CITY OF LAREDO
                          CITY COUNCIL MEETING
                                M98-R-29
                              JULY 27, 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
      Consuelo "Chelo" Montalvo,   Councilmember, District VIII
      Gustavo Guevara, Jr.,        City Secretary
      Florencio Pena, III,         City Manager
      Jaime L. Flores,             City Attorney

      Motion to excuse Cm. Alvarado who was out of town.

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

      Cw. Moreno was not present.
      Cw. Moreno came in at 5:34 p.m.

  IV. FINAL READINGS

      Motion to waive the final readings of Ordinances #98-0-188,
      #98-0-189, #98-0-190, #98-0-191, #98-0-192, #98-0-193, and
      #98-0-194.

      Motion to approve.

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

      2. 98-O-188  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.  (City Council)

                   Motion to approve Ordinance #98-0-188.

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

      3. 98-O-189  Ordinance 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.
                   (Council member Consuelo "Chelo" Montalvo)

                   Motion to approve Ordinance #98-0-189.

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

      4. 98-O-190  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.  (City Council)

                   Motion to approve Ordinance #98-0-190

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

      5. 98-O-191  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-191

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

      6. 98-O-192  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-192.

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

      7. 98-O-193  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).
                   (Council member Louis H. Bruni)

                   Motion to approve Ordinance #98-0-193.

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

      8. 98-O-194  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.
                   (Council member Mario G. Alvarado)

                   Motion to approve Ordinance #98-0-194.

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

    V. RESOLUTIONS

      9. 98-R-121  Accepting a grant from the Texas Natural Resource and
                   Conservation (TNRCC) in the amount of $25,000 to
                   continue the operation of a continuous air monitoring
                   station (CAMS) by the City of Laredo Health
                   Department for the period beginning September 1, 1998
                   through August 31, 1999.

                   Motion to approve Resolution #98-R-121.


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

     10. 98-R-122  Accepting a grant from the Texas Department of Health
                   in the amount of $200,000 for continuation of the La
                   Familia Health Care Program of the City of Laredo
                   Health Department for the period beginning September
                   1, 1998, through August 31, 1999.

                   Motion to approve Resolution #98-R-122.

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

     11. 98-R-123  Accepting a grant from the Texas Department of Health
                   consisting of $392,388 in funds and $33,600 in State
                   direct assistance, for the Comprehensive Public
                   Health Services Program of the City of Laredo Health
                   Department for the period beginning September 1,
                   1998, through August 31, 1999.

                   Motion to approve Resolution #98-R-123.

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

     12. 98-R-124  Accepting a grant from the Texas Department of Health
                   in the amount of $95,483 for the HIV/AIDS Health and
                   Social Services Project of the City of Laredo Health
                   Department for the period beginning September 1,
                   1998, through August 31, 1999.

                   Motion to approve Resolution #98-R-124.

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

     13. 98-R-125  Accepting a grant from the Texas Department of Health
                   in the amount of $205,928 for the Tuberculosis
                   Elimination Program of the City of Laredo Health
                   Department for the period beginning September 1,
                   1998, through August 31, 1999.

                   Motion to approve Resolution #98-R-127.

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




     14. 98-R-126  Accepting a grant from the Texas Department of Health
                   in the amount of $155,809 (which consists of $93,750
                   in direct funds from the State and in-kind services
                   match of $62,059) for the School Based Health Project
                   of the City of Laredo Health Department for the
                   period beginning September 1, 1998, through August
                   31, 1999.

                   Motion to approve Resolution #98-R-126.

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

     15. 98-R-127  Appointment of Robert Simpson to the Library Advisory
                   Board by Council member Alfredo Agredano.

                   Motion to approve Resolution #98-R-127.

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

     16. 98-R-129  Accepting a grant from the Texas Department of Health
                   in the amount of $146,000 for the MCH Community
                   Health Education Project of the City of Laredo Health
                   Department for the period beginning September 1,
                   1998, through August 31, 1999.

                   Motion to approve Resolution #98-R-129.

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

     17. 98-R-130  City Council confirmation of Mayor's appointments to
                   the Legislative Liaison Ad Hoc Committee and to the
                   Empowerment Zone Application Ad Hoc Committee.

