CITY OF LAREDO
                      SPECIAL CITY COUNCIL MEETING

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

                                MINUTES

       M97-S-40                                   NOVEMBER 18, 1997

   I.  CALL TO ORDER

       With a quorum present Mayor Protem Perez called the meeting to order.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Protem Perez led in the Pledge of Allegiance.

 III.  ROLL CALL
       IN ATTENDANCE:
       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,       CITY MANAGER
       JERRY BRUCE CAIN,    ASST. CITY ATTORNEY

       ABSENCES:

       City Attorney Jaime Flores.

  IV.  FINAL READINGS

       Motion to waive the final reading of ordinances #97-O-276.

       Moved : Cm. Bruni
       Second: Cm. Valdez
       For:  6                          Against:  0         Abstain:  0 Cw.
       Moreno was not present.

       2. 97-O-276  Amending Ordinance No. 96-O-163, to authorize the City to
                    accept water rights in lieu of payment of water availability
                    fees, at a negotiated equivalency when the City intends to
                    acquire real estate for a valid public purpose.

                    Motion to approve.

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

   V.  MOTIONS

       3. Approval of Change Order no. 3, an increase of $24,835.00, to the
          construction contract with Lambda Construction Company, New Braunfels,
          Texas, for additional work on the clarifiers at the Jefferson Street
          Water Treatment Plant Solids Handling Improvements Project. Funding is
          available in the 1994 Bond for Waterworks - Sludge Disposal Jefferson.
          Original contract amount was for $2,451,300.00. This change order will
          bring the total to $2,627,000.00.

          Motion to approve.

          Moved : Cm. Guerra
          Second: Cm. Alvarado
          For:  6                       Against:  0         Abstain:  0

          Cw. Moreno joined the meeting at 5:38 p.m.

  VI.  CITY MANAGER'S REPORT

       4. Presentation regarding the list of 1998 Capital Improvement Projects
          with a discussion on the use of certificates of obligation for their
          funding, with possible action.

          Florencio Pea, City Manager, reported that he met individually with
          each of the council members in an effort
          to develop a staff recommendation for the issuance of $14,000,000 of
          Certificates of Obligation in January or February of next year.  The
          issuance of this debt will not impact the debt tax rate since a
          reduction in the annual debt service will be occurring in the 1998-99
          fiscal year.  Our financial advisor has stated that a $14 million
          issue is possible and still stay within the debt service reduction,
          however, it could be less or more somewhat based on rise or fall of
          interest rates in January of next year.
          He continued stating that most of the council had expressed that the
          allocation of Certificates of Obligation funds should be guided by the
          following priorities: (1) street and drainage projects, and (2)
          distribute funds equally to the extent possible to individual
          districts.  With these principles in mind, staff has prepared the
          several funding proposals.

          Exhibit I is the source used to select projects.  These projects were
          identified previously by City Council and is attached to these
          minutes.

          Exhibit II is the proposed use of the $14 million of Certificates of
          obligation as follows:
                           1997 - 1998 CO Issue
          Drainage
          Texas Ave. / Price St.                          1,700,000
          Zacate Creek Erosion                              800,000
          Flecha Lane                                       100,000
          406 W. Plum at San Francisco                       50,000
          Upgrade Drainage at Park in Chaparral             150,000
          1200 Frost and Lyon                                75,000
          Tinaja Channelization (Final Design & Phase 1)   1,000,000
          Laredo Manor                                       170,000
                Subtotal                                   4,045,000 Streets
          Alma Pierce (SW)                                    70,000
          Santa Maria Reconstruction                       2,900,000
          Calton Road Improvements (Library)                 700,000
          School Drop Offs                                   500,000
          Paving Project #60                                 500,000
          South Meadow Bridge at Chacon                      500,000
          Trautman Elementary Sidewalk                        70,000
          Hilltop (290,000) and/or Gallagher (200,000)       490,000
                Subtotal                                   5,730,000 Public
          Buildings
          Public Works                                     2,500,000
          Equipment                                        1,200,000
          Library                                            410,000
          Canizalez Gym                                      170,000
                Subtotal                                   4,280,000
          Grand total                                     14,055,000

          Exhibit III is a distribution of the cost of the projects by district.
                               1997 - 1998 C.O.
                   District I                     1,000,000
                   District II                    2,400,000
                   District III                     670,000
                   District IV                      125,000
                   District V                     1,020,000
                   District VI                      730,000
                   District VII                   3,000,000
                   District VIII                    410,000
                   Public Works                   2,500,000
                   Equipment                      1,200,000
                   Paving Project #60               500,000
                   School Drop Offs                 500,000
                   Total                         14,055,000

          Exhibit IV is a proposed use of Community Development Funds for fiscal
          year 1998-99.

