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

   M99-R-05                   M I N U T E S           FEBRUARY 16, 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 led in the Pledge of Allegiance.

 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
      Jaime L. Flores,                 City Attorney
 
  IV. MINUTES

     1. City Council Meeting, January 4, 1999
        City Council Workshop, January 15-16, 1999
        City Council Meeting, January 18, 1999

        Motion to approve.

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

        Note:  Cm. Bruni abstained on the workshop of Jan. 15-16th.




        Motion waive the rules of order and move items under
        communications and City Councilmember's requests.

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

   V. INTRODUCTORY ORDINANCE

     2. Authorizing the City Manager to execute a lease agreement
        between the City of Laredo (Airport Fund) as LESSOR, and the
        City of Laredo (Laredo Police Department), as LESSEE, for
        approximately 3,500 square feet constituting office space
        within the 1st floor of Building 132 located at 4719 Maher
        Avenue at the Laredo International Airport.
        1. Lease term is five consecutive years commencing on
           March 1, 1999 and ending on February 28, 2004, and may
           be extended for three (3) terms of five (5) years each
           ending February 28, 2009 and February 28, 2014 and
           February 28, 2019.
        2. Monthly rent shall be $2,800.00 and will be adjusted
           annually during the primary and extension terms of
           lease according to changes in the Consumer Price Index.

        Ordinance Introduction: City Council

     3. Authorizing the City Manager to execute a lease agreement
        between the City of Laredo (Airport Fund) as LESSOR, and the
        City of Laredo (Laredo Police Department), as LESSEE, for
        approximately 22,000 square feet constituting land located at
        4719 Maher Avenue at the Laredo International Airport.
        1. Lease term is five consecutive years commencing on
           March 1, 1999 and ending on February 28, 2004, and may
           be extended for three (3) terms of five (5) years each
           ending February 28, 2009 and February 28, 2014 and
           February 28, 2019.
        2. Monthly rent shall be $150.00 and will be adjusted
           annually during the primary and extension terms of
           this lease according to changes in the Consumer Price
           Index.

        Ordinance Introduction: City Council

     4. Authorizing the Execution of an interim loan agreement between
        the City of Laredo and Norwest Bank Texas, N.A., Laredo, Texas
        in the amount of $8,000,000 to facilitate the award of a
        contract for the purchase of a Toll Bridge Collection System
        upgrade payable from surplus revenues of the City's
        International Bridge System, and other matters related to this
        subject.

        Motion to table for next meeting.

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

     5. Setting the maximum speed limits in that portion of Loop 20
        between US 83 East towards State Highway 359, within the city
        limits of Laredo, Webb County, Texas, as 40 MPH between U.S.
        83 and approximately 150 feet east of Los Presidentes Avenue in
        and 45 MPH from that point to State Highway 359, as defined in
        TXDOT Control Section Map 0086-14.

        Ordinance Introduction: Cm. Bruni

     6. Amending Chapter 2, Administration, Article I. in general,
        Section 2.5 of the Code of Ordinances by adding subparagraph
        (c) by providing the place where City Council meetings are to
        be held; at City Hall or at any designated council district;
        and providing for publication and 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-047,
       #99-O-049, #99-O-050, #99-O-051, and #99-O-052.

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

     7. 99-O-047  Ordinance amending Chapter 31, Article III,
                  Division 3, Rates and Charges, of the Code of
                  Ordinances of the City of Laredo, creating a new
                  subsection (b) thereby adding a provision allowing a
                  developer or subdivider to transfer municipal water
                  rights for credit in lieu of water availability fees,
                  platting fees, annexation fees, special assessments
                  for water and sewer, water and sewer connection
                  charges, and impact fees. Directing the Utilities
                  Director to determine the value of the water rights
                  transferred to the City of Laredo by an analysis of
                  contemporary market values obtained through a third
                  party knowledgeable and experienced in the purchase
                  of water rights for Rio Grande River Water Rights.
                  Directing the Utilities Director to set the water
                  right exchange value for each succeeding six month
                  period beginning January 1 and July 1 of each year.
                  (Council member Louis H. Bruni)

                  Motion to approve Ordinance #99-O-047.