                   Mayor Flores added Cw. Montalvo to the Empowerment
                   Zone Application Ad Hoc Committee along with Cm.
                   Alvarado and Cw. Moreno.

                   Cm. John Galo and Cm. Joe Guerra will be replacing
                   Jose Perez and Poncho Casso.  Cm. Eliseo Valdez is
                   presently serving on this committee.

                   Mayor Flores will replace Saul N. Ramirez, Jr. on all
                   committees.

                   Motion to approve Resolution #98-R-130.

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

   VI.  MOTIONS

     18.  To award an architectural/engineering consultant contract for
          the Paseo Antiguo Laredo Pedestrian Facility Project and
          ISTEA Enhancement Project to Sprinkle Robey Architects.  The
          contract amount is $120,000.00.

          Motion to table.

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

     19.  Authorizing the City of Laredo, representing the Laredo
          Homeless Coalition, to submit an application to the U.S.
          Department of Housing and Urban Development for funding
          through the Supportive Housing and Shelter Plus Programs for
          the purpose of developing a local Continuum of Care Program to
          address the needs of Laredo's homeless population and
          authorizing the City Manager to execute any and all documents
          resulting from such submission.

          Motion to approve.

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


  VII. CITY MANAGER'S REPORT

     20.  Presentation regarding the Calle Iturbide Project Feasibility
          Study.

          Florencio Pea, Interim City Manager, stated that City Council
          had passed a motion to allocate $10,000 to fund an infra-
          structure feasibility study of the three block area on
          Iturbide Street from Convent Avenue to Santa Maria Avenue.
          The purpose for this project is to revitalize the downtown
          area in anticipation of the fourth bridge.

          Erasmo Villarreal, from Community Development Department,
          reported that Council had requested that this project be
          funded from the Community Development Block Grant and it was
          awarded to Hogan Corporation from Dallas, Texas.

          The study was to seek the age of the current infrastructure;
          the potential concept of open air or a walk-in mall; and the
          cost estimates of the design.

          Their recommendations were:

          -to convert Iturbide Street to a 13 foot wide one-lane street
          -street and sidewalks to have an 8 inch concrete pattern


          -enhance sidewalks to have easier pedestrian traffic
          -temporary parking for loading and unloading
          -limited parking meters and accessible parking lots
          -existing 8 and 10 inch water lines converted to 12 inches
          -existing 8 inch gravity sewer line upgraded to 10 inches
          -existing 24 inch storm drainage pipe replaced with 24 inch
           concrete pipe
          -decorative lighting
          -air cooling mist system

          Roberto Gonzalez, member of the Calle Iturbide Project, went
          over the history stating that this project started 2 years ago
          because of the need to revitalize the area.  We, as a 24
          member organization, met with Cw. Montalvo for her recommenda-
          tions.  Our plans are to have a festival in the future for
          public awareness.

          Florencio Pena, City Manager, said that at this stage staff
          was ackownledging the status of the project but emphasized
          that there are no immediate funds available for improvements
          the project could be considered for funding should the
          economic sales tax pass.  Another possibility would be to have
          Council appropriate funds for revitalization of the downtown
          area at the budget hearings.

     21.  Presentation regarding the Operation Clean-Up Campaign

          Erasmo Villarreal, from CD Department, reported that Operation
          Clean-up was first initiated in 1990 with the departments of
          Building, Zoning, Health, Community Development, Fire, Public
          Works, Legal, and Traffic Safety and were involved as a task
          force to provide effective code enforcement throughout the
          City.  This operation would target a specific city street or
          approximately 20 block area where violators would be given 3
          to 5 days to eliminate any violations before a citation would
          be issued.  Citizens through this campaign were given the
          opportunity to discard unwanted accumulations and place them
          on the curb side for Public Works crews to pick up on the
          following day.  His recommendation to re-establish Operation
          Clean-up would place the campaign on Thursdays, twice a month
          with Public Works crews picking up unwanted accumulations on
          Saturday, and if necessary, on Sunday of that same week.  He
          concluded by stating that the overtime costs for the Public
          Works crews to work on weekends was approximately $2,250 for 9
          trucks, 2 front-end loaders, and 5 laborers.

     22.  Discussion and possible action regarding the updated financing
          plan for the Laredo Northwest International Bridge.

          Florencio Pea, City Manager, reported that the method of
          financing for the Laredo Northwest International Bridge will
          be through a combination of SIB (State Infrastructure Bank)
          loan, tax exempt bonds, and taxable bonds in the amounts of
          $24,870,000 plus capitalized interest, $3,910,000, and
          $7,155,000, respectively.

          The updated figures are $61,833,000; federal facilities at
          $9.8 million; city facilities at $9.1 million; and $7 million
          for the weigh-in motion system.  Mr. Pena continued to report
          that staff would be requesting federal assistance to finance
          cost from T-Bill 21 and request additional funding from SIB.

          Cm. Bruni went on record as being against the awarding of
          taxpayers money to the Mullers for an 8' Berm at a cost of
          $787,500, and the Faskens for a 14' Soundwall for $952,000.
          These people were to supposedly donate the land to the city
          for the Bridge IV.

          Noe Hinojosa, from Estrada-Hinojosa & Company Financial
          Advisors, stated that cost estimates have increased by about
          $19 million for both city and federal facilities since the
          initial report in January.

          Mr. Hinojosa requested that Council review along with him the
          Plan of Finance Report that he had submitted to them.  He
          pointed out to tab #1 to review the figures of $73,335,224 and
          the breakdown to explain the International Fourth Bridge
          Financing-Sources and Uses.  Mr. Hinojosa continued to go
          through the report extensively and answered questions from
          Council.  He then concluded his report with a Timetable of
          Events.

          Motion to authorize staff to proceed with negotiated bids with
          companies such as Smith-Barney, A.G. Edwards, and First
          Southwest Company.

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

     23.  Submission of the Fiscal Year 1998-1999 Annual Budget as per
          Article VI, Section 6.02, Submission of Budget of the Charter
          of the City of Laredo which states that "sixty (60) days
          before the end of the fiscal year, or any time before that,
          the City Manager shall present to the Council, in an open
          public meeting, after proper public notice, and having been
          placed on the Council meeting agenda, a budget for the ensuing
          fiscal year with an accompanying message."

          Florencio Pea, City Manager, submitted along with Fiscal Year
          1998-1999 Annual Budget a schedule for the budget workshops.
          The schedule is: Wednesday, August 12th at 6:30, Thursday,
          August 13th at 5:30, Friday, August 14th at 5:30, and
          Saturday, all day.

     24.  Request for Executive Session, as authorized by Section
          551.071(1)(A)(B) of the Texas Government Code, to discuss
          pending litigation and settlement offer in Cause Number
          L-98-47 styled Southwestern Bell Telephone Company vs. City of
          Laredo, filed in the United States District Court for the
          Southern District of Texas, and return to open session for
          possible action thereon.

          Motion to go into Executive Session, as authorized by Section
          551.071(1)(A)(B) of the Texas Government Code, to discuss
          pending litigation and settlement offer in Cause Number
          L-98-47 styled Southwestern Bell Telephone Company vs. City of
          Laredo, filed in the United States District Court for the
          Southern District of Texas, and return to open session for
          possible action thereon.

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

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

VIII. COMMUNICATIONS

          Mayor Flores announced that the City of Laredo had received
          two tax credit approvals.  The first one is for the Hamilton
          Hotel which will be for elderly rehab with 165 units.  Mayor
          Flores thanked Cw. Montalvo for being instrumental in getting
          this accomplished.  The second tax credit approval is for
          Villa del Rio on the Zapata Highway with 250 units.

          Mayor Flores continued to congratulate the City Manager,
          Assistant City Manager, Department Heads, and staff for the
          Laredo Showcase at Mall Del Norte that was held on Saturday,
          July 25, from 11:00 a.m. to 3:00 p.m.  She stated the event
          was a great success and that the community is requesting to
          have this twice a year instead of once a year.
          This gave the community an opportunity to visit with city
          staff and ask questions they may have on any given department.


  IX. CITY COUNCIL PRESENTATION AND DISCUSSION

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

        A.  Requests by Council member Louis H. Bruni

          1. Discussion and possible action on entering into an Inter-
             local Agreement with the City of Rio Bravo to provide
             technical assistance to enhance, maintain and manage their
             water and wastewater systems at the time that the City of
             Rio Bravo becomes the owner and manager of its water and
             wastewater systems.  (Co-sponsored by Council members
             Eliseo Valdez Jr., Mario G. Alvarado, Joe A. Guerra, and
             Consuelo "Chelo" Montalvo)

             Cm. Bruni stated that there had been a Metro Government
             Committee Meeting, at which Mayor Flores was present, but
             that the County representatives had chosen not to attend.
             County Judge Mercurio Martinez, Jr.  wrote a letter to Mr.
             Florencio Pena, City Manager, regarding their absence at
             the meeting.  The letter reads as follows:

             Dear Mr. Pena:

             This is to advise the Metro Government Committee that Webb
             County will have no representation at the meeting scheduled
             for Monday, July 27, 1998.

             It is the feeling of Webb County that this situation should
             be handled directly between Webb County and the City of Rio
             Bravo.

             Signed Mercurio Martinez, Jr., Webb County Judge

             Xerox copies were sent to county commissioners, Mayor
             Flores, and members of the City Council.

             Cm. Bruni added that he was appalled by the comments made
             by the County Judge and certain commissioners at today's
             commissioners court meeting.  He further made reference to
             the information that was presented to the public indicating
             that it was quite misleading.  County officials are stating
             that the city is jeopardizing the $24 million grant money
             that they are in the process of receiving for the water
             facility in Rio Bravo and El Cenizo.  Cm. Bruni reiterated
             that the reason that the city was involved is because Rio
             Bravo residents had requested assistance in this matter.

             Alfonso Ornelas Jr., Attorney for Rio Bravo, concurred with
             Cm. Bruni and stated that the purpose for their contacting
             the City of Laredo was to request technical assistance.
             Furthermore, it was the intent of Rio Bravo to get the
             water plant and that they have contacted engineering firms
             in Austin to get technical expertise.

             Cm. Galo stated that he did not know why the City of Laredo
             needed to get involved in this issue at all.  He further
             advised Mr. Ornelas that if the City of Rio Bravo wished to
             pursue the matter of acquiring the plant on eminent domain
             that this was their right to do so;  furthermore, if and
             when this should happen then the City of Laredo could
             perhaps get involved in providing technical assistance.
             Cm. Galo added that getting involved at this point could
             possibly result in a lawsuit from the county.

             Motion to table.

             Moved : Cm. Galo
             Second: Cw. Moreno
             For:  4                    Against:  3         Abstain:  0
             Cm. Agredano               Cm. Bruni
             Cm. Galo                   Cm. Guerra
             Cw. Moreno                 Cw. Montalvo
             Cm. Valdez



        B. Requests by Council member John C.  Galo

          1. Discussion on the City's acquisition of the Plaza Theater
             with possible action.

             Cm. Galo asked if there was a business plan available
             before the actual purchase of the theater?  He stated that
             he was led to believe that the private sector was to do the
             restoration and now he understands that the city is to
             purchase and renovate.

             Larry Dovalina, Assistant City Manager, replied that the
             initial discussion was that the city was to purchase and
             restore and later indicated that the Centre for the Arts
             and the Mercado were to be done by the private funds and
             use this as a spearhead to revitalize the downtown area.

             Cm. Galo asked Mr. Dovalina if cost estimates on the
             renovation were available?

             Mr. Dovalina stated that the cost would be about $1 to $1.5
             million.  This would be a public assembly facility that
             will have arts activities with capability of a motion
             picture theater for festivals.

          2. Presentation by Mr. Rolando Herrera on the creation of a
             Small Business Advisory Center with possible action.

             Mr. Herrera advised Council that he had written a letter to
             serve as a follow-up on his comments made at the council
             meeting on Monday, July 20, 1998, regarding the small
             business sector of this city.  He reported that he had
             visited with Mr. Manuel Longoria, Jr., Assistant Director
             of the Economic Department of San Antonio.  Mr. Longoria
             advised Mr. Herrera that upon request from city officials
             they would provide detailed information of the structure
             and functions of the department that provides a number of
             services to the small business sector.

             Motion to instruct staff to invite someone from San Antonio
             to make a presentation after the budget hearings.

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

          3. Discussion and possible action on a request by Mr. Alex De
             Luna for funding to send local athletes on a national meet.
             This club was sponsored by the city last year.

             Cm. Galo announced that Mayor Flores had already allocated
             the same amount of funds as she had last year for this
             club.



             Mr. De Luna introduced the team members who were present at
             the meeting.  The members who present were:  Andy Vera from
             Martin High School running in the 4x800 relay, Alexandra
             Torres from Nixon High School - Heptathalon, Ricky
             Rodriguez from Cigarroa High School - Steeplechase and
             4x800 relay, Eddie Gonzalez from Trautmann Middle - 3000
             and 1500 meter run, Jessica Ortiz from St. Augustine - 1500
             and 800 meter run, Oscar Laurel III from Gutierrez
             Elementary - shot put, and Vanessa Gonzalez from St. Peters
             Elementary School - high jump.

             The other participants not present were: Albert Contreras,
             United - Javelin, Willie Elizondo, United - stepplechase
             and 4x800 relay, Dinorah Jacinto, Alexander - long jump,
             Sabino Mena, United South - 3000 meter run, and Oscar
             Trevino, Nixon High School - 4x800 relay.

        C.  Requests by Council member Eliseo Valdez Jr.

          1. Request for status report on the upgrade of our 911 System,
             with possible action.

             Larry Dovalina, Assistant City Manager, reported that the
             city started working on replacing the 911 equipment about 2
             years ago and that staff from fire and police departments
             had visited different sites to check different systems.
             Staff had concluded that the equipment that was being
             recommended did not meet Laredo's need, as it did not
             address wireless technology.

             Cm. Valdez asked how long had the city had this equipment
             and how long should it be kept?

             Mr. Dovalina responded by saying that he would not quote
             what he had been told but added that the equipment was
             outmoded.

             Agustin Dovalina, Police Chief, stated that he had a number
             of meetings with Sheriff Juan Garza and that he has shown
             interest in consolidating the 911 system with the city.

             Florencio Pena, City Manager, asked Larry Dovalina to
             clarify the time frame for the proposals for the new
             system.

             Mr. Dovalina stated that it would be less than a month and
             added that staff was in the process of having a presenta-
             tion on the new equipment made to Council.

    X. PUBLIC HEARINGS

     26.  Public hearing amending Section 24-82.3(d), Off Premises
          Signs, of the Laredo Land Development Code. The Planning and
          Zoning Commission recommends approval of this amendment.


                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending Section 24-82.3(d), Off Premises Signs, of
          the Laredo Land Development Code.

          Motion to open the public hearing.

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

          Keith Selman, City Planner, made reference to the corrections
          being made to the ordinance stating that the purpose was to
          redefine to clear ambiguity in the present ordinance.

          Corrections:
          -language that will prohibit new off premise sign companies
           from coming to Laredo to do business.
          -number of signs allowed for each company; language was not
           restrictive enough to prohibit one company from forming a new
           company name and using more signs.

          Ron Whitehawk, representing Lamar Advertising, wanted some
          reassurance and asked if the ordinance amendment would close
          the loop hole that existed in the past?

          Mr. Selman replied that was the intention.

          Raul Guzman also with Lamar Advertising, stated that he also
          supported the ordinance amendment.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     27.  Public hearing amending Section 24-92, amendments or district
          changes, of the Laredo Land Development Code, by providing for
          notification to property owners within 200 feet of the site of
          a proposed zone change of an appeal to City Council of an
          unfavorable recommendation by the Planning and Zoning
          Commission.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending Section 24-92, amendments or district
          changes, of the Laredo Land Development Code, by providing for
          notification to property owners within 200 feet of the site of
          a proposed zone change of an appeal to City Council of an
          unfavorable recommendation by the Planning and Zoning
          Commission.



          Motion to open the public hearing.

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

          Juanita Martinez stated that she is in favor of the ordinance
          change but suggested that the city should change the wording
          on the notification letter.  As the letter reads now it only
          states the proposed zone change but does not give any
          specifications of the type of businesses that would be brought
          to the area.  Also, the letter should advise residents that
          once this zone change is approved it will be difficult to
          change back to the original zone.

          Marina Ramirez added that should amend it to 400 feet for
          public notices instead of 200 feet as per present ordinance.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     28.  Public hearing concerning the application by Arguindegui Oil
          Co., amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning 7.5076 acres, as further described by metes and
          bounds, located on SH359 east of the Bob Bullock Loop, from R-
          1 (Single Family Residential District) to M-1 (Light
          Manufacturing District). The Planning and Zoning Commission
          did not support the zone change to M-1 and recommended
          approval of B-4 on the site.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 7.5076 acres, as further described by metes
          and bounds, located on SH359 east of the Bob Bullock Loop,
          from R-1 (Single Family Residential District) to M-1 (Light
          Manufacturing District).

          Motion to open the public hearing.

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

          Ron Whitehawk, representing Arguindegui Oil Company, stated
          that the area immediately adjoining to the east of the area
          that is under consideration was rezoned by City Council to
          an M-1.  The proposed zone change is sandwiched by existing
          M-1s and it is the desire of the Arguindegui Family that the
          area be consistent with the present uses.

          Motion to close the public hearing and introduce the
          ordinance as an M-1 zone.

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

          Ordinance Introduction: Cm. Agredano

     29.  Public hearing concerning the application by Arguindegui Oil
          Co., amending the Zoning Ordinance (Map) of the City of Laredo
          by rezoning 10.8623 acres, as further described by metes and
          bounds, located on SH359 east of the Bob Bullock Loop, from R-
          1 (Single Family Residential District) to M-1 (Light
          Manufacturing District). The Planning and Zoning Commission
          did not support the zone change to M-1 and recommended
          approval of B-3 on the site.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning 10.8623 acres, as further described by
          metes and bounds, located on SH359 east of the Bob Bullock
          Loop, from R-1 (Single Family Residential District) to M-1
          (Light Manufacturing District).

          Motion to open the public hearing.

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

          Ron Whitehawk, representing Arguindegui Oil Company, stated
          that staff concerns of R-1s backing into M-1s is appreciated
          but in lieu of the fact that this is a highway, commercial
          development can occur.  He further stated that the only letter
          that was received from adjoining neighbors was from Fiesta Ice
          who are in support of the zone change.

          Juanita Martinez spoke against an M-1 zone approval.

          Motion to close the public hearing and introduce the
          ordinance as M-1 zone change.

          Moved : Cm. Agredano

          The motion died for lack of a second.

          Motion to close the public hearing and introduce the ordinance
          as per staff recommendation that of B-3 zone.

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


          Ordinance Introduction: City Council except Cm. Agredano

     30.  Public hearing concerning the application by Rafaela G.
          Juarez, amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 1 and the west 1/3 of Lot 2, Block
          2156, Eastern Division, located on the 3100 Block of Mercer
          Street, from AG (Agricultural District) to R-3 (Mixed
          Residential District).  The Planning and Zoning Commission
          recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 1 and the west 1/3 of Lot 2, Block
          2156, Eastern Division, located on the 3100 Block of Mercer
          Street, from AG (Agricultural District) to R-3 (Mixed
          Residential District).

          Motion to open the public hearing.

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

          There is no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: Cm. Galo

     31.  Public hearing concerning the application by Celestino
          Mendiola III, Owner and Ramiro Del Bosque, Applicant, amending
          the Zoning Ordinance (Map) of the City of Laredo by rezoning
          Lot 7, Block 90, Eastern Division, located at 103 Corpus
          Christi Street, from R-3 (Mixed Residential District) to B-3
          (Community Business District).  The Planning and Zoning
          Commission recommends approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 7, Block 90, Eastern Division, located
          at 103 Corpus Christi Street, from R-3 (Mixed Residential
          District) to B-3 (Community Business District).

          Motion to open the public hearing.

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



          Marina Ramirez spoke against the zone change because it is
          getting harder for her to get to her job site due to the
          traffic increase in that area.

          Motion to close the public hearing and table.

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

     32.  Public hearing concerning the application by Ramiro Villarreal
          amending the Zoning Ordinance (Map) of the City of Laredo by
          rezoning Lot 2 and the west 1/2 of Lot 4, Block 404, Eastern
          Division, located at 3611 Logan Avenue, from R-3 (Mixed
          Residential District) to B-1 (Limited Business District).  The
          Planning and Zoning Commission recommends denial of the zone
          change and approval of a Conditional Use Permit for auto
          repair.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 2 and the west 1/2 of Lot 4, Block 404,
          Eastern Division, located at 3611 Logan Avenue, from R-3
          (Mixed Residential District) to B-1 (Limited Business
          District).

          Motion to open the public hearing.

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

          Ron Whitehawk, representing Ramiro Villarreal, stated that
          Mr. Villarreal has had this auto repair shop for over 25 years
          and that this is their only means of income.  He further
          explained that since Mr. Villarreal has had to retire for
          health reasons his son has taken over the shop and lives there
          with his parents.  Several of the residents signed a petition
          and indicated that they consider this to be a neighborhood
          service rather than a neighborhood nuisance.  The Planning
          Commission is recommending that this be addressed as a
          conditional use permit and Mr. Villarreal is therefore
          accepting the conditional permit as a means of continuing to
          work his auto repair shop.

          Juanita Martinez stated that the applicant requested a B-1
          zone change and all the Planning Commission has to do is
          approve or disapprove and not make a recommendation for a
          conditional permit.

          Adolfo Villarreal, son of Ramiro Villarreal, stated that the
          vehicles parked on the street are not from the business except
          when they were cleaning up their lot and asked for approval of
          the zone change.


          Motion to close the public hearing and deny the zone change
          and not approve the conditional use permit.

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

     33.  Public hearing concerning the application by Jose Carlos
          Casanova, amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 10, Block 115, Western Division,
          located at 319 Victoria Street, from R-3 (Mixed Residential
          District) to B-1 (Limited Business District). The Planning and
          Zoning Commission recommended approval of this zone change.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lot 10, Block 115, Western Division,
          located at 319 Victoria Street, from R-3 (Mixed Residential
          District) to B-1 (Limited Business District).

          Motion to open the public hearing.

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

          Andy Reyes, Attorney representing Jose Carlos Casanova,
          President of Casanova Auto Parts who is requesting approval
          of the proposed zone change.  He added that there are several
          businesses in the vicinity and that the owner has provided
          a site plan for parking.

          Marina Ramirez stated that she had a petition with 14 names
          opposing the zone change request from its present R-3 to a B-1
          zone at the 300 block of Victoria.

          Motion to close the public hearing and concur with staff to
          deny the zone change request.

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

     34.  Public hearing concerning the application by Robles Real
          Estate Partnership, Les Norton, amending the Zoning Ordinance
          (Map) of the City of Laredo by rezoning Lots 4 and 5, Block
          3, Western Division, located at 308 Convent Avenue, from CBD
          (Central Business District) to B-3 (Community Business
          District).  The Planning and Zoning Commission recommends
          denial of the zone change request to B-3.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Zoning Ordinance (Map) of the City of
          Laredo by rezoning Lots 4 and 5, Block 3, Western Division,
          located at 308 Convent Avenue, from CBD (Central Business
          District) to B-3 (Community Business District).

          Motion to open the public hearing.

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

          Anthony McGettrick, representing some of the opponents of this
          application, including Mr. George Beckelhymer stated that he
          had presented an argument to the Planning and Zoning
          Commission referring to the procedural rule of the 6 month
          waiting period to reapply for a zone change.

          Keith Selman, Planning and Zoning Director, informed Council
          that the applicant's initial application had been for a B-3
          zone change.  It was recommended by the Planning and Zoning
          Commission to approve a Conditional Use Permit, which the
          applicant accepted.  Mr. Selman continued to explain that by
          matter of procedure (at the time, it has changed due to this
          particular case) when staff would receive an acceptance
          indication from an applicant, it would be considered as a
          basic amendment to the application.  He further stated that
          the application was presented to Council and action was taken,
          the applicant then came forward and stated that his original
          application had requested a B-3 zone change.  At this point, a
          public notification has been presented to the Planning and
          Zoning Commission and have redone the notice completely to a
          B-3 zone change.

          Motion to close the public hearing and deny the zone change
          request.

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

     35.  Public hearing approving a contract with the Texas Natural
          Resource and Conservation (TNRCC) and budget in the amount of
          $25,000 to continue the operation of a continuous air
          monitoring station (CAMS) by the City of Laredo Health
          Department for the period beginning September 1, 1998, through
          August 31, 1999.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving a contract with the Texas Natural Resource
          and Conservation (TNRCC) and budget in the amount of $25,000
          to continue the operation of a continuous air monitoring
          station (CAMS) by the City of Laredo Health Department for the
          period beginning September 1, 1998, through August 31, 1999.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     36.  Public hearing approving an amendment to the contract with the
          Texas Department of Health and budget in the amount of $95,483
          for the HIV/AIDS Health and Social Services Project of the
          City of Laredo Health Department for the period beginning
          September 1, 1998, through August 31, 1999.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving an amendment to the contract with the
          Texas Department of Health and budget in the amount of $95,483
          for the HIV/AIDS Health and Social Services Project of the
          City of Laredo Health Department for the period beginning
          September 1, 1998, through August 31, 1999.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     37.  Public hearing approving an amendment to the contract with
          the Texas Department of Health and Budget in the amount of
          $146,000 for the MCH Community Health Education Project of the
          City of Laredo Health Department for the period beginning
          September 1, 1998, through August 31, 1999.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving an amendment to the contract with
          the Texas Department of Health and Budget in the amount of
          $146,000 for the MCH Community Health Education Project of the
          City of Laredo Health Department for the period beginning
          September 1, 1998, through August 31, 1999.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.


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

          Ordinance Introduction: City Council

     38.  Public hearing approving an amendment to the contract with the
          Texas Department of Health and Budget in the amount of
          $200,000 for continuation of the La Familia Health Care
          Program of the City of Laredo Health Department for the period
          beginning September 1, 1998, through August 31, 1999.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving an amendment to the contract with the
          Texas Department of Health and Budget in the amount of
          $200,000 for continuation of the La Familia Health Care
          Program of the City of Laredo Health Department for the period
          beginning September 1, 1998, through August 31, 1999.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     39.  Public hearing approving an amendment to the contract with the
          Texas Department of Health and Budget consisting of $392,388
          in funds and $33,600 in State direct assistance, for the
          Comprehensive Public Health Services Program of the City of
          Laredo Health Department for the period beginning September 1,
          1998, through August 31, 1999.




                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving an amendment to the contract with the
          Texas Department of Health and Budget consisting of $392,388
          in funds and $33,600 in State direct assistance, for the
          Comprehensive Public Health Services Program of the City of
          Laredo Health Department for the period beginning September 1,
          1998, through August 31, 1999.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     40.  Public hearing approving an amendment to the contract with the
          Texas Department of Health and Budget in the amount of
          $205,928 for the Tuberculosis Elimination Program of the City
          of Laredo Health Department for the period beginning September
          1, 1998, though August 31, 1999.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving an amendment to the contract with the
          Texas Department of Health and Budget in the amount of
          $205,928 for the Tuberculosis Elimination Program of the City
          of Laredo Health Department for the period beginning September
          1, 1998, though August 31, 1999.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council


     41.  Public hearing approving an amendment to the contract with the
          Texas Department of Health and Budget in the amount of
          $155,809 (which consists of $93,750 in direct funds from the
          State and in-kind services match of $62,059) for the School
          Based Health Project of the City of Laredo Health Department
          for the period beginning September 1, 1998, through August 31,
          1999.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance approving an amendment to the contract with the
          Texas Department of Health and Budget in the amount of
          $155,809 (which consists of $93,750 in direct funds from the
          State and in-kind services match of $62,059) for the School
          Based Health Project of the City of Laredo Health Department
          for the period beginning September 1, 1998, through August 31,
          1999.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

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

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

     42.  Authorization to terminate the construction contract with Mr.
          Juan Madrigal, d/b/a J.M. General Construction, to provide the
          electrical work for the homes under the Lease/Purchase Program
          due to nonperformance, and request to award a contract in the
          recomputed amount of $96,297.00 to Ruperto Roel Rodriguez
          d/b/a Roel's Electric of Laredo, Texas. The recomputed
          contract amount will include the electrical work for 32 homes
          and the approved change order to install the ceiling fans.

          Motion to approve.

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

          Motion to recess as The Laredo Municipal Housing Corporation
          and convene as City Council.

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

  XII. ADJOURNMENT

          Motion to adjourn.

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

          Adjournment time: 9:35 p.m.
 
 

          I hereby certify that the above minutes contained in pages 01
          to 24 are true, complete, and correct proceedings of the City
          Council Meeting held on the 27th day of July, 1998.

 
 
                                          _________________________
                                            Gustavo Guevara, Jr.
                                               City Secretary