                  1998 - 1999 Community Development (C.D.)

          Paving Project #61                        980,000
          Cruz Field Lighting                        50,000
          Tinaja Chacon Drainage (Phase 11)         742,000
          Blaine / Milmo (Final Design & Phase 1)   470,000
                Total                             2,242,000

          Exhibit V is a proposed use of Capital Improvements Fund (CIF) for
          fiscal year 1998-99.

                1998 - 1999 Capital Improvement Fund (CIF)

          Santa Maria & Industrial Traffic Signal    50,000
          Bartlett (Sandman to Hillside)            108,000
          B.B. Loop @@ McPherson Traffic Light       50,000
          Spur 400 Lighting                         130,000
          Intersection Improvements                 284,000
          Speed Bump Program                         50,000
          City Wide Sidewalks                       500,000
                Total                             1,172,000

          Exhibit VI is Paving Project 60 which is designed and ready for
          construction pending Council approval of this plan.

                        PROJECT 60 ($900,000)

STREET NAME                             NO. OF BLOCKS   DISTRICT NUMBER
GREEN ST. (2600) (TEXAS AVE. - U.S. 83)        1           DISTRICT I
BAYARD (2900) (NEW YORK - CANADA)              1
MORENO AVE. (CORPUS CHRISTI - TEX MEX ROW)     1           DISTRICT II
HARDING AVE. (I 800) (GUERRERO - LANE)         1
GUERRERO ST. (3500) (HARDING - DIAZ)           1
DIAZ AVE. (I 800) (GUERRERO - LANE)            1
SMITH AVE. (700 - 800) (GUATEMOZIN - MARKET)   2           DISTRICT III
GUATEMOZIN ST. (3100-3200) (INDIA - EJIDO)     2
S. NEW YORK AVE. (100) (MERCER - 1/2 BLK. SO. 0.5
S. CANADA AVE. (100) (MERCER- 1/2 BLK. SO.    0.5
SMITH AVE. (200) (PIEDRA CHINA - GREEN)        1
INDIA AVE. (100-S 100) (GREEN - WOOSTER)       2
MERCER ST. (3100) (INDIA - SMITH)              1
GREEN ST. (3000) (CANADA - INDIA)              1
CHACON ST. (900) (TILDEN- HENDRICKS)           1
McCELLAND AVE.(600)(GUATEMOZIN-SO.TEX MEX ROW) 1
McCELLAND AVE.(500)(WILLOW - N. TO TEX MEX ROW)1
MENDIOLA AVE.(600)(GUATEMOZIN -SO.TEX MEX ROW) 1
LEXINGTON AVE. (2400) (OKANE - REYNOLDS)       1           DISTRICT IV
ALLENDE ST. (900) (TILDEN - HENDRICKS)         1           DISTRICT V
LAFAYETTE ST. (2500) (ANNA - LEE)              1           DISTRICT VII
LEE (3400 - 3500) (MADISON - BALTIMORE         2
          TOTAL                               25

          Exhibit VII is Paving Project 61 which needs to be designed.  Staff
          estimates four months for design, which means the project would be
          ready for construction until July or August of 1998.

                        PROJECT 61 ($980,000)

