CITY OF LAREDO
                          CITY COUNCIL MEETING
                                M98-R-28
                              JULY 20, 1998
                                5:30 P.M.


                                 MINUTES



   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, Jr.,          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 June 22, 1998
     City Council Meeting July  6, 1998

     Motion to approve.

     Moved : Cm. Guerra
     Second: Cm. Alvarado
     For:  7                  Against:  0         Abstain: 0
     Cw. Moreno was not present at this time.
     Cw. Moreno came in at 6:10 p.m.
 
   V. INTRODUCTORY ORDINANCE

      3. Second reading of Ordinance granting to Medina Electric
         Cooperative, Inc., its legal representatives, successors,
         lessees and assigns, as the grantee, herein, certain powers,
         licenses, rights-of-way, privileges and franchise to construct
         and maintain in the City of Laredo, Texas, as now or hereafter
         constituted, and electric power utility system in said city and
         to use the streets, avenues, easements, rights-of-way, alleys,
         highways, sidewalks, bridges and other structures and places
         and public grounds in said City for a period of ten (10) years
         with one (1), ten (10) year renewal period subject to
         renegotiation by the parties; and prescribing certain rights,
         duties, terms and conditions herein mentioned and providing for
         the payment to said City of a percentage of certain receipts of
         grantee from its operations therein; and providing for the
         acceptance of this ordinance by grantee; and containing a
         savings clause, and providing for publication and an effective
         date.

         Ordinance Introduction: City Council

      4. Ordinance designating as a one-way northbound the 200 block of
         Flores Avenue between Grant Street and Zaragoza Street
         providing for the installation of appropriate signs to indicate
         one-way traffic in the designated direction and providing for
         publication and effective date.

         Ordinance Introduction: City Council

      5. Closing to vehicular traffic that section of the 1100 Block of
         Zaragoza Street between Convent and Flores Avenues and
         designating its use as a pedestrian walkway and upon closing of
         said street, to vehicular traffic, the City will retain the
         entire property as a utility easement and providing for an
         effective date.

         Ordinance Introduction: Cw. Montalvo

      6. Ordinance authorizing the City Manager to execute all necessary
         documents to effectively convey title to the State of Texas for
         one tract of land containing 1.4364 acres of land, more or
         less; and having been acquired in fee simple for the
         construction of an access road connecting the Laredo Northwest
         International Fourth Bridge and related facilities to
         Interstate Highway 35.  Said tract of land being situated in
         Porcion 20, Abstract 48, Webb County, Texas; and more
         particularly described by metes and bounds; and providing for
         an effective date. (Approval of Resolution No. 98-R-117 before
         consideration of this Ordinance)

         Ordinance Introduction: City Council


   VI. FINAL READINGS

       Motion to waive the final readings of ordinances #98-0-181,
       #98-0-182, #98-0-183, #98-0-184, #98-0-185, #98-0-186, and
       #98-0-187.

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

      7. 98-O-181  Ordinance closing as a public easement a 17.7 feet
                   wide alley dedicated for public use in Block 795,
                   Eastern Division, City of Laredo, Webb County, Texas,
                   which traverses the middle of said block from east to
                   west through its entire length, and abuts the north
                   side of Lots 7,8,9, 10, 11 & 12, and abuts the south
                   side of Lots 1, 2, 3, 4, 5, & 6; providing for the
                   reversion of the public's interest in said alley to
                   the abutting owners.  (City Council)

                   Motion to approve Ordinance #98-0-181.

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

      8. 98-O-182  Ordinance closing as a public easement that section
                   of Ejido Avenue between Frost and Lyon Streets also
                   known as the 2900 block of Ejido, situated in the
                   Eastern Division, City of Laredo, Webb County, Texas.
                   (City Council)

                   Motion to approve Ordinance #98-0-182.

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

      9. 98-O-183  Ordinance authorizing the City Manager to execute all
                   necessary documents to effectively convey title to
                   the State of Texas for one tract of land containing
                   99.611 acres of land, more or less. Said tract of
                   land being described as:
                   Parcel 1 - containing 30.163 acres of land, more or
                              less,
                   Parcel 2 - containing 67.602 acres of land, more or
                              less, and
                   Parcel 3 - containing 1.846 acres of land, more or
                              less;
                   and having been acquired in fee simple for the
                   construction of an access road connecting the Laredo
                   Northwest International Fourth Bridge and related
                   facilities to Interstate Highway 35.  Said tract
                   being located in Porcion 20, Abstract 48, Webb
                   County, Texas; being generally described by metes and
                   bounds.  (City Council)

                   Motion to approve Ordinance #98-0-183.

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

     10. 98-O-184  Ordinance setting the maximum speed limits in that
                   portion between Arkansas Avenue east to the city
                   limits on U.S. Highway 59, within the city limits of
                   Laredo, Webb County, Texas, as defined in TX-DOT
                   Control Section Map 0542-01 as follows:

                   55 MPH from Milepoint 42.755 to Milepoint 42.854
                   50 MPH from Milepoint 42.854 to Milepoint 43.551
                   45 MPH from Milepoint 42.854 to Milepoint 45.382
                   (City Council)

                   Motion to approve Ordinance #98-0-184.

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

     11. 98-O-185  Ordinance authorizing of a Conditional Use Permit for
                   a car wash on Lot 11, Block 229, Eastern Division,
                   located at 1619 Cedar Avenue.
                   (Council member John C. Galo)

                   Cm. Galo stated that the permit was issued for a 1
                   year period and the ordinance should read as such.

                   City Attorney Jaime Flores replied that it will
                   appear as such in the final reading of the ordinance.

                   Motion to approve Ordinance #98-0-185.

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

     12. 98-O-186  Ordinance amending the City of Laredo's 1997-1998
                   Annual Budget in the amount of $125.00 and
                   authorizing the City Manager to accept a donation
                   from the Texaco Corporation in the amount of $125.00
                   for purchasing badges for the Laredo Police
                   Department Canines. This donation will be strictly
                   used for the purchase of these badges and is at no
                   cost to the City.  (City Council)

                   Motion to approve Ordinance #98-0-186.

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

     13. 98-O-187  Ordinance amending the City of Laredo FY 1997-1998
                   Annual Budget to increase the revenues by an amount
                   of $8,300,000.00 received from the Federal Aviation
                   Administration Grant Officer No. 3-48-0136-21 and
                   appropriating $1,616,667.00 from the Airport Reserve
                   Account to match said grant for the purpose of
                   implementing Laredo's FAR Part 150 Noise
                   Compatibility Program and to construct a portion of a
                   parallel taxiway. Total available for noise abatement
                   is $6,250,000.00 and $3,666,667.00, is available for
                   the construction of the parallel taxiway.
                   (City Council)

                   Motion to approve Ordinance #98-0-187.

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

  VII. RESOLUTIONS

     14. 98-R-111  Confirming the appointments of Sylvia Bruni and
                   Sister Mary Welch to the Laredo Women's Commission,
                   and George Beckelhymer to the Ordinance Review
                   Committee by Council Member Alfredo Agredano.

                   Motion to approve Resolution #98-R-111.

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

     15. 98-R-112  Reappointing the nominees Sharyn Jordan, Dr. Stanley
                   C. Green, John Keck, Bonnie Ramirez Lepovitz,
                   Elizabeth J. Gill to the Historic District/Landmark
                   Board by Mayor Elizabeth G. Flores.

                   Motion to approve Resolution #98-R-112.

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

     16. 98-R-113  Authorizing the acceptance of additional funds for
                   the Occupant Protection STEP grant in the amount of
                   $2,500.00 from the Texas Department of
                   Transportation. The City's total matching funds will
                   be $2,500.00.  The funding for this grant will be
                   from October 1, 1997 through September 30, 1998.

                   Motion to approve Resolution #98-R-113.

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

     17. 98-R-114  Authorizing the acceptance of additional funds for
                   the Speed STEP grant in the amount of $4,875.00 from
                   the Texas Department of Transportation.  The City's
                   total matching funds will be $2,625.00.  The funding
                   for this grant will be from October 1, 1997 through
                   September 30, 1998.

                   Motion to approve Resolution #98-R-114.

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

     18. 98-R-116  Declaring the public necessity to acquire the
                   "Surface Only" of 22 parcels of land necessary as
                   right-of-way for the reconstruction of Santa Maria
                   Avenue from Markley Lane to Del Mar Boulevard Said
                   parcels of land being situated on the East and West
                   sides of Santa Maria Avenue from Markley Lane to Del
                   Mar Boulevard in the City of Laredo, Webb County,
                   Texas; being generally described below, and more
                   particularly described by metes and bounds; and
                   authorizing the City Attorney to initiate eminent
                   domain proceedings to acquire said parcel of land if
                   staff is unable to acquire through negotiations due
                   to inability to agree to a purchase price, conflict
                   of ownership, owner refusal to sell, and/or inability
                   to locate the listed owner.

                   PARCEL 1 - Being a 0.1314, more or less, of an acre
                   tract out of a 9.832 acre tract being a part of
                   Estanislado Garza Survey No. 1238, Abstract No. 425,
                   Webb County, Texas.

                   PARCEL 2 - Being a 0.0813, more or less, of an acre
                   tract of land out of the Estanislado Garza Preemption
                   Survey No. 1238, Abstract No. 425, Northern Division
                   of the City of Laredo and same land being out of a
                   9.4675 acre tract recorded in Volume 396, Pages 77
                   thru 86, Webb County Deed Records.

                   PARCEL 3 - Being a 0.0061, more or less, of an acre
                   tract of land out of an 11.1784 acre tract being a
                   part of J.L. Fuentes Survey No. 1026, Abstract 317,
                   Estanislado Garza Survey 1238, Abstract 425, and
                   Agustin Sanchez Porcion 26, Abstract No. 282, Webb
                   County, Texas.

                   PARCEL 4 - Being a 0.0061, more or less, of an acre
                   tract of land out of an 11.1784 acre tract being a
                   part of J.L. Fuentes Survey 1026, Abstract 317,
                   Estanislado Garza Survey 1238, Abstract 425, and
                   Agustin Sanchez Porcion 26, Abstract No. 282, Webb
                   County, Texas.

                   PARCEL 5 - Being a 0.0779, more or less, of an acre
                   tract of land out of a 38.1359 acre tract of land
                   described in deed recorded in Volume 381, Pages 81-84
                   of the Webb County Deed Records; and which tract is
                   out of Agustin Sanchez Porcion 26, Abstract No.  282,
                   M. Diaz Survey 1025, Abstract No. 316, and J.L.
                   Fuentes Survey 1026, Abstract No. 317 in the Northern
                   Division of the City of Laredo.

                   PARCEL 6 - Being a 0.0369, more or less, of an acre
                   tract of land out of a 2.00 acre tract being partly
                   in Block 42 and Block 64, Porcion 26, North Laredo
                   land irrigation and the water company subdivision as
                   recorded in Volume 1, Page 104 of the Webb County
                   Texas Plat Records.

                   PARCEL 7 - Being a 0.0272 of an acre tract, more or
                   less, of land out of Juan F. Garcia, Porcion 25,
                   Abstract 50, and Agustin Sanchez, Porcion 26,
                   Abstract 282, situated in the Northern Division of
                   the City of Laredo, and same land being out of a
                   tract of land containing 3.00 acre tract described in
                   deed to Jaga Motor Co., Inc., recorded in Volume
                   1400, Pages 054 and 055, of the Webb County Deed
                   Records.

                   PARCEL 8 - Being a 0.0173, more or less, of an acre
                   tract of land partly out of a 1.1116 acre tract as
                   per deed dated November 24, 1969, recorded in Volume
                   388, Pages 565-566, Webb County Deed Records.

                   PARCEL 9 - Being a 0.0968, more or less, of an acre
                   tract out of 5.00 acre tract in a deed dated March
                   12, 1971 recorded in Volume 404, Pages 423-424, Webb
                   County Deed Records.

                   PARCEL 10 - Being a 0.0258, more or less, of an acre
                   tract of land out of Casa Del Palmas Motel
                   Subdivision, recorded in Volume 7, Page 70, Webb
                   County Plat Records.

                   PARCEL 11 - Being a 0.0282, more or less, of an acre
                   tract of land, in a deed Hernandez and wife,
                   Armandina Hernandez, recorded in Volume 26, Pages
                   086-090, Webb County Deed Records, original grantee,
                   Juan F. Garcia, Porcion 25, Abstract 50, Webb County,
                   Texas.

                   PARCEL 12 - Being a 0.0712, more or less, of an acre
                   tract of land out of a 3.2485 acre tract, Porcion 25,
                   Original Grantee, Juan F. Garcia, Abstract 50, Webb
                   County, Texas.

                   PARCEL 13 - Being a 0.0092, more or less, of an acre
                   tract of land out of a 0.6830 of an acre tract,
                   Isauro Martinez Plat, Recorded in Volume 7, Page 57,
                   Webb County Plat Records.

                   PARCEL 14 - Being a 0.0638, more or less, of an acre
                   tract of land out of a 3.5375 acre tract Porcion 24,
                   Toribio Rodriguez, Original Grantee, Abstract 268,
                   and Porcion 25, Juan F. Garcia, Original Grantee,
                   Abstract 50, Webb County, Texas.

                   PARCEL 15 - Being a 0.0941, more or less, of an acre
                   tract of land out of a 2.43 acre tract in Porcion 25,
                   Juan F. Garcia, Original Grantee, Abstract 50, Webb
                   County, Texas.

                   PARCEL 16 - Being a 0.0512, more or less, of an acre
                   tract of land out of a 3.8560 acre tract, Eduardo
                   Diaz Subdivision, recorded in Volume 7, Page 83, plat
                   records of Webb County.

                   PARCEL 17 - Being a 0.0063, more or less, of an acre
                   tract of land out of a 0.5695 acre tract out of Block
                   32 and the abandoned R.G.E.P.R.A. R.O. W.  Easement,
                   North Laredo Land Irrigation and the Water Co.
                   Subdivision recorded in Volume 1, Page 104, plat
                   records of Webb County.

                   PARCEL 18 - Being a 0.0938, more or less, of an acre
                   tract of land out of a 4.1431 acre tract partly in
                   Block 32 and the abandoned R.G. & E.P.R.A.  R.O.W.
                   Easement, North Laredo Land Irrigation and Water Co.
                   Subdivision recorded in Volume 1, Page 104, of the
                   plat records of Webb County, Texas.

                   PARCEL 19 - Being a 0.0530, more or less, of an acre
                   tract of land out of a 1.2780 acre tract partly in
                   Block 33 and the abandoned R.G. & E.P.R.A.  R.O.W.
                   Easement, North Laredo Land Irrigation and the Water
                   Company Subdivision in Porcion 25, Juan F. Garcia,
                   Original Grantee, Abstract 50, recorded in Volume 1,
                   Page 104, Webb County Plat Records.

                   PARCEL 20 - Being a 0.0039, more or less, of an acre
                   tract of land out of a 0.3370 acre tract out of Block
                   32 and the abandoned R.G. & E.P.R.A.  R.O.W.
                   Easement, North Laredo Land Irrigation and the Water
                   Company Subdivision recorded in Volume 1, Page 104,
                   Plat records of Webb County, Texas.

                   PARCEL 21 - Being a 0.0605, of an acre tract of land
                   out of a 0.9213 acre tract being partly in Block 33
                   and the abandoned R.G. & E.P.R.A.  R.O.W.  Easement,
                   North Laredo Land Irrigation and Water Company
                   Subdivision in Porcion 25, Juan F. Garcia, Original
                   Grantee, Abstract 50, as per plat recorded in Volume
                   1, Plat records of Webb County, Texas.

                   PARCEL 22 - Being a 0.0495, more or less, of an acre
                   tract of land, out of a 0.2984 of an acre tract
                   partly in Block 33 and the abandoned R.G. & E.P.R.A.
                   R.O.W. Easement, North Laredo Land Irrigation and the
                   Water Company Subdivision, in Porcion 25, Juan F.
                   Garcia, Original Grantee, Abstract 50 recorded in
                   Volume 1, Page 104, plat records of Webb County,
                   Texas.

                   Motion to approve Resolution #98-R-116.

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

     19. 98-R-117  Accepting the donation of a 1.4364 acre tract of
                   land, more or less, from Fasken, Ltd., for the
                   purpose of constructing an access road connecting the
                   Laredo Northwest International Fourth Bridge and
                   related facilities to Interstate Highway 35. Said
                   tract of land being situated in Porcion 20, Abstract
                   48, Webb County, Texas, being more particularly
                   described by metes and bounds.

                   Motion to approve Resolution #98-R-117.

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

     20. 98-R-119  Appointment of Mary Hightower to the Beautification
                   Committee by Councilman Eliseo Valdez, Jr.

                   Motion to approve Resolution #98-R-119.

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

     21. 98-R-120  Declaring the public necessity to acquire the
                   "Surface Only" of 250 foot-wide strip of land
                   (19.7905 acres), more or less, and a 100 foot-wide
                   strip of land (7.9906 acres), more or less.  Said
                   tracts of land being situated between the City-owned
                   251.2262 acre tract landfill tract and Part E-2 of
                   Share 1, A.M. Bruni Estate, respectively, in the City
                   of Laredo, Webb County, Texas; being generally
                   described below, and more particularly described by
                   metes and bounds; and authorizing the City Attorney
                   to initiate eminent domain proceedings to acquire
                   said parcel if staff is unable to acquire through
                   negotiations due to inability to agree to a purchase
                   price, conflict of ownership,  owner refusal to sell,
                   and/or inability to locate the listed owner.

                   Motion to approve Resolution #98-R-120.

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

 VIII.  MOTIONS

     22.  Approval of bid specifications and authorization to advertise
          for bids for the following:

          a) Request for Proposals - Equipment for the new Public Access
             Center

          Motion to approve.

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

     23.  Approval of the construction plans and authorization to
          advertise for bids for the Expansion of the Santo Nino Health
          Center located at 2200 Zacatecas Street with tentative award
          on August 17, 1998.  This project is on a "fast track" basis
          so that completion of the project occurs by December 1998.
          Funding is available in the Health Fund W.I.C. 97/98 Capital
          Outlay/Buildings.

          Motion to approve.

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

     24.  Approval of the construction plans and authorization to
          advertise for bids for the Calton Road Widening and
          Signalization from IH-35 (San Dario) to halfway between San
          Francisco Avenue to Yeary Street with tentative award August
          24, 1998. Funding is available in the Capital Improvement Fund
          Calton Expansion.

          Motion to approve.

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

     25.  Refund on a sewer contract placed in coordination with a
          paving project to the following company:

          a. Neel Title Corporation in the amount of $578.69
             due to a double payment

          Motion to approve.

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

     26.  Award of an architectural/engineering contract to Sepulveda &
          Associates, Inc., Laredo, Texas, for an amount not to exceed
          $419,720.00 for the Public Works Service Center to include
          surveys, platting, preliminary design for infrastructure, site
          grading, streets, utilities, drainage, and preparation of
          plans and specifications, and provide cost estimates for the
          construction of a facility to house the Department of Public
          Works, the Water Utilities Administration Office, and the
          Departments of Traffic and Fleet Management.  Funding is
          available in the 1998 C.O. Issue Public Works Facility.


          Florencio Pena, City Manager, stated that this project was
          initiated as a Phase II Project for the redevelopment of the
          airport property. In 1996, the City of Laredo received a grant
          from the Economic Development Administration, in two parts.

          The first part was to construct a new sewer main from the
          existing Mercy Hospital to the Zacate Creek location.  Also,
          to provide for the extension of Arkansas from Hwy. 59 to
          McPherson.  This project was approved and it is presently
          under construction.

          Phase II of the EDA application was to relocate our public
          works yard in order to allow the development of that property
          for the use of the new hospital once it is operational.  The
          area that had been identified was the location of the public
          works yard at the extension between Daughtery and Bartlett.

          Rogelio Rivera, City Engineer, presented a summary of the area
          of development:

          1.  16,000 sq. ft. for the administrative office building to
              house Public Works.  This also includes 14,000 sq. ft. for
              future expansions, it will have visitors, staff, and city
              vehicle parking area.

          2.  27,000 sq. ft. for the Public Works warehouse for record
              storage, supervisory offices, employee area, city vehicle
              parking area and material areas.

          3.  13,760 sq. ft. for Utilities Building expansion.  There is
              a testing laboratory there already.

          4.  Fueling station, fuel and pump equipment, tank storage
              above ground, and car and truck washing station.

          Included in the infrastructure improvements is a utility storm
          drainage, water, grading and the paving of Daugherty and
          Thomas as service roads.

          Mr. Pena explained that the extension of Thomas is a important
          part of the project as it will provide better circulation to
          Gale Street.  So he was recommending that Council draw down
          from the general fund an approximate $1.5 million to make this
          project whole.  Once exact figures are turned in by the
          architect he would report back to Council.

          Motion to approve.

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

     27.  Award of an engineering contract to Sherfey Engineering
          Company, Laredo, Texas, for an amount not to exceed $19,200.00
          to provide a feasibility study, surveys, design and
          preparation of plans and specifications for an 18 inch
          diameter sewer line on Hillside Road from Yeary Street to IH-
          35 to relieve a 90 block area of sanitary sewer surcharges.
          Funding is available in the Sewer System Wastewater Treatment
          Project Engineer Fees.

          Motion to approve.

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

     28.  Award of a construction contract to the LOWEST BIDDER, Ramex
          Construction Company, Houston, Texas, in the amount of
          $4,556,658.72 for the Laredo International Airport Passenger
          Terminal and Related Airside/Landside Improvements Phase D -
          New Parallel Taxiway, and approval of change order no. 1, a
          decrease of $1,122,539.75 for a net award of $3,396,225.97.
          This project will be funded 90% by Federal Aviation
          Administration (FAA) Funds and 10% Airport Funds.  Funding is
          available in the FAA Noise Abatement New Parallel Taxiway
          Improvement Other Than Building.

          Motion to approve.

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

     29.  Approval of change order no. 2, an increase of $18,784.00 to
          adjust a conflict with the storm sewer, to adjust a 12 inch
          water line crossing at Jarvis Avenue, to realign an 8 inch
          waterline, and add an 8 inch sewer line along Airpark Drive to
          provide for future utility services and avoid cutting of new
          street, and to add 33 working days to the construction
          contract with Pete Gallegos Paving, Inc., Laredo, Texas, for
          the E.D.A. Project No. 08-01-03080 Airport Medical
          Infrastructure Improvements Arkansas Avenue Extension. The
          original construction contract amount was $1,425,343.50.  This
          change order brings the total contract amount to
          $1,494,818.50.  Funding is available in the EDA Airport
          Medical Park Improvements Other Than Buildings.

          Motion to approve.

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

     30.  Approval of amendment no. 1, an increase of $48,000.00 to the
          engineering contract with WSBC Civil Engineers, Laredo, Texas,
          to provide surveys, design, plans and specifications, and cost
          estimates for the construction of a 16 inch water line along
          U.S. Highway 359 to service the City of Laredo Landfill and
          the anticipation of the water services to the colonias located
          on State Highway 359.  The original contract amount was
          $17,270.00.  This amendment will be bring the total contract
          amount to $65,270.00.  Funding is available in the Waterworks
          System '97 Bond Issue.

          Motion to approve.

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

     31.  Amending the contract between the City of Laredo and the
          Border Area Nutrition Council for fiscal year 1997-1998 to
          increase funding from $22,500.00 to $30,000.00.

          Motion to approve.

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

     32.  Authorizing the City Manager to file a certified claim for
          $409,529.28, on behalf of the City of Laredo, agreeing to the
          terms and conditions of the Texas Political Entities Asbestos
          Class Action regarding an asbestos property damage related
          settlement with U.S. Gypsum at the Health Department facility
          at 2600 Cedar.

          Motion to approve.

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

     33.  Award of an engineering contract to Sherfey Engineering
          Company, L.L.C., Laredo, Texas, for an amount not to exceed
          $29,200.00 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
          Cherry Hill Drive widening.

          Motion to approve.

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


  IX. CITY MANAGER'S REPORT

     34.  Advising the City Council and requesting Council's
          ratification of City Manager's authorization of the issuance
          of an emergency purchase order in the amount of $34,000.00, to
          McLean Construction Co., Killeen, Texas, for repairs to the
          main water distribution line at Jefferson and San Dario.  This
          water line, which is one of two that feed the Lyon Street
          water tanks, broke under the drainage culvert.  This
          contractor was contracted to bore under the drainage culvert.

          Motion to ratify the emergency expenditure of $34,000.00.

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

     35.  Presentation of the findings of the Laredo Hazardous Cargo
          Community Risk Assessment and Route Alternatives Analysis.

          Keith Selman, Planning Director, made a presentation stating
          that this item was sponsored by the Laredo Urban
          Transportation Study (LUTS) and the Local Emergency Planning
          Committee (LEPC) and that in conjunction with the City of
          Laredo requested that the study be made to analyze what
          dangers the community is in and what alternatives can be taken
          to alleviate these potential dangers.

          Thirteen (13) risk anlysis factors were taken into
          consideration while evaluating the various route alternative
          plans and their impact on the Laredo population-at-large.
          These factors included an evaluation of the following:

          -population density
          -type of highway
          -exposure potential of a hazardous cargo incident to the
           population
          -local ecology and terrain
          -continuity of transportation routes through the Study Area
          -potential alternative hazardous cargo routes
          -effects of designated hazardous cargo routes on commerce
          -delays in the transportaion of goods and services using
           designated hazardous cargo routes
          -climatic conditions
          -traffic congestion and accident history along the alternative
           hazardous cargo transportation routes within the study area
          -types and quantities of hazardous cargo normally transported
           along the highway/railway routes within the Study Area
          -emergency response capabilities of local fire, law
           enforcement, etc., to respond to hazardous cargo emergencies,
           and
          -public input in the form of comments or concerns

          Mr. Selman continued to explain that currently, there is no
          designated hazardous cargo routes in the Laredo area.  There
          is, however, a City designated truck route plan which utilizes
          numerous roadways throughout Laredo including several downtown
          streets.

          Two recommendations were made:

          1.  To establish a short term hazardous materials routing plan
              to accommodate commerce and terminal access as well as
              border crossing operations.

          2.  To establish a long term hazardous materials routing plan
              to accommodate commerce, terminal access, and border
              crossing operations as well as minimize hazardous material
              exposure to the residential and commercial developments
              with the city limits of Laredo and its Extraterritorial
              Jurisdiction (EJT).

     36.  Presentation of items for consideration by the MPO
          (Metropolitan Planning Organization) Policy Committee, with
          possible action.

          Florencio Pena, City Manager, stated that this item was of
          utmost importance because of the T Bill 21, Transportation
          Equity Act of 1998 that has designated $4 million to the State
          of Texas for infrastructure over the next two years.  This
          money is to go to the MPO.

          Mr. Pena further explained that the city is to submit to TXDOT
          a list of priority projects and project revisions to 1998-2000
          Transportation Improvement Program (TIP).

          The Technical Committee of the Laredo Urban Transportation
          Study has identified the following 12 projects as "Priority
          projects" for the Laredo Urban Area.

           1.  Chihuahua and Guadalupe overpasses
           2.  Additional flyovers at Loop 20/IH35
           3.  FM 1472 Overpass
           4.  Outer Loop
           5.  Cuatro Vientos
           6.  Loop 20 upgrade to urban section
           7.  Hachar Road
           8.  HWY 359/Loop 20 grade separation
           9.  Loop 20 mainlane (interstate standards)
          10.  Freeway section of US 83
          11.  Upgrade IH35 to three lanes up to Milo Intersection
          12.  Weigh-in-motion and AVI for bridges

          Motion to accept the 12 priority projects as listed.

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

          The project revisions to the 1998-2000 Transportation
          Improvement program (TIP) include the following:

          -Concrete pavement work at the IH 35 Uniroyal Overpass was
           added.  Funds will be dierted from the IH 35 Bridge Joint
           Repair Project ($100,000) to the proposed Mili Interchange
           project.  No change in funding will result from this.

          -Transit equipment and operating assistance funds will be
           added to FY 1999.  A total of $9,735,110 will be provided
           through federal, state, and local funds.

          Motion to accept the project revisions to the 1998-2000
          Transportation Improvement Program.

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

     37.  Advising the City Council of an anticipated budget over-
          expenditure in the Health Department City Funds of up to
          $156,488. This is related to a completion of a roofing project
          at 2600 Cedar.  The necessity of a General Fund transfer for
          this project is contingent on timely receipt of a class action
          settlement award.  (Refer to previous item 32 of this agenda)

          Florencio Pena, City Manager, reported that the completion of
          the roof repairs expenditure in the amount of $156,488, was to
          be deducted from the asbestos settlement ($409,529) but the
          city has not received the funds and may not receive them
          before the end of the fiscal year, September 30th; therefore
          he was advising Council of the over-expenditure.

     38.  Request for Executive Session for deliberations regarding the
          acquisition of real property for Laredo Northwest
          International Bridge IV, as authorized by Section 551.072 of
          the Texas Government Code, and return to Open Session for
          possible action thereof.

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

          Motion to go into Executive Session for deliberations
          regarding the acquisition of real property for Laredo
          Northwest International Bridge IV, as authorized by Section
          551.072 of the Texas Government Code, and return to Open
          Session for possible action thereof.

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

          Motion authorizing the acceptance of a donation of 15.4600
          acres of land more or less for the construction of the
          Northwest International Bridge IV, from Robert Muller Ltd.,
          and accepting the terms and conditions as specified in the
          agreement relating to said donation of this property.

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

     39.  Request for Executive Session for deliberations regarding the
          acquisition of real property as authorized by Section 551.072
          of the Texas Government Code, and return to Open Session for
          possible action thereof.

          Motion to go into Executive Session for deliberations
          regarding the acquisition of real property as authorized by
          Section 551.072 of the Texas Government Code, and return to
          Open Session for possible action thereof.

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

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

          Motion to instruct staff to proceed with the acquisition of
          the former Plaza Theater property and have staff come back at
          our next regularly scheduled City Council Meeting with a
          formal Resolution authorizing the purchase of the former Plaza
          Theater property and any special terms and/or conditions
          relating to such purchase so that the City Council can take a
          formal vote at that time.

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


   X. COMMUNICATIONS

      Presentation by Justice of the Peace, Danny Valdez on the City's
      Second Annual Graffiti Removal Campaign.

      Justice of the Peace Danny Valdez formally extended an invitation
      for Saturday to the Council to participate with the students at
      the different sites.  He added that 50 to 60 students at 30 to 40
      sites will be participating in the graffiti removal campaign in
      order to give the City a facelift.  They will start from Lara
      Academy at 8:00 a.m.  He also hoped that the City Traffic
      Department would place warning signs to deter kids from repeating
      the graffiti work.  He had also asked for transportation to the
      sites for the students in which the Parks & Recreation Department
      will be participating with the transportation.

      Mayor Flores announced that Eugene Amaya, Jr. from the Access
      Channel will be leaving the City of Laredo to become a 6th grade
      teacher.

  XI. CITY COUNCIL PRESENTATION AND DISCUSSION

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

      A.  Requests by Council member Alfredo Agredano

          1. Discussion and possible action on the construction of
             pending fire stations and necessary equipment for the Fire
             Department.
             (Co-sponsored by Council members John C. Galo and Joe A.
             Guerra)

             Cm. Agredano stated that he had a copy of a contract
             awarded to Cavazos & Associates dated June 20, 1994.  The
             contract indicated that the firm was to do surveys,
             platting, design, preparation of plans and was not to
             exceed $45,900.  He further explained that on the 2nd of
             November of 1993, a bond election was held for the issuance
             of $2 million in general obligation bonds to build three
             new fire stations.  These stations were to be built in the
             northeast part of Laredo between Del Mar and the Inner
             Loop; the southeast part of Laredo between Hwy 359 and the
             Inner Loop; and in west Laredo.

             Cm. Agredano asked why these stations have not been built
             if they had been approved four years ago?

             Fire Chief Tomas Ramirez stated that at the time of the
             approval there was no money for land acquisitions.  At this
             point in time there are two pieces of land that have been
             deeded to the city.  They are presently in the final
             architectural stages and will be up for construction bids
             within the next month.

             Chief Ramirez continued to report that there are several
             possibilities on the third site.  Community Development has
             assisted in acquiring land possibly by the university
             campus within Loop 20 or by Casa Verde Road and Loop 20.
             Also, the Alexander Family is willing to donate if and when
             we can get University Boulevard open.

             Motion to put the fire stations on fast track and bring
             back a report in 30 days.

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

      B.  Requests by Council member Louis H. Bruni

          1. Discussion and possible action concerning the high tension
             lines behind the new HEB and Plantation Subdivision.
             (Co-sponsored by Councilman Joe A. Guerra)

             Cm. Bruni read a petition:

                  "We the undersigned residents of the Plantation
                   Subdivision hereby petition the City of Laredo to
                   contact the developers of Plantation and the HEB
                   supermarket and request the removal of the above
                   ground electrical wires that are between the new
                   HEB and the residents on the west side of the
                   development."

             Cm. Bruni further stated that there had been a little less
             than 70 people signing the petition.

             He also showed a 2 minute video of the area showing the
             high tension cables and the homes adjacent to the wires.

             Bruce Miller Earle, Telecommunications Chairman, stated
             that this matter was first brought to their attention at
             one of their prior meetings by Mr. & Mrs. Darrin L.
             Matthews.  They expressed their concern of the high tension
             lines that run near their property and the fence that
             adjoins the new HEB Food Store.

             Mr. Earle further explained that several of the
             telecommunications commissioners have expressed concern and
             feel that this deploys a safety hazard so we hope that we
             can come to an amicable solution to this problem.

             Cm. Guerra asked Mr. Earle if he has had any communication
             with the power company or the developer subsequent to the
             meeting of the cable commission?

             Mr. Earle responded that he had spoken to Ms. Olga
             Maldonado from Central Power and Light a week before
             tonight's meeting.

             Mayor Flores asked Mr. Earle when had the Matthews first
             brought this to their attention?

             Mr. Earle responded that it had been two months ago.

             Darrin L. Matthews, spokesperson for the area residents,
             stated that he and his wife had initially brought their
             concerns before the Home Owners Association back in
             November or December, at which time Mr. Beto Trevino had
             stated that they would get in touch with Mr. Del Trautmann
             but nothing had been done.  Mr. Matthews further stated
             that the purpose of their petition and their presentation
             is in the hopes that through the City Council something can
             be done to assist the homeowners with these problems.

             Lauro Gonzalez stated that if he had known of the
             construction of the food store he would have not decided to
             buy this area to build his home.  He continued to explain
             how the noise of the tractor trailers, the lighting, and
             the small fence have had an impact on the fact that he no
             longer wishes to continue with the final construction of
             his home.  He also stated that this had caused him to
             become very disillusioned because his dream of becoming a
             homeowner in an area of comfort and tranquility had come to
             an end with all the problems that are arising in the area.

             Magna Lopez Baker, Area Business Manager for Central Power
             and Light, stated that at the meeting that she had attended
             that afternoon the issue concerning the high tension elec-
             trical wires had been the item for discussion.  The most
             favorable solution had been to place 4-foot guards around
             the electrical poles.  She further explained that should a
             tractor trailer back up towards the pole it would hit the
             guards instead of hitting the electrical pole.

             Florencio Pena, City Manager, stated that basically the
             city's subdivision ordinance requires underground utilities
             for residential areas but not for commercial or industrial.
             Property was rezoned in 1992 or 1993 to a B-4 which allows
             industries as large as truck terminals to be built in the
             area.

             Del Trautmann, Representative for Plantation Centre, LTD.,
             stated that in response to the issues of concern, he first
             wanted to bring out that if anyone would drive down Del Mar
             Boulevard they would observe that there are power lines
             around the periphery of the Plantation area, this was done
             because this was the only way power could be brought into
             the subdivision.  Mr.  Trautmann continued to explain that
             they had negotiated back and forth with CP&L to minimize
             the number of poles that went in back of these homes.
             Furthermore, at the beginning underground utilities had
             been considered but that it was very, very costly and
             because of the size of the easement, switching gears and
             transformers could not be accommodated, so the developers
             decided against it.

             Mr. Trautmann further explained that a notice was posted
             at the corner of Del Mar Boulevard and McPherson Road for
             four to five years announcing that an HEB Food Store would
             be constructed at this very corner.  The people that bought
             lots in this area were advised that a 6-foot fence would be
             built in the periphery as was required by the ordinance.
             Mr. Trautmann continued to explain to Council that
             residents were sent certified letters in which they were
             advised that the developer would be willing to raise their
             fences up to eight (8) feet but some of them had not
             responded.

             Jaime L. Flores, City Attorney, stated that HEB and the
             developer were in compliance with the city; however, there
             is legal remedy that they may be chosen between the private
             parties.

             Cm. Valdez stated that he wanted to suggest that City
             Council and the Zoning and Planning Commission visit with
             the issue of the Homeowners Association as far as them not
             keeping their promises to homeowners.

             Cm. Bruni stated that he felt that the main issue was that
             the residents are requesting to have these high tension
             lines placed underground and that City Council could
             instruct staff to meet with the developer to see if this
             could be done.  Since this was part of Cm. Guerra's
             district Cm. Bruni stated that he had brought this issue to
             his attention.

             Cm. Guerra concurred with Cm. Bruni and stated that this
             matter be taken under advisement and keep working on it
             with residents, staff, Central Power and Light, and the
             developer.

          2. Discussion and possible action on entering into an Inter-
             local Agreement or participating in a Joint Venture with
             the City of Rio Bravo to enhance, maintain and manage their
             water and wastewater systems. (Co-sponsored by Councilwoman
             Consuelo "Chelo" Montalvo)

             Fausto Sosa introduced himself as the attorney representing
             the City of Rio Bravo and introduced Mr. Feliciano Garcia
             as the Mayor of the City of Rio Bravo and stated that he
             has been working with this project for a month and a half.
             He further explained that he has spoken to the County Judge
             and the County Attorney and they had expressed the desire
             to come to a cooperative agreement concerning the Water
             Treatment Plant.

             Mr. Sosa made reference to a letter written to the Mayor
             and City Councilmembers by County Judge Mercurio Martinez,
             and stated that he did not agree with its contents.

             Cm. Bruni asked Mr. Sosa if this was the letter that was
             dated July 20, 1998?  He went on to explain that in this
             letter Judge Martinez makes reference to a previous letter
             that he had written to the Texas Water Board Commission.
             The purpose of said letter was due to the fact that the
             City of Rio Bravo approached City Council back in December
             of 1997, and this is in the minutes, so there was nothing
             unusual about his writing to the Texas Water Development
             Board.

             Mr. Sosa continued to state that there is a $25 million
             grant that has been approved and earmarked for the CCN
             (Certificate of Convenience and Necessities) that covers
             Rio Bravo, El Cenizo, and South of Mangana-Hein Road to the
             County Line.  He added that the City of Rio Bravo does not
             want to exercise their right to acquire the plant on
             eminent domain because funding would then be at risk, so
             Judge Martinez has agreed to have the City of Rio Bravo
             have some control over the accounts and enhancement of the
             system.

             Mr. Sosa went on to explain that the purpose for being
             before Council was to request for their full support and
             their vote of confidence for this endeavor.

             Cm. Bruni stated that there was a question concerning the
             ownership of the water plant and how the county acquired
             the CCN.  He further stated that he had received
             information that it was acquired by an ex-city utilities
             department employee.  Also, that there was a pending
             lawsuit against the county in the 49th District Court
             concerning their discharge permit.

             Cm. Bruni added that for the sake of the whole community
             all entities and parties involved should get together to
             discuss all the issues and added that he did not think
             that certain things that are being conducted in our ETJ
             (Extra Territorial Jurisdiction) by Webb County are in the
             best interest to the City of Laredo. This will eventually
             come back to City Council in the form of interlocal
             agreements to provide EMS, Fire Protection, and Solid
             Waste.

             Cm. Bruni then requested that the City Attorney read the
             letter that Judge Martinez had written, which reads:

             Dear Honorable Mayor Flores and City Councilmembers:

             Having just returned from Washington, D.C., and having
             heard from Administration officials in trying to achieve
             regional unity, which we mutually agreed to, it is
             disturbing and offensive to read City Councilman Louis
             Bruni's action of putting an item on the agenda of the City
             of Laredo's Council meeting affecting the Utilities
             Department of the County.  By his actions, it appears he is
             again pursuing his personal vendetta against certain
             individuals at the cost of the taxpayer.

             In 1994, Webb County took over the Water Treatment Plant
             located in Rio Bravo and in October 1995, the County took
             over the El Cenizo Waste Water Treatment Plant at the
             insistence of the Texas Natural Resources Conservation
             Commission because both plants were in violation of TNRCC's
             Rules and Regulations and they were considered to be a
             health hazard.

             At the request of the Federal Bankruptcy Court, in December
             1994, the County took over the United Independent School
             District's Waste Water Treatment Plant located south of Rio
             Bravo Annex Subdivision on the D. D. Hachar Trust Property.

             In order to satisfy the request of the Federal Bankruptcy
             Court and TNRCC, Webb County was required to secure all
             necessary state certification and permits as a water and
             sewer service provider.  This was accomplished by obtaining
             permits for all plants and obtaining a Certificate of
             Convenience and Necessity (CCN) (refer to attached TNRCC
             letter dated Dec. 21, 1997).

             In our "Interlocal Agreement" with the City of Laredo to
             provide water and sewer services to the Colonias on Hwy.
             359, FM 3338 (Las Tiendas Road), and FM 1472 (Mines Road),
             the issue of the "CCN" was considered.  The County agreed
             to decertify portions of its CCN #12704, and agreed with
             the City on the "CCN" boundaries for each of the respective
             parties.  This "Agreement" was approved by City Council on
             April 17, 1996, and executed on May 2, 1996.  Further, the
             County agreed to pay 25% of the Engineering Cost of
             preparing the "Facility Plan" and the City agreed to file
             an application to the Texas Water Development Board
             requesting 75% funding for said "Facility Plan".

             The Texas Natural Resources Conservation Commission
             approved the amended County's "CCN" for water (12704) and
             sewer (20807) which geographically starts from Mangana-
             Hein Road to the southern limits of the County and extends
             from the Rio Grande river on its western boundary to
             Dolores Creek on its eastern boundary.

             Webb County has made substantial improvements to the Water
             Treatment Plant.  Basically, it has made the necessary
             improvements to make the Plant meet TNRCC Rules and
             Regulations.

             Funding has been obtained to complete the repairs to the
             Waste Water Treatment Plant located at the southwest corner
             of the City of El Cenizo.  This will be accomplished by
             December 1998.

             Webb County has obtained the following grants and/or
             funding:
             1.  $4,300,000.00 for a sewer collection system and a
                 500,000 gallon per day Waste Water Treatment Plant for
                 the customers serviced with water that live in Rio
                 Bravo.
             2.  $600,000.00 for a Water Elevated Tank and 8" water line
                 to help provide water to the residents of El Cenizo.
             3.  $19,000,000.00 for the replacement of water lines to
                 the water distribution system located at El Cenizo and
                 Rio Bravo, a series of lift stations and a force main
                 from El Cenizo to the proposed Waste Water Treatment
                 Plant, and a 500,000 gallon per day Waste Water
                 Treatment Plant.

             These Improvement Projects total $23,900,000.00 - which
             could only be jeopardized by Mr. Bruni's actions.
             Furthermore, Mr. Bruni's continued interference in our
             operation could bring forth litigation that will present
             additional potential liability to the City of Laredo and
             its taxpayers.  Mr. Bruni's assertions are based on ill-
             advised information which negates the fact that Webb County
             is now adhering to development standards equal to those of
             the City of Laredo.

             In closing, we would like to remind you that the water and
             waste water facilities, fully owned and operated by the
             County, serve a "Regional Area" consisting of the City of
             El Cenizo, City of Rio Bravo nd other platted areas within
             our CCN.  The name "Rio Bravo Facilities" merely denotes
             physical location rather than ownership or service area.

             We respectfully request that you consult with the County
             before any action is taken.

             Signed,  Mercurio Martinez, Jr., Webb County Judge

             Cm. Bruni made reference to the sentence that reads:

                it appears that he (referring to me) is again
                pursuing his personal vendetta against certain
                individuals at the cost of the taxpayer.

             Cm. Bruni then stated, "On the contrary, Mr. County Judge,
             I am trying to safeguard the taxpayers money by us knowing
             what you are doing in our backyard".  He added that he
             thought that the letter was just another County Judge ploy
             to intimidate City Council to not get involved with what
             the county was doing and that he did not think that the
             county had any business acting like a municipality.

             Mr. Sosa stated that this was one of the problems that the
             City of Rio Bravo had encountered--having the County act as
             a municipality.

             Mayor Flores complimented Mr. Sosa for his involvement with
             the City of Rio Bravo and concurred with Cm. Bruni about
             the need to have everyone come together and discuss the
             concerns each entity had.  She then asked the city manager
             to set up a meeting.

             Cm. Bruni asked to have the city manager clear the issue of
             how the CCN had being awarded to the county and then
             schedule a Metrogovernment Committee Meeting.  He further
             explained that he and Cm. Guerra served in this committee
             and invited anyone who desired to participate to do so.

             Florencio Pena, City Manager, stated that at one point (but
             could not give exact date, indicating that staff would
             provide the information) the city agreed to provide
             assistance to the colonias on Highway 359 and Mines Road,
             while the county was to assist the colonias at Rio Bravo
             and El Cenizo.

             Fernando Roman, Utilities Director, gave a chronology on
             how the first CCN had been awarded, how it was modified,
             and how it presently stood.

             1976 - TX Public utility Commission received an application
             from the Laredo Waterworks System, signed by Mr.  Antonio
             Perez, P.E. and General Manager.

             1979 - In November, CCN Numbers: 11226 and 20486, were
             awarded for water and sewer respectively for the City of
             Laredo.  The city limits were the boundaries established
             for these CCNs.

             1994 - In October, an application was submitted by the City
             of Laredo to amend the CCN, this was signed by Mr.  Tomas
             Rodriguez, Utilities Director.

             1995 - Between February and April a notice of application
             was published in the Laredo Morning Times, then on the 22nd
             of February, Webb County protested the application claiming
             that a CCN was already in place for some of the areas that
             the city was claiming.  Both entities met and agreed on an
             Interlock Agreement between the City of Laredo and Webb
             County.  The agreement was signed on April 17, 1995, known
             as the Colonias Interlock Agreement which indicated that
             Webb County would surrender the areas of Highway 359 and
             Mines Road so that the city could be the provider of
             services to these colonias.

             1996 - On April 19, the City of Laredo received the CCN and
             automatically and by virtue of negotiations the county
             received their CCN, both as appeared on the map that is on
             file.

             Mr. Pena stated that he had sent a letter to the Texas
             Natural Resource Conservation Commission back in December
             of 1997, and requested that they provide us with some
             documentation as to what procedures were followed in giving
             up the CCN to the county.  In their response there is one
             paragraph which he thought was the key to this whole issue,
             that read:

                  "The City of Laredo and Webb County have worked
                   together in the past to avoid utility service
                   area disputes.  This has served the city and county
                   well by avoiding long and costly legal hearings in
                   these matters.  I encourage Laredo and Webb County to
                   continue to keep their lines of communication open.
                   As I explained to the city and county representatives
                   during our recent meetings, TNRCC representatives are
                   always available to attend meetings between Laredo
                   and Webb County as resources to assist in resolving
                   any service area dispute."

             Mr. Pena recommended that all entities come together to
             settle these issues being that Rio Bravo and El Cenizo are
             very close to receiving an approximate $19 million grant.

      C.  Requests by Council member John C. Galo

          1. Discussion and possible action on a property located at 804
             Seymour for ordinance and health violations.

             Benny Salinas, Building Department Director, stated that
             the property was sub-standard and that he had been before
             the Standard Building Board on Wednesday, July 1, 1998, and
             that they had requested to have it demolished immediately.
             The property was then sold at the Sheriff's Sale on
             Tuesday, July 7, 1998, and the new owners were given 45
             days to demolish, if they do not comply the city will then
             proceed (on the 46TH day) to demolish and put a lien on the
             property.

             Mrs. Rebecca Castillo appeared before Council stating that
             she had been calling in to report this to city staff since
             1993, and had brought it to their attention of how the
             property owners were violating every possible city
             ordinance. She thanked Cm. Galo for taking time to visit
             the site and his assistance to have this building
             demolished.

             Cm. Galo requested that staff contact the new owners to see
             if they would consider waiving the waiting period and have
             the city come in and demolish as soon as possible.

             Phyllis Colon, City Tax-Assessor Collector, explained that
             the law provides the property owner a grace period in which
             he is allowed six months to buy back (if the place is not
             their homestead, up to a year if it is a homestead) so the
             property cannot be demolished until after this time period.

             Mayor Flores thanked Mrs. Castillo for having been so
             patient and further explained that there is a process that
             has to be followed to consider the legalities.  Mayor
             Flores assured Mrs. Castillo that she would soon be
             relieved from all the problems in the past.

          2. Discussion and possible action on all at-grade rail
             crossings in District III.

             Cm. Galo stated that he had several questions to ask:

             1.  Who is responsible for traffic safety devices?
             2.  Who would fix the crossings that we do have?
             3.  Who is responsible for the Meadow Overpass?
             4.  Can we get funding for noise abatement, as we did for
                 the airport?
             5.  Can the train hours be modified so that the trains are
                 not crossing during the 6:00 p.m. hour when everyone is
                 trying to get home?
             6.  What are the long-term goals for the new switching yard
                 by the landfill?
             7.  Is Tex-Mex Railroad donating any of the right-of-way
                 for the possible overpasses on Chihuahua and Guadalupe?
             8.  Would Tex-Mex consider giving us some of the easements
                 for the river road that I proposed during my campaign?

             Arturo Dominguez, Tex-Mex Representative, replied that
             Traffic Safety Devices are provided by TXDOT using the PI
             (Priority Index) System.  He continued to explain that
             there are 108 crossings between the two railroads and
             Laredo has to compete with San Antonio and Houston for
             state funding.

             As for the asphalt upkeep, Mr. Dominguez stated that Tex-
             Mex purchased the land from the city back in 1881 so
             historically it is up to the city to do the upkeep.

             Mr. Pena stated that the city takes position that the
             asphalt, the planks, and the actual tracks, should be the
             responsibility of Tex-Mex.

             Keith Selman, Planning & Zoning Director, stated that the
             Meadow Overpass is an off-system bridge and has a 80/20
             match for funding but because Laredo is an economically
             distressed area, we could possibly get some leeway on the
             20% match requirement.

             Mr. Dominguez continued to explain that the switching yard
             should have been finished by February but due to a supply
             shortage, Phase I had to be extended until the end of
             August.  He continued to explain that the switching yard
             will eliminate the switching of cars by about 50%, on the
             Chihuahua, Guadalupe, and Market Streets.  Ultimately Tex-
             Mex plans to move all of the switching of cars our of this
             area by the end of Phase III, about a year from now.

             Mayor Flores stated that at the conference that she
             and Councilwoman Montalvo had attended in March, it was
             stated that the Metropolitan Planning Organization (MPO) is
             willing to help Laredo if the city neighborhoods would
             consider closing some of the intersections.  MPO does not
             call it noise abatement but impose it as a quiet zone.

             Mr. Dominguez stated that there is money available through
             TXDOT for closing of intersections and perhaps city staff
             could look into that.

          3. Request for staff to conduct a traffic study in front of
             Narvaez Meat Market on Highway 83 South for the possible
             need of a traffic signal.

             Roberto Murillo, Traffic Engineer, handed out a Traffic
             Safety Schedule of Pending Traffic Studies which indicates
             that the request for a study at this location was made on
             July 20, 1998, and the estimated date of completion will be
             October 26, 1998.  Mr. Murillo informed Council that he had
             visited the site and that the street next to Narvaez Meat
             Market is Wooster Street which dead ends at both ends and
             because of the lack of traffic he did not anticipate that
             the location will warrant a traffic safety light.

             Cm. Galo stated that the need was mainly for the people
             that exit Narvaez Meat Market onto Highway 83.

             Mr. Murillo stated that once the study is conducted he will
             report back to Council.

          4. Discussion and possible action concerning parking
             violations and street vendors located near the Pulga
             on Guadalupe St.

             Cm. Galo stated that this is an issue that the Police have
             already addressed, many citations have been issued, and
             they are patroling the area regularly during the weekends.
             He further stated that the residents' concern is that once
             the weather changes to a cooler climate that the traffic
             will increase once again.  He asked that no parking signs
             be placed along the 2200, 2300, 2400 blocks of Laredo
             Street.

             Mr. Murillo explained that his department was concerned
             about the complains the residents had about the parking
             issue around their homes.  Staff will be visiting with the
             area residents to have them approve the no parking signs
             that will be put up by their homes and driveways.


      D.  Requests by Council member Cecilia May Moreno

          1. Request for update on the 1997-98 CDBG Sidewalk Paving
             Project.

             This item was discussed together with E(3).

             Rogelio Rivera, City Engineer, that there are two programs
             that are underway.  One is presently constructing 69 blocks
             (by Public Works) and is 48% complete.  The other program
             has 123 blocks and is being designed by WSBC Civil
             Engineers, Inc.  The preliminary plans are 90% complete and
             will be done by the end of the month (July) and we should
             have a contract by September.

             Mr. Rivera continued to inform Cm. Valdez on the sidewalk
             program in District V and he stated that the COs design was
             75% complete with the preliminary plans due the 1st week of
             August.

             Cw. Moreno asked why were these done sooner than the other
             project in her district?

             Mr. Rivera explained that the engineering firm that had
             designed this project had moved faster on it.

             Florencio Pena, City Manager, stated that staff would
             report on all sidewalk projects at the next scheduled
             meeting.  The report will include a schedule of when the
             contract was awarded to the engineering firm, how long it
             took to design, and when completion of the construction is
             to be expected.

          2. Request for update on the resurfacing of the street in the
             Buena Vista Subdivision and an answer to their request for
             the placement of street humps.

             Oscar Medina, Assistant Director of Public Works, reported
             that staff from waterworks had finished their work and
             public works had initiated the resurfacing of the street
             approximately two weeks ago and should be finished within
             the next three weeks.

             Roberto Murillo, Traffic Engineer, reported that due to
             public works still working in the area he would recommend
             that the study not be conducted until school starts.  He
             continued to explain that after the study is complete staff
             is to meet with residents for feedback on the speed humps.
             Mr. Murillo added that he wanted to make clear that Cm.
             Moreno's request to include the Buena Vista Subdivision on
             the speed hump pilot program was made after he had
             presented the six recommended streets to Council.
             Cw. Moreno stated that she gets a lot of complaints from
             residents in the area and it being the reason for insisting
             on doing something to alleviate the traffic problem.

             Mr. Murillo explained that due to the fact that the street
             does not warrant a traffic light and the street hump study
             has not been conducted he recommended enforcement as the
             remedy to the problem.

             Mayor Flores requested that the police department patrol
             the area periodically and that perhaps if motorists see
             that police are in the area they will reduce their speed.

          3. Update on the Lyon Street water tanks paint job.

             Fernando Roman, Utilities Director, displayed to Council
             one of the designs that Nixon High School wanted to use for
             the water tank.  He stated that he would be requesting for
             RFPs (Request for Proposals) for the art work but that the
             same motif be kept since it was produced by the students.

             Mr. Roman continued to state that since Council had
             requested community involvement in the project he would
             recommend that the community do their own hiring and that
             the city would provide the liability insurance.

             Cw. Moreno asked why the project had taken so long?

             Mr. Roman stated that the delay had been because teachers
             at the high school had gotten the students involed in the
             project and that they were still working on the second
             design which should be complete within the next two weeks.

          4. Discussion and possible action on a request by the
             residents in the Nixon High School vicinity to have street
             humps placed in their neighborhood.  The residents from
             the 1900-2300 Block of Malinche and the Buena Vista
             Subdivision are making this request.

             Cw. Moreno discussed this item with item 2.

             Motion to add Buena Vista to the street humps pilot program
             list.

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

      E.  Requests by Council member Eliseo Valdez Jr.

          1. Discussion and possible action on designating an area at
             City Hall for honoring police officers and firefighters who
             have fallen in the line of duty.

             Cm. Valdez said that he felt that the city should set aside
             a designated area where these individuals can be recognized
             and get continuous exposure and recognition.

             Mayor Flores stated that there will be a display cabinet
             designated for these pictures and plaques and instructed
             staff to look into the amount of space needed to
             accommodate these items.

             Motion to designate an area at City Hall for the honoring
             of police officers and firefighters who have fallen in the
             line of duty.

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

         2.  Request for an update and status report on the Northeast
             Hillside Park Pedestrian Bridge and Zacate Creek
             Beautification Project.

             John Vidauri, Parks & Recreation Director, reported that
             the Northeast Hillside project is well on the way to
             completion.  The bridge footing work was completed by
             public works crews.  The prefabricated bridge is scheduled
             for delivery on Wednesday, July 28; will be assembled by
             the Marine Corps Reserve component; and will be installed
             by Friday, July 31.  He further explained that the sidewalk
             approach work needs to be done on both the recreation
             center side and the park side of the bridge.  Anticipated
             date of completion would be sometime in the month of
             August.

             Mr. Vidauri reported on the Zacate Creek Beautification
             Project which covers from Saunders to Garden Street,
             hopefully. Funding is limited, receiving about $300,000
             from CDBG funds.

             He continued to report that the engineering firm has
             completed the ground improvement survey and topography and
             is presently working on the schematic design phase of the
             project. They expect to have the layout and the preliminary
             design ready by Friday, August 7, 1998, then within 30 days
             of completion report back to Council with construction
             documents for bidding in September and shortly thereafter
             initiate construction.

          3. Status report on the District V Sidewalk Program.

             This item was discussed with item D(1).

          4. Presentation by Ms. Belinda Flores requesting the concrete
             lining of the Chaparral Drainage, with possible action.

             Cm. Valdez stated that a group of residents were present to
             address the problem that exists in the Chaparral Sub-
             division.  Last year there was flooding and the people in
             the area experienced a high degree of property damage.  He
             further stated that he wanted to make sure that the issue
             of cement lining the creek in this area be part of next
             years's budget.

             Bert Kraus, a Chaparral resident, distributed a memorandum
             that he and other residents of Chaparral are addressing to
             Council.  Mr. Kraus explained that the purpose of the
             memorandum was to make Council aware of the problem that
             the residents of Chaparral experience every time there is
             heavy rain.  There have been three floods in the last five
             years and some houses had up to three and four feet of
             water that caused extensive damage.  Cm.  Valdez has had
             the creek dug out but it remains a dirt creek so the
             residents of the subdivision are requesting Council action
             to get help in having this creek cement lined and widened
             to prevent future flooding problems.

             Mr. Pena stated that as far as the appraisal values, the
             state separated the appraisal process from city government
             back in 1981.  The setting process is independent of the
             city.  There is an appeal process that they can follow to
             challenge the appraisal given to these homes.

             Rogelio Rivera, City Engineer, reported that there is a
             consulting contract that is working on the drainage project
             in Chaparral, the preliminary plans are 50% complete.  All
             the field work is done and the preliminary plans can be
             expected the first week in August.  He continued to explain
             that the project includes channelization and widening but
             made it clear that the widening will result in the removal
             of some trees.  This will also include the enhancement of
             the culvert between the park and Calton Road.

             Cm. Galo asked Mr. Rivera if this was a pilot or an entire
             creek channelization and if the city was paying for this?
             He further stated that he knew of a piece of property to
             the north that the owner was willing to donate for a
             retention pond to help alleviate the problem in Chaparral
             but that the city was moving quite slow on this.

             Mr. Rivera responded that he had just contacted the owner
             to see what the status was on this particular issue.  He
             further explained that the purpose for the delay was due to
             the fact that on the initial letter that he had received
             there appeared certain documentation where the developers
             were to sign and have the city approve--later when the
             second letter was received the documentation was totally
             different.

             Mayor Flores instructed Mr. Rivera to follow up on this.

             Mr. Rivera replied that he would follow up and report back
             to Council.

      F.  Requests by Council member Joe A. Guerra

          1. Request for staff to conduct traffic studies on the
             following:
             a) Mayberry/Springfield and Fenwick/Del Mar for traffic
                signals,
             b) Sandy Lane/Lindenwood for a three way stop sign and
                Woodland and Highlands for a four way stop sign,
                with possible action.

             Cm. Guerra stated that he wanted Woodland and Highlands
             added to the list since the others were already included.

             Mr. Murillo confirmed it and stated that he would do what
             Cm. Guerra was instructing.

          2. Request by Richard Kahn regarding enforcement of irrigation
             permits; request by Ezequiel Maldonado concerning the
             enforcement of the plumbing permits.

             Mr. Richard Kahn did not appear before Council due to the
             fact that he was out of town.

             Mr. Maldonado stated that he had approached Council at the
             beginning of the year requesting information on the
             customer service water inspections and wanted to know at
             this point if and when this program was to going to get
             started.  He further stated that he wanted to see more of
             the back flow system made available to the citizens of
             Laredo.  Also, more enforcement of the plumbing code.

             Florencio Pena, City Manager, stated that they have met
             with Mr. Maldonado at least three times within the last
             four months to discuss his concern about enforcing the
             plumbing code.  Mr. Maldonado was advised that the city
             does enforce the plumbing code and encouraged him to report
             any violations to code enforcement.

             Benny Salinas, Building Official,  reported that he has
             been working at updating the 1997 Standard Building Code.
             Mr. Salinas reported that on several occasions when they
             have brought cases before municipal court they have not
             been able to address state rule compliance since these have
             not been adopted by the city in the form of ordinance;
             therefore, he will be requesting that Council approve the
             adoption of the state rules and regulations and the updated
             Standard Building Code.

             Mr. Salinas continued his report and made reference to the
             back flow system that Mr. Maldonado had mentioned and
             indicated that this system is mainly used for irrigation.

             Mr. Pena requested that Mr. Salinas inform Council on the
             irrigation permits that Mr. Kahn was to address had he been
             present.

             Mr. Salinas explained that plumbing permits have to be
             issued to a licensed master plumber but that on occasion
             residents will violate the code by having the sprinkler
             system set up by someone other than a licensed plumber.
             He further explained that it was very difficult for his
             department to enforce the code being that he is short
             staffed and unable to check on all violations.

             Fernando Roman, Utilities Director, reported that he would
             report to Council at next scheduled meeting the concern
             that Mr. Maldonado had about the customer service
             inspections.

          3. Request by Dr. Hector Farias, Ph.D. concerning several
             economic development sales tax issues, with possible
             action.

             Dr. Hector Farias, Ph.D., representing the Texas-Mexican
             International Trade Association, stated that he did not
             agree with the make up of the committee that advised
             Council on the proposal of this tax increase.  He asked why
             was it that every time there was something of significance
             before the city, there had to be a banker in its
             representation?  Dr. Farias continued to state that bankers
             do not speak for international trade.  One of the big
             issues on the economic advisory committee has to do with
             trade, with transportation, and education, so he stated the
             he took exception to that.  He further stated that he also
             took exception to Council calling the election without
             getting the proper information out to public.

             Dr. Farias concluded by saying that he wanted the election
             to be postponed.

      G.  Requests by Council member Mario G. Alvarado

          1. Discussion  and possible action on recommendations from the
             PUD (Planned Unit Development) Ad Hoc Committee.
             (Co-sponsored by Council members Louis H. Bruni and Eliseo
             Valdez Jr.)

             Cm. Alvarado reported that this committee had met twice and
             had identified different problems that were brought to
             their attention by prior PUDs.  Of main concern were the
             off-street parking, alley ways and easements (that are part
             of public right-of-way and are not being maintained),
             safety aspects for emergency response vehicles, safety of
             walkways, and lot size.

             Keith Selman, Planning & Zoning Director, stated that an
             amendment to the development code would have to be brought
             forward, amending the provisions of the PUD (Planned Unit
             Development) and addressing parking, garbage collection,
             transit facilities, and police sub-station issues.  All of
             these will be potential trade-offs once density reaches a
             certain level or overall population in a PUD.

             Mayor Flores instructed Mr. Selman to prepare an ordinance
             to amend the development code.

          2. Update from the Utilities Department staff on the
             possibility of working with the Texas Department of Housing
             and Community Affairs, STEP, to provide services for the
             urban area residents on Mines Road.

             Fernando Roman, Utilities Director, stated that he and Mr.
             Florencio Pena, City Manager, had made a trip to Austin and
             they had visited with the Texas Water Development Board and
             discussed with them how this process would fit in with our
             program in the colonias facilities plan.

             We have requested that the engineering firm prepare two
             things on the facilities plan:

             1.  prepare the completion of the facility plan; and
             2.  prepare a mathematical model of the water flow.

             Cm. Alvarado infomed Mr. Roman that his request for
             information had to do with properties that were within the
             500 ft. area from the Mines Road, this being within the
             jurisdiction of the city limits, could the STEP (Small Town
             Environmental Program) be used in this case.

             Mr. Roman stated that the criteria for STEP is:

             1.  EDAP (Economic Development Agency Program) approved
                 area profile of all residents of annexed area.
             2.  Project can be done for 50% or less of what the
                 contractor would do it for.
             3.  Leadership and motivation of the residents.

             Mr. Roman further stated that he would contact STEP to get
             correct information on the 500 ft. area jurisdiction.

          3. Discussion and possible action on park land dedication on
             Mines Road area to the City of Laredo by Robert Muller.

             Steve Snow stated that Mr. Robert Muller is dedicating to
             the City of Laredo a 22-acre park that includes a lake
             located north of the Indian Sunset Subdivision.  Mr. Snow
             continued to report that John Vidauri, Parks and Recreation
             Director, had visited the area and suggested that perhaps
             Texas Parks & Wildlife could provide a pier for the lake
             and keep it stocked to accommodate for the Children's
             Fishing Program.  He continued to report that the park will
             include a nature trail, a soccer field, a softball field,
             and possibly a basketball court.  He further stated that
             Mr. Muller wanted to get this park dedicated to the city as
             soon as possible.

             Mr. Snow further reported that Mr. Muller is contributing
             $250 from every home sale towards park improvements and is
             asking that the city allocates money in the upcoming budget
             for the same purpose.

             Cm. Bruni asked Mr. Snow if they had been before the Parks
             & Recreation Board and if not, he suggested that they do so
             at the next scheduled meeting.

             Motion to accept the dedication and in the future as budget
             allows that the city continue with the development of the
             park.

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

         4.  Discussion and possible to establish an Angel Tree Program
             for city employees wishing to participate with helping
             needy children during the Christmas season. (Co-sponsored
             by Council members John C. Galo and Eliseo Valdez, Jr.)

             Motion to adopt an Angel Tree Program for City employees.

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


 XII. PUBLIC HEARINGS

     41.  Public hearing amending the City of Laredo's 1997-1998 annual
          budget in the amount of $5,000.00 for the Occupant Protection
          STEP grant from the Texas Department of Transportation.  The
          Texas Department of Transportation's contribution will be
          $2,500.00 with the City designating $2,500.00 in matching
          funds. The funding for this grant will be from October 1, 1997
          through September 30, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1997-1998 annual
          budget in the amount of $5,000.00 for the Occupant Protection
          STEP grant from the Texas Department of Transportation.  The
          Texas Department of Transportation's contribution will be
          $2,500.00 with the City designating $2,500.00 in matching
          funds. The funding for this grant will be from October 1, 1997
          through September 30, 1998.

          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: Cm. Bruni
          For:  8                         Against:  0        Abstain: 0

          Ordinance Introduction: City Council

     42.  Public hearing amending the City of Laredo's 1997-1998 annual
          budget in the amount of $7,500.00, for the Speed STEP grant
          from the Texas Department of Transportation.  The Texas
          Department of Transportation's contribution will be $4,875.00
          with the City designating $2,625.00 in matching funds.  the
          funding for this grant will be from October 1, 1997 through
          September 30, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1997-1998 annual
          budget in the amount of $7,500.00, for the Speed STEP grant
          from the Texas Department of Transportation.  The Texas
          Department of Transportation's contribution will be $4,875.00
          with the City designating $2,625.00 in matching funds.  the
          funding for this grant will be from October 1, 1997 through
          September 30, 1998.

          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: Cm. Bruni
          For:  8                        Against:  0         Abstain: 0

          Ordinance Introduction: City Council

     43.  Public hearing concerning an application by Casa Norte Del
          Sol, Ltd., by Terneros, Inc., Danny Wyers, Vice President
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 2, Block 1, San Jose Subdivision, Phase II and
          all of San Jose Subdivision, Phases III and IV, located at
          6301 Casa Del Sol Blvd., from AG (Agricultural District) and
          R-1A (Single Family Reduced Area District) to R-1-MH (Single
          Family Manufacturing Housing District).

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 2, Block 1, San Jose Subdivision, Phase
          II and all of San Jose Subdivision, Phases III and IV, located
          at 6301 Casa Del Sol Blvd., from AG (Agricultural District)
          and R-1A (Single Family Reduced Area District) to R-1-MH
          (Single Family Manufacturing Housing District).

          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 introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Bruni

     44.  Public hearing concerning an application by NW Properties,
          Ltd., Danny Wyers, President amending the zoning ordinance
          (map) of the City of Laredo by rezoning 12.966 acres as
          further described by metes and bounds located west of FM1472,
          north of Killam Industrial Blvd., from R-1A (Single Family
          Reduced Area District) to R-1A (Single Family Reduced Area
          District), Planned Unit Development.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the zoning ordinance (map) of the City of
          Laredo by rezoning 12.966 acres as further described by metes
          and bounds located west of FM1472, north of Killam Industrial
          Blvd., from R-1A (Single Family Reduced Area District) to R-1A
          (Single Family Reduced Area District), Planned Unit
          Development.

          Motion to open the public hearing.

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

          Mr. Steve Snow spoke in favor of the zone change request.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Alvarado

     45.  Public hearing amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $1,600.00, for the purchase K-9 dog
          food and supplies for the year for the Financial Disruption
          Task Force for the period of January 1, 1998 and ending
          December 31, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $1,600.00, for the purchase K-9 dog
          food and supplies for the year for the Financial Disruption
          Task Force for the period of January 1, 1998 and ending
          December 31, 1998.

          Motion to table.

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

     46.  Public hearing amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $4,000.00, for the purchase of three
          canine cages to be installed in task force vehicles for the
          Financial Disruption Task Force for the period of January 1,
          1998 and ending December 31, 1998.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $4,000.00, for the purchase of three
          canine cages to be installed in task force vehicles for the
          Financial Disruption Task Force for the period of January 1,
          1998 and ending December 31, 1998.

          Motion to table.

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


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

          Motion to recess as City Council and convene as The Laredo
          Mass Transit System.

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

     47.  98-RT-115  Authorizing the City Manager to accept and execute
                     a 1997-98 urbanized area formula program grant (No.
                     TX-90-X438) amendment from the Federal Transit
                     Administration in the maximum amount of
                     $1,427,352.00, (Federal Share), and providing for
                     grant funds to be deposited in the Mass Transit
                     Department Accounts.

          Motion to approve.

          Moved : Cw. Montalvo
          Second: Cw. Moreno
          For:  8                         Against:  0        Abstain: 0

     48.  Authorizing the City of Laredo, Texas, to file and application
          with the Department of Transportation, Federal Transit
          Administration, United States of America, in the amount of
          $4,119,422.00 for fiscal year 1998-99, under the Federal
          Transit Act as codified at 49 U.S.C. Chapter 53, as amended;
          and authorizing the City Manager to execute the application
          and all related documents.

          Motion to approve.

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

     49.  Final public hearing and motion to eliminate the following bus
          routes in accordance with Resolution No. RT-084 effective
          July 27, 1998:
                     Route 24-CC School Tripper
                     Route 26-West Laredo Tripper

          There was no public input.

          Motion to approve.

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

          Motion to recess as The Laredo Mass Transit System and convene
          as City Council.

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

 XIV. ADJOURNMENT

         Motion to adjourn.       Time: 10:45 p.m.

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



         I hereby certify that the above minutes contained in pages 01
         to 40 are true, complete, and correct proceedings of the City
         Council Meeting held on the 20th day of July, 1998.



                                        _____________________________
                                            Gustavo Guevara, Jr.
                                               City Secretary