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

        99-0-049  Ordinance amending the Zoning Ordinance (Map) of the
                  City of Laredo by authorizing the issuance of a
                  Conditional Use Permit for truck rentals on Lots 2,
                  3, and 4, Block 1218, Eastern Division, located at
                  2119 Corpus Christi St.
                  (Council member John C.  Galo)

                  Motion to approve Ordinance #99-O-049.

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

        99-0-050  Ordinance the Zoning Ordinance (Map) of the City of
                  Laredo by authorizing the issuance of a Conditional
                  Use Permit for a flower shop on Lot 10, Block 712,
                  Eastern Division, located at 220 S. Loring Ave.
                  (Council member John C. Galo)

                  Motion to approve Ordinance #99-O-050.

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

        99-O-051  Ordinance approving an amendment to the contract with
                  the Texas Department of Health and budget in the
                  amount of $435,686 (which consists of $230,386 in
                  direct funds from the State and in-kind services
                  match of $205,300) for an Abstinence Education
                  Program partnered between the City of Laredo Health
                  Department and the Laredo Independent School District
                  for the beginning January 1, 1999, through
                  December 31, 1999. (City Council)
                  Motion to approve Ordinance #99-O-051.

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

        99-O-052  Ordinance approving an amendment to the contract with
                  the Texas Department of Health and budget in the
                  amount of $5,000 for the Border Health Project of the
                  City of Laredo Health Department for the period
                  beginning November 1, 1998 through September 30,
                  1999. (City Council)

                  Motion to approve Ordinance #99-O-052.

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

 VII. RESOLUTIONS

     8. 99-R-016  Expressing official intent to reimburse costs of
                  purchase and installation of the Toll Bridge
                  Collection System upgrade.

                  Motion to approve Resolution #99-R-016.

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

     9. 99-R-017  Accepting a grant from the Texas Department of Health
                  in the amount of $285,938 for the HIV Ryan White Care
                  Consortium Project of the City of Laredo Health
                  Department for the period beginning April 1, 1999,
                  through March 31, 2000.

                  Motion to approve Resolution #99-R-017.

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

    10. 99-R-018  Declaring the public necessity to acquire thirteen
                  parcels of land as Drainage Easements for the Chacon
                  Creek Tributary Project, Phase II. Said parcels of
                  land being situated in the Blocks 1950 and 2003,
                  Eastern Division, City of Laredo, Webb County, Texas;
                  being more particularly described by metes and bounds
                  and authorizing the City Attorney to initiate eminent
                  domain proceedings to acquire those parcels that
                  staff is unable to acquire through negotiations due
                  to inability to agree to a purchase price, conflicts
                  of ownership, owner's refusal to sell, and/or
                  inability to locate record owner.

                  Motion to approve Resolution #99-R-018.

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

    11. 99-R-019  Expressing support of the congressional designation
                  of El Camino Real de los Tejas as a National Historic
                  Trail Unit of the National Trails System.

                  Motion to approve Resolution #99-R-019.

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

    12. 99-R-020  Accepting the donation of a 506.97 square feet, more
                  or less, corner clip at the intersection of St. James
                  Avenue and Calle Del Norte, from the Amanda Rash
                  Family, and also accepting the terms of an addendum
                  to a Letter of Agreement executed between the City of
                  Laredo and the Rash family, and dated September 23,
                  1992, by which the Rash family donated a 37.5 foot
                  wide tract of land to the City of Laredo.

                  Cm. Valdez publicly thanked the Rash Family for the
                  donation of the property.

                  Motion to approve Resolution #99-R-020.

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

    13. 99-R-022  Authorizing the City Manager to accept a grant from
                  the Office of National Drug Control Policy (HIDTA) in
                  the amount of $50,392 to fund the Multi-Agency Major
                  Organization Investigation Task Force for the period
                  of January 1, 1999 through December 31, 1999.
                  Motion to approve Resolution #99-R-022.

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

    14. 99-R-023  Appointment of Laura Bailey and Gladys Zepeda to the
                  Convention and Visitors Bureau (CVB) Advisory Board.
                  There are currently two vacant positions on the CVB
                  Board. The Ad Hoc nominating committee recommends the
                  appointment of the nominees listed above.

                  Motion to approve Resolution #99-R-023.

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

    15. 99-R-024  Resolving that the City Manager is authorized to
                  execute a Subordination, Non-Disturbance and
                  Attornment Agreement between the City of Laredo,
                  International Bank of Commerce and L.A. Ventures,
                  Inc., thereby subordinating the lease agreement to
                  Lot No. 7 authorized by Ordinance No. 95-O-250 dated
                  February 20, 1999 and authorizing the City Manager to
                  execute a second lien mortgage as to Lots 1 through 6
                  with International Bank of Commerce and L.A.
                  Ventures, Inc. The subject property is located in
                  Block No. 1 at the Laredo International Airpark
                  Subdivision at the Laredo International Airport.

                  Motion to approve Resolution #99-R-024.

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

VIII.  MOTIONS

    16. Consideration of approval of bid specifications and
        authorization to advertise for bids for the following:
        a) assembling and installation of 1484 street name blades in
           371 non-CDBG intersections.
        b) assembling and installation of 1252 street name blades in
           313 CDBG intersections.

        Motion to approve.

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

    17. Consideration to approve the bid specifications for the
        proposed public sale of land (4) lots, individually or in the
        aggregate totaling approximated 3.2 acres, of commercial and
        medical related land located at the Laredo International
        Airport and authorizing the City Manager to solicit bids from
        the public. The subject property fronts on Saunders (Hwy 59),
        the new Mercy hospital on the west side, Gust Street on the
        north side and Bartlett and Commerce Bank on the east side.

        Motion to approve.

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

    18. Consideration of approval of the construction plans and
        authorization to advertise for bids for the Southside
        Wastewater Treatment Plant Belt Filter Press Addition with
        tentative award on March 22, 1999. Funding is available in
        the Sewer 94 Bond SL Belt Filter Press.

        Motion to approve.

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

    19. Consideration of approval to reject the three (3) bids for the
        Re-Roofing of the Ladrillera Community Center Building Project
        due to all the three bids were incomplete and did not comply
        with the project specifications, and approval to re-bid the
        project with tentative award on March 22, 1999. Funding is
        available in the Capital Improvement Roofing - La Ladrillera.

        Motion to approve.

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

    20. Consideration to award a construction contract to the SOLE
        BIDDER, Cantu America Construction Company, Laredo, Texas, in
        the amount of $151,080.00 which is the base bid with a
        deductive alternate to remove a Gazebo and Air Conditioning
        work for the Canizalez Gym Improvements located at 1600
        Guadalupe.  Funding is available in the 1998 CO Issue Canizalez
        Gym.

        Motion to approve.

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

    21. Consideration to award contract number 99-047, to the
        LOW BIDDER, Rankin Automatic Transmission, Laredo, Texas, in
        the estimated amount of $50,000.00, for an annual contract for
        transmission repairs for the Fleet Maintenance Division.  The
        bid pricing will be firm during the contract period and all
        repair work will be secured on an as need basis.  The bid
        pricing is approximately the same as the previous contract.

        Motion to approve.

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

    22. Consideration to award contract 99-048, to the LOW BIDDER,
        Goldthwaites's of Texas, Inc., Fort Worth, Texas, in the amount
        of $39,884.00, for the purchase of four, riding mowers with a
        72" cutting deck.  Delivery of the new mowers is expected
        within forty five days.

        Motion to approve.

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

    23. Consideration to accept the Construction of Sidewalks at the
        Approaches to Clark Elementary School on Hillside Street from
        Yeary to Haynes, and approval of final payment in the amount of
        $6,248.81 to Dominguez Development and Construction, Laredo,
        Texas. Funding is available in the Capital Improvements Clark
        Elementary Sidewalks.

        Motion to approve.

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

    24. Consideration to authorize the City Manager to execute a
        contract with, Juan Gamez, Miguel Gamez and Hector Chapa d/b/a,
        J&H Concessions to provide food and beverage concession and
        alcoholic beverage operations at Veterans Field for a twelve
        (12) month term.

        Motion to approve.

