CITY OF LAREDO
                          CITY COUNCIL MEETING

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

                                 MINUTES

       M98-R-01                                     JANUARY 5, 1998

   I.  CALL TO ORDER

       With a quorum present Mayor Protem Jose R. Perez, Jr. called the meeting
       to order.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Protem Jose R. Perez, Jr. 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,              "     , 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
       JAIME L. FLORES,      CITY ATTORNEY

       Motion waive the regular order of business and move up items
       55-A(1), #53, 49, F(1).

       Moved : Cm. Guerra
       Second: Cm. Valdez
       For:  6                       Against:  0         Abstain:  0
       Cm. Casso was not present.

       Cm. Casso joined the meeting at 6:10 p.m.


  IV.  INTRODUCTORY ORDINANCES

       2. Closing as a public easement a 15 foot wide section of Diana Avenue
          between Hillside Road and Aurora Street dedicated as a public easement
          as per the Jesus G. Sepulveda Replat of Block Four (4), Calton Gardens
          Subdivision, Number One (1), Northern Division of the City of Laredo,
          County of Webb, Texas recorded in Volume 2, Page 201 of the Webb
          County Plat Records and upon closing of the street, the City will
          retain the entire property as a utility easement and providing for an
          effective date.

          Ordinance Introduction: City Council

       3. Street Improvements Project 60; declaring the necessity for and
          ordering the paving and improvements of certain streets in the City of
          Laredo, Texas; approving the Street Paving Assessment Roll and cost
          estimates as prepared by the City Engineer; and directing the City
          Secretary to file this ordinance with the County Clerk as a notice of
          its enactment and ordering and setting a public hearing on the 17th
          day of February 1998.

          Ordinance Introduction: City Council

          Cm. Casso requested that Roosevelt Street be added to this project for
          paving.

          Florencio Pena, City Manager, reminded council that they will do
          Project 60 in-house, they have already identified additional streets
          and the project has been closed.  He said that we are in the design
          for Project 61 and will sell bonds to fund the project.

          Cm. Casso said that Roosevelt should be done in-house since it is
          extremely narrow, it needs to be paved and has been neglected many
          years.

          Mr. Pena replied that he will research and report as a separate
          project or include this in Project 61 because Project 60 is ready to
          go and will bring the report back to council.

       4. Adopting the provisions of the return to work policies and procedures
          for all city employees including civil service employees pursuant to
          their collective bargaining agreement and civil service rules and
          authorizing the City Manager to implement the policies and procedures
          identified herein pursuant to the City of Laredo's Code of Ordinances.

          Ordinance Introduction: City Council

       5. Authorizing the City Manager to grant a Right-of-Entry Permit to the
          U.S. Government for military construction, training, and operations in
          the area encompassed by the following City-owned blocks, including any
          public right-of-way abutting said blocks: all of Block 672A WD, all of
          Block 666 WD, all of Block 677 WD, all of Block 667 WD, all of Block
          676 WD, all of Block 668 WD, all of Block 675 WD, all of Block 669 WD,
          all of Block 670 WD, all of Block 671 WD, all of Block 672 WD, all of
          Block 660 WD, all of Block 659 WD, all of Block 657 WD, all of Block
          658 WD, all of Block 645 WD, all of Block 644 WD, all of Block 630 WD,
          all of Block 629 WD, all of Block 416 WD, all of Block 415 WD, all of
          Block 414 WD, all of Block 425 WD, and all of Block 426 WD. Said
          Right-of-Entry Permit being described and providing for an effective
          date.

          Ordinance Introduction: City Council

       6. Rescinding Ordinances dated December 22, 1981, closing, vacating, and
          abandoning as a public easement that portion of San Ignacio Avenue
          between Matamoros and Houston Streets in the Western Division of the
          City of Laredo, Webb County, Texas; and Ordinance dated June 21, 1982,
          authorizing the City Manager to enter into the necessary contract and
          to execute a deed for certain City property formally known as the 800
          block of San Ignacio Avenue between Houston and Matamoros Streets to
          Pablo Lozano and hereby reopening as a public easement the above
          mentioned street and providing for an effective date.

          Ordinance Introduction: City Council

       7. Authorizing the City Manager to accept modification of lease agreement
          to an existing lease with Panorama Broadcasting Company approved by
          Ordinance 84-O-160b; which was previously executed November 29, 1995
          without City Council authorization.

          Ordinance Introduction: City Council

       8. Authorizing the City Manager to execute a certain lease agreement
          between the City of Laredo, as lessor, and the Laredo Children's
          Museum, Inc., a Texas Non-profit Corporation, as lessee, for a tract
          of land containing approximately 3.5189 acres or approximately
          153,283.28 square feet, located at the New Laredo Public Library site
          located at the intersection of McPherson Road and Sandman Road, for a

          primary term of twenty-five (25) years commencing January 5, 1998,
          through January 4, 2023, at the annual rental rate of ten and no/100
          dollars ($10.00) with one (1) twenty five (25) year renewal option.

          Ordinance Introduction: City Council

          Florencio Pena, City Manager, stated that there was a change
          to the contract on the amount in the insurance section of $500,000 per
          occurrence for bodily injury to $1,000,000.

       9. Authorizing the City Manager to execute all necessary documents to
          effectively convey title to the State of Texas to the "Surface Only"
          of two parcels of land at the intersection of IH35 and FM3464 (Milo
          Interchange) for the construction of two turning lanes. Said parcels
          being situated in Porcion 20, Webb County, Texas; being generally
          described below and more particularly described by metes and bounds;
          PARCEL 1 - Being a 15,678.00 square feet (0.35992 of an acre) tract of
          land, more or less, out of and a part of the Barbara T. Fasken 489.11
          acre tract of land lying and being in Porcion 20, Abstract 48,
          original grantee, Bautista Garcia, as executed by Palafox Exploration
          Company to Barbara T.  Fasken by deed dated December 17, 1984, and
          recorded in Volume 1089, Pages 391-392, Webb County Real Property
          Records, save and except 8.68 acres conveyed to the State of Texas by
          deed recorded in Volume 1308, Pages 728-735, Webb County Real Property
          Records.
          PARCEL 2 - Being a 5,000.00 square feet (0.1148 of an acre) tract of
          land, more or less, out of and a part of the Barbara T. Fasken 489.11
          acre tract of land lying and being in Porcion 20, Abstract 48,
          original grantee, Bautista Garcia, as executed by Palafox Exploration
          Company to Barbara T.  Fasken by deed dated December 17, 1984, and
          recorded in volume 1089, Pages 391-392, Webb County Real Property
          Records, save and except 8.68 acres conveyed to the State of Texas by
          deed recorded in Volume 1308, Pages 728-735, Webb County Real Property
          Records.

          Ordinance Introduction: Cm. Alvarado

   V.  FINAL READINGS
       Motion to waive the final reading of ordinance #97-O-302,
       #97-O-322, #97-O-323, #97-O-324, #97-O-325, #97-O-326, #97-O-327, #97-O-
       328, #97-O-329, #97-O-330, #97-O-331, #97-O-332, #97-O-333, #97-O-334,
       #97-O-335, #97-O-336, and #97-O-337.

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

      10. 97-O-302  Authorizing the City Manager to execute a License with The
                    Laredo National Bank for a License and Automated Teller
                    Machine Concession for approximately 100 square feet in the
                    downstairs lobby area of the airport passenger terminal
                    located at 5210 Bob Bullock Loop. License term is for five
                    (5) years commencing on the first day the new airport
                    passenger terminal opens for business and will terminate
                    five (5) years thereafter.  Minimum annual rent guarantee of
                    $7,200.00.
                    (City Council) (As Amended)

                    Motion to approve Ordinance #97-O-302.

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

      11. 97-O-322  Authorizing the City Manager to execute a Lease and
                    Specialty Retail Gift Shop Concession Agreement with Jesus
                    Garcia & Associates for approximately 1556 square feet
                    constituting Room 222 at the new airport passenger terminal
                    located at 5210 Bob Bullock.  Lease term is for five (5)
                    years. Rent includes a minimum annual guarantee of $8,400.00
                    or 10% of annual gross sales of merchandise, whichever is
                    greater.  (City Council)

                    Motion to approve Ordinance #97-O-322.

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

      12. 97-O-323  Authorizing the City Manager to execute an amendment to the
                    lease agreement approved by Ordinance No.
                    93-O-029 dated March 1, 1993, with International Bank of
                    Commerce and Sanchez O'Brien Oil and Gas Corporation, a
                    joint venture, as Lessee, for the purpose of allowing Lessee
                    to sublease its leased premises. Leased premises consist of
                    approximately 26,965 square feet of land which includes
                    12,000 square feet constituting of the west portion of
                    Hangar No. 1309 located at 4015 North Jarvis Avenue.  Lease
                    term is for ten (10) years commencing March 1, 1993 and
                    ending February 28, 2003 and may be extended for one (1)
                    term of eight (8) years and two (2) months ending on April
                    30, 3022. Current monthly rent is $1,338.84 and is adjusted
                    annually according to changes in the Consumer Price Index
                    and further adjusted by fair market appraisal on the 10th
                    anniversary.  (City Council)

                    Motion to approve Ordinance #97-O-323.

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

      13. 97-O-324  Closing as a public easement that section of the 2100 block
                    of Hidalgo Street between Santa Isabel and Eagle Pass
                    Avenues, situated in the Western Division, City of Laredo,
                    Webb County, Texas and reserving the entire above mentioned
                    property as a utility easement and approving the improvement
                    plan whereby the Union Pacific Railroad Company has agreed
                    to provide, install and maintain the improvements for the
                    elimination of any and all indications that said property
                    was previously a street at no cost to the City and providing
                    for an effective date.  (City Council)

                    Motion to approve Ordinance #97-O-324.

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

      14. 97-O-325  Closing as a public easement that intersection of Gonzalez
                    Street and Eagle Pass Avenue situated between the 2100 block
                    and 2200 block of Gonzalez Street, situated in the Western
                    Division, City of Laredo, County of Webb, Texas and upon
                    closing of said street the City of Laredo will retain the
                    entire property as a utility easement and hereby approving
                    the Improvement Plan whereby the Union Pacific Railroad
                    Company has agreed to provide, install and maintain the
                    improvements for the elimination of any and all indications
                    that said property was previously a street at no cost to the
                    City and providing for an effective date.
                    (City Council)

                    Motion to approve Ordinance #97-O-325.

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

      15. 97-O-326  Amending the Zoning Ordinance (Map) of the City of Laredo by
                    authorizing the issuance of a Conditional Use Permit for a
                    100 foot communication tower on Lot 3, Block 1, Lam-Rick
                    Subdivision, located at 105 Wright Way.  (City Council)

                    Motion to approve Ordinance #97-O-326

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

      16. 97-O-327  Amending the Zoning Ordinance (Map) of the City of Laredo by
                    rezoning Lot 42, Block 1, El Rancho Subdivision, located on
                    the northeast corner of the intersection of Loop 20 and
                    Rancho Grande Street, from R-3 (Mixed Residential District)
                    to B-1 (Limited Business District). (City Council)

                    Motion to approve Ordinance #97-O-327.

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

      17. 97-O-328  Amending the Zoning Ordinance (Map) of the City of Laredo by
                    rezoning Lot 5, Block 179, Eastern Division, located at 3502
                    McDonnell Avenue, from R-3 (Mixed Residential District) to
                    R-2 (Multi-Family Residential District).  (Eliseo Valdez,
                    Jr.)

                    Motion to approve Ordinance #97-O-328.

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

      18. 97-O-329  Amending the Zoning Ordinance (Map) of the City of Laredo by
                    rezoning 36.034 acres as further described by metes and
                    bounds located on the northeast corner of the intersection
                    of IH 35 and the Bob Bullock Loop, from AG (Agricultural
                    District) to M-1 (Light Manufacturing District).  (Joe A.
                    Guerra)

                    Motion to approve Ordinance #97-O-329.

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

      19. 97-O-330  Amending the Zoning Ordinance (Map) of the City of Laredo by
                    rezoning 9.548 acres as further described by metes and
                    bounds located east of McPherson Road, north of Tiara Trail,
                    from R-O (Residential/Office District) to R-2 (Multi-Family
                    Residential District).  (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-330.

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

      20. 97-O-331  Authorizing the issuance of a Special Use Permit for above
                    ground storage of flammable liquids, on Lots 4 and 5, Block
                    1, IH-35 Industrial Park, located at 9001 San Dario Avenue.
                    (Joe A. Guerra)

                    Motion to approve Ordinance #97-O-331.

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

      21. 97-O-332  Ordinance creating and adopting a new Chapter 33 regarding
                    Environmental Protection and adopting the Articles therein
                    to include new Sections 33-1 through 33-34 thereby adopting
                    a new City of Laredo Hazardous Materials Ordinance, which
                    provides for a Citizen's Environmental Committee; Hazardous
                    Materials Storage and Handling Permits and proce-dures;
                    regulations and penalties for discharges, facilities,
                    transportation vehicles; transportation route designations;
                    and providing for severability; and providing for an
                    effective date.  (City Council)

                    Mr. Gary Jacobs stated there are initiatives by the Federal
                    Government that are alarming specifically by U.S. Customs
                    and by the State of Texas.  He expressed concern about the
                    importance of the City of Laredo as owner and operator of
                    all our bridges
                    not setting any of their authority, as the City Manager or
                    members of the City Council, to federal or state agencies.
                    He said that there is concerned that these federal/state
                    agencies are sneaking up on border cities and taking power
                    away from us to determine how business is done in our
                    communities, specifically there is a proposal before
                    congress that is on the comment period and his purpose is to
                    urge council to urge staff to object in a most strenuous
                    possible term, language, and hire an attorney and/or
                    lobbyist in Washington because this particular comment in
                    the federal registrar requires that you comment before
                    January 16, 1998.

                    He read language from the Customs proposal to give the Port
                    Director the authority to determine what kind of vehicular
                    traffic can occur on which bridges, whenever they want.  He
                    added that if this goes through, it will be impossible for
                    the transportation industry (shippers from Mexico and
                    possibly shipper from the interior of U.S.) to know with any
                    certainty what their transportation costs are going to be
                    because if this regulation is implemented it will give the
                    Port Director complete authority independent of whatever the
                    city might determine to redirect or restrict traffic at one
                    crossing or another.  His purpose is to say that the city
                    should have the authority working in concert with Nuevo
                    Laredo or the state of Nuevo Leon.  He quoted that those are
                    the city's perogative, don't give them up to customs,
                    because federal agencies have enough authority already.   He
                    said this is a huge power grab by customs if we do not
                    object to it.

                    The proposal says, "generally enter the United States may be
                    accomplished at any designated border crossing point,
                    however certain vehicles are imported merchandise carried
                    thereon could be processed more thoroughly, safely, and
                    expeditiously by having the vehicle report to a particular
                    border crossing point designated to handle the identified
                    vehicle or merchandise rather than by allowing the vehicle
                    or merchandise to enter at any border crossing point." It
                    goes on to say, that customs port directors may wish to
                    limit certain traffic in this manner for many reasons
                    including for the purpose of reducing congestion on a
                    particular border crossing point, which is ironic to him
                    because he thinks customs is a generator of congestion not a
                    reducer.   For the purpose of protecting public health and
                    safety, it is not customs perogative to protect the public
                    health and safety of the citizens of Laredo, that is
                    council's responsibility or our responsibility as citizens
                    but he does not think we have to say to customs that they
                    have better judgement than the citizens of Laredo, not
                    customs generally.  In this notification if this is passed
                    they will be able to decide what is on our interest and what
                    is not on our interest.  He said all customs has done so far
                    is completely disregard all the safety issues, of hazardous
                    materials when they mandated that all northbound haz-mat
                    come on the Colombia Bridge.  He added that customs decreed
                    all that coming north without any consideration for our
                    friends and our sister city.  He added there are 11 days to
                    object because it says customs proposes to amend Section
                    123.1 which requires certain types of vehicles or vehicles
                    that carry certain types of merchandise to be routed to a
                    particular border crossing facility within the jurisdiction
                    of port director.  A particular border crossing point so
                    designated by a Port Director it is proposed that the Port
                    Director will communicate this to the public by the same
                    means already specified in Section 123.1 for local
                    instruction regarding proof of arrival.

                    He suggested that council have a staff person designated to
                    do nothing, but monitor anything that has to do with truck
                    transportation issues, and train blocking.

                    Charles Martens stated that the city has to stay competitive
                    or Laredo is not going to proceed as planned.  We live in a
                    free enterprise system, Port Directors are not trained to
                    handle transportation issues, Port Directors run customs
                    officials position on declarations and the laws of crossing
                    goods across our border, they are not in charge of
                    designation of which bridge, which companies use.  This is
                    taking away the free enterprise spirit and burning the
                    citizens of Laredo with a stop in
                    growth.

                    Cm. Valdez feels that they should support some type of
                    resolution opposing what they are trying to do in
                    Washington.

                    Mr. Hall, representing the freight forwarding agents of
                    Laredo, stated the ordinance being asked to adopt is one
                    that is dealt with by a study
                    commissioned by council and they have not received
                    yet, because it is not finished yet and has not been
                    turned in to the city.

                    Mr. Tom Wade, President of the Transportation Association,
                    stated that Washington should not be telling us what we need
                    to be doing here.  The Transportation Industry should be
                    able to come and face the governmental body that is going to
                    regulate them on a local level.  They should have the
                    capability to come before council and address them, ask
                    questions on traffic problems and not someone in Washington
                    D.C. They say the Port Director is going to do it, but he
                    guarantees it will be someone in Treasury in Washington
                    deciding the traffic
                    crosses not the port director.  In reference to hazardous
                    materials he said when council makes recommendations,
                    council should be the ones recommending to the state where
                    they want hazardous material routed inside the city limits,
                    the State of Texas has the final authority, but the city
                    should be making those recommendations.

                    He asked that the city draft a response at least to DPS, to
                    Representative Cuellar, or to Senator Zaffirini and ask them
                    to delay the implementation on this because the state
                    obviously misunderstood the letter signed by certain
                    Councilmembers, and misunderstood U.S. Customs directive.
                    He suggested that they draft a letter or contact the Senator
                    and the State Representative and urged them to have
                    either the State Attorney General or TxDot have them
                    postpone this (the implementation of this) at least
                    until they come back with the recommendations that your
                    consultants have done on bridge restrictions.  He said the
                    Federal Government has the final authority on Hazardous
                    Material routes.  They have the final authority, but council
                    should tell them what is recommended by going through what
                    the consultants have said.  Their organization would like to
                    see that council draft a letter and ask for a postponement
                    of the implementation of the restrictions on Bridge I and
                    Bridge II.  They should not be enforced at least until
                    council has had an opportunity to review what the
                    consultants have to say.  He asked that council wait to
                    receive the report before adopting the resolution.

