CITY OF LAREDO
                          CITY COUNCIL MEETING

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

                                MINUTES


       M98-R-14                                  MARCH 16, 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 Perez led in the Pledge of Allegiance.

 III.  ROLL CALL
       IN ATTENDANCE:
       JOSE R. PEREZ, JR.,    COUNCILMEMBER, DISTRICT I
       LOUIS H. BRUNI,              "      , DISTRICT II
       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, III,   CITY MANAGER
       JAIME L. FLORES,       CITY ATTORNEY

       ABSENCES:

       Motion to excuse Mayor Elizabeth Flores due to out-of-town business
       commitment and Cm. Casso.

       Moved : Cm. Guerra
       Second: Cm. Alvarado
       For:  6                          Against:  0         Abstain:  0
       Mayor Protem Perez was chairing the meeting and not voting.

       Motion waive the regular order of business and move up items A(1), #5 and
       #38, D(1), and #14.

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

  IV.  APPROVAL OF MINUTES

       2. City Council Meeting of February 2, 1998
          City Council Special Meeting of February 9, 1998
          Workshop on Economic Sales Tax February 11, 1998
          City Council Meeting of February 17, 1998
          Workshop Financing Bridge IV February 23, 1998
          Tour of River Road Project February 26, 1998

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain: 0
          Cm. Guerra had left the meeting.

   V.  INTRODUCTORY ORDINANCES

       3. Amending Chapter 2, Article II, Division 6, of the Code of Ordinances
          of the City of Laredo, entitled pay administration, by amending
          Sections 2.87.7(d)(15)(b), thereby adopting a revised pay schedule
          increasing all steps in all grades in the pay schedule from two and
          one half percent (2 1/2%) to three and one-half percent (3 1/2%) with
          an effective date of implementation of April 1, 1998; and Amending
          Section 2.87.7(d)(15)(c), thereby adopting a revised pay schedule
          decreasing all steps in all grades in the pay schedule from two and
          one half percent (2 1/2%) to one and one half percent (1 1/2%), with
          an effective date of implementation of September 30, 1998.

          Motion to amend the ordinance to increase to 5% pay increase effective
          April 1, 1998.

          Moved : Cm. Bruni
          Second: Cm. Valdez
          For:  2                       Against:  2         Abstain:  1
          Cm. Bruni                     Cm. Alvarado        Cw. Moreno
          Cm. Valdez                    Cw. Montalvo

          Motion to amend the ordinance fails.

          Ordinance Introduction: City Council

       4. Ordering and proclaiming a general city election to be held on
          Saturday, May 2, 1998, designating polling places, designating the
          run-off date, and providing for publication.

          Ordinance Introduction: City Council

       5. Ordinance of the City Council of the City of Laredo, Texas calling a
          Section 4B Sales and Use Tax Special Election to be held within the
          City on May 2, 1998, making provisions for the conduct thereof and
          other provisions relating thereto.  The proposed Section 4B Sales and
          Use Tax would create a Development Corporation to undertake economic
          development projects to create jobs and improve the quality of life in
          Laredo, Texas. A one-fourth cent (1/4 cent) Sales and Use Tax is
          proposed. (This item is related to Agenda Item No. 38 and should be
          considered simultaneously).

          This ordinance was postponed for August 8, 1998 election, subject to
          changes upon final reading in June.

          Ordinance Introduction: City Council

  VI.  FINAL READINGS

       Motion to waive the final reading of ordinances #98-O-058,
       #98-O-076, #98-O-077, #98-O-079, #98-O-080, #98-O-081,
       and #98-O-082.

       Moved : Cw. Montalvo
       Second: Cm. Alvarado
       For:  5                          Against:  0         Abstain:  0

       6. 98-O-058  Ordinance to create two new positions as required by a
                    grant, awarded by the United States Environmental Protection
                    Agency through the Texas Natural Resource Conservation
                    Commission to develop a "HazMat Education and Enforcement
                    Program" for the period from January 1, 1998 through August
                    31, 1999 and authorizing the City Manager to implement
                    changes within the budget. (City Council)

                    Motion to approve Ordinance #98-O-058.

                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0


       7. 98-O-076  Establishing a 15% penalty on delinquent tax accounts as of
                    July 1, 1998, to defray cost of collection pursuant to
                    Section 33.07(a) of the Property Tax Code.  (City Council)

                    Motion to table.

                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0

       8. 98-O-077  Approving the amendment to the contract with the Texas
                    Department of Health and budget in the amount of
                    $235,954.00, in additional funds for the Maternal and Child
                    Health (MCH) of the City of Laredo Health Department for the
                    period September 1, 1997, through August 31, 1998.  (City
                    Council)

                    Motion to approve Ordinance #98-O-077.

                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0

       9. 98-O-078  Amending the City of Laredo Code of Ordinances by creating
                    Article IX of Chapter 21, titled "Noise Nuisances," thereby
                    establishing an article regulating excessive noise,
                    declaring noise nuisances and providing for a penalty
                    thereof; deleting subsection 21-17(5) concerning general
                    nuisances which having been incorporated into Article IX.;
                    deleting Chapter 28, Article IV.  titled Sound Amplification
                    Devices, which having been incorporated into Article IX.
                    (City Council)

                    Motion to approve Ordinance #98-O-078.

                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0

      10. 98-O-079  Amending Section 24.82 of the Laredo Land Development Code
                    by allowing for the use of temporary signage along US and
                    State Highways during times of reconstruction on those
                    highways.  (As Amended)   (City Council)

                    Motion to approve Ordinance #98-O-079.

                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0

      11. 98-O-080  Amending ordinance 96-O-198 of the code of ordinances of the
                    City of Laredo to permit two-way traffic northbound and
                    southbound on the 100 to 300 blocks of San Pablo Avenue on a
                    three (3) block segment between Iturbide and Water Streets
                    and authorizing the City Manager to take the necessary steps
                    to enforce this ordinance.
                    (Consuelo "Chelo" Montalvo)

                    Motion to approve Ordinance #98-O-080.

                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0

      12. 98-O-081  Amending the City of Laredo's FY 1997-98 Annual Budget by
                    authorizing the City Manager to execute an amendment
                    (increase) to the Laredo Municipal Transit Systems FY 1997-
                    98 operating budget (revenue and expenditures; Fund 558) in
                    the amount of $5,998.00, to $7,037,495.00 to $7,031,497.00;
                    transferring funds from the transit sales tax proceeds
                    budget reserve account (Fund 518).
                    (City Council)

                    Motion to approve Ordinance #98-O-081.

                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0

      13. 98-O-082  Amending the City of Laredo's FY 1997-98 Hotel-Motel budget
                    in the amount of $36,454.00, to be used for direct
                    advertising and other related expenditures. These monies
                    result from excess FY 1996-1997 balances in the Hotel-Motel
                    fund from prior year collected taxes; and authorizing the
                    City Manager to implement said budget.
                    (City Council)

                    Motion to approve Ordinance #98-O-082.


                    Moved : Cm. Bruni
                    Second: Cw. Montalvo
                    For:  5             Against:  0         Abstain:  0

 VII.  RESOLUTIONS

      14. 98-R-03   Declaring the public necessity to acquire the "Surface Only"
                    of one parcel of land needed as Right-of-Way for the
                    widening of Gallagher Avenue from the North right-of-way
                    line of Calton Road, north to the South right-of-way line of
                    Hillside Road.  Said parcel being the East fifteen feet of
                    Block No. 19 in the Calton Gardens Subdivision No.  1, City
                    of Laredo, Webb County, Texas, and authorizing the City
                    Attorney to initiate eminent domain proceedings to acquire
                    said parcel as Right-of-Way if staff is unable to acquire
                    through negotiations due to inability to agree to a purchase
                    price, conflict of ownership, owner's refusal to sell,
                    and/or inability to locate the listed owner.

                    Motion to approve Resolution #98-R-03.

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

                    Motion to excuse Cm. Guerra.

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

                    Cm. Guerra left the meeting at 6:35 p.m.

      15. 98-R-035  Authorizing the use of surplus proceeds from the contractual
                    obligation series 1995 in the amount of $72,597.06 to
                    purchase vehicles with CNG System, in addition to the
                    February sale of $16,160,000.00, Certificates of Obligation.

                    Motion to approve Resolution #98-R-035.

                    Moved : Cw. Montalvo
                    Second: Cm. Guerra
                    For:  5             Against:  0         Abstain:  0

      16. 98-R-042  Authorizing the City Manager to enter into an agreement with
                    the Department of Treasury/U.S.  Customs Service for the
                    reimbursement of $5,000.00, for funding the Laredo Border
                    Violence Task Force to assist in conducting official
                    Treasury investigations. These monies will be used to pay
                    overtime wages to Laredo Police Narcotics officers involved
                    in this operation. This will be the first year the City has
                    entered into this agreement and is at no cost to the City.

                    Motion to approve Resolution #98-R-042.

                    Moved : Cw. Montalvo
                    Second: Cm. Guerra
                    For:  5             Against:  0         Abstain:  0

      17. 98-R-043  Expressing official intent to reimburse costs of
                    International Bridge Systems Improvements for the Laredo
                    Northwest International Bridge project (Bridge IV) in the
                    amount of $36,900,000.00, from the permanent financing
                    facility which will include State Infrastructure Bond (SIB)
                    loans, a tax-exempt debt issue, and a taxable debt issue.

                    Motion to approve Resolution #98-R-043.

                    Moved : Cw. Montalvo
                    Second: Cm. Guerra
                    For:  5             Against:  0         Abstain:  0

      18. 98-R-044  Authorizing the City Manager of the City of Laredo to accept
                    a grant (reimbursement program) from the Texas Historical
                    Commission for certified local government funding in the
                    amount of $3,500.00 for the production of a Laredo Area
                    Cemetery Preservation Plan; and authorizing the City Manager
                    to execute the necessary documents.

                    Motion to approve Resolution #98-R-044.

                    Moved : Cw. Moreno
                    Second: Cm. Alvarado
                    For:  5             Against:  0         Abstain:  0

      19. 98-R-045  Amending Resolution No. 97-R-127, which authorized the
                    execution of a Right of Entry and Possession instrument
                    between the City of Laredo and Fasken Ltd., a Texas Limited
                    Partnership, and by which the City was granted the right to
                    enter upon, and take possession of two tracts containing
                    57.5827 and 11.2571 acres of land, respectively, and owned
                    by Fasken Ltd. Said proposed amendment will provide for the
                    addition of a third 5.1907 acre tract of land to the above
                    referenced Right of Entry and Possession instrument for an
                    amended total of 74.02 acres.

                    Motion to table.

                    Moved : Cw. Montalvo
                    Second: Cm. Alvarado
                    For:  5             Against:  0         Abstain:  0

VIII. MOTIONS

      20. Approval of bid specifications and authorization to advertise for bids
          for the following:
          a) Copier Rental - Engineering Department
          b) Anionic Polymer (Water Treatment Chemical)
             Utilities Department
          c) Creek Cleaning Equipment - Public Works Department
             2 - 12 cubic yard dump trucks
             2 - Tractor with 24" boom brush cutter
             1 - Tractor with 60" side-mounted rotary mower and 96" rear mounted
                 lift type rotary mower
             1 - Tractor with 60" rotary mower
          A tentative award date is scheduled for April 20, 1998.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cw. Moreno
          For:  5                       Against:  0         Abstain:  0

      21. Approval of the construction plans and authorization to advertise for
          bids for Street Improvements on the 2500 Block of South Malinche
          Avenue between Zacatecas - Chacota and Parking Lot Improvements for
          the Cigarroa Park and South Laredo Fire Station with tentative award
          on April 20, 1998.  This is a cost sharing project with the Laredo
          National Bank contributing $97,460.00, and the City's share being
          $50,000.00, plus right-of-way dedication and engineering services.
          Funding is available in the 1998 Contractual Obligation Issue Cigarroa
          Parking Lot Construction Project.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

      22. Approval of the specifications and authorization to advertise for bids
          for the Pre-Engineered/
          Prefabricated Steel Pedestrian Bridge for the Northeast Hillside
          Recreation Center and Park, and approval to seek Request for Proposals
          for structural engineering services for the design of bridge
          abutments; and proposals for geotechnical (subsurface) evaluation, if
          needed, with tentative award on April 20, 1998. Funding is available
          in the Capital Improvement Fund Northeast Hillside Park.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

      23. Authorization to advertise for Request for Proposals (RFPs) for
          consulting engineering services to identify alternative alignments for
          the extension of Bartlett Avenue from Hillside Road to Del Mar Blvd.,
          approximately 16,500 linear feet, and to include surveys/plats for the
          right-of-way acquisition, and ultimately for the design and
          preparation of construction plans and specifications for the project.
          This is a Certificate of Obligation Bond Project and funding is
          available from the 1998 Contractural Obligation Issue Construction
          Projects.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

      24. Award of contract to the LOW BIDDER, Acetylene Oxygen Company, Alice,
          Texas, in the estimated amount of $20,880.00, for the purchase of
          trichlor tablets needed for the chlorination process for all the
          City's swimming pools. The bid pricing is approximately 18% less that
          the previous contract pricing.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

      25. Award of annual contract to the LOW BIDDER, S.L.C.  Hydro-Metric,
          Inc., Waterford, MI., in the estimated amount of $12,650.00, for
          rebuilding water meters for the Utilities Department. The contract
          pricing is approximately 40% less than the previous contract. Meter
          repairs are requested on an as need basis.

          Motion to approve.

          Moved : Cw. Moreno
          Second: Cm. Guerra
          For:  5                       Against:  0         Abstain:  0

      26. Award of contract to the LOW BIDDER, Laredo Discount Metal Building
          Components, Laredo, Texas, in the amount of $35,396.68, for furnishing
          prefabricated wrought iron fence sections for the City Cemetery.  The
          contract vendor will deliver ten foot fence sections to the City for
          installation by City crews and contract labor.  Approximately 970
          linear feet of fence will be required to match the existing wrought
          iron fence installed by Mercy Regional Center.  A total of five bids
          were received for the purchase of this fence.  Funding is available in
          the Capital Improvement Fund Cemetery Improvements.

          Motion to approve.

          Moved : Cw. Moreno
          Second: Cm. Guerra
          For:  5                       Against:  0         Abstain:  0

      27. Award of contract to the following LOW BIDDERS, for the purchase of
          vehicles authorized in the FY98 capital equipment budgets:

          Sames Motor Co., Laredo, Texas:
           8 - 1/2 ton extended cab trucks
               (dedicated CNG)                $173,200.00
           4 - midsize sedans (conventional
               due to limited range)            72,780.00
                                              $229,980.00

          Philpott Motors, Port Neches, Texas:
           9 - 1/2 ton trucks (bi-fuel)       $169,776.00
           2 - Cargo Van (dedicated CNG)        43,396.00
                                              $213,172.00

          Powell Watson Motors, Laredo, Texas:
           3 - 3/4 ton trucks (dedicated CNG) $ 57,924.00

          Brown Chevrolet, Devine, Texas:
           1 - 4 wheel drive utility vehicle
               (conventional engine for Fire
                Department use)              $ 24,521.06
                                             $525,597.06

          Delivery is expected within ninety days.  $453,000.00 was allotted for
          this purchase in the February 2, 1998, Bond Sale. The difference of
          $72,597.06, will come from surplus funds in previous CO issues.
          (Please refer to Resolution No.  98-R-035)

          Motion to approve.

          Moved : Cw. Moreno
          Second: Cm. Guerra
          For:  5                       Against:  0         Abstain:  0

      28. Award of a construction contract to the LOWEST BIDDER, Dominguez
          Development, Laredo, Texas, in the amount of amount of $83,487.00, for
          the Laredo Independent School District (LISD) Ochoa-Sanchez Park
          located at Locust Street and Monterrey Avenue. This is a City of
          Laredo/LISD Project with funding available from the Community
          Development CDBG Ochoa Elementary Park.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

      29. Award of an engineering contract to G.G. Salinas Engineering Company,
          Laredo, Texas, for an amount not to exceed $106,384.32, to provide
          surveys, design and preparation of plans and specifications for Paving
          Project 61 (36 Blocks) City of Laredo Capital Improvements Projects
          for FY 97-98.  Funding is available in Community Development CDBG
          Paving Project 61 and Capital Improvement Fund Paving Project 61.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

      30. Award of an professional services contract to Raba-Kistner
          Consultants, Inc., Laredo, Texas, for an amount not to exceed
          $41,928.00, to provide Laboratory, Sampling and Testing Services of
          materials for quality control for the Father Charles McNaboe
          Recreational Complex. Funding is available in the Capital Improvement
          Fund Father Charles McNaboe Park.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

      31. Award of an professional consulting services for an amount not to
          exceed $27,000.00, to Sepulveda Associates, Inc., Laredo, Texas, to
          develop, design and prepare engineering plans and specifications for
          implementing the Storm Water Management and Ecology Demonstration park
          at Laredo Community College Campus on fast tract basis.  Funding is
          available in NPDES Funds Purchase Professional Services - Ecology
          Grant project.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

      32. Approval of amendment no. 1, an increase of $29,648.00, to the
          engineering contract for the Toll System Upgrade and Electronic Toll
          Collection Implementation to include conceptual plan, design,
          construction implementation, system testing phases with B.W. Zimmerman
          and Associates, Harrisburg, PA, to add the design and construction
          management of the toll system at the proposed Fourth International
          Bridge and to increase the contract time by fourteen (14) months to
          test prototype of the proposed system, to implement final design,
          installation phase, and oversee final checkout of all the equipment,
          and includes two months for the proposed Fourth International Bridge.
          The original contract amount was $105,517.00.  This amendment brings
          the total contract amount to $135,165.00.  Funding is available in the
          Bridge System Toll Plaza Improvements.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

      33. Approval of amendment no. 1, an increase of $60,000.00, to the
          engineering contract with Sherfey Engineering Company, L.C.C., Laredo,
          Texas, for additional engineering services to design and prepare plans
          and specifications to include analysis and sizing of belt filter press
          and related appurtenances and building to house unit for the North
          Laredo Wastewater Treatment Plant Odor Control Project. Original
          architectural engineering amount of $12,000.00, is amended to
          $72,000.00.  Funding is available in the Sewer System Oxygen/Hydrogen
          Sulfide Control.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

      34. Approval of amendment no. 1, an increase of $94,000.00, for additional
          engineering surveying services to the engineering contract with G.G.
          Salinas Engineering Company, Laredo, Texas, for the Reconstruction of
          Santa Maria Avenue between Markley Lane and Del Mar Blvd. The
          additional engineering services are due to project changes required by
          the City. The Santa Maria Avenue Reconstruction Project was intended
          to be designed and constructed in conjunction with the Santa Maria
          Avenue Drainage Project, however, due to funding issues, the project
          is now being done in two phases; Also additional surveying of twenty
          (20) individual parcels of land for right-of-way acquisition and/or to
          identify encroachments.  The original contract amount was $189,500.00.
          This amendment brings the total contract amount to $283,500.00.
          Funding is available in the 1998 Contractural Obligation Issue.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

      35. Approval of amendment no. 3, an increase of $13,640.00 for additional
          Resident Project Representative (inspection services) to the
          engineering contract with Mejia Engineering Company, Laredo, Texas for
          the Manadas Creek 24 Inch Wastewater Interceptor as part of the North
          Laredo/Webb County Infrastructure Improvements Project (McPherson Road
          Extension) Economic Development Administration (EDA) Project No. 08-
          01-02878. The additional contract time is due mainly to delays
          associated with additional Federal and State Requirements on
          Environmental Assessment and an antiquity assessment required by the
          Environmental Protection Agency and the Texas Historical Commission,
          respectively, and to contract time added to the construction contract.
          Amended architectural engineering contract amount is $536,273.42.
          Funding is available in the Sewer System Manadas Creek Interceptor.

          Motion to approve.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

      36. Authorizing the City Manager to submit a grant application to the
          Texas Department of Health for continuation of the La Familia Health
          Care Program of the City of Laredo Health Department.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cw. Moreno
          For:  5                       Against:  0         Abstain:  0

      37. Acceptance of the Sidewalks Project at B.P. Newman Elementary School
          and approval of final payment in the amount of $18,898.32, to Pete
          Gallegos Paving, Inc., Laredo, Texas.  Total contract amount is
          $80,850.00. Funding is available in the Capital Improvement Fund
          Newman Elementary Sidewalks.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cw. Moreno
          For:  5                       Against:  0         Abstain:  0

  IX.  CITY MANAGER'S REPORT

      38. Presentation with possible City Council action regarding the proposed
          one-quarter cent (1/4 cent) Section 4B Sales and Use Tax by the City's
          Economic Development Advisory Council.

          Elmo Lopez, Economic Advisory Boardmember, stated that the Business
          Council, The Laredo Business Council, Laredo Development Foundation,
          Chamber of Commerce and other business entities have worked closely
          with the Economic Development Council of the City to build consensus
          on the future economic development needs of Laredo.  One thing is
          clear and unanimous, Laredo needs additional tools in order to attract
          the high paying steady jobs that allow a community to grow.  With high
          unemployment in Laredo our focus needs to be not just to be on any
          jobs, but on the types of jobs that come as a result of attracting
          companies and business interests in a long term relationship for
          Laredo.  At this time the only legal way to provide the types of
          incentives we need to attract the businesses that will bring jobs to
          Laredo is through the creation of an Economic Development Corporation.
          Laredo has lost business opportunities to other cities in Texas
          because of our inability to compete.  The creation of the Economic
          Corporation will provide us the level plain field we have long needed,
          therefore they support the proposed 1/4% increase in sales tax to fund
          the EDC and to provide other needed projects in Laredo.  Currently
          council is considering a May Election on this initiative to coincide
          with the municipal elections and at
          this time they believe that May election is too soon to gather the
          public input that is critical to a project of this nature.  He added
          that three times the City of McAllen proposed an Economic Development
          package similar to what is they are proposing, three times they failed
          to provide accountability by refusing to tell voters how they planned
          to spend the money, for how long the tax would be collected and
          whether the money was being spent wisely, three times the voters
          rejected the proposal.  In Lubbock the same thing happened, McAllen
          learned its lesson, last year they prioritized projects and guarantee
          voters the opportunity to help re-prioritized projects every few
          years.  Voters have a right to know how their money will be spent, and
          for what projects, through hearings and forums the public will have an
          ample opportunity to provide input on the projects on which they
          start.  He encouraged council to amend the date of this proposal from
          a May election to an August election and to allow amendment to the
          ballot as far as the language is concerned.  They need the extra time
          to build consensus city wide because they cannot move forward until
          they move together.

      39. Report advising City Council that unidentified utilities deposits in
          the amount of $98,384.22, for the Waterworks System would be
          transferred to a miscellaneous revenue account. The audit firm of Baum
          & Mejia CPAs, in their Letter to Management, recommends that such
          deposits be applied or refunded.

          Florencio Pena, City Manager, gave an overview of the report to the
          Council.  He said these are old, antiquated, deposits that have been
          in the waterworks system for many years and they have not identified
          any person or companies that it belongs to and therefore the audit
          firm recommends that they acknowledge those as revenues.

          Motion to proceed with the recommendations of the audit firm.

          Moved : Cw. Moreno
          Second: Cm. Alvarado
          For:  4                       Against:  0         Abstain:  0
          Cm. Bruni was not present.

      40. Discussion and possible action regarding the acquisition of three
          Utility Easements from Ms. Mary F. Gomez and Mr.  Rafael Gomez. Said
          easements being described as a thirty-foot-wide Utility Easement
          consisting of Part 1 (0.19 of an acre of land), more or less, Part 2
          (0.02 of an acre of land), more or less; and a thirty-foot-wide
          Utility Easement consisting of 1.7218 acres of land, more or less,
          respectively, in Webb County, Texas; with possible Executive Session
          for deliberations regarding real property as authorized by V.T.C.A.
          Government Code Section 551.072 and return to Open Session for
          possible action.

          Motion to go into Executive Session for deliberations regarding real
          property as authorized by V.T.C.A. Government Code Section 551.072 and
          return to Open Session for possible action.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

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

          Motion to direct staff to proceed to negotiate with Ms. Mary F. Gomez
          for the acquisition of three Utility Easements, in exchange for street
          parcels, payment of just compensation, or through eminent domain
          proceedings, if necessary.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  4                       Against:  0         Abstain:  0
          Cm. Bruni was not present.

      41. Discussion and possible action regarding the acceptance of the
          donation of Blocks 1717, 1718, 1778, 1873, 2159, 2160 and 1630,
          Eastern Division, from the Laredo Noon Optimist Club, Inc., from which
          a Utility Easement needs to be acquired out of Blocks 1778, 1873, and
          2159, Eastern Division.  Said easement being described as a thirty-
          foot-wide Utility Easement consisting of Block 1778, part 1 (0.19 of
          an acre of land), more less, Block 1873, Part 2 (0.08 of an acre of
          land), more or less, and Block 2159, Part 3 (0.18 of an acre of land),
          more or less, and Block 2159, Part 3 (0.18 of an acre o land), more or
          less, and being situated within the area comprising the Dryden
          Memorial Park grounds, Eastern Division, Webb County, Texas; with
          possible Executive Session for deliberations regarding real property
          as authorized by V.T.C.A. Government Code Section 551.072, and return
          to Open Session for possible action.

          Motion to go into Executive Session for deliberations regarding real
          property as authorized by V.T.C.A. Government Code Section 551.072.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

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

          Motion to direct staff to proceed to accept Blocks Nos. 1630, 1717,
          1718, 1778, 1873, 2159, and 2160, Eastern Division, from the Laredo
          Noon Optimist Club, Inc., in-lieu-of delinquent property taxes for
          Lots 1-6, Block 1630, Eastern Division, and to pay said taxes out of
          the City Utilities Department funds.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  4                       Against:  0         Abstain:  0
          Cm. Bruni was not present.

      42. Request for Executive Session pursuant to Texas Government Code
          Section 551.071(1)(a) to discuss contemplated litigation

          regarding Fleet Maintenance Investigation, and return to open session
          for possible action thereon.

          Motion to go into Executive Session pursuant to Texas Government Code
          Section 551.071(1)(a) to discuss contemplated litigation regarding
          Fleet Maintenance Investigation

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  4                       Against:  0         Abstain:  0

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

      43. Discussion regarding a request to amend the terms of a parking lot
          lease located on River Vega Land, dated August 7, 1979 between the
          City of Laredo and Lar-Hill, Inc., by extending the primary term of
          said lease which terminates on August 6, 2007, by thirty (30) years
          together with an adjustment of rent to increase the fair market rental
          value to current rates plus annual consumer price index increases and
          discussion regarding possible assignment of this parking lot lease as
          amended, to Kabir Investments, Inc., as the prospective purchaser of
          the Holiday Inn on the Rio Property, together with possible Executive
          Session for deliberation regarding real property, as authorized and
          pursuant to Section 551.072, of the Texas Government Code and return
          to open session, for possible action thereon.

          Motion to go into Executive Session for deliberation regarding real
          property, as authorized and pursuant to Section 551.072, of the Texas
          Government Code.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

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

          Motion to instruct the City Manager to have staff negotiate and
          finalize the terms of an amended lease agreement with up to 30 year
          extension term and possible assignment, and have the City Manager
          return with the terms and conditions of the negotiated lease agreement
          for review and approval by this council, upon the completion of said
          negotiations.

          Moved : Cw. Montalvo
          Second: Cm. Guerra
          For:  4                       Against:  0         Abstain:  0
          Cm. Bruni was not present.

   X.  COMMUNICATIONS

          a. Danita Benavides spoke before the council on the creation of a Tree
             Board and that this board needs to work together with CPL to stop
             the damaging of the trees.

             Mr. Manuel Jordan with the Texas Forest Service spoke of the idea
             of the Tree Board and looking at the potential of the city becoming
             Tree City U.S.A. and the requirements.

             Cm. Alvarado informed Mrs. Benavides to prepare a list of names
             that are interested in serving on the Board and submit them to the
             City Secretary.

             Miss Linda Cantu from CPL stated that they are committed
             as role partners with the City of Laredo to get the Tree
             City USA going and are willing to help facilitate the filing forms
             and participating on the board itself.

          b. Dr. Michael Landeck asked that council clarify the specific purpose
             and time and whether it's one (1) year of more and if it is a
             single project or multiple projects on the sales tax increase
             proposal.  He thanked the Council for postponing the election.

          c. Jesus Longoria spoke before the Council and informed them
             of present railroad problems.  He passed a copy of a ticket issued
             by a Texas Railroad Police to Jose Luis Castillo on a violation of
             interference with railroad property and for jumping on a moving
             trained.  He said it when the trains stops and it stops for a long
             time, and residents of the area are forced to do creative things
             either coming under the railroad car or over the railroad car, in
             this case he came over the railroad car.  He was cited to appear
             before the JP Court and issued a ticket, he was unable to attend
             the court session and sent a letter from the judge's office.  If he
             needs to plea guilty to avoid a long trial he is to pay $109.75 and
             of course the court costs.  He has to pay $232.00 or in the event
             he decides to make a personal appearance, the court will not be
             bound by the stated amount which means he can even end up in jail.
             He hopes that for the next agenda, this item be put and discussed.
             He added that the man that issued the ticket issued it under a
             public law and under certain legal right because he was to take it
             to Judge Valdez.  He wants that this item be brought on the next
             agenda so that it can be fully discussed with the railroad people.

          d. Dr. Jose G. Garcia, President of the Laredo Day Break Rotary Club,
             explained they have approach each member of the organization of
             Americans States which are 34 countries, about the fact that Laredo
             has been already been designated as "The Gateway of Las Americas"
             and Mr.  Duarte member of the Rotary Club came up with an idea of
             proposing that each of the councilmembers of the organization of
             American States donate a crest or coat-of-arms for their particular
             country so that one of the avenues where most of the traffic
             between ourselves and the sister republics to the south is
             maintained and proposing that the avenue could be named as "Avenida
             de las Americas" where our citizens and other citizens of other
             countries that travel through our gateway are reminded of all the
             countries that are part of this hemisphere.

             In addition, they asked from each of the member countries, to
             donate to our city a copy of a book of geography of their own
             country, a book on the history of their country, and three
             representative books by either poets, philosophers or different
             literary artists for their country so that a potential goal of
             developing a hall of the Americans at the new library.  The idea is
             to promote greater understanding of the philosophy, the ideas and
             goals of all of our sister republics which will give the city an
             additional presence in the international forum.

  XI.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

    A.  Requests by Councilmember Louis H. Bruni

       1. Status report on the ongoing construction on Hwy 59 (Saunders) with
          possible action.
          (Co-sponsored by Councilman Eliseo Valdez).

          Fernando Roman, Utilities Director, stated that the contract was
          awarded to Price on the last council meeting and has taken effect,
          they have been given the order to proceed, they have started to
          mobilize on Thursday transporting materials back and forth.  He added
          that they have never left the site except for rain, they have
          continued to install the 18" line as they started, at this point they
          are east of Valencia Street.  As soon as the contractor gets in place
          and begins working they will continue working with them installing the
          services on that line to provide the sewer services.

          Regarding the recent rains, on Friday they spent much of the day
          putting caliche on top of trench to facilitate the access to the
          people on the areas where they were working.

          The 18" line construction will continue for next month under Price
          Construction, then they will continue approximately 2,500 feet of 8"
          line also going east.  They will be with them to help them install the
          services as they advance which is the fastest way that they can
          advance.  The one thing that they ask of Price is that no business
          will be blocked for more than one day total at a time.  They will do
          everything possible to give them access.

          On the water side, they are also working all along Highway 59,
          lowering the services to where the storm sewer lines are going to be.

          Mr. Juan Villarreal, TxDOT Engineer, stated that on Highway 59 the
          contractor has nailed asphalt from Ejido to McPherson.  They have
          layed pipe as far as storm sewer from Ejido to Texas Avenue and will
          begin working at Bartlett which is the
          second system for the project.  They have done excavation from Ejido
          to Texas, the project is approximately 10% complete, 7% of the time
          has elapse, so they are ahead of schedule by 3%.

          Cm. Bruni stated he has a concern with the recent rains, the using of
          flexible base versus black base, many people could not get to work or
          their customers couldn't get to there because the contractor had gone
          in there and put a layer of caliche flexible base slashed up and cars
          were getting stuck in the flexible base.  He asked if there is any way
          they can use black base material to expedite the project and to
          facilitate the egress/ingress to this businesses?  He added that we
          need a contingency plan by working all future projects with the City,
          County, and TxDOT so these problems will not occur again and he would
          like to see 24 hour construction days.

          Mr. Villarreal stated what was slashed up was the same material that
          was escavated and a lot was clay, as of right
          now they are going to use caliche base plus asphalt with the motion on
          it which should make it better if there is another rain.

          Cm. Bruni questioned if the time frame can be lowered or reduced in
          the amount of working days.

          Mr. Delgado stated they can make them work at night, but the cost will
          increase and instead of doing a project that might
          take two years they might have to escalate that project to six years.
          He explained that if they force the contractor to work 24 hours a day
          the cost will increase tremendously.  Instead of doing six miles they
          would only do two miles.  One of their concerns is safety, one of the
          disadvantages of not allowing them work at night is because it is so
          narrow, the
          artificial light would be more of a hindrance to the travel public,
          the noise level would be bad and they would have to try and explain
          why they don't let them go to sleep.

          Mr. Villarreal stated they did say they will be looking at working at
          night once they are done with the storm sewer and the underground
          work.

          Hector Delgado, Appraisal District Manager, reported that they are
          reviewing economic circumstances on the businesses on Saunders Avenue
          and on Webb County.   The board is very concerned with regards to what
          is going on and they asked for a report from the Appraisal District as
          to what their intents were for that situation.  They are very
          concerned that the construction has had an impact on these
          individuals, because as you know when an growth, expansion and an
          improvement takes place those circumstances also bring sorrow and
          hardship for individuals.  The Appraisal District's job is to make
          sure that we are aware of those circumstances and if there is an
          economic affect on the property that they try and reflect that
          accordingly.  The Appraisal District job is to appraise property, to
          provided benefits to the property owners and to assist property owners
          whenever possible, and possibly they can do those three things.  He
          stated that all these situations apply to all property owners within
          Webb County.  What they will be doing on the Saunders construction and
          throughout Webb County is seeking legal opinions so they can determine
          what the framework and what the boundaries are for the Appraisal
          District as they work towards finding solutions and assistance for
          these property owners.  They are conducting an economic survey from
          other Appraisal Districts of the State of Texas to see how they
          address these particular issues.  They are also trying to complete an
          economic survey which will be trying to gather information in regards
          to the market value of properties along the construction
          thoroughfares, sales losses, and any other pertinent information so
          they can try and establish the effects of the ongoing construction.
          They will also be gathering information from the City Engineer, TxDot
          and they will be looking at information brought to their attention in
          regards to possibly additional right-of-way that have been taken.
          They are also conducting site inspections on Saunders and other major
          thoroughfares under construction to look at those situations so they
          can make a note of how its affecting those properties.  They will be
          correlating all the data and trying to come up with a solution.  They
          believe the timeframe is approximately 45 days, they are looking at
          the 1998 appraisal year, they effects of what they are doing won't be
          felt until the end of this year, but they are moving at this time to
          review that along with all the other projects.  He reminded property
          owners that when they send out the survey, that they will play a very
          important part in their ability to gather information, because they
          will be the ones answering the questions and providing the type of
          economic information that they give to council, in trying to express
          their concerns and their hardships and everything else that has an
          effect on their property.  He reminded property owners that they do
          have rights.  They have a right to visit with their staff, they have a
          right to a fair, equal, and impartial appraisal.  They have a right to
          meet with the Appraisal District Review Board if they have any
          questions with regards to those processes.   They are trying to gather
          first quarter losses, and will try and reflect all year round effects.

          Cm. Valdez asked staff to look into the Economic Development
          in Austin to see if there are any type of economic re-adjustment
          programs, or low and/or no interest loans to help some of these
          businesses survive.

          Jorge Cedillo, from Commerce Bank, stated that they had conducted a
          preliminary survey on some of the businesses on Saunders, they took
          the initiate to have their staff call some of the businesses along
          Saunders and they were able to make contact with 57 businesses.  He
          shared information acquired from that survey, they found out that out
          of the 57 businesses they talked to 47 or 82% of these businesses have
          been affected by the construction on Saunders.  Out of those 47
          businesses the they interviewed and made contact with, they found out
          that 7 of those business which is 16% had at least a 10% drop income
          or revenue, approximately 13 of those businesses which equals 23% had
          a 20% in their revenues, and about 61% or 35 of those businesses had a
          50% drop in their revenues.  They have seen the impact that they are
          having, the project is just getting underway, some of the people that
          have been impacted are on the north side of the construction so they
          still have to see the other side.  He added that Commerce Bank has
          also had some impact, most of the customers are complaining about the
          situation, especially the congestion and the possibility of a traffic
          accident.  They have noticed a 7% difference in the number of activity
          or number of customers using the motor bank.

          He discussed some of the ideas discussed in the survey such as:
          1) Extending and keeping the green lights longer on the east/west
             traffic lanes.
          2) Having more traffic control by the Police Department having police
             officers standing on those main intersections.
          3) They would like to see the increase of man hours and manpower for
             the project, by adding more workers or extending their daily
             schedules possibly working Saturdays, Sundays and nights.
          4) City and County need to offer some sort of relief in the Ad Valorem
             taxes.
          5) They need to have the utility companies provide a level payment
             plan during the construction.
          6) Maybe the media can contribute by issuing daily traffic report
             announcements throughout the day.  They need to have the medias be
             more sensitive to the merchants, that instead of continuing
             negative reports maybe they can provide special discount rates for
             the merchants in Saunders wanting to advertise or provide
             advertising promotional packages with special incentives for the
             people on Saunders.  Many want to advertise but it is an uphill
             battle trying to promote their businesses with all the bad
             publicity going on.
          7) Businesses along Saunders need to form a united group or a
             coalition and initiate a promotional program to attract shoppers to
             their stores.
          9) Seek help from existing civic groups like the Chamber of Commerce
             and develop a marketing plan for the area maybe providing discount
             coupons or opening on Sundays as incentives.
         10) Setup a "Hotline" with TxDot and with the City for emergencies.

          One of the most common suggestions was "Why can't the project be done
          in blocks instead of two or three mile strips?"

          He believes that a contingency plan needs to be established.
          There needs to be more planning and that the private sector be
          included in the planning, there needs to be more communication with
          the private sector and government to get this projects underway with
          less problematic situations.  He sees the need for more economic
          relief in the months to come for some of these businesses.  He asked
          that the City and the County join forces in creating a short term/long
          term loan revolving loan program or a guarantee program of some sort
          for some of the business that need help.  As far as the bank is
          concern, he extended an open welcomed hand to all the businesses to
          use all their facilities for any future meetings that the business
          owners may need in the future.

          Mr. Jesus Sandoval spoke in reference to elevations and right-of-ways
          issues and wanted explanation on these issues from TxDot Engineers.

          Mr. Hector Alvarado appeared before council wanted to know who is in
          charge and responsible when something is wrong, who is profiting from
          it and at whose expense is all this
          progress being done?  He quoted that "fast" is not good enough for
          merchants on Saunders and asked that they are kept in mind when
          something is being done, because they are the ones suffering the
          consequences.

       2. Status report on the lack of waste water infrastructure on the north
          side of Highway 59 between Ejido Street and the entrance of Casa
          Blanca State Park.

          Fernando Roman, Utilities Director, said that the present project will
          not touch that section, that will probably be in a year or two when
          they go on the other side of Ejido, however the infrastructure needed
          can be installed on the outside of the pavement, there is sufficient
          room.  They have been contacted by some business owners who say that
          with failing septic systems they have two choices, to try to put some
          type of infrastructure and the other is to repair the septic system
          and make it functional again.

          Looking into this issue and in talking to Mr. Pena they costed out the
          project to serve five properties along 1,500 feet of unserved frontage
          would be approximately $47,000.  If they can go the right of a sewer
          assessment of some type of fund raising mechanism they could a portion
          the cost on other property owners.  One of the property owners had
          mentioned through correspondence that he would be willing to pay up to
          $12,900.  He added he has not be able to correlate the cost.
          He said if they can raise some of the money from them earlier it will
          be easier for them to do it.  They will explore the alternative of
          sewer assessment and notify them if they can fund this project.  It
          would require that the city fronts the money to do the job.

          Cm. Bruni suggested that we move away from the septic tanks because
          they are failing and the wastewater is going underneath 59 and down to
          the south part.

          Mr. Roman stated that in this case when the septic tanks were
          installed there was nothing else, there were no alternatives, the
          level of activity was very low, and he agrees that by going to the
          sewer assessment that it opens up the
          possibility of us doing the work and then recovering the money later
          on.  He suggested that if the business owners are willing to pay or if
          they can get them to raise a larger amount of money maybe instead of
          having to pay $47,000 exposure they can reduce it to $15,0000-$20,000.

          Cm. Bruni suggested that Mr. Roman explore that possibility, he wants
          a cost estimate and that a report on the issue be brought on the next
          council meeting.  He added that some of these residents are being
          charge for wastewater services and they are paying yet they don't
          receive no wastewater services.   He wants staff to talk to the
          property owners and come back with a recommendation on how to help
          these people because septic tanks are failing and if they do a water
          test on the opposite side of the highway, water it is contaminated.
          He said he does not want money invested in fixing the septic tanks, he
          wants them removed.

       3. Status report on the ongoing infrastructure improvements on the 2800,
          2900, and 3000 blocks of Lane with possible action.

          Mr. Roman reported that they had finished the replacement of the line
          and are ready to go,  the 2800 and the 2900 block had the most broken
          pipes replaced.  They are not going to touch the 3000 block, but Mr.
          Rivera informed him that there has been a pre-construction meeting for
          the resurrecting of the streets which means they might be mobilizing
          and working within 20 days.


          Cm. Bruni stated his only concern is whether they are going to
          resurface the street because they are in deplorable condition right
          now.

          Mr. Roman answered that they will be resurfaced.

       4. Status report on the ongoing activities that are being conducted by
          different departments related at Heritage Park.

          Mr. Roman reported on the water pressure problems.  He said they are
          buying materials to re-configure the service area, and hopefully
          within 30-60 days they can have a continuous pressure from a different
          point.

          Luis Landin, Traffic Director, reported that they have already
          installed the signs that were needed and they are planning to write a
          proposal for three (3) additional security lights to illuminate the
          area and with that they will have complied with the needs of that
          area.  They will be installing the crime watch signs as soon as the
          Police Department identifies the sites where they are needed.

          Cindy Collazo, CD Director, reported that regarding the junk vehicles,
          they were eight identified, five have been removed and staff is
          working on the other three, to get them operational.  Regarding the
          two violations on the basketball court, those have been removed.  In
          reference to the notices for the vacant lots, there were two and those
          have been complied with.   In reference to the skirting, that is a
          zoning issue but they will follow through with that.

          Rogelio Rivera, City Engineer, stated that the problems that Cm. Bruni
          observed have been taken care of.

          Police Chief Dovalina reported that they will continue their policing
          services, the POPS detail out there, they have initiated the
          neighborhood watch program in the area, and will be identifying the
          areas for the Traffic Department to install the crime watch signs.

    B.  Requests by Councilmember Alfonso "Poncho" Casso, Jr.

       1. Discussion and possible action regarding the creation of a Tree Board
          with possible appointees.

          Motion to table.


          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

       2. Discussion and possible action regarding the EMS Division of the Fire
          Department.

          Motion to table.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

    C.  Requests by Councilmember Eliseo Valdez, Jr.

       1. Consideration and possible action directing staff to begin preliminary
          analysis on the widening of McPherson Road between Calton Road and
          Saunders Avenue with possible inclusion into the 1999-2003 Capital
          Improvement Program.
          (Co-sponsored by Cm. Louis H. Bruni)

          Motion to begin a preliminary analysis and directing staff to
          incorporate it into the CIP, with the inclusion into the 1999-2003
          Capital Improvement Program.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

    D.  Requests by Councilmember Joe A. Guerra

       1. Status report concerning the progress of the infrastructure work being
          done along Gallagher Street in the Calton Gardens area.

          Cm. Guerra read a letter from Paragon Builders and signed by Juan
          Martinez addressed to Abrahan Rodriguez which read as follows:

          "This letter is in reference to the construction of the Gallagher
          Gardens Project.  Due to the lack of utilities like sewer, water, and
          storm sewer drainage we have lost valuable construction time.  Every
          time it rains we don't only loose the day's that rain, but also the
          days it takes job site to dry, since drainage of project was
          engineered  to drain to inlets to be installed, water has no place to
          go.  Recent rains like in February, it rained one we lost three days.
          March it rained 12th, 13th, 14th and 15th and expect to loose another
          three days of work until it dries.  That is if it doesn't continue
          raining.  Also the lack of not having utilities has caused us the
          inconvenience and the delay of time having to get water from the
          neighbors.  We at this time are behind schedule installing necessary
          utilities in project this time cannot be made up.  Also the increase
          of cost on labor and materials for the utilities installation, as you
          well know we already have had an increase of costs due to the delay on
          commencing project.  I would suggest we have a meeting so we can get
          into an agreement on this problems.  There is still a lot of work
          needed to complete project.  We have had a lot of problems trying to
          test our sewer and water lines without having the necessary utilities
          from the City."

          Fernando Roman reported that had originally been scheduled for
          February 15th to begin, they were delay a month because they haven't
          finish on other projects that they expected to finish.  They are
          mobilizing the wastewater crew and will be ready to do it on
          Wednesday.  They have one thing to do and that is to ask for the
          alignment of the water line.  Engineering staff informed them that as
          soon as they have the right-of-way issue settled they can proceed to
          install the fire hydrants, but they are proceeding to mobilizing the
          material, string it on the side and be ready.  The right-of-way is a
          paper issue and they will not install the fire
          hydrants until the issue is settled.

          Cindy Collazo stated that regarding the right-of-way,  they have been
          working diligently with the attorney of one of the property owners.
          She spoke to the attorney prior to the meeting, he indicated there is
          an issue of concern that he has regarding the structure owned by the
          property owner, he did not like the terminology that we had proposed.
          He insists on having it re-worded.  She said they will work with our
          attorneys, they will go to his office as soon as he arrives, he
          assures her that if the language is changed and if that is fine with
          our attorneys then he would have his
          client to sign that document tomorrow.

          Regarding the other property owner, there is a resolution item
          tonight, they encourage council to approve it, and if council approves
          it she thinks the gentlemen will sign it tomorrow also.  She hopes to
          wrap up this issue this week.

          Florencio Pena, City Manager, stated that staff had met with the
          Housing Authority over the project on several occasions, they
          recognized that the biggest hurdle is the right-of-way concern which
          Mrs. Collazo referred to.  Hopefully it will be resolved by tomorrow,
          but if it not resolved then there is a council meeting on the 23rd
          where other action may be required in order to get the project on
          target because the El Metro Housing Project is under construction and
          so we need to get the utilities in by the time that they are ready to
          open the facilities.

       2. Discussion and possible action regarding the request by the EMS
          Division of the Laredo Fire Department to split the EMS District in
          two in order to have three additional EMS supervisors.  This action
          would guarantee the presence of one supervisor per division at all
          times.

          Motion to table.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

    E.  Requests by Councilmember Consuelo Montalvo

       1. Appointment of Jose Arrellano to the Parks and Recreation Advisory
          Board.

          Motion to appoint Jose Arrellano to the Parks and Recreation Advisory
          Board.

          Moved : Cm. Bruni
          Second: Cw. Moreno
          For:  5                       Against:  0         Abstain:  0

XII.  PUBLIC HEARINGS

      45. Public hearing amending the City of Laredo's 1997-1998 annual budget
          by increasing estimated revenues and appropriations in the General
          Fund by $3,500.00 to fund the production of a Laredo Area Cemetery
          Preservation Plan; 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 $3,500.00
          to fund the production of a Laredo Area Cemetery Preservation Plan;
          and authorizing the City Manager to implement said budget, providing
          for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

      46. Public hearing amending the City of Laredo's 1997-1998 annual budget
          drawing down $500,000.00, from fund balance and $209,048.00, from
          salary savings reserve and transferring same to the Bridge Fund to
          appropriate said funds for amendment no. 3 on the engineering contract
          with Structural Engineering Company (SEA) and authorizing the City
          Manager to implement said budget.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo's 1997-1998 annual budget drawing down
          $500,000.00, from fund balance and $209,048.00, from salary savings
          reserve and transferring same to the Bridge Fund to appropriate said
          funds for amendment no. 3 on the engineering contract with Structural
          Engineering Company (SEA) and authorizing the City Manager to
          implement said budget.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

     46a. MOTION
          Approval of amendment no. 3, for an amount not to exceed
          $1,379,197.28, to the engineering contract with Structural Engineering
          Company (SEA), San Antonio, Texas, for the Laredo Northwest
          International Bridge (Fourth Bridge) to provide professional services
          required to complete the design of the border station. Also included
          are additional architectural/
          engineering (A/E) services required to complete the scope of work in
          amendment no. 1 as a result of (1) Changes in size of the buildings
          and docks and the quantity of paving beyond initial estimates due to
          federal requirements. (2) The addition of GSA Temporary Facilities.
          (3) The amount of project management due to extensive required
          negotiations with Federal and State agencies. The original contract
          amount was $70,450.00. This amendment brings the total contract amount
          to $2,059,047.28.  Funding is available in Bridge System Fourth Bridge
          Architectural Fees.

          Motion to approve.

          Moved : Cm. Guerra
          Second: Cm. Alvarado
          For:  5                       Against:  0         Abstain:  0

      47. Public hearing amending the City of Laredo's 1997-1998 U.S.  Customs
          Service Fund budget in the amount of $5,000.00, and authorizing the
          City Manager to enter into an agreement with the Department of
          Treasury/U.S. Customs Service for the reimbursement of $5,000.00 for
          funding the Laredo Border Violence Task Force to assist U.S. Customs
          Agents in conducting official Treasury investigations. These monies
          will be used to pay overtime wages for Laredo Police Narcotics
          officers involved in this Task Force. This will be the first year the
          City has entered into this agreement and is at no cost to the City.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo's 1997-1998 U.S.  Customs Service Fund
          budget in the amount of $5,000.00, and authorizing the City Manager to
          enter into an agreement with the Department of Treasury/U.S. Customs
          Service for the reimbursement of $5,000.00 for funding the Laredo
          Border Violence Task Force to assist U.S. Customs Agents in conducting
          official Treasury investigations. These monies will be used to pay
          overtime wages for Laredo Police Narcotics officers involved in this
          Task Force. This will be the first year the City has entered

          into this agreement and is at no cost to the City; providing for
          publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce.

          Moved : Cw. Montalvo
          Second: Cm. Bruni
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

      48. Public hearing altering and extending the boundary limits of the City
          of Laredo, for the voluntary annexation of additional territory of
          400.5859 acres, located in Porciones 12, 13, and 14 as further
          described by metes and bounds, specifically the Unitec Industrial Park
          Tract, providing for the effective date of the ordinance, adopting a
          Service Plan for the annexed territory, and establishing the initial
          zoning.

                      INTRODUCTION OF AN ORDINANCE
          Altering and extending the boundary limits of the City of Laredo, for
          the voluntary annexation additional territory of 400.5859 acres,
          located in Porciones 12, 13, and 14 as further described by metes and
          bounds, specifically the Unitec Industrial Park Tract, providing for
          the effective date of the ordinance, adopting a Service Plan for the
          annexed territory, and establishing the initial zoning.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

          Keith Selman, Planning Director, made the presentation and stated that
          there are some provisions that need to be made on the ordinance and
          the service plan itself.  The agenda reads correctly and the ordinance
          needs to read, "altering and extending the boundary limits of the City
          of Laredo for the voluntary annexation of additional territory".
          On the last two pages of the annexation service plan paragraph 4a and
          4b the word "petitioner" needs to be reworded to "developer".   On
          paragraph 5, it says, "the street lighting is required of all new
          development and will be provided" that needs to be changed to read "by
          the developer".

          Motion to amend to incorporate all the new changes as presented by Mr.
          Selman.

          Moved : Cw. Moreno
          Second: Cm. Alvarado
          For:  4                       Against:  0         Abstain:  1
                                                            Cm. Bruni

          There was no public input.

          Motion to close the public hearing and introduce the ordinance.

          Moved : Cw. Moreno
          Second: Cm. Alvarado
          For:  4                       Against:  0         Abstain:  1
                                                            Cm. Bruni

          Ordinance Introduction: City Council

      49. Public hearing approving an amendment to the contract with the Texas
          Department of Health and budget revision in the amount of $4,233.00,
          for the HIV/AIDS Housing Opportunities for Persons with AIDS (HOPWA)
          Project of the City of Laredo Health Department for the period
          beginning February 1, 1998, through January 31, 1999.

                      INTRODUCTION OF AN ORDINANCE
          Approving an amendment to the contract with the Texas Department of
          Health and budget revision in the amount of $4,233.00, for the
          HIV/AIDS Housing Opportunities for Persons with AIDS (HOPWA) Project
          of the City of Laredo Health Department for the period beginning
          February 1, 1998, through January 31, 1999.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  5                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and

          Moved : Cw. Montalvo
          Second: Cw. Moreno
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

      50. Public hearing authorizing the City Manager to amend the 1997-98
          Airport Fund Budget to appropriate $1,491,897.00, being the proceeds
          from the sale of Airport non-aeronautical use land and to increase by
          $245,000.00, the new airport passenger terminal construction line item
          to provide funding for a food sanitizer, restaurant and to finish out
          airline office space and ticket counters and to provide contingency
          funding.

                      INTRODUCTION OF AN ORDINANCE
          Authorizing the City Manager to amend the 1997-98 Airport Fund Budget
          to appropriate #$1,491,897.00, being the proceeds from the sale of
          Airport non-aeronautical use land and to increase by $245,000.00, the
          new airport passenger terminal construction line item to provide
          funding for a food sanitizer, restaurant and to finish out airline
          office space and ticket counters and to provide contingency funding;
          providing for publication and effective date.

          Motion to open the public hearing.

          Moved : Cm. Alvarado
          Second: Cw. Moreno
          For:  5                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce.

          Moved : Cw. Moreno
          Second: Cm. Guerra
          For:  5                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

 XIV.  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 : Cw. Moreno
       Second: Cm. Guerra
       For:  5                          Against:  0         Abstain:  0

      51. Authorization to solicit bids for the purchase of seven replacement
          para-transit vans. These vans have a capacity of eight passengers and
          will be used by the El Lift Program. A tentative bid award date is
          scheduled for April 20, 1998.

          Motion to approve.

          Moved : Cw. Moreno
          Second: Cm. Guerra
          For:  5                       Against:  0         Abstain:  0

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

       Moved : Cw. Montalvo
       Second: Cw. Moreno
       For:  5                          Against:  0         Abstain:  0

 XVI.  ADJOURNMENT

       Motion to adjourn.     Time:  8:55 p.m.

       Moved : Cw. Moreno
       Second: Cw. Montalvo
       For:   4                         Against:  0         Abstain:  0

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 36
ARE TRUE, COMPLETE, AND CORRECT PROCEEDINGS OF THE REGULAR CITY COUNCIL MEETING
HELD ON THE 16TH DAY OF MARCH, 1998.  A CERTIFIED COPY IS ON FILE AT THE CITY
SECRETARY'S OFFICE.



                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY

Minutes prepared by:  Delia Rodriguez

Minutes approved on: