CITY OF LAREDO
                          CITY COUNCIL MEETING
                                M98-R-23
                              JUNE 1, 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,             Councilmember, District I
      Louis H. Bruni,            Councilmember, District II
      Alfonso I. "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,            City Manager
      Jaime L. Flores,           City Attorney

      Motion to move up items #39, and 52 C(1), and C(3).

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

      Cm. Casso and Cw. Montalvo were not present at this time.

      Cw. Montalvo arrived at 5:40 p.m.

  IV. INTRODUCTORY ORDINANCES

      2.  Authorizing the City Manager to execute a lease with Laredo
          Independent School District for approximately 2,250 square
          feet constituting the southernmost portion of Building No. 574
          located at 5103 Foster Avenue.
          a.)  lease term is for one (1) year,
               commencing May 1, 1998, and ending April 30, 1999
          b.)  monthly rent shall be $540.23, previous monthly rent was
               $514.50; Premises are used for storage.
 
          Ordinance Introduction: City Council
 
      3.  Amending Ordinance No. 92-O-113 granting Southwestern Bell
          Telephone Company ( Telephone Company ) the non-exclusive
          right to use the rights-of-way in the City for its
          telecommunications business, by amending Section 4 to extend
          the franchise term for a period of sixty days from the date of
          expiration of May 30, 1998 until July 29, 1998; providing for
          publication and effective date.

          Ordinance Introduction: City Council

      4.  Amending Chapter 28 of the City of Laredo Code of Ordinances
          deleting the provisions for noncommercial solicitation
          permits; amending Chapter 21, offenses and miscellaneous
          provisions, thereby adding the following prohibitions against:
          aggressive solicitations including time, place, and manner
          restrictions, false or misleading solicitations and manner of
          street and highway solicitations; urinating or defecating in
          public; entering portions of public buildings without consent;
          entering motor vehicles without consent; public camping
          including a declaration that public camps are nuisances
          subject to abatement; providing for severability and an
          effective date.

          Cw. Moreno requested to know where this came from and why is
          it being done?

          Mr. Pena explained that the city was not being involved in
          endorsing the use of the public streets; therefore, becoming a
          liable situation.  What this ordinance is doing is eliminating
          the permit process but continue to enforce the safety as far
          as requiring the vests and traffic safety cones.

          Mayor Flores stated that she was requesting that Council
          consider her recommendation of having people register before
          the solicitation event as this will serve as a notification to
          know which organization will be at a certain intersection at a
          certain time.

          Cw. Moreno did not agree with the ordinance as it was being
          presented and requested some clarification.

          Motion to table the item and send it back to be reviewed.

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




          Ordinance Introduction:

      5.  Rescinding Ordinance No. 85-O-099, closing as a public
          easement that section of Texas Avenue between Guadalupe and
          Chihuahua Streets in the Eastern Division of the City of
          Laredo, Webb County, Texas; and Ordinance No. 85-O-108,
          authorizing the City Manager to execute all necessary
          documents to effectively convey title to said street section
          and hereby reopening the street as a public easement as the
          abutting property owners need to ingress and egress from this
          street and provide for an effective date.

          Ordinance Introduction: City Council

          Cm. Bruni requested that if Texas Avenue was to be reopened
          that the street be part of the paving project. Further stating
          that this street leads to an area that is used for parking of
          18 wheelers and junked cars.  He asked staff to ask whose
          property this was and if they were in violation of any code or
          ordinance.  If this were city or state property it should be
          barricaded.

          Motion to place Texas Avenue on the present paving project.

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

      6.  Closing as a public easement that section of Moreno Avenue
          between Garfield Street and the north right-of-way line of the
          Texas Mexican Railroad dedicated as a public easement as per
          the Moreno Addition map to the City of Laredo recorded in
          Volume 1, Page 80, Webb County Plat Records and upon closing
          of said street, the City will retain the entire property as a
          utility easement whereby the City will retain right to
          maintain, operate, repair or replace, by itself or by any
          licensee or a holder of a franchise from the City, any poles,
          wires, pipes, conducts, sewer mains or any utility needed in
          the street portion hereof closed as a public easement, and
          hereby approving the submitted Improvement Plan and that is in
          compliance with Section 10 of the Street Closing/Sales Policy
          Handbook as approved per Resolution No. 97-R-140; and
          providing for an effective date.

          Ordinance Introduction: City Council

      7.  An ordinance establishing guidelines and criteria governing
          tax abatements by the City of Laredo; providing for
          severability; providing for an effective date.

          Ordinance Introduction: City Council





          Cw. Moreno requested that the guidelines and criteria be
          amended to read as follows:

               They must contain the provision that companies shall
               pay employees wages at a minimum level which is equal
               to the U.S. minimum wage in effect at the time of
               agreement plus 2%, and companies shall provide employees
               with health benefits.

      8.  Authorizing the City Manager to accept and execute a 1996-1997
          Urbanized Area Formula Program Grant Amendment (No.TX-90-X406-
          03) from the Federal Transit Administration in the maximum
          amount of $4,700,312 and transferring $221,708 (Federal Share)
          from operations to Capital, providing for a local match of
          $55,427  from the Transit Sales Tax Proceeds Budget Reserve
          Account (Fund 518).

          Ordinance Introduction: City Council

      9.  Authorizing the City Manager to execute an amendment
          (increase) to the Laredo Municipal Transit Systems FY 1997-
          1998 Operating Budget (Revenue and Expenditures; Fund 558) in
          the amount of $6,400 to $7,043,895 from $7,037,495;
          transferring funds from the Transit Sales Tax Proceeds Budget
          Reserve Account (Fund 518).

          Ordinance Introduction: City Council

     10.  Authorizing the granting and conveyance of a 5 foot wide
          utility easement containing approximately 300 square feet,
          more or less out of the Alamo Street and Camp Avenue public
          right-of-way, situated in the Western Division of the City of
          Laredo, and authorizing the City Manager to execute all
          necessary documents of conveyance, in order to allow for the
          provision of underground electrical services to the new
          K.B.D.R./B-100 F.M.  - 1 radio station antenna tower located
          at 2810 Anna Avenue said 5 foot wide utility easement being
          more particularly described by metes and bounds.

          Ordinance Introduction: City Council


   V.    FINAL READINGS

         Motion to waive the final reading of ordinances 98-O-127,
         98-O-128, 98-O-129, 98-O-130, 98-O-131, 98-O-132, 98-O-133,
         98-O-134, 98-O-135, 98-O-136, and 98-O-137.

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

     11. 98-O-127 Authorizing the City Manager to execute a
                   Rental Car Agency Concession and Lease Agreement with
                   Southwest-Tex Leasing Co., Inc., d/b/a Advantage
                   Rent-A-Car for 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.  (City Council)

                   Motion to adopt Ordinance 98-O-127.

