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

                                      MINUTES

       M97-S-13                                           APRIL 8, 1997

   I.  CALL TO ORDER

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

  II.  PLEDGE OF ALLEGIANCE

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

 III.  ROLL CALL
       IN ATTENDANCE:
       SAUL N. RAMIREZ, JR.        MAYOR
       JOSE R. PEREZ,              COUNCILMEMBER, DISTRICT I
       LOUIS H. BRUNI                    "      , DISTRICT II
       CECILIA MAY MORENO                "      , DISTRICT IV
       ELISEO VALDEZ                     "      , DISTRICT V
       JOE A. GUERRA                     "      , DISTRICT VI
       CONSUELO "CHELO" MONTALVO         "      , DISTRICT VIII
       GUSTAVO GUEVARA, JR.        CITY SECRETARY
       FLORENCIO PENA              CITY MANAGER
       JAIME FLORES                CITY ATTORNEY

       ABSENCES:

       Motion to excuse Cm. Casso and Cm. Alvarado.

       Moved : Cm. Perez
       Second: Cm. Bruni
       For:  4                     Against:  0              Abstain:  0
       (Cm. Perez, Cm. Bruni, Cm. Valdez, and Cw. Montalvo)

       (Cw. Moreno and Cm. Guerra were not present at this time.)

  IV.  FINAL READINGS

       Motion to waive the final reading of ordinance #97-O-091.

       Moved : Cm. Perez
       Second: Cm. Bruni
       For:  5                     Against:  0              Abstain:  0
       Mayor voting in the affirmative.

       2. 97-O-091  Ordinance amending the City of Laredo's 1996-1997 Annual Budget
                    in the amount of $3,338,041.00, for a grant award from the
                    Economic Development Administration (EDA) of $2,000,000.00,
                    including a private contribution by Mercy Regional Medical Center
                    of $1,054,602.00, of which $430,000.00, are attributable through
                    off-site and on-site improvements constructed by Mercy Regional
                    Medical Center, and $283,439.00, as a local match from the
                    Airport Fund, and amending the Airport Fund to appropriate
                    $283,439.00, from fund balance to the Economic Development
                    Administration Grant for the development of the Airport Medical
                    Infrastructure Improvements Project.

                    Motion to approve ordinance #97-O-091.

                    Moved : Cm. Perez
                    Second: Cm. Bruni
                    For:  5             Against:  0         Abstain: 0
                    (Mayor voting in the affirmative.)

   V.  MOTIONS

       3. Award of a construction contract to the LOWEST BIDDER, BRH Garver, Inc.,
          Houston, Texas in the amount of $742,983.00 for the 18 inch diameter
          sanitary sewer main along Bustamante Street from Meadow Avenue to East San
          Francisco at Zacate Creek. This project is part of a grant application
          package submitted to EDA.  Six (6) bids were received March 13, 1997.
          Funding is available in the Airport/Medical Park Project Fund.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  5                  Against:  0              Abstain: 0
          (Mayor voting in the affirmative.)

  VI.  CITY MANAGER'S REPORT

       4. Presentation relating to the U.S. Department of Housing and Urban
          Development's (HUD) Grantee Management System and the 1997 Consolidated
          Planning Process as requested by the HUD San Antonio Area Office Staff to
          discuss relevant planning, performance, and compliance issues pertaining to
          the administration of HUD program funds by the City of Laredo, to identify
          the direction where the City's Consolidated Planning Vision is moving
          towards, and to solicit areas in which HUD assistance is needed.  This
          meeting further serves to inform City Council of the consolidated planning
          process and initiate discussions regarding the specific projects Council
          wishes to see funded in the next program year through the Community
          Development Block Grant, the HOME Investment Partnerships Program, and the
          Emergency Shelter Grant.

          Cindy Collazo, CD Director, introduced Mr. John Maldonado, CPD Director and
          our CPD Representative Mr. Nathan Rathner from the HUD Office.

          (Note:  Cw. Moreno arrived at this time.  5:40 p.m.)
          (Note:  Cm. Guerra arrived at this time.  5:44 p.m.)

          Mr. John Maldonado, Director of the Community Planning and Element Division
          of HUD, set the stage on what this is all about and explained that a year
          ago council adopted a Consolidated Plan.  The plan was a basic 3-5 year
          plan that listed the needs within the city and the priorities within the
          city in using federal funds to accomplish those needs.  A year later staff
          submitted to them what they called an Annual Action Plan which was the
          action taken as a result of the Consolidated Plan.  Basically what they
          were here for, which is what they do for all the entitlement communities in
          South Texas, is to say:

          (1) This is what you said you were going to do with the Consolidated Plan.
          (2) This is what you told us you did.
          (3) This is what we think you did.

          He added that in a sense this is a report card on what staff and council
          have done, but it is more than a report card, it really is to take a look
          at the gaps within the city to find out what resources they could bring to
          the city and to assist in any way they can to achieve the goals identified
          in the Consolidated Plan.  Then to prepare the process that the staff is
          currently going through, which is going through the public hearings for
          next's year funding, establishing the priorities that the citizens say
          should be the priorities.

          He emphasized the fact that the Consolidated Plan is a bottoms up approach
          getting the input from local citizens, having them tell what they see their
          needs are and then council looking at the Consolidated Plan prioritizing
          those needs as council feels appropriate.  He reported that our overall
          report card in performance is an "A" and commended staff and has
          recommended that the housing program in Laredo be highlighted and
          classified as one of the best practices to recommend to be implemented in
          other communities.

          Mrs. Collazo stated that on the Concord Hills issue she recommended that
          council approve the resolution subject to HUD's approval.  They did request
          a letter from them and they receive it yesterday.  She asked that Mr.
          Maldonado explain the contents of that letter.

          Cm. Bruni stated that Mrs. Collazo passed a memo of several projects and of
          these 8 or 9 projects listed how many are in the city and how many are in
          the county?

          Mrs. Collazo answered that most of them are in the city and the only one in
          the county is River Valley.

          Cm. Bruni had concerns on River Valley, how are they going to address their
          solid waste, how is the county is going to provide the necessary
          infrastructure for water/wastewater and wants to address those concerns
          sometime with staff and P&Z.  He wants to know if this is an issue that
          will be presented to P&Z.

          Mr. Pea stated that the project has been approved as a preliminary plat at
          this point.  They are preparing the final plat for approval, there are
          still concerns about street lights, drainage, and solid waste has been
          mentioned.  At this point, it is still being reviewed by Planning & Zoning
          Commission.

          Mayor Ramirez suggested that it is important that we focus on three things
          on this subdivision (1) drainage plans for the subdivision and what impact
          it would have, (2) the solid waste management of that subdivision, and (3)
          the water and sewer question.

          Cm. Bruni was also concerned about the interlocal agreement with the county
          to provide EMS and fire protection, if we are going to have additional
          units to provide these services, council might have to revisit the
          interlocal agreement for that particular subdivision.

          Mr. Maldonado emphasized that staff had asked their input because it was a
          unique situation with three different sources of funding and it was the
          first time that the state had put money into a participating jurisdiction.
          He stated that the activity itself is eligible, their comment is that there
          may be some families within the subdivision that might not need the full
          $9,000.00 subsidy so what the city should is submit in the contract to say
          that the city will provide "up to $3,000.00" so for example, if a family
          that qualifies for a $50,000.00 house and only needs $3,000.00 there is no
          need to put the $9,000.00 and get caught in some kind of a question cost
          finding later on.

          Mayor Ramirez stated that the figures would be prorated and explained that
          our participation under the HOME Program would be up to $3,000.00, but
          would be only proportionate to whatever assistance is necessary on the
          qualified buyer.

          Rogelio Rivera, City Engineer, pointed several drainage concerns and they
          have addressed them with phase I which is ready to go.  The concerns
          pending would be addressed at a later date.

          Cm. Bruni addressed the retention ponds, asked if these retention ponds
          will have the safety features that were addressed in previous council
          meetings, that as a safety issue, that ponds are built properly to ensure
          the integrity of the retention pond and the safety in mind.

          Mr. Rivera stated if those recommendations go thru in the form of an
          ordinance or an amendments to the ordinance and any standards that they
          would have to meet they would have to be met.

          Mrs. Collazo stated went thru the CIP projects that are scheduled for next
          year, there are approximately $2 million that will remain, and it will be
          up to council what priorities they would like to see in there.

          Cw. Moreno expressed her opinion that every district should get something
          in project monies.

          Mayor Ramirez suggested that they schedule a meeting with Councilmembers to
          discuss and talk about priorities and then fill in the gaps in time and tie
          them together within the $2 million window.   He added that for areas that
          do not have sidewalks that we look at entire blocks and do them in squares.

          Mrs. Collazo stated that they will start the public meetings on the 22nd,
          they will be confirming the sites for these meetings.

          Cm. Valdez wanted to go on record stating that he concurred with Cw.
          Moreno, that they be treated the same way in reference to having project
          monies distributed equally in the districts or in a fair share.

          Evan Quiroz stated that since this project has been approved subject to
          HUD's approval, that the contract be expedited as soon as possible.

          Cw. Moreno wants that this project be put in a fast track.

          Cm. Bruni wants that the items that he mentioned for River Valley project
          be incorporated in the motion.

          Motion to instruct staff to do everything within our powers in expediting
          the construction of these homes under the Community Development
          presentation, the Home Investment Partnership and prioritize it as a fast
          track within the legal constraints that we have as a city government.  That
          the recent requirements regarding drainage, platting, and building permits
          required under this motion, that it be understood that these kind of things
          need to move quickly.

          Second to the motion concurred in amending that the motion include the
          River Valley Subdivision Project which is under the Consolidated Planning.

          Moved : Cw. Moreno
          Second: Cm. Perez
          For:  6                  Against:  0              Abstain: 0

 VII.  ADJOURNMENT

       Motion to adjourn.

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

       Adjournment time:  6:20 p.m.

       I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 06
       ARE TRUE, COMPLETE, AND CORRECT PROCEEDINGS OF THE SPECIAL CITY COUNCIL
       MEETING HELD ON APRIL 8, 1997.  A CERTIFIED COPY IS ON FILE AT THE CITY
       SECRETARY'S OFFICE.

                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY