CITY OF LAREDO
                          CITY COUNCIL MEETING
                                M98-R-31
                              AUGUST 3, 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, VII
       Gustavo Guevara, Jr.,       City Secretary
       Florencio Pena, III,        City Manager
       Jaime L. Flores,            City Attorney

       Motion to waive the regular order of business and move up items
       B(1), C(2), and E(1).

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


   IV. INTRODUCTORY ORDINANCE

      2.  Ordinance amending Chapter 31, Article II, regarding sewers
          and sewage disposal by deleting the provisions in Section 31-
          23 titled "Notice of Violations" of the Code of Ordinances or
          the City of Laredo; thereby eliminating the notice requirement
          when an infraction is detected and allowing a compliant to be
          filed immediately in Municipal Court.

          Ordinance Introduction: City Council

      3. Amending Article IV, titled "Liquid Waste Transportation," of
         Chapter 31, of the City of Laredo Code of Ordinances, thereby
         correcting minor language problems in the article expanding the
         ordinance to include its application of secondary transporters;
         and adding a Section 31-170 regarding the requirements of a
         generator and disposal site operator; providing for
         severability and effective date and publication.

         Ordinance Introduction: City Council

      4. Closing as a public easement a 666.10 square feet parcel of
         land more or less (2' x 333.05') out of the 4200 block of Santa
         Cleotilde Avenue between the north right-of-way lines of Tacuba
         and Chicago Streets, said parcel of land, being encroached by
         the improvements situated on Lot 1, Block 1048-A, and Lot 1,
         Block 1091-A, both situated in the Western Division, City of
         Laredo, County of Webb, and authorizing the sale of "The
         Surface Only" of said parcel of land at the adjusted fair
         market value of $1,225.62 and authorizing the City Manager to
         execute all necessary documents to effectively convey fee
         simple title to Eduardo Diaz and providing for an effective
         date.

         Ordinance Introduction: Cm. Alvarado

      5. Closing as a public easement a 17.7 feet wide alley dedicated
         for public use in Block 894, 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, and
         providing for an effective date.

         Ordinance Introduction: City Council


    V. FINAL READINGS

       Motion to waive the final readings of ordinances #98-0-195,
       #98-0-196, #98-0-197, #98-0-198, #98-0-199, #98-0-200, #98-0-201,
       #98-0-202, #98-0-203, #98-0-204, #98-0-205, #98-0-206, and
       #98-0-207.

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

      6. 98-O-195  Ordinance granting 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.
                   (City Council)

                    Motion to approve Ordinance #98-0-195.

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

      7. 98-O-196  Ordinance amending Section 24-82.3(d), Off Premises
                   Signs, of the Laredo Land Development Code.
                   (City Council)

                   Motion to approve Ordinance #98-0-196.

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

      8. 98-O-197  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-197.

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

      9. 98-O-198  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).  (Council member Alfredo Agredano)

                   Motion to approve Ordinance #98-0-198.

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

     10. 98-O-199  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).  (City Council except Council member
                   Alfredo Agredano)

                   Mayor Flores announced that the ordinance should read
                   "from R-1 to B-3" instead of "R-1 to M-1".

                   Motion to approve Ordinance #98-0-199 as corrected.

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

     11. 98-O-200  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).
                   (Council member John C. Galo)

                   Motion to approve Ordinance #09-0-200.

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

     12. 98-O-201  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-201.

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

     13. 98-O-202  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-202.

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

     14. 98-O-203  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-203.

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

     15. 98-O-204  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-204.

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

     16. 98-O-205  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.
                   (City Council)

                   Motion to approve Ordinance #98-0-205.

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

     17. 98-O-206  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.  (City Council)

                   Motion to approve #98-0-206.

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

     18. 98-O-207  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.    (City Council)

                   Motion to approve Ordinance #98-0-207.

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


   VI. RESOLUTIONS

     19. 98-R-132  Authorizing the City Manager to enter into and
                   execute an interlocal government agreement between
                   the City of Laredo and the Laredo Independent School
                   District for the participation of the City of Laredo
                   Police Department in the School Resource Officer
                   Program, with compensation in the amount of One
                   Hundred Forty Seven Thousand Seven Hundred Forty
                   Dollars ($147,740.00) to be paid by LISD for the
                   1998-1999 school year, commencing on August 13, 1998.

                   Motion to approve Resolution #98-R-132.

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

     20. 98-R-135  The City Council confirmation of Mayor Flores
                   appointment of John C. Galo to the Water Issues
                   Committee.

                   Motion to approve Resolution #98-R-135.

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


  III.  MOTIONS

     21.  Approval of bid specifications and authorization to advertise
          for bids for the following:
          a) Street Sign Replacement Project - Traffic Safety
             Department

          Motion to approve.

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

     22.  Award of contracts to the LOW BIDDERS MEETING SPECIFICATIONS,
          Texas State Distributors, Austin, Texas, in the amount of
          $13,650.00 and C&G Wholesalers, Dallas, Texas, in the amount
          of $8,945.00, for the purchase of practice and service
          ammunition for the Police Department. The City did receive
          lower bids, however, the Police Department is requesting
          specific brands of ammunition that have been tested and have
          been found to be safe and reliable. Seventy cases of practice
          ammunition and thirty one cases of service ammunition will be
          purchased. A total of three bids were received for this
          purchase. Funding is available in the Police Department -
          Ammunition account.

          Motion to approve.

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

     23.  Award of contract to the SOLE BIDDER, Ceres Environmental
          Services, Inc., Brooklyn Park, MN., in the amount of
          $29,025.00, for the grinding of wood waste materials at the
          City Landfill. The wood waste consists mostly of mixed tree
          branches, tree stumps, pallets, and Christmas trees.
          Approximately 19,000 cubic yards of wood material will be
          grinded. Funding is available in the Landfill Fund Budget.

          Motion to approve.

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

     24.  Award of contract to the SOLE BIDDER, Jack Harrison and
          Associates, San Antonio, Texas, in the amount of $71,880.00,
          for the CNG (compressed natural gas) bi-fuel conversion of
          twelve, 1996 Ford trucks. The City has received grant funding
          from the Alternative Fuels Council for partial funding of
          these conversions.

          Motion to approve.

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


     25.  Award of contract to the LOW BIDDER, National Sanitary,
          Laredo, Texas, in the amount of $23,800.00 for the purchase of
          500,000 plastic bags for use in the City's Recycling Program.
          The per unit price is $0.0014/bag more than the previous
          contract purchase.  A total of four bids were received for
          this purchase.  Funding is available in the Landfill Fund
          Budget.

          Motion to approve.

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

     26.  Award of contract to the LOW BIDDER, Union Metal Corporation,
          DeSoto, Texas, in the amount of $26,151.00, for the purchase
          of traffic signal mast arm assemblies for installation at the
          intersections of Bartlett/U.S.59, Meadow/U.S.59,
          Arkansas/U.S.59, Bartlett/Bustamante, and Meadow/Bustamante.
          A total of four bids were received for this purchase.

          Motion to approve.

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

     27.  Award of contract to the LOW BIDDER, Gateway Uniform Service,
          Laredo, Texas in the estimated amount of $34,243.90, for the
          purchase of uniforms for the Bridge Department personnel. Full
          service contracts, which include alteration services, will be
          awarded to the low bidder. The City has included delivery
          deadlines in the contract documents requiring that the
          clothing be delivered within forty five days after receipt of
          order. The overall contract pricing is 16% more than the
          previous contract pricing. A total of two bids were received
          for this purchase. Funding is available in the Bridge System
          Uniforms account.

          Motion to approve.

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

     28.  Award of an engineering contract to WSBC Civil Engineers,
          Inc., Laredo, Texas, for an amount not to exceed $21,070.00,
          to design and prepare plans and specifications for (1) 1200
          Frost Street at Lyon Avenue (Stone Avenue to McPherson Avenue)
          Drainage Improvements and for (2) 400 W. Plum Street at San
          Francisco Avenue Drainage Improvements along Plum Street from
          Barcelona Avenue to Zacate Creek. Both projects are to
          alleviate localized flooding. Funding is available in the 1998
          CO Issue.


          Motion to approve.

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

     29.  Award of an engineering contract for an amount not to exceed
          $16,000.00, to Howland Surveying Company, Inc., Laredo, Texas,
          to provide professional engineering services for surveying and
          providing metes and bounds descriptions and maps for the
          acquisition of a tract of land approximately 850 L.F.  in
          length and 120 feet wide for the extension of the University
          Blvd., West of the Bob Bullock Loop to intersect the existing
          Casa Verde Road, and for the survey work and mapping required
          to vacate that portion of Casa Verde Road North of this
          intersection northward to the intersection of Casa Verde Road
          with the Bob Bullock Loop and for the design and preparation
          of plans and specifications for the road extension. Funding is
          available in the Capital Improvements.

          Motion to approve.

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

     30.  Approval of change order no. 1, a net decrease of $63,986.00,
          to the construction contract with Krueger Construction
          Company, Victoria, Texas, to delete storm Drainage
          improvements along the parking lot already constructed through
          Phase B, and to add the removal of clay subgrade,
          modifications to the parking lot elevations to comply with
          Americans with Disabilities Act (ADA), and other related
          items, and to add 39 working days for the Laredo International
          Airport Passenger Terminal and Related Airside/Landside
          Improvements Phase C Landside and Landscape. The original
          contract amount was $2,097,481.75. This change order brings
          the total contract amount to $2,033,495.75. Funding is
          available in Improvements Other Than Buildings.

          Motion to approve.

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

     31.  Approval of amendment no. 2, for an amount not to exceed
          $55,000.00, to the Resident Project Representative (inspection
          services) contract with Mejia Engineering Company, Laredo,
          Texas, to add inspection services for the Laredo International
          Airport Passenger Terminal and Related Airside/Landside
          Improvements Phase D - New Parallel Taxiway to comply with
          Federal Aviation Administration (FAA) Requirements. Mejia
          Engineering Company is providing inspection services for the
          Laredo International Airport Passenger Terminal and Related
          Airside/Landside Improvements Project Phase B. The original
          contract amount was $104,000.00. This amendment brings the
          total contract amount to $165,500.00. Funding is available in
          Inspection Fees.

          Motion to approve.

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

     32.  Acceptance of the Relocation of Utilities along the proposed
          Widening of U.S. Highway 59 between San Dario and Ejido Avenue
          and approval of final payment in the amount of $30,541.35 to
          Price Construction, Inc., Laredo, Texas. Funding is available
          in the Retainage Payable.

          Motion to approve.

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

     33.  Acceptance of the Laredo International Airport Passenger
          Terminal and Related Airside/Landside Improvements Phase B as
          substantially complete; approval to retain $50,000.00, for the
          completion of pending items and approval to release partial
          retainage in the amount of $512,064.73, to H.B.  Zachry
          Company, San Antonio, Texas, Funding is available in the
          Retainage Account.

          Motion to approve.

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

     34.  Acceptance of the Santa Isabel Reverse Osmosis Facility
          Project, and approval of final payment in the amount of
          $32,062.89 to Ramex Construction Company, Inc., Houston,
          Texas, which is the release of the retainage for the punch
          list items completed.  Funding is available in the Retainage
          Payable.

          Motion to approve.

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

     35.  Approving the submission of the 1998 Consolidated Plan to the
          U.S. Department of Housing and Urban Development in request
          for funding through the 24th Action Year Community Development
          Block Grant (CDBG) in the amount of $4,274,000.00 and
          $39,900.00 in anticipated CDBG program income; the 1998 HOME
          Investment Partnerships Program (HOME) in the amount of
          $1,257,000.00; and the 1998 Emergency Shelter Grant (ESG) in
          the amount of $167,000.00 and authorizing the City Manager to
          execute all documents as a result of the Plan's submission.


                24th AY Community Development Block Grant

           Community Development Administration . . . . . . .$620,533
           Housing Rehabilitation Administration  . . . . . .$128,196
           Housing Rehabilitation Loan Program. . . . . . . .$350,000
           Code Enforcement . . . . . . . . . . . . . . . . .$251,050
           Paving Project 61 (includes anticipated program
             income $39,900). . . . . . . . . . . . . . . . .$316,900
           School Sidewalk Approaches, District IV. . . . . .$150,000
           Acquisition of Park Land . . . . . . . . . . . . .$200,000
           East Hachar Recreation Center. . . . . . . . . . .$700,000
           Hamilton Hotel - Section 108 Loan
             Repayment. . . . . . . . . . . . . . . . . . . .$148,000
           Tinaja/Chacon Pilot Channel. . . . . . . . . . . .$410,000
           Graffiti Removal Program . . . . . . . . . . . . .$ 28,359
           Acquisition & Relocation Related
             to Lafayette Widening. . . . . . . . . . . . . .$675,000
           Zacate Creek Linear Park
             (Saunders to Canal). . . . . . . . . . . . . . .$200,000
           Blaine/Milmo/Loop 20 Improvements. . . . . . . . .$ 90,000
           Clark/Hendricks Street Improvements. . . . . . . .$ 45,862

                             1998 Home Grant

           New Construction . . . . . . . . . . . . . . . . .$345,997
           Down Payment Assistance. . . . . . . . . . . . . .$600,000
           15% Community Housing Development
             Organization Set Aside . . . . . . . . . . . . .$188,550
           Administration . . . . . . . . . . . . . . . . . .$122,453

                      1998 Emergency Shelter Grant

           Homeless Prevention Program. . . . . . . . . . . .$ 47,595
           Homeless Shelter Program (Operations). . . . . . .$111,055
           Administration . . . . . . . . . . . . . . . . . .$  8,350

           Motion to approve.

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

     36.   Authorizing to award architectural/engineering consultant
           contract for the Paseo Del Antiguo Laredo Pedestrian Facility
           Project, an ISTEA Enhancement Project, to Sprinkle Robey
           Architects, the contract amount is $120,000.

           Motion to approve.

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


 VIII. CITY MANAGER'S REPORT

     37.  Status report for the Colonias Facility Plan with possible
          action.

          Fernando Roman, Utilities Director, reported that his
          department is presently working with the consultants on the
          scope of work that would incorporate the two possibilities:

          1. looking at what we currently have, septic tanks; or
          2. cost of developing a different system

          He continued to report that preparations for the STEP (Small
          Town Environmental Program) are being made to incorporate it
          with the study and present it as an equity.  We should be
          signing the contract this week, should get funding by April
          1999, and possible completion of construction by Spring of
          2001.

     38.  Status report on the Santa Isabel Water Well with possible
          action.

          Fernando Roman, Utilities Director,  reported that at the last
          meeting Cm.  Alvarado had requested that his department
          contact STEP (Small Town Environmental Program) for possible
          funding to bring water from the Santa Isabel Water Well to the
          residents of Mines Road who reside within the 1,000 foot. city
          limits.  We were informed that they would consider if they
          were provided with a preliminary engineering report.  Mr.
          Roman further added that the report would cost about $2,000 so
          he offered to contribute $1,000 to get this project going.  He
          continued to explain that he was also informed that should the
          project be feasible the city should contact the county to look
          into the Los Minerales, Los Minerales Annex, and Colonia Beto
          Santos as dwelling units.

          Motion to contribute $1,000 to defray half of the cost of a
          preliminary engineering study for the feasibility of STEP for
          Mines Road residents.

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

          Motion to instruct utility staff to request assistance from
          Commissioners Court to secure funding from the Texas
          Department of Housing and Community Affairs and STEP and to
          discuss the setting up of a water point at the Mines Road
          area.


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

     39.  Informing Council of the status of the Chacon Creek
          interceptor project.  The EPA has outsourced the environmental
          review and expects to issue the findings of no significant
          impact (FONSI) by December 1998.  Bids can be solicited
          immediately afterwards.

          Fernando Roman, Utilities Director,  reported that the city
          had submitted an environmental information document to the EPA
          for review in March of this year.  We were informed in May
          that it would take 6 to 8 months to review the project so we
          offered to pay to outsource the review for a quicker response
          but were told by EPA that they could not take our money.

          By July 31, the EPA will outsource the Chacon Creek Inter-
          ceptor and the consultant is expected to complete the review
          in 60 days.  The EPA will then comment in 60 days and issue
          the FONSI (Findings of No Significant Impact) sometime in
          December 1998, but the EPA has now informed us that they have
          revised their review time from 6-8 months to 14-18 months.

     40.  Report on the Urban Empowerment Zone Application process.

          Cindy Collazo, Director of Community Development, informed
          Council that Mr. John J. Kane, AICP, will be in Laredo from
          August 10th thru the 14th, and will be at the Laredo Civic
          Center on Wednesday, August 12th form 8:00 A.M. to 5:00 P.M.
          The purpose of this meeting is to inform the community of the
          formulation of the Empowerment Zone application, and the
          activities to be supported.  She further stated that in order
          to inform the public about the meeting on the 12th, she will
          be advertising through the media and doing some Public Service
          Announcements.

          Mrs. Collazo further informed Council that she had hired a
          temporary employee who will be working full time with Mr.
          Kane.  Ms. Susie Verdin is a 1994 United South High School
          graduate, is a recent graduate from Harvard University and a
          Commissioned 2nd Lieutenant from the Air Force.

     41.  Request for Executive Session pursuant to Texas Government
          Code Section 551.071(1)(A), to discuss contemplated litigation
          by Texas A&M International University, and return to open
          session for possible action thereon.

          Motion to go into Executive Session pursuant to Texas
          Government Code Section 551.071(1)(A), to discuss contemplated
          litigation by Texas A&M International University, and return
          to open session for possible action thereon.

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

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

     42.  Advising the City Council of the transfer of line-item
          savings, mainly in the contractual services of the street
          construction division of the Capital Improvement Fund., to
          Construction projects of the same fund for $155,000. This
          amount is in addition to the H.E.B. contribution of $200,000
          to fund in part the total cost of $432,331 of the Calton Road
          widening project authorized by City Council on 7/20/98. The
          complement to the funding required will be in the form of in-
          kind services to be provided by the Traffic Department.

          Motion to approve funding for the Calton Road widening project
          from the line-item savings in the Capital Improvement Fund.

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


   IX. COMMUNICATIONS

         1 - Jennie Littleton, from the Laredo Little Theater Advisory
             Board, who invited the Mayor, Council, and Staff to their
             10th Annual Sammy Awards on Saturday evening on the 15th
             day of August at 8:00 p.m. located at 602 Thomas Avenue.

         2 - Cm. Alvarado reminded everyone of the National Night Out
             Event that will be taking place on Tuesday, August 4, which
             is tomorrow.  The event is directed for crime prevention
             and activities for the community and the different
             neighborhoods.  Cm. Alvarado further informed the public of
             the different locations that would be hosting the event.

         3 - Cm. Galo reminded the public that there were only two days
             of early voting left and the election date of August 8th
             and asked that all registered voters express their opinion
             by voting on the sales and use tax of 1/4 of one cent.

    X. CITY COUNCIL PRESENTATION AND DISCUSSION

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

        A. Requests by Mayor Elizabeth G. Flores

           1. Consideration and possible action to contract Judith
              Zaffirini, Ph.D. D.B.A. Zaffirini Communications to
              conduct a training workshop on August 29, 1998 with
              members of Council and various boards and commissions.
              (See Attached)

              Motion to approve the contract with Zaffirini Communica-
              tions to conduct a training workshop on August 29, 1998
              with members of the Council and various boards and
              commissions and to include other workshops that will
              benefit city staff.

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

              Cm. Bruni instructed staff to find additional funds to
              include city departments in this program such as 911,
              Public Access, and Airport Information Booths and other
              departments that deal with the public.

              Dan Migura, Administrative Services Director, reported
              that 300 employees had completed a series of workshops
              about three weeks ago in the area of customer service.

        B. Requests by Council member Alfredo Agredano

           1. Presentation by Concord Hills residents.

              Yolanda Garcia, representing Concord Hills residents,
              thanked Council for the programs for affordable homes and
              for making it possible for them to purchase these homes.
              She further thanked the developer for providing a
              community center, basketball courts, and playgrounds.  Ms.
              Garcia further expressed thanks to the Community
              Development Department for their assistance in the loan
              programs.

        C. Requests by Council member Louis H. Bruni

           1. Status reports on long term water supply projects with
              possible action.
              (Co-sponsored by Council member Joe A. Guerra)

              Fernando Roman, Utilities Director, reported to Council
              that the city is pursuing a long term strategy to augment
              or conserve the water we already have.  He continued to
              explain on each of the following:

              1. Water Right Acquisition - the city needs to take a
                 different position when negotiating water rights and
                 the best alternative is to take the water because of
                 how the water is distributed with 90% agriculture and
                 10% municipal,

              2. Groundwater Resources - the city has received proposals
                 from different firms that we will be contracting to
                 identify aquifers with a volume of water for municipal
                 supply that will be within a 30 to 35 mile radius of
                 the Laredo area.

              3. Aquifer Storage and Recovery Project - this is the
                 reversal process of taking water from the ground, this
                 is done when the water quality is not good.  It is
                 stored under the ground and used in case of severe
                 droughts.

              4. USGS Aquifer Mapping - this is a $650,000 contract,
                 with the city paying for half.  Phase I report is due,
                 but it is five months late.  This report will be used
                 by the consultants who will help locate ground water.

              5. Effluent Reuse Strategy - this is a long term strategy
                 to develop a desirability index because reusing waste
                 water today may not be as appealing as it would be 20
                 to 50 years from now.

                 Cm. Bruni stated that should a possibility exist staff
                 should look into putting effluent into Lake Casa Blanca
                 with whatever excess the city may have and maintain it
                 as a constant level lake for emergencies.  He continued
                 to explain that this effluent could be reused by piping
                 it back into the Jefferson plant or use a portable unit
                 to purify it.  Cm. Bruni then added that it would
                 benefit Laredo to have utility staff contact state
                 level offices to inquire about this matter.

              6. Conservation Strategy - this could be done by severe
                 restrictions on irrigation with severe enforcement.
                 The city could save and recover 25% of its water.

              7. Weather Modification - will be working with the Water
                 Development Board to work out a program plan for the
                 next season.

              Motion to instruct staff to find a cost estimate to drill
              a well beneath the Wilcox Aquifer at the Jefferson Street
              Plant and look for a funding source to drill a test well
              with appropriate casings and if all four sands are there
              we can use it immediately.

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

          2.  Discussion and possible action on the Texas Department of
              Housing and Community Affairs Third Annual Colonia Clean-
              up in El Cenizo on Sunday, August 16.  The department
              would like to request the City of Laredo's participation
              by waiving City fees at the landfill.

              Ms. Nelda Barrera, from the Texas Department of Housing
              and Community Affairs, informed Council that this is the
              Third Annual Event that will be focused on El Cenizo;
              therefore, she requested support from City Council to use
              the landfill on Sunday and waive the City's fees.

              Florencio Pena, City Manager, stated that next year staff
              will recommend that City Council establish an Enterprise
              Fund to be informed of the revenues that the landfill
              generates.

              Cm. Valdez suggested that the state be notified of the
              city's waiver of fees and establish some type of mandate
              that will allow the city to be credited for this service.

              Motion to waive the city's fees and have the Texas
              Department of Housing and Community Affairs develop a long
              term solution and present to Council at a future date.

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

        D. Requests by Council member Eliseo Valdez Jr.

           1. Status report from staff on IH35 Saunders Project.

              Gabriel Martinez, Assistant City Engineer, reported that
              TXDOT had sent a letter to inform the engineering
              department that the IH35 Saunders Project was about 60%
              complete and 20% ahead of schedule.  Their projected date
              of completion would be in 5 months.

           2. Presentation by Jesse Ibarra and Fausto Sosa
              concerning a taxicab permit.
              (Co-sponsored by Council member Joe A. Guerra)

              This item was requested to be tabled by Mr. Ibarra due to
              the absence of their attorney Fausto Sosa and that it be
              placed back on the agenda at the next meeting.

        E. Requests by Council member Joe A. Guerra

           1. Discussion and possible action concerning a 100 foot
              right-of-way given by the Trautmann Investment Company for
              the purpose of Eden Lane through the Eden Subdivision
              Plat.

              Mr. Jack Foster with Foster Engineering, stated that the
              100 foot right-of-way was given to Webb County back in
              1976 with the condition that a road be built--this road is
              now Eden Lane.

              The Trautmann Family now requests that it be given back to
              use for parking at the building they have on the corner of
              Eden lane and Del Mar Boulevard.

              Cm. Guerra informed Council that he had requested that
              administrative staff look into this matter over a week ago
              but that no one had taken the time to review it.  Cm.
              Guerra then provided the Mayor with a letter from Mr. John
              Foster which contains a revised legal description and plat
              as had been requested by the City Engineering Department.

              Mayor Flores requested that staff review the matter and
              come back to Council with a report.

           2. Status report on the accident of July 18, 1998 at the
              entrance of Unitec Industrial Park, with possible action.

              Police Chief Agustin Dovalina reported that on Saturday,
              July 18, 1998 at 4:25 P.M. at the 1100 block of Uniroyal
              an accident occurred involving two tractor trailers and
              the train.  The investigation revealed that one of the
              tractor trailers was traveling west bound on Uniroyal and
              collided with the train which was traveling south bound.
              The second tractor trailer collided with the first unit
              that had collided with the train.  Citations were issued
              to both drivers.

              Mr. Jack Foster with Foster Engineering, stated that
              Unitec Developers had programmed for an overpass at this
              area which will cost $1.25 million--because the money is
              now available they will now energize the movement on this
              project.  An approximate time of completion should be
              about 6 months.

           3. Presentation by Fidel Santos requesting funds for Del Mar
              Little League Baseball, with possible action.

              Mayor Flores announced that Mr. Fidel Santos represented
              the Del Mar Little League but that he also is the
              coordinator for the City Wide All-Star League.

              Mr. Santos proudly announced that the team did very well
              in the Laredo All-Star Tournament and was one game away
              from being a state championship team.  He further
              explained that the team would be playing in Waco on
              Tuesday, August 4, and if the game is won would be going
              to Florida to continue with the tournament.

              Mayor Flores and Cm. Guerra informed Mr. Santos that she
              was making a contribution to his team from the Mayor's
              Promotional Budget and presented him with a check.

        F. Requests by Council member Consuelo "Chelo" Montalvo

           1. Presentation by the Laredo Custom Brokers and Freight
              Forwarders for the request of improvements to the existing
              road leading to the U.S. Customs Import Lot, with possible
              action.

              Florencio Pena, City Manager, reported that Arturo
              Dominguez representing the US Custom Brokers Association
              and Mere Gonzalez representing the US Freight Forwarders
              Association approached the city to consider construction
              of an access road behind Bridge II which would give GSA,
              Customs, and Immigration another access into the Import
              Lot.  By constructing this road the four commercial booths
              on the curb of Bridge II would be opened.


             Mr. Pena continued to inform Council that engineering staff
             had done a preliminary study and have contacted GSA and
             have been advised by GSA that they are interested in
             accomplishing this project to allow the bridge to handle
             more north bound trucks.  Brokers have committed to
             contribute $10,000 to the $54,000 actual cost to construct
             the road which could be completed in about 5 months.

             Motion to instruct staff to search for funding for this
             project.

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

   XI. PUBLIC HEARINGS

     44.  Public hearing amending the Laredo Police Departments FY 1997-
          98 budget in the amount of $92,100.00 to pay for the salaries
          and fringe benefits for six police officers that will be
          transferred from the COPS "Ahead" grant to the general fund
          due to the expiration of the grant. These police officers were
          hired under the COPS "Ahead" grant for a period of three
          years.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the Laredo Police Departments FY 1997-98
          budget in the amount of $92,100.00 to pay for the salaries and
          fringe benefits for six police officers that will be
          transferred from the COPS "Ahead" grant to the general fund
          due to the expiration of the grant. These police officers were
          hired under the COPS "Ahead" grant for a period of three
          years.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     45.  Public hearing amending the City of Laredo Police Departments
          FY 1998-99 budget in the amount of $3,000.00, to purchase a
          treadmill for the Police GYM.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo Police Departments FY
          1998-99 budget in the amount of $3,000.00, to purchase a
          treadmill for the Police GYM.

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council

     46.  Public hearing amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $3,000.00, and appropriate these funds
          to the Laredo Convention and Visitors Bureau regular salary
          line item to establish the position of a part-time information
          clerk for the information center at the Laredo International
          Airport Terminal.

                      INTRODUCTION OF AN ORDINANCE
          Ordinance amending the City of Laredo's 1997-1998 Annual
          Budget in the amount of $3,000.00, and appropriate these funds
          to the Laredo Convention and Bureau regular salary line item
          to establish the position of a part-time information clerk for
          the information center at the Laredo International Airport
          Terminal.

          Motion to open the public hearing.

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

          Ordinance Introduction: City Council


     47.  Public hearing regarding the proposed reprogramming of 19th,
          20th Action Year Community Development Block Grant (CDBG)
          Final Statements and the 1995 and 1996 Consolidated Plan as it
          pertains to the use of 21st and 22nd AY CDBG Grant funds for
          the purpose of reprogramming funds in the amount of
          $377,500.00 for the acquisition of the Plaza Theater.

           19th Action Year Community Development Block Grant
                             (Fund Balances)

            Paving Project #51                 $15,733
            J. Ortiz - E. Valdez Park          $ 2,628
            Tarver Improvements                $ 3,483
            East Central Park                  $ 2,604
            Street Lights                      $ 1,881
                                               $26,329

           20th Action Year Community Development Block Grant
                             (Fund Balances)

            Paving Project #57 Grants          $ 7,042
            Paving Project #58 Grants          $ 5,896
            Neighborhood Housing Services      $28,090
            Reserve Appropriation              $ 3,306
                                               $44,334

           21st Action Year Community Development Block Grant
                             (Fund Balances)

            Pace Street Drainage               $74,206
            Southgate Pilot Channel            $20,142
                                               $94,348

           22nd Action Year Community Development Block Grant
                             (Fund Balances)

            San Salvador/Pine/Chestnut
              Drainage                         $198,000
            Paving Project #59 Grants          $ 14,012
            Graffiti Removal Program           $    477
                                               $212,489

            Total of Funds to be Reprogrammed              $377,500

          The funds identified above are proposed to finance the
          following project:

                Acquisition of the Plaza Theater $377,500

          Motion to open the public hearing.

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

          There was no public input.

          Motion to close the public hearing and introduce the
          ordinance.

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

          Ordinance Introduction: City Council


  XII. ADJOURNMENT

          Motion to adjourn.                 Time: 8:14 p.m.

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

          I hereby certify that the above minutes contained in pages 01
          to 22 are true, complete, and correct proceedings of the
          City Council Meeting held on the 3rd day of August of 1998.



                                          _________________________
                                            Gustavo Guevara, Jr.
                                              City Secretary