CITY OF LAREDO

                          CITY COUNCIL MEETING

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

                                 MINUTES


        M-98-R-16                                  APRIL 6, 1998

   I.  CALL TO ORDER

       With a quorum present Mayor Elizabeth G. Flores called the
       meeting to order.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Elizabeth G. Flores led in the Pledge of Allegiance.

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

       Motion to excuse Cm. Alvarado.

       Moved : Cw. Montalvo
       Second: Cm. Perez
       For:  6                          Against:  0         Abstain:  0
       Cm. Casso was not present.

       Cm. Casso came in at 5:35 p.m.

       Motion to move up item IX-Communications to recognize various
       City of Laredo employees who participated in United Way.

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

       Motion to waive the regular order of business and move up item
       number 58 and 61 for consideration.

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

       Motion to waive the regular order of business and move items
       D(1), D(3), 48 and 45 for discussion and consideration.

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

  IV.  INTRODUCTORY ORDINANCES

       2. Second reading amending Ordinance No. 92-O-113 granting
          Southwestern Bell Telephone Company the non-exclusive right
          to use the rights-of-way in the City for its
          telecommunications business, by amending Section 4 to extend
          the franchise term for a period of two months from the date
          of expiration of March 31, 1998 until May 30, 1998; providing
          for publication and effective date.

          Ordinance Introduction: City Council

       3. Closing as a public easement that section of the 3000 block
          of Ross Street between India and Canada Avenues, situated in
          the Eastern Division, City of Laredo, Webb County, Texas and
          providing for an effective date.

          Ordinance Introduction: City Council

       4. Authorizing the granting and conveyance of a 12 foot wide
          utility easement located behind the Freddie Benavides Outdoor
          Recreational Complex to Central Power and Light Company, and
          authorizing the City Manager to execute any necessary
          documents of conveyance, in order to allow for the provision
          of electrical services to the New Laredo National Bank South
          Branch building located at the intersection of State Highway
          83 at Chacota Street said 12 foot wide utility easement being
          more particularly described by metes and bounds.

          Ordinance Introduction: City Council

       5. Authorizing the City Manager to execute a lease with the City
          of Laredo for approximately 4,000 square feet of office space
          constituting the Second Floor of Building No. 132 located at
          4719 Maher Avenue.

          a. Lease term is for one (1) year commencing May 1, 1998 and
             ending April 30, 1999, and may be extended for four (4)
             terms of one (1) year each ending April 30, 2000, April
             30, 2001, April 30, 2002, and April 30, 2003.
          b. Monthly rent shall be $3,200.00, and will be adjusted
             annually during the primary and extension terms of this
             lease according to changes in the Consumer Price Index.

          This office space was previously occupied by the Airport
          Director's Administrative Staff.

          Cm. Casso wants staff to provide Council with a report as to
          how many employees were projected to work on this building
          to work efficiently and how many are working in this facility
          at the present time.  How many are working at the present
          moment, what the goal is, and what the future plans are.

          Ordinance Introduction: City Council

       6. Authorizing the City Manager to execute a lease with South
          Texas Workforce Development Board for approximately 4,234
          square feet constituting Building No.  1054 located at 4812
          North Bartlett Avenue.

          a. Lease term is for one (1) year commencing March 1, 1998
             and ending February 28, 1999, and may be extended for one
             (1) year ending February 29, 2000.
          b. Monthly rent shall be $3,600.00, and will be adjusted
             annually during the primary and
             extension term of this lease. Previous monthly rent was
             $3,437.89.

          Ordinance Introduction: City Council

       7. Authorizing the City Manager to execute an amendment to the
          Lease and Specialty Gift Shop Concession Agreement approved
          by Ordinance No. 97-O-322 dated January 5, 1998, between the
          City of Laredo and Jesus Garcia. Said amendment will include
          the requirements for operating a Retail News/Gift Shop
          Concession and because of a typing error change the square
          footage from 1,556 to 556.

          Ordinance Introduction: City Council


   V.  FINAL READINGS

       Motion to waive the final reading of ordinances #98-O-091,
       #98-O-092, #98-O-093, #98-O-094, #98-O-095, #98-O-096,
       and #98-O-097.

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

       8. 98-O-091  Rescinding Section 5-4:  No Permits Required for
                    Agricultural Buildings, of the Subdivision
                    Ordinance Handbook; and providing for publication
                    and effective date. (City Council)

                    Motion to approve.

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

       9. 98-O-092  Amending the Zoning Ordinance (Map) of the City of
                    Laredo by authorizing the issuance of a Conditional
                    Use Permit for auto wrecker service and impound lot
                    on all of Block 1559, Eastern Division, located at
                    2601 Guadalupe St.
                    (City Council)

                    Motion to approve.

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

      10. 98-O-093  Amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning 0.755 acres as further described
                    by metes and bounds located on Remington Dr., from
                    R-1 (Single Family Residential District) to R-1A
                    (Single Family Reduced Area District).
                    (City Council)

                    Motion to approve.

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

      11. 98-O-094  Amending the Zoning Ordinance (Map) of the City of
                    Laredo by rezoning Lot 7A, Block 906, Western
                    Division, located at 3502 Santa Maria Ave., from
                    B-1 (Limited Business District) to B-3 (Community
                    Business District).  (Mario G. Alvarado)

                    Motion to approve.

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

      12. 98-O-095  Amending provisions of Section 24.73 of the Laredo
                    Land Development Code relating to permits for the
                    drilling, re-entry, or recompletion of oil and gas
                    wells, specifically Section 24.73.1 (4)(a),
                    providing distance restrictions for future
                    development, 24.73.3, providing enforcement for
                    ordinance violations, and Section 24.73.4 (12),
                    requiring a fee for re-entry and recompletion
                    operations, and Appendix "A" amending the
                    definition of "Recompletion Operations".
                    (City Council)

                    Motion to approve.

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

      13. 98-O-096  Creating a special restricted revenue fund in
                    accordance with the Canseco Foundation's Endowment
                    in the amount of $50,000.00 to the Laredo Public
                    Library for children's programming and amending the
                    City of Laredo FY 1997-98 Annual Budget to reflect
                    the creation of this fund.  The fund will be named
                    the Canseco Foundation's Children Endowment Fund.
                    (City Council)

                    Motion to approve.

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

      14. 98-O-097  Amending the City of Laredo FY 1997-98 Annual
                    Budget by reclassifying ten fire fighters to ten
                    assistant driver positions authorized by City
                    Council to be effective upon adoption, and
                    authorizing the City Manager to implement said
                    budget. (City Council)

                    Motion to approve.

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

  VI.  RESOLUTIONS

      15. 98-R-051   Authorizing the City Manager to accept $5,000.00,
                     from the Office of the Comptroller for funding a
                     Tobacco Compliance Program.  This money will be
                     used to pay overtime wages to Laredo Police Crime
                     Prevention officers for the enforcement of Senate
                     Bill 55. This will be the first year the City will
                     enter into this agreement and is at no cost to the
                     City.

                     Motion to approve Resolution #98-R-051.

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

      16. 98-R-052   Directing publication of notice of intention to
                     issue City of Laredo, Texas Combination Tax and
                     Airport Revenue Certificates of Obligation, Series
                     1998, in the principal amount of $1,450,000.00,
                     for the purpose of paying all or a portion of the
                     City's contractual obligations for purpose of
                     acquisition of land at the Municipal Airport in
                     connection with the settlement of a lawsuit in
                     reference to noise abatement at the City's Airport
                     and the payment of legal and fiscal fees in
                     connection with this project.

                     Motion to approve Resolution #98-R-052.

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

      17. 98-R-054   Approval of a resolution authorizing the City
                     Manager to submit an application to the United
                     States Environmental Protection Agency for a grant
                     in the amount of $100,000.00,  with the City
                     designating $20,000.00, in matching funds and/or
                     in-kind services for a total of $120,000.00, to
                     implement a Household Hazardous Waste Collection
                     and Proper Disposal Program (HHWC&PDP) for a total
                     of three events in 1998 and 1999.

                     Motion to approve Resolution #98-R-054.

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

      18. 98-R-055   Authorizing the City Manager to enter into an
                     Agreement (Convenio) between the City of Laredo
                     and the Secretaria de Comunicaciones Y Transportes
                     ("SCT") of Mexico for the construction of the
                     Laredo IV - Nuevo Laredo III International Bridge.

                     Motion to approve Resolution #98-R-055.

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

      19. 98-R-056   Accepting the donation of seven parcels of land
                     from the heirs of Mr. Isaac Hirsch.  Said parcels
                     being Lots 2, 3, 8, and 9, Block 158, Western
                     Division, all of Block 724, Western Division, and
                     Lot 1 and the West 1/2 of Lot 2, Block 1082,
                     Eastern Division, City of Laredo, Webb County,
                     Texas.