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

     12. 98-O-128  Authorizing the City Manager to execute a Rental Car
                   Agency Concession and Lease Agreement with Coastal
                   Bend Rent-A-Car, Inc., for the approximate 133 square
                   feet of office and counter space located in car
                   rental space #5, and for 19 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 $166.25 per month, plus $190.00 per
                        month for parking.  (City Council)

                   Motion to adopt Ordinance 98-O-128.

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

     13. 98-O-129  Authorizing the City Manager to execute a Rental Car
                   Agency 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 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 $190.00 per
                        month for parking.  (City Council)


                   Motion to adopt Ordinance 98-O-129.

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

     14. 98-O-130  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
                   171 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
                       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.  (City Council)

                   Motion to adopt Ordinance 98-O-130.

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

     15. 98-O-131  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 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
                        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.  (City Council)

                   Motion to adopt Ordinance 98-O-131.

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

     16. 98-O-132  Authorizing the City Manager to execute a lease with
                   Border Maintenance Service, Inc., for approximately
                   2,304 square feet constituting Building #1421 located
                   at 1817 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.
                        (City Council)

                   Motion to adopt Ordinance 98-O-132.

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

     17. 98-O-133  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 catering
                   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.
                        (City Council)

                   Motion to adopt Ordinance 98-O-133.

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

     18. 98-O-134  Authorizing the City Manager to execute all necessary
                   documents to effectively convey fee simple title to
                   W.E. Haynes, VI, for the sale of the Surface Only  at
                   its fair market value of certain City property
                   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
                   bound on the North by Block 1877, E.D.  and on the
                   South by Block 1878, E.D. situated in the Eastern
                   Division, City of Laredo, Webb County, Texas and
                   hereby approving the submitted improvement plan in
                   compliance with Section 10 of the Street
                   Closing/Sales Policy Handbook as approved per
                   Resolution No. 97-R-140; and providing for an
                   effective date.  (City Council)

                   Motion to adopt Ordinance 98-O-134.

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

     19. 98-O-135  Ordinance 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 an effective date.  (City Council)

                   Motion to adopt Ordinance 98-O-135.

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

     20. 98-O-136  Ordinance amending the City of Laredo s 1997-1998
                   annual budget by increasing estimated revenues and
                   appropriations in the Benavides-Herrera home fund by
                   $250,000.00, and authorizing the City Manager to
                   implement said budget. (As Amended) (Cw. Montalvo)

                   Motion to adopt Ordinance 98-O-136.

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

     21. 98-O-137  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 Health
                   Department for the period beginning October 1, 1997,
                   through September 30, 1998.  (City Council)

                   Motion to adopt Ordinance 98-O-137.

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


  VI.    RESOLUTIONS

     22. 98-R-075  Authorizing the City Manager to submit a grant
                   application to the governor s office for funding of
                   personnel and direct operating expenses for a multi-
                   agency narcotics task force in the amount of $830,135
                   with the City designating $423,985 in matching funds
                   for a total of $1,254,120 and authorizing the City
                   Manager to sign any and all documents pertaining to
                   this grant application.

                   Motion to adopt Resolution 98-R-075.

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

     23. 98-R-079  Supporting the designation by the Texas
                   Transportation Commission of the proposed realigned
                   approach roadway that begins at the International
                   Bridge No. 4 and extends to that portion of F.M.3464
                   located one thousand seven hundred forty nine feet
                   west of the west right of way line of Interstate
                   Highway 35, the portion of F.M. 3464 located one
                   thousand seven hundred forty nine feet west of the
                   west right of way line of Interstate Highway 35, and
                   extends east of Interstate Highway 35 for a distance
                   of two miles, as well, as all those sections of Loop
                   20, within the city limits from a point two miles
                   east of Interstate Highway 35, east and south through
                   the intersections of US Highway 59, State Highway
                   359, and Southwest to U.S. Highway 83, as Loop 20
                   (Bob Bullock Loop); and that the City of Laredo
                   agrees to annex the remaining 1.15. miles of existing
                   F.M. 3464 and maintain as a city street once the
                   approach roadway project is complete and the current
                   proposed alignment litigation is resolved.

                   Motion to adopt Resolution 98-R-079.

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

     24. 98-R-080  Accepting the donation of a 15.4600 acre tract of
                   land more or less, from Robert Muller Family
                   Partnership Ltd., d/b/a Robert Muller LTD., for the
                   construction of the Laredo Northwest International
                   Fourth Bridge.  Said tract of land being located in
                   Porcion 19, Abstract 47, Webb County, Texas; more
                   particularly described by metes and bounds.

                   Motion to adopt Resolution 98-R-080.

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

     25. 98-R-081  Accepting the donation of two tracts of land from
                   Fasken LTD., a Texas Limited Partnership, containing
                   173.641 acres, more or less.  Said tracts of land
                   being tract A , containing 74.03 acres, more or less,
                   for the purpose of constructing and operating an
                   international bridge and related facilities, and
                   tract B, containing 99.611 acres, more or less, for
                   the construction of an access road connecting the
                   International Bridge and related facilities to
                   Interstate Highway 35.  Said tracts being located in
                   Porcion 20, Abstract 48, Webb County, Texas; being
                   generally described below, and more particularly
                   described by metes and bounds.

                   Motion to adopt Resolution 98-R-081.



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

     26. 98-R-082  Authorizing the City Manager to enter into an
                   Interlocal Agreement between the City of Laredo and
                   Laredo Community College for the installation and
                   maintenance of a traffic signal at the new
                   intersection located at the main entrance to Laredo
                   Community College.  Laredo Community College will
                   furnish all the necessary traffic signal hardware
                   and the City will be responsible for its installation
                   and for performing routine maintenance.

                   Motion to adopt Resolution 98-R-082.

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

     27. 98-R-083  Resolution of the City Council of the City of Laredo,
                   Texas, stating that this City elects to become
                   eligible to participate in tax abatements; and
                   dealing with related matters.

                   Motion to adopt Resolution 98-R-083.

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


 VII.   MOTIONS

     28.  Approval of bid specifications and authorization to advertise
          for bids for the following:
          a) lubricants - Fleet Maintenance
          b) lawn maintenance annual contract - Utilities Department,
             Bridge, Parks, Police, Library Departments.
          c) purchase of trees and shrubs - Azteca Neighborhood Park

          Motion to approve.

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

     29.  Authorization to advertise for Request for Proposals (RFPs)
          for consulting engineering services to prepare a feasibility
          report to locate and Evaluate Future Groundwater Supplies to
          be developed for long term municipal use.  Funding is
          available in the Waterworks Water Availability - Water
          Availability Study.



          Motion to approve.

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

     30.  Authorizing the City Manager to seek Request for Proposals for
          architectural plans and design for the expansion of the Santo
          Nino Health Center which is occupied  by the Women, Infants,
          and Children (WIC) Program of the City of Laredo Health
          Department.

          Motion to approve.

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

     31.  Award of a twelve month office supply contract to the LOW
          BIDDER, Executive Office Supply, Laredo, Texas, providing
          general office supplies for all city departments.  This
          contract is based on the lowest cost plus percentage. The City
          will maintain the price schedule for the general office
          supplies listed on the vendor's catalogue. This is the first
          time this contract has been awarded based on a cost plus
          format.

          Motion to approve.

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

     32.  Award of a contract to the LOW BIDDER,  Gateway Uniform
          Service, Laredo, Texas in the estimated amount of $74,550.15,
          for the purchase of uniforms for the Police and Fire
          Department personnel.  Full service contracts, which include
          alteration services, will be awarded to the low bidder.  The
          City has included delivery deadlines in the contract documents
          requiring that the clothing be delivered within forty five
          days after receipt of order. The overall contract pricing is
          approximately 1% higher than the previous year. A total of
          three bids were received for this purchase.  Funding is
          available in Police Department Uniforms, Fire Department
          Uniforms, and Bridge System Uniforms accounts.

          Motion to approve.

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

     33.  Award of a contract to the LOW BIDDER MEETING SPECIFICATIONS,
          Dinastia International Corporation, Laredo, Texas, in the
          amount of $35,437.37, for the purchase of one network server,
          twenty four computer workstations, HUBs, and software. This
          equipment will be installed at the DEA offices -Financial Task
          Force.  A total of fifteen bids were received for this
          purchase.  Funding is available from Southwest Border High
          Intensity Drug Trafficking Area (SWB HIDTA) grant monies.

          Motion to approve.

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

     34.  Award of a construction contract to the Lowest Bidder, Price
          Construction Inc., in the amount of $398,725.24 for the
          widening of Bustamante Street between Meadow Avenue to Foster
          and the widening of Meadow Avenue between Saunders Street to
          Bustamante Street. This project is part of an EDA Grant
          Project No. 08-01-3080 Airport Medical Infrastructure
          Improvements.  Funding is available in the EDA Airport/Medical
          Park Improvements Other Than Building account.

          Motion to approve.

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

     35.  Authorizing the City Manager to submit a grant application in
          the amount of $41,500.00, to the Texas Department of Health
          for continuation of the Breast and Cervical Cancer Control
          Program (BCCCP) of the City of Laredo Health Department.

          Motion to approve.

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

     36.  To appoint a member to the Webb County Appraisal District
          Purchase or Build Facility Building Committee.  A feasibility
          study for the building and/or construction of a facility will
          be conducted.

          Motion to confirm the appointment of Cm. Bruni and Cm. Valdez.

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

     37.  Approval of a contract with Southwestern Bell in the amount of
          $67,221.74 for telecommunication network wiring - City Hall
          Building.  Funds are available for this project.






          Motion to approve.

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


VIII.   CITY MANAGER'S REPORT

     38.  Authorizing the City Manager to advertise a request for
          proposals for land acquisition of approximately 50 to 70 acres
          of land within 8 miles of the City Limits for the site
          of the Fire Training Facility.

          Motion to modify bid specifications from acquisition to lease
          or lease to purchase and within 15 miles of the City Limits.

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

     39.  Presentation by E. Walker, from Wilbur Smith and Associates
          regarding the City's award by the International Public Parking
          Institute for innovative design of the City's Transit Center.

          Mr. E. L. Walker, Jr. representing the firm of Wilbur Smith &
          Associates consultant engineers from Houston wished to present
          Mayor Flores with a 1998 Award of Merit from the International
          Parking Institute received in Seattle, Washington on May 25th
          at the Washington State Convention and Trade Center.  He
          requested that Gilbert Segovia make the presentation to the
          mayor.

          Mr. Walker further stated that he wanted to acknowledge the
          design team, contractors, and city staff for making all of
          this possible.

          Mayor Flores thanked Mr. Walker on behalf of the City of
          Laredo and also acknowledged Amador Escudero who was part of
          the planning committee and is no longer with us.

     40.  Status report on the Extension of Bartlett Avenue from
          Hillside Road to the Del Mar Boulevard Project, approximately
          16,500 L.F. with possible action.

          Florencio Pena, City Manager, requested that this item be de-
          ferred until the Zacate Creek water shed drainage project is
          complete.

          Keith Selman, Planning & Zoning Director, concurred with Mr.
          Pena.

     41.  Authorizing the City Manager to enter into an Agreement
          between the City of Laredo and Miller and Van Eaton, P.L.L.C.,
          Attorney's at Law, to represent the City of Laredo in
          Southwestern Bell Telephone Company v. City of Laredo, Cause
          Number: CA-L-98-47, in the United States District Court for
          the Southern District of Texas Laredo Division.

          Motion to approve.

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

          Cm. Casso joined the meeting at this time, 6:35 p.m.

     42.  Report by the City's Economic Advisory Council advising of
          Town Hall meetings for the purpose of soliciting input from
          the community regarding the proposed Section 4B Sales and Use
          Tax Special Election to be held within the City on August 8,
          1998.  The proposed Section 4B Sales and Use Tax would create
          a Development Corporation to undertake economic development
          projects to create jobs and improve the quality of life in
          Laredo, Texas.  A one-fourth cent (1/4 cent) Sales and Use Tax
          is proposed.

          The Town Hall meetings are scheduled as follows:

          Wednesday, June 3,  1998 at 6:00 P.M. at Cigarroa Recreation
                                                  Center, 2201 Zacatecas
          Thursday,  June 4,  1998 at 6:00 P.M. at Northeast Recreation
                                                   Center, 320 Wyoming
          Tuesday,   June 9,  1998 at 6:00 P.M. at Tarver Recreation
                                                   Center, 2902 Tilden
          Thursday,  June 11, 1998 at 6:00 P.M. at Farias Recreation
                                                   Center, 1601 Farias

          Motion to move up item 66 and discuss the item together with
          item 42.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                        Against:  0         Abstain:  0

          Jerry Schwebel, Chair of the Economic Development Advisory
          Board, made a presentation and stated that this presentation
          would also be made at all the scheduled town hall meetings. He
          further stated that the economic development sales tax history
          was created by Texas voters in 1987 to allow cities to use a
          portion of sales tax for economic development to serve a
          public purpose.

          Sales tax breaks into two sections:

          Section 4a created to fund creation or expansion of industrial
          or manufacturing enterprises.

          Section 4b added by the Legislature in 1991 to fund a wider
          range of civic and commercial projects, in addition to every-
          thing allowed by Section 4a.



          Mr. Schwebel further explained that Economic Development
          Corporations can do what cities cannot by interacting with the
          private sector in ways that cities are legally barred from
          doing.  Also, stating that cities without them are at a com-
          petitive disadvantage when trying to create jobs, diversify
          the economy or improve the quality of life.

     43.  Report requesting approval of City Council to write-off
          various accounts receivable that are deemed to be
          uncollectible.  The City's outside audit firm of Baum & Mejia
          recommended in their Letter to Management to write-off
          antiquated accounts receivable.  An analysis of the accounts
          receivable has been made and this represents only a portion of
          the receivables that are considered uncollectible.  The Audit
          Committee approves the recommendation.  The financial impact
          to the City will be an expense of $5,259.64 for the current
          fiscal year.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                        Against:  0         Abstain:  0

     44.  Update on the status of the Colonias Facility Plan and
          financial application.

          Jerry Pinzon, Assistant Water Utilities Director, reported
          that they have completed the analysis on the facility plan
          that was presented to the Board.  Some of the things that need
          review are that the pressure is adequate and the scatter is
          added to the program, just like the rest of the city area.
          Also, make sure we get a variance on the septic tank
          requirement that are being placed at the colonias and make
          sure we furnish full sewer service to the entire colonias.

           Mr. Pinzon further stated that if we continue with this
           progress we expect the Board to review our plan by November
           and should get funded by early 1999.

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

          Jose Flores, Airport Director, reported that he was very
          pleased to report that the TARDIS system is fully implemented
          and in operation as of Friday, May 29th.  This is a tool that
          will enhance our air traffic control operation and safety as
          well.

          Mr. Flores then proceeded to report on the Noise Compatability
          program stating that community development and airport staff
          had visited San Antonio to see how they are implementing their
          noise abatement program and found that they are not doing
          as much as Laredo is proposing to do.  It was recommended that
          we visit Atlanta International Airport who has an ongoing
          project so we are planning a trip to Atlanta as soon as it is
          feasible.

          FAA's grant is on hold until we have the bids on the Parallel
          Taxiway construction.  The bids are scheduled for Wednesday,
          July 15th, so we shall receive the grant soon thereafter.

          Community Development staff is in the process of recruiting
          and hiring additional staff to assist with the implementation
          of this project.

          Cm. Bruni requested to know when it would be appropriate to
          have a Town Hall Meeting to inform residents, that are
          affected by this noise problem, of where we are and how these
          funds will be dispensed.  He further stated that he wanted
          residents to be properly notified and have the meeting set at
          an appropriate place with ample seating.  Also, have staff
          make a presentation as to what steps need to be taken to apply
          for funding.  Also, requesting that community development
          staff be at the meeting.

          Florencio Pena, City Manager, stated that at the June 15th
          meeting there will be a presentation of how we envision these
          meetings.  He added that with a federal relocation program of
          this magnitude it is necessary to address a lot of legalities
          before citizens are informed of disbursement of funds.

     46.  Status report regarding the reconstruction of Calton Road at
          Yeary.

          Erasmo Villarreal, from the Community Development Department,
          reported that the status of the acquisition of land from Dream
          Limited Corporation for the Calton Road widening project is
          that the city's legal department has received a copy of the
          final draft of settlement.  It is currently being reviewed by
          all parties involved and shall be executed shortly thereafter.
          Mr. Villarreal continued to explain that John Orfila, Real
          Estate Division Manager with community development, has been
          in contact with Eric Modey from H.E.B. who will be meeting
          with management on Wednesday, June 3, 1998, and will report
          back to us about their status of budgeting but assured us that
          they are willing to work with the City of Laredo one hundred
          percent.

          Cm. Bruni requested to know about Canal Street, south of
          H.E.B. property and also about the paving of San Francisco
          Avenue.

          Florencio Pena, City Manager, advised Cm. Guerra that Canal
          Street has been barricaded by TXDOT because it is not a public
          street and does not allow any curb cuts.  Concerning the San
          Francisco Avenue paving he added that it is part of the Canal
          Street Paving Project.

     47.  Amending the HOME Investment Partnerships Program Policy and
          Procedures Manual as it pertains to Down payment Assistance
          Program.  The following are the proposed changes:
          1) Increase the loan amount of $5,000 up to a maximum of
             $9,000 for households with incomes of up to 60% of housing
             area median family income.
          2) Program guidelines would limit the sales prices of the home
             so that the assistance goes to the buyer and affords better
             opportunity for the purchase of affordable housing by low
             to moderate income families.
          3) The sales price for a minimum of: 1,200 square feet would
             range from $60,000 to $64,000; 1,000-1,199 square feet
             would range from $55,000 to $59,000; 850-999 square feet
             would range from $49,000 to $53,000; and 600-850 square
             feet would range from $44,000 to $48,000.
          4) Recommended that assisted home buyer make a minimum
             investment of $1,000.
          5) Recommended that assisted home buyer enroll and complete
             home buyers education course and that no more than $50 be
             used from down payment assistance to pay for each course.
          6) The loan will be a 2nd lien with Deed of Trust with
             Vendor's Lien and Real Estate Note due on sale or paid back
             over 24 months after first lien is paid.

          Rolando Ortiz, President of the Builders Association, stated
          that the reason he was here was to stress that they be
          informed of these items before so they can either rally behind
          it or oppose it.

          Motion to table for the June 15th meeting.

          Moved : Cm. Bruni
          Second: Cm. Valdez
          For:  7                       Against:  1         Abstain:  0
                                        Cm. Guerra

     48.  Consideration of unilateral annexation of 19 tracts of land
          adjacent to or within the boundaries of the City of Laredo
          with possible action to direct staff to proceed with surveying
          and preparation of an annexation schedule.  The total acreage
          of the 19 tracts is 2,522 acres, more or less.

          Motion to proceed with surveying and preparation of an
          annexation schedule.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

     49.  Presentation on the drainage ordinance and proposed detention
          ponds.

          Rogelio Rivera, City Engineer, reported that the consultants
          were in Laredo and were meeting this week to have a draft
          ordinance to present to Council at the next scheduled meeting.

          Cm. Bruni requested to know if the motion he had made had been
          incorporated into the ordinance.  Mr. Rios said that it had
          been included together with the design standards that had been
          discussed, especially about the outfalls and the levys.

          Cm. Bruni further stated that since the ordinance was not in
          place and the upper Zacate Creek drainage study had not been
          done that it would not behoove the Council to construct the
          retention or detention ponds until the study was in place.
          He also requested to know if it could be possible to have a
          moratorium on any retention or detention ponds that are
          currently being proposed or being built in District II until
          the study was completed, especially since they would greatly
          affect Cm. Valdez's district along with District II.

          Jaime L. Flores, City Attorney, confirmed that while in fact
          that was the proper role of a moratorium it is only as a
          temporary measure while the study is being completed.

          Cm. Bruni proposed a motion that Council impose a moratorium
          on all retention or detention ponds that are being constructed
          at the present time or in the near future until this Zacate
          Creek drainage project is in place.  Cw. Montalvo second the
          motion. No action was taken.

          Cm. Valdez asked how long the moratorium would be for?  He
          further stated that even though he was concerned about the
          drainage problems he did not want the moratorium to affect
          development in his district.

          Cm. Bruni concurred with Cm. Valdez but stated that the study
          would assist in knowing where exactly the regional detention
          facility should be located so that one regional pond would be
          constructed as opposed to six or nine that would not do the
          job of safeguarding the safety of the residents downstream.
          The effect would greatly impact the Alta Vista and District V.

          Cm. Guerra asked if there were any other projects underway
          that are going to be affected?

          Mayor Flores asked if there was any financial burden on the
          project now?

          Florencio Pena, City Manager, stated that there was and
          further explained that there is a preliminary plat that has
          been approved by the Planning & Zoning Commission which is
          located off Del Mar between McPherson Road and Loop 20 and
          that the project is up for final approval within the next few
          weeks.  Mr. Pena advised Council that although a moratorium
          can be adopted by cities to temporarily hold on the develop-
          ment of areas to protect the public safety and welfare of the
          community, it is only on a temporary basis.  Also, that there
          should be a process of declaring or identifying the area in
          question and a specific time frame.

          Mr. Pena further stated that Cm. Bruni was correct in
          identifying this as a low-lying area and that in order for
          development to continue it would require detention basins
          because of the increased run-off that it would create.  It
          currently is a wetland type area and holds up a lot of water
          that ends up in Zacate Creek.  So there is adequate reason to
          consider a moratorium but it needs a formal process to declare
          it.

          Jaime L. Flores, City Attorney, concurred with the City
          Manager's recommendation to Council.

          Mayor Flores asked Cm. Bruni if he wanted to withdraw his
          motion?

          Cm. Bruni stated that his motion still stood and that it was a
          very simple motion.  Further stating that he was only
          interested in District II and that if the other council
          members wished to continue with the building of retention
          ponds in their district it would be fine with him.

          Mayor Flores requested that the motion be read for the last
          time.

          Florencio Pena, City Manager, read the motion as follows:

          Motion to instruct staff to prepare the necessary documents to
          establish a moratorium on the development of the Zacate Creek
          water shed northeast of McPherson.  And that no other
          retention facility be built until the Zacate Creek study is in
          place and presented to City Council.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  7                  Against:  2         Abstain: 0
                                   Cm. Valdez
                                   Cm. Alvarado

     50.  Presentation regarding a proposal to expand the project review
          and management capabilities of the Engineering and Utilities
          Department by hiring three additional project managers.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  8                        Against:  0         Abstain:  0

     51.  Request for Executive Session pursuant to Texas Government
          Code Section 551.071(1)(A) to discuss pending litigation
          regarding Southwestern Bell Telephone Company v. City of
          Laredo, Cause No. CA-L-98-47 in the U.S. District Court for
          the Southern District of Texas Laredo Division, 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 pending
          litigation regarding Southwestern Bell Telephone Company v.
          City of Laredo, Cause No. CA-L-98-47 in the U.S. District
          Court for the Southern District of Texas Laredo Division, and
          return to open session for possible action thereon.

          Moved : Cm. Guerra
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          After executive session Mayor Flores announced that there was
          no formal action taken.


  IX.     COMMUNICATIONS

          Mayor Flores read a letter from Cynthia Leon of HUD who wrote
          that the letter was to provide a report of the actions that
          were taken because of concern about the problems that some
          families were experiencing with their mortgage payments and
          the possibility that they may lose their homes to foreclosure.

          The letter further read that a HUD team had visited with
          housing industry representatives and city staff twice in May
          and had obtained a commitment from them to assist the families
          to the extent possible.  Additionally, they are training the
          mortgagees, city staff and housing counseling agencies on loss
          mitigation.

          The HUD team held a meeting at the International Bank of
          Commerce through the auspices of Mr. Jack Mooney, the
          builders, mortgagees, realtors, representatives of service
          agencies, city and county staff pledged to collaborate.  The
          group then agreed to form a committee, headed by Mr. Tommy
          Pena of Aegis Mortgage Company, to explore the most
          appropriate manner of informing families about services
          available to save their home from foreclosure.

          Mayor Flores thanked city staff for working with HUD and the
          lending institutions for helping these families with their
          concern of foreclosure.

          Mayor Flores also presented Cm. Casso and Cm. Perez with a
          gift from her thanking them on behalf of all the citizens of
          Laredo.

   X.     CITY COUNCIL PRESENTATION AND DISCUSSION

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

      A.  Requests by Council member Jose R. Perez

          1.  Discussion and possible action  regarding the immediate
              allocation of the remaining 1.5% pay increase for all City
              of Laredo employees. A ten percent increase was approved
              by the City Council in September 1997.
              (Co-sponsored by Cm. Valdez)

              Florencio Pena, City Manager, gave a report on past
              history of Council action and direction regarding the
              salary increase requested for employees.  Further stating
              that the $187,000 impact would not affect the budget
              ending in a positive balance.  Mr. Pena's recommendation
              to Council was to keep the 1.5% increase for September
              30th.

              Heberto Ramirez, Budget Officer, stated that funding was
              available whether it be done now or in September and
              concluded by saying that the affect this would cause would
              be to next fiscal year's budget.

              Motion to give the employees a 1.5% pay increase effective
              May 31, 1998.

              Moved : Cm. Perez
              Second: Cm. Bruni
              For:  8                    Against:  0         Abstain: 0

      B.  Requests by Council member Louis H. Bruni

          1.  Status report and possible action on the continuing
              drought conditions existing in Laredo, Texas/Webb County
              with possible implementation of phase one of the
              drought contingency plan.

              Cm. Bruni stated that a report from the International
              Boundary Water Commission gave the latest update of the
              Rio Grande Water Storage conditions at Amistad Dam and
              Falcon Dam.  The last report made on May 16, 1998,
              indicated that the total U.S. conservation capacity was at
              an all time record low of 28.15% of capacity, of this
              capacity 14.55% belongs to the Mexican government.

              Cm. Bruni further stated that 782,000 acre feet of water
              that are impounded at Amistad Dam equates to a little over
              two years at the present release levels without borrowing
              agricultural restrictions.  He then requested that staff
              give a summary of a meeting that was held in Harlingen
              concerning the drought conditions.

              Jerry Pinzon, Assistant Director of Utilities, reported
              that at the meeting some municipalities expressed concern
              and wanted to go into a contingency plan but stressed that
              the plan should be done on a regional basis.  TNRCC
              considered the request and got together with several
              groups, Fish & Wild Life, Texas Water Development Board,
              TNRCC, Agriculture Commission and came up with a water
              smart program which is similar to the one that was
              initiated back in 1996.  This will be a public awareness
              program to inform people of how they can conserve water on
              a voluntary basis.  Mr. Pinzon recommended to Council to
              make some aggressive media blitz to create this effect.


              Florencio Pena, City Manager, informed Council that Laredo
              uses 33,000 acre feet of water and has an adequate supply
              of 40,000 acre feet but stressed that what is not used, we
              loose.  This causes the city to loose revenue, the year
              that the community responded to the water contingency
              program, the city lost close to $400,000.

          2.  Discussion and possible action  on creating an ENGINEERING
              CONTRACT REVIEW COMMITTEE composed of three council
              members to receive suggestions from staff and make
              recommendations to the Laredo City Council.
              (Co-sponsored by Cm. Casso, Cm. Guerra, Cw. Montalvo)

              Cm. Bruni stated that he had several engineering firms
              that called to complain of the fact that the city was
              awarding contracts to only a few firms.  So he is
              requesting that a committee be formed to review staff
              recommendations on RFP's.  The committee will oversee
              selection and make sure that all engineering firms get an
              equal share of engineering contracts.

              Mayor Flores requested to know what criteria is being used
              for selection?

              Florencio Pena, City Manager, explained that the criteria
              that is followed is the Professional Services Procurement
              Act, which basically calls for three steps:

                  -a statement of qualifications
                  -selection by City Council
                  -the negotiation of contract

              A committee of five or six staff members then reviews
              proposals.  They make a selection by using a point system
              and the most weighing factor is whether they have had a
              recent contract.

              Motion to create an Engineering Contract Review Committee
              and confirm the three members: Cm. Alvarado, Chairperson,
              Cm. Bruni, and Cw. Montalvo.

              Moved : Cm. Bruni
              Second: Cm. Casso
              For:  6                   Against:  0         Abstain: 2
                                                            Cw. Moreno
                                                            Cm. Valdez

          3.  Discussion and possible action on opening Saunders Court
              at the correct street elevation to provide access to the
              property known as Block 1372, Lots 7, 8, 9, and 10;
              commonly known as the Pearl Building on Saunders Street.

              Cm. Bruni requested that this item be tabled.

          4.  Status report on the Ropa Usada establishment at 2601 Ash,
              with possible action.

              Assistant Fire Chief Moncivais reported that he had done
              an inspection of the establishment on January 27, 1998 and
              found it to be in several violations and ordered owners to
              comply with the fire code.  Our department made a follow-
              up visit on February 10th and found that they had
              corrected most of the violations and had also requested
              that they lower their capacity of storage to 50%.

              Pat Alexander, Deputy Building Administrator, reported
              that they wrote a letter to Mrs. Rita Torres Galvan but
              was returned unclaimed.  Our department has found that
              Mrs. Galvan is deceased and that Daniel T. Galvan is the
              trustee.  Mr. Alexander further explained that he had met
              with Mr. Galvan and informed him that they were in
              violation of three major findings:

                  -exterior walls need to be of concrete block.
                  -exterior walls need to extend two feet from eaves of
                   the building.
                  -building needs a commercial sprinkler system.

              Mr. Galvan was also informed that he had 30 days in which
              to comply to bring these violations up to required code.

      C.  Requests by Council member Eliseo Valdez Jr.

          1.  Presentation by Faithful Warriors extending an invitation
              to City Council for the Second Picture a Prayer Day.

              Cm. Valdez introduced some teenagers who appeared before
              the Council who thanked the Mayor and Council for standing
              by them at last year's event.  They formally invited the
              Mayor and Council to the Second Picture a Prayer Day to be
              held on August 6, 1998.

          2.  Request for report on traffic congestion on Highway 59 and
              San Francisco Avenue as a result of trucks operating off
              the truck route.  Status report regarding what efforts
              have been taken to prevent business from encroaching on
              residential areas with possible action by Code Enforcement
              and Police Department.

              Cm. Valdez requested to know what each department can do
              to alleviate the problem of 18 wheelers, tractors and
              trailers along the residential areas.

              Police Chief Agustin Dovalina stated that police would in-
              crease the surveillance of the area and increase the truck
              route violations.

              Benny Salinas, Building Official, reported that he and Cm.
              Valdez had driven around the area of north of Lyon to
              H.E.B. and that the properties that are adjacent to the
              freeway are designated as commercial.  Our observation was
              that sidewalks are being used for parking and are blocking
              pedestrian right-of-way.  Mr. Salinas further stated that
              he had instructed his zoning officers to check the area
              after 5:00 p.m. and make sure that people are advised of
              the violations.

          3.  Presentation by Debra Sherwood, Laredo League for Family
              Fun, requesting additional support from the City for the
              Fun Festival on July 4, 1998, with possible action.
              (Co-sponsored by Cm. Guerra)

              Ms. Sherwood appeared before the Council requesting
              assistance in the amount of $5,000 to meet their
              operational expenses. The event will be held on Friday,
              July 3rd and Saturday, July 4th.

              Florencio Pena, City Manager, stated that the procedure
              for requesting money was through Third Party Funding but
              added that the Laredo League for Family Fun had received
              money last year from the Mayor's budget.

              Mayor Flores stated that she will be looking into the
              Mayor's budget to see if it is possible to provide some
              monetary assistance for the event.

      D.  Requests by Council member Mario G. Alvarado

          1.  Traffic study for signalization at La Bota Subdivision
              entrance on Mines Road with possible action.

              Cm. Alvarado stated that the excessive amount of truck
              traffic warrants a traffic signal.  He further stated that
              his observations were that if an 18 wheeler is at this
              intersection trying to make a turn, it keeps other
              vehicles from proceeding.

              There was no action on this item.

          2.  Request for traffic speed limit reduction analysis on all
              highways approaching the Laredo city limits.

              Cm. Alvarado explained that the purpose of his request is
              due to residents complaining that trailers should reduce
              the speed as they approach the city limits from the Mines
              Road.  He further stated that he was aware of TXDOT making
              a study and concluded that the speed limit should remain
              the same but that he strongly disagrees with this
              decision.

              Roberto Murillo, Traffic Engineer, informed Council that
              TXDOT was in the process of finalizing a second speed
              limit reduction study that will be submitted to Austin for
              their review and will be back with a recommendation to
              Council within the next three to four weeks.

              Cm. Alvarado requested that Mr. Murillo provide Council
              with this report of findings so that they can contact
              TXDOT to take formal action to alleviate this problem.

          3.  Update on the Santa Isabel Water Well Project, with
              possible action.

              Jerry Pinzon, Assistant Director of Utilities, informed
              Council that there is a budget cost of $20,000 to install
              a water point.  The county has been contacted to see if
              they will assist with the cost since most are county
              residents in this area.  Previous contacts with the county
              indicate that they were thinking that the one installed
              about three months ago at La Bota Ranch would have been
              sufficient.

              Cm. Alvarado stated that county commissioners should be
              formally approached because of the mutual understanding
              that the city would provide the water and the county would
              provide the water point.

              Motion to gather data and information and request to be
              placed on commissioner's court agenda for request for
              assistance to set up water point at the Santa Isabel Water
              Well.

              Moved : Cm. Alvarado
              Second: Cm. Guerra
              For:  8              Against:  0         Abstain:  0


  XI.     PUBLIC HEARINGS

     53.  Public hearing regarding an application by Trinidad B.
          Sarmiento amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning the south 93.88 ft. of lots 7 & 8, Block
          1729, Eastern Division, located at 2820 Santa Barbara St, from
          R-3 (Mixed Residential District) to B-1 (Limited Business
          District).  The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the City Manager to amend the Zoning
          Ordinance (Map) of the City of Laredo by rezoning the south
          93.88 ft.  of lots 7 & 8, Block 1729, Eastern Division,
          located at 2820 Santa Barbara St, from R-3 (Mixed Residential
          District) to B-1 (Limited Business District).

          Motion to open the public hearing.

          Moved : Cw. Montalvo
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Guerra
          Second: Cw. Montalvo
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Perez

     54.  Public hearing regarding an application by John Joseph Jacaman
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 14.611 acres as further described by metes and
          bounds, located west of the Bob Bullock Loop, and north of the
          Diamond Subdivision, at Jacaman Ranch, from R-1 (Single Family
          Residential District) to B-4 (Highway Commercial District).
          The Planning and Zoning Commission recommends approval of this
          zone change.

                         INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 14.611 acres as further described by metes
          and bounds, located west of the Bob Bullock Loop, and north of
          the Diamond Subdivision, at Jacaman Ranch, from R-1 (Single
          Family Residential District) to B-4 (Highway Commercial
          District).

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Bruni
          Second: Cm. Perez
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Bruni

     55.  Public hearing regarding an application by John Joseph Jacaman
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 21.563 acres as further described by metes and
          bounds, located west of the Bob Bullock Loop, and north of the
          Diamond Subdivision, at Jacaman Ranch, from R-1 (Single Family
          Residential District) to B-4 (Highway Commercial District).
          The Planning and Zoning Commission recommends approval of this
          zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 21.563 acres as further described by metes
          and bounds, located west of the Bob Bullock Loop, and north of
          the Diamond Subdivision, at Jacaman Ranch, from R-1 (Single
          Family Residential District) to B-4 (Highway Commercial
          District)

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Perez
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Bruni

     56.  Public hearing regarding an application by Oscar J. Zuniga,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 6.413 acres, as further described by metes and
          bounds, located east of Ejido Ave., at Frost St., from AG
          (Agricultural District) to R-1 ( Single Family Residential
          District).  The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 6.413 acres, as further described by metes
          and bounds, located east of Ejido Ave., at Frost St., from AG
          (Agricultural District) to R-1 (Single Family Residential
          District).

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Perez
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Bruni

     57.  Public hearing regarding an application by R&A Rodriguez &
          Sons, Ltd., and Reynaldo H. Rodriguez Sr. General Partner
          authorizing the issuance of a Special Use Permit for a mini-
          storage/warehouse, on Lot 3, Block 2, Town Lake Plaza, Unit I,
          located at 1234 Town Lake Dr.  The Planning Zoning Commission
          recommends approval of this Special Use Permit.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the City Manager to issue a Special Use
          Permit for a mini-storage/warehouse, on Lot 3, Block 2,
          Town Lake Plaza, Unit I, located at 1234 Town Lake Dr. ZC-27-
          98

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Bruni

     58.  Public hearing regarding an application by Rodolfo Hernandez
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 6 and the east of Lot 5, Block 894, Eastern
          Division, located at 1619 Market St., from B-3 (Community
          Business District) to B-4 (Highway Commercial District).  The
          Planning and Zoning Commission recommends approval of this
          zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 6 and the east of Lot 5, Block 894,
          Eastern Division, located at 1619 Market St., from B-3
          (Community Business District) to B-4 (Highway Commercial
          District).

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          Rodolfo Hernandez spoke in favor of the zone change in order
          to expand the rear of the building for an auto accessories and
          body shop.

          Motion to table this item.

          Moved : Cm. Casso
          Second: Cm. Guerra
          For:  8                       Against:  0         Abstain:  0

     59.  Public hearing regarding an application by Laredo Lodge
          No. 547, Ancient Free and Accepted Masons and Drew W. Claes,
          Secretary amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 2.207 acres, as further described by metes
          and bounds, located at 6600 San Dario Avenue from B-3
          (Community Business District) to B-4 (Highway Commercial
          District).  The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 2.207 acres, as further described by metes
          and bounds, located at 6600 San Dario Avenue from B-3
          (Community Business District) to B-4 (Highway Commercial
          District).

          Motion to open the public hearing.

          Moved : Cw. Moreno
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Guerra
          Second: Cm. Casso
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Guerra

     60.  Public hearing regarding an application by Juan and Berta
          Garcia amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 7, Block 4, Indian Crossing
          Subdivision, Unit I, located at 4114 Rio Grande Dr., from R-3
          (Mixed Residential District) to B-1 ( Limited Business
          District).  The Planning and Zoning Commission recommends
          approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE

          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 7, Block 4, Indian Crossing
          Subdivision, Unit I, located at 4114 Rio Grande Dr., from R-3
          (Mixed Residential District) to B-1 (Limited Business
          District).

          Motion to open the public hearing.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  8                       Against:  0         Abstain:  0

          Ron Whitehawk representing Mr. & Mrs. Garcia

          Motion to close the public hearing and introduce the
          ordinance as a Conditional Use Permit for an auto repair shop.

          Moved : Cm. Alvarado
          Second: Cm. Guerra
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Alvarado

     61.  Public hearing regarding an application by Armando Gutierrez,
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning 0.0411 acres, as further described by metes and
          bounds, located on the east side of FM1472, one mile north of
          the intersection of Santa Maria Avenue and FM 1472, from AG
          (Agricultural District) to B-3 (Community Business District).
          The Planning and Zoning Commission recommends approval of this
          zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the  Zoning Ordinance (Map) of the City of
          Laredo by rezoning 0.0411 acres, as further described by metes
          and bounds, located on the east side of FM1472, one mile north
          of the intersection of Santa Maria Avenue and FM 1472, from AG
          (Agricultural District) to B-3 (Community Business District).

          Motion to open the public hearing.

