CITY OF LAREDO
                          CITY COUNCIL MEETING

                         CITY COUNCIL CHAMBERS
                          1110 HOUSTON STREET
                          LAREDO, TEXAS 78040
                               5:30 P.M.


M99-R-01                      M I N U T E S         January 4, 1999


    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 called the meeting to order.

  III. ROLL CALL
       IN ATTENDANCE:
       Elizabeth G. Flores,             Mayor
       Alfredo G. Agredano,             Councilmember, District I
       Louis H. Bruni,                  Councilmember, District II
       John C. Galo,                    Councilmember, District III
       Cecilia May Moreno,              Councilmember, District IV
       Eliseo Valdez,                   Councilmember, District V
       Joe A. Guerra,                   Councilmember, District VI
       Mario Alvarado,                  Councilmember, District VII
       Consuelo "Chelo" Montalvo,       Councilmember, District VIII
       Gustavo Guevara, Jr.,            City Secretary
       Florencio Pena, III,              City Manager
       Jerry Bruce Cain,                Assistant City Attorney


   IV. MINUTES

     1. City Council Meeting, November 16, 1998
        City Council Workshop, December 14, 1998

        Cm. Bruni stated there were corrections on both minutes.  On
        page 25, November 16th, 1998, first paragraph there are
        first names corrections:  former Governor Dolph Briscoe not
        "Dole", Mr. Gene Walker instead of "Jim", and Mr. Lewis
        Bracey instead of "Louis".  Also on this same meeting, Cm.
        Valdez spoke of the seed money not "seat money".

        On December 14, 1998 minutes there is one correction where
        it reads "grime" water, should be "brine" water.

        Motion to approve the minutes as corrected.

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

        Motion to consider item #22 at this time.

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

    V. INTRODUCTORY ORDINANCE

     2. Amending Article II, titled "Administration and
        Enforcement," Division 2, titled "Transportation and Traffic
        Safety Advisory Committee, of Chapter 19, of the City of
        Laredo Code of Ordinances, thereby revising Section 19-51,
        to delete item (3) which refers to advising the City Council
        and City Manager on issues pertaining to the operation of
        the Municipal Transit System.

        Ordinance Introduction:  City Council

     3. Adding New Section 19-541 titled "Transit Committee" of
        Article XII, titled "Transit System" of Division 1, titled
        "Generally" of Chapter 19, of the City of Laredo Code of
        Ordinances, thereby, establishing the Transit Committee;
        providing for three members; setting forth its duties; and
        providing for effective date.

        Ordinance Introduction:  City Council

   VI. FINAL READING
       Internet Available: http://www.cityoflaredo.com

       Motion to waive the final reading of ordinances #99-O-001,
       #99-O-002, #99-O-003, #99-O-004, #99-O-005, #99-O-006, and
       #99-O-007.

       Moved : Cm. Bruni
       Second: Cm. Agredano
       For:  8                          Against:  0         Abstain:
       0
 
    4. 99-O-001  Ordinance authorizing the City Manager to execute a
                 Lease Agreement between the City of Laredo Airport
                 Fund, as LESSOR, and the City of Laredo Public Works
                 Department as LESSEE, for a tract of land containing
                 approximately 45,750 square feet located at 4402
                 Daugherty Avenue at the Laredo International Airport.
                  1. Lease term is for one year commencing on
                     December 1, 1998 and ending on November 30, 1999.
                  2. Monthly rent shall be $754.22.
                  (City Council)

                  Motion to approve Ordinance #99-O-001.

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

        99-O-002  Ordinance authorizing the City Manager to execute all
                  necessary documents to effectively convey fee simple
                  title to the United States of America, General
                  Services Administration for the sale, at its market
                  value, of certain City property described as a tract
                  of land consisting of 15,432.35 square feet (55.56' x
                  277.76) more or less, of the 1000 block of Salinas
                  Avenue between Washington and Victoria Streets and
                  being bounded on the east by Block 172, W.D. and on
                  the west by Block 171, W.D. Said street situated in
                  the Western Division, City of Laredo, Webb County,
                  Texas; provided however, that the City of Laredo will
                  retain the entire street property as a utility
                  easement, and providing for an effective date.
                  (City Council)

                 Motion to approve Ordinance #99-O-002.

                  Moved :  Cm. Bruni
                  Second:  Cm. Agredano
                  For:  8               Against:  0         Abstain:  0
 
        99-0-003  Ordinance establishing the authority for the Parks and
                  Recreation Department to charge certain fees for non
                  profit organizations, commercial and governmental
                  agencies for the use of Veterans Field and its
                  facilities for the purpose of conducting cultural,
                  social, recreational, and artistic events for the
                  citizens of Laredo.  (City Council)

                  Motion to approve Ordinance #99-O-003.

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

        99-O-004  Ordinance amending Chapter 32, Vehicles for hire,
                  Article IV, Scenic Tours and Chapter Convention
                  Service, of the Code of Ordinances of the City of
                  Laredo by specifically deleting the following sections
                  therein: 32-116, 32-117, 32-118, 32-119, 32-120,
                  32-121, 32-122, 32-123, 32-124, 32-125, 32-126, and
                  creating Sections 32-116, 32-117, 32-118, 32-119,
                  32-119.1, 32-119.2, 32-119.3, 32-119.4, 32-119.5,
                  32-119.6, 32-120, 32-121, 32-121.1, 32-121.2, 32-122,
                  32-123, 32-124, 32-124.1, 32-124.2, 32-124.3,
                  32-124.4, 32-124.5, 32-124.6, 32-124.7, 32-125,
                  32-126, 32-126.1, 32-129, 32-130, 32-131, 32-132,
                  32-133, 32-134, 32-135, 32-135.1, 32-135.2, 32-136,
                  32-136.1, 32-136.2, 32-137, 32-138, 32-139, 32-139.1,
                  32-140, and 32-140.1.  (City Council)

                  Motion to approve Ordinance #99-O-004.

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

        99-O-005  Ordinance Amending Article XII Titled "Transit
                  System," Division 3, titled "Bus Bench Advertising",
                  of Chapter 19, of the City of Laredo Code of
                  Ordinances, thereby revising Section 19-581(a), to
                  include item (6) which prohibits the advertisement of
                  tobacco products and alcoholic beverages; and to
                  delete the bus bench advertising rates on
                  Section 19-582 titled "rental rate".
                  (City Council)

                  Motion to approve Ordinance #99-O-005.

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

        99-O-006  Ordinance granting a license to Southwestern Bell
                  Telephone Company, to erect, construct, maintain and
                  operate a wire telecommunications system for a term of
                  4 years with one 4 year renewal option pursuant to the
                  City of Laredo's Wire Telecommunications System
                  registration and licensing ordinance of 1998 #98-O-
                  353; providing for effective date.  (City Council)

                  Motion to approve Ordinance #99-O-006.

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

        99-O-007  Ordinance amending the contract with the Texas
                  Department of Health and budget in the amount of
                  $74,409 for HIV/AIDS Housing Opportunities for Persons
                  with AIDS (HOPWA) Project of the City of Laredo Health
                  Department for the period beginning February 1, 1999,
                  through January 31, 2000.  (City Council)

                  Motion to approve Ordinance #99-O-007.

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

  VII. RESOLUTIONS

     5. 99-R-001  Authorizing the reissuance of a drilling permit for
                  the operation of the natural gas well, Notzon Well
                  No. 1 to Dynamic Production, Inc. The well is out of
                  Abstract 239, as further described by metes and bounds
                  located west of Highway 83, north of Tinaja Street,
                  and south of Saltillo Street.

                  Cm. Bruni stated that Drilling Review Committee met
                  with Dynamic Productions and they are in concurrence
                  with the proposed ordinance #99-R-001.

                  Motion to approve Resolution #99-R-001.

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

     6. 99-R-002  Appointment of Nancy De Anda, Rene Gonzalez, and
                  Leticia Palacios to the Convention and Visitors Bureau
                  (CVB) Advisory Board. There are currently three vacant
                  positions on the CVB Board.

                  Motion to approve Resolution #99-R-002.

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

     7. 99-R-003  Accepting the donation of an approximately 16.54 acre
                  parcel of land from Killam Ranch Properties, LTD, et
                  al; as right-of-way necessary for the extension of
                  Killiam Industrial Boulevard, from its present
                  intersection with Sara Road, in a northeasterly
                  direction to IH35, to a point approximately 1.5 miles
                  north of the intersection of FM3464 and IH35. Said
                  16.54 acre parcel of land being situated in Porcion
                  18, Abstract 21, and Survey 2143, Abstract 591,
                  partially within the City of Laredo, Webb County,
                  Texas; being more particularly described by a center
                  line of right-of-way description.

                  Motion to approve Resolution #99-R-003.

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

     8. 99-R-004  Authorizing the City of Laredo's support and
                  participation in the Laredo Clean Cities Coalition to
                  maintain Laredo's status as a city "in attainment" of
                  the air quality standards established by the
                  Environmental Protection Agency, and will help promote
                  the goals of the coalition to develop a strong
                  alternative fuel infrastructure that will provide for
                  the use of alternative fueled vehicles.

                  Motion to approve Resolution #99-R-004.

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

VIII.  MOTIONS

     9. Award of a construction contract to the LOWEST BIDDER,
        Pete Gallegos Paving, Inc., Laredo, Texas, in the amount of
        $229,500.00 for the construction of sidewalk improvements for
        the Trautmann, Alma Pierce, and Amparo Gutierrez Elementary
        Schools and related improvements. Funding is available in
        the 1998 CO Issue and the CIF Reserve.

        Cm. Valdez wanted to know which schools will be worked on, how
        soon can they expect this project to get off the ground, and
        what the construction completion time frame is?

        Rogelio Rivera, Engineering Department Director, stated that
        upon awarding, they will notify the contractor tomorrow.  Given
        the notice of awarded, they will probably take two to three
        weeks to get all bonding and contracts back from the contractor
        and get them for proper execution by our staff.  He added it
        will be another three weeks to a month before they can get the
        contractor actually on site.  The contractor will be given four
        months to complete the project or 120 calendar days.

        Motion to approve.

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

    10. Award of a construction contract to the LOWEST BIDDER,
        N.W. Builders, Inc., Temple, Texas, in the amount of
        $29,277,000.00 for the construction of the border facilities
        for the Laredo Northwest International Bridge (Fourth Bridge).
        The project consists of eleven buildings and security systems
        which include (1) City Administration Building, (2) Federal
        Administration Building, (3) Export Dock Building and Canopy,
        (4) the Import Dock Building and Canopy (5) the Empty Truck
        Inspection Pavilion, (6) Import Lot Exit Control Booth, (7)
        Shade Structure Building, (8) Truckers Pavilion, (9) Export
        Control Booth, (10) Primary Commercial Inspection Booths, and
        (11) Dog Kennels Building and includes related site work, water,
        and sanitary sewer improvements, storm drainage systems,
        stormceptor systems, landscaping, signalization, security
        fencing, illumination and lighting systems, concrete and asphalt
        paving, project marker/sculpture, and miscellaneous
        improvements. Funding is available in the Bridge System/Bridge
        #4 Taxable Bond; Bridge #4 Tax Exempt Bond and Bridge #4 SIB
        Loan.

        Mayor Flores asked that they explain what Alternate #1 and
        Alternate #2 represent?

        Florencio Pena, City Manager, explained that this is the project
        where they will be awarding the contract for the construction of
        a border station facility for the Fourth International Bridge.
        This is probably the single largest project the city has ever
        awarded.  Basically, addendum #1 is $900,000 additional cost to
        complete Phase I by March 15, 2000 so that we will be prepared
        to operate.   This addendum was a requirement as a result of a
        meeting held with Mexico about two months ago where they asked
        if we could open the bridge by March 15th.  We told them that
        this project should really be completed by September, 2000, but
        that we would put an addendum in the contract and that addendum
        will cost us $900,000 so that the bridge should be operational
        from our side by March 15, 2000.  The completion of the project
        will not be until September, 2000 so the base bid we are
        awarding today, is $29.2 million.

        He asked council to defer approval of Addendum #1 until they
        have had time to visit with Mexico one more time to confirm that
        the March 15th deadline is still satisfactory to them and if it
        is, then they would probably be back on January 21st to award
        Addendum #1 which means $900,000 more, but the project will be
        completed by March 15th.

        David Covarrubias explained that Addendum #2 is for using pre-
        engineered metal buildings in the project as an alternate for
        the building construction.  It turned out that the low bidder in
        this case actually turned the deductive alternate into an
        additive alternate.  In other words, if we force them to use
        pre-engineered buildings they would charge us more so we are not
        going to do that and they are going to build the building as per
        plans.

        Mr. Pena pointed that between now and January 21st they will
        need to visit with Mexico to confirm these dates.  They felt
        confident that March 15th date is still going to be a good date
        and they want to pursue that date.  They will be providing
        monthly reports to City Council.  He explained that we are well
        within budget and that this award will be conditioned on TxDot's
        approval of the plan.

        Cm. Galo said that considering all goes well and that we have
        $6 million of bond money left over, what do we do with those
        monies?

        Mr. Pena said that one option would be to prepay our loan and
        added there are other options that would have to be discussed
        with the financial advisors.

        Motion to approve.

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

    11. Award of a construction contract to the SECOND LOWEST QUALIFIED
        BIDDER, meeting the document specifications, Cantu America
        Construction Company, Inc., Laredo, Texas for a net award in the
        amount of $688,537.00 for the Bruni Library Conversion.  Funding
        is available in the Bruni Plaza Library.

        Cm. Galo wants staff to be consistent with the bid requirements
        and the bid bonds because we are rejecting some bidder and not
        rejecting others.

        Motion to approve.

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

    12. Award of contract number 99-033, to the SOLE BIDDER, G.T.
        Distributors, Inc., Austin, Texas, in the amount of $24,756.00,
        for the purchase of forty pistols for the Police Department.
        These pistols will be delivered within sixty days.

        Motion to approve.

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

    13. Award of contract number 99-008, to the LOW BIDDER, Southwestern
        Bell Mobile Systems, Laredo, Texas, in the estimated amount
        $159,448.80, for providing cellular phone service for all city
        departments. The contract term will be for a period of two
        years. The majority of the cellular phones will be upgraded to
        digital service technology. This technology offers features like
        caller ID and provides for more secure voice transmissions.  The
        contract pricing is approximately 50% less than the previous two
        year contract.

        Mr. Armando Castilla, Operations Manager of Southwestern Bell
        Wireless, briefed council on the Request for Proposal for the
        wireless service of the bid tabled at the last council meeting.
        He said that at that meeting Mr. Gutierrez from U.S. Cellular
        had asked that this item be tabled so that they could look at
        discrepancies on the spreadsheet.

        He explained that they did meet on December 29th, present were
        representatives from U.S. Cellular, Southwestern Bell Wireless,
        and city staff who went through the spreadsheet item by item.
        After the meeting was finished, Southwestern Bell was still the
        lowest and a responsible bidder for the wireless service.

        At that meeting Mr. Gutierrez asked that an 11% factor be used
        to quantify of put a dollar figure to the first incoming minute
        that U.S. Cellular offers on their rate plans.  He said he
        wouldn't accept that at the time and did not accept that,
        basically because it is hard to quantify that.  There are
        conditions as to when the first incoming minute applies, when
        it's free, and when it's not, but he did go over the issue over
        the weekend.  He factored in the 11% that he was asking and in
        doing so, he found out that about 22 accounts were affected out
        of the 130 accounts.  The amounts affected range anywhere from
        .30 to $8.80 on a monthly bill and it only affects rate plans
        where you exceed the package to minutes and it only affects
        those minutes.  That is not a significant factor, and added that
        still SWB wireless would be the lowest bidder.

        He also conducted other analyses and after conducting one
        analysis he said that for the August bill on those calls the
        city would be paying approximately $761.00 (additional) in
        charges, if they were to go with his competitor.

        He said we need to move forward, the city stands to save about
        $6,500 a month, and having table this item a couple of weeks
        ago, it's about $3,200 in savings that have been passed up at
        this time.  By not awarding the bid today that could grow for
        another two weeks to another $6,500.  He asked that the current
        recommendation by staff be accepted.

        Arturo Gutierrez, U.S. Cellular Representative, who said that
        when he mentioned the 11% of the incoming minute that was
        something that was already done with another government entity.
        He said he also went over the figures and used 19 numbers out of
        the 125 lines that the city has.  He does not know what figures
        were used by Mr. Castilla but his savings show that for a total
        period of 24 months there are $14,616.00 in savings.  If we look
        at those numbers and someone in the city did them, at this point
        and using the calculation given by the city, the city will gain
        a savings of $4,703.00 in the overall aspect.  This is only
        using 19 out of the 125 lines.

        Francisco Meza, Purchasing Director, stated that a determining
        factor is that each vendor is providing a package minute
        proposal to the city.  In other words we geared and used the
        usage pattern for four months.  He explained the process and
        criteria used for the evaluation criteria.  He explained that
        since Mr. Gutierrez questioned the spreadsheet and to be fair to
        everybody they went back and met with both vendors, went through
        each usage, went through what they recommended to the city, what
        we recommended and came to a concensus.

        He said that based on the evaluations, Southwestern Bell was
        being recommended.  There are two variables that they did not
        take into effect when they did the spreadsheet that Mr.
        Gutierrez eluded to and looking at it was difficult to determine
        who the low bidder is based only on that criteria.  The other
        criteria SWB had is that they had an extended home rate.  He
        added that both companies did some homework over the last
        meeting.  His evaluation and basically looking at both
        proposals, he is still of the opinion that SWB is providing the
        lowest proposal based on different factors.

        He pointed that both proposals are going to save the city about
        50% from what is currently being charged by our current
        provider.  We are upgrading to digital service which provides
        other features and the city is getting significant savings on
        whatever package we accept.

        Motion to approve.

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

    14. Award of contract number 99-020, to LOW BIDDER, G.T.
        Distributors, Austin, Texas, in the amount of $56,415.00, for
        the purchase of thirty light bars and accessories for the Police
        Department. These light bars will be installed on the new police
        sedans scheduled for delivery in March.

        Motion to approve.

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

    15. Approval to reject the sole bid for the Re-Roofing of the
        Ladrillera Community Center Building Project and re-bid the
        project with tentative award on February 15, 1999. Funding is
        available in the Capital Improvements Funds Re-Roofing of the
        Ladrillera.

        Motion to approve.

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

    16. Approval of amendment no. 1, an increase of $22,000.00 to the
        architectural/engineering contract with Design Group
        International, Laredo, Texas, for the Expansion of the Santo
        Ni¤o Health Center Project to add the expansion of the Santo
        Ni¤o Branch Library to include surveys, design and preparation
        of plans and specifications and cost estimates. The original
        engineering contract was $22,500.00.  This amendment brings the
        total engineering contract to $44,500.00. Funding is available
        in the General Fund Buildings.

        Motion to approve.

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

    17. Authorizing the City Manager to submit a noncompetitive grant to
        the Texas Telecommunications Infrastructure Board (TIF) in the
        amount of $91,000 to upgrade computer systems and Internet
        services for all Laredo Public Libraries.

        Motion to approve.

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

    18. Authorization to accept bids on the painting of the South Lyon
        Tank.

        Fernando Roman, Utilities Department, stated for the record that
        the bid award is for General Construction of San Antonio, Texas
        for $76,000.00 for the painting of the tank.

        Motion to approve.

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

        At this time an item under the Supplemental Agenda and under
        Communications were considered.


IX.  CITY MANAGER'S REPORT

    19. Status report on the Colonias Facility Plan with possible
        action. We have received the right of way from the Tex-Mex
        Railway for the location of the wastewater line.

        Fernando Roman, Utilities Director, reported that on December
        the consultants were working as they had intended and scheduled.
        There are no changes in the project other than whatever progress
        they have made during the month of December.  He concluded by
        saying that both environmental consultants and engineer
        consultants are working in reconstructing tables, etc., but the
        schedule has not changed.

    20. Status report on the Santa Isabel Water Well.

        Fernando Roman, Utilities Director, reported that they had
        proposed a location next to the well and TxDot had some
        concerns with that location because it is at the end of
        a long curve.  He first thought that it was not a concern
        because the visibility was good, but apparently it is a concern
        because as the vehicles are moving and if an accident might
        occur, vehicles might be carried to form a line on the shoulder
        so that would create a problem and they do not recommend that
        location anymore.

        They have another location which is being investigated right
        now.  The location is on the other side of the street of the
        road and a little bit to the north, just at the end of the
        Ashley Acres Subdivision.  It is a perfectly straight area and
        there are two entrances already and they are separated by about
        400 feet.  They can que approximately 10 trucks with trailers
        completely off of the asphalt.  He said that area would be a
        much safer place.

        Also, TxDot has asked that we consider a prototype facility such
        as the one done in El Paso.  They are waiting for that
        information, but as soon as they have received that information
        they will proceed with the project.

        Cm. Alvarado questioned if the new location would require
        additional monies and how soon is TxDot going to provide the
        information on the prototype facility?

        Mr. Roman answered that he thinks that we are still within our
        $20,000.  He added that in reference to the information from
        TxDot, he is expecting it today or tomorrow from El Paso.


X. COMMUNICATIONS

        a.  Mary Simmons, IRS Consultant VITA Program, spoke of a free
            tax assistance program to taxpayers who cannot afford
            professional services.  They are in the middle of a
            volunteer recruitment program and are recruiting anyone
            who is interested in helping do tax returns.

            She explained that they go through a full training program
            which starts January 9th, from 8-5 p.m., the training is
            free by IRS accountant employees, they will help people with
            basic tax returns, they will help people with non-english
            speaking abilities, low income, and the elderly.  They will
            offer free electronic filing and will be stationed at the
            Public Library beginning the first Saturday in February on
            through the Saturday before April 15th.

            She added that they won't guarantee anything, but if
            everything works right they can assist people to get back
            their tax refunds in one week.

            They need about 60 volunteers but only have 35.  The
            training is for two Saturdays, January 9th and 16th from
            8-5 p.m., plus they have a free course book that they will
            provide.  They intend to certify people after they have
            learned to prepare these tax returns and will have tax
            assistance at the library from 9-3 every Saturday, in Mercy
            Hospital tax assistance Monday, Wednesday, and Friday from
            7-9 p.m., at the Santo Nino Branch Library, 2200 Zacatecas
            on Mondays from 3-5 p.m.  She concluded by saying that for
            further information they can call 726-2347.

        b.  Cm. Bruni said that in reading the Morning Times on the
            loudness and the criminal acts happening during the New
            Year's Eve Celebration, he would like to see that in the
            next meeting, that staff come up with an ordinance whereby
            we can have more strict ordinances on fireworks coming into
            the city.

            He also spoke on the lawless criminal acts that were taking
            place in our corporate city limits of people discharging
            firearms.  He suggested that maybe they can impose a ban on
            the sale of the ammunition for at least a week prior to New
            Years because there were thousands of rounds fired during
            the celebration.  He added that many of the rounds went
            through residences and that we are not even safe in our own
            homes anymore.  Since there is going to be such a huge
            celebration in the Year 2000 he thinks that we should start
            now and try to get something in the books that would really
            tighten the control of fireworks and on the criminal acts of
            firing firearms within our corporate city limits.

            Mayor Flores said this is an excellent idea and suggested
            that the issue take some study as to what other cities have
            done.  She added that this is an idea that we need to look
            at and certainly thinks they need to come up with some
            recommendations.

            Cm. Valdez expressed that what concerns him the most is the
            fact that the Police Department was only able to make one
            arrest because they actually witnessed the discharging of
            the firearms in one occasion.  There were several reports
            that came in, but nothing could be done because they didn't
            get to witness those.  He thinks that they need to put some
            teeth into the ordinance, do some research, and see what can
            be done to make sure these things don't happen again.  He
            added that at least people doing these acts suffer some
            severe consequences such as losing their license for a year,
            etc.  He concluded by saying that there was a fatality in
            Nuevo Laredo and that someone in Laredo got hurt during this
            year's celebration, so this is a serious problem.

            Cm. Bruni stated that fireworks are a lot of fun but we have
            to abide by our ordinances and maybe even looking at the
            possibility, if legally, to have some checkpoints on the
            highways coming in to the city such that if we see fireworks
            that are not allowed inside the city limits that they not be
            allowed to come in the city limits.  He wants feedback from
            staff and other Councilmembers on this issue.

            City Manager Pena stated that certainly more enforcement is
            something we can do and must do.  He added that we need to
            start an educational program this summer before the 4th of
            July. He suggested that it be started with the July 4th
            weekend so that people are aware that we are going to
            confiscate fire crackers/fireworks.

            He pointed that we need to increase our enforcement efforts
            by an educational program.  Also, other things that cities
            are doing are organized fireworks displays block parties
            where in essence they organize fireworks displays on a small
            scale, but with the city's support and on an organized safer
            manner.  They can explore the educational program before the
            end of the year, they will prepare some kind of enforcement
            program to see how council feels about that, and get council
            a report on how much was confiscated during the last season.


XI. CITY COUNCIL PRESENTATION AND DISCUSSION

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

         A. Request by Mayor Elizabeth G. Flores

            1. Confirmation of appointee Ms. Anne Bearden to the Tree
               Board USA.

               Motion confirming of appointee Ms. Anne Bearden to the
               Tree Board USA.

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

            2. Recognition of the Health Department's Vital Records
               Office on their Five Star Vital Registration and
               Excellence Award given by the Texas Department of Health,
               Bureau of Vital Statistics.

               Mayor Flores informed that the Laredo Registrar of Vital
               Records Office is part of the City of Laredo Health
               Department.  It is one of 33 local registrar offices
               selected from approximately 600 offices statewide to
               receive this very prestigious award.  The Laredo
               Registrar of Vital Records Office is one of eight local
               offices that is ever repeated as winners for two
               consecutive years.

               During the course 1998, the local registrar office
               registered over 5,400 births, 850 death and issued over
               15,000 birth certificates and 4,500 death certificates.

               The Vital Records Office Staff received the award and
               recognition from Mayor Flores and Council's
               congratulations.

               Jerry A. Robinson    Health Department Director and
                                    Registrar of Vital Records.
               Yael Gomez           Deputy Registrar of Vital Records
               Elizabeth Flores     Vital Records Clerk
               Alejandra Ramirez    Vital Records Clerk
               Rosa Villalobos      Vital Records Clerk
 
            3. Approval for publication of the final draft (12-30-98) of
               the City of Laredo Protocol Handbook. (Cm. Louis H. Bruni
               and John C. Galo)

               Cm. Galo said that he spoke to the Senator and she said
               she wants to make it subject to text revisions and
               corrections that will be done after this approval.

               Mayor Flores explained that they have a revised list of
               technical corrections.  She would like the document be
               approved first and then adopt the protocol handbook with
               the idea that there maybe some technical changes or
               revisions as they go along.

               Motion to adopt subject to text revisions and corrections
               that will be done after.

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

               Mayor Flores said there is one physical change and quoted
               the following for the public to understand.

               "The Protocol Committee has been meeting and we've had
               several meetings with Dr. Zaffirini to come up with what
               we have here.  When we first started to meet we had two
               different ideas.  We had an idea that we needed a
               protocol handbook for the City of Laredo and we also had
               an idea that we needed a procedures handbook for the City
               of Laredo as far as changes in our agenda and things like
               that for meetings that we hold, but for your information
               because we all had the same problems.  We were thinking
               "procedures" in many instances, but we were talking about
               "protocol".  Protocol is defined as the customs,
               guidelines, and regulation related to formality,
               presidency, etiquette in official life, and in ceremonies
               involving governmental officials and their
               representatives."

               She added that the handbook was developed especially for
               the City of Laredo and it is to ease the burden of all
               who wonder about proper protocol.  Many attend functions
               and people are sort of scrambling around trying to find
               out who goes first, who gets introduced first or
               sometimes the guest speaker is introduced first and then
               there are people that speak longer than the guest
               speaker.  There are many things that happen and so they
               decided that in order to respect traditions and offer
               balance with common sense and popular preferences that
               they would at least initiate this protocol handbook.

               She pointed that in the City of Laredo although the
               protocol is different in other places and Washington is
               dictating differently, in the City of Laredo we are going
               to call "Honorable" those persons or those elected
               officials that we have traditionally called honorable and
               that includes the Councilmembers, the County Judge and
               others.  She added there are some things here that they
               have deviated from, the general acceptance in other
               cities.  The other physical change is that the order of
               council seating will change.  Right now council is
               seating according to the council district that they
               represent.  In this handbook they have agreed that we
               should seat in order of seniority with the Mayor Protemp
               always seating at the right hand of the Mayor so that in
               case she has to leave the room the Mayor can hand over
               the gavel to the Mayor Protemp, therefore it will be
               easier for the flow of the meeting.

               The senior members of the City Council whether previous
               elections, former elections, or continuous elections will
               be seating next and they will pick where they will seat.
               For instance Cm. Galo and Cm. Agredano were both elected
               at the same time and so then they would draw against who
               chooses what seat after that.

               She said they will try things differently, try them out,
               and they are willing to do these changes.

               In conclusion she said that included in the contract, Dr.
               Zaffirini is providing 24 copies, they will make copies
               available to large organizations or non-profits that may
               benefit from it and they will be sold.

         B. Request by Council member Alfredo Agredano

            1. Confirmation of appointee Mr. Manuel Jordan to the Tree
               Board USA.

               Motion confirming Mr. Manuel Jordan to the Tree Board
               USA.

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

         C. Request by Council member Louis H. Bruni

            1. Status report with possible action on the request from
               the City of Rio Bravo on the proposed property annexation
               in the City of Laredo's Extra Territorial Jurisdiction.
               (Co-sponsored by Cm. Joe A. Guerra and Cm. Mario G.
               Alvarado)

               Cm. Bruni said that the City of Rio Bravo has withdrawn
               its request to annex 1/2 north.  There was a lengthy
               meeting and staff had good ideas on what should be done
               in our next meeting with the City of Rio Bravo which will
               probably be held the first Monday of February.  He asked
               that Mr. Pena brief council on the motion made at that
               meeting.

               Mr. Pena stated that the motion was to consider favorably
               the annexation (for Rio Bravo to annex) the area east on
               Highway 83, south of their current boundary, southwest of
               their boundary as well as the elementary school (Salvador
               Garcia Middle) immediately north.  He added that the rest
               of the north would not be considered and the annexation
               would be conditioned on three things:

               (1) That we reach an interlocal agreement to provide fire
                   protection service for the schools within the
                   boundaries of Rio Bravo.
               (2) That we obtain the approval of the owners in the
                   areas just mentioned.  That they agree to be annexed.
               (3) That they show the city that they have the authority
                   to annex those areas because there were questions
                   raised by city staff regarding their authority to
                   annex.

               Mr. Pena concluded by saying that the three conditions
               will be presented at the next meeting in February.

               Cw. Moreno questioned if UISD will be asked also, since
               we are asking the landowners.

               Mr. Pena answered that they can ask UISD if they agreed
               also because they are landowners as well.

               Cm. Bruni said that since the Metro Government consists
               of UISD and LISD people that represent them, he asked
               that they join them in the next meeting and that they be
               advised of the committee's recommendation.

               Cm. Alvarado asked that when the Metro Government
               Committees are held, that we advise all of the different
               entities out there such as the county and school
               districts, of these meetings and that they send a copy of
               the agenda so they can elect whether or not they want to
               have representation at these meetings.

            2. Status report with possible action on the motion made
               February 2, 1998, to authorize the City Manager and the
               legal staff to write a letter to Continental Airlines
               expressing concern on the type of equipment in use to
               service the Laredo-Houston route and voicing our
               dissatisfaction with their rates but most of all the
               safety problems that are being experienced with their
               Embraer EMB-120 as stated on the (NTSB) National
               Transportation Safety Board Reporter.

               Cm. Bruni said that when he made this motion on February
               2, 1998 staff did generate a letter and it was sent to
               Continental except that it was not forwarded to his
               office and he did not know of any other Councilmember
               that had received a copy of such letter, so that is the
               reason he put this item again.  He added that he had some
               discussion a week ago with Mr. Flores who said he had
               generated a draft for all Councilmembers and for the
               Mayor to sign.

               He expressed that he is still concerned about this
               equipment and would really like to see that they bring
               Regional Jets to Laredo.  He thinks that by putting them
               on notice that we are not satisfied with the type of
               equipment, that maybe we can spur them to bring different
               types of planes to Laredo.

               Jose L. Flores, Airport Director, said they did send that
               letter in February and they are prepared to send another
               one.  He said there was no response on the first letter
               to date.

               Cm. Bruni asked Council that if it would be in order to
               finalize the draft letter with the Mayor's concurrence,
               that the Mayor and the rest of the council sign such
               letter that way they have been officially put on notice
               about our concern of the equipment and about the rate.

               Mayor Flores asked that they send the letter to her
               office and they will have it done plus get it distributed
               to council and see that it gets mailed out.

               Cw. Moreno asked that the letter include that it is the
               second request or second notification sent.

            3. Status report on a motion made October 27, 1997, on
               a proposed recreation center in District II in the
               immediate area of Spur 400, with possible action.

               John Vidaurri, Parks and Recreation Director, stated that
               there was an initial assessment conducted in that area.
               The D.D. Hachar Elementary School was actually
               recommended as the location for a recreation center based
               on the availability of land at that location.  There were
               some other areas off Spur 400 that were looked at by the
               Community Development staff.  There were some parcels of
               property that could potentially be used as a park site
               off of Clark and New York, but these are very small
               parcels and would not have the square footage to house a
               full blow recreation center.

               Cm. Bruni said his intent was that the children of
               District I and II enjoy a recreation center and that it
               be beneficial for both districts.  He said that by the
               way the district is set up in that area, with the
               railroad actually dividing the area, those are two groups
               of children that live there, and the recreation center at
               D.D. Hachar would be beneficial for both districts
               (District I and District II), but there is a completely
               different group that would be able to enjoy a recreation
               center on Spur 400 (the Heights area, east Laredo, the
               Milton area, and the Ryan area) they could all enjoy the
               other recreation center and the intent was not to do one,
               or another, his intent was to do the Hachar area
               recreation and then find funding for another recreation
               center in the area around Spur 400.

               Cw. Montalvo asked that Cm. Bruni wait until the budget
               hearings so he can put in the schedule for projects to be
               done.

               Mr. Viduarri said that the Spur 400 recreation center is
               on the city CIP project for the year 2002.  The reason
               for the initial analysis prioritizing the D.D. Hachar
               School site is because of the availability of land.  He
               explained that Spur 400 is located between Arkansas and
               Loop 20, at Clark and New York and they did find that the
               city owns three lots that can potentially be developed as
               a park site or for a possible a community center, but
               would not contained the square footage necessary.

               Cm. Bruni said that maybe they can look for donations
               from the large landowners in that area.  He said there
               are two or three different large landowners in that area.

               Mr. Pena wanted clarification on the Spur 400 issue.

               Cm. Bruni answered that what he would like to see is that
               council at least allow staff to talk to some of the
               landowners in reference to donating some land or maybe
               getting cost information and then during the budget
               hearings that the issue be discussed.

               Cm. Alvarado said that one of the things he would like to
               be able to discuss are precisely these type of matters at
               the budget workshops retreats because there is a 10-year
               master plan for the Parks Department, we also have the
               COPS Program, and there are several types of selection
               projects that are done throughout the city.  We need to
               be aware of being able to keep those time frames that are
               already in place especially with the CIP plan and the
               projections that they have for three and five years down
               the road.

               Cm. Bruni said he is aware of the 10-year plan, but that
               is a plan that can be flexible such as when they had to
               appropriate monies for the Lafayette Street relocation
               and the extension of Killam Blvd. they were also
               flexible so all he wants is to be flexible.

            4. Presentation by TXDOT on the possible upgrade to the
               intersection of Hwy 59 and Country Club Estate.

               Mr. Juan Villarreal, TxDot Area Engineer, stated that as
               far as that specific area is concerned they have a
               project scheduled for the Year 2000.  It will actually
               widen five lanes all the way a mile pass the loop.  This
               will include reconstructing the bridge at Chacon Creek
               and it will also include a bridge separator at the loop
               on 59.  So for the Year 2000 all that area is going to be
               reconstructed.

               Cm. Bruni asked if there is anything that can be done in
               the interim, maybe just put signs up or make a temporary
               turning lane or widen the area a little.

               Mr. Villarreal said he will look at the area, but that
               probably the only thing that could be done now is
               re-stripping and probably eliminating the shoulders.

         D. Request by Council member John C. Galo

            1. Discussion and possible action concerning the replacement
               of the sidewalk at the Market Street Tennis Courts.

               Cm. Galo said that half of the section has been lifted
               and were are ready for replacement, he does not know who
               made the decision, but the other half looks just as bad
               and wants to know if it can all be replaced at the same
               time.

               Mr. Pena said he will look into it.

               Mr. Vidaurri said the Projects Committee looked at this
               issue about two weeks ago and the consensus was to go
               ahead and for the minimal amount necessary, repair the
               remainder of the block and go ahead and do the balance of
               the sidewalk that needs to be done.

            2. Discussion and possible action concerning the install-
               ation of a protected turn signal at the intersection of
               Market St. and Meadow Ave.

               Mr. Pena said they can conduct a study and get a report
               for next meeting.

            3. Discussion and possible action concerning the
               installation of a control device at all international
               bridges to stop vehicles from crossing when in pursuit by
               a law enforcement agency.

               Cm. Galo said these control devices are installed at
               Customs for people coming into the country for people
               not to try to run customs.  He added it seems like a
               simple procedure to have those devices at the collection
               booth and maybe radio ahead that cars are going to run
               the bridge.

               Rafael Garcia, Bridge Manager, said that Customs are the
               ones that in fact have those sticks to blow out tires,
               etc.  One of his concerns here is certainly the safety
               factors because you are addressing something on the
               Customs side the speed bumps for the "speed" and vehicles
               that are not travelling fast.

               What happens on the contrary though is there is a vehicle
               running very fast and on pursuit, first someone has to
               decide to throw the stick, then what happens after you
               blow out the tires and loose control of the vehicle.  He
               said there is vehicular traffic, people, plus collectors
               on the opposite side of the vehicle that just lost
               control.  He spoke to the Bridge Manager on the border
               this morning and all the alternatives are not really very
               good.  He added that Brownsville has two lawsuits with
               regard to stopping cars on a high speed and malfunction
               of these devices and so there are concerns to this
               effect.

               Cm. Galo expressed that he understands, that he just
               wanted to know if these concerns had been addressed
               before.

               Mr. Garcia said that maybe one point that might be
               considered later on is either a speed bump or speed humps
               to slow down the traffic, but certainly in this case when
               in pursuit or chase it will not make any difference what
               you put up there, they are not going to stop.

         E.  Request by Council member Cecilia May Moreno

            1. Confirmation of my appointment Ms. Ina Poole to the Tree
               Board USA.

               Motion confirming Ms. Ina Poole to the Tree Board USA.

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

            2. Confirmation of my appointment Ms. Yolanda Martinez to
               the Cemetery Committee.

               Motion confirming Ms. Yolanda Martinez to the Cemetery
               Committee.

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

         F.  Request by Council member Eliseo Valdez Jr.

            1. Status report from city staff on the outcome of the
               refunding of the 1998 General Obligation Bond Series.

               Conrado Hein, Finance Director, reported that on the
               refunding issue that took place in September they were
               able to gain about $1 million plus in savings.  Simply
               what they did is took $40 million of the debt and
               refinanced it at a cheaper rate which translated to a
               million dollars in savings to the city.  What that will
               do for us is that we are going to realize our savings in
               the Year 2000, 2001, and 2002 which is where the bulk of
               the savings is.  The bulk of that is going to our tax
               supported issues.

               He thinks that the water utility will be in about
               $400,000 for three years and basically what that tells us
               is that in the Utilities Department they will have
               $400,000 of less debt service for those three years that
               they can use in operations. They will also have another
               $200,000+ on the sewer side. Tax supported side means
               that they will have those savings which will give us a
               reduction in the debt service that is supported by taxes.
               Either that or they can move some dollars from issues
               that are tax supported or a combination tax supported and
               revenues where they can give some further relief to some
               of the functions where they issue combination tax and
               revenue debt.

               He concluded by saying that the bulk of savings will
               start manifesting themselves on the Year 2000.  The
               savings this year will be very minimal.

            2. Recommendation from city staff on the existing problem
               with ingress and egress at the Broadacre Apartments due
               to the traffic on McPherson Rd.

               Roberto Murillo, Traffic Engineer, reported that the
               problem in that location is that there is only one lane
               road in each direction and when that road is widen they
               should get a lot of relief from that.  On the issue of
               pedestrians walking across the street he knows there is a
               concern about that and they have said that they should
               use the traffic light which would be the safest crossing
               rather than making a crosswalk in front of the place
               which was the recommendation at that time.

               In reference to signage, he does not know what type of
               signage can be used for helping them get out of there.
               There is quite a bit of traffic and they expect more
               traffic with the opening of Mercy Hospital, but the only
               relief he sees is when the widening of that road takes
               place.

               Cm. Valdez wanted to know when can they expect the
               initiation of the widening of the road or the study for
               the widening of the road.

               Mr. Pena answered that on the widening of the road, they
               have selected an engineer.

               Rogelio Rivera, Engineer Director, said what they are
               hoping to bring to council, possibly at the next meeting
               is a recommendation for the Killam, McPherson, and
               Jacaman projects plus some other Community Development
               Projects for selection of the engineers.  The widening
               will be from Calton to Bustamante and it will go on the
               first phase.

            3. Confirmation of my appointment of Ms. Elizabeth Gil to
               the Tree Board USA.

               Motion appointing Ms. Elizabeth Gil to the Tree Board
               USA.

               Moved :  Cm. Agredano
               Second:  Cm. Galo
               For:  7                 Against:  0         Abstain:  0
               (Mayor Flores stepped out at this time and Mayor Protemp
               Bruni was chairing the meeting.)

            4. Confirmation of my appointment of Mr. David Garza to the
               Cemetery Committee.

               Motion confirming Mr. David Garza to the Cemetery
               Committee.

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

         G. Request by Council member Joe A. Guerra

            1. Confirmation of my appointment of Ms. Marga Lopez Baker
               to the Tree Board.

               Motion appointing Ms. Marga Lopez Baker to the Tree
               Board.

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

            2. Confirmation of my appointment of Mr. Alejandro Arreguin
               to the Cemetery Board.

               Motion confirming Mr. Alejandro Arreguin to the Cemetery
               Board.

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

         H. Request by Council member Mario G. Alvarado

            1. Confirmation of my appointment of Mr. Jon Radenbaugh to
               the Tree Board USA.

               Motion confirming Mr. John Radenbaugh to the Tree Board
               USA.

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

            2. Confirmation of my appointment of Mr. John Romani to the
               Cemetery Committee.

               Motion appointing Mr. John Romani to the Cemetery
               Committee.

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

            3. Discussion on request by the Camino Colombia principles
               to change the traffic circulation pattern on Dolores
               Blvd. from a two lane two way roadway to a two lane one
               way roadway with possible action.

               Mr. C.Y. Benasvides, III, President of Camino Colombia,
               Inc. presented copies of an exhibit and explained that
               the exhibit is the existing Dolores Blvd., what exists
               and was constructed by the Scibienski Family and the
               Dolores Development.  It is currently a piece of concrete
               pavement and they are looking to turn that into a two
               lane one-way southbound road.

               He added he has visited with city staff (Traffic, Bridge
               and Legal Staff) and there is no issue on this.  He
               concluded by saying that currently the city controls 500
               feet that is in the city limits.

               Juan Villarreal, TxDot Area Engineer, stated that as far
               as this Dolores Blvd. is concerned, it is part of the
               Camino Toll Road Project.  As far as design of the
               project itself, they are working very close with their
               consultant and everything presented by them so far has
               been towards their standards, specifications, and has
               received their approval.  He said his office concurs with
               this change.

               Mr. Benavides explained that what already existed, will
               stay exactly the way it is, then they are going to build
               Camino Colombia (the main lanes) just like 35 and then
               they will build another frontage road so you would have
               an eastbound frontage road one-way two lanes and then
               when they connect our southbound lanes to this particular
               piece of pavement that is now constructed there will be
               two lanes one-way southbound towards the bridge.

               Mr. Pena stated this requires an ordinance, requires
               public notice, TxDot doesn't see a problem with it, they
               only need to do some procedural steps to get this done.
               He asked Mr. Benavides if there is a timeline?

               Mr. Benavides answered that there is a timeline, they
               need to have this preferably before his trip to New York
               to finalize this deal and this is one of the vital issues
               that has come up.  They understood from legal that there
               was no problems at all because it is just 500 feet and
               all the different landowners involved are in the deal and
               have donated property.

               Mayor Flores clarified that if action taken would be only
               for the 500 feet.

               Mr. Benavides answered, that is correct.

               Cm. Galo quoted, "and only if and when, when they do
               finally connect and they need it."

               Keith Selman, Planning Director, said that there is one
               issue that he sees here, what they are doing is ratifying
               an activity within the public right-of-way and that is
               something to consider very seriously.

               Motion to approve a preliminary approval for Mr.
               Benavides' use and then go through the other formal
               things that may need to be done, also to direct staff to
               prepare a letter indicating that the city has meet with
               TxDot and both (TxDot and the City) are in accordance
               with this change and that we would undertake the
               necessary process to effectuate upon completion of this
               project.

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

         I. Request by Council member Consuelo "Chelo" Montalvo

            1. Confirmation of my appointment of Mr. J.C. Twiss to the
               Cemetery Board.

               Motion appointing Mr. J.C. Twiss to the Cemetery Board.

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

XII. PUBLIC HEARINGS

    22.  Public hearing amending the City of Laredo FY 1998-1999 Annual
         Budget in the amount of $5,000 for a grant from the National
         Library of Medicine for professional development and
         promotional printing and supplies, providing for effective
         date.

                    INTRODUCTION OF AN ORDINANCE
      Ordinance amending the City of Laredo FY 1998-1999 Annual
      Budget in the amount of $5,000 for a grant from the National
      Library of Medicine for professional development and
      promotional printing and supplies, providing for effective
      date.
 
         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce.

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

         Ordinance Introduction: City Council





99-R-01(S)                SUPPLEMENTAL AGENDA          JANUARY 4, 1999



  VIII.  MOTIONS

         Approval of a contract with RMI Consultants, to do a
         preliminary audit of Central Power and Light's franchise
         fee payments to the City of Laredo in an amount not to exceed
         $10,000.

         Ms. Magda Lopez Baker, Area Business Manager for Central Power
         and Light, was before council to make the presentation.  She
         explained what a franchise is and said that CP&L operates with
         a franchise ordinance passed in each of its cities which grants
         them the use of streets, avenues, alleys, and public places for
         distributing/suppling and conveying/selling electricity.
         In accordance with these ordinances CP&L pays each of the
         cities that it serves the gross receipts tax equals the 4% of
         its gross receipts from the sale of electricity for customers
         within the corporate city limits.  As a result of this
         agreement CP&L neither loses money nor makes money it is
         basically just to pass through from your constituents and then
         relay back to the city.  If CP&L is required to pay more to the
         city it will be required to collect from its customers by
         increasing rates.  The franchise fees audits are now unusual,
         CP&L performs regular internal audits periodically on its own
         and partners with city staff if desired of the franchise fee it
         collects from customers and pays to the city.

         She said they will be happy to work with the city to confirm
         the accuracy of their payments and if the city decides to do
         that through the consulting firm that is their prerogative.

         Cm. Galo wanted to know why we are requiring this audit.

         Mr. Dovalina explained that a year ago, the city had asked in a
         formal letter some financial documents from CP&L.  They
         provided the city with the financial documents and within those
         financial documents they have the revenue codes assigned to the
         particular cities (by areas) and within those forms they show
         how the money is paid and obviously the 4% that they are taking
         is not on the total money produced out of the areas that are
         there and that is where some of the disagreement is.  It is a
         continuous contract, that has been altered since 1950 but it is
         a continuous contract.  The contact has basically never expired
         and doesn't have a statute of limitations because of the fact
         that it never expired.  The definition of gross receipts has
         changed between the times that the contracts have been extended
         each time.  Those are questions of issue and it is basically
         good business practice to audit all the franchises that we have
         not just CP&L.  The commission is in the process of
         recommending that to council, that in the future there be a
         regular audit of all franchises just to make sure that what is
         being reported to the city is accurate.  The contract has not
         been extended and is now set to expire in the year 2005.

         Cm. Bruni stated he is not in favor of contracts that are in
         perpetuity and he thinks that we need to evaluate that contract
         so that it will be more favorable to the City of Laredo and
         that we get better equipment and to at least get a telephone
         number where the customers and constituents can call when they
         have a complaint or a power outage.  He said there was a power
         outage in North Laredo and West Laredo and parts of his area
         and when they called the toll free 800 number they did not even
         know that the lights were out and said to call back in Monday
         which is not acceptable to the City of Laredo.

         Ms. Baker stated that they have direct contacts and each one
         checks their phone mail, there were no messages on their phone
         mail, they all have pagers, mobile phones, and the media didn't
         contact them to the increase.  They do encourage customers to
         call their 1-800-274-2611 number because that is the only way
         they will know if there is an outage.  There is an automated
         process and to where TSR will answer questions or will take the
         information.  She said Cm. Bruni is right, there were multiple
         outages, there were three to four broken poles, and three to
         four accidents on New Year's Eve.  They did restore power as
         quickly as they could and have had some other outages in North
         Laredo.  She concluded by saying they get customers back on as
         fast as they can.

         Cm. Galo agreed that we should be auditing all our contracts.

         Motion to approve.

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


XIII. ADJOURNMENT

         Motion to adjourn.           Adjournment time:  7:38 p.m.

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

        I hereby certify that the above minutes contained in pages 01
        to 32 are true, complete, and correct proceedings of the City
        Council Meeting held on the 4th day of January, 1999.  A
        certified copy is on file at the City Secretary's Office.




                                          _________________________
                                            Gustavo Guevara, Jr.
                                            City Secretary

                        CITY OF LAREDO
                 SPECIAL CITY COUNCIL MEETING

                    CITY COUNCIL CHAMBERS
                         1110 HOUSTON


M99-S-01                M I N U T E S        JANUARY 12, 1999

   I.  CALL TO ORDER

       With a quorum present Mayor Pro Temp Louis Bruni
       called the meeting to order.

  II.  PLEDGE OF ALLEGIANCE

       Mayor Pro Tem Bruni led in the Pledge of Allegiance.

 III.  ROLL CALL
       IN ATTENDANCE:
       Louis H. Bruni,           Councilmember, District II
       John C. Galo,                    "     , District III
       Eliseo Valdez,                   "     , District V
       Joe A. Guerra,                   "     , District VI
       Mario Alvarado,                  "     , District VII
       Consuelo Montalvo,               "     , District VIII
       Gustavo Guevara, Jr.,     City Secretary
       Florencio Pena, III,      City Manager
       Jaime L. Flores,          City Attorney

       Motion to excuse Mayor Elizabeth G. Flores,
       Cw. Cecilia May Moreno, and Cm. Alfredo Agredano.

       Moved :  Cm. Alvarado
       Second:  Cm. Guerra
       For:  4                Against:  0         Abstain: 0
       (Cm. Galo was not present at this time.)
       (Mayor Protem Bruni was chairing the meeting and not
        voting.)


  IV.  Request for Executive Session pursuant to Texas
       Government Code Section 551.072 to deliberate the
       purchase, exchange, lease, or value of real property
       because a deliberation in open meeting would have a
       detrimental effect on the position of the City of
       Laredo in negotiation with third persons, and return
       to open session for possible action.

       Motion to go into excutive session.

       Moved : Cm. Guerra
       Second: Cw. Montalvo
       For:  4                Abstain:  0         Abstain:  0

       Note:  Cm. Galo joined the meeting at 12:08.

       After executive session Mayor Pro Temp Bruni announced
       that no formal action was taken in executive session.

       Motion to authorize the City Manager to purchase water
       rights upon receiving final confirmation to clear
       title to such water rights, without prior approval by
       the Texas Natural Resource Conservation Commission of
       the conversion of such rights to municipal water
       rights.

       Specifically, the water rights to be purchased are
       516.475 acre-feet of Class-B water rights.

       Moved :  Cm. Galo
       Second:  Cm. Guerra
       For:  5                Against:  0         Abstain: 0


   V.  ADJOURNMENT

       Motion to adjourn.     Adjournment time:  12:35 p.m.

       Moved :  Cm. Guerra
       Second:  Cw. Montalvo
       For:  5                Against:  0         Abstain: 0


I hereby certify that the above minutes contained in pages 01
to 02 are true, complete, and correct proceedings of the
Special City Council Meeting held on the 12th day of January,
1999.  A certified copy is on file at the City Secretary's
Office.

                                        _____________________
                                        Gustavo Guevara, Jr.
                                          City Secretary



                             CITY OF LAREDO
                         CITY COUNCIL WORKSHOP
                 LAREDO TRANSIT CENTER CONFERENCE ROOM
                          1301 FARRAGUT STREET
                             3RD FLOOR WEST
                               11:00 A.M.

     M99-W-01                 M I N U T E S       January 15, 1999


   I.  With a quorum present Mayor Elizabeth G. Flores called the
       meeting to order.

  II.  Mayor Elizabeth G. Flores led in the Pledge of Allegiance.

 III.  Roll Call

       CITY COUNCIL MEMBERS IN ATTENDANCE:
       Elizabeth G. Flores,             Mayor
       Alfredo Agredano,                Councilmember, District I
       John C. Galo,                    Councilmember, District III
       Joe A. Guerra,                   Councilmember, District VI
       Mario Alvarado,                  Councilmember, District VII
       Consuelo "Chelo" Montalvo,       Councilmember, District VIII
       Gustavo Guevara, Jr.,            City Secretary
       Florencio Pena, III,             City Manager
       Jaime L. Flores,                 City Attorney

       ABSENCES:
       Motion to excuse Cm. Bruni, Cw. Moreno and Cm. Valdez.

       Moved :  Cm. Galo
       Second:  Cm. Agredano
       For:  5                         Against:  0         Abstain:  0

       Note:  Cm. Guerra arrived at 11:35 P.M.

       OTHERS ATTENDING:
       Adan Castillo, Bus Driver
       Jose Ortiz, El Metro Union
       Bill Cain, General Chairperson of the Local UTU #1670
       Bobby Gutierrez
       Robert Garza, El Metro
       Joe Aranda, El Metro
       Dan Migura, Administrative Services Director
       Joe Guerra, Office Manager for El Metro
       Viola Sanchez, Public Information Officer for El Metro
       Judy Baber, Internal Auditor with the City of Laredo
       Gilbert Segovia, El Metro General Manager
       John Farrell, ATE/Ryder
       Richard Clair, ATE/Ryder Sr. Vice President & General Manager
       Keith Selman, City Planner
       Laura Ridder, Laredo Morning Times

       1.  To meet jointly with the Transit Committee of the City of
           Laredo to review presentation by Ryder/ATE, Inc. in the city
           requiring its proposal to provide transit management
           services for the Municipal Transit System, with possible
           action.

           Cm. Alvarado informed the Council that the members of the El
           Metro Transportation Ad-Hoc Committee are reconvening today
           as such.  On a previous meeting, Ryder/ATE made its
           presentation, as well as City Staff, on their transit
           management proposal.  Since relevant information was
           required from both proposals, it was determined to give 10
           minutes to each party for their presentation.

           Florencio Pena, City Manager, relayed that ATE needed to
           adjust its proposal by reducing one of the positions and
           that City Staff needed to address questions pertaining to
           workers' compensation as well as other matters.

           ATE/Ryder Presentation:

           Richard Clair, from ATE/Ryder, provided the minutes from the
           last meeting.  He added that the minutes captured valuable
           points on ATE's performance besides other issues pertaining
           to El Metro's future. A revised proposal will be submitted
           to the City in writing.

           He talked about issues that need solutions if the existing
           management company gets dissolved, and amplified the points
           supporting ATE/Ryder vs. the proposed replacement non-profit
           corporation.

           a) Notifications to employees and notices to different
              taxing entities and jurisdictions 60 days prior from the
              dissolution date.
           b) Unresolved issues pertaining to the legal status of the
              proposed non-profit replacement corporation.
           c) The change of employer requires real occasion notice act
              termination of employees.
           d) Workers' Compensation issues.
           e) Termination of the 401K plan since it is specifically for
              private companies or for profit institutions.
           f) Issues pertaining to the labor contract.
           g) Employees currently on Workers' Compensation or other
              long-term disability. (Eleven employees will be affected
              during the time of transition; therefore they will not be
              covered by the health insurance unless the city waives
              certain requirements.

           Mr. Clair addressed the modification to ATE's proposal by
           stating that the management job can be done with two people.
           His recommendation is to leave the current two employees in
           the management team. The duties of the third position would
           be absorbed by other TMCL employees.

           Cm. Montalvo stated that about two years ago there were many
           complaints on the management of the Transit System. At that
           time the issues were discussed with Mr. Farrell.  Since City
           Council didn't see any changes being made, an audit was made
           on April 1997. She feels that ATE didn't care nor listened
           to the problems taking place at the Transit Center.

           Mr. Clair responded stating that the issues brought up in
           the April 1997 audit have been resolved or addressed either
           through the law department or Mr. Pena's department.
           Regarding the cash handling audit, there was nothing
           material suggesting holes in the cash operations, or if
           there was, it was only temporarily and there were reasons
           for that.

           Cw. Montalvo stressed  -"It is not our responsibility to let
           you know what's going on out here in Laredo. It is your
           responsibility to communicate with your management employees
           to find out what's going on."

           Mr. Clair replied that the 18 or 20 months, in which the
           contract was under Mr. Smith's responsibility, are not their
           proudest moments.  He emphasized that ATE's proposal has a
           mechanism which will not only resolve those types of
           concerns but will prevent them from recurring.

           Cm. Alvarado challenged Mr. Clair's reply.  He stated that
           when the management concerns were addressed with ATE, Mr.
           Brown (ATE) offered to have quarterly meetings. But after
           the first meeting there were not additional meetings.  Cm.
           Alvarado expressed that he's displeased because the
           quarterly meetings did not take place; and that it had to be
           because of the City's persistence and assistance to be able
           to put in place different policies.  Cm. Alvarado added that
           ATE's management failed to come as quickly as Mr. Clair is
           trying to imply.  He asked Mr. Clair if we were going to get
           a discount for those 18-20 months. Also, on the last meeting
           it was requested from Mr. Clair to issue some type of
           discount in the City's contract because the third position,
           as outlined in the contract, has not been filled.

           Mayor Flores expressed that from what she has heard so far,
           Mr. Clair needs to re-establish his credibility, and his
           admittance of the problems in his company for the 18 or 20
           months has contributed to the fall.  For the sake of the
           presentation, she encouraged Mr. Clair to focus, for five
           minutes, on the changes made to correct the fall out.

           Note: Cm. Guerra arrived at 11:32 A.M.

           Mr. Clair replied -"Some of that fix is to be history in the
           making."  He added that when he met with the Ad-Hoc
           Committee in December 1998, he suggested that he was getting
           mixed signals at the policy level.  So, he proposed a
           defined way to receive input from the City through the
           proposed Transit Committee.  He also proposed having a
           workshop to establish the management structure, the
           reporting structure, a policy board, a monthly reporting
           format that goes beyond regular issues, and on top of this,
           have quarterly formal reviews.  Afterwards, he outlined the
           benefits of ATE's technical support, the service development
           plan, service extension, and safety issues. Finally he added
           that a location operations review, in which the regional
           managers review the policies that should be on place, has
           been initiated.

           City's Proposal Presentation:

           Mr. Pena reported that the City Council has a very difficult
           question on whether to terminate or continue a 23 year
           relationship with Ryder ATE.  He explained that during the
           70's, cities were faced with the challenge of operating
           their own transit systems, consequently the City of Laredo
           hired a private firm to manage its transit system.  However,
           many of the management concerns from 1976 do not exist
           today. The City has gained experience in managing a transit
           system, and can do so if the decision is to no longer
           utilize a consultant.

           On January 20, 1997, an internal audit of the transit system
           was conducted as a result of concerns addressed by various
           concilmembers. Following are some of those concerns that
           serve as an example of the mismanagement and poor judgement
           that existed.

           a) The transit system did not reconcile the number of buses
              in operation for a given transit day to the number of
              buses prepared for that same transit day.

           b) Concerns with purchasing policies and procedures.

              - The transit management system secured supplies in
                excess of $10,000 without securing an annual vendor
                supply contract from second vendors.  The City of
                Laredo's purchasing policies and procedures were
                violated. After discussion with the vendor, he
                indicated that purchases were intentionally spread over
                a number of invoices in order to avoid our purchasing
                policies and procedures.

              - Over a four year period, the total amount of purchases
                were over $386,000.

                Period      $ Amount
                1992-1993   $ 46,790
                1993-1994   $130,000
                1994-1995   $138,000
                1995-1996   $ 80,000

              - The Transit System should have named, in all
                invitations for bids, the City of Laredo in order to
                maximize the opportunities for competitive bids
                involving the purchases.

              - Regarding maintenance parts and supplies the fleet
                management system should have been used to identify
                items or vendors whose purchase volumes were in use of
                formal bids.

           c) Although the contract provides travel expenses for
              management people, some expenses were disallowed by the
              City.

           d) Over a six year period $224,452 were spent in legal
              expenditures.  Also, the 1996 contract period provided
              that any outside counsel will require City's approval,
              and there isn't any record that it was obtained.

              (These are the highlights from the January 1997 audit).



           Mr. Clair responded by defending ATE's position.  He stated
           that all discrepancies found on the internal audit have been
           dealt with.

           Mr. Pena continued with his presentation.  In order to
           illustrate why he has lost confidence in ATE, he continued
           highlighting other concerns besides the 1997 audit.

           a) A payroll audit, conducted on September 28, 1998, raised
              questions regarding the use of compensatory time.  One
              exempt employee was getting comp-time while other exempt
              employees  were not.  In another case, a TMCL exempt
              employee was transferred with over $18,000 of comp-time
              accrued.

           b) A pass channeling survey of the GAPI was conducted on
              December 14, 1998.  Numerous discrepancies were found
              like a non-working video camera, systems not being
              reconciled on a daily basis.

           c) Finally on January 12, 1999 in a random cash audit it was
              discovered that they were exceeding the petty cash
              policy, and in addition they were spending money in
              lunches and dinners for the ATE management employees.
              This is not appropriate.

           Mayor Flores expressed her interest in learning more on how
           we can manage the transit system in-house. She stated that
           this Council is interested in making the right decision on
           what is the best for the Transit System Employees and what
           is best for the traveling public.  Also, she believes that
           the employees have a lot to gain from the 401K and wants
           this issue to be addressed.

           Mr. Pena replied that the 401K was implemented by his
           insistence when he came on as a City Manager. There isn't a
           higher priority than to ensure that the employees of El
           Metro have comparable benefits as city employees, since they
           currently don't.  It appears there is a good possibility,
           after El Metro becomes a non-profitable part of the City,
           that the employees may be able to join in the City's
           insurance program.  Although this may provide an increased
           benefit to the employees, it will be subject to negotiation
           of the contract.

           Mayor Flores reiterated that she wants to know what can
           happen instead of what may happen. She wants to be sure that
           Council knows, going in, what the employees are going to
           gain, keep, make better.  Whatever it is, she wants to be
           positive that this Council knows that for sure.

           Mr. Pena replied that in terms of the union contract it will
           stay exactly as it is.  In terms of the non-union employees,
           some research has been made on the 401K program, but it may
           require additional research.  In terms of the salaries of
           non-union, they will remain the same.  Other fringe benefits
           such as health insurance will remain the same, possibly
           better.  At the present time, we don't foresee any changes
           in benefits or salaries.

           Dan Migura, Administrative Services Director, explained that
           the trustee of the 401K plan was contacted in order to
           determine how to handle it. The trustee informed there were
           three options.

           Option 1- Stop the plan and roll it over to an IRA.
           Option 2- Rename the Plan with the new entity
           Option 3- Merge it into another 401K.

           In conclusion, there will not be any negative consequences
           because all these things can be established.

           Mr. Clair reiterated that 401K plans are for private
           companies. The public non-private or the private non-profit
           is ineligible for 401K.

           Mr. Pena informed that as of April 1, 1999 all TMCL's
           positions will not be impacted.  There are no plans to
           degrade or eliminate any position.  All TMCL employees will
           become part of El Metro, Inc.

           There was discussion regarding the presentations and whether
           ATE/Ryder would be able to re-establish their credibility.

           Cm. Galo stated for the record that the reason we are here,
           this late hour into the negotiations, is because Mr. Pena
           failed to do his job.  When Council gave him a directive to
           go out and seek RFP's, he went behind Council's back and
           tried to set up this City's corporation instead of going out
           for bids.  Then Cm. Galo commended the Ad-hoc Committee for
           their job, but wished there would have been other bidders.
           He also added that there isn't a great confidence level with
           the City's procedures since nobody informed him about the
           City Manager seeking information on the non-profit
           corporation.

           Mr. Pena replied there are two issues here:  1) managing the
           transit system and 2) being able to do it in-house without
           an outside consultant.  He added that when the motion was
           made he was influenced by the Council Committee's interest
           on the possibility of doing it in-house. So the question was
           whether it was possible and feasible to do it in-house;
           therefore it was the first decision he had to make.

           Cm. Galo voiced his personal opinion.  He would like to
           extend ATE's contract for 3 or 6 months because he believes
           that the City's proposal doesn't have everything packaged
           together.

           Jaime Flores, City Attorney, stated that the collective
           bargaining agreement expires on March 20, 1999, which is
           basically around the corner.  Logistically, it represents a
           problem because regardless of which proposal Council
           considers, it is late. His personal point of view is to
           provide a 90 day extension to ATE. In this way ATE will have
           an opportunity to demonstrate its improvements to Council,
           and Cm. Galo's request to extend ATE's contract would be
           served.

           Mr. Pena outlined the benefits that the City will have if it
           manages the transit system.  There will be more direct
           control and more direct lines of communication, besides
           saving $100,000.

           Cm. Galo expressed that City Council's objective should not
           be direct control but what's best for El Metro and what's
           best for the Union. Also there is a need for better
           management performance.

           Cm. Alvarado stated that performance is the reason why we
           want to do something different.  He added that his argument,
           all along, is that we are paying a managing firm with
           expertise and knowledge to do the job, and we are not
           getting good performance from them.

           Mayor Flores added that since most concerns have been aired
           out, a decision needs to be made on which is the best
           proposal.  She manifested that Mr. Clair didn't convince her
           with his proposal. On the other hand, thinks that Mr. Pena
           needs to polish his proposal. Furthermore, she suggested to
           him to get someone from his staff to act as the Lead Manager
           that will make the presentation to Council on behalf of the
           City's RFP; so that Mr. Pena will give his recommendations
           on both contracts.

           There was discussion on issues pertaining to the City's
           proposal.

           Cw. Montalvo, acting as a member of the Ad Hoc Committee
           made a motion to go with the City's proposal and Cm.
           Agredano seconded her.

           In conclusion, the Ad-Hoc Committee's recommendation for
           City Council is to go with the City's proposal.

           Motion to adjourn.

           Moved :  Cm. Guerra
           Second:  Cm. Galo
           For:  5                     Against:  0         Abstain:  0


I HEREBY CERTIFY THAT THE ABOVE MINUTES CONTAINED IN PAGES 01 TO 09
ARE TRUE, COMPLETE, AND CORRECT PROCEEDINGS OF THE CITY COUNCIL
WORKSHOP HELD ON THE 15TH DAY OF JANUARY, 1999.   A CERTIFIED COPY IS
ON FILE AT THE CITY SECRETARY'S OFFICE.



                                             ___________________
                                             GUSTAVO GUEVARA, JR.
                                               CITY SECRETARY