CITY OF LAREDO
                          CITY COUNCIL MEETING

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

                                 MINUTES


      M-97-R-30                                  SEPTEMBER 2, 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, JR.,   COUNCILMEMBER, DISTRICT I
       LOUIS H. BRUNI,              "     , DISTRICT II
       ALFONSO I. "PONCHO" CASSO,   "     , DISTRICT III
       CECILIA MAY MORENO,          "     , DISTRICT IV
       ELISEO VALDEZ, JR.,          "     , DISTRICT V
       JOE A. GUERRA,               "     , DISTRICT VI
       MARIO G. ALVARADO,           "     , DISTRICT VII
       CONSUELO "CHELO" MONTALVO,   "     , DISTRICT VIII
       GUSTAVO GUEVARA, JR., CITY SECRETARY
       FLORENCIO PENA, III   CITY MANAGER
       JAIME L. FLORES,      CITY ATTORNEY

  IV.  APPROVAL OF MINUTES

       2. City Council Meeting of August 4, 1997
          Budget Workshop of August 8, 1997
          Budget Workshop of August 9, 1997
          City Council Meeting of August 14, 1997

          Motion to approve.

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

          Cm. Casso joined the meeting at 5:40 p.m.

   V.  INTRODUCTORY ORDINANCES

       3. Authorizing the City Manager to execute a lease with Aircraft Parts
          and Development Corporation, a Texas Corporation, for approximately
          5,888 square feet constituting Building No.  1307 at the Laredo
          International Airport.
          1. Lease term is for one (1) year commencing
             August 1, 1997 and ending July 31, 1998 and may be extended for
             four (4) terms of one (1) year each ending July 31, 1999, July 31,
             2000,
             July 31, 2001, and July 31, 2002. Lease may be terminated upon
             giving 90 days written notice.
          2. Monthly rent shall be $1,500.00 and will be adjusted annually
             during the primary and extension terms of this lease according to
             changes in the Consumer Price Index.

          Ordinance Introduction: City Council

       4. Authorizing the City Manager to execute a lease with L.A.  Ventures,
          Inc., for approximately 289 square of office space constituting Suite
          No. 8 of Building No. S-1 located at 1718 E. Calton Road.
          1. Lease term is for one (1) year commencing May 1, 1997, and ending
             April 30, 1998, and will be extended for one (1) year ending April
             30, 1999.  Lease may be terminated by either party upon giving a
             sixty (60) day written notice.  2. Monthly rent shall be $333.00
             and will be adjusted annually during the primary and extension term
             of this lease according to changes in the Consumer Price Index.

          Ordinance Introduction: City Council

       5. Authorizing the City Manager to execute a lease with Comision Mexico-
          Americana Para La Eradicacion Del Gusano Barrenador (U.S.D.A.
          Screwworm Program) for approximately 19,765 square feet constituting
          Building No. 1308 and approximately 10,000 square feet of vehicle
          parking area located at 4305 Maher Avenue.
          1. Lease term is for five (5) years commencing
             June 1, 1997, and ending May 31, 2002. Lease may be

             terminated by either party upon giving one hundred twenty (120)
             days written notice.
          2. Monthly rent shall be $4,950.00 and will be adjusted annually
             according to changes in the Consumer Price Index.

          Ordinance Introduction: City Council

       6. Authorizing the City Manager to execute a lease with Juan Vargas d/b/a
          The Education Center for approximately 4,308 square feet constituting
          Building No. 1169 located at 4407 Foster Avenue, and used to house a
          day care facility.
          1. Lease term is for one (1) year commencing August 1, 1997, and
             ending July 31, 1998.
          2. Monthly rent shall be $800.00. Lease may be terminated upon giving
             120 days written notice.

          Ordinance Introduction: City Council

       7. Authorizing the City Manager to execute a lease with All American
          Events, Inc., a Florida corporation, for approximately 4.0 acres of
          land located on the northeast corner of Hillside Road and Thomas
          Avenue at the Laredo International Airport.
          1. Lease term is for two (2) days commencing September 20, 1997, and
             ending September 21, 1997.
          2. Daily rent shall be $750.00. Premises will be used to host a circus
             and proceeds will be used for charitable causes.  The Laredo Police
             Officers Associations is sponsoring this circus.

          Ordinance Introduction: City Council

       8. Authorizing the City Manager to execute a lease with Carlos Madrid
          d/b/a Madrid Printing Equipment for approximately 8,466 square feet
          constituting Building #464 locate at 1705 E. Hillside Road and to be
          used for a printing equipment shop.
          1. Lease term is for five (5) years commencing August 1, 1997 and
             ending July 31, 2002 and may be extended for one (1) term of five
             (5) years ending July 31, 2007.
          2. Monthly rent shall be $1,270.00 and will be adjusted annually
             during the primary and extension term of this lease.
          In an effort to provide additional land for development, Airport Staff
          wishes to demolish Building #1108 presently occupied by Mr.  Madrid
          and, thus, relocate his business to Building #464.

          Ordinance Introduction: City Council

       9. Amending Chapter 14, Garbage, Trash, And Refuse Article I, Section 14-
          4.1 (D), (7) rates, of the code of ordinance of the City of Laredo, in
          order to allow for the collection of landfill fees for disposal of
          garbage at the City's Landfill site by private individuals who are
          non-residents of the City of Laredo on Sundays, providing for
          publication and effective date.

          Ordinance Introduction: City Council

          Mr. Jorge Benavides, City Administrator for the City of Rio Bravo,
          requested from council the waiving of the $60 per ton commercial fee
          for outside city limits and that they be granted instead the $30 per
          ton fee which is the same as for commercial inside the city limits.

          Mayor Ramirez asked that staff look at charging the commercial rate,
          plus all the mandated fees that are being charged.  That the fees be
          charged in addition to the commercial rate as a possible mediated
          rates for incorporated cities within Webb County.

      10. Amending Chapter 32, of the Code of Ordinances entitles vehicles for
          hire, by creating a new Article V, entitled shuttle-van operations,
          providing for restrictions in general, statement of policy,
          administration and enforcement, definitions, operating enforcement,
          definitions, operating authority, licensing, holder and driver
          regulations, fares, insurance coverage, vehicle and equipment
          requirements, providing for publication and effective date.

          Ordinance Introduction: City Council

      11. Authorizing the City Manager to grant a license to AT&T Corporation, a
          New York Corporation, for the use of a conduit on Juarez Lincoln
          International Bridge,. License term is for five years commencing on
          September XX, 1997 and ending September XX, 2002. Annual rent shall be
          $5,000.00 and will be adjusted annually during the term of this
          license as provided for in said license plus a fee of $4.00 a square
          foot for the occupation of the City of Laredo right-of-way on Iturbide
          Street.

          Ordinance Introduction: City Council


  VI.  FINAL READINGS

       Motion to waive the final reading of ordinances #97-O-195, #97-O-196,
       #97-O-197, #97-O-198, #97-O-199, #97-O-200, #97-O-201, #97-O-202, #97-O-
       203, #97-O-204, and #97-0-205.

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

      12. 97-O-195  Authorizing the City Manager to execute a partial release of
                    covenant for the Southgate Subdivision, Unit II-A, Phase II
                    Planned Unit Development.  This release will allow the
                    developer to proceed with the sale of lots in this
                    development.
                    (City Council)

                    Motion to approve Ordinance #97-O-195.

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

      13. 97-O-196  Ordinance authorizing the issuance of a Special Use Permit
                    for sand an gravel sales/storage, on Lot 7, Block 2003,
                    South Laredo Industrial Park, located at 2010 Rotary Street;
                    providing for publication and effective date.  (Jose R.
                    Perez)

                    Motion to approve Ordinance #97-O-196.

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

      14. 97-O-197  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning Lots 1, 2 and 3, Block 204, Eastern
                    Division, located at 1502 S.  Zapata Hwy., from B-3
                    (Community Business District) to B-4 (Highway Commercial
                    District); providing for publication and effective date.
                    (Jose R. Perez)

                    Motion to approve Ordinance #97-O-197.

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

      15. 97-O-198  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning Lot 6, Block 1597, Eastern Division,
                    located at 2606 Cross Street, from R-2 (Multi-Family
                    Residential District) to R-3 (Mixed Residential District).
                    (Jose R. Perez)

                    Motion to approve Ordinance #97-O-198.

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

      16. 97-O-199  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning Lot 4, Block 1750, Eastern Division,
                    located at 2919 Cross Street, from R-2 (Multi-Family
                    Residential District) to R-3 (Mixed Residential District).
                    (Jose R. Perez)

                    Motion to approve Ordinance #97-O-199.

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

      17. 97-O-200  Ordinance authorizing the issuance of a Special Use Permit
                    for sand an gravel sales/storage, on Lot 1, Block 1,
                    Northeast Complex, located at 1319 Muller Road; providing
                    for publication and effective date.  (Louis H. Bruni)

                    Motion to approve Ordinance #97-O-200.

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

      18. 97-O-201  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning Lots 7 and 8, Block 697, Eastern
                    Division, located at 1219 Chihuahua Street, from R-O
                    (Residential/Office District) to B-1 (Limited Business
                    District).  Providing for publication and effective date.
                    (Alfonso Casso)

                    Motion to approve Ordinance #97-O-201.

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

      19. 97-O-202  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning all of Block 53, Calton Gardens
                    Subdivision, located at 5400 Springfield Avenue, from R-3
                    (Mixed Residential District) to B-3 (Community Business
                    District).  Providing for publication and effective date.
                    (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-202.

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

      20. 97-O-203  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning Lots 5 and 6, Block 1067, Western
                    Division, located at 1020 Tacuba Street, from R-3 (Mixed
                    Residential District) to B-1 (Limited Business District).
                    Providing for publication and effective date. (Mario G.
                    Alvarado)

                    Motion to approve Ordinance #97-O-203.

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

      21. 97-O-204  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning 1.8117 acres, as further described by
                    metes and bounds, located on the west side of Remington
                    Drive, south of US 59, from R-1 (Single Family Residential
                    District) and B-3 (Community Business District) to R-1A
                    (Single Family Reduced Area District) Planned Unit
                    Development; providing for publication and effective date.
                    (Louis H. Bruni)

                    Motion to approve Ordinance #97-O-204.

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

      22. 97-O-205  Ordinance amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning 12.5 acres, as further described by metes
                    and bounds, located south of Killam Industrial Boulevard,
                    west of FM 1472, from R-1A (Single Family Reduced Area
                    District) to R-1A (Single Family Reduced Area District),
                    Planned Unit Development.  Providing for publication and
                    effective date. (Mario G. Alvarado)

                    Motion to approve Ordinance #97-O-205.

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

 VII.  RESOLUTIONS

      23. 97-R-089  Authorizing the City Manager to utilize $63,000.00, worth of
                    proceeds from the City's combination Tax and Revenue
                    Certificates of Obligation, Series 1997-B to purchase an
                    emergency replacement Emergency Medical Services Unit
                    (Ambulance) for the City's Fire Department.

                    Motion to approve Resolution #97-R-089.

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

      24. 97-R-090  Accepting the donation of the south 1/2 of Block D and the
                    south 1/2 of Block E, W.D., from the heirs of Mr. Justo
                    Sabor Penn and Mr. Amadee Ligarde; provided however, that
                    any future use of said properties be for the construction of
                    a park or similar recreational-type facility. The donation
                    of the above-described property is also to be made on the
                    express condition that a dedication plaque honoring these
                    two fine individuals be erected at a strategic point upon
                    the proposed park or recreational-type facility. Said
                    properties being situated on the river vega between San
                    Francisco and San Enrique Avenues; and being further
                    described by a copy of the City of Laredo Plat.

                    Motion to approve Resolution #97-R-090.

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


      25. 97-R-091  Authorizing the City Manager to submit an application o the
                    South Texas Development Council for a grant in the amount of
                    $71,218.00 with the City designating $9,000.00 in matching
                    funds and for a total of $80,218.00 to implement a Household
                    Hazardous Waste Collection and Proper Disposal Program (HHWC
                    & PDP) for the Spring 1998.

                    Motion to approve Resolution #97-R-091.

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

      26. 97-R-092  Supporting Laredo Hamilton, L.P.'S efforts to convert the
                    Hamilton Hotel to low income elderly housing and authorizing
                    the City Manager, in further support of this project, to
                    apply to the U.S. Department of Housing and Urban
                    Development for a Section 108 Loan of up to $1,550,000.00,
                    on behalf of Hamilton, L.P. subject to negotiations and
                    underwriting guidelines as may be beneficial to the City.

                    Steve Snow presented his version of a resolution of support
                    for their review and consideration.

                    Erasmo Villarreal, Asst. Community Development Director,
                    stated that the only difference between staff's and Mr.
                    Snow's resolution is item 11 on the payments of principal
                    and interest.  That basically what they are asking council
                    under this resolution is that there is a deferred period of
                    10 years with no payment, and that the loan be a 30-year
                    loan.  He added that they were looking at section 108
                    guidelines and they found that the maximum is 20 years.
                    They explained this to Mr. Snow and explained that they will
                    probably have to look at a 20-year loan under the Section
                    108 criteria.  He said that another thing that council has
                    to be aware of, is that the section 108 is a loan guaranteed
                    program and somebody is going to have to pay back the loan
                    for a deferred period one way or the other, either the city
                    through the CD Block Grant for those 10 years or the general
                    fund.  A payment does have to be made back annually to HUD.
                    He concluded by saying that the 10 year deferred is
                    something that can be worked out.

                    Mr. Milton Saenz sponsor and Co-developer of
                    the Hamilton Project stated they have negotiated and
                    completed various loans of this type and are familiar with
                    the structure of these type of loans.  They are proposing a
                    3% interest rate, rather than a non-interest loan.  He urged
                    that they maintain the terms of loan as requested, because
                    it will assist them in getting the low income housing tax
                    credits.

                    Florencio Pea, Interim City Manager, stated that in essence
                    this project is an approval in concept and is still subject
                    to negotiations.  He asked that if council is interested in
                    this project and want staff to explore the possible 108 and
                    possible CDBG.  He wants direction from council if they are
                    interested in any way in using funds other than those
                    federal funds such as the general fund which if there is a
                    deferred payment clause in this contract, general fund
                    monies would have to in some form or another be obligated.
                    He concluded by saying that they would need a financial
                    advisor to come to look at this and see what combination of
                    funds would work.

                    Mayor Ramirez wants HOME monies be included as another
                    possible source.

                    Motion to approve Resolution #97-R-092.

                    Moved : Cm. Alvarado
                    Second: Cw. Montalvo
                    The second was withdrawn and motion died for lack of another
                    second.

                    Mayor Ramirez said if they put in there that it is subject
                    to final approval and that it include other funding source
                    (Community Block Grant or HOME monies) as additional revenue
                    streams for this project, the resolution would be fine.  He
                    clarified that they are going to add two more conditions.
                    That other funding sources such as Community Development
                    Block Grants or Home Partnership monies be looked at as
                    possible sources of revenue for this project.  On number
                    15th, that all items stipulated above are subject to
                    approval by the different agencies.


                    Motion to approve the resolution as amended to include
                    subject to final approval; addition of item #14 to include
                    other funding sources such as CDBG and HOME Partnership
                    monies; and add item #15 that all items are subject to final
                    approval by the different agencies.

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

      27. 97-R-093  Requesting legislative Assistance to preserve and protect
                    the property of its' citizens and taxpayers that are held in
                    trust by Texas Cities, by protecting the citizens right to
                    charge and receive just compensation for the use of a
                    municipality's rights-of-way by charging the fair market
                    rental value for the use of the public rights-of-way and
                    advocating that the citizens right to receive just
                    compensation for the use of its rights-of-way and the
                    property interests of Texas citizens be the guiding
                    consideration in the formulation of an interim study to
                    analyze existing agreements between cities and entities
                    regarding the use of public rights-of-way, and the payment
                    of fair market rental values for its use.

                    Motion to approve Resolution #97-R-093.

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


VIII.  MOTIONS

      28. Approve the plans and specifications for the remodeling of the Pacific
          Southwest Bank located at 2114 Saunders Street.  Under the lease
          agreement between City of Laredo, as Lessor, and Pacific Southwest
          Bank, as Lessee, Lessor's approval of the plans and specifications is
          required before Lessee commences any modifications to the improvements
          located on Airport leased premises.

          Motion to approve.

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

      29. Authorization to advertise for Request for Proposals (RFP's) to
          provide Professional Engineering and/or Surveying Services for Cells
          11 and 12 of the City of Laredo Type I Landfill located on Texas
          Highway 359 and to include engineering design, preparation of plans
          and specifications with cost estimates, construction quality
          assurance, boundary and topographic surveying as required for
          compliance with the Texas Natural Resource Conservation Commission's
          Subtitle D Requirements of 30 TAC 330 Municipal Solid Waste
          Regulations.  Funding is available in the Landfill Fund Improvements
          Other Than Buildings.

          Motion to approve.

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

      30. Authorization to advertise for Request for Proposals (RFP's) from area
          professional firms interested in providing consultant services to
          include preparation of Request for Proposals for the Toll System
          Upgrade and Electronic Toll Collection Implementation at all three of
          the City of Laredo International Bridges. Funding is available in the
          Bridge System Toll Plaza Improvements.

          Motion to approve.

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

      31. Approval of bid specifications and authorization to advertise for bids
          for laboratory clinical testing services for the City of Laredo Health
          Department.  A reference laboratory is contracted to provide
          laboratory clinical testing services which are not provided in-house
          or by the Bureau of Laboratories of the Texas Department of Health. A
          tentative bid award is scheduled for October 6, 1997.

          Motion to approve.


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

      32. Approval of bid specifications and authorization to advertise for bids
          for janitorial services at five building sites occupied by the WIC
          Program of the City of Laredo Health Department. Bids will also be
          requested for janitorial services for the four City of Laredo
          recreation centers as well as the Santo Nio Branch Library. The term
          of the agreement shall be for a two year period beginning October 1,
          1997, through September 30, 1999. A tentative bid award is scheduled
          for October 6, 1997.

          Motion to approve.

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

      33. Approval to solicit new bid proposals from qualified Laboratories to
          perform analytical testing for Soil samples in compliance with the
          Resources Conservation Recovery Act (RCRA) for the City of Laredo's
          Brownfields site located at the Tex/Mex Railway Yard.

          Motion to approve.

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

      34. Authorizing the issuance of Request for Qualifications for the design
          of plans and specifications for the addition of a Belt Filter Press at
          the Southside Wastewater Treatment Plan.  The Belt Filter Press will
          dry wastewater sludge in preparation for its final disposal at the
          sanitary landfill.

          Motion to approve.

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

      35. Award of contract to the SOLE BIDDER, Montgomery Watson, Pasadena,
          California, in the amount of $47,800.00, for providing EPA Information
          Collection Rule (ICR) professional testing and support services for
          the Utilities Department.  The City is required to complete an
          eighteen month monitoring requirement for sample collection and
          analysis of various chemical and micro-biological parameters at the
          water treatment plant and distribution system. Bid notices were sent
          to six potential vendors however, only Montgomery Watson submitted a
          bid proposal. This company is familiar with the ICR chemical testing
          program. Funding is available in Utilities Department - Construction
          Projects - Information Collection Rule.

          Motion to approve.

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

      36. Award of contract to the LOW BIDDER, Nogalitos Janitorial Supplies,
          Laredo, Texas, in the amount of $18,459.74, for the purchase of
          equipment for the new passenger terminal. The equipment includes
          vacuum cleaners, buffers, pressure washers, and other janitorial
          equipment needed for the maintenance operations. A total of three bids
          were received for this purchase. Funding is available in Airport
          Department - Administration - Capital Outlay.

          Motion to approve.

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

      37. Award of contract to the LOW BIDDER MEETING SPECIFICATIONS,
          Underground Inc., Pearland, Texas, in the amount of $166,688.00, for
          the purchase of a combination vacuum/jet rodder truck for the
          Utilities Department - Wastewater Collection Division. This truck is
          used to clean wastewater basins and will replace an 1990 Ford truck
          with a Camel vacuum body. Delivery is expected within 120 days. A
          total of four bids were received for this purchase. Funding is
          available in Utilities Department - Wastewater Collection, Capital
          Outlay.

          Motion to approve.

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

      38. Award of professional services contract to Porras Engineering Company,
          Laredo, Texas, in an amount not to exceed $11,000.00, for the re-
          design of Orilla Avenue between Mann Road and Riverside Road (Carrillo
          Road), surveying, and preparation of plans and specifications in
          conjunction with the extension of the West Laredo Truck Route. Funding
          is available in the Capital Improvement Fund Paving Project 43
          Deferred Streets.

          Motion to approve.

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

      39. Award of a surveying contract to Howland Surveying Company, Inc.,
          Laredo, Texas, for an amount not to exceed $22,550.00, to provide
          boundary and topographic surveying, construction staking, and
          certification of the subgrade, HDPE panel layout with seams and
          repairs and the two-foot protective cover for Cells 9 and 10 at the
          City of Laredo Landfill located at U.S.  Highway 359. These services
          provide support for the engineering design, construction plans and
          specifications, construction quality assurance, and GCLER/FMLER
          Reports as required for compliance with Texas Natural Resource
          Conservation Commission's (TNRCC) Subtitle D Requirements of 30 TAC
          330 Municipal Solid Waste Regulations. Funding is available in the
          Landfill Fund Capital Outlay Improvements Other Than Buildings.

          Motion to approve.

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

      40. Award of an engineering contract to Rust Lichliter/Jameson, Houston,
          Texas, for an amount not to exceed $165,470.00, to provide
          professional engineering services for Cells No. 9 and No. 10 to
          include design, permit modification, preparation of construction plans
          and specifications with cost estimates, construction quality
          assurance, and GCLER/FMLER Reports as required for compliance with the
          Texas Natural Resource Conservation Commission's Subtitle D
          Requirements of 30 TAC 330 Municipal Solid Waste Regulations. Funding
          is available in the Landfill Improvements Other Than Building.


          Mr. Martin Vila, Regional Manager for Raba-Kistner, requested from
          council consideration of the bid as local bidders.  He stated that
          this job was going out of town when it can be done locally and they
          have the experience with other city jobs.  He added that the
          recommendation to council should be amended to specify that Raba-
          Kistner performed the construction quality assurance services for this
          particular project.

          Florencio Pea, Interim City Manager, read staff's recommendation as
          follows:

          "They did receive four submissions for consideration: Howland,
          Engineering, Raba-Kistner, Rust-Lichliter, and Naismith Engineering.
          The firm of Rust Lichliter/Jameson is being recommended for the award
          of this project because they are knowledgeable in solid waste and
          landfill.  They performed the engineering and CQA for cells 5 and 6 of
          the landfill in early 1996 and currently are performing the vertical
          expansion permit amendment for the entire landfill.  Their expertise
          in landfill design and CQA have been noticed by staff for cells 5 and
          6, particularly when the city received approval from TNRCC for the
          acceptance of the cells based on the submitted of the GCLER/FMLER
          Report submitted by the consultant.  They are in the process of
          handling our vertical expansion permit amendment."

          Motion that staff bring back recommendation to hire the firm of Raba-
          Kistner to perform the engineering study for cells 9 and 10 in order
          to spread the work among local firms and out of town firms, subject to
          negotiations.

          Moved : Cm. Bruni

          Motion was withdrawn.

          Mr. Pena stated that action cannot be taken on this item tonight other
          than what is posted in the agenda, but they would cancel the Request
          For Proposals if the council is interested in negotiating with this
          firm.

          Mr. Rogelio Rivera, City Engineer, stated they don't have RFP's for
          cell 11 and 12, but they can bring them back for the next council
          meeting.

          Motion to bring back item 40 as presented, but bring back
          recommendation of all four cells at one time, two cells

          separate (Cells 9 & 10) plus (Cells 11 & 12) and award all four cells
          on the 22nd.

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

      41. To approve and authorize the City Manager to enter into contract with
          the Laredo Affordable Housing Corporation, a nonprofit corporation, by
          allocating $2,435,590.00, of Home Investment Partnership Program
          (HOME) Grant and Program Income funds for the construction of 100
          affordable single family unit houses in South Laredo's Colonia Los
          Obispos Subdivision and 32 affordable single family unit houses in the
          Three Points Housing Development.

          Motion to approve.

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

      42. Authorizing the City Manager to amend the contract with Laboratory
          Corporation of America for the period beginning October 1, 1996,
          through September 30, 1997, for the provision of laboratory clinical
          testing services, increasing the maximum compensation allowed from
          $55,000 to $99,000.

          Motion to approve.

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

      43. Approval of change order no. 1, a decrease of $17,790.00, for the
          balance of quantities actually constructed in place, acceptance of the
          Repairs to the Tinaja Creek Concrete Channel Improvements between San
          Salvador and Pecan Street, and approval of final payment in the amount
          of $21,708.00, to Pete Gallegos Paving, Inc., Laredo, Texas.  The
          original contract amount was $98,790.00, this change order brings the
          total contract amount to $81,000.00.  Funding is available in Capital
          Improvement Fund Tinaja Creek Concrete Channel Improvement Project.

          Motion to approve.

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

      44. Approval of change order no. 1, an increase of $4,421.00, to the
          construction contract with The Stewart Company, Laredo, Texas, for
          additional features recommended by the Consultant in conjunction with
          the New Air Conditioning System and its accompanying Roof Structural
          Support for the Bridge Administration Building Project located at the
          Juarez-Lincoln International Bridge No. 2, final acceptance of the
          project and approval of final payment in the amount of $15,483.00.
          Funding is available in the Bridge System Bridge Improvements.

          Motion to approve.

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

      45. Approval of amendment no. 3, an increase of $13,500.00 to the
          engineering contract with Camp, Dresser & McKee, Austin, Texas, for
          additional engineering work consisting of field measurement and study
          of corrosion damage to existing clarifiers for the Upper and Lower
          Water Treatment Plants on Jefferson Street to increase their capacity
          from 38 million gallons per day to 55 million gallons per day project.
          Funding is available in the Waterworks System Fund. The original
          contract was $572,000.00 and this amendment brings the total contract
          amount to $708,320.00. Funding is available in the Waterworks System
          Fund.

          Motion to approve.

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

      46. Authorize the cancellation of a thirty-six month copier rental
          contract with Ozped, Laredo, Texas, for providing ten copiers for
          various City Departments due to non delivery.  Staff is requesting
          that City Council award a contract to the next low bidder, Xerox
          Corporation, Laredo, Texas, in the estimated amount of $56,558.16.
          Xerox has been the successful contract vendor for the last four years.
          The contract pricing is approximately the same as the previous thirty
          six month contract period.

          Motion to approve.

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

      47. Requesting authorization to proceed with an emergency purchase of a
          replacement ambulance from Reliable Emergency Vehicles, Comanche,
          Texas, in the amount of $85,000.00.  This ambulance will replace a
          1991 unit that was deemed inoperable and unsafe for emergency
          response. The City will receive a trade-in allowance in the amount of
          $22,000.00, which will be used to offset the total purchase cost. The
          remaining balance will be paid from surplus CO bond funds. Reliable
          Emergency Vehicles will deliver the new unit within one hundred twenty
          days.

          Motion to approve.

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

      48. 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 September 15, 1997, to discuss 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:  8                       Against:  0         Abstain:  0

      49. Adopting a schedule of hearings and proceedings, and directing staff
          to prepare a service plan for the annexation of 12 parcels of land
          totaling 1,654.3424 acres in accordance with Section 43.052 of the
          Texas Local Government Code and which consists of the following:
          Unilateral Annexation:
          a) Tract 1a: Unitec Industrial Park Tract -338.7082 acres, more or
                       less
          b) Tract 1b: IH35 Tract - 190.2584 acres, more or less
          c) Tract 2:  Bridge IV Tract - 181.2177 acres more or less
          d) Tract 8a: Highway 359 Tract - 61.7122 acres, more or less e) Tract
          8b: Highway 359/Landfill Tract -429.1243 acres, more or less
          Voluntary Annexation:
          f) Tract 3:  Killam Industrial Tract - 10.6253 acres more or less
          g) Tract 4:  Hurd Tract - 17.8736 acres, more or less
          h) Tract 5:  Salinas Tract - 8.0 acres, more or less
          i) Tract 6:  Izaguirre Tract - 7.819 acres, more or less
          j) Tract 7:  Killam Loop 20 Tract - 15.7203 acres, more or less
          k) Tract 9:  Haynes Tract - 4.6808 acres, more or less
          l) Tract 10: Southern Development Tract - 95.7986 acres, more or less
          m) Tract 11: Garcia Tract - 265.2185 acres, more or less
          n) Tract 12: Newman Tract - 35.1439 ac., more or less

          Motion to approve and include the Oscar Ramos Tract located on Hwy 359
          as submitted by Cm. Perez.

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

  IX.  CITY MANAGER'S REPORT

      50. Update on the status of the Colonias Facility Plan and financial
          application.

          Fernando Roman, Utilities Director, stated that last month there was
          notification from the consultants that the application was going to be
          late (3-4 months) due to the presence of an endangered species in some
          of the tracts.

          He added that they have done the following:
          (1) Mr. Eddie Garza has reviewed the facility plans to reflect some
          changes in the route of those plats that were in conflict with the
          Johnson Frankenia or the ocelot habitat.

          (2) The Commissioners Court of Webb County have passed an agenda item
          to finance the additional environmental studies needed.  They accepted
          to do this in a reimbursable basis and an item for us to do the next
          time they meet, is to amend the contract with Paul Garza and
          associates to reflect the additional scope of work.  This is not money
          coming out of the city, it's coming out of county funds, but for us to
          avoid any complications on the timetable if we amend our contract to
          them, then they can proceed.  It is merely a technicality that the
          Texas Development Board asked them to do.  There is no danger that the
          city will have a problem with the grant, they are looking to going to
          the board on January with the financial application.

          He said that there are about $150 million left, they have received
          proposals from environmental consultants and submitted those proposal
          to the Texas Water Development Board for review and approval.  He
          further stated that next month they will amend the contract with Paul
          Garza and Associates, secure the permit from the Texas Historical
          Commission and begin the work on the archaeological/biological survey.
          He explained that for October they should be finished with those
          surveys, have the report finished and delivered to the Texas Water
          Development Board for their review.  They expect that they will finish
          that review sometime in November, the board does not meet in December,
          therefore they won't meet with the Finance Committee until January and
          the consent agenda in February.

          Eduardo Garza, representing Paul Garza Engineering, said he had met
          with the residents at Los Altos and Tanquesitos and has kept them
          informed on the environmental concern delays.

      51. Presenting a status report on the progress of the Santa Isabel Water
          Well with possible action.  Preliminary results show an improvement in
          the water quality samples taken on July 24, 1997.

          Fernando Roman, Utilities Director, reported that the quality
          continues to be good, most of the piping has been installed, the
          computers will be installed in early September, they have the
          chemicals on hand, they should be running individual component tests
          in September and then a performance test with the whole plant in
          October.  He is still saying that the 1st of November is when they
          will be having the plant in operation.

          Cm. Bruni questioned as to when they will they be able to upgrade the
          pump and the motor so it can draw the water that the well is capable
          of doing?  When is council going to provide the funding to put the
          right equipment in the hole?

          Mr. Roman stated that they have the funding for replacement, the issue
          of the pump capacity has to do more with matching the capacity of the
          plant.  The plant is made to receive 100 gallons per minute, out of
          that they will treat and release about 88.

          Cm. Bruni asked if what Mr. Roman is saying is that the Reverse
          Osmosis can only treat 100 gallons per minute.  He asked Mayor Ramirez
          if council can authorize staff to look into the possibilities of what
          it would take as far as money wise is concerned, to increase the
          capability of the RO (Reverse Osmosis).

          Mayor Ramirez stated that is fine.

          Motion to waive the rules of order and move item G(1).

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

   X.  COMMUNICATIONS

          None.

  XI.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

    A.  Requests by Mayor Saul N. Ramirez Jr.

       1. Requesting City Council concurrence on sending a five person
          delegation to San Antonio to attend the Governor's Volunteer
          Leadership Conference to be held on September 21-23, 1997.  Laredo has
          been asked to participate in panel discussions that focus on the
          resource goal areas that were identified at the President's Summit on
          America's Future in Philadelphia, with possible action.
          (Co-sponsored by Councilmember Mario G. Alvarado)

          Motion to name the five (5) individuals from within the same group
          that was created to work under this program and that they decide
          amongst themselves as to who is going.

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

       2. Presentation by Ricardo de Anda on the Year End Report on Delinquent
          Tax Collections for year ending June 30, 1997.

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

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

       1. Discussion and possible action regarding the purchase of four
          computers and two printers for use by school children at the Santo
          Nio Branch Library so that they may be able to complete research
          papers and other homework.

          Motion to authorize the purchase of four computers and two printers to
          the lowest bidder out the this year's $48,000 balance in the Reserved
          Appropriations/Capital Outlay Account Number 101-9810-594-99-11.

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

       2. Status report regarding staff's research of the South Laredo Park and
          its possible use for affordable housing, with possible action.

          Jaime Flores, City Attorney, stated that the law on park land is very
          specific and restrictive, in this case it would have to go through an
          election.  The additional requirement that they are still researching
          is that as the law would say it, "the savor exchange of the park land
          even if approved by the voters would then have to be proceeds of the
          sale or the exchange of such park land used for acquiring additional
          park land."  He is still not finished in researching whether they have
          a case law that might be able to allow for affordable housing.  The
          specific exceptions of the law are for cities are under 80,000 or over
          a million, otherwise "park land for park land".


    C.  Requests by Alfonso "Poncho" Casso

       1. Discussion and possible action regarding the assistant driver
          positions at the Fire Department.

          Cm. Casso stated that he believes that the City has been exposed to a
          lot of liability and that it needs to cease immediately due to not
          having the proper trained driver personnel.

          Fernando Alarcon, President of the Firefighters Union, stated the city
          is in a very high liability situation due to the fact that they don't
          have enough assistant drivers.  There are presently 18 approved
          assistant drivers and are using regular firefighters in the place of
          drivers.

          Mayor Ramirez stated that Laredo is the only city that has assistant
          drivers.

          Tomas Ramirez, Fire Chief, stated there were 18 assistant driver
          positions approved some years back, at the present time they have only
          14 left of the 18 due to promotions.  They have discussed this
          problem, and have reached a possible solution. The association seems
          to be in accordance with it, they have decided that they could
          conceivably implement those additional 20 or 21 positions within this
          budget year, but without having an impact on the budget by phasing
          them and approving half of them for October and then the other half
          for either January or April.  That would constitute just transferring
          funds as opposed to having any impact on the budget.  He hopes that
          the association agrees to this.  They are talking of a total of 21
          positions within the next year, but because it only incurs the
          difference in salaries from one position to the other where the
          benefits and everything is already being paid, it would cost anywhere
          from $55,000-$60,000 per year, they in essence are asking to
          reclassify 21 positions.

          Mr. Pena stated he met with the association and the chief to discuss
          the assistant chief position and they would be able to phase in these
          reclassified positions over the course of next year's budget without
          an impact on the budget.

          Motion to implement the Fire Chief's recommendation and that it be
          brought back to council for action.

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

    D.  Requests by Councilmember Eliseo Valdez Jr.

       1. Discussion and possible action regarding the agreement between the
          City of Laredo and Central Power and Light for the provision and
          maintenance of street illumination.  Specifically, the length of time
          it takes to replace a burned out light. There are some lights that
          have been out for a long time.
          Emilio Garza, CP&L employee, pointed that on the agreement and under
          the terms and conditions, once there is a power failure the city is
          responsible of notifying the electric utility company of that outage.
          Once that is done, there is a five (5) day period for the repairs.
          They have not held the City to this, and they do not plan to hold the
          city to this, they will accept a call from any customer or anybody
          that has a concern about a street light being out.  There are eight
          (8) employees of CP&L that are doing a patrol of the major
          thoroughfares once a quarter.  Presently, they have two crews working
          on lights, in addition they have hired two additional crews from
          contractors to do light and maintenance.

          Larry Dovalina, Telecommunications Officer, stated he had surveyed and
          identified several street lights in his immediate vicinity and was
          told by CP&L that no one was assigned to go out and check the streets.
          That anytime that a light was out that they would have to report it in
          order that it get fixed and yes, they do report them, verify them, and
          they do comply with timeline, notwithstanding that there are other
          cities within CP&L territory who in fact have an active crew that
          works daily at taking care of that problem.  He added they have been
          scrutinizing their franchise intensely because of all the things that
          are happening.  He added they believe there is a favored nation clause
          within the franchise, that says that anytime any city is treated
          differently from the City of Laredo, that the city automatically
          should be treated in the same fashion.  It is in the clause as it
          directly relates to monies, and they believe it applies to the entire
          franchise.  They think they are obligated to have an active crew to go
          out there and be pro-active rather than reactive, because then if they
          are reactive we can take the posture that we assume that 5 to 10% of
          our lights are out in a monthly basis and reduce our payments to them
          for the particular lights by 5 or 10%.  The city has over 7,000 lights
          and surely more than 700 lights are out at one point in time in the
          city.  They are trying to encourage them to provide us with the
          service and want to be treated like other cities.

          Luis Landin, Traffic Director, reported that they have a 1-800 number
          for the citizens and that number doesn't work.  He added that it is
          not acceptable to the citizens to wait so long for the repair of
          street lights.

          Cm. Valdez suggested that as a City Council they should send a message
          to CP&L representatives that they should be active and not pro-active.
          He added that Mr. Correa from CP&L had made a statement that the
          transferring of CP&L was not going to affect any people in this city
          and he knows people that were affected by the closure of this
          facility.

          Mr. Bruce Earle Miller stated that the 800 number is not working,
          people report to them at the telecommunications commission that they
          can't get CP&L on the phone so why bother to call and report these
          lights.  It is a big problem and citizens do come before the
          Telecommunications Committee under Citizens Communication and are
          concerned about the lights being out, about public safety, and about
          burglary rates going up.

       2. Discussion and possible action regarding the development of a plan to
          allow residents who have fences along creeks to move their fences
          adjacent to the creek thereby relieving the City of a maintenance
          problem.

          Cm. Valdez stated that most of the people are in favor of moving their
          fences and doing the maintenance work, but there are one or two that
          may oppose it.

          Florencio Pea, Interim City Manager, explained that there is no
          problem in allowing those who are willing to participate to move their
          fences.

          Erasmo Villarreal, Asst. CD Director, stated that in some areas there
          are 15 ft. easements between the actual cyclone fence and the property
          owner's fence line that the city maintains.  In these areas they are
          looking at letting the citizens possibly use these easement for their
          own personal use, the city retains the easement and they take care of
          it.  The problems they have run into is that there is one or two
          individuals who are not willing to go along with the plan and
          unfortunately, since the whole area is fenced, we only have one way in
          and out to take care of the whole area.  They are looking at possibly
          coming out with a plan where maybe if one citizen is not willing to
          take care of that particular area, maybe having the abutting owners
          join in and take care of that other half and relieving the problem.
          They have approximately 15 orders in the Chaparral area that they will
          be working with, they have already identified the ownership and will
          be coming back to council with authorization to allow these right-of-
          ways.

          Motion to proceed with the recommendations and bring back
          authorization to allow these right-of-ways at the Chaparral

          area, after that move into the Retama I area and at any
          other areas where property owners agree.

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

    E.  Requests by Councilmember Joe A. Guerra

       1. Discussion and possible action regarding the disputed utilities
          billing for:
          a. Dr. George V. Garcia
          B. Francisco M. Fanelle.

          Mr. Randy Blair, CPA representing Dr. Garcia, made a presentation
          before the council on his figures on meter readings on Towne North
          Mobile Home Park.  He stated that in some instances there were no
          readings or the readings were estimates.  He added that overages were
          done in the 1995-1996 readings in the amount of $43,944.52.  What
          created the problem in 1995 is that the meters were not being read or
          were read and recorded improperly causing the overbearing.

          Fernando Roman, Utilities Director, reported he has been working with
          Mr. Blair and they are trying to come up with a methodology that they
          can both subscribe to, they do not necessarily agree as to what
          figures they should use, they have had problems studying from the
          readings, he has to acknowledge that there were many readings that
          were
          incorrect that were absent and that were illogical.  Looking at six
          years of history, it is not logical to look at a place that should be
          using at least 15-20 million gallon of water per year vs. 1 year using
          8 million gallons, another year using 30 million gallons.  There are
          many variables, Dr.  Garcia's park only has a fixed number of
          trailers, therefore, the consumption has to be predictable within
          certain reason.

          They have been attempting to reconcile the errors and differences, and
          perhaps one of the sources of their main differences is how to do what
          they see as an difference in over charge and what they see in some
          points as and under charge.

          There are several things where he would like direction such as:  (1)
          In some instances just as they may have over charged, they may also
          have under charged them.  It is possible that in some of the years
          because of the method that was used that an under charge has occurred
          and recovering that is questionable.

          He has already asked the City Attorney to be prepared for this
          question, so he does not expect an answer today.  The ordinance
          directs to correct reading mistakes up to three years prior in which
          the petition for review is presented, in this case, it would probably
          be about a year ago.  They could by ordinance review 1994, 1995, and
          1996.  The ordinance does not say whether they can under charge if
          they discover a mistake.  He does not know what to do at this point
          until he hears a different opinion.

          Mayor Ramirez suggested that possibly an agreed date can be set, reset
          the meter back to zero, and start from there that way from that point
          on, both meters will start with zeros and we will know where that is
          headed after that period.  He said that from that point on we will
          both be reading what is
          shown on these meters because the six year meter activity is hard to
          come up with, based on what has been done.

          Mayor Ramirez questioned, we have come up with amounts we feel we have
          under charged, and they have come up with amounts they feel we have
          over charged, and wants to know what is the difference?

          Mr. Roman pointed that because of the erratic readings that they have
          at some points, they have no readings.  At some points they have
          consumptions that absolutely make no sense and the data is
          questionable.  They have accepted that as very fowl.

          He added that Dr. Garcia has taken readings on a weekly basis on his
          own, with his own staff and sent copies to him of the readings, and he
          came up with a figure between January and May where he has been using
          on an average about 7,026 gallons per trailer/per month which are
          actual figures taken by his staff.  With his figures and doing a six
          year analysis it comes to an under payment of $18,840, obviously we
          still have a huge difference to mediate.  The review that is being
          made from real documents suggest one thing, but if they look at the
          data and don't believe it, then what is the alternative.  Dr. Garcia
          had also asked that they also look at the Casa Norte Trailer Park.  He
          said they ran a history on that, and came up with an average per
          trailer/per month of 11,800 gallons per month, per trailer compared to
          the 7,800 that they came up with the latest figures.  If they back
          three year they should have paid $61,000.00 and they paid $36,000.00,
          in 1995 they should have paid $63,000.00 and they paid $66,000, in
          1996 they should have paid $71,000.00 and they paid $81,000.  There
          was one year where there was
          under payment and two years that were in overpayment.  He asked
          council as to how should they conduct these analysis.

          Mayor Ramirez asked that they get three (3) years and average them
          out, then come up with an amount that both can agree with 'boron y
          cuenta nueva', bring back for the next council meeting for final
          action and that a mutually agreed system be implemented to better
          account for water usage.

    F.  Requests by Councilmember Mario G. Alvarado

       1. Discussion and possible action on recommendation from staff to help
          alleviate the truck problems on IH 35.

          Luis Landin, Traffic Director, reported that he had gotten direction
          from the City Manager to get together with TxDot to see if they could
          designate a lane exclusively for truck traffic and they discussed that
          with TxDot, however IH-35 is under construction, and they won't be
          able to provide that lane until they complete portion of IH-35 all the
          way to the Tourist Bureau.  Then TxDot will get together with staff
          and come with a plan on it.  The next phase that they already
          implemented is that the Police Chief got additional personnel in that
          area, numbering some of the trucks.  Trucks do not cross the bridge
          until late in the afternoon, but he does not know why they don't it in
          the morning, the bridge is ready to accept the cargo in the morning,
          but for some reason across the border they do not process the
          paperwork which is one of the delays.

          Chief Agustin Dovalina stated they have added personnel to work the
          area.  They have prepared a plan, but they are
          talking dollars and cents.   The possibility of assigning more
          personnel to try to deal with traffic and do what they can to help
          alleviate and steady the flow of traffic, it is a matter of paying
          overtime.

          Cm. Alvarado asked that staff look at all the possibilities available
          to facilitate that problem.  One other suggestion was having some type
          of a modular unit where the police officers can have some type of
          shade during their tour checking the number systems when they get
          closer to the bridge area.  There have been several recommendations
          brought forth through the Transportation & Traffic Safety Committee
          and the main thing here was to make sure that the information was
          getting across to the appropriate staff for review and of course in
          recommendation to council.

          Chief Dovalina stated he has a plan to deploy more officers, but it is
          a matter of paying officers to be there, because it is a matter of
          detracting them from their overall assignment of a particular area.

          Mrs. Betty Flores spoke in reference to the issue, stating that any
          decisions have to be discussed with the Mexican counterparts.  She
          added there are many dynamics involved, and hoped that the
          conversations held be expanded with the Mexican counterparts to help
          alleviate these problems.

          Mr. Pena concluded by stating that Mr. Gilbert Segovia had some
          recommendations from the Transportation and Safety Advisory Board and
          needs to present them to staff.

    G.  Requests by Councilmember Consuelo "Chelo" Montalvo

       1. Presentation by Marcelino Hinojosa regarding water utilities deposits.

          Mr. Hinojosa made reference to deposits on water connections which are
          10 years with the city and that no interests have been received by the
          depositor.  He also pointed out that there is no reward for customers
          with a good record when getting a new water connection.  He questioned
          the fact that he had received a $600 water bill, but his service was
          connected on July 17th and the city is charging for the previous
          tenant's water use.  He added that this bill had been discussed and an
          agreement was reached with the Utilities Director.  He said that he
          had paid $10 when he assigned the contract, but as he received his
          first bill they had added another $10 for the same charge.  He
          concluded by requesting that staff should study these concerns
          including the return of deposits.  He has not received any benefits
          such as having a good credit standing for having paid
          utilities/deposit services on time and then customers still have to
          pay another $100.00 deposit on another residence.

          Mayor Ramirez explained on the issue of the $100.00 deposits, added
          that this is something that council has to approve, deposits have
          never been returned, but credited to customers or applied to the new
          address if good credit is established.  The time that a deposit kept
          is something that has to be addressed at council level.

          Mr. Roman commented on Mr. Hinojosa's points as follows:

          (1) Whether charging a deposit is illegal?

              It is not illegal, it is part of an established ordinance.

          (2) His second point is that he is a 10 year resident at the same
              address and when he moved he was charged a $100.00 deposit again.

              That should not have occurred and if staff made an error it will
              be taken care of.  There is a section that stipulates that if and
              when the customer has good credit record, there is a $30.00
              charge. There are several conditions that establish what is a good
              credit record.

          (3) He questioned why deposits are not returned to commercial
              accounts?

              Mr. Roman answered, Mayor Ramirez explained council's decision at
              council level.

          (4) Mr. Hinojosa stated that it is an administrative problem that
              customers leave without paying an account.  He suggested staff
              should ask for identification, social security number, etc.

              Mr. Roman stated they have already started with this process a few
              months ago, they are requiring social security number, driver's
              license, or any other type of identification.

          Mr. Roman concluded by saying that the problem he had in his business
          of the $600 water bill dispute has already been settled.

          Mayor Ramirez asked that staff look at the $100 issue and come to an
          agreement.

 XII.  PUBLIC HEARINGS

      53. Public hearing amending Section 24.77.1 of the Laredo Land Development
          Code relating to permitted lot dimensions in certain districts,
          deleting lot depth requirements in AG, R-1, R-1A, R-2, RS, R-O, and B-
          1 districts, providing minimum lot area and frontage requirements for
          uses such as, but not limited to communication towers and off-premise
          signs on tracts platted in conformance to provisions provided in
          Section 212.0105 (b)(2) of the Local Government Code and Section
          16.343 of the Water Code; providing for publication and effective
          date.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending Section 24.77.1 of the Laredo Land Development Code
          relating to permitted lot dimensions in certain districts, deleting
          lot depth requirements in AG, R-1, R-1A, R-2, RS, R-O, and B-1
          districts, providing minimum lot area and frontage requirements for
          uses such as, but not limited to communication towers and off-premise
          signs on tracts platted in conformance to provisions provided in
          Section 212.0105 (b)(2) of the Local Government Code and Section
          16.343 of the Water Code; providing for publication and effective
          date.

          Motion to open the public hearing.

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

          Keith Selman, Planning Director, made the presentation before the
          council.

          Mr. Raul Guzman spoke in favor of the ordinance change for the
          billboard development.

          Motion to increase the lot sizes to at least what they already had,
          which is 4,600 in the R-2 and 46 x 100 for the R-3.

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

          Motion to close the public hearing and introduce the ordinance as
          amended.

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

          Ordinance Introduction: City Council

      54. Public hearing to adopt the Annual Budget for fiscal year 1997-1998
          and appropriating the estimated revenues and balances reported therein
          for the year beginning October 1, 1997 and ending September 30, 1998,
          consistent with the financial plan described in said Annual Budget;
          and authorizing the City Manager to implement said Annual Budget.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance to adopt the Annual Budget for fiscal year 1997-1998 and
          appropriating the estimated revenues and balances reported therein for
          the year beginning October 1, 1997 and ending September 30, 1998,
          consistent with the financial plan described in said Annual Budget;
          and authorizing the City Manager to implement said Annual Budget.

          Motion to open the public hearing.

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

          Beto Ramirez, Budget Officer, made the presentation before the council
          and presented the following recap budget changes:

                          General Fund Summary
                    1997-98 Budget Reconciliation

          Operating Revenue Before Workshop     $57,573,715
          Operating Revenues After Workshop     $58,081,655
                                                ___________
          Total amount increase (decrease)          507,940


                    Description

Increase TMRS transfer in from Health and Benefits Fund     $266,352 Increase
revenues - Transfer in from Transit to pay for
   Taxi Cab Inspector                                         32,129
Appropriate revenue expected from CP&L litigation             60,000
Increase in Current Property Taxes                           149,459 __________
                                                            $507,940


          Operating Expenses Before Workshop     $57,573,715
          Operating Expenses After Workshop       58,119,801

          Total amount increase/(decrease)           546,086


                    Description

Increase TMRS                                                $266,352 Reduction
of expenses - various divisions including filing
  positions until 1-1-98                                      (94,520)
Increase in expense for Asst. City Attorney                    50,249
Increase in expense for City Secretary reclass                  4,962
Add Assistant Fire Chief                                       67,578
Increase in expense for Taxi Cab Inspector (2610)              32,129
Decrease rental expenses for City Hall Parking                 (4,050)
Add appropriations for the following     Bethany House         12,000
   3rd party funding                     Paisano Girl Scout    10,000 Del Mar
                                         Little League  3,300
                                         SCAN                  50,000
Increase appropriation for the Animal Shelter                  11,437 Two Part-
time employees for custodial and recreation positions 16,000
Increase expense for security services (recreation centers)     8,000
Custodial services for the South Laredo Library                 8,000
Bruni Plaza Library Conversion                                144,649


Appropriate expense for City Hall wiring from CP&L proceeds    60,000
Delete Merit Program reserve                                 (100,000) _________
                                                             $546,086
                                                           ===========

          Motion to incorporate $100,000 for the Century City Park out of the
          Bruni Plaza monies.

          Moved : Cm. Perez
          Second: Cm. Bruni
          The second was withdrawn and the motion died for the lack of another
          second.

          Motion to explore the possibility of having Catholic Social Services
          manage our utilities/rent supplement program for the indigent of
          Laredo.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  4                       Against:  3         Abstain:  0
          Cm. Perez                     Cm. Casso
          Cm. Bruni                     Cm. Valdez
          Cm. Alvarado                  Cm. Guerra
          Cw. Montalvo


          Motion did not pass, motions to contracts need 5 affirmative votes to
          passage.  Cw. Moreno did not vote.

          Motion to solicit any interests from qualified providers to provide
          this service (manage out utilities/rent supplement program) for us to
          see who is willing to do it, and get proposals.

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

          Motion to allocate from the Water Utility Fund $5,500 for the Rio
          Grande Study Program in addition to the $8,000 that they are receiving
          to be sponsors of the "Dia del Rio Event" in October.

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

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      55. Public hearing concerning adoption of the 1998-2002 Capital
          Improvement Program for the City of Laredo.

          97-R-094  Adopting the 1998-2002 Five Year Capital Improvement Program
                    for the City of Laredo.

          Motion to open the public hearing.

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

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


          Mayor Ramirez stated what they have to do is show them as proposed and
          unfunded projects.

          1.  He clarified, all they have to do is show the list which shows the
              Capital Improvement Programs, but show them as proposed and
              unfunded.
          2.  The other part of the CIP is the CIF (Capital Improvement Fund).
              On the CIF there were no changes made to the list.  They still
              have $153,000.00 in drainage projects.  On the public works
              projects they decided to those in-house, they include the
              Broadcrest Drainage Improvements (Ejido/U.S. 59), Chaparral
              Channel Improvements (Clark/McClelland and Guerrero Tilden).
              Also, Calton Gardens Paving which is 11 block with no curb and
              gutter, civic center rehab, cemetery fence to finish in Meadow,
              National Guard Armory conversion, Northeast Hillside Park Bridge.
          3.  The third aspect of the Capital Improvements Program is the CDBG
              funds and they have to go through the projects again.

          Motion to amend as unfunded projects and to be included in the books
          as funded the Tinaja/Pilot Channel to include a pedestrian bridge at
          Bismark Street.

          Moved : Cm. Perez
          Second: Cm. Valdez

          Second was withdrawn.

          Motion dies to lake of second.

          Mr. Juan Ramon Barrera spoke in favor.

          Mr. Jesus Ponce wanted staff to provide the availability in printed
          form of the program projects.

          Mr. Ponce was informed that there are copies at the Public Library and
          there are three (3) copies available in the City Secretary's Office
          for public viewing.

          Mayor Ramirez suggested that council close the public hearing, that
          the resolution be placed back for considera-tion with a revised
          listing of all the projects that were added by staff that were not
          voted on by council.  That all the items that Mayor Protem Perez and
          any other councilmember have pending, that have not been included in
          this five year plan, be brought back for consideration with the time
          that they are proposed to take place (whether there is funding or
          not).  That the paving projects (Projects 60 and 61) be noted as the
          final two paving projects in 1998.  That the funding question be
          resolved prior to the adoption of this plan to make sure that both of
          these two projects are funded.

          Mayor Protem Perez asked that the 1900 block of Vicente be included in
          the paving projects.

          Motion to close the public hearing and approve the Mayor's suggestion.

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

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. Bruni
       For:  8                          Against:  0         Abstain:  0

      56. Award of a two year service contract to the LOW BIDDER, Solis Security
          Specialist, Laredo, Texas, in the amount of $51,376.00 per year, for
          providing security guard services at the Transit Center and El Metro
          Operations and Maintenance facility.  Three guards will be assigned to
          the Transit Center and one guard will be assigned to the Maintenance
          facility. A total of five bids were received for these services.
          Funding is available in the Transit System -
          General Administration - Security Guard Services.

          Motion to approve.

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

      57. Award of a contract to the LOW BIDDER, Alamo Iron Works, San Antonio,
          Texas, in the amount of $10,101.60, for the purchase and installation
          of lubrication equipment. The equipment includes all hose reels,
          lubrication pumps, control valves, and a storage tank. This system
          will service the new buses which require a lubricant approved by the
          engine manufacturer Detroit Diesel. A total of two bids were received
          for this purchase. Funding is available in the Transit System -
          Capital Grants.

          Motion to approve.

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

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

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

 XIV.  RECESS AND CONVENE AS THE LAREDO MUNICIPAL HOUSING CORPORATION

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

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

      58. Authorizing the Laredo Municipal Housing Corporation Director to
          submit an application to the Internal Revenue Service (IRS) for
          recognition of tax exempt status under Section 501 (c) (3) of the
          Internal Revenue Code.  This designation will allow LMHC to apply for
          grants directly.

          Motion to approve.

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

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

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

  XV.  ADJOURNMENT

          Motion to adjourn.    Time:  9:50 p.m.

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

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 39
ARE TRUE, COMPLETE AND CORRECT PROCEEDINGS OF THE REGULAR CITY COUNCIL MEETING
HELD ON THE 2ND DAY OF SEPTEMBER, 1997.  A CERTIFIED COPY IS ON FILE AT THE CITY
SECRETARY'S OFFICE.


                                          ________________________ GUSTAVO
                                            GUEVARA, JR.
                                              CITY SECRETARY