                    Mr. Pena stated he will send a letter to Major Mills and ask
                    him to send someone to our meeting on the 19th to explain
                    the process of the adoption of this rule.  They will explain
                    that we have received numerous complaints regarding its
                    implementation.

                    Motion to approve Ordinance #97-O-332.

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

                    Motion to reconsider item #97-O-332.

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

                    Motion to table the item.

                    Moved : Cm. Guerra
                    Second: Cw. Montalvo

                    Cm. Casso stated this item does not need to be tabled
                    because this ordinance does is provide a frame work for what
                    they will start doing.
                    He fully agrees that the federal government should
                    not be telling us what to do and is concerned about the
                    federal government maybe giving other cities and unfair
                    competitive advantage over us.

                    Second was withdrawn.

                    Motion dies for lack of second.

      22. 97-O-333  Amending the City of Laredo FY 1997-98 annual budget by
                    reclassifying eleven firefighters to eleven assistant
                    drivers positions authorized by City Council effective
                    January 1, 1998 and authorizing

                    the City Manager to implement said budget.
                    (City Council)

                    Motion to approve Ordinance #97-O-333.

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

      23. 97-O-334  Creating 3 new positions as required by grant, awarded by
                    the United States Environmental Protection Agency through
                    the Texas Natural Resource Conservation Commission in the
                    amount of $161,121.00, with the City designating
                    $107,414.00, in matching funds and/or in-kind services for a
                    total of $268,535.00, to develop "Watershed Protection
                    through Enforcement Program" for the period from November 1,
                    1997 through August 31, 2000 and authorizing the City
                    Manager to implement changes within the budget. (City
                    Council)

                    Motion to approve Ordinance #97-O-334.

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

      24. 97-O-335  Amending Chapter 21 Offense and Miscellaneous Provisions,
                    Article V. Alarm Systems of the Code of Ordinances to the
                    City of Laredo. (City Council)

                    Cw. Moreno was concerned about the fees that the elderly
                    have to pay to register their alarms, and when alarms are
                    set off they cannot get to them in time and shut them off.
                    She asked that the elderly be exempted from these fees.

                    Motion to approve Ordinance #97-O-335.

                    Moved : Cm. Alvarado
                    Second: Cw. Montalvo

                    Motion to exempt the elderly from the fees charged.

                    Moved : Cw. Moreno
                    Second: Cm. Bruni

                    Mr. Pena stated they would like to look at the state laws
                    that allow cities to give preferential treatment to certain
                    groups.  He asked that the item be tabled and to be brought
                    back on the 19th with a recommendation.

                    Motion to table for January 19th.

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

      25. 97-O-336  Approving an amendment to the contract with the Texas
                    Department of Health and budget in the amount of
                    $190,332.00, for the Tuberculosis Elimination Program of the
                    City of Laredo Health Department for the period beginning
                    September 1, 1997, through August 31, 1998 and increasing
                    revenue line item no.  226-0000-323-4042 from $0 to
                    $190,332.00, and increasing expenditure line item no. 226-
                    6062 from $0 to $190,332.00. (City Council)

                    Motion to approve Ordinance #97-O-336.

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

      26. 97-O-337  Approving an amendment to the contract with the Texas
                    Department of Health and budget in the amount of
                    $192,828.00, for the Tuberculosis Prevention/
                    Control Projects of the City of Laredo Health Department for
                    the period beginning January 1, 1998, through December 31,
                    1998 and increasing revenue line item no. 226-0000-323-4071
                    from $0 to $192,828, and increasing expenditure line item
                    no. 226-6076 from $0 to $192,828.00.  (City Council)

                    Motion to approve Ordinance #97-O-337.

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

  VI.  RESOLUTIONS

      27. 98-R-01   Authorizing the appointment of the Assistant City Manager or
                    in the case of his absence, a Senior Department Director as
                    Acting City Manager during times when the City Manager is
                    out of town on City or personal business or is otherwise
                    unavailable to attend to the day-to-day operations of the
                    City.

                    Motion to approve Resolution #98-R-01.

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

      28. 98-R-02   Supporting the construction of Expressway Standard
                    facilities providing direct connection access to I.H. 35
                    from F.M. 3464 (Milo Road) thereby providing for the
                    efficient movement of goods and services over Laredo's
                    proposed International Bridge IV.

                    Motion to approve Resolution #98-R-02

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

      29. 98-R-04   Authorizing the City Manager to enter into and execute an
                    inter-local Governmental agreement between the City of
                    Laredo and the Laredo Indepen-dent School District regarding
                    a joint use and maintenance agreement for the Ochoa/Sanchez
                    Park.

                    Motion to approve Resolution #98-R-04.

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

      30. 98-R-05   Authorizing the City Manager of the City of Laredo to accept
                    an allocation of FY96 redirected funds from the Texas
                    Historical Commission's Certified Local Government Program
                    in the amount of $3,445.20; and authorizing the City Manager
                    to execute the necessary documents.

                    Motion to approve Resolution #98-R-05.

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

      31. 98-R-06   Authorizing the City Manager to execute a Letter of
                    Understanding with Ms. Kay Blakeman Carmona, for the
                    widening of Gallagher Avenue, whereby Ms.  Carmona agrees to
                    voluntarily donate, to the City of Laredo, the East fifteen
                    feet of Block No. 3 and the West ten feet of Blocks Nos. 2,
                    15, and 18, in the Calton Gardens Subdivision No. 1, City of
                    Laredo, Webb County, Texas; 1) the manufactured homes which
                    are located within the proposed alignment, being relocated
                    within the park, at the City's expense, 2) the City bearing
                    the burden of the subsequent costs of all water, sewer, and
                    electrical re-connections to the relocated manufactured
                    homes, 3) the City's bearing of all costs relevant to
                    utility connection fees, into the proposed lines within the
                    Gallagher Avenue right-of-way, 4) the City of Laredo
                    improving that entire section of Gallagher Avenue between
                    Calton and Hillside Roads, with curb and gutter; under a
                    single, unified, construction project at no cost to the
                    abutting property owner, and 5) the provision of ingress to
                    and egress from Ms.  Carmona's properties during project
                    construction.

                    Motion to approve Resolution #98-R-06.

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

      32. 98-R-07   Accepting a grant from the Texas Department of Health in the
                    amount of $78,916.00 for the HIV/AIDS Prevention.
                    Counseling and Partner Elicitation/ Notification (PCPE)
                    Project of the City of the Laredo Health Department for the
                    period beginning January 1, 1998, through December 31, 1998.

                    Motion to approve Resolution #98-R-07.

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

   VII. MOTIONS

      33. Approval of bid specifications and authorization to advertise for bids
          for the following:
          a) Bunker Gear - Fire Department
          b) Ion Chromatogram, - Utilities Department
          c) Light Bars - Police Department
          d) PVC, Ductile Iron Pipe, Annual Contract - Utilities Dept.  e)
          Rebuild Water Meters, Annual Contract -Utilities Department
          f) Vehicles, - Building (2-1/2 ton trucks), Engineering (1-1/2 ton
             extended cab truck), Fire (1-utility 4 wheel vehicle, 3-midsize
             vehicle), Traffic (1-3/4 ton truck, 1-midsize vehicle, 1-cargo
             van), Public Works (5-1/2 ton trucks, 1-cargo van), Parks and
             Recreation (1-3/4 ton truck, 1-1/2 ton truck), Health (2-1/2 ton
             truck), NPDES-Engineering-Environmental (2-1/2 ton extended cab
             trucks)
          g) Scraper/Compactor - Public Works Landfill Operations
             Staff will also request bid pricing for two additional 1/2 ton
             pick-up trucks for the Fire Department. These will only be
             purchased in the event that monies become available from any
             savings which may be realized from the purchase of this equipment
             with C.O. proceeds.

          Motion to approve.

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

      34. Approval of bid specifications and authorization to advertise for bids
          for the purchase of library books (two opening day library book
          collections, one for English Language and one for Spanish Language
          materials).

          Motion to approve.

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

      35. Approval of the construction plans and specifications and
          authorization to advertise for bids 1997-98 Street Recycling Project
          (162 Blocks) with tentative award on February 17, 1998.  Funding is
          available in the Capital Improvement Fund Street Materials.

          Motion to approve.

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

      36. Approval of the construction plans and specifications and
          authorization to advertise for bids for the Laredo Independent School
          District (LISD) Ochoa-Sanchez Park located at Locust Street and
          Monterrey Avenue with tentative award on February 17, 1998.  This is a
          City of Laredo/LISD Project with funding available from Community
          Development Ochoa Park.

          Motion to approve.

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

      37. Authorization to advertise for Request for Proposals (RFPs) for
          consulting services to provide surveys, design and preparation of
          plans and specifications for an 18 Inch Diameter Sewer Line on
          Hillside Road from Yeary Street to IH-35 to relieve a 90 block area of
          sanitary sewer surcharges.  Funding is available in the Sewer System
          Hillside Trunk Line.

          Motion to approve.

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

      38. Authorization to advertise for Request for Proposals (RFPs) for
          consulting services for design activities or program management for
          the Texas Water Development Board-Funded "Mines Road and Highway 359
          Colonias Program."  Funding is available in the TWDB Colonias Project
          Advertising Expense.