STREET NAME                             NO. OF BLOCKS   DISTRICT NUMBER
JARVIS AVE. (2400) (SALTILLO ZACATECAS)        1          DISTRICT I
NORTON (1900) (BUENA VISTA - US 83)            1
VICENTE ST. (2000)(MEADOW - WEST 1 BLOCK       1
BOULANGER SI-. (2200) (BARLETT - JARVIS)       1
EJIDO AVE. (2700) (PRICE - KEARNEY)            1          DISTRICT II
MORENO AVE. (100) (GUADALUPE- 219 SOUTH)       1
CANADA AVE. (2300 (CLARK - O'KANE)             1
RYAN ST. (W200-W400) (SAN FRANCISCO -MCDONELL  3          DISTRICT V
RYAN ST. (300 - 400) (MARCELLA - MARYLAND)     2
PACE ST. (500-600) (SAN DARIO - SAN FRANCISCO) 2
SANTA RITA AVE. (3800 3900) (RR ROW NORTH)     2          DISTRICT VII
PHILADELPHIA (1900)(SANTA RITA - 1 BLOCK WEST) 1
BURNSIDE ST. (1900) (SANTA RITA - VIDAURRI)    1
PIERCE ST. (2000-2100) (VIDAURRI - EAGLE PASS) 2
SANTA ISABEL (3600 - 3700) (BALTIMORE-BOSTON)  2
SHERMAN ST. (1900) (STA. RITA - VIDAURRI)      1
LEE (2700) (JEFFERSON - ALAMO)                 1
PINDER (2700) (JEFFERSON - ALAMO)              1
ALAMO 2300 - 2400) (SAN IGNACIO LEE)           2
ORILLA (MANN RD. - INDUSTRIAL BLVD.            2
GARZA ST. (2300) (SAN IGNACIO - PINDER)        1          DISTRICT VIII
SAN IGNACIO AVE. (800) (MATAMOROS - HOUSTON    1
CALLAGHAN (2200) (SAN IGNACIO - EAGLE PASS)    1
COKE ST. (STA. ISABEL - VIDAURRI)              1
           TOTAL                              33

          Exhibit VIII is a list of the projects identified by council which are
          not included in the above-noted program.

                            UNFUNDED PROJECTS

                Raquel Gonzalez Park                720,000
                Bartlett Extension                1,200,000
                Airport Recreation Complex        1,500,000
                Other Parks                          N/A
                Recreation Center, Spur 400         700,000
                Blaine/Milmo Drainage, Phase II   1,030,000
                Century City Park                   400,000
                Park/Ride                           400,000
                Sidewalk ADA                        408,000
                                                  6,358,000

          Cm. Casso spoke of one area that is not on the list, that was not
          added, but that he would like to discuss the extension of Bartlett all
          the way to Del Mar.  He said that this area is extremely important
          because that whole area is going to boom.  There is talk about a
          Regional Health Academic Center being built, and if that happens it is
          completely going to change that area.  They will need more
          infrastructure in the area because that project is about $4 million
          and they need to start working at design work which is approximately
          10% of the project which is $400,000.  He concluded by saying that
          they need to start looking at this and start doing something in the
          area.

          He also spoke of the extension on Cm. Valdez's district, the area of
          McPherson past Calton.  He said they need to start looking at this
          area for a long term solution, they need to look at the cost because
          of the right-of-way acquisition and as to how they are going to
          displace these residents, unless council wants to come back in the
          summer and go with an Economic Development Corporation or something
          else.

          He concluded by saying that they need to start looking long term,
          because that area is going to be a disaster in terms of traffic
          congestion.  Bartlett is going to extend to Gale which is part of the
          plans, but they do need to connect it to Del Mar Blvd., they need to
          find those $400,000 to start making the design as soon as possible.

          Cm. Valdez was agreeing with Cm. Casso especially on the segment on
          McPherson between Calton Road and Saunders because the land use is
          going to change dramatically within the next couple of years.  He said
          it needs to be addressed and looked into.

          Mr. Pena stated that the Bartlett extension is on "Exhibit 8" on
          unfunded projects, it is all the way to Del Mar for $1.2 million.
          They need to look as to how they are going to fund these projects and
          possibly others so they can develop their funded Capital Improvements
          Program after this program is wrapped up.  There is an Economic
          Advisory Committee that will be working with Council in identifying
          projects that Council and the community feel that need to be
          implemented.  They need to have a plan to do that.  He is hoping that
          in the first and second quarter of 1998 they will focus on what those
          projects need to be so they can prepare a bond election to do some of
          these projects and establish the CIP for the next three to five years.

          Cm. Bruni stated that they need to start finding the funding and need
          to expedite the Bartlett extension at $1.2 million cost, and then from
          Bartlett to Sandman to Hillside is $108,000 for a total of $1,308,000.
          He asked if they are looking at a total of $1,308,000 to complete the
          project?

          Mr. Pena stated that $4 million does not include right-of-way
          acquisition.  The project might be more than that, the figure should
          be $4 million.

          Cm. Casso stated that the hospital is going to open in November of
          next year, there will be a lot of traffic, they need to earmark at
          least 10% for the design and need to start moving in this direction,
          they need to design five lane roads, because it will be a traffic
          nightmare if they do not anticipate what is going to happen.

          Cm. Bruni said that they need to earmark for at least the design this
          evening.

          Cw. Montalvo stated there is estimate of $2,400,000 for Cm.  Bruni's
          district and wants to know if they can cut down in one of the projects
          for the Manor Apartments.

          Cindy Collazo, CD Director, spoke in reference to the Manor
          Apartments, she said that staff had met with Mr. Ozuna and Ron
          Anderson from TG-108.  Initially the estimate was $1.8

          million, they brought it down to $644,162.00 they had indicated that
          they had $183,000 set aside for this project now if the city proceeds
          to provide the $170,000 as presented this evening that would mean that
          they are still $291,162 short.  In a letter they indicated that they
          have approached the County Commissioners for assistance, they don't
          say that they would or that they did commit other than say they would
          help to find a solution, but that project would still be short
          $291,000.

          Cw. Moreno requested that when the list of projects is approved and if
          it is approved the way it is, that one of those projects (the Frost
          Project) in her district, that this project be one of the first ones
          done because they affect people and individual homes, whereby water
          comes into their homes and they have drainage problems.

          Noe Hinojosa, City's Financial Advisor, presented the Council with a
          spreadsheet on funding rates and funding periods, interests, etc.

          Note: No spreadsheet was given to the City Secretary for public
                review.

          Mr. Rivera stated that $400,000 would take them a long way even if
          they have to make the feasibility first and they can determine the
          actual cost that it would take.  They can start the feasibility study
          and right-of-way acquisition with those monies.

          Motion to include the $400,000 contingent on surplus funds in the
          future and contingent upon the sale of bonds, to do the feasibility
          study and the design of that project (the Bartlett extension) even
          though that project is going to be developer geared, and that if there
          are additional monies that other projects be identified, then Council
          will come back for additional funding, if available.

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

          Rosalinda Ramos, Manager of Manor Apartments spoke of drainage and
          flooding at Manor Apartments and showed video of the drainage problems
          that exist.

          Cm. Guerra stated that the owners of the apartments are bringing
          $183,000 and are participating on the cost of the overall project.

          Cindy Collazo stated that if Council approves the $170,000.00 then
          that leaves a balance of $290,162, and based on their letter they are
          trying to get a loan from Federal Home Bank and were turned down
          because they were not bringing anything down to the table.  Their
          letter indicated that they will pursue other funding sources.

          Maria Elena Perez resident of the Laredo Manor Apartments spoke of the
          drainage problems and the flooding that occurs when it rains and said
          that students and residents cannot go to work or school.

          Mr. Torres stated if they are going to approve the $170,000 they can
          come back to Council with a plan on how they can secure the
          $291,000.00 so that the project gets funded and built within the next
          12 months.

          Mayor Protem Perez stated they will be looking at the project at a
          future date.

          Mayor Protem Perez read a letter from the Sierra Vista/Los Obispos
          area residents requesting the City to provide the parks that were
          scheduled to be built in that part of town for the 1997-1998 fiscal
          year.  They urge council to continue aggressively with these projects
          without any delay.  The letter included 17 signatures.

          Motion to accept the projects as presented, and add the $400,000
          depending on the sale of the bonds, and the market at that time.

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

          Ms. Linda Barrera, Manager of Versalles Apartments, spoke of drainage
          problems at the apartments.

          Mr. Rivera stated that the drainage system in place takes care of the
          problem there.  The problem is that the parking lot is low, there is
          positive drainage towards IH-35, but when the ditches along IH-35 get
          full that drainage will not flow, it flows very slowly because the
          parking lot is lower

          than Santa Maria.  He concluded by saying that the drainage project
          that is ongoing will help.

          Cm. Guerra stated he has a concern with Hilltop Project Phase II and
          wants to make sure that it is fully funded.

          Mr. Rivera stated they had a meeting with G.G. Salinas, engineer for
          the project, and added they were proposing a bond for $290,000.  They
          have gone through the cost of the project in order to make the project
          go.  In the plans they would be accessing property owners.  The owners
          will be putting the entire cost for the sanitary sewer and part of the
          installation of the new water lines.  The city will be footing the
          bill for replacement and/or adjustments of any existing water lines
          and services.  The last figures that they have are $290,000 in the
          bond there is about $12,000 difference.

          Mr. Salinas stated that project goes back three years, there are
          approximately 40 property owners, to this date they do not have
          sanitary sewer, and they don't have paving.  He did all the
          engineering and surveying and not only he can benefit from developing
          the land, but the other neighboring property owners will also benefit.
          He said they are about $11,653.00 apart, he has tried to meet the
          $290,000.00 but this is as far as they got.

          Keith Selman stated that they might have some room within the
          Gallagher proposal.  He added that the Gallagher Project might not
          come out to $200,000 (it might be lower) and if it is lower then they
          can supplement this project there.

          Motion to add $12,000.00 to complete the Hilltop Subdivision Project
          to the overall projects, contingent upon the bond sale.

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

          Motion to secure $20,000 for the two block stretch on Calle del Norte
          west of Amparo Gutierrez School that need sidewalks to connect to
          Springfield, contingent upon the sale of the bonds and as a joint
          venture between the City and UISD matching 50/50.

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

          Cm. Perez clarified the motion, that they will add $20,000 to the
          $14,467,000.00 and now the total will be $14,497,000.00 and that it
          will be a joint venture with Amparo Gutierrez Elementary School.

          Mayor Protem Perez also said there is a proposal for
          $1 million for drainage at Tinaja and wants to see if they can get
          $50,000 from that project for a parking lot at the Cigarroa Complex
          together with the Laredo National Bank and a traffic light on Santa
          Barbara and Highway 83.  He added that there will be construction at
          Chacon/Meadow Bridge and it will be difficult for people that live in
          the area to get out unto Highway 83.  There is no study at this point
          for this project, but he would like to set aside those $50,000 in case
          they qualify and once the study comes in.

          Motion that Jarvis next to the Aldo Tatangelo Day Care Center under
          Project 61, be changed to be done first under Project 60, and that the
          3000 Block of Bayard under Project 60 be reversed and be done under
          Project 61.  To amend that from the $1 million under District I that
          $50,0000 be for a parking lot at the Cigarroa Complex as a joint
          venture with the Laredo National Bank and a for traffic light on Santa
          Barbara and Highway 83, if warranted.

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

          Motion to accept the projects as amended with the different
          allocations as follows:  $12,000 to complete the Hilltop Project and
          the $20,000 for sidewalks on Calle del Norte to connect to Springfield
          for a total of $14,497,000.00.

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

          Mayor Protem Perez said there were also some projects presented for
          1998-99 under the Community Development Section and read them into the
          minutes as follows:  Paving Project 61, Cruz Field, Tinaja/Chacon
          Drainage (Phase II), Blaine/Milmo (Final Design & Phase I) these are
          for council to consider for next year.  Under CIF (Capital Improvement
          Fund) they have the Santa Maria & Industrial Traffic Signal, Bartlett
          (Sandman to Hillside), Bob Bullock Loop at McPherson traffic light,
          Spur 400 lighting, Intersection Improvements, Speed Bump Program, and
          city wide sidewalks.  He asked that they be included in the minutes
          and that they be included in next years budget workshops as priority
          projects because they are contingent to projects that they just
          accepted.

          Motion to incorporate the 1998-99 CIF recommended projects and the
          1998-99 Community Development Projects.

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

       5. Presentation regarding the City's Three Year Street Recycling Program,
          with possible action.

          Rogelio Rivera, City Engineer, delivered council a list of the
          proposed 1997-98, 1998-1999 and 1999-2000 Street Recycling Project
          list.  He went over the projects and stated that the first year covers
          about 159 blocks, those have been cleared by utilities, but there are
          some utilities that have not responded to their requests for work
          pending.  They have 159 that are ready to go and if approved they can
          start the design.  There are a total of 529.5 blocks for the three
          years.

          Note:  See attached lists for proposed street recycling projects.

          Cm. Bruni said that on previous meetings council recommended several
          streets that they wanted incorporated into the Street Recycling
          Program that are not shown on Mr. Rivera's list and asked the City
          Secretary for the minutes where those streets
          are mentioned.   He wants a report of the streets recommended by
          council to be included into the Recycling Program.

          Motion to accept the Three Year Street Recycling Project and if there
          are certain streets were left out by staff, that they be incorporated
          as part of the motion and that they be incorporated on the first year
          of the Three Year Recycling Project, unless it substantially affects
          the program.

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

 VII.  COMMUNICATIONS

          None.

VIII.  ADJOURNMENT

       Motion to adjourn.

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

       Adjournment time: 7:50 p.m.

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 13
ARE TRUE, COMPLETE, AND PROCEEDINGS OF THE REGULAR CITY COUNCIL MEETING HELD ON
THE 17TH DAY OF NOVEMBER, 1997.  A CERTIFIED COPY IS ON FILE
AT THE CITY SECRETARY'S OFFICE.

                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY