CITY OF LAREDO
                          CITY COUNCIL MEETING
                                M98-R-25
                              JUNE 15, 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
      Alfredo Agredano,            Councilmember, District I
      Louis H. Bruni,              Councilmember, District II
      John C. Galo,                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

  IV. MINUTES

      2.  City Council Meeting, April 27, 1998
          City Council Meeting, May 4, 1998
          Special City Council Meeting, May 5, 1998
          Special City Council Meeting, May 11, 1998

          Motion to approve the minutes.

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

   V. INTRODUCTORY ORDINANCES

      3.  Amending Chapter 2, Article II, Division 6, of the Code of
          Ordinances of the City of Laredo, entitled pay administration,
          by amending Section 2.87.7(d)(15)(c), thereby adopting a
          revised pay schedule increasing all steps in all grades in the
          pay schedule by one and one-half percent (1 1/2%) with a
          revised effective date of implementation of May 31, 1998.

          Ordinance Introduction: City Council

      4.  Second reading 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 to 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

      5.  Approving and authorizing the execution of a 40' x 40'
          permanent equipment and access easement with Southwestern Bell
          Telephone located along Foster Avenue at the Laredo
          International Airport. Authorizing the City Manager to execute
          all necessary documents of conveyance effectuating same. Said
          equipment and access easement is more particularly described
          by metes and bounds.

          Ordinance Introduction: City Council

      6.  Authorizing the City Manager to execute a lease renewal with
          the State of Texas General Services Commission on behalf of
          the Texas Department of Health, Public Health Region 11, for
          2,025 square feet of office space at the City of Laredo Health
          Complex located at 2600 Cedar Street.
          a. lease renewal term will be from September 1, 1998, through
             August 31, 1999;
          b. no rental cost, lessee will pay a sum in the amount of
             $770.42 per month for electricity and janitorial services.

          Ordinance Introduction: City Council

      7.  Authorizing the City Manager to execute a sublease with Arturo
          Fernandez, where the City of Laredo Engineering Department is
          subleasing from him for approximately 5,050 square feet
          constituting Building #55 located at 4818 Thomas Avenue at the
          Laredo International Airport.
          a. lease term is for five (5) years commencing July 1, 1998
             and ending June 30, 2004 (negotiable).
          b. monthly rent shall be $3,500.00 for the first two years.
             Starting July 1, 2000 until June 30, 2002 the rent may
             increase not to exceed 5% of the original rent amount. On
             July 1, 2002 rent may increase not to exceed 5% of the
             original amount.

          City Secretary Gustavo Guevara informed the Council that the
          correct amount of square feet should read "5,050" instead of
          the 8,580.

          Ordinance Introduction: City Council

      8.  Authorizing the waiver parking fees at the Laredo Transit
          Center for patrons at the garage between 7:00 P.M. and 11:00
          P.M. on Thursday, June 25, 1998, subject to a $100
          contribution by the Laredo Philharmonic Orchestra (L.P.O.).
          The parking fees will be waived in order to support the
          L.P.O.'s Mozart Opera Gala Festival, a community event, in
          downtown Laredo.

          Ordinance Introduction: City Council


  VI. FINAL READINGS

      Motion to waive final readings of ordinances #98-O-118, #98-O-138,
      #98-O-139, #98-O-140, #98-O-141, #98-O-142, #98-O-143, #98-O-144,
      #98-O-145, #98-O-146, #98-O-147, #98-O-148, #98-O-149, #98-O-150,
      #98-O-151, #98-O-152. #98-O-153, #98-O-154, #98-O-155, and
      #98-O-156.

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

      9. 98-O-118  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 Road and Atlanta Drive, from R-3 (Mixed
                   Residential District) to R-1-MH (Single Family
                   Manufactured Housing District).  (Mario G. Alvarado)

                   Motion to approve.

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

     10. 98-O-138  Ordinance 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.
                   (City Council)

                   Motion to approve.

                   Moved : Cm. Bruni
                   Second: Cw. Montalvo
                   For:  7              Against:  0         Abstain:  1
                                                            Cw. Moreno

     11. 98-O-139  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. (City Council)

                   Motion to approve.

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

     12. 98-O-140  Ordinance 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 which 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.  (City Council)

                   Motion to approve.

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

     13. 98-O-141  Ordinance establishing guidelines and criteria
                   governing tax abatements by the City of Laredo;
                   providing for severability; providing for an
                   effective date. (City Council)

                   Motion to amend the ordinance by changing "plus 2%
                   percent" to read $2.00 above minimum wage; that
                   instead of "number of jobs" it should read "number of
                   new jobs"; and that instead of "required investment"
                   it should read "number of additional investment".

                   Moved : Cw. Moreno
                   Second: Cm. Bruni
                   For:  6              Against:  2         Abstain:  0
                                        Cm. Galo
                                        Cm. Alvarado

                   Motion to approve as amended.

                   Moved : Cm. Bruni
                   Second: Cw. Montalvo
                   For:  6              Against:  2         Abstain:  0
                                        Cm. Galo
                                        Cm. Alvarado

     14. 98-O-142  Ordinance 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). (City Council)

                   Motion to approve.

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

     15. 98-O-143  Ordinance 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). (City Council)

                   Motion to approve.

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

     16. 98-O-144  Ordinance 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.
                   (City Council)

                   Motion to approve.

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

     17. 98-O-145  Ordinance authorizing the City Manager to amend the
                   Zoning Ordinance (Map) of the City of Laredo by
                   rezoning the south 93.88 feet 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).  (Jose R. Perez)

                   Motion to approve.

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

     18. 98-O-146  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). (Louis H. Bruni)

                   Motion to approve.

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

     19. 98-O-147  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). (Louis H. Bruni)

                   Motion to approve.

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

     20. 98-O-148  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).
                   (Louis H. Bruni)

                   Motion to approve.

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

     21. 98-O-149  Ordinance authorizing the City Manager to issue a
                   Special Use Permit for a mini-storage/warehouse, on
                   Lot 3, Block 2, Townlake Plaza, Unit I, located at
                   1234 Townlake Drive. (Louis H. Bruni)

                   City Secretary Gustavo Guevara informed Council that
                   the ordinance needed correcting by deleting "City
                   Manager to issue" and be replaced with "issuance of"
                   and should read as follows:

                   Ordinance authorizing the issuance of a Special Use
                   Permit for a mini-storage/warehouse, on Lot 3, Block
                   2, Townlake Plaza, Unit I, located at 1234 Townlake
                   Drive.

                   Motion to approve as corrected.

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

     22. 98-O-150  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). (Joe A. Guerra)

                   Motion to approve.

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

     23. 98-O-151  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). (Mario G. Alvarado)

                   Motion to approve.

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

     24. 98-O-152  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).
                   (Mario G. Alvarado)

                   Motion to approve.

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

     25. 98-O-153  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. (City Council)

                   Motion to approve.

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

     26. 98-O-154  Ordinance authorizing the City Manager to amend the
                   City of Laredo FY 1997-98 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. (Louis H. Bruni)

                   Motion to approve.

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

     27. 98-O-155  Ordinance authorizing the City Manager to amend the
                   City of Laredo FY 1997-98 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. (City Council)

                   Motion to approve.

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

     28. 98-O-156  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
                   including but not limited to the general composition
                   of the Economic Development Corporation Board of
                   Directors if such tax measures should pass.
                   (City Council)

                   This item was discussed together with item #59.

                   Motion to approve.

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

 VII. RESOLUTIONS

     29. 98-R-085  Authorizing the City Manager to enter into an
                   Interlocal Agreement between the City of Laredo and
                   United Independent School District for the
                   Construction and Management of Father Charles M.
                   McNaboe Park.

                   Motion to approve.

                   Moved : Cm. Bruni
                   Second: Cm. Galo
                   For:  7              Against:  0         Abstain: 1
                                                            Cw. Moreno

     30. 98-R-087  Authorizing the City Manager to enter into an
                   inter-local agreement between the City of Laredo and
                   Laredo Community College. This agreement between the
                   City of Laredo and Laredo Community College is for
                   the joint use of the Laredo Community College
                   swimming pool. This agreement stipulates the various
                   responsibilities of each entity and allows for the
                   swimming pool to be used by the general public on
                   Saturday and Sunday during the City's pool hours and
                   season. The term of this agreement is perpetual
                   unless a sixty day written notice is given by either
                   party.

                   Motion to approve.

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

     31.98-R-088   Authorizing the City Manager to accept a grant from
                   the Governor's Office for funding of personnel and
                   direct operating expenses for a Multi-Agency
                   Narcotics Task Force in the amount of $758,249.00,
                   with the City designating $294,166.00 in matching
                   funds for a total of $1,052,415.00 for the period
                   beginning June 1, 1998 and ending May 31, 1999 and
                   authorizing the City Manager to sign any and all
                   documents pertaining to this grant application.

                   Motion to approve.

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

     32. 98-R-089  Resolution expressing the support of the City Council
                   of the City of Laredo, to consider in the U.S.
                   83/Port Roads Corridor Study, Converting US 83 into a
                   four lane divided highway with a freeway connector to
                   IH 35.

                   Motion to approve.

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

     33. 98-R-091  Appointing the nominee, John Charles, of District II
                   Councilmember Louis H. Bruni, to the Planning and
                   Zoning Commission, the nominee, Tammi Casso to the
                   Parks and Recreation Advisory Board.

                   Motion to approve.

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

     34. 98-R-092  Appointing the nominee, Elmo Lopez Jr., of District
                   III Councilmember John C. Galo, to the Planning and
                   Zoning Commission and the nominee, Crispin Sanchez to
                   the Airport Advisory Board.

                   Motion to approve.

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

     35. 98-R-093  Authorizing the acceptance of 20 foot wide right-of-
                   way easement located approximately 1/4 mile East of
                   the intersection of Del Mar Boulevard and Loop 20,
                   said 20 foot wide easement containing approximately
                   6,158.33 square feet, more or less out of Porcion 25,
                   Abstract 50, Juan F. Garcia, original grantee, Webb
                   County, Texas, and also being out of share 3,
                   consisting of 89.20 acres conveyed to Carlos P.
                   Cantu, Jr., Oralia Cantu Garza, and Graciela Cantu
                   Botello recorded in County Clerks File Number 44850
                   of the Webb County Deed Records, said 20 foot wide
                   right-of-way easement being more particularly
                   described by metes and bounds.

                   Motion to approve.

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

VIII. MOTIONS

     36.  Approval of bid specifications and authorization to advertise
          for bids for the following:
          a) ammunition - Police Department
          b) safety footwear, six month contract - Various Departments
          c) RFP - Ambulance Billing Software/EMS Data Collection
             Hardware - Health Department/Fire Department
          d) grinding of wood waste material at the landfill - Public
             Works - Landfill
          A tentative bid award date is scheduled for August 3, 1998.
          Funding is available in the department's operating budget.

          Motion to approve.

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

     37.  Approval to advertise for bids for the purchase of hand-held
          computers for issuing parking meter citations. These computers
          provide the meter enforcement officer immediate access to
          records of autos with tickets outstanding, allow immediate
          booting, and print tickets with legible information.

          Motion to approve.

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

     38.  Approval to advertise for bids for the purchase of vandal-
          proof lower housing assemblies and coin cartridges for parking
          meters. These housing assemblies will replace older meter
          housings that were vandalized continuously and also will
          prevent physical removal of coins from the meters.

          Motion to approve.

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

     39.  Approval of the construction plans and authorization to
          advertise for bids for a New Parallel Taxiway Phase "D" at the
          Laredo International Airport Passenger Terminal and Related
          Airside/Landside Improvements with tentative award on July 6,
          1998. This project will be funded 90% by Federal Aviation
          Administration (FAA) Funds and 10% Airport Funds. Funding is
          available in the Airport Improvement Other Than Building.

          Motion to approve.

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

     40.  Approval of selection of consultant and authorization to
          negotiate an engineering contract with Sherfey Engineering
          Company, L.L.C., Laredo, Texas, to provide surveys, design and
          preparation of plans and specifications and cost estimates for
          the Cherry Hill Drive Reconstruction Project from Pappas
          Street to Sandman Road. Funding is available in the Capital
          Improvement Fund Cherry Hill Drive Widening.

          Motion to approve.

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

     41.  Award of contract to the LOW BIDDER, J.R. Landscaping, Laredo,
          Texas, in the amount of $56,080.00, for sodding and hydro-
          seeding the landscape areas around the new airport terminal.
          A total of three bids were received for this service. Funding
          is available in the Airport's construction account.

          Motion to approve.

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

     42.  Award of contract to the LOW BIDDER, Cantu America
          Construction Co., Inc., Laredo, Texas, in the amount of
          $18,950.00, for the installation of carpet and resilient tile
          flooring, and interior painting at the Municipal Court
          building. The contract vendor will commence the contract work
          within three weeks. A total of three bids were received for
          these services.

          Motion to approve.

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

     43.  Award of contract to the SOLE BIDDER, American Sterilizer
          Company, Erie, PA, in the amount of $20,625.00, for the
          purchase and installation of a re-manufactured laboratory
          sterilizer. This will be a replacement unit. Delivery is
          expected within sixty days.

          Motion to approve.

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

     44.  Rescind the contract awarded to Fort Bend Services, Stafford,
          Texas, for furnishing an anionic polymer used in the water
          treatment process due to delivery problems and award a new two
          year contract to the next LOWEST BIDDER, Polydyne, Inc.,
          Toledo, Ohio, in the estimated yearly amount of $33,120.00.

          This chemical is being used on a belt press that was recently
          put in service. The new contract is $0.01/lb higher.  All
          purchases will be on a per need basis.  A total of three bids
          were received for this purchase. Funding is available in the
          Utilities Department - Water Treatment Division - Chemicals.

          Motion to approve.

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

     45.  Approval to reject the sole response received from Farias and
          Farias, Inc., Licensed U.S. Customhouse Brokers, on behalf of
          the South Texas Regional Waste Management Project, for the
          Request of Proposals from Land Property Owners and Realtors
          for available undeveloped ranch land to be purchased for the
          development of a Municipal Solid Waste Type I Landfill and to
          re-advertise. The sole response received is for land outside
          the Webb County Limits and does not meet the requirements of
          the Request for Proposals (RFP).  Funding is available from
          the 1998 CO Issue Land.

          Motion to approve.

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

     46.  Approval of selection of consultant and authorization to
          award an engineering contract to Mejia Engineering Company,
          Laredo, Texas, for an amount not to exceed $17,060.00 to
          provide consulting services for the construction phase of the
          project, contract administration, and revision and
          preparations of plans and specifications with cost estimates
          for the Calton Road Widening and Signalization from IH-35 (San
          Dario) to halfway between San Francisco Avenue to Yeary
          Street. Funding is available in the Capital Improvement Fund
          Calton Road Widening and Signalization.

          Motion to approve.

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

     47.  Approval of change order no. 1, a net increase of $2,457.72,
          for the balance of quantities actually constructed in place
          with an increase primarily in street milling, acceptance of
          the 1997-98 Street Recycling Project (151.5 Blocks), and
          approval of final payment in the amount of $144,880.52 to
          Cutler Repaving, Inc., Lawrence, Kansas. The original contract
          amount was 292,485.96. This change order brings the total
          contract amount to $294,943.68. Funding is available in
          Capital Improvement Fund Street Materials/Cutler Repaving and
          Capital Improvement Fund.

          Motion to approve.

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

     48.  Approval of change order no. 1, a net decrease of $2,430.00,
          credit on the betterment fund, acceptance of the Laredo Health
          Department Canopy for the Perimeter of the W.I.C. Building
          located at 2600 Cedar Avenue, and approval of final payment in
          the amount of $13,057.00 to Cantu-America Construction Co.,
          Inc., Laredo, Texas. The original contract amount was
          $133,000.00.  This change order brings the total contract
          amount to $130,570.00.  Funding is available in the Health
          Fund Retainage Payable and Health Building.

          Motion to approve.

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

     49.  Approval of change order no. 4, a net increase of $59,374.00
          for the balance of quantities actually constructed in place,
          primarily for the installation of a sanitary sewer squeegees
          on the sludge thickener collector mechanisms and other related
          improvements, and payment for standby, acceptance of the
          Jefferson Street Water Treatment Solids Handling Improvements
          Project and approval of final payment in the amount of
          $154,299.00 to Lambda Construction Company, New Braunfels,
          Texas. The original contract amount was $2,451,300.00.  This
          change order brings the total contract amount to
          $2,686,374.00.  Funding is available in the Waterworks System
          '94 Bond; Waterworks System Retainage Payable and in the
          Waterworks System '97 Bond Sludge Disposal Jefferson.

          Motion to approve.

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

     50.  Approval of amendment no. 1, an increase of $7.323.50 for
          additional design and surveying services not part of the
          original scope of work of the engineering contract with
          Sherfey Engineering Company, Laredo, Texas, for the Airport
          Medical Park Infrastructure Improvements, a U.S. Department of
          Commerce Economic Development Administration (EDA) Project No.
          08-01-03080. The original contract amount was $95,500.00.
          This amendment brings the total contract amount to
          $102,823.50.  Funding is available in the EDA Airport/Medical
          Park Project Engineer Fees.

          Motion to approve.


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

     51.  Amending the HOME Investment Partnerships Program Policy and
          Procedures Manual as it pertains to Downpayment 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 sale price 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 sale price for a minimum of: 1,200 square feet would be
             a maximum of $64,000; 1,000-1,199 square feet would be a
             maximum of $59,000; and 850-999 square feet would be a
             maximum of $53,000.
          4) Recommend that assisted homebuyer make a minimum investment
             of $1,000.
          5) Recommend that assisted homebuyer enroll and complete
             homebuyers education course and that no more than $50 be
             used from downpayment 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 to 36 months after first
          lien is paid.

          Christine Tovar with Valley Mortgage advised Council that she
          had contacted Joe Castillo with Fair Housing at HUD and he
          stated the following:

               "If the policy limits the home buying capacity of a
                certain class, in this case being of the 60% of
                median income, it may be impacting the Fair Housing Act.
                Current guidelines state that if a family qualifies for
                the down payment assistance program they are free to
                find a home anywhere in the city.  And the same applies
                to the square footage as these have been established by
                the federal government."

          Motion to amend by deleting provisions #2 and #3.

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

          Motion to approve as amended.

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

     52.  Refund of property tax to Arturo Nicolas Meraz in the amount
          of $1,338.48 due to a WCAD (Webb County Appraisal District)
          clerical error.

          Motion to approve.

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

     53.  Modify the City's Procurement policy to allow the City Manager
          to approve all contracts and change orders not exceeding
          $15,000.00 in accordance to provisions of the State of Texas -
          Local Government Code. The City's current policy sets a limit
          of $10,000.00. This change will mirror the provisions of
          Section 252.021 of the Local Government Code - Competitive
          Bidding and Competitive Proposal Requirements.

          Motion to approve.

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

     54.  Ratifying the City Manager's submittal of a grant application
          to the Texas Department of Health for an Abstinence Education
          Program in the amount of $319,399 ($136,886 non-monetary in-
          kind match by LISD). This program will be partnered by the
          City of Laredo Health Department and the Laredo Independent
          School District.

          Motion to approve.

          Moved : Cm. Bruni
          Second: Cw. Montalvo
          For:  7                  Against:  0         Abstain:  1
                                                       Cw. Moreno

     55.  Authorizing the amendment of the City of Laredo's 1995
          Consolidated Plan to reflect changes in the strategic portion
          of the Plan pertaining to housing and non-housing initiatives
          and funding priorities for the period October 1, 1995 -
          September 30, 1999.

          Motion to approve.

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


  IX. CITY MANAGER'S REPORT

     56.  Presentation and possible action regarding the request by City
          Council to study the feasibility of initiating a speed hump
          pilot project at several residential streets identified by
          City Council to address neighborhood speeding concerns.

          Roberto Murrillo, Traffic Engineer, gave a presentation on the
          Hump Pilot Program that Council instructed staff to initiate.

          Some resident concerns:

              -potential liability for the city
              -potential for complaints of noise
              -emergency vehicles experiencing delays
              -diversion of traffic onto the residential streets
              -potential hazards that such pavement modification may
               create for the children on bicycles and roller blades
              -potential cost of the program if applied city wide and
               paid entirely by the city

          Out of the twelve streets selected by Council, six are being
          recommended by staff for the pilot program:

          -McPherson Drive     Del Mar to Fenwick         5 speed humps
          -Kentucky            Springfield to Colorado    3 speed humps
          -Taylor              McPherson to Maryland      2 speed humps
          -Lyon                Arkansas to Ejido          2 speed humps
          -S. Fenwick          Del Mar to Manor           6 speed humps
          -Ash                 Springfield to Monterrey   2 speed humps

          Recommendations for Council's approval:

          1. Staff recommends installation of speed humps at selected
             areas.
          2. Funding needs to be allocated for this pilot project.
          3. Based on the obtained results recommendations will be
             prepared on whether to continue modification or discontinue
             the speed hump installation program.

          Motion to implement the speed hump pilot program as soon as
          possible.

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

          Cm. Guerra requested that North Avenue and Grove be made part
          of the study.

          Cw. Moreno also requested that San Jose, which is part of the
          Buena Vista Subdivision, be included in the study.

     57.  Informing City Council of Staff recommendations regarding the
          traffic signal studies conducted at the intersections of Calle
          Del Norte and St. James/West Drive, Mann Road and Northgate,
          and McPherson Road and Fenwick Drive, as was requested by City
          Council, with possible action.

          Roberto Murillo, Traffic Engineer, stated that traffic signal
          warrants were only satisfied at the intersections of Calle del
          Norte & St. James/West Drive and McPherson Rd. and Fenwick
          Drive.  After careful evaluation of all the traffic data
          collected it was determined that the overall operation of
          these two intersections could be improved with the
          installation of a traffic signal and it is therefore
          recommended that they be installed at these two intersections.
          The estimated cost for the installation of the traffic signals
          is $90,000.

          Motion to include #3 and #4 as those still pending in the list
          of priorities.

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

     58.  Award a two year extension of a Professional Service Contract
          to Baum & Mejia Certified Public Accountants in the amount not
          to exceed $80,000 per year to perform the annual financial and
          compliance audit of the City of Laredo for fiscal year ending
          September 30, 1998 and 1999.

          Motion to approve the awarding of a two year extension of a
          Professional Service Contract to Baum & Mejia.

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

     59.  Presentation by City Manager regarding the support from Laredo
          Development Foundation on the 1/4 economic development sales
          tax with two provisions.

          Miguel Conchas, President of the Chamber of Commerce, informed
          Council that the Economic Development Committee made a
          presentation to the Chamber of Commerce Executive Committee
          requesting their support of the 1/4 cent sales tax and asked
          that chamber staff do a survey.  The survey was sent to
          members and 126 responded.  The results of the survey
          indicated that the majority were in support but with
          stipulations.

          The stipulations requested by chamber members were a time
          limit to be put on the tax; a specific listing of the projects
          that are to be funded with the tax; and stronger representa-
          tion from the private sector.

          Florencio Pena, City Manager, informed Council that staff had
          worked with committee members to prepare the ordinance for
          their review and stated that the ballot that was being
          proposed had five basic elements that could be undertaken.

          Cm. Alvarado expressed concern that certain issues were not
          addressed like infrastructure, traffic concerns, and other
          major projects that may be needed.

          Cw. Moreno concurred with Cm. Alvarado and recommended that
          transportation projects should be made part of No. 1 of the 5
          basic elements.

          Jaime L. Flores, City Attorney, stated that the purpose of No.
          1, is broad and very flexible and added that he would caution
          in being specific, if it begins to define certain areas it
          would seem as a purpose for listing of some projects.  It is
          drafted to be very general to include everything that could be
          funded.

          Esterina Pulido requested that Council approve the tax
          increase and described it as the best opportunity to create
          funds that will make Laredo more competitive in South Texas.
          Further stating that it is long overdue to be able to project
          the image that should accompany our historic city which is
          known as, "The Gateway to Mexico".

          A resolution passed by the Laredo Development Foundation
          stressed their strong support of the tax increase and the
          establishment of an Economic Development Corporation under
          article 5190.6.(4B) of the Development Corporation Act of 1979
          provided that:

               (a)  the tax will be levied for a limited amount of time
                    (such as 5 years) to permit Laredo's voters and tax
                    payers the right to review and vote on the
                    continuance or dissolution of the Economic
                    Development Corporation, and

               (b)  the 7-member Board of Directors appointed by the
                    City Council to administer the Economic Development
                    Corporation will be comprised of 5 representatives
                    of Laredo Business and Civic Organizations and 2
                    members or representatives of members of the City
                    Council, notwithstanding the fact that the
                    Development Corporation Act allows the City Council
                    to remove these Directors without cause.

     60.  Presentation of a draft Comprehensive Stormwater Management
          Ordinance(s) and Stormwater Management Guidance Manual by the
          consultant Carter and Burgess, Inc., Houston, Texas per the
          City's National Pollution Discharge Elimination System (NPDES)
          storm water requirements. The ordinance(s) and guidance manual
          are the initiation of the Stormwater Master Planning Process.

          Gabriel Martinez with the City Engineering Department stated
          that Council action taken back in May 1997 requested a draft
          of the Storm Water Management Ordinance.  The purpose for
          preparation of this document is to:

               -control adverse effect of the storm water run-off
               -control water effects and erosion
               -improve quality of ground water and to protect surface
                water, and
               -comply with federal and state requirements.

          Mr. Eric Hall from Carter & Burgess, Inc. gave a presentation
          to Council and stated that the final draft of the Ordinance
          and Guidance Manual have been submitted to City Council and to
          Laredo Builders Association.  Further stating that the final
          ordinance with changes will be submitted to Planning & Zoning
          for their approval by the end of August.  Also, the final
          Guidance Manual for Council's approval will be ready by the
          end of August.

          Florencio Pena, City Manager, asked Mr. Hall if this ordinance
          is adopted, will it meet specific design standards for our
          ponds?  Further adding that Council's concern was that
          spillways, pressure points, and embankments be made of
          concrete.  Mr. Hall was to check on this because he was not
          sure what the specifications called for.

          Cm. Bruni requested to know who would be in charge of the
          maintenance on these ponds?  He further stated that the pond
          close to McPherson Road had 4 to 5 of water, worn tires,
          weeds, and no fence around it.

          Florencio Pena, City Manager, stated that current standards do
          not require fencing but that a notice had been sent to the
          developer to clear the weeds and clean up the area.

          Cm. Bruni requested to know for the record who the developer
          was?

          Riazul I. Mia, Acting Environmental Manager, came forth to
          answer Cm. Bruni's question and explained that letters had
          been sent to Foster Engineering, Consultants and to Mr. Del
          Trautmann, Developer, advising them that their design
          indicated that they were to build a spillway and put up a
          fence.  Adding that these were enforcement issues that needed
          to be addressed in the new ordinance.

          Cm. Bruni proposed a motion to draw down from the developers
          letter of credit and have the city build the spillway and put
          a fence around the pond.  Cw. Montalvo stated that she would
          second for discussion.

          Mayor Flores opened the item for discussion.

          Cm. Galo requested that the developer be notified and be
          instructed to comply with their design or the city would draw
          from their letter of credit to build the spillway and put up a
          fence.

          Mayor Flores asked Jaime L. Flores, City Attorney, if they
          could proceed with a motion if it was not part of the agenda?
          Mr. Flores advised Council that it was not unless the motion
          instructs staff to proceed to inform the developer to comply
          with requirements or city to draw on letter of credit which
          would be the proper procedure.

          Motion to instruct staff to proceed to inform the developer to
          comply or city will draw on letter of credit to build spillway
          and put up fence.

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

     61.  Authorizing the City Manager to submit an application to the
          Federal Aviation Administration requesting that the Laredo
          International Airport be redesignated an eligible airport for
          participation in the Military Airport Program grant program.
          Applications must be received by FAA on or before
          June 26, 1998.

          Motion to approve.

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

     62.  Informing the City Council of the proposed construction of a
          detention pond at South Development Industrial Park, Unit II
          located at South of Highway 359 and east of the Bob Bullock
          Loop.

          Motion to construct a detention pond at South Development
          Industrial Park, Unit II located at South of Highway 359 and
          east of the Bob Bullock Loop.

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

     63.  Status report on the potential privatization of the Utilities
          Department. Presenting the results of the proposal evaluation
          and interviews and selection of Malcolm Pirnie Inc., to be the
          firm that will conduct an operational assessment of the
          department, determine the feasibility of privatization and
          recommend intermediate steps as appropriate.  Requesting
          authorization to proceed with negotiations.

          Fernando Roman, Utilities Director, reported to Council that
          after careful evaluation of the three firms interviewed for
          possibility of achieving operational savings, Malcolm &
          Pirnie, Inc. provided a neutral type of analysis that will
          incorporate savings; therefore, it is recommended that the
          contract for the study be awarded to this firm.  Estimated
          cost of the study is approximately $100,000.

          Cm. Bruni expressed concern and stated that he was against the
          privatization altogether.  Cw. Montalvo concurred with Cm.
          Bruni.

          Motion to table indefinitely.

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

     64.  Status reports regarding the implementation of the City of
          Laredo FAR PART 150 Airport Noise Compatibility Program and
          scheduling of neighborhood meetings.

          Jose Flores, Airport Director, reported that staff is
          developing a plan of action to start implementation of this
          program to present to Council for approval at next scheduled
          meeting on July 6th.  Should Council approve, it will then be
          forwarded to FAA for their approval by mid to latter part of
          July.

          Staff is presently in the process of receiving bids for the
          parallel taxi way having expedited the bid process from 30 to
          15 days to be due on June 26th.  Grant monies of $5 million to
          be received by first week of July.

     65.  Presentation with possible action regarding setting Airport
          Rates and Charges to be paid by the airlines for use of the
          new airport passenger terminal.

          Jose Flores, Airport Director, informed Council that the three
          airlines providing schedule passenger service are requesting
          that the proposed rental rates and charges be reduced and that
          joint use space not be charged.

          Staff proposes the following changes:

          1.   That the proposed rate of $1.25 per square foot per month
               for joint use space be reduced to $0.95 for the first
               twelve months, increased to $1.05 during the next twelve
               months and increased to $1.15 during the next twelve
               months, and increased to $1.25 effective the 36th month.

          2.   That the passenger boarding bridge charge of $20.00 per
               use be waived for the first twelve months.

          3.   That the $0.40 charge per passenger fee for use of the
               federal facilities be waived for the first twelve months.
               This is a new charge.

          4.   That the $20.00 per hour security fee be waived during
               the first twelve months, and that the security fee be
               phased in over next two years.  This is a new charge, the
               airport has been providing this service to the airlines
               at no charge.

          5.   The exclusive use space monthly rent of $1.25 per square
               feet remains the same.

          6.   That the landing fee be increased from $0.25 to $0.40 per
               thousand pounds gross landed weight.

          Mr. Flores further stated that they had gone before the
          Airport Advisory Board who requested that a motion be made to
          table the item to allow staff more time to negotiate with the
          airlines.

          Cm. Bruni stated that he opposed all the reducing and waiving
          of fees that was being proposed by staff when air fares from
          Laredo are higher than other municipalities in the state and
          one of the most profitable routes is from Laredo to Houston.
          He continued to state that it is fine that the city is wanting
          to attract jet service but that subsidizing the airlines is
          not the correct way to do it.  Adding that he wished that the
          Airport Advisory Board demand that Continental Airlines use
          the equipment that is being used in Dallas' Lovefield.

          Cm. Valdez pointed out that the airport director and the
          Airport Advisory Board have worked with the airlines in good
          faith but that they should request that they either lower
          their rates or provide the service that Laredo should be
          getting.

          Cm. Alvarado concurred with Cm. Bruni and Cm. Valdez and
          stated that staff should look into checking to see what other
          cities are doing about air fares.

          Continental Airlines Representative Art Barkley stated that he
          had met with Mr. Jose Flores and thought that the meeting had
          been very productive and that there was a need to continue to
          do that to reach a viable plan that would be supported by
          Continental Express.  Mr. Barkley went on to explain that he
          cautioned Council against focusing on rates that are set by
          per square foot rate.  Adding that a more reasonable target,
          that other airlines look at, is cost per plane passenger rate.
          Further stating that if a market study would be done of Laredo
          and other cities of same size they would show that the rates
          are very high.  Continental rates are approximately $12,000.00
          per year and the proposal on the table is over $100,000.00, a
          very large increase considering revenues.

          There was no action taken.

   X. COMMUNICATIONS

          None.

  XI. CITY COUNCIL PRESENTATION AND DISCUSSION

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

      A.  Requests by Council member Alfredo Agredano

          1. Discussion and possible action regarding replacement of
             fencing for Garcia-Vela Field for All Star Tournament.

             Cm. Agredano stated that he had gotten a copy of a letter
             addressed to Mayor Flores from Ricardo Gonzalez, President
             of the American Little League in which he thanks Mayor
             Flores for visiting the Little League Park.  Also, Mr.
             Gonzalez requested to know what the status was on the
             fencing of the Garcia-Vela Field.

             John Viduarri, Parks & Recreation Director, explained that
             the request was for 212 feet of fencing but that the
             current contract with Little League, as well as the other
             nine leagues, stipulates that they are to be responsible
             for the maintenance of all fencing.  Mr. Vidaurri further
             stated that the purpose of placing this item on the agenda
             was to have Council authorize a variance for the current
             contract so that staff can proceed with the fencing.

             Florencio Pena, City Manager, concurred with Mr. Vidaurri
             and further recommended that perhaps it would be wise to
             set aside a certain amount of money for All Star Games on
             next year's budget, but that the amount is not to be
             exceeded.

             Motion to provide the money to fix the fence.

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

      B.  Requests by Council member Louis H. Bruni

          1. Discussion and possible action on enforcing the City of
             Laredo truck route.
             (Co-sponsored by Councilman Eliseo Valdez Jr.)

             Cm. Bruni stated that 18 wheelers need to be removed from
             the non-truck routes and the ordinance be enforced.

             Police Chief Agustin Dovalina stated that officers have
             been advised to be aware of the tractor truck route
             violations.  Officers have issued 200 to 300 violations in
             the last six months.  He further added that there were
             provisions on the ordinance to provide operators of these
             vehicles to deviate from the truck route on certain
             instances.

             Chief Dovalina then advised Council that his department
             would continue to monitor the problem as much as possible
             with available manpower.

             Cm. Bruni stated that there was an ordinance that will be
             going into effect on July 27th, and asked Chief Dovalina to
             make sure that his officers got a copy of this ordinance
             and to make sure that they enforce it.

          2. Status report on the extension on Arkansas Street, with
             possible action.

             Gabriel Martinez, from the Engineering Department, reported
             that the project is 30% complete in terms of work that is
             outlined in the plans.  The contractor has been working
             consistently but have had some delays that were beyond
             his control.  Some delays have been with the modifications
             of the post office parking lot that were not drawn on the
             original plans but were added on as additional work, others
             were utility conflicts.

             Mr. Martinez further stated that he had instructed the
             contractor to make a formal request for an extension on the
             due date to present to Council for approval.  Also,
             reported that Phase I, up to Bartlett, should be completed
             by end of July.

          3. Discussion and possible action on the lack of street
             striping in District II.

             Cm. Bruni stated that he wanted a report from staff on the
             striping of streets on his district.

          4. Confirmation of the appointment of Molly Hall Alegria and
             Tammi Casso to the City of Laredo Tree Board USA.

             Motion to confirm.

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

      C.  Requests by Council member John C. Galo

          1. Discussion and possible action on the cleanup of Chacon
             Creek. (Co-sponsored Cm. Alfredo Agredano)

             Cm. Galo requested that Chacon Creek be cleaned up stating
             that the area has been used for dumping of all sorts of
             trash from used furniture to old worn tires.  Being that
             Chacon Creek has a long stretch perhaps the clean up could
             start by the river's edge.

             Florencio Pena, City Manager, replied that staff would need
             to look at a cost estimate of how much it would cost to get
             it cleaned up and also for the maintenance afterwards.  He
             further stated that he would get information to present to
             Council at the next scheduled council meeting.

          2. Request for a traffic study on Meadow concentrating from
             Market South for consideration on identifying possible
             locations for traffic control devices.
             (Co-sponsored Cm.  Alfredo Agredano)

             Roberto Murillo, Traffic Engineer, stated that he will
             provide a study and report back to Council.

      D.  Requests by Council member Eliseo Valdez Jr.

          1. Discussion with possible action on improving street light
             illumination on Saunders as part of the Highway 59
             improvements.

             Roberto Murillo, Traffic Engineer,  reported that funding
             is available from Meadow to Ejido and are presently working
             with TX DOT to install underground lighting.  For lighting
             West of Meadow staff has contacted Central Power & Light
             and other utilities since there are utility poles in this
             area.  Further stating that a proposal and a cost estimate
             could be requested from CP&L to increase the lumens in that
             area and bring back a report to Council.

          2. Discussion with possible action on requesting that the
             water utilities department provide self addressed envelopes
             with the bills for the convenience of the elderly and all
             those who do not have transportation.

             Mr. Jose Ortiz spoke on the benefit of the City providing
             returned self addressed envelopes for the convenience to
             the elderly and those without transportation.

             Motion to approve its implementation.

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

          3. Request for a report on what our share of drug seizure
             monies have been this year with possible action on a
             request that more of these monies be used for the purchase
             of unmarked cars for use in the establishment of special
             task forces that some of our special grants provide for us.
             (Co-sponsored by Cm. Consuelo "Chelo" Montalvo)

             Fructoso San Miguel, Assistant Chief of Police, reported
             that seizure monies for 1997-98 were $566,000.  Further
             reminding Council that these monies cannot be spent or used
             until it is readily available.

             Mayor Flores asked Mr. San Miguel how much of the $566,000
             had already been spent?

             Mr. San Miguel stated that the money had been used for the
             purchase of 8 patrol cars, 12 unmarked cars, computers,
             weapons, bullet proof vests, and portable 2-way radios, so
             most of it has already been spent.

             Chief Dovalina announced that he had received notification
             from the Department of Justice COPS Universal Hiring
             Program Grant Award for a three-year grant for 20 new
             police officers.

          4. Request for information or update on the status of the most
             recent FEMA (Federal Emergency Management Agency) studies
             with possible action on expediting the completion of the
             study.

             Cm. Valdez explained that this was a map revision on the
             Zacate Creek and Hillside area.

             Keith Selman, Planning & Zoning Director, gave a
             presentation of the area map that was presented to FEMA and
             stated that they had a problem with the study because it
             was not done with an approved model.  What was used was a
             two dimensional model which was not an acceptable methodo-
             logy.  Don Morrison, Consultant Engineer, walked the map
             through with FEMA to get it revised.

             Cm. Valdez instructed staff to do everything possible to
             complete the study.  He further stated that residents in
             that area are having to renew their flood insurance with
             increased rates.

             Benny Salinas, Building Inspector, informed Cm. Valdez that
             a letter had been written to the lady that had requested
             information on this matter.  The letter specified that her
             residence was out of the flooding area so that she could
             take to her insurance and mortgage companies.

             Motion to advertise as Public Notice or on Public Access
             and advise residents in this area to call the Building Code
             Enforcement Division for information on Map Revision for
             the Zacate Creek and Hillside area.

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

      E.  Requests by Council member Joe A. Guerra

          1. Discussion and presentation by Del Trautmann on detention
             ponds in northeast Laredo with possible action.

             Del Trautmann, representing the owners of Lago Del Mar
             Development in North Laredo explained that the purpose of
             his presentation was to respond to the initiation of a
             moratorium amendment to the subdivision ordinance involving
             regional detention, specifically the area northeast of
             McPherson which is the upper Zacate Creek watershed area.

             Mr. Trautmann went on to explain that this presentation
             would give a brief explanation of what detention is and
             what it is not; an overview of what is the upper Zacate
             water shed area; comments made on an engineering study made
             a few years ago; show what has been done about detention in
             that area; and finally, what is proposed to be done and
             what is being held up.

             Cm. Bruni advised Mr. Trautmann that he had been
             misinformed because there was no moratorium.  Further
             stating that the reason his detention pond was stopped from
             being built was because he was in violation of a city
             ordinance.

             Jaime L. Flores, City Attorney, advised that the motion
             instructed staff to review and bring back a study and added
             that what would be in order would be to reconsider that
             instruction to staff.

             Florencio Pena, City Manager, clarified that the
             instruction was to develop policies and procedures
             necessary to consider establishing a moratorium, east on
             McPherson on the Zacate Creek water shed.  Mr. Pena further
             explained that Council can establish a moratorium if there
             is a public need to protect the safety and welfare of the
             community.

             He went on to explain that the reason the construction of
             the detention pond on the east side was stopped is because
             the final plat was not approved by Council; therefore,
             there was no permit to build.  The developer was cited for
             building without a permit.

             Cm. Guerra stated that he had received several calls from
             developers stating that they were concerned about the
             moratorium issue.  He added that he would propose a motion
             to delete the word "moratorium" from the previous motion
             and to allow staff to continue with the study and
             developers to continue with development.

             There was no second.

             Cm. Guerra read the motion made by Cm. Bruni and proceeded
             to propose a second motion to rescind previous motion and
             to instruct staff to proceed with the study that is
             presently underway on the Zacate Creek water shed and bring
             recommendation back to Council.  But at the same time allow
             developers to continue with development.

             No action was taken on this motion.

             Cm. Guerra then stated that his motion would read as
             follows:

                 I hereby move to rescind the motion passed at the June
                 1st, 1998, City Council Meeting whereby staff was
                 instructed 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. Guerra
             Second: Cm. Galo
             For:  6               Against:  2         Abstain:  0
                                   Cm. Bruni
                                   Cw. Montalvo

      F.  Requests by Council member Consuelo "Chelo" Montalvo

          1. Discussion and possible action regarding obtaining an
             engineer for plans and specifications to redesign Zaragoza
             Street between Flores and Convent.

             Motion to instruct staff to get a cost estimate to have a
             temporary emergency gate placed on Zaragoza Street between
             Flores and Convent.

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

          2. Recognition of Judge Hector Liendo for his exemplary
             community work.

             Mayor Flores and Cw. Montalvo publicly recognized Judge
             Hector Liendo and presented with the 7 Flags Certificate of
             Appreciation.

      G.  Requests by Council member Mario G. Alvarado

          1. Discussion and possible action showing City Council support
             for the inclusion of the first phase of the Outer Loop
             (Hachar Road) into the Transportation Improvement Plan
             (TIP) of the Laredo Urban Transportation Study (MPO).

             Motion to have formal action taken that whoever represents
             the Council on the MPO has direction from Council to
             proceed in this area.

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

             Motion to amend to include entire Outer Loop (Hachar Road)
             from Mines Road to IH 35 on the study as part of TIP to be
             built within three years.

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

          2. Discussion and possible action on the city wide
             participation in the "National Night Out" Project.

             Cm. Alvarado informed Council that this project would
             provide the opportunity to form a partnership with the
             community, the private sector, and law enforcement to
             create awareness on crime prevention.  He further explained
             that this was a national project that should be implemented
             city wide and invited all council members to participate
             and use this as a springboard to attract other crime
             prevention programs for the city of Laredo.

             Captain Blasa Blum made a presentation and reiterated what
             Cm. Alvarado had previously stated and advised Council that
             the National Night Out is set for Tuesday, August 4th from
             7:00 to 10:00 p.m.  and asked for Council's support for
             this project.

             Motion to participate on a city wide basis on the National
             Night Out Project.

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


 XII. PUBLIC HEARINGS

     67.  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

          Mr. Rodolfo Hernandez, property owner, spoke in favor of being
          allowed the zone change.

          Motion to close the public hearing and approve a conditional
          use permit.

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

          Ordinance Introduction: Cm. Galo

     68.  Public hearing amending the Parks and Recreation Department
          97-98 budget to reflect the hiring of five additional seasonal
          employees (four lifeguards and one pool supervisor).  This
          amendment to the budget will be necessary to accommodate a
          proposed inter-local agreement between the City of Laredo and
          Laredo Community College. This agreement between the parks and
          Recreation Department and Laredo Community College for use of
          the LCC swimming pool stipulates the various responsibilities
          of each entity and allows for the swimming pool to be staffed
          with seasonal employees paid by the City for use by the
          general public.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Parks and Recreation Department 97-98
          budget to reflect the hiring of five additional seasonal
          employees (four lifeguards and one pool supervisor).  This
          amendment to the budget will be necessary to accommodate a
          proposed inter-local agreement between the City of Laredo and
          Laredo Community College. This agreement between the parks and
          Recreation Department and Laredo Community College for use of
          the LCC swimming pool stipulates the various responsibilities
          of each entity and allows for the swimming pool to be staffed
          with seasonal employees paid by the City for use by the
          general public.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and approve.

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

     69.  Public hearing amending the contract with the Texas Department
          of Health and budget revision in the amount of $46,440.00 in
          additional funds for "Los Dos Laredos" TB Binational Project
          of the City of Laredo Health Department and extension of grant
          period through December 31, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the contract with the Texas Department of
          Health and budget revision in the amount of $46,440.00 in
          additional funds for "Los Dos Laredos" TB Binational Project
          of the City of Laredo Health Department and extension of grant
          period through December 31, 1998.

          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. Galo
          For:  8                  Against:  0              Abstain: 0

          Ordinance Introduction:  City Council

     70.  Public hearing amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $12,950.00 for the purchase of a
          canine, canine maintenance, training and safe for the
          Financial Disruption Task Force for the period of January 1,
          1998 and ending December 31, 1999.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $12,950.00 for the purchase of a
          canine, canine maintenance, training and safe for the
          Financial Disruption Task Force for the period of January 1,
          1998 and ending December 31, 1999.

          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: Cw. Moreno
          For:  8                  Against:  0         Abstain:  0

          Ordinance Introduction: City Council

     71.  Public hearing amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $46,094.00 from Laredo Community
          College for implementing the Stormwater Management and Ecology
          Demonstration Park.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $46,094.00 from Laredo Community
          College for implementing the Stormwater Management and Ecology
          Demonstration Park.

          Motion to open the public hearing.

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

          Ordinance Introduction: City Council

     72.  Public hearing amending the City of Laredo Code of Ordinances,
          Chapter 17 LIBRARY, Article 1, IN GENERAL, to include a new
          section entitled "Fines and Fees for Library Services." This
          will allow for the collection of overdue fines, lost or
          damaged library materials, copier vending fees, microfilm
          copier fees; and new fees associated with new services at the
          library such as: fee-based database searches, the use of
          meeting rooms, computer printouts, pen and pencil vending
          machines, audio-visual equipment use, and security, custodial
          and media technician services at the Laredo Public Library,
          providing for publication and effective date.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo Code of Ordinances,
          Chapter 17 LIBRARY, Article 1, IN GENERAL, to include a new
          section entitled "Fines and Fees for Library Services." This
          will allow for the collection of overdue fines, lost or
          damaged library materials, copier vending fees, microfilm
          copier fees; and new fees associated with new services at the
          library such as: fee-based database searches, the use of
          meeting rooms, computer printouts, pen and pencil vending
          machines, audio-visual equipment use, and security, custodial
          and media technician services at the Laredo Public Library,
          providing for publication and effective date.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance introduction: City Council


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

          Motion to recess and convene as The Laredo Mass Transit Board.

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

     73.  98-RT-090  Authorizing the City Manager to accept and execute
                     a 1997-1998 urbanized area formula program grant
                     (No. TX-90-X438) from the Federal Transit
                     Administration in the maximum amount of
                     $2,399,305.00 (Federal Share); and providing for
                     grant funds to be deposited in the Mass
                     Transit Department Accounts.

                     Motion to approve.

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

     74.  Rescinding the two year service contract awarded on 9/2/97, to
          Solis Security Specialist, Laredo, Texas, for providing
          security guard services at the Transit Center and El
          Metro Operations and Maintenance facility, and authorize that
          new bids be solicited.

          The transit system received notice from Mr. Victor Solis,
          owner of Solis Security Specialist that he could no longer
          provide security guard services at these locations. On an
          interim basis, the System has been utilizing the services of
          the City's contract vendor, Walker Security. Staff has
          developed new bid specifications and is requesting
          authorization to solicit new bids for awarding a two year
          service contract.

          Motion to approve to rescind the two year service contract to
          Solis Security Specialist.

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

          Motion to adjourn as the Mass Transit Board and reconvene as
          the City Council.

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


 XIV. ADJOURNMENT

         Motion to adjourn.

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

         Adjournment time: 9:50


         I hereby certify that the above minutes contained in pages 01
         to 34 are true, complete, and correct proceedings of the City
         Council Meeting held on the 15th day of June, 1998.



                                          _________________________
                                            Gustavo Guevara, Jr.
                                              City Secretary