CITY OF LAREDO
                          CITY COUNCIL MEETING

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




       M-98-R-18                MINUTES           APRIL 27, 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
       CECILIA MAY MORENO,          "     , DISTRICT IV
       ELISEO VALDEZ, JR.,          "     , DISTRICT V
       JOE A. GUERRA,               "     , DISTRICT VI
       MARIO G. ALVARADO,           "     , DISTRICT VII
       CONSUELO "CHELO" MONTALVO,   "     , DISTRICT VIII
       GUSTAVO GUEVARA, JR., CITY SECRETARY
       FLORENCIO PENA, III,  CITY MANAGER
       JERRY BRUCE CAIN,     ASST. CITY ATTORNEY

       ABSENCES:

       Motion to excuse the absence of Cm. Casso.

       Moved : Cm. Bruni
       Second: Cw. Montalvo
       For:  6                     Against:  0         Abstain:  0
       Cm. Perez was not present at this time, he arrived at 5:40 p.m.

  IV.  FINAL READINGS

       Motion to waive the final reading of ordinances #98-O-060,
       #98-O-110, #98-O-111, #98-O-112, #98-O-113, #98-O-114, and
       #98-O-115.

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

       2. 98-O-060  Ordinance creating and adopting Article XI of
                    Chapter 19, motor vehicles and traffic, entitled
                    "Truck Traffic" to include new sections 19-400
                    through 19-530, with Section 19-512 reserved,
                    thereby organizing current sections and the
                    language of the code of ordinances as they pertain
                    to truck traffic and adding new truck provisions;
                    including: truck routes and sign posting,
                    prohibition of nighttime residential departures
                    from truck route, size and weight restrictions,
                    oversize and overweight permits to be had at a
                    central permitting office, increase in fee for
                    overweight permits, oversize vehicle escort service
                    license, truck parking in residential areas, near
                    schools and in central business district, trailer
                    parking on streets, adoption of provisions of the
                    Federal Motor Carrier Safety Regulations, minimum
                    truck parking fines, delinquent truck lists;
                    providing for regulations and penalties; providing
                    for severability; and providing for an effective
                    date and publication.   (City Council)

                    Motion to approve Ordinance #98-O-060.

                    Moved : Cw. Moreno
                    Second: Cm. Alvarado
                    For:  6             Against:  0         Abstain:  0
                    Cm. Casso & Cm. Perez were not present.

       3. 98-O-110  Authorizing the City Manager to execute a lease
                    with Bowden Medical, Incorporated for approximately
                    3,588 square feet constituting Buildings #1432,
                    #1438 and #1439. Building #1432 is located at 1803
                    Pappas Street, and Buildings #1438 and #1439 are
                    located at 1719 Pappas Street.
                    a. Lease term is for one (1) year commencing May 1,
                       1998 and ending April 30, 1999.
                    b. Monthly rent shall be $674.10.  Previous monthly
                       rent was $630.00.
                    Premises are used to store medical equipment and
                    supplies.   (City Council)

                    Motion to approve Ordinance #98-O-110.

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

       4. 98-O-111  Authorizing the City Manager to execute a lease
                    with Texas/Illinois Cellular Limited Partnership,
                    by it's general partner Southwestern Bell Wireless,
                    Inc., (sub-tenant) to co-located on the existing
                    self support cellular tower constructed under that
                    certain ground lease for cellular tower dated
                    September 1, 1996 between the City of Laredo
                    (Landlord) and Lar-Tex Cellular Telephone Company
                    (Tenant) reference 96-0-132, located on a tract of
                    land out of and a part of Lots 3 and 4, Block 552,
                    of the Eastern Division of the City of Laredo.  The
                    sub-tenant desires to attach and construct on such
                    premises cellular phone antennas, and coaxial
                    cables to the existing tower and install and
                    equipment building.
                    1. Term of the lease is 10 years with an option for
                       2 successive 5 year renewals.
                    2. Annual rent will be $2,500.00, to be adjusted on
                       each anniversary dated according to the changes
                       in the Consumer Price Index.  (City Council)

                    Motion to approve Ordinance #98-O-111.

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

       5. 98-O-112  Closing as a public easement PARCEL A, consisting
                    of 175.09 square feet of land, more or less; and
                    PARCEL B, consisting of 254.65 square feet of land,
                    more or less; both parcels being out of and part of
                    the 400 Block of Price Street between Springfield
                    and Maryland Avenues. Said parcels of land being
                    encroached upon by the improvements of the abutting
                    properties, being Lots 11 and 12, Block 337,
                    Eastern Division, City of Laredo, Webb County,
                    Texas; and authorizing the sale of the "Surface
                    Only" of said parcels at the combined fair market
                    value of $1,289.22, and further authorizing the
                    City Manager to execute all necessary documents to
                    effectively convey fee simple title to Cristina
                    Cedillo and Librada Ramirez de Escobedo,
                    respectively for said parcels being more
                    particularly described by metes and bounds and
                    providing for an effective date.  (City Council)

                    Motion to approve Ordinance #98-O-112.

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

       6. 98-O-113  Ordinance amending Chapter 30, Taxation, Article
                    II, Hotel Occupancy Tax, Section 30-17; Levy;
                    Exceptions, adding Subsections b (1,2,3,4, and 5),
                    amending Subsection (c), and adding Subsections
                    (d), (1,2,3, and 4), (e), (f), f(1), and (g) to the
                    Code of Ordinances.
                    (City Council)

                    Motion to approve Ordinance #98-O-113.

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

       7. 98-O-114  Amending the City of Laredo 1997-1998 (LEOSE)
                    Account Fund Budget in the amount of $28,307.67.
                    Law Enforcement Officers Standards and Education
                    (LEOSE) Account for continuing education for Police
                    Officers for the period of October 1, 1997 through
                    September 30, 1998.  (City Council)

                    Motion to approve Ordinance #98-O-114.

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

       8. 98-O-115  Amending the contract with the Texas Department of
                    Health and budget in the amount of $285,938.00 for
                    the HIV/STD Ryan White Care Consortium Project of
                    the City of Laredo Health Department for the period
                    beginning April 1, 1998, through March 31, 1999.
                    (City Council)

                    Motion to approve Ordinance #98-O-115

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


  VI.  RESOLUTIONS

       9. 98-R-026   Amending the submission of a grant application to
                     the Office of the Governor, Criminal Justice
                     Division in the amount $78,172.00, with the City
                     designating $36,996.00, in matching funds for a
                     total of $115,618.00, for funding a Domestic
                     Violence Grant under the Violence Against Women
                     Act (VAWA) for the period of June 1, 1998 through
                     May 30, 1999.

                     Motion to approve Resolution #98-R-026.

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

      10. 98-R-061   Authorizing the Mayor Elizabeth G. Flores,
                     Metropolitan Planning Organization Chairman, to
                     submit an application for relief from local match
                     requirements to the Texas Department of
                     Transportation for the South Meadow Avenue Bridge
                     Project.

                     Motion to approve Resolution #98-R-061.

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

      11. 98-R-068   Confirming the appointment by the City Manager of
                     a member of the Fire Fighters' and Police
                     Officers' Civil Service Commission of the City of
                     Laredo.

                     Motion to approve Resolution #98-R-068, confirming
                     Raul P. Garcia, Jr. to serve as a member for the
                     term of three years from April 29, 1998 to April
                     28, 2001.

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

      12. 98-R-069   Supporting the Hamilton Housing Partners Limited,
                     in their efforts to renovate and convert the
                     Hamilton Hotel located at 815 Salinas, Laredo,
                     Texas into 165 residential rental units for
                     low/moderate income residents including commercial
                     office spaces located on the first floor of the
                     hotel in their application to the Texas Department
                     of Housing and Community Affairs for low income
                     housing tax credits in the amount estimated at
                     $9,328,500.00, for a total project cost of
                     $11,952,850.00.  The City of Laredo hereby commits
                     to make a $1,550,000.00 second lien mortgage loan
                     to Hamilton Housing Partners Limited, a Texas
                     Limited Partnership, subject to the approval of a
                     $1,550,000.00 Section 108 loan from the U.S.
                     Department of Housing and Urban Development to the
                     City of Laredo.  This loan is subject to the terms
                     and conditions hereby incorporated in this
                     Resolution.

                     Cindy Collazo, Community Development Director,
                     notified council that the $1.550,000. does not
                     contain the $150,000.00 for relocation costs.  She
                     was advised earlier by the developer that they
                     would like that incorporated, bringing the amount
                     to $1.7 million instead of $1.5 million in case
                     that additional costs would be needed.  They have
                     no figures now, but will get those figures by
                     tomorrow, so at this point they are asking that
                     council consider increasing that amount;therefore,
                     the amount of payments $148,000.00 instead of
                     $135,000.00.

                     Motion to amend the resolution to reflect $1.7
                     million instead of the $1.55 million.

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

                     Motion to approve Resolution #98-R-069.

                     Moved : Cw. Montalvo
                     Second: Cm. Bruni
                     For:  6            Against:  0         Abstain:  0
                     (Cm. Perez came in at this time 5:40 p.m.)

VII. MOTIONS

      13. Authorizing the issuance of a request for proposals for the
          Laredo Transit Planning Study, which will identify location,
          scope, and demand of future transit corridors.

          Motion to approve.

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

      14. Authorizing the issuance of a request for proposals to update
          the Metropolitan Transportation Plan, which covers a 20 year
          period and identifies facilities (including but not limited
          to major roadways, transit, and intermodal facilities) that
          should function as an integrated regional system, in
          conformance to State and Federal requirements.

          Motion to approve.

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

      15. Acceptance of the Jefferson Street Water Treatment Solids
          Handling Improvements Project with Lambda Construction
          Company, New Braunfels, Texas, as substantially complete;
          approval of partial retainage release in the amount of
          $64,925.00 which is 2.5% of the total work to-date, and
          approval to retain the balance until completion and final
          acceptance of the project.  Funding is available in the
          Waterworks Retainage Payable.

          Motion to approve.

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

      16. Award of a construction contract for the Street Improvements
          on the 2500 Block of South Malinche Avenue between Zacatecas
          - Chacota and Parking Lot Improvements for the Cigarroa Park
          and South Laredo Fire Station to the Sole Bidder, Ramex
          Construction Company, Inc., Houston, Texas; approval of
          change order no. 1, a decrease of $43,836.00, to delete the
          retaining walls to bring the construction cost within the
          project's budget for a net award of contract to Ramex
          Construction Company, Inc., Houston, Texas, in the amount of
          $137,413.10; and approval of said retaining walls to be
          constructed by the Department of Public Works. This is a cost
          sharing project with the Laredo National Bank contributing
          $97,460.00, and the City's share being $50,000.00, plus
          right-of-way dedication and engineering services. Funding is
          available in the 1998 Contractual Obligation Issue - Cigarroa
          Parking Lot Construction Project.

          Motion to approve.

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

VIII. CITY MANAGER'S REPORT

      17. Presentation and possible action on proposed mechanisms of a
          joint public/private partnership on improvements in Hilltop
          Subdivision, Phase II and authorizing the City Manager to
          sign onto the plat.

          Florencio Pena, City Manager, stated that this is a project
          that was approved by council as part of our 1990 Certificates
          of Obligation issue. This is a property located north of
          Del Mar Blvd. north of the Springfield Road which is to be
          extended by Whataburger.  It is a property that has been
          somewhat of a problem to the city in a sense that the
          property is not platted.

          Keith Selman, Planning Director, explained the cost
          contribution of the project by infrastructure development.

          He identified the share of the city, of G.G. Salinas, and the
          Hilltop property owners, and the totals.  He explained that
          water and sewer services are going to be contributed by G.G.
          Salinas initially and then they will be reimbursed through a
          reimbursement contract from the property owners for the
          extension of the water/sewer services which is an element
          they will need to bring back to council.  Another element
          would be the full construction, the bids, and the general
          process there are when they enter into a construction project
          of this nature.  He said the estimates are higher than what
          they actually have in revenue expected, in terms of city cost
          in Phase I, as they go into the bid process the numbers may
          not hold true and if they do hold true they may end up re-
          moving some of the improvements in there and adjusting
          the contract in some way.

          Mr. Pena stated that on the right-of-way acquisition, this
          project will require the city to contribute some right of
          way, which is land that is owned by the city and held in
          trust in the Utilities Fund.

          Motion to approve as presented by City Manager.

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

          Motion to move item 18 and 19 to the end of the meeting.

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

          Motion to waive the rules of order and move item A(2).

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

      18. Request for Executive Session pursuant to Texas Government
          Code Section 551.071 (1)(A) to discuss contemplated
          litigation regarding the Twin Peaks, L.L.C., sewer line
          reimbursement agreement, and return to open session for
          possible action thereon.

          Motion to go into Executive Session pursuant to Texas
          Government Code Section 551.071 (1)(A) to discuss
          contemplated litigation regarding the Twin Peaks, L.L.C.,
          sewer line reimbursement agreement.

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

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

          Motion to authorize City Manager to take proper legal action
          to collect sewer reimbursement fees.

          Moved : Cm. Guerra
          Second: Cw. Montalvo
          For:  6                       Against:  1         Abstain: 0

      19. Authorizing the City Manager to pay Twin Peaks, L.L.C.,
          $18,232 pursuant to a sewer reimbursement contract dated
          August 15, 1994.  The following individuals and their
          companies have connected to this line:

          Name                 Date            Amount Owed
          Excel Bank           10/13/97         $2,029.00
          Agustin Maldonado      4/2/96        $10,947.00
          Steve Musolino         1/7/98         $2,935.00
          Eva Mejia              2/8/96         $2,321.00

                                       Total   $18,232.00

          Motion to approve.

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

  IX. COMMUNICATIONS

      20. Recognition by the Mayor and City Council members of
          employees who retired from the City of Laredo with 20 years
          or more of service for the period October 1997 thru March
          1998:
          a. Mario E. Martinez (28 years)
             Sanitation Division,
             Public Works Department,
             November 30, 1997
          b. Felix Vasquez (27 years)
             Fleet Maintenance Division
             Public Works Department
             November 30, 1997
          c. Jose R. Esquivel (21 years)
             Fleet Maintenance Division
             Public Works Department
             February 28, 1998

          Mayor Flores recognized Mr. Vasquez and Mr. Esquivel for
          their hard work and years of service.

          Mr. Martinez was not present to receive plaque.

   X. CITY COUNCIL DISCUSSION AND PRESENTATION

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

A. Requests by Councilmember Jose R. Perez, Jr.

          1. Discussion and possible action regarding the extension of
             El Metro service to include Saturday and Sunday at the
             Loma Alta Subdivision on Highway 359.  Currently, this
             particular bus route runs from Monday through Friday.

             Gilbert Segovia, Transit Director, said that the
             additional cost to provide the same level of service on
             Sundays would be an annualize cost of $21,000 because this
             route did not operate at all.  On Saturday they can
             provide the service at no additional cost because they
             have some time built into the current schedule.

             Cm. Perez stated that at the Ad Hoc Committee Meeting they
             have been looking at several routes and they are trying to
             find or establish a standard or the amount of people that
             will carry a route, he thinks that if they can provide the
             Saturday service at this point and for 1998-99 budget they
             can see if we can go ahead and provide the service on
             Sunday.

             He wants council to realize that they need to establish a
             standard for operating a particular route and if the route
             is not able to sustain itself or at least have the
             ridership that is required by the federal government, then
             we need to find some other solution, otherwise they will
             not be able to extend any service.

             Mr. Segovia stated they are working on the level of
             ridership.

             Cm. Alvarado asked if there is an additional $21,000.00
             needed for the Sunday service, and questioned if now they
             are only discussing Saturday?

             Mayor Flores stated they are looking at Saturday.

             Mr. Segovia stated that there will be some additional
             costs because of the fuel because of the additional
             distance, but the real impact cost would be for the Sunday
             service.

             Motion to continue to evaluate whether to include Sunday
             in the 1998-99 budget if level of ridership is there and
             to provide the service for Saturday at no additional cost.

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

          2. Recognizing the members of the Mayor's Blue Ribbon Library
             Building Committee for their commitment and dedication
             towards the construction of the New Main Library:
             Norma Benavides            Guillermina Montes
             Gloria Canseco             Cecilia May Moreno
             Jan I. Carter              Robert Ochoa
             Cynthia Earle              Rogelio Rivera
             Reymundo Fuentes           Juan Homero Sanchez
             Elizabeth J. Gill          Jose Valdez
             Joe Guerra                 Martha Villarreal
             Laura Martens              Janice Weber
             Mary Lou Mendiola          Rose Woodruff
             Eulalia Moncivais

             Mayor Flores on behalf of former Mayor Saul N. Ramirez and
             Mayor Protem Perez recognized the Mayor's Blue Library
             Building Committee recipients for their commitment and
             dedication towards the construction of the New Main
             Library.

             Cm. Guerra included Jesus Nava, former Assistant City
             Manager, who worked with the group to coordinate all the
             different ideas.

             They were presented with the awards by Mayor Flores.

B. Requests by Councilmember Louis H. Bruni

          1. Status report on the state of the Rio Grande River as it
             pertains to bacteria and other contaminants with possible
             action.

             Cm. Bruni said that the concerns of the river are not only
             regional but international, and to safeguard our only
             source of drinking water, he thinks that it is important
             that we keep a constant eye on what is in the river.  Due
             to Mexican newspaper article stating that bacteria
             (allegedly identified or found in the river) if ingested
             can be fatal.  This being his concern and the reason why
             he put this item in the agenda.

             He wants to hear on information from staff regarding the
             issue. Also, what has been done in terms of running tests
             that can identify wastewater contaminants (if increased or
             decreased) or where we are as a whole at the present time
             versus a couple of years back.

             Mr. Jerry Robinson, Health Department, concurs that the
             Rio Grande is our only source of drinking water;
             therefore, it is of critical importance to all of us who
             live in Los Dos Laredos.  He commented on the newspaper
             article concerning the bacteria that has been identified
             in the Rio Grande River stating that this bacteria is very
             fast acting, very hazardous and stated that if it goes up
             through your nasal passages is fatal.  Furthermore, that
             the worst concentration of the Nigleria Bacteria is four
             miles north and about three miles south of Rio Bravo.  He
             added that a death in Rio Bravo in 1994 resulted in the
             health department posting the river and that our side of
             the river is absolutely hazardous for emerging.

             In reference to testing, he distributed area maps to
             Councilmembers, and pointed that from Colombia Bridge on
             south to Webb County line with Zapata County these are
             sites where testing has been ongoing.  There is testing
             done by the City of Laredo Health Department and has been
             for a number of years.  They are now working in
             cooperation with TNRCC and expanding the testing capacity
             dramatically.

             He explained the existing and proposed Laredo water
             quality monitoring sites.  He said that on March 4, 1996,
             the sewage treatment plant in Nuevo Laredo came on line,
             this was a project conceived by the City Council of Laredo
             and was pushed through both national governments.  The
             project currently stands at a cost of about $56 million
             U.S. dollars.  The U.S. commitment did not change, it
             stayed at approximately $17 million,  $2 million from the
             State of Texas and the rest of the cost continuing to be
             borne by Mexico.  This being a very firm and strong
             commmitment on the Mexican Government part despite the
             most recent peso devaluation

             He explained that Fecal Coliform is the indicator of fecal
             or human fecal contamination of the river.  He also
             explained the average test counts for fecal coliform and
             the number of organisms that can be counted per 100 mi. of
             river samples, and the sites that had the most thick
             amounts of coliform bacteria.  He said that after the
             plant came on line, the average test count at the sites
             with the most bacteria have dropped to 5,103 at Rio Bravo
             vs. 339343, 2826 at Webb County/Zapata line vs. 410197
             which is dramatic evidence that the operation of the
             sewage treatment facility in Nuevo Laredo has had a
             dramatic increase on the southern part of the river.
             The ideal count would be less than 100 colonies per 100
             mi.  of water, so we are still a long way from ideal, but
             are still making progress.

             He focused on the potential for toxic chemical impacts on
             the river, chemical analysis of water, sediment, and fish
             tissue (chemicals exceeding one or more screening levels)
             and the biological analysis.  He added there are
             industries on the Mexican side that are in fact
             discharging metals and pcb into the river, but there is
             a lot of dilution that goes on.

             Where does the data show the concerns in Laredo?

             That is essentially where Manadas Creek empties into the
             Rio Grande.  That is where our concern for metals and
             pesticides starts to increase somewhat dramatically.

             In summary he said the river has been extensively tested
             and continues to be tested.  The technology that they have
             available locally at our resource is dramatically
             improving.  They have excellent capability for the
             bacteriological testing the river and they are maintaining
             that.  They have until now very minimal capability for the
             heavy metals and pesticides that is coming on line
             compliments of working cooperative with TNRCC.  The river
             remains a very polluted river and there is no question
             about it, especially south of Los Dos Laredos.
             He quoted, "you should not emerge yourself in that water,
             it is highly contaminated and dangerous to be in that
             river."  Upstream of Laredo there is much less concern
             because past, current and future test results will show
             that and hopefully that will stay the same.  He said it is
             critical to point out that to say that he river is
             polluted which he has done in no uncertain terms, as
             clearly as he knows how to say it, does not equate to say
             that the drinking water of the City of Laredo is
             contaminated.  There is an amazing amount of testing done
             on the drinking water both the Utilities Department, by
             independent laboratories and by the City of Laredo Health
             Department and by TNRCC.  The quality is well within all
             required EPA parameters.  If the river becomes extremely
             contaminated especially with chemicals and so forth, now
             we got a new problem, we are going to have a major problem
             in terms of keeping it clean enough for acceptable levels
             for human consumption and that has yet to happen, it has
             not happen at this point, but it is a concern.

             Cm. Bruni stated the concern he has is the high
             contamination at Manadas Creek that is above the intake of
             the Jefferson water intake.  Do we monitor Manadas Creek
             on a regular basis to see if the high metal chemical
             problems that exist on that area?  Do we do it often
             enough so that if something would happen the utilities
             crew would be aware of an increase in metals in that
             particular creek?

             Mr. Robinson stated that they have not had the technical
             capacity in terms of equipment to be able to do what would
             be consented an adequate job or being able to monitor
             that.  The capability is coming on line compliments of
             TNRCC working with the local Health Department.  It has
             not existed to this point, there is testing done.

             Cm. Bruni asked what safeguards do we have in case of a
             major increase in the amount of contaminants in Manadas
             Creek that the Utilities Department would be aware that
             they are going to get an unslot of some dangerous that
             might be able to be treated easily is his concern?

             Mr. Jerry Pinzon mentioned that to help and assist
             every time there is runoff from Manadas Creek they have
             the Environmental Engineering that takes out samples to
             ensure that the water is not contaminated.  They do the
             testing out of their labs, this helps and prevents them
             from alarming in case there is something coming in to
             the raw water intake.

             Cm. Bruni stated the agricultural part of the drought
             seems to be over, but the hydrological part drought is
             still in full force.  Amistad is still at a low time low,
             we have not received measurable precipitation, or major
             rain events consequently the levels are down.  When the
             levels are down bacteria have a much better way of getting
             to be a problem which is another concern he has.  The TDH
             has certain criteria for drinking water, how often are the
             guidelines for testing and where are we right now in terms
             of the two critters?

             Mr. Pinzon said he does not know where we are exactly at,
             everyday they take samples of the raw water intake, and
             the Health Department comes in unannounced and twice a
             year they take samples.

          2. Status report regarding the infrastructure, waste water
             improvements, and extension of University Blvd. to
             intersect with Casa Verde Road with possible action.

             Jerry Pinzon, Assistant Director for Utilities, explained
             an aerial map of Casa Verde and the area in question.  He
             said they are proposing to extend both water/wastewater
             lines from Loop 20 to cover the area this area.    A 12"
             waterline, an 8" sewer line, then they would come in with
             an 8" line to give water to each lot.  The cost for the
             water is $574,000 and wastewater $456,000.

             Rogelio Rivera, City Engineer, explained in reference to
             the construction of the road.  He said they received a
             letter today from Killam Development Corporation, signed
             by Jeff Brown.  Basically they agreed to the donation of
             the right-of-way; however, they had previously prepared a
             cost estimate on the construction based on the
             requirements given a year ago of $95,000 which included a
             traffic signal.  On the letter received today, they are
             advising that there would be a minimal to the right of way
             to match the existing right of way on the east side of the
             loop.  What he understands from the letter is that they
             would like to have the road constructed to those
             requirements also and another cost estimate would have to
             be drawn up to match the existing right of way and to
             match the existing road way on the east side.  They also
             say that they would agree to building half of the roadway
             right now and then the other half whenever the traffic
             merits it.  He said that the previous cost estimate would
             have to be updated.

             He explained they will that on the University Blvd., they
             would be connecting about 850 linear feet to Casa Verde
             Road.

             Cm. Bruni questioned if there is funding to implement the
             project.

             Mr. Pena stated that the $92,000 cost estimate project
             includes a $40,000 signalization of that area.  It is a
             project that needs to get in line, there are monies in the
             Capital Improvements Funds, on the last meeting they
             allocated some funds for certain projects.  They can come
             back to Council if Council is interested to present the
             total fund balance.  He said they have approximately
             $400,000, but they can have a precise amount at the next
             council meeting.

             Motion to find the necessary funding to extend the
             boulevard.

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

          3. Status report on the wastewater problems at the 3300 block
             of Guadalupe and the city Tex-Mex right of way with
             possible action.

             Cm. Bruni stated the problems in this area keep surfacing,
             there is a terrible wastewater problem, a health issues
             problem, problem with the storm drainage system that is
             not to grade so there is a backup of standing water, there
             is dumping on city right-of-way plus mosquitos and rodents
             in the area.  He wants to know what staff is doing to
             eliminate these problems that exist.

             Victor Oliveros, Chief of Environmental Health, stated
             that he has done an extensive investigation along with Mr.
             Pinzon of Utilities.  He read an internal memorandum that
             he wrote to Mr. Robinson which reads:  We have
             successfully treated the area along the Tex-Mex Tracks,
             from the 3400 Block of West Garfield,  for mosquito
             larvae.  We will repeat this treatment as long as there is
             standing water at the site.  Our animal control units
             searched the area and found a dog that had been buried at
             the site and it was determined to be the source of the bad
             smell.  This was important to us too as it took three days
             to find the bad smell.   They made a joint inspection with
             personnel from environmental engineering and showed them a
             4' storm drain which seems to be the main source of water.
             Since they have not had any rain lately, they believe that
             there is a source of water and asked environmental to run
             their cameras inside the pipe and determine what the
             source is because quiet a bit of water draining from that
             pipe is causing problems.  They also approached Oscar
             Medina from Public Works because of the debri and other
             garbage and trash on the area.  He said they would take
             care of that.

             He said there is a bigger problem there, because the whole
             Tex-Mex railroad needs to be cleaned in  this area and
             they need to improve the grade along these tracks to allow
             stormwater to flow freely into the Chacon Creek where it
             is supposed to drain.  They found several small berms that
             somebody built and are causing water stagnant, they need
             to be removed.  The area west of Harding to Canada Avenue
             along the railroad tracks need to be addressed by Tex-Mex
             otherwise we need to go back there time and again to treat
             the symptom.  There is illegal dumping in the area and
             before the right of way is cleaned they need to remove
             some debri.

             Cm. Bruni wants staff to make contact with Larry Fields of
             Tex-Mex and asked that we jointly try to eliminate that
             problem because the problem is not only coming from the
             dead dog, but also from that 5,000 gallon  underground
             band-aid that we put, when the wastewater line is over
             capacity, it feeds in there to the 5,000 gallon storage
             tank.  He wants to make sure that the storage tank is
             emptied on a daily basis so it doesn't spill over and
             defeat the purpose of additional work done.

             Mr. Pena said he understands that staff is emptying the
             storage tank, they are meeting with Tex-Mex, the wet well
             was a band aid as mentioned, the ultimate solution to that
             is the Chacon Creek Interceptor, but they go every 8 hours
             to vacuum the wet well that was built there to handle
             this overflow that we have.  There may be a need to
             enlarge that well seeing that Chacon Creek Interceptor may
             not be on line for another 16-18 months.  In the meantime
             they are going every day to empty it and will continue to
             do so.

          4. Report on El Metros Bi-fuel vehicles comparing the
             consumption of Compressed Natural Gas (CNG) use vs.
             gasoline, with possible action.

             Gilbert Segovia, Transit Director, reported that they do
             have a number of vehicles that are dual-fueled the
             para-transit service vehicles and the lift service.  For a
             while some of the mechanisms on those vehicles were not
             working properly.  All the drivers have been instructed to
             use CNG and when they run out of CNG they should switch to
             unleaded fuel.  They have a switch with which they can
             do this.  They will be taking some measures to closely
             monitor the compliance of that policy.

             Cm. Bruni asked that in terms of consumption, is more
             gasoline or more CNG being used?

             Mr. Segovia stated they are using about half and half
             right now on those vehicles.  Those have a limited supply
             of compressed natural gas.  They do have about a seven
             gallon equivalent storage capacity on those bi-fuel
             vehicles.  In many cases they are not able to go the
             entire day with CNG so they have to switch to unleaded.
             The primary fuel for this vehicles is CNG.  They have 15
             dedicated vehicles and 12 El Lift plus a number of support
             vehicles (approximately 10) that are also bi-fueled.

             Cm. Bruni asked if there are other vehicles in other
             departments that are CNG vehicles.  He asked for a brief
             report on other department that have dedicated and bi-fuel
             vehicles.

             Mr. Pena stated they will provide a report at the next
             meeting.

C. Requests by Councilmember Mario Alvarado

          1. Staff update on the proposed truck route extension thru
             the CP&L Power plant property.  (Co-sponsored Joe A.
             Guerra)

             Keith Selman, Planning Director, reported that council
             directed staff to go out and take a look at this area
             first in the study, so that they can get some preliminary
             work done.  They still have to resolve some alignment
             issues even though they have had conversations with most
             of the property owners and it has been very favorable
             in terms of taking a roadway through this area.

             He said that the ideal proposed roadway is to come up
             swinging by the two warehouses (Coca Cola and Budwiser) on
             the west side of the railroads coming up and then
             extending a roadway through some alignment and tying it
             into Mines Road basically bypassing the railroad
             requirement.

             He said council also directed to incorporate this into the
             West Laredo Study that is to be done by LUTS and that is
             part of what that project was put together anyway under
             the LUTS.  Last week council selected a firm to do the
             West Laredo Study, he had hoped to have the contract to
             council on this meeting, but they were not able to meet
             with the selected firm this week so maybe they will be
             bringing it in the next meeting to present a contract
             to council.  What they've requested them to do is look at
             the area first in the study so that we can get some
             preliminary work done in here, they still need to resolve
             alignment issues, they still need to settle on some
             alignments because there are some engineering
             difficulties.  There are issues that the selected firm
             will have to resolve from a circulation stand point a call
             stand point in terms of trying to get a fixation on that
             alignment.

             Mr. Pena stated for the record that there maybe some
             special state legislation that they might be able to do
             for border communities at any rate, they do have a lot of
             highway systems and certain sections of Mines Road that
             possibly if they can get a local bill that will allow
             border cities to certain truck routes that are on system
             because of the impact it has on the border or something
             like that, he thinks this is something they should
             explore.

             Cm. Alvarado stated what he wants to see done and has been
             asking staff is that we need to have those figures ready
             so when we do our budget workshops we have those figures
             available and at that time they are able to make a
             decision as to whether or not this project they need to
             look at funding for the next fiscal year or the year after
             that.  He also wants to know if planning staff recommends
             this particular project.

             Mr. Selman stated that this is a corridor that is
             identified on the Thoroughfare Plan, because of the
             upgrade conflicts with rail in lieu of some kind of
             overpass grade separation here and in other places he
             thinks this will work very favorable for the east/west
             mobility further down in south Laredo as well as
             north/south getting out to the Mines Road area.  He feels
             it's a worthwhile project.  He said the consultants show
             time frame for the project is approximately four months.

             Motion that staff have the information from the study
             available to council before they go into the budget
             hearings.

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

          2. Discussion on the city's annual Mother's Day Concert with
             possible action.

             Cm. Alvarado notified City Council of the Mother's Day
             Project, he said its been scheduled for May 6th at the
             Civic Center and wants to make sure all the Councilmembers
             are aware of the project and are invited to attend.

          3. Request to lift the present City Council moratorium on
             plan unit developments with possible action.

             Cm. Alvarado stated he met with developers in the Mines
             area and they have discussed some projects that are
             pending.  Basically what he was asking for at that
             particular point in time, was to put a halt in PUD, what
             he is asking now is that they lift that halt in PUD's and
             that they look at those particular projects based on its
             merits.  That the Planning Department keep some strict
             measures involved and that they pass those strict measures
             but that we also give the opportunity for developers to be
             able to come and present us some of the innovative ideas
             that they have through these PUDs.

             Mr. Steve Snow who does a lot of developing in town stated
             that several months ago they came before council to visit
             the R-1A to reduce lot size and the discussion occurred
             about Planning Unit Developments and there was controversy
             about that.  He said PUDs are a good development planning
             tool, they provide variety of different types of housing,
             styles, and method within a community.  He said they have
             a project coming together that they would like to bring to
             council which they think council will be excited about
             when they bring it before them, but Mr. Selman told them
             they had to come before council before going on with the
             project.  He said council needs to lift the moratorium and
             let them come before them with the projects on a unit by
             unit basis, and give them the merits of those as they come
             to council.

             Mr. Pena presented a history on the moratorium, he said
             the was a concern on lot sizes, now under a PUD and what
             happened in the early 1990's is that there was an
             amendment to the zoning ordinance which permitted lot
             sizes to be less than 45 sq. ft. if they provided certain
             amenities such as park, etc.  He added that at that one
             planning unit development zoning case, City Council
             expressed concerns that they didn't want to see 45 sq. ft.
             lots and there said lets put a hold on Planned Unit
             Developments until we either look at changing it or
             amending it or something, since then there have been no
             PUD zoning cases, until this one.  At this point Cm.
             Alvarado brought the issue to council, but they see there
             are three options that Council has which are as follows:

             1) Council can review the Planning Unit Developments on a
                case by case basis as being requested here.

             2) Council can request staff to amend the ordinance that
                establishes Planning Unit Developments to in essence
                eliminate the lot sizes (eliminate any consideration of
                lot sizes below 45 sq.ft.).

             3) To place a request that staff adopt an ordinance that
                would place a moratorium, they would have to hold a
                public hearing, it would be an amendment to the
                ordinance for a reasonable period of time to re-
                evaluate our Planned Unit Development Ordinance, but
                that we are not going to allow any lot sizes less than
                45 sq.ft.  until we've had a chance to re-evaluate the
                benefit of that kind of a plan.

             Cw. Moreno asked when they raised these moratorium, will
             they be back to the beginning or the same they were
             before?

             Mr. Selman stated he was not sure what the directive from
             council was in regards to the PUD issue.  His impression
             was that council did not want to see PUDs used exclusively
             as a mechanism for getting smaller lots.

             Cw. Moreno asked what was going to be the next step?

             Mr. Selman said that in his view, the next step would be
             for council to deny one, that came forth, with the
             exclusive provision of getting smaller lots.

             Cm. Valdez stated that the directive was clear, they were
             going to review the ordinance, come back with minimum
             standards which staff didn't come up with, and that is
             what they were going to do, we are back to square one,
             they are looking bad, they are holding developers.  He
             agrees with Cm. Alvarado, that they can look at these on a
             case by case basis, but directive was to go back to staff
             look at the ordinance and set up minimum standards.

             Motion to lift the halt on present moratorium and that
             they look at those particular projects based on its
             merits and that they come before council with the project
             on a case by case basis.

             Moved : Cm. Alvarado

             Motion to table the item for the next meeting.

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

XI.  PUBLIC HEARINGS

      22. Public hearing regarding application by Ermilio Richer, T.P.&
          W., Inc. amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lots 1 & 2, 6 & 7, Block 12, McPherson
          Acres IV, located at 802 Gale Street, from M-1 (Light
          Manufacturing District) to M-2 (Heavy Manufacturing
          District); Special Use Permit. The Planning and Zoning
          Commission recommends denial of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lots 1 & 2, 6 & 7, Block 12, McPherson Acres IV,
          located at 802 Gale Street, from M-1 (Light Manufacturing
          District) to M-2 (Heavy Manufacturing District); Special Use
          Permit.

          Motion to open the public hearing.

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

          Mr. Ron Whitehawk, representing Emilio Richer, spoke in favor
          of overriding the P&Z commission's recommendation of a denial
          of the zone change.  He explained that the site is currently
          a warehouse with office.  He hoped that with the support
          the adjoining property owners because they have been closely
          in contact with the Fire Department, the Haz-Mat under Mr.
          Cardenas, met many times over the last three month and have
          arrived at three sets of conditions that they would like to
          propose to council as an M-1 because in their opinion it can
          be accommodated in an M-1 condition use permit.  The
          conditional use permit would have the following three
          conditions that they would voluntarily ask council to
          consider.

          (1) That the use of the property be for used auto batteries
              only in terms of Haz-Mat.

          (2) That it essentially be on a same day type of operation,
              although if they talking about a weekend or holiday they
              would expect flexibility on the part of staff to allow
              the merchandise or items to stay there until they can be
              shipped out.  This process would be flow through process
              as opposed to storage.

          (3) That it be in effect, that it be allowed to exist for one
              year.  The one year being because as staff has indicated,
              that they would like to revisit the zoning ordinance as
              it relates to Haz-Mat and perhaps make some changes.
              This one year time period would allow staff to go through
              the public hearing process and come up with something
              that they are sure everybody can live with.

          He asked that they allow this business to continue under the
          permission of the Fire Department through a Haz-Mat permit
          and that the M-1 conditional permit be the vehicle of the
          mechanism by which that can happen.  He submitted a letter
          from TNRCC whereby they give their blessing to him for his
          operation.

          Motion to allow to continue with the three provisions
          mentioned by Mr. Ron Whitehawk, override P&Z and staff's
          recommendation, and allow to continue under M-1 with the
          conditional use permit, close the public hearing and
          introduce the ordinance.

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

          Ordinance Introduction:  Cm. Bruni

      23. Public hearing amending the Street Name Map of the City of
          Laredo by changing the name of San Pedro Street, between
          Foster Avenue and Bartlett Avenue to Gust Street. The
          Planning and Zoning Commission recommends approval of this
          amendment to the Street Name Map.

                      INTRODUCTION OF AN ORDINANCE
          Amending the Street Name Map of the City of Laredo by
          changing the name of San Pedro Street, between Foster Avenue
          and Bartlett Avenue to Gust Street.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction:  Cm. Bruni

      24. Public hearing regarding application by Cesar Almanza,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 10, Block 942, Eastern Division, located at 2914
          Mendiola Avenue, from R-3 (Mixed Residential District) to B-1
          (Limited Business District).  The Planning and Zoning
          Commission recommends denial of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 10, Block 942, Eastern Division, located at 2914
          Mendiola Avenue, from R-3 (Mixed Residential District) to B-1
          (Limited Business District).

          Motion to open the public hearing.

          Moved :  Cm. Bruni
          Second:  Cw. Moreno
          For:  7                       Against:  0         Abstain:  0
          Mrs. Maria Elena Almanza, owner, was petitioning in favor of
          the zone change.

          Keith Selman, Planning Director, pointed that out of the 29
          letters received, they received six in opposition that would
          kick in the 20% rule and the commission recommends denial. He
          said they can't conform with the provisions or requirements
          for a day care centers on the site plan.

          Maria Elena Gonzalez stated that traffic is terrible and
          spoke against the zone change.  She said Lyon, Plum, and
          Frost have heavy traffic because of Los Pepitos which causes
          traffic congestions and that is why they are opposed to this
          zone change request.

          Motion to close the public hearing support the P&Z
          recommendation to deny and deny the zone change request.

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

      25. Public hearing regarding application by Blackstone Dilworth,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 42.2 acres, as further described by metes and
          bounds, located at 10611 McPherson Road from AG (Agricultural
          District) to B-4 (Highway Commercial 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 42.2 acres, as further described by metes and
          bounds, located at 10611 McPherson Road from AG (Agricultural
          District) to B-4 (Highway Commercial District).

          Motion to open the public hearing.

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

          Mr. Harry Jewet, representing property owners, spoke in favor
          the new zone change.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction:  Cm. Guerra

      26. Public hearing regarding People's Manufactured Housing, Jose
          Medina, authorizing the issuance of a Special Use Permit for
          a mini-storage/warehouse, on Lot 1, Block 1, Crownridge
          Subdivision, located at 602 Shiloh Drive.  The Planning and
          Zoning Commission recommends approval of this Special Use
          Permit.

                      INTRODUCTION OF AN ORDINANCE
          Authorizing the issuance of a Special Use Permit for a mini-
          storage/warehouse, on Lot 1, Block 1, Crownridge Subdivision,
          located at 602 Shiloh Drive.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction:  Cm. Guerra

      27. Public hearing regarding Cummins Southern Plains, Inc., A.
          Charles Funai, Vice President, amending the Zoning Ordinance
          (Map) of the City of Laredo by authorizing the issuance of a
          Condition Use Permit for storage of used batteries on Lot 1,
          Block 1, Javier Garza Plat, located at 12002 Mines Road.  The
          Planning and Zoning Commission recommends approval of this
          Conditional Use Permit.

                      INTRODUCTION OF AN ORDINANCE
          Amending the Zoning Ordinance (Map) of the City of Laredo by
          authorizing the issuance of a Condition Use Permit for
          storage of used batteries on Lot 1, Block 1, Javier Garza
          Plat, located at 12002 Mines Road.

          Motion to open the public hearing.

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

          Ron Whitehawk, representing Javier Garza, spoke in favor of
          the zone change request to authorize the issuance of a
          Conditional Use Permit.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Perez

      28. Public hearing regarding Robles Real Estate Partnership, Les
          Norton amending the Zoning Ordinance (Map) of the City of
          Laredo by authorizing the issuance of a Conditional Use
          Permit for a pawn shop on Lots 4 and 5, Block 3, Western
          Division, located at 308 Convent Avenue.  The Planning and
          Zoning Commission recommends approval of this Conditional Use
          Permit.

                      INTRODUCTION OF AN ORDINANCE
          Amending the Zoning Ordinance (Map) of the City of Laredo by
          authorizing the issuance of a Conditional Use Permit for a
          pawn shop on Lots 4 and 5, Block 3, Western Division, located
          at 308 Convent Avenue.

          Motion to open the public hearing.

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

          Ron Whitehawk spoke in opposition due to a petition from a
          group of property owners and businessmen in downtown stating
          that there are already five (5) pawn shops in the downtown
          are and this additional would make would be the sixth.  If
          this were to be approved half of them would be easy pawns.
          The area would be made worst by having too many pawn shops in
          the same area.  This shop has no parking plan and is
          deficient, and does not merit council approval.

          George Beckelheymer, Buffalo Pawnshop  owner, said business
          is slow and Laredo has more than opened out of state,
          especially Easy Pawn, predatory and monopolistic, please look
          at this to defend the local businesses, and deny the zone
          change request.

          Motion to send it back to P&Z for review as a Conditional Use
          Permit.

          Moved :  Cw. Montalvo
          Second:  Cm. Bruni

          Second was withdrawn.

          Motion to close the public hearing, override P&Z's
          recommendation and not approve the conditional use permit.

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

      29. Public hearing amending the City of Laredo FY 1997-98 Annual
          Budget by creating a position of Clerk II for the Traffic
          Department at an annual cost of $17,468.00, including
          benefits and a one-time capital outlay request of $4,000.00,
          and authorizing the City Manager to implement said budget.

                      INTRODUCTION OF AN ORDINANCE
          Amending the City of Laredo FY 1997-98 Annual Budget by
          creating a position of Clerk II for the Traffic Department at
          an annual cost of $17,468.00, including benefits and a one-
          time capital outlay request of $4,000.00, and authorizing the
          City Manager to implement said budget.

          Motion to open the public hearing.

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

          There is no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

      30. Public hearing providing community residents an opportunity
          to comment on their housing and community needs and the
          projects they wish to see funded through the 24th Action Year
          Community Development Block Grant ($4,274,000.00), and 1998
          HOME Investment Partnerships Program ($1,257,000.00), and
          1998 Emergency Shelter Grant ($167,000.00) in support of the
          preparation and submission of the 1998 Consolidated Plan to
          the U.S. Department of Housing and Urban Development (HUD).

          Motion to open the public hearing.

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

          Cindy Collazo, Community Development Director, made the
          presentation before the Council and went over each of the
          programs, the eligible activities and their amounts.

                  PROJECTS FOR COUNCIL'S CONSIDERATION

          Dist.       Project                                   Amount

1,2,3,5,7,8     Project 61- Street Improvements (37 blocks)   $980,000
                (including paving, curb & gutter, & water &
                sewer improvements).
    1           Tinaja Creek Channelization                   $500,000
                (concrete lining of phase 2 from U.S. 83 to
                Malinche)
    ALL         Graffiti Removal Program                        28,000
                (Removal of graffiti in CD eligible areas on
                public buildings)
    ALL         Housing Rehab Program                         $350,000
                (Loan to low/moderate income families for
                rehab of owner occupied residential
                dwellings)
    7           Lafyette Widening                             $675,000
                (acquisition & relocation of families on
                Lafayette from San Ignacio to Sta. Isabel).
    2           D.D. Hachar Recreation                        $350,000
                (construction of a recreation facility for
                area residents)
    5           Zacate Creek Linear Park                      $200,000
                (continuation of linear park from Sauders
                to Canal)

    4           Clark/Hendricks Street Improvements           $ 45,862
                (construction of retaining wall & other
                related improvements)

    8           Hamilton Hotel - Section 108 Loan             $135,000
                (Annual payments on loan for acquisition, renovation,
                relocation & other related costs for the Hamilton
                Hotel Project)

                Housing Rehab Admin                           $138,196
                Administration                                $620,533
                Code Enforcement                              $251,050
                                                              ---------

                Total                                       $4,274,000
                Grant Amount                                $4,274,000


 OTHER PROJECTS FOR COUNCIL'S CONSIDERATION

 DIST.     PROJECT
    5      Raquel Gonzalez Acquisition of 3 blocks            $200,000
           (Acquisition of 3 blocks for conversion
           into a softball/soccer field)
    1      Sierra Vista Recreational Center                   $700,000
           (Construction of a recreational center
           the Sierra Visa/Los Obispos area)
    8      Plaza Theater Acquisition/Rehab Section 108      $1,500,000
           (Acquisition & rehabilitation of the theater
           to a community facility for fine arts activities.
           this may require annual payment of approx.
           $125,000).
    1      Dryden Optimist Park                                150,000
           (Construction of a road, lighting, & related
           improvement).
    2      Blaine/Milmo/Loop 20 Improvements                     90,000
           (Storm drainage improvements along Blaine
           St. to the west side of U.S. 83)
    5      Cruz Field Lighting                                  50,000
           (Lighting improvements for illumination of park)
    8      La Ladrillera Recreation Center                     700,000
           (Construction of a recreation center for area
           residents)

          Robert Gutierrez, local builder, applauded the work on the
          housing programs that Cindy Collazo and Erasmo Villarreal
          have done in providing a consistent flow of housing and
          downpayment assistance programs throughout the years and in
          addressing the community housing needs in five districts.  He
          said that Mayor Ramirez had a vision of 100 homes by the year
          2000, under Mayor Flores and members of the City Council they
          would like to challenge to make it 2,000 by the year 2000 and
          they can get there by doing the following:

          1)  Allocate $1.8 million for a citywide downpayment
              assistance for 1998 and 1999.
          2)  Increase the loan amount in the most needed income ranges
              of 60% or below of medium income families from $5,000
              level to $9,000 and limit the sales price to be $60,000
              or less.

          The reason for the increase is two fold, FHA has modified the
          qualifying guidelines and removed a 38/45 pilot program in
          Webb County for families of 60 percent or below of medium
          income.

          Secondly, we need to help those families and $1,000-$1,200
          per month that work hard and not able to buy a home today.
          The compelling reasons are as follows:

          1) We need to give people hope.
          2) They can help hundreds of families including, in
             particular, many single mothers with children that are
             walking through our doors
          3) Improve the quality of the future neighborhood by creating
             competition.
          4) Will promote private ownership, promote education, and
             will reduce crime by creating job opportunities.
          5) Make children feel proud to invite one of their best
             friends over to their home because currently a lot of
             children out there are ashamed to invite their friends to
             their homes because of the situation that they find
             themselves in.
           6) Finally, he thinks that when they make a difference in
              someone's lives we feel good about it.

          If we can find $8.4 million for noise abatement, surely we
          can find $1.8 million for downpayment assistance to help
          families in our community.

          Motion to close the public hearing.

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

 XII. ADJOURNMENT

          Motion to adjourn.

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

          Adjournment time: 9:10 p.m.

I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 33 ARE
TRUE, COMPLETE, AND CORRECT PROCEEDINGS OF THE CITY COUNCIL MEETING
HELD ON THE 27TH DAY OF APRIL, 1998.  A CERTIFIED COPY IS ON FILE AT
THE CITY SECRETARY'S OFFICE.


                                  ________________________
                                  GUSTAVO GUEVARA, JR.
                                  CITY SECRETARY