          Motion to approve.

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

      39. Authorize the purchase of nine mobile radios for the Police Department
          through the Houston Galveston Area Council of Governments (HGAC) -
          Cooperative Purchasing Program, in the total amount of $29,267.71.
          These voice secure radios will be purchased through the cooperative
          purchasing contract vendor Motorola. This equipment is needed for the
          nine new vehicles ordered for the Police Department in December.
          Delivery of these radios is expected within sixty days.

          Motion to approve.

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

      40. Award of annual service contract to the LOWEST BIDDER MEETING
          SPECIFICATIONS, Castaneda's Dump Trucks, Inc., Laredo, Texas, in the
          estimated amount of $42,000.00, for providing hauling services. This
          contract vendor will be hauling approximately 1,000 cubic yards of dry
          sludge per month from the Water Treatment plant to the City landfill.
          The City did receive a lower bid from R.  Aguero Trucking, Laredo,
          Texas, however this vendor is not a registered hauler with the Texas
          Natural Resources Conservation Commission (TNRCC) and the City of
          Laredo. These certifications and permits are required by the TNRCC to
          transport this material.

          Motion to approve.

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

      41. Award of a construction contract to the LOWEST BIDDER, American
          Contracting Corporation of Texas, Laredo, Texas in the amount of
          $152,000.00, for the Re-Roofing of the Center for the Arts Building
          Project located at 500 San Agustin Avenue, Old Mercado Historic
          District.  Funding is available in the Capital Improvement Fund Center
          for the Arts Project.

          Motion to approve.

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

      42. Award of an engineering contract to Camp, Dresser and McKee, Austin,
          Texas, for an amount not to exceed $36,350.00, to provide professional
          engineering and construction services to design and prepare plans and
          specifications for the purchase, installation, and start up of the
          second belt filter press at the Southside Wastewater Treatment Plant.
          Funding is available in the Sewer System South Laredo Plant Expansion.

          Motion to approve.

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

      43. Approval of change order no. 1, a decrease of $6,496.54 for the
          balance of quantities actually constructed in place, acceptance of the
          City of Laredo and the Laredo Independent School District (LISD)
          Sidewalk Program (13 LISD Schools) for Buenos Aires Elementary,
          Ochoa/Sanchez Elementary, J.C.  Martin Elementary, D.D. Hachar
          Elementary, Kawas Elementary, Ligarde Elementary, Daiches Elementary,
          and Zachary Elementary Schools, for Cigarroa Middle, Memorial Middle
          and Lamar Middle Schools, and also for Cigarroa and Nixon High
          Schools, and approval of final payment in the amount of $63,988.61, to
          Pete Gallegos Paving, Inc., Laredo, Texas. The original contract
          amount was $313,682.32. This change order will bring the total
          contract amount to $307,185.78. Funding is available in the Capital
          Improvement Fund School Sidewalk and in Community Development 21st
          Action Year Sidewalks and 22nd Action Year Tomas Sanchez Sidewalks.

          Motion to table.

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

      44. Authorizing the City Manager to accept and execute a 1996-97 urbanized
          area formula program grant amendment (No. TX-90-X406-01) from the
          Federal Transit Administration in the maximum amount of $4,700,312.00,
          (Federal Share) an increase of $2,330,000.00 from $2,370,312.00; and
          providing for grant funds to be deposited in the Mass Transit
          Department accounts.

          Motion to approve.

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

      45. Authorizing a refund of $23,359.33 to Royal Joint Venture to settle a
          $29,016.13, overpayment to the City on sewer charges related to the
          Unitec Wastewater Treatment Plant, and an underpayment of $5,656.80,
          on water availability charges for Unitec Industrial Center Phase 5.

          Motion to approve.

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

      46. Approval of agreements between the City of Laredo and the following
          Little League organizations:
          a) Del Mar Little League
          b) Hillside Little League
          c) National Little League
          d) Rio Grande Little League
          e) Gateway Girls Softball
          f) Northwest Little League
          g) American Little League
          for the use of baseball fields to conduct their programming.  The
          agreement is for the term of one (1) year from the date of approval,
          with the provision for renewal on an annual basis.

          Cw. Moreno requested that staff proceed in working an agreement for
          the Optimist Park.

          Motion to approve.

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

      47. Approval of an agreement between the City of Laredo and Laredo
          Independent School District, for the use of Benavides Softball Complex
          and Laredo International Airport Base II field to conduct their girl's
          softball programming. The agreement is for the term of three (3)
          months beginning February 1, and ending April 30, 1998.

          Motion to approve.

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

      48. To approve and authorize the City Manager to enter into a contract
          between the City of Laredo and Grupo Empresarial, Nuevo Laredo, S.A.
          De C.V., a Mexican Corporation which runs the Tecolotes De Los Dos
          Laredos, a professional 'Triple A' Mexican Baseball League, for twenty
          (20) regular season games to be played at Veterans Field during the
          1998 season.

          Motion to approve.

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

      49. To approve and authorize the City Manager to enter into an agreement
          with Martinez and Associates and Baker and Botts, L.L.P., to monitor
          activities of the legislative and executive branches of Texas State
          government for the term January 6, 1998, through September 30, 1998,
          at a monthly cost of $4,000.00, plus pre-approved expenses.

          Florencio Pena, City Manager, explained that they have met Mr.
          Martinez and have drafted an agreement that basically provides for a
          retainer contract with his firm that will represent the City in Austin
          on matters dealing with the legislature.  The retainer will provide
          monitoring of all activities as they affect the City, provide monthly
          reports, provide an initial meeting with the City Council and key
          staff people and possibly pertinent private sector people to discuss
          the interim studies that are currently done by legislature that may
          affect the city.

          He added that in the contract we do provide for additional services at
          an additional cost if and when they become necessary, for example, if
          there is a topic that we desire further research or actual advocacy to
          be performed that we may need to get with the firm and the private
          sector to see how we are going to fund those additional advocacy
          efforts.

          This $4,000 retainer will provide a beginning basis or a start to
          develop a relationship as we have with our consultant in Washington,
          to prepare us for the 1999 Legislative Session.  We will be evaluating
          how our relationship works and around the summer of 1998 we would be
          in a position to have a brain storming session with them and the
          private sector to develop our Legislative Agenda for 1999, at that
          point a new contract may need to be developed, but that would be into
          the next budget year which would be on October of 1998 to September of
          1999.

          He added that there are $12,500 budgeted and they need an additional
          $2,600.00.

          Cm. Perez said that one of the things that they had instructed was for
          the Metro Government to meet with the County, because there was
          mentioned that they were interested in joining in or at least start a
          dialogue with them and with the private sector.  He feels that before
          going into any contract that they (County and private sector) be
          included so they can express what their ideas are and what their
          mission is.

          Cm. Bruni stated that he does not think the Metro Government
          Committee met with the liaisons from the County and it was his feeling
          that this council had asked that committee to meet.
          He wants to know what the County's position is in reference to
          financially assisting the city to have this liaison in Austin and
          maybe even having somebody in-house.

          County Commissioner Roque Vela stated that anytime that the City and
          the County can join forces for the common good, and for the good of
          the taxpayers, he thinks it is something that they need to do.  He
          added they are correct, the Metro Government Committee never met and
          they should be given the opportunity to meet and have dialogue to see
          what is best for the City and the County and be able to make the
          dollar to go a long ways and be able to put the cost down on
          taxpayers.

          Motion to table the item, set up a meeting with the Metro
          Government Committee between the City and the County at the earliest
          convenience, plus the private sector, and work out a contract and
          define the issues that they are going to concentrate in, and that the
          item be brought for the next meeting.

          Moved : Cm. Bruni
          Second: Cw. Moreno
          For:  4                       Against:  2         Abstain:  0
                                        Cm. Valdez
                                        Cm. Guerra

VIII.  CITY MANAGER'S REPORT

      50. Presenting a status report on the progress of the Santa Isabel Water
          Well with possible action.  Requesting authorization to hire NRS
          Engineers to conduct research on a well water pre-treatment process to
          protect the Reverse Osmosis System from variations on water quality,
          for $11,500.00, as an
          amendment to their existing contract.

          Fernando Roman, Utilities Director, stated there are two issues, the
          first is the need to conduct a pre-treatment study to determine how to
          best protect the $1.2 million investment made.  They now have in place
          membranes that are very delicate, the process to take the salt out of
          the water and produce good water and they are now operational.  He
          added they we do not have customers yet, but they can operate.
          They have been looking at some wells around the area which also have
          slightly different qualities of the water that all has to do with the
          useful life of the membranes.  They can use the water as is and the
          membranes will have a certain life, then they would have to replace
          them which is the most expensive part of the process.

          He proposed that on a continuous effort to learn all the lessons that
          they need to learn, to see if indeed this
          organization and the exploration of ground water has a place in our
          long term pursuit of a water supply and that is that we deal with the
          pre-treatment issues.  Since we do not know what variations of water
          we could get from the different wells, but they do know that they need
          to protect the membranes to look at the possibility of having pre-
          treatment study to see how to tackle all these undesirable things that
          could ruin the membranes.  He was asking that council consider
          amending the contract with NRS to look at a pre-treatment process to
          protect the membranes.  He said in the past there was comment on
          whether we continue putting monies on this project or do we mothball
          it.  He feels they should not mothball it, and feels we need to learn
          all the lessons we can because at some point
          they we were looking at putting some wells in the city as a secondary
          source of supply.  He recommended that we continue learning from this
          water well while we can, he does not think this is a master investment
          after what has been done, the
          pre-treatment equipment that he is recommending to study could become
          a $100,000-$200,000 issue, it does not have to be done
          right away, but he thinks it is important that we know what we have to
          deal with so that we can either count with this groundwater supply or
          discount it.

