencio Pea, Interim City Manager, provided the following
        list of projects for council review:

        Zacate Creek Linear Park
        Father McNaboe Park
        N.E. Hillside Park Pedestrian Bridge
        Zacate Creek/Erosion Control
        Dryden/Optimist Park Improvements
        International Blvd. Exercise Trail
        Century City Park
        Tinaja/Chacan Creek Pilot Channel
        Villa del Sol/Cheyenne Park
        Airport Perimeter Road Construction
        Relocation of Airport Security Fencing
        Townlake Drainage Improvements
        Regional Fire Training Facility
        Chaparral Channel Improvements
        Cemetery Improvements
        River Parking Redevelopment Project
        Upper Zacate Creek Detention Pond

        Motion to accept the list for review.

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

XIV.  ADJOURNMENT

      Motion to adjourn.    Time: 8:35 p.m.

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

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 27
ARE TRUE, COMPLETE, AND CORRECT PROCEEDING OF THE REGULAR CITY COUNCIL
MEETING HELD ON AUGUST 18, 1997.  A CERTIFIED COPY IS ON FILE AT THE
CITY SECRETARY'S OFFICE.



                                  ________________________________
                                      GUSTAVO GUEVARA, JR.
                                         CITY SECRETARY