          Moved : Cm. Alvarado
          Second: Cw. Montalvo
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Alvarado
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Alvarado

     62.  Public hearing regarding application by Alambres, Inc., Steve
          Snow, amending the  Zoning Ordinance (Map) of the City of
          Laredo by  rezoning the 1.667 acres as further described by
          metes and bounds, located south of the intersection of Bristol
          Rd. and Atlanta Dr., from R-3 (Mixed Residential District) to
          R-1-MH (Single Family Manufactured Housing District). ZC-33-
          98.  The Planning and Zoning Commission recommends approval of
          this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the City Manager to amend the Zoning
          Ordinance (Map) of the City of Laredo by rezoning 1.667 acres
          as further described by metes and bounds, located south of the
          intersection of Bristol Rd. and Atlanta Dr., from R-3 (Mixed
          Residential District) to R-1-MH ( Single Family Manufactured
          Housing District).

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Alvarado
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Alvarado

     63.  Public hearing amending the City of Laredo FY 1997-98 Annual
          Budget by adding 11 new positions for the Laredo Public
          Library and authorizing the City Manager to implement said
          budget.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo FY 1997-98 Annual Budget
          by adding 11 new positions for the Laredo Public Library and
          authorizing the City Manager to implement said budget.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Perez
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

     64.  Public hearing authorizing the City Manager to amend the City
          of Laredo FY1997-98 Airport/Medical Fund Budget and to amend
          the FY 1997-1998 Airport Operation Budget to appropriate
          $50,691.00, from the FY 1997-1998 Airport Operations Budget
          and authorizing the City Manager to implement said budget for
          Change Order #1 on the construction contract with Pete
          Gallegos.  The Change Order #1 is for the construction of 40
          replacement parking spaces for the United States Postal
          Service affected by the Arkansas Street Extension Project.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the City Manager to amend the City of
          Laredo FY1997-98 Airport/Medical Fund Budget and to amend the
          FY1997-1998 Airport Operation Budget to appropriate
          $50,691.00, from the FY 1997-1998 Airport Operations Budget
          and authorizing the City Manager to implement said budget for
          Change Order #1 on the construction contract with Pete
          Gallegos.  The Change Order #1 is for the construction of 40
          replacement parking spaces for the United States Postal
          Service affected by the Arkansas Street Extension Project.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Bruni
          Second: Cm. Valdez
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: Cm. Bruni

     65.  Public hearing amending the City of Laredo FY1997-98 Annual
          Budget to reflect an appropriation in Transportation Planning
          Funds.  The appropriation comes from the release of 1996-1997
          Unified Planning Work Program (UPWP) unexpended funds.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance authorizing the City Manager to amend the City of
          Laredo FY1997-98 Annual Budget to reflect an appropriation in
          Transportation Planning Funds.  The appropriation comes from
          the release of 1996-1997 Unified Planning Work Program (UPWP)
          unexpended funds.

          Motion to open the public hearing.

          Moved : Cm. Bruni
          Second: Cm. Perez
          For:  8                       Against:  0         Abstain:  0

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

          Moved : Cm. Valdez
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

     66.  Public hearing calling a section 4B Sales and Use Tax Special
          Election to be held within the City on August 8, 1998, making
          provisions for the conduct and ballot thereof and other
          provisions relating thereto.

                      INTRODUCTION OF AN ORDINANCE
          An ordinance calling a section 4B Sales and Use Tax Special
          Election to be held within the City on August 8, 1998, making
          provisions for the conduct and ballot thereof and other
          provisions relating thereto.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       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:  8                       Against:  0         Abstain:  0

          Ordinance Introduction: City Council

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

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

          Moved : Cm. Bruni
          Second: Cm. Perez
          For:  8                       Against:  0         Abstain:  0

     67.  Award of contract to the SOLE BIDDER, Sames Motor Co., Laredo,
          Texas, in the amount of $97,497.00, for the purchase of three,
          replacement support vehicles and authorize the rejection of
          the sole bid received for the purchase of one ton truck and
          one sedan.  The support vehicles will be equipped with
          compressed natural gas (CNG) bi-fuel conversion systems.
          Delivery is expected within 120 days.  The purchase of the ton
          truck and the sedan will be deferred due to the funding
          constraints.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Bruni
          For:  8                       Against:  0         Abstain:  0

     68.  98-RT-073  Certifying that the Transit Department of
                     the City of Laredo, Texas is unable to acquire a
                     trolley bus as specified in bid invitation CMTF-
                     25712-1-96, using compressed natural gas at a
                     projected cost that is reasonably expected to
                     result in no greater net cost over the use of
                     diesel, measured over its expected useful life.

          Motion approve Resolution 98-RT-073.

          Moved : Cm. Bruni
          Second: Cm. Perez
          For:  8                       Against:  0         Abstain:  0

     69.  Authorization to exercise an option to purchase one diesel-
          powered AH-28 American Heritage Streetcar Trolley, from Chance
          Coach, Inc., for $268,564 based on a bid solicitation and
          contract awarded jointly by Capital Metropolitan
          Transportation Authority (Capital Metro) and Metropolitan
          Transit Authority of Harris County (Houston Metro).  The
          Contract included options for purchase of additional trolleys,
          one of which has been made available to Laredo Municipal
          Transit System.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

     70.  Authorization for the issuance of requests for proposals for
          bus bench advertising and/or shelter/kiosk advertising sales
          and service.

          Motion to approve.

          Moved : Cm. Perez
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

     71.  98-RT-084   Approval of the Transit Fixed Route Productivity
                      evaluation process as recommended by the Transit
                      Ad Hoc Committee and Transit Staff.

          Motion to approve Resolution 98-RT-084.

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

     72.  Public Hearing and Motion to realign Route #5 - Marcella, in
          order to serve a new bus stop at the corner of Foster and
          Pappas streets, on which the Laredo State Center has
          constructed a bus shelter.

          Motion to open the public hearing.

          Moved : Cm. Perez
          Second: Cm. Guerra
          For:  8                       Against:  0         Abstain:  0

          Motion to close the public hearing and approve the realignment
          of Route #5.

          Moved : Cm. Perez
          Second: Cm. Guerra
          For:  8                       Against:  0         Abstain:  0

          Motion to reconvene as the City Council.

          Moved : Cm. Guerra
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

XIII.     ADJOURNMENT

          Motion to adjourn.        Time: 9:15 p.m.

          Moved : Cm. Bruni
          Second: Cm. Alvarado
          For:  8                       Against:  0         Abstain:  0

          I hereby certify that the above minutes contained in pages 01
          to 35 are true, complete, and correct proceedings of the City
          Council Meeting held on the 1st day of June, 1998.

                                          _________________________
                                          Gustavo Guevara, Jr.
                                          City Secretary