          The second issue is that they have explored the possibility of putting
          a water point at the Santa Isabel well.  The county has relocated the
          water point or is in the process of
          relocating that from the vicinity of Mines Road and IH-35 to the La
          Bota Ranch.  They had requests that the city and the county put a
          second water point at the Santa Isabel Well.  He
          added that Penitas has about 400 individuals.  A person at Penitas
          would have to drive approximately from the junction approximately
          seven miles to the existing water point.  When that water point is
          relocated three miles closer to them, they will only have drive four
          miles from the junction.  If they were to put a second point, at Santa
          Isabel they would also have to drive four miles to Santa Isabel, so
          for them (Penitas residents) it is going to be identical to go to the
          La Bota Ranch or to go to a city sponsored water point at the Santa
          Isabel.

          The other population that would benefit from this is would be Los
          Minerales, and a sparse population along the Mines Road that would
          benefit from a short distance to Santa Isabel.  The drive could be
          anything from one to four miles.  He recommends that they let the
          second water point (La Bota water point) take place and see how it
          works because it will have good access.  He added that the county is
          planning that it have a driveway and drainage.  He said they are
          looking at $30,000-$50,000 cost.

          Cm. Bruni thinks it is completely inappropriate for the city to
          discontinue its investigation of groundwater.  He thinks that it is
          something that they should even be a year or two more advanced than
          what they are right now.  He feels that they should continue their
          evaluation of groundwater under Webb County because as a community we
          cannot only have one source of water.  It was also called to his
          attention that Amistad Dam is approaching another record low and we
          cannot have the community just waiting to see if mother nature is
          going to rain that particular watershed.

          Motion to authorize the hiring of an NRS Engineering to conduct
          research on a well water pre-treatment process to protect the Reverse
          Osmosis System from variations on water quality, for $11,5000.

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

      51. Status reports regarding the implementation of the City of Laredo FAR
          PART 150 Airport Noise Compatibility Program and installation of the
          Terminal Automated Radar Display Information System (TARDIS). And
          report regarding cost of extending the Air Traffic Control Tower hours
          of operation to 24 hours per day.

          Jose Flores, Airport Director, reported that on the Noise
          Compatability Program, Runway 17L/35R was reopened on Tuesday,
          December 23rd, this will have positive noise abatement benefits,
          minimal but it will help some in reducing the noise on the south end
          of the airport.  Also, as of December 29th,
          FAA has not released any funding to any airport in the country for
          noise abatement purposes.  We are still being considered, but they
          have issued no grants for any airport across the country.

          Also, FAA is responding to a congressional inquiry regarding Laredo's
          noise abatement program, so hopefully we will get word from FAA on
          funding.

          Regarding the TARDIS issue, they received a faxed Memorandum of
          Understanding, from FAA that has been signed by FAA.  They are waiting
          to receive the originals so that they can sign off on it.  This is a
          prerequisite before they can start with the installation of the
          system, it is tentatively scheduled for January 22nd, they have all
          the equipment purchased on hand, they are just waiting for the
          execution of the Memorandum of Understanding and they will be here
          tentatively on January 22nd.

          Third, regarding keeping the control tower opened 24 hours a day, the
          additional cost would amount to approximately $80,000 yearly.  They do
          not have the monies budgeted for this purpose, they can also say that
          between 10-6 a.m. they average about two operations per hour and the
          noise will be there whether the tower is opened or not, it will not
          diminish much.

          Cm. Bruni asked they find the necessary funding to man the tower 24-
          hours and get somebody on that TARDIS System.

          Mr. Flores stated the traffic averages about two flights per hour
          between 10-6 a.m., it is their goal to try to secure 24-hour coverage,
          they have made the request to FAA to fund that since they are funding
          approximately 85-90% of the cost of the tower.  It is their goal to
          hopefully one day be there 24 hours, they just don't have the monies
          at this time.

          Cm. Bruni asked that staff send a letter to our State Representative
          and our Senator to help us get the necessary funding.  He thinks that
          we also need to have somebody on the TARDIS System, because it is fine
          that the Houston control is looking over our skies, but they have a
          lot more skies that they are looking at also, and with the new jet
          service that we might be getting we are going to have different
          airliners servicing the passenger community, whereas we need to have
          everything in place.

      52. Presentation with City Council concurrence regarding the plan to
          relocate various City Hall Departments to other City buildings.

          Motion to proceed with Community Development to move to the Transit
          Facility.

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

      53. Update on the status of the Colonias Facility Plan and financial
          application, with possible Request for Executive Session pursuant to
          Section 551.071 of the Texas Government Code to consult with legal
          counsel concerning contemplated litigation regarding contractual
          provisions with the consultant Paul Garza and Associates, and return
          to open session for possible action.

          Roque Vela, County Commissioner and Commissioner that represents the
          colonias in Hwg. 359, was before council concerned about the lengthy
          delay of the project.  He briefed council on the results of the
          meeting held in Austin that Senator Zaffirini called, where there were
          county and city representatives, the Texas Water Development Board as
          well as the Environment Engineers and the Chief Engineer (Paul Garza
          and Associates) and what came out of that meeting.  The facility plan
          cannot be completed until June, 1998 and added that this frankly is
          too long.  This plan has been delayed long enough, it should have been
          completed about two years ago, and we should be under construction.
          He asked that council use all the resources available to them to bring
          this project to a completion, to submit the facility plan to the Water
          Development Board so they can approve it, get financing so they can
          move forth and provide the basic needs to the people of the colonias.

          At this time Council discussed item #49 and then returned to item #53.

          Fernando Roman, Utilities Director, reiterated the conclusion that
          Commissioner Vela presented regarding the meeting in Austin.  He added
          that the facility plan and the other reports associated with that, the
          Environmental Reports and the Financial Application are very much
          completed.  There is one problem, that is that the project is at a
          stand still because there is a conflict between the main contractor
          and the sub-contractors in the sense that there is a need to pay.  The
          contractor needs to pay the sub-contractors for them to release the
          information that is necessary for the TWDB to review the project.  The
          information has been produced, the environmental work has been done,
          and everything is on somebody's hands.  He said we are at a standstill
          because the parties that need to exchange that information are not
          doing so due to a failure to pay by the main contractor.  He added
          that Mr. Garza is telling us he has the ability to pay in a very short
          time.  Assuming that these problems are resolved and that we
          immediately begin the review process with TWDB then we are looking at
          approximately six months for them to finish all the review from the
          technical review which would begin as soon as the contractor produces
          the final copy and he is assuming that will occur in about 30 days.
          On February 1st if the board has that copy, then they can produce the
          review in about 7-30 days, so they are looking at a worst case
          scenario which would be March 1st which is the technical review
          completion.  Once that review is done, if there is anything to do on
          part of the contractor to fix or to change something, then that would
          take an additional amount of time.  If there nothing else to do, then
          the documents are submitted to the Financial Analyst with the board
          which would also take 30-60 days to complete the review.  They were
          clear in telling us that the review is not necessary that it is a
          matter of staff taking their time to do it, but that there is a
          certain amount of time that they need to produce the agenda items to
          go to the board to produce all the mailings to produce public hearings
          and some of the things are not necessarily a person on the desk
          reviewing the matter.  The board was very candid, they told them that
          if every goes perfect that we can expect funding by June or July.

          Motion to go into Executive Session pursuant to Section 551.071 of the
          Texas Government Code to consult with legal counsel concerning
          contemplated litigation regarding contractual provisions with the
          consultant Paul Garza and
          Associates.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  6

          After Executive Session Mayor Protem Perez announced that
          no formal action was taken.

          Mr. Roman clarified and made it clear what the project is.  Most of
          the work has been done by contractors working for Paul Garza &
          Associates who is our main contractor.  We have a contract with Paul
          Garza. Hogan & Associates and Crane Engineering, etc., have done work
          for Paul Garza & Associates, the work is approximately 95%, there is
          coordination issues that need to be put together, because of problems
          with payment that Paul Garza has not made to the sub-contractors, the
          sub-contractors refuse to put the project together.  This refusal is
          setting us back in the schedule to where nothing will move until they
          get paid.  He added that the city has paid Mr.  Garza for the work
          that has been produced or presented by him in turn he has had problems
          paying the sub-contractor.

          Mr. Paul Garza stated there are some very minor things that need to be
          done to complete the work as far as the Historic Commission is
          concerned, and as far as all the state agencies and it all has to do
          with the fact that there was a supplement required as a result of the
          finding of a Johnston Frankenia Grass that is in the endangered list.
          There are five lots involved in a strip of about 250 feet long of
          pipe, it really is a minor thing, unfortunately it has held up other
          things from happening.  He added that the work has been completed as
          far as the engineering report and environmental report except for the
          final phase of that environmental because of the supplement he just
          mentioned.  His contract with the sub-contractors was such that they
          would bill us on hourly basis and they received the bills sometime in
          June 1997.  They requested that they submit this on an hourly
          breakdown because the state in order to reimburse the city requires
          that all of the items be done on an hourly basis.  They have since
          received this from one of the contractors, and the other is still
          working on it.  The supplement itself which was to be handled by the
          county paying that amount of $14,900.00 that matter is still
          unresolved as far as the county coming through.  At the time that they
          met in Austin they were told that matter has not officially completed
          so Mr. Roman and him have been talking about paying that item and
          receiving the credit back from the county at an appropriate time when
          they do their paperwork.  Most of the delay is as a result of the
          sequence of hearings and the review cycle that the state
          has to go through.  The engineer supervisor at the state level
          understands fully that the only thing they have to do at this point
          and time was to modify that one line that had to do with this grass
          that was encountered.  The budget itself has not changed, that means
          that there will be no other review beyond that item and he thinks
          there will be no delay between them and the state.   He added that
          Hogan Corporation had billed them for 80% of the work, they asked them
          to break it down in an hourly basis and that has been completed.  The
          second item of completing this minor adjustment was a $3,000 addition
          to his contract which at a meeting that he held before in the City
          Manager's agreed to pay that direct.  As far as he knows that has not
          been done, in any event this are minor matters and the will be taken
          care of within 10 days.

          Cm. Alvarado stated that this is a joint project, there has been a lot
          of pressure because this project should have been completed several
          years back and now this council is being lead to believe that the work
          has come to a stand still because of some financial obligations that
          Mr. Garza has with the subcontractors and they do not want to take the
          risk of losing this particular project because some money is owed to
          the subcontractors.  Mr. Garza is telling us that he will take care of
          the subcontractors within the next couple of days.
          He quoted that "we have come to a point now where we are reaching a
          very critical point, where we can lose the total project and we need
          to have some assurances from yourself that this will be taken care of
          and we can't wait another two weeks we need to hear from you that this
          matter will be taken care of.  This council has been led to believed
          that you have been paid for these services and that you have not paid
          the sub-contractors for the work that they have done already."

          Mr. Garza stated there is some truth to that, but they have paid some
          of them, and the problem is not so much the paying as much as
          completing their chores pursuant to their contract.  What they will
          required them to do now is to submit drafts.
          He assured council that they are going to complete the project.

          Cm. Casso stated that if this issue was not taken care of by January
          19th, council will be forced to come with the money and they will have
          to seek legal action against Paul Garza and they do not want to do
          that.

          Motion to authorize the City Manager to take all legal action
          necessary, including filing suit, to recover losses/costs by non-
          compliance with contractual provisions and breach of contract by Paul
          Garza and Associates.

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

      54. Request for Executive Session pursuant to Section 551.071 of the Texas
          Government Code to consult with legal counsel concerning the pending
          litigation styled Royal Joint Venture et. al. v.  Louis H. Bruni,
          individually and in his Official Capacity as City Council Member, City
          of Laredo, Civil Action No. L-95-136 in the U.S. District Court for
          the Southern District of Texas, and return to open session for
          possible action.

          Motion to go into Executive Session pursuant to Section 551.071 of the
          Texas Government Code to consult with legal counsel concerning the
          pending litigation styled Royal Joint Venture et. al. v. Louis H.
          Bruni, individually and in his Official Capacity as City Council
          Member, City of Laredo,
          Civil Action No. L-95-136 in the U.S.  District Court for the Southern
          District of Texas,

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

          After Executive Session Mayor Protem Perez announced that
          no formal action was taken.

          Motion

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

  IX.  COMMUNICATIONS

          A) Cm. Casso wants a report from the City Manager regarding why it is
             that one of the candidates has a police officer with a police car
             in a political ad commercial because that is not only wrong, it is
             not fair and is illegal.  He wants to know how that happened.

          B) He noticed that on airport property, on city buildings, that the
             city owns some that are being used and some that being leased,
             there are also many political signs and wants to know under what
             authority do we grant they are doing this.  He stated it is
             inappropriate to have mayoral candidates place their signs on city
             property.

             Luis Landin, Traffic Director, stated there is an ordinance
             prohibiting posting of signs on public right-of-way.  He said that
             his staff will remove the signs that are in violation and they can
             be picked up at the traffic compound.

   X.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

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

       1. Discussion and possible action regarding a request by the Community
          Action Agency (CAA) for City of Laredo aid in helping to insure that
          the Elderly Nutrition Program is not closed due to a lack of funding.

          Jose Valdez, Director of Community Action Agency, requested funding
          assistance from the city to continue the program in the amount of
          $20,000 and keep the program going until
          September 30th.  The county has indicated that they will discuss and
          match $20,000.00 if the city comes up with $20,000.  The people that
          are serviced by this program are only local people in the city.  He
          added there are five sites in the city and the services are not
          provided outside city limits.  The sites where they provide services
          are: Azteca, Base Site, Buenos Aires, Mother Cabrini, and Santa Cruz
          (Ladrillera).

          Mr. Pena stated the city has a contract with Meals on Wheels for
          $18,000.00, last year they asked for additional $25,000 to fund the
          elderly nutritional program and the contract was amended with Meals on
          Wheels to provide the additional $25,000.

          Motion to instruct the City Manager and staff to do everything
          possible to look for additional monies to amend the contract.

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

          Mr. Pena concluded by saying they will bring the contract on the next
          meeting.

    B.  Requests by Councilmember Louis H. Bruni

       1. Discussion and possible action regarding the widening and storm
          drainage improvements to Cherry Hill Drive between Calton Road and the
          new Mercy Hospital.

          Rogelio Rivera, Engineer Director, stated they are looking into the
          issue, and also working that the a subsequent item,
          the widening of Calton Road from McPherson to that
          intersection where there is the "Y" at Cherry Hill.  He said the will
          be looking at the two projects together.  The one on Calton is on the
          bond sales, the other one, the MHMR has finished their new facility
          and they will be looking for additional right-of-way on that stretch.
          He added that they have to enhance the drainage there because it is in
          bad shape.  They will develop a cost estimate and bring it back to
          council.

       2. Discussion and possible action regarding the widening and sidewalk
          improvements to Calton Road between McPherson Avenue and Cherry Hill
          Drive.

          Note:  This item was covered by item #1.

       3. Requesting a briefing on the City's Street Cut Policy with possible
          action.

          Cm. Bruni stated there are streets with brand new overlay with patches
          and the public looks at it like we are not properly planning our
          street cuts.

          Mr. Pena stated that the city streets were not paved until 1980's,
          many of those water/sewer lines were put in back then and they were
          not put in with service lines so many streets that get paved end up
          being cut as a result of poor planning in the 1700, 1800's and early
          1900's.  Recently there were more than 250 blocks a year and staff
          does the best they can, they have delayed some projects trying to find
          where water lines need to be replaced.  There will be occasions where
          they are going to miss a water line that is going to break because of
          the weather, and having to cut the street.  He thinks the number of
          incidents have come down significantly from what it was in the past,
          but they will try their best to keep that from occurring, but in the
          older parts of town service lines were not put in, and the streets
          were paved.

          Cm. Bruni suggested that the city investigate the possibility of
          buying an underground boring machine instead of cutting across.  He
          requested that staff get a cost estimate on a boring machine and that
          the city do not allow other subcontractors to patch the streets, that
          they be done in-house and that they be billed appropriately, that
          staff figure some kind of mechanism that would trigger when there is a
          break in the street and utilities department goes in there to fix the
          break that there is some triggering mechanism that tells Public Works
          to go and patch the holes created.

       4. Presentation by Tex-Mex Railroad representatives regarding the
          donation of a parcel of property situated between Arkansas Avenue and
          New York Avenue to provide traffic access to area residents.

          Mr. Pena stated the paperwork has been submitted to Tex-Mex,
          they are waiting for their response, there are funds available and
          they are in the process for construction plans for that project.

          Erasmo Villarreal of Community Development stated that the agreement
          is in Tex-Mex hands and they have not received it yet.  It is their
          understanding that they will make the donation.

          Mr. Rivera stated that as far as when the project will be started on
          the proposed right-of-way, they have done the staking out and are
          ready to go with the design, but he understands that we do not have
          the transfer of the property yet.

          Mr. Pena stated they will call TxDot to see what the delay is and will
          follow-up.

       5. Discussion and possible action regarding the Airport Advisory Board's
          recommendation concerning the building remodeling of the Laredo
          Morning Times building leased from the city.

          Mr. Charles Martens, Airport Advisory Board Member, stated that they
          had a presentation on this issue, they listened to their position, the
          board took a policy to recommend but with the stipulation that they
          also consult with FAA for a couple of various reasons.  They
          understand everybody's position here was genuine, they were kind of on
          a deadline type of a thing, like a hurry up and do by January 1st.
          They were not very happy about having this brought up on those kinds
          of grounds.  They do not believe it was staff's fault or the Laredo
          Morning Times position either.  He has talked to the publisher of the
          Times and he wants to do what is right in this particular case.  They
          had a couple of opened comments on this, one of which brought up a
          security measure which he feels is genuine because at one point
          earlier in the history of Laredo they had also been a petition brought
          before the Airport Advisory Board to locate a halfway house for
          misdemeanor offenses and at that point FAA along with the Federal
          Judge said that this was not a compatible use.  They didn't want even
          low in-crime people out there near the airport for security matters.
          The request at that point was for a site across from the terminal
          (west of the terminal), but this particular site for security is
          separated by a couple of hurricane fences.  Why would we want to put
          federal prisoners next to the airplanes, this was something he wanted
          to consult FAA on.  The other problem brought up was, the people that
          will be there work during the day, but can you imagine sleeping there
          at night, the prison fellow was not worried about the quality of life
          for these prisoners or he would not have asked to put these people 250
          yards from jet engines.  There are people in the Heights area that are
          500-600 yards. away that can't sleep at night and we are trying to
          house them.  He was disappointed with the prison people himself, he
          personally did not think it was to much of a compatible site and too
          much of good use for us to be housing people with probably a felon
          record or they would not be a federal prisoner.

          Jose Luis Flores, Airport Director, stated that the Airport Advisory
          Board acted on a recommendation from staff, they have received the
          request from the Laredo Morning Times that they were proposing to
          sublease this property, they checked the lease agreement that they
          have with them, the lease agreement permits them to sublease without
          the city's prior approval provided that the lessee shall not sub-
          leased for the purpose of a lounge, dance hall, club or laundry-mat.
          They have the rent to sub-lease without the city's approval.  The
          lease also states that the proposed use has to comply with all local,
          state and federal laws and regulations.  They have consulted with FAA
          and heard from one office in FAA, they have since referred us to
          another office (the Civil Aviation Security Office) in Houston, they
          are waiting to hear from them on this issue to make sure that it does
          comply with their requirements, they should be hearing from them in
          the next couple of weeks.  The lease requires that the lessor has to
          approve the plats and specifications for any construction work done on
          the property and staff with this information presented and made
          recommendation to the board to approve it and the Advisory Board
          recommended approval subject to meeting all the local, state, and
          federal laws and regulations and provided that the property fenced
          off.

          Cm. Bruni questioned the red stop work sign and said that since the
          City Council has not approved any plans for remodeling why does there
          have to be a stop work order on the front door.

          Mr. Flores explained that they had to stop work order because they
          were proceeding to do the work without a building permit and they did
          not have authority to do the work.

          Mr. Pena stated they proceeded and we put a stop work order, they
          ceased construction, at this point we are waiting for the Civil
          Security Field Office to give us their response regarding the
          appropriateness of that use at that location.  He said they are
          waiting the response from the Civil Aeronautics Security Field Office
          and secondly, they do need to see their plans so that we can review
          their conformity to what we feel is need for that area.  One of the
          additional requirements is that a fence be built around it and he
          thinks that we can make a request for reasonable modifications to that
          building.  He feels that the fence would be required, because we have
          an airport there that we are concerned about.

          Cm. Bruni clarified if the Airport Director's recommendation is that
          we receive the paperwork from FAA concerning the security issues and
          also if it is acceptable to put this halfway house there.

          Mr. Pena stated that is basically what they are asking for.  The only
          other issue is the concurrence by the lease holders to see if they
          intend to include the fence.

          Cm. Bruni stated it is prudent for council to wait for communication
          from FAA and then bring the item back.

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

       1. Discussion and possible action regarding the Hachar Road.

          Cm. Casso wants a timetable and see if we can start going forward on
          the right-of-way acquisition, because with the Fourth Bridge becoming
          available in about two years we are going to need another road and
          feels that they should start going forward on this.

          Carlos Mejia, representing George Hachar, stated this is a project
          that needs to take off because it represents planning ahead.  It is a
          dangerous road, there are two kinds of mixed traffic, some going to
          bridges and other to the industrial parks.  Once Bridges I & II are
          closed then all the truck traffic is going to Bridge IV or Colombia
          and there is only Mines Road and IH-35, but IH-35 in the future will
          only lead to the Mines Road so we will be in need of more east/west
          arterial roads.  The major thoroughfare was developed by the city and
          it indicates that in the future there will be two roads, from IH-35 to
          Las Tienditas and the other in the vicinity of Pico Road to IH-35.

          Keith Selman, Planning Director, stated they had posted an MPO
          meeting.  At that time the discussion and directive by council at that
          time was that in the updating of the Master Plan to look at moving the
          outer loop up in terms of project periods, because right now it is
          towards the end of the 20-year plan.
          The ideas being to move it up and during the amendment process of the
          Transportation Plan which is what they will do.
          What is being called the Hachar Road is considered the outer loop,
          that is an unproposed on-system road, that is a state funded highway.
          The Pico Road is not proposed to be on system rather proposed to be
          off system, meaning that it will be done by the developer, the city or
          some other funding mechanism other than through state funding unless
          it were to be put in the system.

          Cm. Casso wants that we get the process of the study going on, get a
          timeline, gets cost, and start working on the right-of-way
          acquisition, and that they start with the Hachar Road to make the
          outer loop a reality and connecting the southern most extreme with the
          northern extreme and start to connect it.

          Cm. Valdez went on record, stating that we should be thinking about
          the outer loop and get going.

          Motion to go ahead and do a survey for the Outer Loop and incorporate
          the Killam Road.

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

    D.  Requests by Councilmember Cecilia May Moreno

       1. Discussion and possible action regarding a request for the placement
          of "No Parking" signs on the east side of the 1600 Block of Cedar
          Avenue.  (Co-sponsored by Cm. Alfonso Casso)

          Motion to that a "No Parking" signs be placed on the east side
          of the 1600 block of Cedar Avenue.

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

    E.  Requests by Councilmember Eliseo Valdez Jr.

       1. Status report regarding the pedestrian bridge for the Northeast
          Hillside Recreation Center.

          John Vidaurri, Assistant City Manager, stated that this is a 1997-98
          CIF Project, they have approximately $50,000.00 budgeted for it, they
          will get the project completed before the end of the year.  This is a
          project that was discussed with the Marine Corp of Engineer, they have
          agreed to do the project, but can not get to it until July or August
          of this year.  There is another option and that is perhaps having the
          Public Works crew do the project in-house.  There have been
          discussions with Mr. Guerra regarding the project for the pedestrian
          bridge and he feels he has the capability of doing it in-house at a
          less cost that what they have budgeted for it.

          Cm. Valdez feels that $50,000 is more than enough and thinks the they
          cannot wait until the end of the year.  He wants to see what can be
          done to get the project going on a fast track.

          Mr. Pena stated that it can be done as soon as possible, they can
          probably start it in 30-60 days.

          Mr. Vidaurri stated the are looking at 90-120 day period before they
          can have that bridge in place.

       2. Status report regarding the street markings for school children
          crossing Springfield Avenue on their way to Alma Pierce Elementary
          School.

          Cm. Valdez wants to know the status on the street markings and see if
          they can install school flashing lights.

          Mr. Landin stated they conducted a study, there were 42 children that
          cross Eistetter and Springfield.  Form the city
          study conducted by the Traffic Engineer, they are recommending a
          school flasher on that area that will go all the way to Bustamante and
          Springfield to cover the area that most of the children cross.  They
          will ask LISD to appropriate the $2,500
          which they normally do on school flasher and will more forward on that
          recommendation as soon as possible.


    F.  Requests by Councilmember Joe A. Guerra

       1. Discussion and possible action concerning a request by Texas A&M
          International University to provide additional fixed route bus service
          on weekdays and implement service on Saturdays.

          Gilbert Segovia, Transit Director, stated they received a request
          from, TAMIU and had a meeting with some student government
          representatives regarding additional service.
          They conducted a survey of the student body to determine
          what some of the needs might be.

          Ms. Alejandra Diaz, Vice President of the Student Government
          Association at TAMIU stated they survey 138 students on
          campus, out of those 138 persons 15% were people from the University
          Village (the on campus housing facilities), 85% were from people
          living outside campus.  She added that out of
          the 15% who live on campus 57% need the bus service, of the 85% living
          outside campus 26% need the bus service.  She continued by saying that
          they have to take into consideration that not even 2% of total
          population of the university community was surveyed.

          Out of the 138 surveyed, 30% would like a stop at the mall which is
          not an issue discussed at the moment, but she would like that it be on
          the record.  She said 33% need transportation on the weekends, that is
          a major change that they would benefit from because many students
          living on campus do not have means of transportation on weekends, 36%
          said that the best time for scheduling the bus on weekends is a bus in
          the morning, afternoon and evenings around 6:00 p.m.

          Cm. Guerra stated that the main issue is additional bus routes.

          She added there is a proposal on adding one extra hour in the morning
          (Monday thru Friday) an additional 12:00 noon to 12:55 p.m. and one
          extra hour from 9:00 - 9:55 p.m. because there are classes going on
          from 9:30-9:45 plus the computer lab which closes at 10:00 p.m.

          On weekends it would be two hours, from 10:00 a.m. to 11:55 a.m.
          (Saturdays) and four hours in the evening from 2:00-5:55 p.m. because
          there is ongoing business at campus, there are people who live there,
          computer labs and the library are opened.

          Mr. Segovia stated that the survey results were not shared with the
          Transportation Committee because they received them the evening before
          the December meeting.  He presented options discussed with the Student
          Association in terms of an immediate addition of service for this
          semester.  He pointed that on the weekday service they would be
          closing the afternoon gap (4 hours) and extending it in the evening
          and adding Saturday service.  There is no proposal to add Sunday
          service, because they did not look at adding Sunday service, but it is
          a matter of dollars and cents at this point, and to do so at this time
          would be a consideration that council should take.

          He presented a cost summary to council, no list was submitted to the
          City Secretary.

          The annual cost would be $23,006 for the weekday addition, and $14,000
          for the Saturday service increment basically they would be looking at
          amending the budget to provide for this additional service.

          Cm. Guerra recommended that they start implementing at least with the
          weekday service, 10 hours at 52 weeks at whatever the hourly rate is
          implement that as a starter and then go from there.

          Cw. Moreno suggested that they adjust the schedules because there are
          holidays where everything is closed and the cost on service.

          Gary Jacobs stated that yes the students should have bus service, it
          should be for seven days a week, but he is not sure why the city has
          to subsidize it.  He said that TAMIU should pay the City, that they
          should buy the buses and the city should operate them.

          Cm. Bruni suggested that they have dialogue with TAMIU on this issue,
          to see if they want to participate with the funding.

          Motion to find the necessary funding to have the shuttle bus service
          required for the students and the people that go to school at TAMIU,
          with alternative funding from TAMIU.

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

       2. Discussion by Esequiel Maldonado on the plumbing code, permits, bonds,
          and other issues related to the Building Department.

          Mr. Esequiel Maldonado, owner of Maldonado's Plumbing Company, spoke
          of several concerns regarding permits.  He said he has to show his
          license in order to get a permit and staff do not ask other plumbers
          to show them, hey only ask for the license number which he thinks it's
          unfair.  He feels that whomever and whenever anyone shows up for a
          permit they should all show the actual license so that city staff can
          know the status of their license or the expiration date.  He said he
          wrote a letter to Mr. Pena on this issue on January 20th and has not
          received anything positive on the issue up until now.  He also wrote
          to the Attorney General's Office which in turn was told to come before
          council to have a discussion and see what can be done.

          1) On the permits issue he stated that for each master plumber to do
          business and get a permit they need to have a bond with the city.
          Also there is a statue that states that you have to have a least a
          minimum of $300,000 on liability for each Master Plumber doing
          business in the State of Texas.  He would like to see that done here
          in Laredo besides the $50.00 bond because with the $50.00 requirement
          there are many Master Plumbers taking out permits for individuals that
          are not licensed, but yet doing plumbing work.

          2) Next issue is adopting the Plumbing State Code Law, he asked that
          they read and review the information submitted by him and see what can
          be done.  He said that maybe an ordinance can be implemented or that
          maybe it is already in the statues of the Plumbing Code (the Southern
          Building Code). He wants that the city have an inspector for the water
          protection supply, because there are six plumbers in Laredo, according
          to the Texas Natural Resources we should have that ordinance in place
          and enforced and those inspections should have to done two years ago.
          He added there is a lot of building construction going on, and since
          Laredo is the second fastest growing city in the nation, we still have
          two plumbing inspectors for 25 years and he feels that is outdated.

          3) He addressed the plumbing code and its enforcement, stating
          some people are doing plumbing jobs without a license
          and some plumbers lending the licenses and asked that more strenuous
          enforcement be done.  He said there are 20-25 companies doing business
          in Laredo and they are not registered with the city as a plumbing
          company.  He asked that Mr. Pena look into these law and see what is
          appropriate to do.

          4) He pointed there are bonafide employees or partnerships, he feels
          that the Building Department should have a listing of all those
          plumbers, because it is important that they have a separate bond and
          general liability insurance to run their business or partnership.

          5) The registration of the plumbing company, some of the companies are
          not registered.  He said the city is missing because of the lack of
          enforcement, between $50-1,000 for each plumbing violation that an
          individual does.  When there is an individual or plumbing company that
          has a license expired, and they are doing business, the city has the
          right to go out there and stop that job until they get the proper
          plumbing company out there with the proper certifications to do the
          plumbing.  He said there are many violations going on right now, wants
          that City Council do something about these issues
          soon because its hurting their business.  He asked that they do
          ordinances and enforce them.

  XI.  PUBLIC HEARINGS

      56. Amending the City of Laredo's Special Police Program 1997/1998
          manyears by reclassifying two police officers from general fund to
          Special Police Program for the Local Law Enforcement Block Grant from
          the U.S.  Department of Justice.  This grant will be in its second
          year of funding for the period of October 1, 1997 through September
          30, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo's Special Police Program 1997/1998
          manyears by reclassifying two police officers from general fund to
          Special Police Program for the Local Law Enforcement Block Grant from
          the U.S.  Department of Justice.  This grant will be in its second
          year of funding for the period of October 1, 1997 through September
          30, 1998.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      57. Public hearing regarding an ordinance to transfer Designated Fund
          Balance for Construction to the Bridge Construction Projects for
          Fiscal Year 1997-98 and amending the City of Laredo's 1997-1998 Bridge
          Construction Fund for said purpose in the amount of $371,061.00, and
          authorizing the City Manager to implement said budget.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance transferring Designated Fund Balance for Construction to the
          Bridge Construction Projects for Fiscal Year 1997-98 and amending the
          City of Laredo's 1997-1998 Bridge Construction Fund for said purpose
          in the amount of $371,061.00, and authorizing the City Manager to
          implement said budget.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      58. Public hearing to create a special revenue fund in accordance with the
          provisions of the new proposed hazardous material ordinance which
          requires that all fees collected shall revert to a hazardous materials
          management permit fund and shall be used for the purpose of
          administering and enforcing the provisions of such ordinance and for
          the planning and development of hazardous materials emergency response
          measures.

                      INTRODUCTION OF AN ORDINANCE
          To create a special revenue fund in accordance with the provisions of
          the new proposed hazardous material ordinance which requires that all
          fees collected shall revert to a hazardous materials management permit
          fund and shall be used for the purpose of administering and enforcing
          the provisions of such ordinance and for the planning and development
          of hazardous materials emergency response measures.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      59. Public hearing amending the City of Laredo's 1997-1998 annual budget
          by increasing estimated revenues and appropriations in the general
          fund by $3,445.20, and authorizing the City Manager to implement said
          budget, providing for publication and effective date.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo's 1997-1998 annual budget by increasing
          estimated revenues and appropriations in the general fund by
          $3,445.20, and authorizing the City Manager to implement said budget,
          providing for publication and effective date.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      60. Public hearing amending the contract with the Texas Department of
          Health and budget in the amount of $78,916.00, for the HIV/AIDS
          Prevention, Counseling and Partner Elicitation/Notification (PCPE)
          Project of the City of Laredo Health Department for the period
          beginning January 1, 1998, through December 31, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Amending the contract with the Texas Department of Health and budget
          in the amount of $78,916.00, for the HIV/AIDS Prevention, Counseling
          and Partner Elicitation/Notification (PCPE) Project of the City of
          Laredo Health Department for the period beginning January 1, 1998,
          through December 31, 1998.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      61. Public hearing amending the City of Laredo's 1996-1997 Annual Budget
          in the amount of $62,712.00, for additional salary, overtime, fringe
          benefit costs and direct operating expenses for the Multi-Financial
          Disruption Task Force awarded by the Office of National Drug Control
          Policy for the period of July 1, 1997 and ending June 30, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo's 1996-1997 Annual Budget in the amount of
          $62,712.00, for additional salary, overtime, fringe benefit costs and
          direct operating expenses for the Multi-Financial Disruption Task
          Force awarded by the Office of National Drug Control Policy for the
          period of July 1, 1997 and ending June 30, 1998.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      62. Public hearing repealing Ordinance No. 97-O-275 and amending the City
          of Laredo's 1997-1998 annual budget authorizing the reclassification
          of one (1) Lieutenant for one (1) additional Captain, reclassification
          of two (2) Sergeants for two (2) additional Lieutenants,
          reclassification of three (3) Investigators for three (3) additional
          Sergeants, and reclassification of (10) Police Officers/Cadets for ten
          (10) additional Investigator positions at the Laredo Police Department
          and authorizing the City Manager to implement said budget.

                      INTRODUCTION OF AN ORDINANCE
          Repealing Ordinance No. 97-O-275 and amending the City of Laredo's
          1997-1998 annual budget authorizing the reclassification of one (1)
          Lieutenant for one (1) additional Captain, reclassification of two (2)
          Sergeants for two (2) additional Lieutenants, reclassification of
          three (3) Investigators for three (3) additional Sergeants, and
          reclassification of (10) Police Officers/Cadets for ten (10)
          additional Investigator positions at the Laredo Police Department and
          authorizing the City Manager to implement said budget.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

          Ordinance Introduction: City Council

      63. Public hearing accepting comments on the Land Use Assumptions for the
          City of Laredo, its Extra Territorial Jurisdiction and other areas for
          the purpose of implementing water and sewer Impact Fees. The Impact
          Fees will support the infrastructure needs associated with growth and
          will be considered in order to minimize the need for future rate
          increases.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

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

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

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

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

      64. Authorization to solicit proposals for the purchase of five (5) used
          transit buses. These buses will be used to expand transit services to
          needed areas.  The criteria to be used to purchase these buses
          includes: purchase cost, condition of bus, maintenance history, and
          transportation cost to deliver these units.

          Motion to approve.

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

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

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

XIII.  ADJOURNMENT

          Motion to adjourn.

          Moved :
          Second:
          For:                         Against:  0         Abstain:  0


I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 48
ARE TRUE, COMPLETE, AND CORRECT PROCEEDINGS OF THE REGULAR CITY COUNCIL MEETING
HELD ON THE 5TH DAY OF JANUARY, 1998.  A CERTIFIED COPY IS ON
FILE AT THE CITY SECRETARY'S OFFICE


                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY