CITY OF LAREDO
                           CITY COUNCIL MEETING
                                 M98-R-22
                               MAY 18, 1998

                                 MINUTES

   I.  CALL TO ORDER

       With a quorum present Mayor Pro-Tem Jose R. Perez called the
       meeting to order.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Pro-Tem led in the Pledge of Allegiance.

 III.  ROLL CALL

       IN ATTENDANCE;
       Jose R. Perez                   Mayor Pro-Tem
       Louis H. Bruni                  Councilmember, District II
       Alfonso "Poncho" Casso          Councilmember, District III
       Cecilia May Moreno              Councilmember, District IV
       Eliseo Valdez                   Councilmember, District V
       Joe A. Guerra                   Councilmember, District VI
       Mario G. Alvarado               Councilmember, District VII
       Consuelo "Chelo" Montalvo       Councilmember, District VIII
       Gustavo Guevara, Jr.            City Secretary
       Florencio Pena, III             City Manager
       Jaime L. Flores                 City Attorney

       ABSENCE:

       Motion to excuse Mayor Elizabeth G. Flores due to death of her
       father.  Mayor Pro-Tem Perez requested a moment of silence to
       honor Mayor Flores' father, Eloy Garcia.

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

  IV.  MINUTES

       2.  City Council Meeting, March 23, 1998
           City Council Meeting, April 6, 1998
           City Council Meeting, April 20, 1998

           Motion to approve.

           Moved : Cm. Bruni
           Second: Cm. Alvarado
           For:  6                   Against: 0         Abstain: 5


       Motion to waive the rules and move to Item #16; 98-R-070; E(2);
       and C (1).

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

       Cm. Casso came in at 5:36 p.m.

  V. INTRODUCTORY ORDINANCES

       3.  Authorizing the City Manager to execute a Rental Car A gency
           Concession and Lease Agreement with Southwest-Tex Leasing Co.,
           Inc., d/b/a Advantage Rent-A-Car fo r the approximate 171
           square feet of office and counter space located in car rental
           space #4, and for 17 parking spaces located at 5210 Bob
           Bullock Loop at the Laredo International Airport passenger
           terminal.
           a.)  term of the agreement is for five (5) years;
           b.)  initial monthly concession fee is $1,224.00 and shall be
                adjusted annually based on changes in passenger
                enplanement activity;
           c.)  monthly rent for the office and counter space will be
                $213.75 per month, plus $170.00 per month for parking.

           Ordinance introduction: City Council

       4.  Authorizing the City Manager to execute a Rental Car A gency
           Concession and Lease Agreement with Coastal Ben d Rent-A-Car,
           Inc., for the approximate 133 square fe et of office and
           counter space located in car rental space #5, and f or 19
           parking spaces located at 5210 Bob Bullock Loop at the Lare do
           International Airport passenger terminal.
           a.)  term of the agreement is for five (5) years;
           b.)  initial monthly concession fee is $1,224.00 and shall be
                adjusted annually based on changes in passenger
                enplanement activity;
           c.)  monthly rent for the office and counter space will be
                $166.25 per month, plus $190.00 per month for parking.

           Ordinance Introduction: City Council

       5.  Authorizing the City Manager to execute a Rental Car Agen cy
           Concession and Lease Agreement with Sames Motor Co., Inc.,
           d/b/a Budget Rent-A-Car of Laredo for the approximate 171
           square feet of office and counter space located in car rental
           space #2, and for 19 parking spaces located at 5210 Bob
           Bul lock Loop at the Laredo International Airport passenger
           terminal.
           a.)  term of the agreement is for five (5) years;
           b.)  initial monthly concession fee is $1,224.00 and shall be
                adjusted annually based on changes in passenger
                enplanement activity;
           c.)  monthly rent for the office and counter space will be
                $213.75 per month, plus $190.00 per month for parking.

           Ordinance Introduction: City Council

       6.  Authorizing the City Manager to execute a Rental Car Agency
           Concession and Lease Agreement with Gateway Rent-A-Car d/b/a
           Hertz Rent-A-Car for the approximate 17 1 square feet of
           office and counter space located in car rental space #1, and
           for 19 parking spaces located at 5210 Bob Bullock Loop at the
           Laredo International Airport.
           a.)  term of the agreement is for five (5) years;
           b.)  initial monthly concession fee is $1,224.00, and sha ll
                be adjusted annually based on changes in passenger
                enplanement activity;
           c.)  monthly rent for the office and counter space will be
                $213.75 per month, plus $190.00 per month for parking.

           Ordinance Introduction: City Council

       7.  Authorizing the City Manager to execute a Rental Car Agency
           Concession and Lease Agreement with Laredo Car Rental, Inc.,
           d/b/a National Car Rental for the approximate 165 square feet
           of office and counter space located in car rental space #3,
           and for 19 parking spaces located at 5210 Bob B ullock Loop at
           the Laredo International Airport.
           a.)  term of the agreement is for five (5) years;
           b.)  initial monthly concession fee is $1,224.00, and shall be
                adjusted annually based on changes in passenger
                enplanement activity;
           c.)  monthly rent for the office and counter space will be
                $206.25 per month, plus $190.00 per month for parking.

           Ordinance Introduction: City Council

       8.  Authorizing the City Manager to execute a lease with Border
           Maintenance Service, Inc., for approx imately 2,304 square
           feet constituting Building #1421 located at 181 7 Pappas at
           the Laredo International Airport.
           a.)  term of the agreement is for one (1) year commencing
                July 1, 1998 and ending June 30, 1999;
           b.)  monthly rent shall be $650.00; previous monthly rent was
                $550.00.
           Lease premises are used for office space and a maintenance
           service workshop.

           Ordinance Introduction: City Council

       9.  Authorizing the City Manager to execute a lease with Roberto
           Villasenor for approximately 960 square feet constituting
           Building #1319 located at 4011 North Jarvis Avenue, for the
           purpose of an airline cateri ng service.
           a.)  term of the lease is for two (2) years commencing on
                December 1, 1997 and ending November 30, 1999,
           b.)  monthly rent shall be $288.00 and will be adjusted
                annually during the primary and extension terms of this
                lease according to changes in the Consumer Price Index.

           Ordinance Introduction: City Council

      10.  Authorizing the City Manager to execute all necessary
           documents to effectively convey fee sim ple title to W.E.
           Haynes, VI, for the sale of the "Surface Only" at its fair
           market value of certain City propert y described as a tract of
           land consisting of 15,432.35 square feet (55.56' x 277.76)
           more or less out of and part of that former section of the
           3000 block of Ross Street between India and Canada Avenues and
           being bounded on the North by Block 1877, E.D. an d on the
           South by Block 1878, E.D.  situated i n the Eastern Division,
           City of Laredo, Webb County, Texas and hereby approving the
           submitted improvement plan in compliance with Section 10 of
           the Str eet Closing/Sales Policy Handbook as approved per
           Resolution No. 97-R-140; and providing for an effective date.