                     Motion to approve Resolution #98-R-056.

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

      20. 98-R-057   Declaring the public necessity to acquire the
                     "Surface Only" of one parcel of land necessary 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 ten feet of Block
                     No. 3 and the West fifteen feet of Blocks Nos. 2,
                     15, and 18, 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. This may initiate process of
                     revolving special use permit.

                     Motion to approve Resolution #98-R-057 with a
                     correction to change "East ten feet" to "East
                     fifteen feet".

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

      21. 98-R-058   Amending Resolution No. 98-R-034 by which the City
                     Council declared the public necessity to acquire
                     the "Surface Only" of one parcel of land necessary
                     for the construction of the Laredo Northwest
                     International Fourth Bridge, being Parcel 1
                     931.1786 acres of land, more or less), out of
                     Porcion 19, Abstract 47, City of Laredo, Webb
                     County, Texas. Said amendment will provide for the
                     acquisition of an additional 7.4147 acres of land
                     for an amended total of 38.5933 acres of land to
                     be acquired.

                     Motion to approve with the correction to change
                     "931.1786 acres" to "(31.1786 acres ".

                     Moved : Cm. Bruni
                     Second: Cm. Perez
                  For:  r  7        Against: ■ :      Ab  Abn:  0:h
H
 
    2. 98-R-059 059 prova■■ ■solution auth|thong the City
                     Man─he to submsubai  ppliplio─ tontte Uniten
   ─       ─        States Env Ennient─l tal Protection Agency for two
                     grants in the amount of $100,000.00, with the City
                     designating $100,000.00, in matching funds and/or
                     in-kind services for a total of $200,00.00, to
                     construct a permanent household hazardous waste
                     facility.

                     Motion to approve with the correction change of
                     "two grants" to "a grant".

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

 VII. MOTIONS

      23. Approval of bid specifications and authorization to advertise
          for bids for the following:
          a) Fire Hose - Fire Department
          b) Water Taps, Annual Contract - Utilities Department
          c) Asphalt Repairs, Annual Contract - Utilities Department
          d) Preventive Maintenance Contact, Variable Frequency Drives,
             - Utilities Department
          e) City Hall Building Telecommunication Re-Wiring Project
          f) Police/Fire Department Uniform Contract
             (6 m)
          g) Park Equipmeipme Playglound St└uStrre, SantaantaP└rk
    h ý h A tentative ive award date is scs scheduled for
          May 18, 1998.

          Motion to approve.

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

      24. Approval of the construction plans and specifications and
          authorization to advertise for bids for the widening of
          Bustamante Street between Meadow Avenue to Foster and the
          widening of Meadow Avenue between Saunders Street to
          Bustamante Street, with tentative award on June 1, 1998.
          This project is part of an EDA Grant Project No.  08-01-3080
          Airport Medical Infrastructure Improvements.  Funding is
          available in the EDA Airport/Medical Park Fund.

          Motion to approve.

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

     25. Approval of selection and authorization to negotiate an
          engineering contract with Sherfey Ene└ig Cm└ampan   Ç └    Laredo, Texas, to  to ide sur eys, desidnagd prepprepion ofh
          plans and 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. Perez
          Second: Cm. Bruni
          For:  7                       Against:            Abstain:  0

      26. Approval of the selection of consultants and authorization to
          negotiate six (6) engineering contracts to design, prepare
          plans and specifications and cost estimates for the City of
          Laredo 1997-98 Certificate of Obligation Issue Projects:

          a. 400 W. Plum Street at San Francisco Avenue Drainage
             Improvements to WSBC Civil Engineers
          b. 1200 Frost Street at Lyon Avenue Drainage Improvements to
             WSBC Civil Engineers
          c. Alma Pierce Elementary School and Trautmann Elementary
             School Sidewalks to G.G. Salinas Engineering Company
          d. Chaparral Drainage Improvements to Porras Engineering
             Company.
          e. Texas Avenue/Price Street Drainage Improvements to Crane
             Engineering Company
          f. Calton Road Widening, adjacent to the New Main Library to
             Mejia Engineering Company

          Funding is available in their respective construction project
          account from the C.O. Bond Issue.

          Motion to approve.

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

      27. Approval of selection and authorization to negotiate an
          engineering contract with Smith Banc Equipment, Inc., San
          Antonio, Texas, to provide engineering services to include a
          feasibility study, surveys, design and preparation of plans
          and specifications for the Laredo Bridge Department Security
          Systems at the three Laredo International Bridges and the
          proposed Fourth International Bridge.  Funding is available
          in the Bridge System Toll Plaza Improvements.

          Motion to approve.

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

      28. Approval of selection and authorization to negotiate an
          architectural contract with Design Group International,
          Laredo, Texas, to provide architectural services for
          Repairing and Remodeling the Canizales Gym located at 1600
          Guadalupe Street.  Funding is available in the 1998
          Contractual Obligation Issue.

          Motion to approve.

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

      29. Approval of selection and authorization to negotiate with
          EMCON Engineering and Environmental Services, Austin, Texas,
          for consulting engineering services for an automated leachate
          collection system at the City of Laredo Type I Landfill
          located on Highway 359 which is to include surveying,
          engineering design, specifications for pumps, sensors,
          control panels, other system components and storage facility,
          preparation of specifications, construction plans, cost
          estimates, and construction management as required for
          compliance with the Texas Natural Resource Conservation
          Commission's Subtitle D Requirements of 30 TAC 330 Municipal
          Solid Waste Regulations.  Funding is available in the
          Landfill Project Engineer Fees.

          Motion to approve.

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

      30. Authorizing the City Manager to issue a Request For Proposals
          to Local Veterinarians to furnish professional services
          during the Pet Spring Rabies Vaccination Campaign.

          Motion to approve.

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

      31. Award of annual contract to the SOLE BIDDER, Aldo T.
          Rodriguez DBA Laredo Electric Motor Service, Laredo, Texas,
          in the estimated amount of $30,000.00, for providing electric
          motor repair service for the Utilities Department. The bid
          pricing will be firm during the contract period and all
          repair work will be secured on an as need basis.  The
          contract pricing is approximately the same as the previous
          contract period.  Funding is available in the Utilities
          Department, Wastewater Collection Division -maintenance and
          Utilities Department, Water Treatment Division - maintenance

          Motion to approve.

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

      32. Award of contract to the SOLE BIDDER, Sani Pak Pacific,
          Tracy, CA., in the amount of $71,060.00, for the purchase of
          a high vacuum/high garbage sterilization system for the new
          passenger terminal.  This system is required by the U.S.
          Department of Agriculture (USDA) in order to properly discard
          garbage arriving in international commercial passenger
          flights. Delivery is expected within ninety days.  Funding is
          available in the Airport Fund, Capital Outlay -
          machinery/equipment other than auto.

          Motion to approve.

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

      33. Award of contract to the LOW BIDDER, Techsas, Houston, Texas,
          in the amount of $20,101.50, for the purchase and
          installation of twelve pneumatic pumps at the City Landfill.
          The pumps will be used to collect groundwater samples at the
          City of Laredo Landfill as required by Texas Natural
          Resources Conservation Commission (TNRCC) Municipal Solid
          Waste regulations.  The City received a total of two bids for
          this purchase.  Funding is available in Landfill Capital
          Outlay.

          Motion to approve.

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

      34. Award of six month rental contracts to the following LOW
          BIDDERS:

          a) Holt Co. of Laredo,
             Laredo, Texas            $164,400.00,
             2 - 23 cubic yard
             scrapers,
             1 - water wagon
          b) Nueces Power Equipment,
             Laredo, Texas            $ 15,600.00,
             1 - sheepfoot compactor

          This equipment will be used by the Public Works Department
          for the earth work needed at the Father McNaboe Park. This
          equipment will be needed for a period of six months.  The
          City received a total of three bids for this contract.
          Funding is available in the Capital Improvement Fund Father
          McNaboe Park.

          Motion to approve.

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

      35. Award of contract to the LOWEST BIDDER, TAC Environmental
          Co., Laredo, Texas, in the amount of $6,900.00, for the
          removal of two - 5,000 gallon underground storage tanks and
          ancillary equipment from the City of Laredo Airport Fuel
          Farm. Funding is available in the Airport Fuel Farm.

          Motion to approve.

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

      36. Award of thirty six month lease purchase contract to the LOW
          BIDDER, Sames Motor Co., Laredo, Texas, in the amount of
          $228,286.20, for the lease of twelve vehicles for the Police
          Department.  These vehicles will be used by the
          administrative staff and the detective division. At the end
          of the lease contract the City will own the vehicles.  The
          City received a total of three bids for the lease of these
          vehicles.  Funding is available in the Police Trust Fund
          budget.

          Motion to approve.

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

      37. Award of contract to the LOW BIDDER MEETING SPECIFICATIONS,
          Pace Analytical Services, Inc., Houston, Texas, in the
          estimated amount of $15,648.00, to provide laboratory
          analytical services for the groundwater samples collected at
          the City of Laredo Landfill as required by Texas Natural
          Resources Conservation Commission (TNRCC) Municipal Solid
          Waste regulations. Samples will be taken on a quarterly
          basis, testing for ten different parameters. Pace Analytical
          has extensive experience with all TNRCC requirements.
          Funding is available in the Landfill - Contractural Services.

          Motion to approve.

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

      38. Award of a construction contract to the LOWEST BIDDER, BNC
          Environmental Services, Inc., Houston, Texas, in the amount
          of $530,820.00, for the construction of an approximately
          seven (7) acre composite landfill liner for Type I Cells 9
          and 10.  Funding is available in the Landfill Improvements
          Other Than Buildings.

          Motion to approve.

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

      39. Approval of change order no. 1, a decrease of $10,390.00, for
          the balance of quantities actually constructed in place,
          acceptance of the Paving of International Blvd. Project, from
          Salinas Key Subdivision to the west end of Meadowlands
          Subdivision, approximately 1,800 L.F., and approval of final
          payment in the amount of $33,465.25 to Libcon, Inc.  The
          original contract amount was $304,542.50. This change order
          bring the total contract amount to $294,152.50. Funding is
          available in the Capital Improvement Fund International Blvd.

          Motion to approve.

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

      40. Approval of change order no. 1, a decrease of $13,211.80,
          acceptance of the Alma Pierce Elementary School Drainage and
          the Herradura Rancho Viejo Drainage Improvements Projects,
          and approval of final payment in the amount of $47,522.34 to
          McLean Construction Inc., Killeen, Texas. The original
          contract amount was $261,012.40.  This change order bring the
          total contract amount to $247,800.60.  Funding is available
          in the Capital Improvement Fund Herradura/Rancho Viejo
          Drainage.

          Motion to approve.

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

      41. Approval of change order no. 1, a decrease of $2,165.00, for
          the balance of quantities actually constructed in place,
          acceptance of the Southgate Pilot Channel Improvements, and
          approval of final payment in the amount of $67,592.24, to
          Pete Gallegos Paving, Inc. The original contract amount was
          $333,823.00. This change order will bring the total contract
          amount to $331,658.00. Funding is available in the Drainage
          Improvements - Southgate Pilot Channel.

          Motion to approve.

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

      42. Rescinding the contract awarded to Powell Watson Motors,
          Laredo, Texas, in the amount of $57,924.00, for the purchase
          of three, 3/4 ton, dedicated CNG engine trucks. The engine
          bid by Powell Watson Motors was not a dedicated CNG engine
          but rather a gasoline engine that was ready for CNG
          conversion.  Staff is requesting authorization to purchase
          these vehicles from the next bidder, Philpott Motors, Port
          Neches, Texas, in the amount of $61,797.00.  Funding is
          available from 1998 contractual obligation issue proceeds and
          from surplus in previous CO issues.

          Staff also requests authorization to purchase two additional
          trucks with the bid pricing from the contract awarded on
          03/16/98. One 1/2 ton extended cab truck with a dedicated CNG
          engine, will be purchased from the low bidder, Sames Motor
          Co., Laredo, Texas, in the amount $21,650.00. This truck will
          be assigned to the creek cleaning operation and funding is
          available from the monies allocated for the purchase of creek
          cleaning equipment. A 1/2 ton regular cab truck with a CNG
          bi-fuel system, will be purchased from the LOW BIDDER,
          Philpott Motors, Port Neches, Texas, in the amount of
          $18,864.00. This truck will be assigned to the Health
          Department's WIC program. The Texas Department of Health
          authorized the purchase of one truck from WIC surplus funds.

          Motion to approve.

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

      43. Refund of property taxes in various amounts to the following
          individuals or companies:

          a. J.C. Trevino III, Trustee, in the amount of $1,946.33 as a
             result of a clerical error.
          b. Norwest Mortgage Inc. in the amount of $730.58 as a result
             of an overpayment.
          c. The Laredo National Bank in the amount of $514.23 as a
             result of a clerical error.
          d. First (1st) Nationwide Meeting in the amount of $524.65 as
             a result of an overpayment.
          e. U.S. Small Business Administration in the amount of
             $798.25 as a result of a clerical error.
          f. North House Inc. in the amount of $1,329.08 as a result of
             a clerical error.

          Motion approve.

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

      44. Motion approving the Early Voting Branch sites and Early
          Voting Temporary Mobile locations.

          Motion approve.

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

VIII.  CITY MANAGER'S REPORT

      45. Presentation by Frank Leach of the Laredo Development
          Foundation regarding an incentives package for Laredo/Webb
          County economic development.

          Mr. Frank Leach, Director of LDF, stated that the City
          Manager along with people from the Economic Advisor Council
          had asked LDF to make recommendations to the City on an
          incentives package and in ways in which the LDF Board did and
          approved this report on March 12th.

          He explained that over the last year or so they have seen
          more and more industrial prospects of all kinds visiting
          Laredo and every prospect that comes into town starts by
          gathering information and by asking, does Laredo grant tax
          abatements?  Does Laredo have enterprise zones?  The answer
          up to now is no.  He said the most recent policy statement,
          from the City was done in April 1990/91, at that time the
          City decided that they would not be granting incentives or
          tax abatements or anything else because the City needed to
          spend money on infrastructure and other things.

          He went through several points that were covered in arriving
          at their decision.

          On incentives in general, he said it is a very controversial
          issue.  The most controversial is of course, granting tax
          abatements.  There are many arguments against that, and the
          very principle being the one that the city arrived at before,
          that you are better off to use tax money to do infrastructure
          and other kinds of improvements than you are in granting
          abatements to individual businesses and there are others
          including one, that says that if a company needs a tax
          abatement, then how solid is the company.

          He spoke of the arguments against it and the arguments in
          favor.  In favor of course, that every body else does it,
          this is the classic, we have to do it because other people do
          it, it is a copycat thing, and in a lot of cases being a
          copycat is not good.  In this case however, since everybody
          in the state is offering some form of incentives or others,
          you may or may not get the chance to get farther into
          negotiations if you don't offer something, if the community
          is not evidencing some interest in attracting industry.

          Areas of Agreement:  Those on both sides of the issue agree
          that if incentives are used, they should:

          (a) be specifically targeted to fit the priorities of the
              local strategic plan,
          (b) be individually negotiated and measured for cost-benefit
              to the community.
          (c) be contractual, there must be an actual contract between
              the City and the County and the industry and that
              contract must be fully disclosed publicly
          (d) it must be tied to employment, wages & training programs
          (e) be periodically evaluated, and overhauled as necessary
          (f) they must be offered to local companies, especially small
              business, for expansions or new start-ups
          (g) be effectively protected by cancellation, recalibration
              and "claw-back" provisions which would insure the return
              of the community's funds if the companies default on
              their part of the agreement.

          He further mentioned that the city and the LDF strategic plan
          both mention the possibility of offering incentives to
          industry.

          City:  The second of the Top 6 Priority Goals is
          "Recognize/establish a pre-approved industrial incentive
          package that builds on an economic development strategy."

          LDF:  Under the Industrial Attraction section of he work plan
          is "Advantage/Incentive Package"-to be competitive.  Los
          Laredos's must have a well-defined package which covers
          primary site selection factors such as location, workforce,
          utilities, taxes, transportation, financing, industrial
          sites, quality of life, etc. and lists (a) the advantages
          Laredo already has and (b) the incentives Laredo is willing
          to offer, or at least negotiate on a case-by-case basis, to
          be competitive with other communities.

          They are suggesting that there be a negotiating team
          responsible for monitoring the businesses.  That the team
          consists of two representatives of the city, two from the
          county, the LDF staff person, a representative of the Job
          Training Partnership Act, the Texas Work Force Commission and
          any private sector people involved with that project or doing
          the financing or any consultants they have.  Assuming the
          school districts come in, then representatives from them
          also.  They are suggesting that they be the negotiating team
          to sit down with the company, negotiate the deal and report
          back and monitor it as it goes along.

          The incentives that they recommend are as follows:
          1) that the incentives overall be performance based, they
          must be offered to local companies, they must not unfairly
          compete with local companies.  They must be negotiated
          quickly, they must be contractual, must have claw-back
          provisions.  They are recommending that the City and the
          County establish zones.  They aecommcommending that the City
          establish two enterprise zones and that the County do either
          a re-investment zone or an empowerment zone and a geographic
          area.  They would like this zones are as follows:

          That the city set up one Enterprise Zone downtown, which
          simply covers downtown and the Historic Districts.
          Enterprise zones can only be 10 miles or at the most 20
          miles.

          The other zone within the city limits, they are suggesting
          the second zone cover all of M-1, M-2, B-2 and B-3.

          Outside the city limits, they are recommending that the
          County Commissioners set up a rural empowerment zone or a
          re-investment zone to cover the colonias, Mirando City,
          Bruni, Oilton and Aguilares, they county could in fact
          include Zapata and other areas outside the county because
          those areas can be multi-county.

          On tax abatement, he said the city has a tax abatement
          program for the Historic District and the County has sort of
          a volunteer program, has considered one from time to time,
          but hasn't taken any action so far.  They are recommending
          that council consider the tax abatement policy based on this
          formula:

          (1) To abate 1/4 for a five year period maximum.

          (2) The second tier would be from 100-150 jobs plus a $2.5
              million to a $5 million investment, the city would rebate
              50% of its taxes about $6,750.00.

          (3) From 150-200 jobs plus an investment of $5 million to
              $10 million they are suggesting a 75% abatement and then
              over 200 jobs and over a $10 million investment they are
              recommending a 100% rebate for five years.

          On equipment, the status of the project at the end of five
          years, if possible whether they will participate in the JTPA
          program, whether they are hiring people, percentage of hiring
          local workers, etc.  They are suggesting that they have a
          check list, and at the end of the process make a report.
          They are also suggesting the private sector make commitments
          as well, there are people in the private sector that are
          willing to do things.   They are suggesting that the rest of
          the private sector come up with a package.

          He delivered a lengthy document to the City Manager and asked
          council consideration on it and stated that  after it has
          been discussed at length they can come back.

          Mr. Pena stated there are many cities that have incentives to
          this type and what has been discovered is that there are not
          very many businesses taking advantage of these programs.  He
          said they feel comfort wieh te substanceaof wha whas
  
      Lbe nbdonŁ, a, and d rlcŁmmendmin. 

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          He stetet the taxissui sse hs going to require a lot of study
          reseresearch in depth to see if it is really in the interest
          of this community.  He feels they should keep focus on one
          goal and that goal is to reduce the local tax rate which is
          how we can attract businesses here.

          Jerry Scwebel stated that the presentation that Mr. Leach has
          made is to see what this city feels and thinks of economic
          development.  The message that council will send to
          the private sector and the outsiders of Laredo is that we are
          looking at sitting down and talking to you and looking at
          certain incentives to allow them to come in and create jobs
          in the community.  He feels that is what the message is.
          This process of the incentive is part of the process of the
          development of the strategic plan, it has come out of the
          workshop and out of dialogue and debate as to what they can
          propose, and LDF has taken the leadership role and said, "let
          us go for it and prepare something for your consideration",
          they have done it, and at this point presented to the
          Business Council (the City Manager) and there seems to be
          great support for it so this evening the message that they
          send by looking at and reviewing this if they support it will
          go a long way in the message that they send to the private
          sector.  The issue is not "jobs" but "good jobs" for this
          community.

          Mr. Eloy Cantu who has worked with LDF in trying to
          attract industry stated he is not a member of the board, but
          he visits and goes with them out of town stated this is a
          complicated issue, but he would like the City Council support
          LDF and if it requires another workshop then lets do it.  He
          concluded by saying that the message the City Council sends
          would show a business friendly attitude to people
          outside and inside our community.

          Mr. Pena asked if council wishes to acknowledge this report
          and direct City Manager to proceed in its development, then
          they need a motion.

          Cm. Valdez stated he just wants recommendation to continue
          exploring this.

          Cm. Bruni asked if staff can recommend something on this
          particular report, what it sees beneficial and what they see
          a problem with.

          Motion to instruct that staff to continue to explore the idea
          of the tax abatements, bring it back with a report and
          recommendation.

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

      46. Status reports regarding the implementation of the City of
          Laredo FAR PART 150 Airport Noise Comparability Program and
          installation of the Terminal Automated Radar Display
          Information System (TARDIS).

          Jose L. Flores, Airport Director, reported that in March when
          they traveled to Washington and met with FAA officials they
          indicated in a very positive manner that Laredo would soon be
          getting its first grant to start the implementation of the
          noise program.  Since then, they have updated the application
          to FAA for federal funds and requested comments from the
          Texas Historical Commission, the U.S. Corps of Engineers, and
          the Texas Parks and Wildlife which are the review agencies
          that review projects of this sort for environmental impacts.
          They are optimistic that soon they will be receiving funding
          from FAA.   He knows that they have started releasing grants
          to some airports and he knows we are in line, but he cannot
          say specifically the date, but every indication from FAA
          indicates it will be soon.

          In reference to the TARDIS System, he said they have received
          a proposal from FAA for cost reimbursement for the people in
          Kansas City to Laredo and install our TARDIS System.  He said
          they have had all the equipment for a long time and their
          proposal calls for approximately $8,400.00 in reimbursement
          for travel.  They believe that is excessive and they are
          presently negotiating with them to lower the cost.  The
          TARDIS is still not operational, it will be operational as
          soon as FAA can come down and install the system.

          Cm. Bruni stated they have been at this for a year and a
          half.  He said this system would greatly safeguard the skies
          in the City of Laredo and he does not think $8,400 is worth
          having an air accident.  He thinks they should just pay FAA
          and reimburse them what they think the city owes them.

          Motion to instruct staff to meet with FAA and approve the
          $8,400 expenditure and have them here at the earliest
          available date.

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

       47. Discussion and possible action on request to reconsider the
           site of 51 acres of highway frontage purchased by the City
           of Laredo for Fire Training Facility at this location.

           Florencio Pena, City Manager, stated he received the report
           from Mejia Engineer dated April 3rd.  He identifies various
           concerns regarding this particular site.  One of the areas
           of concern is the topography.  This will be located where
           the landfill is located, and because of the topography they
           are going to have to divide the fire training facility into
           three areas and that may not be an efficient operation for a
           training facility.  The Fire Chief has also had several
           concerns regarding the development of some residential areas
           in that vicinity and the fact that it is at Highway 359
           which would be a distraction for people travelling that
           highway.  They are asking City Council to abandon the idea
           of building a facility there so that they can proceed to
           prepare a request for proposals to begin looking at another
           site.  He said that involves reimbursing the fire training
           facility bond fund, approximately $625,000.00 which was used
           to buy these 50 acres.  As of yet, they have not figured how
           to go about doing that, they might be able to amortized it
           over some years, but they will come back to council on that.
           The most critical thing is to begin identifying proposals to
           seek alternative sites, they have funds available to build
           that, they have borrowed the funds, they just need to move
           the project along.

           Cm. Casso stated they all agreed that the location is not
           viable, how much time is left before they need to build that
           fire training facility because those bonds were sold in
           1994?  Has time run out yet?

           Conrado Hein, Finance Director, answered no, the only
           problem is if we don't build something and we start earning
           interest on those dollars in excess of what we are paying
           the bond holders we have to rebate it to the government.  He
           said it is in our best interest to build.  In terms of the
           reimbursement, they talked to the bond counsel and they
           do not have to reimburse for capital appreciation, they
           don't have to pay interest and it can be done on an
           installment basis.

           Cm. Casso asked that council be informed how this will be
           done as soon as possible.

           Mr. Pena answered they will be informed, but in the meantime
           he encouraged council to allow them to proceed to prepare
           proposals and begin looking for another site.

           Motion to allow staff to proceed to prepare proposals and
           begin looking for another site.

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

           Cm. Guerra wants staff to look at the old detention center
           as a possible alternative use for the training facility.

       48. Presentation by Rust Engineering on the status of the
           landfill vertical expansion permit and a contingency plan to
           acquire land for future landfill needs.

           Mr. Bryand Dodley, Senior Project Engineer, presented
           figures that showed the design drawing in its current stage.
           He showed photos of the landfill, and stated they are about
           a year into the design process and are three weeks away of
           submitting a final product to the city for their last review
           prior to it going to TNRCC as a permit amendment to the
           current landfill.

           He explained that the current landfill is about halfway
           developed, it has been operating since 1988, the original
           design was developed when it was very inexpensive to operate
           a landfill, new environmental regulations came into place in
           1993 and now it is very expensive to line, put final covers,
           and do all the groundwater, and monitoring on any landfill
           site that is constructed.  The economics have gone through
           the roof and into the sky on operating a landfill, but it is
           something that every existing project, and every new project
           has to put up with.

           The original design was for very low landfill, not for very
           much depth of waste.  They are looking at about four years
           of life left with the original design at the current
           landfill.

           He quoted, that the city having to develop this land in its
           entirety, under its current design, or a new expanded design
           that goes up higher, the economics, and why he thinks
           council took the decision to do a vertical expansion over a
           year ago, was that to build out the additional 70 acres of
           the site over the next four years which is going to cost
           probably $9 million just in liners and in the final cover
           that goes on the buried waste.  This $9 million that goes
           into developing landfill, can give the city capacity for
           four years with its current design or for 20 years with an
           expanded design.

           What they are looking at is to go up higher, but they will
           only go up higher over the same area, about 150 acres that
           was originally designed for the landfill, they are going to
           go deeper (about 10' feet deeper) with the landfill as well.
           Significantly, this site for the landfill is an ideal site.
           It has good highway access, it is set back from the highway
           at least 700 feet that helps the city provide screening and
           buffering from view, the highway site of the landfill on the
           south is higher then to the north near the railroads, so
           that the site drops about 70 ft. elevation as you move
           towards the railroad.  The nearby land is industrial, it is
           located amongst rolling hill, and quite a bit of topographic
           change and elevations, the land routinely moves up and down
           up to 100 feet in elevation as you go south of the highway
           to the north of the landfill near the railroad track.

           He added they are 95% complete with the project, they have a
           team of 14 designers and landfill specialists working on the
           job He added that by April 30th Rust will present design
           plans and documents to the Public Works Department of
           information that will be submitted to the state.  The city
           in a matter of a week or two will review on this report, do
           final reproduction, final modifications and in May it will
           go to the state as permit amendment application.  It is
           anticipated that the state will go through a six month
           process of technical review to make sure all the components
           are there, they will review the engineering and make sure
           all the requirements are adhered to.  This is a site that
           posses no major technical risks, all the risks of
           groundwater contamination is very remote, and once they go
           through this technical review process by the state staff,
           then there will be an opportunity for any impacted
           individuals in the area to request for public hearing which
           should take approximately two months, if there is a permit
           hearing requested they will go into that process, it will be
           a formal administrative hearing where he and his staff will
           present all technical aspects of this for the hearing
           examiner and then it will go to the Texas Natural Resource
           Commission for their action. This process is about 8-12
           month process beginning in May.

           Mr. Pena said this concludes the general status, and the
           only part that remains here is the estimate assuming there
           is a public hearing and in the worst case scenario and
           having a public hearing requested or what kind of a time
           frame they would be looking at getting a vertical expansion
           permit or 15th months from today.

           Cm. Casso questioned the engineer on the contamination
           issue and wanted an update status as to where we are on
           this.

           Mr. Dodley stated the landfill has followed the state
           procedures on setting up and getting approval for a
           groundwater monitoring system.  They are on target, most of
           the wells have been installed and the state has not required
           sampling to this date.  They are waiting for final approval
           from the state of the construction of the wells, once they
           do that they expect the city to begin to do monitoring.
           They will begin on four times a year and then cut to twice a
           year and they establish what the backgrounds levels are.
           The city has followed the correct procedures in timing for
           installing monitoring wells.

           Mr. Pena questioned as to the acceptability of using
           vertical expansion permits across the State of Texas from a
           technical stand point.

           Mr. Dodley stated that in reference to the practice using
           vertically expansion permits overall all portions of the
           landfill is routine.  The state sees it and has approved it
           on a regular basis.  He has a list of 14 sites that state
           has provided and he has been involved in three sites.  The
           state has had some discussions on its policy with some of
           policy committees, their actions thus far have been to
           continue to approve expansions.  He sees no conflict with
           state policy in pursing this kind of expansion that is done
           every time from a geology stand point.  He said there are
           technics that have been used, he does not anticipate the
           needing of any of those in this site, but in the event there
           is something that might need to be done, there are available
           technics.

           Joe Guerra, Public Works Director, stated they contracted
           with Dr. Farias' Group and they do not know how much all the
           information received is going to cost the City, except
           $20.00 per ton.  If you figure out the tonnage that is taken
           into the landfill (city's own trash/solid waste), at $20 per
           ton it will cost $3.8 million per year, this are the last
           figures, by the year 2001 if they do acquire a landfill and
           permit, it could be more than $4 million a year.  We will
           close the landfill, we'll be out of the landfill business
           totally.  We take in $2.3 million of revenues right now
           which help run the landfill, what is going to happen is that
           the city owned trash, (city the is going to pay for its own
           trash) which is free right now.  We are doing the landfill
           for this amount of money, and the City of Laredo is not
           paying a penny to the landfill on its own trash, but if you
           close the landfill and go out and contract with Dr. Farias
           or someone else it will cost you $4 million for the next 20
           years which will be about $80-$100 million in 20 years plus
           an option of 20 more.  What this means is that we are going
           to loose revenues, they will have to raise taxes (about 7
           1/2 cents) to pay for the $4 million they are paying someone
           else or increase residence fees $8 per resident, then raise
           the sewer rate $2.25 to make up for the sludge of the sewer
           department which is going free right now to the landfill.

           Mayor Flores questioned why are we going to spend the money
           to buy landfill land in another area, in case we don't get
           the permit, why buy it now.

           Mr. Guerra explained that three years ago he put capital
           improvement projects ($1 million to acquire land) because
           they knew they were getting closer to the end.  In case we
           do get the vertical expansion permit, we are going to be in
           business the next 15-20 years.  We now have $1 million
           earmarked to acquire land, get a permit for less than a
           million and it will be inactive.  That is money in the bank,
           and a landfill with a permit for the future of the city.
           He said we have to look 20 years down the road.

           Cm. Casso stated he is not against it, he is just looking at
           the timeline, is it better that we wait 9 months after we
           get the permit approval before we go in there and invest
           money ($1 million for 100 acres) and besides 100 acres is
           ridiculous and is unacceptable.

           In reference to the issue of contracting, he does not think
           that this council has yet made a decision at all to
           privatize the landfill based on the information given.  The
           other CES would have to defuit the figures provided and it
           has to be done intellectually before they even begin to
           contract with these individuals.  What was discussed at one
           time was the letter of intent, and it was his understanding
           that it would marry us to these individuals and we don't
           want to lose our sobriety.  We want to be able to retain our
           freedom and our control, so we don't want to be married to
           anybody.  He said they other thing that comes into light is
           the letter that Southern Sanitation wrote on March 30th
           which reads as follows:

           "Dear Madam Mayor:

           After listening to City Council's reaction to the
           presentation made by the company proposing the regional
           landfill Southern Sanitation is concerned that its landfill
           options may be in jeopardy.  Southern Sanitation has several
           years of exploring landfill possibilities and has not gone
           beyond the planning stages because it was the opinion of all
           involved that it would not be wise for the city to lose
           control of its disposal site.  In view of these facts, we
           are requesting that if the city is to give the regional
           landfill a non-binding letter of intent, that it consider
           giving Southern Sanitation the same, our letter would not be
           used for any financing requirements nor would it obligate
           the city in any way, but merely be used as a negotiating
           tool."

           Cm. Casso expressed that he does not like the end part, that
           last words bother him "used as a negotiating tool" because
           why should we sign a letter so that they can use it as a
           negotiating tool with us, we are tieing our own hands, and
           it makes no sense whatsoever.  If you are going to negotiate
           you are not goto gto give the other side any type of
           advantage with a letter that we are going to sign, it makes
           no sense whatsoever.  He said it is unwise to sign any
           document and it best to continue as we are until the other
           side proves to us that it is a lot cheaper to privatize, and
           he has not seen that yet in the last six months that they
           have been patching this issue back and forth.

           Dr. Farias stated council was told that he was looking for a
           contract, the letter is not a contract.  There were remarks
           from the Public Works Director, he must have some vision
           into the future, where he is already anticipating something
           that has not even been negotiating.  He expressed that all
           he came to the council for, was for them to consider an
           alternative.  He said it is in the best interest of the city
           to explore alternatives.  He said basically what they wanted
           was a document that serves the city's purpose and that would
           serve their purpose.  He asked that they reject the city
           attorney's letter, and that they let them work together in
           something that will serve the project.

           Cm. Bruni stated that it would not hurt for this council to
           instruct staff to explore alternatives, if it is not going
           to cost the ratepayer/taxpayer any money.  He quoted, "I
           think it would be who of this council, for staff to seat
           down with Mr. Farias' attorney, Mr. Farias and explore
           alternatives."  It does not mean we are going to do
           anything, but he is just asking that we seat down with him
           and as public servants he has the right to request that.  If
           we don't get our vertical permit and its going to take us
           four years to get the other land and the permit from TNRCC,
           it doesn't hurt to have an alternative.

           Cm. Casso agrees with Cm. Bruni in reference to exploring
           other alternatives, however they have to explore the
           methods, however he feels the letter of intent is
           unnecessary.  It is not necessary to sign anything, the only
           thing they need to do is instruct staff to seat down and
           discuss the issue to find out if "this is true or not, is it
           cheaper to go this way or is it better to retain control."

           Mr. Jaime Flores, City Attorney, stated he spoke with Mr.
           Farias last week as well as with Mr. Parker his partner in
           Boston, and discussed the letter of intent as proposed.  His
           partner in Boston asked, "how can we work on that letter in
           order to be something that perhaps council could work with."
           He told him that they were working with that, and that he
           would write a letter and he explained specifically that
           letter would say very clearly, that this is not a letter of
           intent, and that is what the letter says, but that in no way
           they meant to say that we are not working.  He told him he
           would fax the letter to him, as soon as council saw it, and
           the City Manager so instructed.

           Motion to instruct staff to seat down with the developer,
           Mr. Farias and his attorney to discuss alternatives and iron
           it out and come back with the real numbers.

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

   IX. COMMUNICATIONS

      a. Recognizing City of Laredo employees for their participation
         and contribution to the 1997-1998 United Way of Laredo
         Campaign.

      b. Cm. Guerra spoke of a concern he had on a traffic issue.  He
         said several months back he spoke of a possible installation
         of a traffic control device at the intersection of Encino and
         Mann Road and wants a brief update on this issue.

         Roberto Murillo, Traffic Engineer, stated they finished the
         study at both locations, and the other street west of it.
         They will have a report ready in a week or so.  They are
         trying to combine two or three different studies and provide
         all of them to council in a week or two.

      c. Cw. Moreno stated she had a call from residents in McClelland
         and Lyon about traffic accidents occurring and she wants staff
         to check and see if there are any obstructions that are
         blocking the view from the stop signs.  She wants a report as
         to how many accidents have occurred at that intersection.

         Mr. Murillo replied that they have not received any calls, but
         that they will look in it.

      d. Cm. Casso wanted to know how council feels about a document
         they received under memorandums by the City Manager.  It has
         to do with the visit that the Utilities Department wants to
         make regarding the privatization of the water department.  He
         feels the trip should be postponed, because there are members
         of City Council that want to take that trip that will no
         longer be in the City Council in three weeks.  He thinks it
         will be a waste of taxpayers money. If people are making that
         trip they have to come back and report and share the
         information with council and follow it through.  He feels the
         trip should be postponed, there is a trip to Puerto Rico, New
         Orleans, Oklahoma City and Indianapolis and he feels that it
         should be postponed until the new council gets elected, then
         they can see what they want to do.

   X.  CITY COUNCIL DISCUSSION AND PRESENTATION

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

A.   Requests by Councilmember Louis H. Bruni

       1. Discussion and possible action on several citizen complaints
          in the Eastwood Estates Subdivision: El Metro service, Speed
          Hump Pilot Project, Initiation of the POPS program (Property
          Oriented Police Services), and traffic signs at 3212 Lyon.

          Cm. Bruni said what they are asking is as follows:

          On metro service, what they would like there is a bus bench
          and a shelter on the street that intersects with Loop 20.
 
     Cm. Bruni asked if that can be done it will be greatly
     appreciated by the residents of the Eastwood Estates.

     They would also like to be included in the Speed Hump
     Pilot Program at Lyon Street, maybe the 3000 and 3100 of
     Lyon.

     Cm. Bruni wants a staff report as to where it would be
     appropriate for that particular speed hump.

     In reference to the initiation of the POPS program at
     Heritage Park.  Cm. Bruni stated the program was a great
     success and thanked the Chief of Police and the Police
     Department because they did a great job and should be
     recognized for that.  He said the news media shared a
     lot of information regarding this program that many
     people have called him that they want the same program
     in their subdivisions.

     Gilbert Segovia, Transit Director, questioned the first
     issue, he asked if he is speaking of the intersection on
     Spur 400 and if this is the area, he will take a look at
     that area and report back to council.

     Cm. Bruni stated that the last issue is a traffic signal
     at the end of the 3200 block of Lyon.  The residents are
     asking for a sign there that states approaching dead
     end, caution or a sign that states something similar.
     He wants a memorandum in reference to this.
 
       2. Status report on the TRAK System (Technology to Recover
          Abducted Kids) with possible action.

          Fructoso San Miguel of the Police Department explained that
          TRAK System is a computer system that branches out agencies
          and organizations and quickly disseminates information with
          clear color photos that have been used with FBI and Secret
          Service, with Zapata and Houston research purposes.  He said
          that fortunately they have not had any abducted children in
          Laredo and it is fortunate that the TRAK System has not been
          used for that purpose.

       3. Status report on the DTN Weather Modification System.

          Cm. Bruni stated that the correct wording for this system is
          DTN Weather Monitoring System.

          Assistant Fire Chief Leopoldo Roman stated they have a
          brochure that they  got from police about the DTN Weather
          Center.  They found out that KLDO TV station has the system
          and in talking to them they found out that they can get any
          information they want at any time from them.

          Cm. Bruni stated that the idea he had was for them to
          expedite the project and spend the money to get it on line.
          That it be at the fire station so they can monitor it.
          Second, that when we get a severe weather signal coming in
          that it can be put in our Public Access Channel (PAC) so that
          people watching TV can see this also.  He added that council
          approved this expenditure and now you are saying that KLDO
          has it, also other places have it, which is fine, but it is
          limited to who has access.   His idea was that 9-1-1 have it
          so they can see the weather systems signals coming in and see
          when something severe is coming to be put in the Public
          Access Channel to inform the public and make them aware.

          Mr. Pena stated he will look into the issue and report to
          council.

       4. Discussion and possible action on the illegal parking
          occurring at the 2200 Block of Elm.

          Luis Landin, Bridge and Traffic Director, stated they cannot
          prohibit vehicles from parking on a public right-of-way,
          however the only thing they can do in the 2200 and 2300 Block
          of Elm is put "Prohibit Parking" in those two blocks and
          notify the owners of those residences that they have to use
          their driveways, because if they put prohibited parking in
          that area nobody can park there and most of the parked cars
          are from students.

          Motion that staff approach the resident owners and if there
          is opposition that they report to City Council through a
          memorandum and if there is no opposition, that they go ahead
          and put the prohibited parking signs.

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

B.  Requests by Councilmember Alfonso Casso, Jr.

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

          Cm. Casso provided the following names for possible
          appointments to the Tree Board USA:

          Michael Yoeder, Richard Gonzalez, Steve Coussoulis, Richard
          Gentry, Danita Benavides, Linda Cantu, Dr. Jim Earhart, Anne
          Bearden, Jon Radenaum, Manuel Jordan, Blas Martinez, Jr.,
          Edie Landeck, Elizabeth Gil, and Ana Poole.

          Motion to approve the creation of the Tree Board USA with
          authorization to name those persons named by Cm. Casso.

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

       2. Discussion and possible action regarding the Laredo Emergency
          Planning Committee.

          Cm. Casso stated someone who works at the hospital mentioned
          to him that the committee has not met in sometime.  He wants
          to know what the city is doing in this regard, if they are
          meeting, and if they have some type of emergency plan in case
          something happens.

          Julio Ramon, of the Fire Department, stated they have a EOC
          Room (Emergency Operations Center), the Fire Chief is the
          head of the operations, there are local citizens throughout
          the city that are members of that board.  He said he does not
          know when they meet or how, but whenever an emergency
          happens, the EOC is opened, they have radios and telephones
          for PD, DPS, and all the city departments and they operate
          out of that room.

          Cm. Casso wants to know when they are going to meet because
          they are supposed to have some type of a continuance plan,
          because there is a law on this where they are supposed to
          meet and have continuancy plan.

          Mr. Ramon stated he will find out and will provide him a date
          as to when the meeting will be held.

       3. Discussion and possible action regarding the creation of a
          water park overlooking the Rio Grande with possible financing
          with proposed sales tax.

          Cm. Casso wants to remind council that it will be a hard sale
          with the public and he feels it is not going to pass.  He
          said he does not know if they have been working on proposed
          projects or if they are not ready to present them to council,
          but this is one issue that they might want to look at.  The
          reason he put this issue on the agenda is because they need
          to look at some type of a master plan of what the city is
          going to do that will address three issue that he sees of
          importance such as environment, job creation, and tourist
          attraction.  What is it that the city wants to do.  His idea
          is perhaps if they can have convention center and next to it
          a lot of parks with baseball fields, soccer fields and
          probably a water park.  He thinks that they should consider
          doing something for the children in the community and a water
          park would be a good idea.  Based on the proposal presented
          last time, he feels this will not pass, the jet service will
          not pass alone.  He would like to see something grand such as
          a 200 acre park overlooking the river with baseball fields,
          soccer fields, water parks, and maybe a convention center.

          Cm. Perez stated some people came down from a water park who
          were looking for information or analysis and who had interest
          on this.  He asked the City Manager to follow up what these
          people were looking for and to bring back a report.

          Mr. Pena reported that there was a group and the person that
          was with them told him that they were not interested in
          building it themselves, but would lend their expertise to
          help in the planning and marketing, but they were not           interested in doing it themselves.  He does not believe that
          between now and August they can develop a specific project to
          deal with the water park because it is not enough time to
          negotiate a contract with that kind of an investment.

C.  Requests by Councilmember Eliseo Valdez Jr.

       1. Discussion and possible action on the city-wide graffiti
          problem.

          Cm. Valdez stated this is a national problem.  He received a
          call from a new business setting up in town who were
          discouraged about what they have seen.  The were trying to
          set up a business and were already experiencing graffiti.
          He said kids were defacing private and public property and he
          feels they need to take a tougher stance.  He expressed that
          Code Enforcement and the Police Department are doing a good
          job trying to get rid of the graffiti, but we need to take
          tougher stance, maybe with stiffer fines, or banning the sale
          of spray paints to minors.  They need to come up with a plan
          and do something.  He suggested maybe putting PSA reports and
          getting the public involved in reporting these things as they
          are happening.

          Note:  At this time he discussed his next item.

          Jaime Flores, City Attorney, stated we do have the
          ordinances and state law on the books that we can enforce
          criminal mischief, reckless damage, criminal trespass and
          nuisance ordinance, curfew ordinance and different laws that
          lead to prosecution and stiffer fines.  In regards to talking
          about taking action against parents, there is a provision in
          regards to curfew that lead back to parents.  On criminal
          mischief depending on the amount of damage caused, there is
          Class A, B, or C misdemeanors, as well as trespass so there
          are very good laws in the books that can be enforced, it is a
          matter of addressing the matter.

       2. Discussion and possible action on illegal dumping.

          Note:  This item was tied with item C.1.

          Cm. Valdez spoke of vacant lots in the city where there is
          illegal dumping.  He stated there are people out there that
          see these things going on and asked that we encourage them to
          get involved and report these things.  He said that these
          reports need to be followed up and we need to do something
          about it.  We need to adopt ordinances and stiffer fines.

D.  Requests by Councilmember Joe A. Guerra

       1. Presentation by Rene Cervantes on health care benefit abuse
          by:
          a) Hospitals
          b) Home Health Services
          c) PHP (Partial Hospital Programs)
          d) Private pay and nursing home facilities

          Mr. Cervantes stated he had experienced a situation with his
          mother who was rendered health services and billed for
          $60,000.00 in four months and thinks this is a crime.  They
          we not utilizing the services to give her the proper skilled
          nursing, they were promising her things that did not pertain
          to health care.  He asked that City Council start a
          committee going, because we need to have a voice for our
          senior citizens.  It is important that senior citizens who
          worked all their lives, who paid their taxes and dues, now
          have what they deserve, good health care when they are sick.

          Cw. Montalvo stated the City doesn't have anything to do with
          medicare/medicaid, with home health or with any other agency.

          Mr. Cervantes stated she is right, but the thing is the abuse
          of senior citizens and they need a voice and that is why they
          elected the City Council and the Mayor for someone to enforce
          the laws.  He suggested that City Council form a committee to
          police all the senior citizens that need the help.  He wants
          someone to take care of them either by passing the complaints
          to Austin and Dallas to the people who are paying for the
          services that are not rendered.

          Mayor Flores stated that this issue will be taken under
          advisement and will follow it up with him.

       2. Presentation by Esequiel Maldonado regarding City of Laredo
          master plumbers.

          Cm. Guerra tabled the item, due to Mr. Maldonado being
          absent.

       3. Discussion and possible action on the proposed South Texas
          Regional Waste Management Project/Facility and a declaration
          of continued interest for the possible participation by the
          City of Laredo.

          Mr. Hector Farias on behalf of the Texas Mexican Border
          International Trade Association addressed the issue and
          stated it has to do with a meeting where the Mayor and
          Representatives were before the Land Surface Transportation
          Board met in Washington having to do with the Union Pacific
          Embargo.  He said they had representation at this meeting and
          the bottom line is that they wanted three things to happen
          which did not happen.
          (1) That the embargo be ended immediately.
          (2) That the rail lines be extended to all Union Pacific
              competitors.
          (3) That the Southern Pacific/Union Pacific merger be done
              away with.

          He said that the Land Surface Transportation Board is not
          going to do anything.  It is a very political issue and he
          begged City Council to get the private/public sector together
          to press our representatives at the highest levels.

          At this time Mayor Flores told Mr. Farias that they are
          continuing to talk to them in that respect, and asked that he
          address this item presented.

          In reference to the issue, he explained what has transpired
          with a letter he had submitted.  He said that he would like
          to proceed with this letter.  He explained that on the last
          meeting the item was posted, shortly after that several
          Councilmen instructed the City Attorney to meet with them and
          their attorneys to find a Declaration of Intent or a letter
          that would serve both purposes and that did not happen.  It
          was their understanding that they would have the opportunity
          to work with the City Attorney to modify the Declaration of
          Intent presented at the meeting, so that the wording and the
          resulting document would address the concerns and reflect the
          wishes of the City Council and met the needs of the project.
          Despite their efforts to establish dialogue with the City
          Attorney on this matter they have been exclurŞhłhatever
             ess ha  occurred Ş h his ans an the City MaÓager's
ď h       ­ ff c.  Th■ir only■informatimatis hromfao╣rad lettee
t          provire( do ttm Éymabmeabeembertoe City Council.  He said
aid
       that letter was nx╣ tot tvehbve  ee■spnte ■e  ooc■lťc■lhout
   
   ╣  the rÉi└put.put.ey s─yhhisph╣  đ └fď et on  onbe affsoafft
  @­      o sco sce the pro║et. ct.  He stated council has the letter
          drafted by the City Attorney, and stated he has exceptions to
          statements in the letter which he read and pointed that
          ironically, the detailed information that the letter claims
          is lacking and really concerns the uncertainties associated
          with the current and future operation of the city's landfill,
          and with its environmental impacts, and economic
          consequences for example the ground monitoring well has yet
          to be sampled and to determine the level of contamination
          from the landfill.  These results will affect TNRCC's
          evaluation of the city's application to expand the landfill.
          This city has no application before TNRCC at this time, nor
          any groundwater monitoring.  The question is what is the
          timeline that they can walk the City Council for the
          application for the vertical expansion and what is being done
          about the groundwater monitoring.  Now if there is
          contamination found, where does the city go from there?

          He also addressed page 2 of the draft letter, where it states
          "it is not a declaration of intent to enter into
          negotiations, it is only an expression of continued interest
          in your proposal".  He continued quoting the letter and said
          that somehow the project and the city needs to establish a
          similar level of seriousness regarding the city's position in
          the project.  The aggressive offered made by the project
          cannot stay on the table indefinitely and the project will
          not continue to invest its money and effort to help Laredo if
          the City has decided on a business as usual approach in which
          it proceeds despite the risks to depend upon expansion of its
          current land facility to meet its ever growing needs for
          wastewater capacity.

          He concluded by saying that the draft letter provided to them
          appears to be an implicit rejection of their proposal to the
          City of Laredo and if that is the case they are baffled by
          their apparent lack of appreciation for the merits of the
          project and for the benefits it will accrue to the city as a
          partner and not just a customer of this project.  He added if
          this is not the case, then hopefully the City Council will
          reject the draft letter and initiate a collaborate process
          where the city and the project work together to produce a
          cleaner and simple statement of intent.

          Cm. Guerra stated his three biggest concerns are the permit
          process for the vertical expansion of the landfill, the
          contamination issue and mostly to have an alternative site in
          case they run out of space and/or if they do not get the
          permit for the vertical expansion.  He wants to hear from the
          engineering firm of Rust Engineering on this issue.

          Motion to move item #48 at this time in order to continue
          with the presentation.

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

       4. Status report on the construction of the sidewalks leading to
          Clark Elementary School, with possible action.

          Cm. Guerra stated he had received an update from staff on the
          issue.

XI.  PUBLIC HEARINGS

      50. Public hearing providing interested persons an opportunity to
          comment on the proposed amendment of the City of Laredo's
          1995 Consolidated Plan to reflect changes in the strategic
          portion of the Plan pertaining to housing and non-housing
          initiatives and funding portions for the period October 1,
          1995 through September 30, 1999.

          Motion to open the public hearing.

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

          Cindy Collazo, Community Development Director, made the
          presentation before City Council.

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

      51. Public hearing amending Chapter 30, Taxation, Article II,
          Hotel Occupancy Tax, Section 30-17; levy; exceptions,
          amending subsections (b) and (c), and adding subsections (d)
          and (e) to the Code of Ordinances of the City of Laredo.

                      INTRODUCTION OF AN ORDINANCE
          Amending Chapter 30, Taxation, Article II, Hotel Occupancy
          Tax, Section 30-17; levy; exceptions, amending subsections
          (b) and (c), and adding subsections (d) and (e) to the Code
          of Ordinances of the City of Laredo.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

      52. Public hearing amending the City of Laredo FY 1997-1998
          Annual Budget in the amount of $90,000.00, for a donation by
          the Friends of the Library, Laredo, Texas, providing for
          effective date.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo FY 1997-1998 Annual Budget in the
          amount of $90,000.00, for a donation by the Friends of the
          Library, Laredo, Texas, providing for effective date.

          Motion to open the public hearing.

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

          Ordinance Introduction: City Council

      53. Public hearing establishing a fifteen (15% penalty on
          delinquent Miscellaneous Receivables Accounts that are past
          due for more than 180 days in order to defray the cost of
          collection; and providing for the referral of such past due
          accounts to the contracted delinquent tax attorney; and
          providing for the notification, and an effective date.

                      INTRODUCTION OF AN ORDINANCE
          Establishing a fifteen percent (15%) penalty on delinquent
          Miscellaneous Receivables Accounts that are past due for more
          than 180 days in order to defray the cost of collection; and
          providing for the referral of such past due accounts to the
          contracted delinquent tax attorney; and providing for the
          notification, and an effective date.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to table.

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

      54. Public hearing amending the City of Laredo's 1998 budget in
          the amount of $356,086.00, for funding of operating expenses
          and personnel for an organized Multi-Agency Financial
          Disruption Task Force for the period of January 1, 1998
          through December 31, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo's 1998 budget in the amount of
          $356,086.00, for funding of operating expenses and personnel
          for an organized Multi-Agency Financial Disruption Task Force
          for the period of January 1, 1998 through December 31, 1998.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce.

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

          Ordinance Introduction: Cm. Bruni

      55. Public hearing amending the Zoning Ordinance (Map) of the
          City of Laredo by rezoning Lots 1 and 2, Block 1537, Eastern
          Division, located on the northeast corner of the intersection
          of Ash St., and Texas Ave., from M-1 (Light Manufacturing
          District) to R-1 (Single Family Residential District.  The
          Planning and Zoning Commission recommends approval of this
          zone change.

                      INTRODUCTION OF AN ORDINANCE
          Amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lots 1 and 2, Block 1537, Eastern Division, located
          on the northeast corner of the intersection of Ash St., and
          Texas Ave., from M-1 (Light Manufacturing District) to R-1
          (Single Family Residential District).

          Motion to open the public hearing.

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

          Motion to close the public hearing and introduce.

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

          Ordinance Introduction: Cm. Bruni

      56. Public hearing amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $5,000.00, and authorizing the City
          Manager to enter into an agreement with the Office of the
          Comptroller for the reimbursement of $5,000.00, for funding a
          Tobacco Compliance program. This money will be used to pay
          overtime wages for Laredo Police Crime Prevention 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.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo's 1997-1998 Annual Budget in the
          amount of $5,000.00, and authorizing the City Manager to
          enter into an agreement with the Office of the Comptroller
          for the reimbursement of $5,000.00, for funding a Tobacco
          Compliance program.  This money will be used to pay overtime
          wages for Laredo Police Crime Prevention 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 open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce.

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

          Ordinance Introduction: City Council

    57.  Public hearing approving an amendment to the contract with the
         Texas Department of Health and Budget revision for the
         Tuberculosis Prevention Control Projects of the City of Laredo
         Health Department to reflect two budgets: the TB Federal
         Projects for the period beginning January 1, 1998, through
         December 31, 1998, in the amount of $99,950.00, and the "Los
         Dos Laredos" TB Binational Project for the period beginning
         January 1, 1998, through June 30, 1998, in the amount of
         $46,438.00.

                      INTRODUCTION OF AN ORDINANCE
          Approving an amendment to the contract with the Texas
          Department of Health and Budget revision for the Tuberculosis
          Prevention Control Projects of the City of Laredo Health
          Department to reflect two budgets: the TB Federal Projects
          for the period beginning January 1, 1998, through December
          31, 1998, in the amount of $99,950.00, and the "Los Dos
          Laredos" TB Binational Project for the period beginning
          January 1, 1998, through June 30, 1998, in the amount of
          $46,438.00.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

 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 : Cw. Moreno
       Second: Cm. Valdez
       For:  7                          Against:  0         Abstain:  0

      58. Amending Ordinance 95-OT-3to:h
o:

          a. Delete the bus bench advertising rates included in the
             introductory section and Section 1, and
          b. Amend the advertising policy to add prohibitions
             advertising for tobacco and alcoholic beverages and
             sexually oriented businesses.

          Gilbert Segovia, Transit Director, made the presentation.

          Motion to table.

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

      59. Authorization to solicit bids for the purchase of the
          following items:

          a. replacement support vehicles (3 - utility vehicles,
             1 - truck, 1 - midsize sedan); bids will be accepted on
             conventional, bi-fuel, and dedicated CNG engines.
          b. heavy duty brake drum and disk lathe

          Motion to approve.

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

      60. Motion to reject all proposals received in response to a
          solicitation for used transit buses. The proposals received
          were for 1981 and 1982 model buses with refurbished bodies.
          However, the drive trains of these buses have not been
          refurbished and are in unknown condition. Hence, in addition
          to the minimum $175,000.00 cost, additional investment may be
          necessary to replace or rebuild the engines and transmissions
          before placing them into service. No funds were provided for
          this purchase in the current budget.

          Motion to reject all proposals.

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

      61. Motion to authorize the City Manager to solicit proposals for
          bus bench and shelter/kiosk advertising sales and service.
          This solicitation seeks a private sector contractor to
          construct, place and maintain bus stop benches and shelters
          in exchange for the right to sell advertising and provide a
          portion of the advertising revenues to the City.

          William Cane, representing El Metro drivers and maintenance,
          presented financial figures on revenues that the benches
          could possibly generate.  His understanding from some of the
          people that do this type of work or have expertise in this is
          that they have been shut down sort of speak, or they have
          been set aside, and he understands that when they bought the
          benches from the other people who had the benches previously
          they paid approximately $300 a piece.  He thinks these
          benches could be done in-house much cheaper than that.  He
          thinks this thing is underutilized.  They also have a
          contract with El Metro and if they are going to move from one
          place to another it has to be negotiated.

          Motion to table.

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

      62. Public hearing to defer indefinitely the implementation of
          proposed Loop 20 Shuttle and South Laredo Circulator and in
          lieu thereof, add one bus to the Santa Rita Route from 8:00
          A.M. to 12:00 P.M.  and from 3:00 P.M. to 7:00 P.M. Monday to

          Saturday to provide additional capacity and service
          frequency.

                                 MOTION
          Public hearing to defer indefinitely the implementation of
          proposed Loop 20 Shuttle and South Laredo Circulator and in
          lieu thereof, add one bus to the Santa Rita Route from 8:00
          A.M. to 12:00 P.M. and from 3:00 P.M. to 7:00 P.M. Monday to
          Saturday to provide additional capacity and service
          frequency.

          Motion to open to the public hearing.

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

          William Cane, representing El Metro drivers and maintenance,
          made it clear that he had no input on the Santa Rita route
          but that this is not the ideal solution.  route is
          exceptionally long and a lot of bus stops along Zapata Hwy.
          only 3 stops and people get confused  It doesn't help the
          public out it is not the ideal solution my recommendation is
          the same as December of 1997 with two buses serving one east
          area and the other the west area.

          Motion to close the public hearing and approve.

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

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

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


                          SUPPLEMENTAL AGENDA

VIII.  CITY MANAGER'S REPORT

       1. Request for Executive Session pursuant to Texas Government
          Code Section 551.071 (1) (a) (b), to discuss pending
          litigation and settlement offer in cause No. 97 CVQ 00308-C3
          Captain J.L. Martinez vs. The City of Laredo, in County Court
          at Law No. 2, Webb County, Texas, 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) (b), to discuss
          pending litigation and settlement offer in cause No. 97 CVQ
          00308-C3 Captain J.L. Martinez vs. The City of Laredo, in
          County Court at Law No. 2, Webb County, Texas.

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

          After Executive Session Mayor Flores announced that no formal
          action was taken in executive session.

XIII.  ADJOURNMENT

          Motion to adjourn.

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

          Adjournment Time: 10:10  P.M.

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 46 ARE
TRUE, COMPLETE, AND CORRECT PROCEEDING OF THE CITY COUNCIL MEETING HELD
ON THE 06TH DAY OF APRIL, 1998.  A CERTIFIED COPY IS ON FILE AT THE
CITY SECRETARY'S OFFICE.

                                  ________________________
                                   GUSTAVO GUEVARA, JR.
                                   CITY SECRETARY