           Ordinance Introduction: City Council

  VI.  FINAL READINGS

       Motion to waive the final reading of ordinance #98-0-123;
       #98-0-124; #98-0-125; and #98-0-126.

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

       11. 98-O-123  Authorizing the City Manager to execute a lease with
                     Webb County (for use by t he Laredo/Webb County
                     Community Action Agency) for approximately 380
                     square feet of office space const ituting Suite
                     No. 9 of Building No. S-1 located at 1718 E. Calton
                     Road.
                     a.)  lease term is for one (1) year commencing March
                          1, 1998 and ending February 28, 1999, and may
                          be extended for one (1) term of one (1) year
                          ending February 29, 2000;
                     b.)  monthly rent shall be $422.07;
                     c.)  previous monthly rent was $401.97.
                          (City Council)

                     Motion to approve.

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

       12. 98-O-124  Authorizing the City Manager to execute a lease
                     renewal with the State of Texas General Services
                     Commission on behalf of the University of Texas
                     Health Science Center at San Antonio for 317 square
                     feet of office space at the City of Laredo Health
                     Complex located at 2600 Cedar Street.
                     a.)  term of the lease renewal will be from
                          September 1, 1998 through August 31, 1999;
                     b.)  lessee shall pay a sum in the amount of $345.08
                          rental fee per month which includes the cost of
                          utilities and janitorial services.
                          (City Council)

                     Motion to approve.

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

       13. 98-O-125  Approving an amendment to the contract with the
                     Texas Department of Health and Budget Revision to
                     reflect the additional amount of $320,759 in direct
                     assistance for the Immunization Action Plan Project
                     of the City of Laredo Health Department for the
                     period beginning January 1, 1998 through December
                     31, 1998.  (City Council)

                     Motion to approve.

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

       14. 98-O-126  Authorizing the issuance of City of Laredo, Texas
                     Combination Tax and Airport Revenue Certificates of
                     Obligation, Series 1998, in the principal amount of
                     $1,430,000.00 for the purpose of paying all or a
                     portion of the City's Contractual Obligations for
                     the 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, and other
                     matters relating thereto.  (City Council)

                     Cm. Bruni stated that for the purpose of the people
                     watching public access he wanted to state for the
                     record that he had previously requested that this
                     item be clarified as it appeared to be ambiguous as
                     it was stated.

                     Conrado Hein Finance Director advised Cm. Bruni that
                     public notice was posted as it appeared in the
                     ordinance; therefore, to have done the changes they
                     would have to start from the beginning but that Cm.
                     Bruni's observation had been duly noted.

                     Noe Hinojosa with Hinojosa & Company stated for the
                     record that bonds were issued for a period of 20
                     years and rates were at 5.37% from A. G. Edwards.

                     Motion to approve.

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




 VII.  RESOLUTIONS

      15.  98-R-045  Amending Resolution No. 97-R-127, which aut horized
                     the execution of a Right-of-Entry and Possession
                     instrument between the City of Laredo and Fasken
                     Ltd., a Texas Limited Partnership, and by which the
                     City was granted the right to enter upon, and take
                     possession of two tracts containing 57.5827 and
                     11.2571 acres of land, respectively, and owned by
                     Fasken Ltd.  Said proposed ame ndment will provide
                     for the addition of a third 5.1907 acre tract of
                     land to the above-referenced Right of Entry and
                     Possession instrument, for an amended total of 74.03
                     acres.

                     Motion to approve.

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

      16.  98-R-070  Authorizing the City Manager of the City of Laredo
                     to accept a grant application (reimbursement
                     program) from the Intermodal Surface Transportation
                     Efficiency Act Statewide Transportation Enhancement
                     Program to acquire and stabilize the Benavides-
                     Herrera home at 802 Grant Street and authorizing the
                     City Manager to execute the necessary documents.
                     Use of the property is to be determined.  Repairs
                     will protect a historical site in Laredo.

                     Margarita Araiza, Executive Director of the Webb
                     County Heritage Foundation presented a $20,000
                     pledge to the City of Laredo for the historic
                     restoration/rehabilitation of the Benavides-Herrera
                     home.  She further stated that she wanted to thank
                     Ms. Nina Nixon Mendez and Larry Dovalina for getting
                     this project off the ground.

                     Motion to approve.

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

      17.  98-R-076  Resolving that the City Manager may execute a
                     Subordination, nondisturbance and Attornment
                     Agreement between the City of Laredo, as Lessor, and
                     L.A. Ventures, Inc., as Lessee, and International
                     Bank of Commerce, as Lender, for the purpose of
                     securing a temporary and perm anent loan for the
                     improvements on Lots No. 6 of Block No. 1 at the
                     Laredo International Airpark Subdivision at the
                     Laredo International Airport.

                     Motion to approve.

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


      18.  98-R-077  Authorizing the City Manager to execute a
                     professional service contract wit h Dr. Dennis D.
                     Cantu for services as a medical director/supervisor
                     of pre-hospital care for the City of Laredo for (5)
                     years commencing on June 1, 1998, and ending on May
                     31, 2003 for the sum of $45,000.00 per year.  The
                     City has contracted with Dr. Cantu since 1985.

                     Motion to approve.

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

      19.  98-R-078  Supporting the Metro Affordable Housing Corporation
                     in their application to the Texas Department of
                     Housing and Community affairs for low income housing
                     tax credit for the construction of 128 residential
                     rental units for low/moderate income residents.

                     Motion to approve.

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

II.  MOTIONS

      20.  Approval of bid specification and authorization to advertise
           for bids for the following:
           a)  automotive tires, six month contract - Fleet Maintenance
           b)  carpet and tile replacement, painting - Municipal Court
               Building
           c)  fixed asset valuation - Finance Department
           d)  ambulance (replacement) - Fire Department, EMS

           Motion to approve.

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

      21.  Authorizing the City Manager to solicit bids for the placement
           of solid sod and hydroseed  the grounds at the new airport
           passenger terminal and parking lot.

           Motion to approve.

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

      22.  Approval of the construction plans and authorization to
           advertise for bids for the Laredo Northwest International
           Bridge (Fourth Bridge) with tentative award July 20, 1998.
           The project consists of the construction of an international
           bridge, 120 feet in width by approximately 976 feet in length
           (the U.S. base bid is 391 feet in length) located
           approximately 6000 feet west of the intersection of FM3654
           (Milo Road) and FM 1472 (Mines Road).  Included in a bid
           alternate is the international common span between piers 6 and
           7, which is 120 feet in width by approximately 98 feet in
           length (additive alternate bid deck, prestressed type IV
           beams, reinforced concrete abutments and multi-column bents,
           approach slab, railings, fence and illumination assemblies).
           The structure is designed in accordance with A.A.S.H.T.O.,
           1996 Standard Specifications with a Design Live Load of
           170,840 pounds.  Structural Engineering Associates (SEA) of
           San Antonio, Texas, consultant for the project will make a
           presentation. Funding is in the Bridge System Fourth Bridge
           Advertising.

           Cindy Collazo, Community Development Director, stated that her
           department was seeking Council approval on construction of the
           plans and specifications for the project.  Further stating
           that they are requesting that they be subject to review by TX
           DOT and FHWA.  Also, a revision on the schedule of the EDA
           Project, which is presently in the process of being
           advertised on June 19, 1998, open bids on July 21, 1998 at
           4:00 p.m. and tentative award date, the end of July.  Start
           construction, late August and completion by August 27, 1999,
           with opening of the bridge by November or December of 1999.

           David Covarrubias, Project Engineer with Structural
           Engineering & Associates made a presentation on the overall
           project layout, bidding, and design.

           Cindy Collazo stated that they were in the process of
           requesting a model to be able to inform the public on the
           amount of work that this $70 million project the City of
           Laredo and TXDOT will undertake.

           Motion to approve.

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

      23.  Authorizing the City Manager to submit an application to the
           Federal Aviation Administration requesting from FAA a "Letter
           of Commitment" committing Laredo's future FY 1999, FY 2000 and
           FY 2001, Airport Improvement Program, Passenger and Cargo
           Entitlement f unds in the estimated amount of $1,724,985.00
           for construction and reconstruction of airport pavements.  The
           proposed "Letter of Commitment" would enable the City to
           secure short term financing to expedite the proposed airport
           improvements. A revenue anticipation note will be considered
           to finance this program.  Further council action will be
           required.

           Motion to approve.

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

      24.  Approval of the construction plans and authorization to
           advertise for bids for the Farias Ele mentary School Student
           Drop-off/Pick-up Area Improvements Project with tentative
           award of June 15, 1998.  This is a cost sharing project
           between the City of Laredo and Laredo Independent School
           District (LISD).  Funding is available in the 1998 Certificate
           of Obligation Issue Sch ool Drop Off Construction Project.

           Motion to approve.

           Moved : Cm. Bruni
           Second: Cm. Alvarado
           For:  6                  Against: 0          Abstain: 1
                                                        Cw. Moreno

      25.  Authorizing the City Manager to solicit proposals from
           qualified Civil/Environmental consultants to develop a Storm
           Water Management Master Plan for the Zacate Creek Watershed.
           The scope of the work includes:
           a)  Updating the FEMA flood insurance map.
           b)  Inventory of drainage structures and drainage ways.
           c)  Developing hydrologic and hydraulic models.
           d)  Identifying and recommending the location of the regional
               detention pond and for the floatable control devices and,
           e)  Developing and evaluating improvement alternatives.

           Motion to approve.

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

      26.  Authorizing the City Manager to solicit proposals from
           qualified engineering/surveying consul tants for professional
           services for surveying and providing metes and bounds
           descriptions and maps for the acquisition of a tract of land
           approximately 850 L.F. in length and 120 feet wide for the
           extension of the University Boulevard West of the Bob Bullock
           Loop to intersect the existing Casa Verde Road, and for the
           survey work and mapping required to vacate that portion of
           Casa Verde Road North of this intersection northward to the
           intersection of Casa Verde Road with the Bob Bullock Loop and
           for the design and preparation of plans and specifications for
           the road extension.  Funding is available in the Capital
           Improvement Fund Extension of University Boulevard to Casa
           Verde Road.

           Motion to approve.

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

      27.  Approval of selection of consultant and authorization to
           negotiate an engineering contract with Fost er Engineering
           Company, Laredo, Texas, for the Upper Zacate Creek Drainage.
           Project from East of McPherson Ro ad at Los Ebanos east and
           northeast to Jacaman Road and Del Mar Blvd. to include
           surveying, identifying alternative alignments, survey maps for
           easement acquisition, and preparation of plans and
           specifications for construction of a concrete pilot channel
           and/or alternatives.  Funding is available in the 1998
           Certificate of Obligation Issue.

           Motion to approve.

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

      28.  Award of an annual preventive maintenance contract to the SOLE
           BIDDER, Five Star Electric Motors, Inc., San Antonio, Texas,
           in the estimated amount of $18,185.00, for the preventive
           maintenance on thirty variable frequency drives.  These drives
           located throughout the water distribution system, control the
           water pump output.

           Motion to approve.

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

      29.  Award of contract to the LOW BIDDER, Simon Ladder Towers,
           Inc., Epharate, PA., in the amount of $299,990.00, for the
           purchase of a Remanufactured 75' Aerial Ladder Truck.  The
           unit will be ready for delivery within nin e months.  Funding
           is available from contr actual obligation bond monies.

           Motion to approve.

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

      30.  Award of an architectural contract to Design Group Interna-
           tional, Laredo, Texas, for an amount not to exceed $13,100.00
           to design and prepare plans and specifications for Repairing
           and Remodeling the Canizales Gym located at 1600 Guadalupe
           Street. Funding is available in the 1998 Certificate of
           Obligation Issue Canizales Gym Construction Project.

           Motion to approve.

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

      31.  Award of an engineering contract for an amount not to exceed
           $25,530.00 to Sherfey Engineering Company, L.L.C., Laredo,
           Texas, for design and preparation of plans and specifications
           and cost estimates for the Zacate Creek Beautification Project
           from Saunders A venue to Garden Street.  Funding is available
           in the Community Development Zacate Creek Beautification.

           Motion to approve.

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

      32.  Award of an engineering contract for an amount not to exceed
           $59,400.00 to Mejia Engineering Company, Laredo, Texas, to
           design, prepare plans and specifications and cost estimates
           for the Calton Road Widening, adjacent to the New Public
           Library.  City of Laredo 1997-98 Certificate of Obligation
           Issue Project.  Funding is available in the 1998 Certificate
           of Oblig ation Issue Calton Road Improvements Project.

           Motion to approve.

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

      33.  Award of an engineering contract for an amount not to exceed
           $13,940.00 to G.G. Salinas Engineering Co mpany, Laredo,
           Texas, to design, prepare plans and specifications and cost
           estimates for the sidewalk improvements for the Trautmann
           Elementary Sc hool, Alma Pierce Sidewalks and Amparo Gutierrez
           Elementary Schools and related improvements.  Funding is
           available in 1998 Certificate of Obligation Issue:  Alma
           Pierce Sidewalk Construction Project; Trautmann Elementary
           Sidewalk Construction Project and in Calle Del Norte Sidewalk
           Construction Project.

           Motion to approve.

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

      34.  Authorization to award engineering consultant contract for the
           West Laredo Traffic Circulation Study to Lockwood, Andrews and
           Newnam, Inc., in the amount of $50,000.00.  Funding is
           available from Laredo Urban Transportation System (LUTS).

           Motion to approve.

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

      35.  Award of a surveying contract to Mejia Engineering Company,
           Laredo, Texas, not to exceed $22,000.00 to provide land
           survey, metes and bounds legal descriptions of and the
           required right-of-way maps for the right-of-way acquisition of
           the extension of the Bob Bullock Loop from IH-35 to the
           proposed Bridgehead of the West Laredo International Bridge
           (Fourth Bridge), approximately 2.1 miles and 400 feet wide.
           Funding is available in the Bridge System - Fourth Bridge
           Consulting Fees.

           Motion to approve.

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

      36.  Approval of change order no. 1, a increase of $50,691.00, to
           add parking improvements at the U.S. Postal Office located at
           2700 E. Saunders as part of the construction contract with
           Gallegos Paving, Inc., Laredo, Texas, of  the E.D.A.  Proj ect
           No. 08-01-03080 Airport Medical Infrastructure Improvements
           Arka nsas Avenue Extension. The original contract am ount was
           $1,425,343.50.  This change order b rings the total contract
           amount to $1,477,684.50.  Funding is available in the E.D.A.
           Project No. 08-01-03080 - Airport Medical Infrastructure
           Improvements Arkansas Avenue Extension.  Funding is available
           in the EDA Airport Medical Park Improvements Other Than
           Building.

           Motion to approve.

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

      37.  Approval of change order no. 2, a net decrease of $ 102.94 for
           a decrease in drainage pipe and trench excavation safety not
           required to complete the project, and for the addition of a
           safety end treatment to the 48" diameter R.C.P. at Manadas
           Creek, the addition of junction boxes to eliminate conflicts
           with Delhi Gas Line and sanitary sewer main and the addition
           of a metal beam guard rail with dead end sign west of the
           interse ction of Markley Lane and Anna Avenue Truck Route to
           the construction contract with Ramex Construction Comp any,
           Houston, Texas, for the Santa Maria Avenue Drainage
           Improvements between Del Mar Boulevard and Markley Lane. The
           original construction contract was $1,993,475.00.  This change
           order brings the total contract amount to $1,993,359.36.
           Funding is available i n the Drainage and Community
           Development Santa Maria Drainage Project.

           Motion to approve.

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

      38.  Approval of change order no. 3, a net decrease of $49,652.00,
           for the balance of quantities actually constructed in place,
           acceptance of the Montgomery -  India Drainage Improvements
           Project, and approval of final payment in the amount of
           $62,005.28 to McLean Construction Company, Inc., Killeen,
           Texas. The original construction contract was $485,726.05.
           This change order brings the total contract amount to
           $427,438.30.  Funding is available in the Capital Improvement
           Fund Montgomery - India Drain age Project.

           Motion to approve.

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

      39.  Approval of change order no. 3, a decrease of $5,728.00, for
           the balance of quantities actu ally constructed in place,
           acceptance of San Salvador/Pine/Chestnut Drainage
           Improvements, and approval of final payment in the amount of
           $78,032.48 to Ramex Construction Company, Inc., Houston,
           Texas. The ori ginal construction contract was $908,136.00.
           Th is change order brings the total contract amount to
           $908,248.50.  Funding is available in the Drainage and
           Community Development San Salvador/Pine/Chestnut Drainage
           Project.

           Motion to approve.

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

      40.  Acceptance of the Re-Roofing of the Center for the Arts
           Building Project located at 500 San Agustin Ave nue, Old
           Mercado Historic District and approval of final payment in the
           amount of $15,914.65 to American Contracting Corporation,
           Laredo, Texas.  Funding is available in the Capital
           Improvement Fund Re-Roofing Center for the Arts Building.

           Motion to approve.

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

      41.  Authorizing the selection of a consultant and enter negotia-
           tions for the Paseo Del Antiguo Laredo Pedestrian Facility
           Project, an ISTEA enhancement project.  The consultant
           recommended for the project is Sprinkle Robey Architects.
           Funding is available f rom a grant in the amount of
           $1,076,158.00 and a $269,040.00 match is available from CDBG
           monies.

           Motion to approve.

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

      42.  Authorizing the City Manager to extend a professional services
           contracts for one year with the providers listed below to
           provide pharmaceuticals/home health care to AIDS clients of
           the City of Laredo Health Department.

           HIV/AIDS      HOME CARE OF TEXAS  $26,520.00  4/1/98 -3/31/99
           HIV/AIDS      J&A PHARMACY        $77,900.00  4/1/98 -3/31/99
           Funding is available in account #226-6081.

           Motion to approve.

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

      43.  Authorizing the City Manager to renew a professional services
           contract for with Dr. Winder Vasquez to pr ovide physician
           coverage to clients of the Tubeculosis Elimination Program of
           the City of Laredo Healt h Department for the period beginning
           April 1, 1998 through August 31, 1999.  Funding is available
           in accounts #226-6067-543.

           Motion to approve.

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

      44.  Authorizing the City Manager to renew the annual maintenance
           agreement in the amount of $14,311.05 from HumanSoft (formerly
           Q.S. Incorporated) of Greenville, South Carolina, for the
           period beginning April 1, 1998, through March 31, 1999, for
           the maintenance of the software that was specifically written
           for local health departments and installed at the City of
           Laredo Health Department in 1992.  Funding is available in
           account #226-6062.

           Motion to approve.

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


      45.  Authorizing the City Manager to submit a grant application to
           the Texas Department of Health for continuation of the School
           Based Health Program of the City of Laredo Health Department.

           Motion to approve.

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

      46.  Refunds of property taxes to the following company:
           Walmart Properties, Inc. in the amounts of :
                    a. $ 7,537.83
                    b. $ 6,570.18
                    c. $10,199.84
                    d. $11,416.58
           Wal-Mart Properties, Inc. appealed the valued placed by the
           Webb County Appraisal District on four different parcels.  The
           Appraisal Review Board denied the appeal and Wal-Mart filed a
           lawsuit in the District Court . There was an agreed judgment
           between Wal-Mart and the WCAD which lowered the values.  These
           refunds are for the difference between the original taxes and
           new taxes reflecting the court ordered values.

           Motion to approve.

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

      47.  Appointment of Mayor Pro-Tem as per Ordinance No. 90-O-101
           which provides for the Office of Mayor Protem, the term of
           such office, the role of such office, and who shall preside in
           the absence of Mayor and Mayor Protem.

           Cm. Casso nominated Cm. Bruni to act as Mayor Pro-Tem.

           Motion to approve.

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

           Cm. Casso was excused at 6:40 p.m.

  IX.  CITY MANAGER'S REPORT

      48.  Consideration to reschedule the Monday, May 25, 1998 regularly
           scheduled City Council Meeting to Tuesday, May 26, 1998 due to
           the May 25, 1998 Memorial Day Holiday.

           Motion to cancel and move meeting to Monday, June 1, 1998.

           Moved : Cw. Moreno
           Second: Cw. Montalvo
           For:  6                  Against: 0          Abstain: 0

      49.  Presentation of the Community Development Block Grant
           allocation for the 24th Action Year Community Development
           Block Grant $4,274,000.00, 1998 HOME Investment Partnerships
           Program $1,257,000.00 and 1998 Emergency Shelter Grant
           $167,000.00 for a total amount of $5,698,000.00 in support of
           the preparation and submission of the 1998 Consolidated Plan
           to the U.S. Department of Housing and Urban Development (HUD).

           Cindy Collazo, Community Development Director, stated that at
           a public hearing back in April 27, 1998 her department
           requested Council's view and comments on proposed allocation
           of CDBG, ESG, and HOME.  Since then her department has been
           back for Council's consideration of the different activities
           and projects.  Mrs. Collazo further stated that Project 61
           Street Improvements was initially at $980,000, reduced to
           $703,000, based on Council's input, leaving that project at
           $277,000.

           The following changes were requested by City Council:

           CDBG Sidewalk Approach-District IV          $  150,000
           Raquel Gonzalez Park Acquisition               200,000
           East Hachar Recreation Center                  700,000
           Hamilton Hotel-Section 108 Loan                148,000
           Tinaja-Chacon Pilot Channel                    410,000
           Graffiti Removal Program                        28,359
           Housing Rehab Program                          350,000
           Lafayette Widening Program                     675,000
           Zacate Creek Linear Park                       200,000
           Blaine/Milmo/Loop 20 Improvements               90,000
           Clark/Hendricks Street Improvements             45,862

           Rehab Housing Adminstration                    128,000
           Administration                                 620,533
           Code Enforcement                               251,050

           Total                                       $4,274,000

           Grand Amount                                $4,274,000

           Mrs. Collazo continued with her presentation of Project 61,
           stating that the project was originally set at pavement of 37
           blocks but wound up with 39.  Phase I with 19 blocks and Phase
           II with 20 blocks.  Phase I would take $387,635 including
           grants for paving and storm drainage only, not including water
           and sewage.  She further stated that if Council wished to
           proceed with the estimate as it appeared at $277,000, she
           would then request that the project be cut in half to have
           enough funds, unless other monies are allocated for this
           project.

           There was citizen participation on the HOME Program and
           basically what is requested is down payment assistance.  On
           this program 15% is set aside (a statutory requirement) for
           Community Development Organizations, so it is $188,550.
           New construction was set at $345,997; down payment assistance
           for Concord Hills, $600,000; and administration at $122,453.

           The Emergency Shelter Grant Program with a grant amount of
           $167,000.  A 30% cap on the Homeless Prevention Program is
           $47,595.  This program is to prevent homelessness, including
           payment of rents and/or mortgages and utilities provided to
           individuals and families who have received eviction notices.
           The Homeless Shelter Program for rehabilitation, renovation,
           or conversion of buildings for use as emergency shelters for
           the homeless is $111,055.  With a 5% cap for administration of
           the grant is $8,350.

           Both programs will be advertised to request proposals from the
           general public.

           Mayor Pro-Tem Perez stated that he had been approached by
           United I.S.D. Board Members who expressed interest in a
           partnership with the City of Laredo to construct a
           recreational center in the Sierra Vista area; therefore, he
           was requesting that $410,000 of the Tinaja-Chacon Pilot
           Channel Project be used for this construction.  Should the
           partnership not be in place by budget time the monies would
           then be placed back into the drainage project.

           Cw. Montalvo expressed concern as to what would happen to the
           drainage project.  Mayor Pro-Tem Perez explained that since
           the project consisted of two phases that it would take at
           least two years for completion so he could not see it being
           affected.

           Cw. Moreno stated that this money was appropriated by Council
           to do the drainage project and that she did not agree with
           Mayor Pro-Tem Perez in taking these monies to fund other
           projects.

           Motion to accept the allocations as presented.

           Moved : Cw. Moreno
           Second: Cm. Alvarado
           For:  4                  Against: 2          Abstain: 0
                                    Cw. Montalvo
                                    Cm. Perez

      50.  Presentation regarding the activities and services at the New
           Main Library with discussion and possible action to increase
           staff.

           Janice Weber, Public Library Director, stated that the public
           turn out at the library has exceeded the expectations but due
           to the limited amount of staff people are having to stand in
           line to be serviced.  This has caused a number of complains
           from both staff and the general public; therefore, she is
           requesting that Council approve the increase of staff by 11.
           Seven of these would be placed in public service; two in
           technical service; one custodian; and one would remain at
           branch.  This additional staff would help on weekends,
           evenings, and during the peak hours.

           Motion to approve increase.

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

      51.  Request for Executive Session pursuant to Texas Government
           Code Section 551.071(1)(a) to dis cuss pending litigation
           regarding Hurd Urban Development, L.C.  et.al. v.  Federal
           Highway Administration, et. al., Cause No. A-98-CA-204-JN, in
           the U.S. District Court, Western District of Texas, Austin
           Division, and return to open session for possible action
           thereon.

           Motion to go into executive session pursuant to Texas Code
           Section 551.071(1)(a) to discuss pending litigation regarding
           Hurd Urban Development, L.C. et.al. v. Federal Highway
           Administration,et.al. Cause No. A-98-CA-204-JN, in the U.S.
           District Court, Western District of Texas, Austin, Division.

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

           After executive session Mayor Pro-Tem Perez announced that no
           formal action was taken.

      52.  Presentation on the Laredo Bridge System's toll collection
           upgrade options, selection of an option, approval to proceed
           on the selected option, and authority to increase the project
           funding from $767,678, which is available through the toll
           equipment and related infrastructure account from a state
           infrastructure bank loan to an additional $7,000,000, attained
           through the sale of bridge system revenue bonds.

           Florencio Pena, City Manager gave a brief explanation stating
           that the new system would:
                -ensure safety
                -improve accountability
                -facilitate the movement of traffic
                -ensure customer convenience
                -protect and improve the city's position as the "Gateway
                 to Mexico".

           Mr. Pena then requested that Rafael Garcia, Bridge Manager,
           make his presentation to Council.  Mr. Garcia stated that
           Council should consider three critical components in choosing
           an option:



                -upgrading of in-lane equipment
                -centralized communication computer system connecting all
                 bridges
                -weigh-in motion system

           OPTION I       Weigh-in Motion with AVI

           Bridge I       Upgrade all in-lane equipment

           Bridge II      Upgrade all in-lane equipment
                          Two electronic collection systems

           Bridge III     Upgrade all in-lane equipment
                          Five weigh-in motion scales
                          Five electronic collection system with AVI

           Bridge IV      Eight state of the art in-lane equipment
                          Eight weigh in-motion scales
                          Eight electronic collection system

                          Two spare in-lane motion scales
                          Two spare electronic collection systems

           A centralized communication computer system between all
           bridges.

           Sub-Total                                     $5,320,000

           Marketing of the electronic collection system    200,000
           Purchase of 50,000 transponders                1,500,000

           Grand Total                                   $7,020,000

           OPTION II      Static Weighing with AVI

           With this system a truck must stop to be weighed.

           Bridge I       Upgrade all in-lane equipment

           Bridge II      Upgrade all in-ane equipment
                          Two electronic collection systems (AVIs)

           Bridge III     Upgrade all in-lane equipment
                          Five electronic collection system (AVIs)
                          One existing static scale

           Bridge IV      Eight state of the art in-lane equipment
                          Eight static scales
                          Eight electronic collection system

           Sub-Total                                     $5,955,000

           Marketing of the eletronic collection system     200,000
           Purchase of 50,000 transponders                1,500,000

           Grand Total                                   $7,655,000


           Option III     Static Weighing Only with AVIs

           Bridge I       Upgrade all in-lane equipment

           Bridge II      Upgrade all in-lane equipment

           Bridge III     Upgrade all in-lane equipment
                          Remain with one existing static scale

           Bridge IV      Upgrade all in-lane equipment
                          Eight state of the art in-lane equipment
                          Eight static scales

           Sub-Total                                     $5,105,000

           Grand Total                                   $5,105,000

           Staff is recommending the selection and approval to proceed
           with Option I, and the authority to increase project funding
           from $767,678 to an additional $7 million.

           Motion to approve Option I.

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

      53.  Authorizing the City Manager to request proposals from
           qualified consultants for professional services in the prepa-
           ration of an application to the U.S. Department of Housing and
           Urban Development (HUD), for Round II Designation of an Urban
           Empowerment Zone (EZ), as published on April 6, 1998, Federal
           Register under "Notice Inviting Applications" Docket No. FR-
           4353-N-01 .  Currently, there is no authorization of grant
           funds, nevertheless, HUD anticipates that funding will become
           available in Fiscal Year 1999.  The deadline for submission
           of an application is October 9, 1998.  Funding for this
           project is available in the Community Development Block Grant
           Fund.

           Cindy Collazo, Community Development Director, stated that
           this is Round II of the Empowerment Zone.  At this point, they
           are looking at funding 15 enterprises and 5 as rural.  This is
           a $100,000,000 award, at a rate of $10,000,000 for ten years.

           Eligibility criteria for these empowerment zones are:

                -must be an urban area, not to exceed 20 square miles in
                 total land.
                -must have a continuous boundary or consist of not more
                 than three non-continguous parcels which means a poverty
                 rate of not less than 25% for 90% of the census track.
                -poverty rate for at least 50% of the census track must
                 be at 35%.
                -population must be at least 50, but not more than
                 200,000.
                -area must be one of persuasive poverty, unemployment and
                 general distress. Area is located within the
                 jurisdiction of the unit or units of general local
                 government.  Cannot be the central business district
                 unless the poverty rate is 35% of each track.

           Motion to approve.

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

   X.  COMMUNICATIONS

       None.

  XI.  CITY COUNCIL PRESENTATION AND DISCUSSION

      54.  Requests by Mayor and City Council members for presentation
           and discussion.

           A.  Requests by Council member Louis H. Bruni

           1.  Status report on the PUBLIC HEALTH ALERT issued by the
               Texas Natural Resource Conservation Committee (TNRCC) and
               the Texas Department of Health (TDH), with possible
               action.

               Cm. Bruni expressed concern regarding the haze brought
               about from the fires in Mexico.  He requested to know from
               staff what could be done to alleviate this problem.

               Jerry Robinson, Health Department Director, had two news
               releases passed out to Council and City Manager.  These
               news releases came from TNRCC and appeared in the
               newspaper on Sunday, May 17 and Monday, May 18, 1998,
               where the public is being advised that the haze causes
               nasal passage and throat irritation but not an alarming
               situation.  People are being asked to stay indoors, if
               possible.  It is also advised that caution should be taken
               with the elderly and young children.  It is further noted
               that Governor Bush has made an offer to provide Mexico
               with consultants and experts to assist them in the process
               of putting out these fires.

               Mr. Robinson requested Council permission to introduce
               Mr. Jorge Pachelis the new regional director of the Texas
               Natural Resource Conservation Commission that is housed in
               Laredo.  Mr. Pachelis explained that increases and
               decreases on the level of haze has to do with the shift of
               winds.

               He further explained that monitors in Brownsville,
               Houston, Corpus Christi and Houston indicated until Sunday
               that the level of haze had decresed significantly due to
               the wind moving to the gulf.  Mr. Pachelis concurred with
               Mr. Robinson on the information that he presented to
               Council.


           2.  Status report on all retention/detention ponds being
               constructed in District 2, with possible action.

               Cm. Bruni referred to ordinances M96-R-16 dated June 20,
               1996; M97-R-01 dated January 16, 1997; and M97-R-06 dated
               February 18, 1997.  These were motions made and approved
               by Council.  Wants to know if retention/detention ponds
               being built in District II are adhering to these motions.

               Cm. Bruni further stated that he had requested information
               from staff as to when these ponds were being built.

               Motion:  Request that staff review these ordinances, do
               necessary in-house work and report to Council at next
               scheduled City Council meeting.

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


           3.  Status report on the paving of the 3300 block of Lane
               Street, with possible action.

               Cm. Bruni referred to a petition signed by 16 people who
               live in this area and are requesting that it be paved.  He
               further stated that there was property in that area that
               was infringing on the right-of-way and requested that
               staff look into finding the owners to buy or to have it
               condemned.

               Rogelio Rivera, City Engineer, stated that 40.6 feet were
               part of the land grant that is the right-of-way and is
               part of the Chacon addition.  Adding that it is privately
               owned and he would proceed to find owners for possible
               donation or purchase of the property.

               Cm. Bruni requested that this area be paved regardless of
               how many feet are included as long as it be done along the
               row of houses that are situated there.  Further asking
               that staff come back with a report concerning this issue.

           4.  Status report on the absence of stop signs on Mier Street
               from the 2800 block to the dead end.

               Cm. Bruni stated that he had a number of residents calling
               to complain about motorists speeding from Arkansas east-
               ward on Mier due to not having any traffic signs.  He
               asked staff for any suggestions to alleviate this problem.

               Luis Landin, Traffic/Bridge Director, advised Cm. Bruni
               that he had personally visited the area and there were now
               a dead end sign on the corner of Roosevelt Street (one
               block before dead end) and few 30 m.p.h. signs that have
               been put up to help minimize speeding.

           B.  Requests by Council member Cecilia May Moreno.

           1.  Discussion and possible action to have the following
               streets added to the resurfacing project:
                   2200 - 2500 Block of San Jorge
                   2200 - 2500 Blocks of San Enrique
                   2200 - 2500 Blocks of San Leonardo

               Motion to add these to the next recycling project.

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

           2.  Consideration and possible action regarding controlling
               traffic speed on Malinche Street from Lyon to Clark by
               constructing curbs and installation of stop signs.

               Roberto Murillo, Traffic Engineer, advised Council of
               having included, for their review, a copy of a study that
               was conducted on these streets.  The study gave the volume
               of traffic at Malinche, Price, Kearney and Stewart.  The
               volume did not reflect the need for a four way stop being
               that the amount of traffic has to be equal on all four
               sides.  The study also gave an average speed of 33 to 35%,
               using the 85 percentile.  Furthermore, his department
               plans to put up a Stop Sign Ahead sign to help alleviate
               the problem.  He added that they have also put up larger
               stop signs and have trimmed shrubs and some branches that
               we felt were obstructing the view.

               Cw. Moreno requested to know what the status was on the
               low curbs.

               Rogelio Rivera, City Engineer, presented to Council, also
               as part of the study, a cost estimate to replace low-back
               with high-back curbs.  This would be a retrofit job of
               $193,000 to do all blocks.  Do removal and replacement of
               curb and gutter on all sidewalk areas and driveways.  The
               other alternative would be to do a stand up curb.

               Motion to present to Council a cost estimate on a stand up
               curb at the next budget meeting.

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

           C.  Requests by Council member Eliseo Valdez

           1.  Presentation by Gerald Schwebel and David Puig regarding
               economic development strategy.

               Gerald Schwebel with the Laredo Economic Develoment
               Foundation made reference to the first presentation of an
               incentive package where he sought endorsement and approval
               from Council.  He further stated that this same package
               was presented to Webb County Commissioners and also sought
               their endorsement and approval.

               The Economic Development Foundation has begun the next
               phase of the development plan to include a series of
               presentations and looking at developing a public forum.
               The objective is to inform Laredo citizens of the
               alternatives of financing or funding our economic
               development programs.

               One of the alternatives is the concept of economic
               development sales tax but there has been a lot of debate
               about this issue.  The most critical part of this is the
               public input so we think that the city's town hall
               meetings would be a good mechanism to share this informa-
               tion with the public.

           2.  Status report on the initial request for a traffic study
               at the intersection of St. James and Calle Del Norte.
               (Co-sponsored by Joe A. Guerra)

               Roberto Murillo, Traffic Engineer, reported that his
               department had taken a count but still had other studies
               pending.  He further stated that he would bring to Council
               his complete report with a recomendation within the next
               two weeks.

           D.  Requests by Council member Joe A. Guerra.

           1.  Presentation by Robert P. Gutierrez regarding increasing
               the City's downpayment assistance program to $9,000.00,
               with possible action.

               Robert P. Gutierez with Armadillo Construction requested
               that the current down payment assistance program of $5,000
               be modified to $9,000.  He further explained that due to
               public awareness and changing qualifying ratios that FHA
               has come up with, it is becoming difficult to qualify
               people and that 10 to 12 families are being turned down on
               a weekly basis.

               Mr. Gutierrez added that he had visited with staff and
               that they agree with his recommendation.  That this
               modification be implemented immediately and continue to
               work with it for four months.  Should the program work
               well, continue with it in 1999 and come up with some
               monies to continue the program.  Staff suggested to set
               price caps and set minimum home sizes.

               Cindy Collazo, Community Development Director, stated that
               there was no problem with amending the down payment assis-
               tance program, but asked that Council consider community
               development setting parameters and make sure that houses
               are not any smaller.

               Motion to instruct staff to come back with all the details
               at our next meeting.

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

           2.  Status report regarding reconstruction of Calton Road at
               Yeary.

               Larry Dovlina, Assistant City Manager, stated that he had
               visited with the attorney and had gotten the documents
               which need some grammatical corrections and name changes
               that will be done by the city attorney.

               Cindy Collazo, Community Develpment Director, reported
               that she is in contact with Eric Modey of H.E.B. and have
               advised him that we have acquired some of the right-of-way
               but need to work at getting another parcel.  The settle-
               ment agreement is in place but has not been executed
               because H.E.B. wants to make sure that the funding that
               they will provide is in place.  They will get back with a
               report within the next two weeks.

               Florencio Pena, City Manager, assured Council that he
               would have a status report on this issue at every meeting
               at every month.

               Cm. Valdez requested to have staff look into last year's
               minutes to see if the reconstruction of Calton Road
               included the intersection of Springfield being that a lot
               of heavy truck traffic has damamged this area.

           3.  Request for a traffic study at the intersection of Fenwick
               Drive and McPherson Road.

               Luis Landin, Traffic/Bridge Director, reported that a
               study was being conducted to take a traffic count to see
               if a traffic signal is warranted.  A full report will be
               presented to Council at the next or following council
               meeting.

           4.  Traffic signal light, Encino and Mann Road or Northgate
               Lane and Mann Road.

               Roberto Murillo, Traffic Engineer, stated that a count and
               a delay study during the peak hour was conducted and based
               on the information gathered a traffic light was not
               warrated for this area.  He further reported that the
               study on Northgate Lane was not ready but that it would be
               within the next two weeks.

               Cm. Guerra requested that he get a written report on this
               findings so that he may be able to provide it to the
               people that requested a traffic light for this area.

           E.  Requests by Council member Mario G. Alvarado.

           1.  Staff update on the Santa Maria Drainage Project, with
               possible action.

               Florencio Pena, City Manager, reported that they had met
               with Santa Maria property owners and expressed two areas
               of concern:
                     -construction with the drainage project which is
                      being completed this month.
                     -the initiation of the reconstruction of Santa Maria
                      which will begin in the next few months and will be
                      an 8 month project.

               Rogelio Rivera, City Engineer, stated that with the 20 day
               addition of construction that this contract will be
               finished by July 14, 1998.  At the end of the contract,
               the city will have saved about $100,000 on the drainage.
               On the reconstruction project we have the consultant
               working on about 20 parcels of land that we need for the
               construction of the the sidewalks, those surveys will be
               done by target date of May 22.

               Oscar Medina, Assistant Director of Public Works, stated
               that his department had done some repair work on some of
               the intersections on Saturday, May 16.  They had also
               worked on the utility cuts in front of the theatre and the
               truck stop and plan to be back this coming Saturday to do
               more smoothing out.  Further stating that they are working
               together with waste water to reconstruct and properly
               grade the man hole that was reported.

           2.  Recognition of school staff and students who were cited
               for their special achievements.

               Farias Elementary
               Professional - Jose Santacruz
               Paraprofessional - Antonia Mendoza
               Student - Mario Rodriguez
               Parent - Rosario Gutierrez

               Leyendecker Elementary
               Professional - Veronica Noyola
               Paraprofessional - Sylvia Ortiz
               Student - Zandra Charles
               Parent - Meli Garza
               Apple Award - San Juanita Casso

               Santa Maria Elementary
               Professional - Maricela Garcia
               Paraprofessional - Sylvia Tovar
               Student - Jesus Morales
               Parent - Delia Chapa
               Apple Award - Olinda Schwebel

               Christen Middle School
               Professional - Mario Alberto Rodriguez
               Paraprofessional - Ovidio Vargas
               Student - Larry Miller
               Parent - Berta Casso

               Martin High School
               Professional - Maggie Martinez
               Paraprofessional - Jose Moreno
               Student - Brenda Anderson
               Parent - Olivia Guajardo

XII. PUBLIC HEARINGS

      55.  Public hearing amending the City of Laredo's 1997-1998 Annual
           Budget in the amount of $13,000.00 for a grant from Central
           Power & Light Company, providing for effective date.

           Motion to open public hearing.

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

           No public input.

           Motion to close public hearing and introduce the ordinance.

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

                       Introduction of an Ordinance
           Ordinance amending the City of Laredo's 1997-1998 Annual
           Budget in the amount of $13,00 0.00 for a grant from Central
           Power & Light Company, providing for effective date.

           Ordinance Introduction: City Council

      56.  Public hearing amending the City of Laredo's 1997-1998 by
           increasing estimated revenues and appropriations in the
           Benavides-Herrera home fund by $250,000 and authorizing the
           City Manager to implement said budget, providing for publi-
           cation and effective date.

           Motion to open public hearing.

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

           No public input.

           Motion to close public hearing and introduce the ordinance.

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

                       Introduction of an Ordinance
           Ordinance amending the City of Laredo's 1997-1998 by
           increasing estimated revenues and appropriations in the
           Benavides-Herrera home fund by $250,000 and authorizing the
           City Manager to implement said budget.

           Ordinance Introduction: Cw. Montalvo

      57.  Public hearing amending the contract with the Texas Department
           of Health and budget revision in the amount of $514,500.00 in
           additional funds for a new total of $2,161,807.00 for the
           Women, Infants, and Children (WIC) Program of the City of
           Laredo Health Department for the period beginning October 1,
           1997, through September 30, 1998.

           Motion to open the public hearing.

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

           No public input.

           Motion to close public hearing and introduce the ordinance.

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

                      Introduction of an Ordinance
           Ordinance amending the contract with the Texas Department of
           Health and budget revision in the amount of $514,500.00 in
           additional funds for a new total of $2,161,807.00 for the
           Women, Infants, and Children (WIC) Program of the City of
           Laredo He alth Department for the period beginning October 1,
           1997, through September 30, 1998.

           Ordinance Introduction: City Council

 III.  MOTION TO RECESS AND CONVENE AS THE LAREDO MUNICIPAL HOUSING
       CORPORATION

       Motion to recess and convene as the Laredo Municipal Housing
       Corporation.

       Moved : Cw. Montalvo
       Second: Cw. Moreno
       For:  6                      Against:  0         Abstain:  0

      58.  Authorization to terminate the construction agreement with
           Mr. Virgilio Diaz dba E.Q. Construction to provide the cabinet
           work for the homes under the Lease/Purchase Program and
           request to award a contract in the amount of $70,088.64 to the
           second lowest bidder, Home Art of Laredo, Texas.  Mr. Vigilio
           Diaz dba E.Q. Construction, lowest bidder, has requested to
           terminate the agreement to provide the cabinets for the homes
           under the Lease/Purchase Program.  The original bid from Home
           Art was $73,009.00, however, LMHC is requesting that Home Art
           install cabinets in 48 houses only.  E.Q. Construction has
           already installed cabinets in the first 2 homes of construc-
           tion Phase 1.  The second lowest bid is still within budget
           and will provide an affordable pric e for the homes being
           built.

           Motion to approve.

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

      59.  Approval of change order no. 2, an increase of $19,500.00 to
           the construction contract with J.M. General Co nstruction of
           Laredo, Texas to provide labor and materials for the
           installation of 3 ceiling fans on each of the fifty (50)
           houses being built at the Riverhills Subdivision, Unit 1,
           under the Lease/Purchase Program.  The original plans and
           specifications do not include ceiling fans for the 50
           affordable homes under the Lease/Purchase Program.  The cost
           to provide and install the 3 ceiling fans in each house is
           $390.00. The total construction cost for each house will
           remain affordable to the future home owners.  The change order
           increases the total contract amount from $109,848.50 to
           $129,348.50.

           Motion to spprove.

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

      60.  Approval of change order number 3, an increase of $18,350 .00
           to the construction contract with Mario Gonzalez dba MG
           Builders of Laredo, Texas to provide the labor and materials
           for the installation of side walks for all fifty lots at the
           Riverhills Subdivision, Unit 1, under the Lease/Purchase
           Program.  The cost of th is change order will not affect the
           future homeowners monthly payment. The sidewalks are necessary
           and needed to comply with the Laredo Land Development Code.
           The original contract amount was $375,030.00. Th is change
           order brings the total contract am ount to $393,380.00.

           Motion to approve.

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

           Motion to adjourn as The Laredo Municipal Housing Corporation.

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

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

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

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

      61.  Award of contract to the LOW BIDDER, Carl Turner Equipment,
           San Antonio, Texas, in the amount of $28 ,465.50, for the
           purchase of one heavy duty brake drum and disk lathe.  The
           brake lathe will allow the Maintenance Division to reuse the
           brake drums instea d of purchasing new brake drums every six
           months.  Delivery is expected within three weeks.

           Motion to approve.

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

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

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

  XV.  ADJOURNMENT

       Motion to adjourn.

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

      Adjournment time: 9:10 p.m.

      I hereby certify that the above minutes contained in pages 01 to 31
      are true, complete, and correct proceedings of the City Council
      Meeting held on the 18th of May, 1998.


                               _________________________
                                  Gustavo Guevara, Jr.
                                     City Secretary