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

    25. Consideration to refund property tax to the following
        taxpayers:
        a. Garza, Jorge and Suzan S. in the amount of $863.94 due to a
           double payment.
        b. Hilario, Luis Jr. and Maria Elena in the amount of $689.38
           due to a double payment.
        A taxpayer may request a tax refund if an overpayment or an
        erroneous payment was made.

        Motion to approve.

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

    26. Consideration to approve monthly adjustments to the tax roll.
        It was recommended by the City Attorney and the Tax Collections
        Attorney that Council should receive a monthly report updating
        the Council-approved tax roll for adjustments. The report
        should be adjusted monthly to coincide with the monthly
        adjustment report. These adjustments are produced by the County
        Appraisal District and by Court Orders.
        A. October 1998
        B. November 1998
        C. December 1998
        D. January 1999

        Motion to approve.

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

    27. Consideration to authorize the City Manager to award 1998
        Emergency Shelter Grant funds (ESG) made available by the U.S.
        Department of Housing and Urban Development in the amount of
        $111,055 to Stop Child Abuse and Neglect, Inc. (SCAN) for the
        rehabilitation of the SCAN Emergency Youth Shelter to include
        the costs associated with design and construction of additional
        facility space and other general improvements and authorizing
        the City Manager to enter into contract.

        Motion to approve.

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

        Cm. Alvarado announced that he is abstaining on this time and
        has provided the City Secretary with an affidavit to this
        effect.

    28. Consideration to authorize the City Manager to enter into
        contract with the METRO Affordable Housing Corporation (METRO)
        in the amount of $47,595 to provide homeless prevention
        services with 1998 Emergency Shelter Grant (ESG) funds provided
        by the U.S. Department of Housing and Urban Development.

        Motion to approve.

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

    29. Consideration to approve the selection of a consultant to
        provide professional services for a Federal Aviation Regulation
        (FAR) Part 150 project to soundproof existing structures
        located in residential developed land within the 65 DNL noise
        contour and in exchange for soundproofing obtain an avigation
        easement and authorize the City Manager to negotiate a
        professional services contract with the selected firm. A
        recommendation regarding the selection of a consultant will be
        made during the 2-16-99 City Council meeting.

        Jose Luis Flores, Airport Director, reported that they made a
        presentation to the Engineering Committee and that the
        recommendation from staff and from the committee is W.D. Shock,
        Inc.

        Motion to approve.

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

  IX.  STAFF REPORTS

    30. Consideration with possible action on the 3500 block of South
        Bartlett, 400 block of South Seymour and South Ejido from Loop
        20 to Gates.

        Cindy Collazo, Community Development Director, explained that
        these are actually paving inquiries and reported the following.

        On the 3500 block of South Bartlett there is a portion of the
        street that is paved, although there is a portion that is not.
        The reason for that is that it is privately owned.  It is
        approximately about 4,400 square feet and there is an apparent
        landowner.  They have an estimate now, the land is basically
        approximately $14,300.00 plus the paving with curb and gutter
        would be about $10,000 for a total of about $24,300.  They can
        see if the landowner would be willing to donate it, but the
        only thing is that this particular project is not funded at
        this time.  She added that the people are presently using it as
        a street and there is a perception that it is city property,
        but it is not.

        City Manager Pena said that they do think that it makes sense
        to connect this property for circulation of the area, but it is
        not identified in the CIP at this time.  In order to the get
        the ball rolling with this project, they need City Council
        direction to begin looking at alternatives to pave it and if it
        cannot be done this year to at least get the process started.

        Motion to instruct staff to start the process to acquire the
        property and begin looking at alternatives to pave this
        property to have a better feel of how much would be needed to
        get this project done possibly by next year.

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

        In reference to South Ejido from Loop 20 to Gates, this is
        approximately a four block area that is not paved and that ends
        into the creek.  She added that Mr. Rivera has asked the legal
        staff to go ahead and provide us with a determination as far as
        the ownership.  As soon as that determination is received they
        can go ahead and look at that.  This project is not funded
        right now, but they at least need to provide or be able
        to obtain, the ownership data on it.

        Rogelio Rivera, City Engineer, said there is a deed that dates
        back to 1954 when the land was transferred.  What they are
        asking legal staff is to research and see if it is still the
        same owner or who the current owner is.  These are about four
        blocks and the right-of-way is about 20-25 feet only, but if
        they were to open the street they would probably have to
        purchase additional land from the adjacent owner.

        Cm. Agredano said that one of the biggest problems there is
        that people are using it to dump trash on east side.

        Motion to instruct staff to proceed to acquire the property.

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

        In reference to the 400 block of South Seymour, City Engineer
        reported that there has been some illegal dumping in that area
        also.  The concern there is also that they have filled up a
        portion of Milk Avenue with illegal dumping and in doing so
        they have blocked the drainage.  There are concerns by some of
        the adjacent owners that if and when a big rain might occur,
        that they might get flooded.  He concluded by saying that this
        is not a project in the Capital Improvements, but that they do
        need to make a study and see if they can take the water
        underground into the large creek near the area.  The creek is
        about 15 feet deep or so, but it runs to private property.

        Cm. Bruni said that they (Cm. Galo and himself) have met with
        some of the owners in the area.  He added that apparently there
        is a church in the area and the priest was cited.  He was sent
        a strong letter from staff and he was somewhat upset.  What he
        would like to see is if we can extend the underground storm
        drain through that area.  He asked for a report on extending
        the underground storm drainage to fill in that area.

        Motion to do a study on extending the underground storm
        drainage.

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

    31. Status report of the City of Laredo International Airport Noise
        Compatibility Program for the month of February 1999.

        Cindy Collazo, Community Development Director, reported the
        status on the Noise Program for the month of February.  She
        said they have 19 appraisals, 18 review appraisals have been
        completed, they have offers that have been presented to 16
        families and of those 16, nine have already accepted.  They
        have completed and acquired five properties, two of which will
        be closed this week.  They have three families that have
        requested participation in the Acoustical Treatment Program and
        seven under the Avigation Easement Program.  There are still 17
        families that are undecided, one that did not qualify because
        they were not owner occupants and three that have indicated
        they do not wish to participate at this time.  They will go
        back and make sure that these three families fully understand
        the program and if they do not want to participate then they
        will move on to the rest of the families.

        As far as the Acoustical Treatment Program is concerned, City
        Council has approved this evening the recommendation to proceed
        with the negotiation of a contract.

        In reference to the Avigation Easement, they are working very
        closely with the appraiser.  She added that he has run into a
        stumbling block with the completion of the appraisal because he
        needs additional information.  She added that they wanted to
        sell that information to him which would exceed the contract
        amount that we currently have.  She asked Mr. Flores to make
        contact with one of the airports in the State of Texas to see
        if we can facilitate that information so that the report can be
        completed.

        They also sent 32 certified letters to the area residents that
        were undecided or had opted for the Acoustical Treatment or the
        Avigation Easement letting them know the status of where we
        were on the project so that they would not feel that perhaps
        they have been forgotten.

        She concluded by saying they are pretty much on target and are
        pushing the appraiser to try and get the information as soon as
        possible.  Mr. Flores has already made contact, but if this
        becomes a little difficult she will call the Mayor and perhaps
        she can help them obtain the information.

        Cm. Galo recommended that staff look into the lease program.
        He said that maybe they can put them in one of our housing
        corporations and asked that they bring back recommendations.

        Motion to move items #32 and #33 at the end of the meeting.

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

    32. Request for Executive Session pursuant to Texas Government Code
        551.074(A)(1) to evaluate the performance and pay of City
        Manager, Florencio Pe¤a III, and return to open session for
        possible action.

        Motion to go into executive session pursuant to Texas
        Government Code 551.074(A)(1) to evaluate the performance and
        pay of City Manager, Florencio Pe¤a III.

        Moved :  Cm. Alvarado
        Second:  Cm. Valdez
        For:  7                         Against:  0         Abstain:  0
        (Cm. Guerra was not present)

        After executive session Mayor Flores announced that no formal
        action was taken in executive session.  She stated that they
        spent a good deal of time coming up with a very positive
        evaluation process for our City Manager.

        Motion to use that evaluation tool so that they can present a
        more systematic evaluation of our City Manager.

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

        Mayor Flores asked City Manager Pena to use that form to
        evaluate himself and turn that evaluation to City Council the
        following Monday, then they will use his evaluation as well as
        their own to evaluate him on March 1st and at that time they
        will complete the evaluation of the City Manager.

    33. Request for Executive Session pursuant to Texas Government Code
        551.071(1)(A) to discuss pending litigation regarding the City
        of Laredo vs. Laredo Distribution Center, Inc., a Texas
        Corporation, Cause No. 99CVQ00005-C1, and return to open
        session for possible action to hire trial counsel Bickerstaff,
        Heath, Smiley, Pollan, Kever, and McDaniel, L.L.P.

        Motion to go into executive session pursuant to Texas
        Government Code 551.071(1)(A) to discuss pending litigation
        regarding the City of Laredo vs. Laredo Distribution Center,
        Inc., a Texas Corporation, Cause No. 99CVQ00005-C1.

        Moved : Cm. Agredano
        Second: Cm. Alvarado
        For:  7                         Against:  0         Abstain:  0
        (Cm. Guerra was not present)

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

        Motion to authorize City Manager to hire trial counsel
        Bickerstaff, Heath, Smiley, Pollan, Kever and McDaniel, L.L.P.
        to assist the City Attorney in representing the City in pending
        litigation regarding the City of Laredo vs. Laredo Distribution
        Center, Inc., Texas Corporation, Cause No. 99CVQ00005-C1.

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

   X.  COMMUNICATIONS

   a.  Mayor Flores announced that the first item of communication is a
       presentation from Mr. Jesus Hernandez and others to Councilwoman
       Montalvo.

       Mr. Jesus Hernandez, GI Forum Commander,  said he was before
       City Council with a medal that will be presented to Councilwoman
       Consuelo Montalvo that belonged to her mother in honor of her
       son who served during the war.

       Mr. Alex Gonzalez presented a "Medal of Honor" to Councilwoman
       Consuelo Montalvo on behalf of the G.I. Forum honoring her
       brother Rodolfo "Rudy" Gonzalez for his service and dedication
       in the Vietnam War.

       Mr. Hernandez said he will be bringing two proposals at the next
       council meeting.

       Cw. Montalvo thanked Mr. Hernandez and members of the
       organization for the honor bestowed to her and to her mother who
       passed away.  She said she cannot replace her mother, but
       expressed that this was her brother and that she feels happy
       that he served his country.

   b.  Ms. Sylvia Romero stated she was before council as a concerned
       citizen and most importantly as a concern parent.  She said she
       is a mother of three children who attended public schools in
       Laredo.  Her youngest is a Junior at Nixon doing well, her
       oldest works and attends college at LCC, but her son Carlos
       Romero who is a middle child is attending Texas A&M in College
       Station.  This is his third year at Texas A & M.  On the latter
       part of last year he applied and took an exam to go into dental
       school, he received a letter of acceptance from University of
       Texas.  Since he graduated he told his family that he wanted to
       be a dentist and come back to his home town and give something
       back to his community.

       On Friday, February 12th his dream almost didn't come true.  She
       said they almost lost their son.  He had come down that same day
       from Texas A&M to spend the weekend and after he arrived, he
       went to Walmart for buyings of not more than $5.00.  When he was
       coming back from Walmart he was in a terrible accident and his
       life was spared.

       Note:  At this time a video was shown so that council could see
       how bad the accident was on IH-35.

       Mrs. Romero explained that while he was driving on IH-35
       returning home, when he changed lanes to the left and being that
       there was a slope he was unable to see the 18-wheelers parked on
       the left lane.  He did see the police vehicle, but he did not
       think anything of it.  She continued saying that he does not
       come down to Laredo often so he did not realize why the police
       vehicle was there and that it was there because of the trucks.
       He had time to brake, but it was not enough to avoid the truck
       so his car drove under the truck.  Her son says he came inches
       from death.  He was pinned inside and the top of the car had to
       be removed in order to take him out.  She publicly thanked the
       paramedics, the Fire Department for doing a great job in taking
       him out from there.

       When they got home they received the phone call that her son was
       in the hospital and that he has had an accident.  They rushed to
       the hospital and when they went in and saw him sitting down
       shaking but alive, they thanked the Lord.  She added he had
       minor injuries due to the broken windshield and they were able
       to bring their son home with them that evening.  She concluded
       by saying that they keep thanking the Lord that his life was
       spared.  There was also another accident right after this one
       the same day.  She has tried to figure out why this had happen
       and one result was to come and speak to before City Council
       about the danger that 18-wheelers are causing parked there.  She
       knows that there have been efforts to let motorist know that
       they are there, but that is not enough.  It has always been her
       opinion that a highway is not for parking, that is why highways
       have shoulders that can be used in case of an emergency.  She
       added that this is a "freeway" and it certainly is not for
       stationed vehicles so why are those trucks parked there?  Is it
       because it is great business for the community?  She considers a
       life more important than anything else.

       Mrs. Romero quoted, "Lives have been lost due to these trucks
       parked there, there have been numerous accidents, due to those
       trucks being there and I ask you, how many more lifes and dreams
       are going to be lost before something is done to remove them for
       there?  How many persons will suffer the pain of losing a loved
       one just because no real action is taken to remove them from
       there.  This past Friday was my son...and we almost lost
       him....his sisters almost lost a brother, whose loved one will
       be next?  Will it be one of yours...or anybody else in the
       community....I pray not and I hope I have made a good impression
       to you Mayor and the Councilmembers to see what can be done to
       remove those trucks from there and re-route them some other
       way."

   c.  In another note, Mayor Flores announced that she received a
       letter from Pedro Garza, Regional Director from the United
       States Department of Commerce, on her recent trip to Washington
       to attend the U.S. Conference of Mayors and for the signing of
       the Memorandum of Agreement.  She read, "Please know that EDA
       will continue to support efforts to champion environmental
       protection and to promote economic development in the Rio Grande
       Border Region.  Our policy analyst, Jennifer Cam and I look
       forward to future opportunities to work with you in helping your
       community."

       Mayor Flores stated that she also received a letter from the
       United States Environmental Protection Agency which pretty much
       says the same thing.

       She announced that there was another letter received from the
       White House and others.  She said she knows that the Memorandum
       of Agreement was important to many people and the federal
       agencies that sign-on to it.

   d.  At this time Mayor Flores asked the Councilmembers indulge her a
       few minutes and quoted the following:

       "On February 14, 1998 the people of Laredo elected me to be
       their mayor for the unexpired term of now Deputy Secretary Saul
       Ramirez.  On May 2, 1998 they elected me to a four year term.  I
       want to offer a sincere thanks to the people of Laredo, to my
       family and friends who believed in me.  I want to thank the
       members of City Council and the employees of the City of Laredo
       who have offered their support, their expertise and their
       advise.  Special thanks to staff and members of LDF, the Chamber
       of Commerce, and all the organizations that took time to keep me
       inform and to accompany me and others in our advocacy trips.  I
       want to thank the County Judge and members of the Commissioner's
       Court and Webb County staff for their support and help this past
       year.  I want to thank the leadership and the staff of those
       government agencies in Laredo that have helped me help the
       people of Laredo.  And I especially want to thank the people who
       take time out from time to time to offer me a note of
       congratulations, who tell me they pray for me, my health and my
       family because they are proud of me.  I want to thank the
       children for reminding me every day that we have not done
       enough.  You all have made my job a joy!

       Tonight I would like to comment on my year as Mayor of one of
       the most dynamic cities in this country and of this century.  It
       has been at times sweet and at times bitter.  Just after my
       election I lost my father.  A man who taught me the importance
       of community service.  A man who taught me to enjoy every day
       for its wonder and its peace.

       You all may know that I have been very busy.  Some of you may
       remember that I often mentioned during my campaign that Laredo
       needed a mayor that could dedicate lots of time to the duties
       and responsibilities imposed upon by a fast growing city and its
       people.  Duties and responsibilities not those mentioned in the
       City Charter, for surely those "ceremonial duties" can be done
       around anyone's schedule, but the responsibilities of strong
       political leadership and advocacy that this border city
       deserves.  I did not know at the time how right I was, for this
       is the only part time job I have ever had to do full time and
       then some!  I propose to you that in order not to loose
       momentum, in time we must revisit our charter and the
       expectations we place on future mayors.  Why?  Because on this
       southern Border, but far more in Laredo the term "global
       competition" has been transformed into substantial, real-world
       economic growth through foresight, experience, and hard work.
       The effects of political and economic changes of two countries
       are immediate, tangible and visible in the streets.

       The wisdom of folly of political action is quickly shown in the
       harsh light of economic reality from state and federal
       government entities as well as the private sector.  It is
       incumbent on us to do everything we can to be respected as the
       front door to the United States.  To be respected is to be
       understood.  We are at the center of the primary trade route
       connecting Canada, the United States, and Mexico and the
       doorstep of Mexico's burgeoning industrial complex.

       Because the Border has endured hardships brought about by
       battles among Spaniards, Indians, Mexicans, Texans, Americans,
       Yankees and Rebels and has been both battered and blessed by
       shifts in the policy decisions of two powerful nations, the
       Border is a lesson in survival.  With its own culture and sense
       of purpose, and its own vision of what the future could be for
       all people, this border is a lesson for the future.  Laredo is
       in the middle of it all.  For Laredo is the only U.S./Mexico
       border city strategically positioned at the convergence of all
       land transportation system:  Mexico's principal highway and
       railway leading from Central America through Mexico City,
       Saltillo and Monterrey, the industrial heart of Mexico where
       they meet two major U.S. rail lines, Interstate 35 and other
       roads which fan outwards to the urban centers and seaports of
       Texas and beyond to the Northern States.

       After 150 years of neglect, of having to "go it alone" the
       border has been receiving some very welcomed attention.  I take
       this opportunity to thank my predecessors and previous members
       of the city staff for opening the doors and keeping their foot
       there so that the doors would not shut on us.  Our job now is to
       cease every opportunity, every challenge and make it work for
       us.  The interest in our City may have begun as a result of
       NAFTA and reports of tremendous growth.  Currently,
       approximately 15,000 Laredoans are directly employed in trade
       handling, another 22,000 are indirectly employed because of
       trade handling.  In other words, well over 50% of Laredo jobs
       are owed to international trade.  But NAFTA must be seen only as
       a part of our economic process.  In this process we must include
       the maquiladora programs that helped spur the growth of Laredo's
       transportation industry.  The maquiladora plants served by the
       Port of Laredo, are much more capital intensive than the hand
       assembly operations found in other border city areas, plants
       which are more in need of Laredo's multi-model rail, air cargo
       and highway connections.  For this reason, the growth of
       maquiladora plants in Nuevo Laredo and Northern Mexico has had a
       powerful impact on Laredo's economy.  We have lots of figures
       that show our amazing growth:  telephone connections, new
       vehicle sales, new housing and new building permits, sales tax
       rebates and the number of people employed.  We are already an
       important center for higher education and international business
       studies, but we must expand our job training skills, we have a
       tremendous opportunity to make Laredo a regional health center
       and to expand our retail sales and by capitalizing on our
       beautiful river and historic downtown we can easily expand
       tourism.  But we must be counted in order to improve our funding
       opportunities and get our tax dollars back to Laredo.  Our city-
       wide motto for the 2000 census should be, "Have you been
       counted?"  This should be on a mouth of every man, every woman,
       and child in this city.

       In order to be successful we must be responsive to the needs of
       All Laredoans.  Laredoans, should have access to safe housing,
       health care, child care, education and job training as well as
       access to capital.  For this to happen, Laredo must stay united,
       aggressive and positive.  City, County and school government,
       the private and non-profit sectors, the religious community, the
       media, the children, young people and their families.  We have a
       very young, very accessible work force-lets train them.  We must
       look to our sister city and combine our efforts to stop illegal
       drugs, illegal dumping, and contraband.  Together we can clean
       up our river and stop the problem we have with stolen vehicles.
       Every resident of Nuevo Laredo and every resident of Laredo
       must take responsibility for their community.  If we throw trash
       on the road or break the laws and ordinances we disregard our
       City--we break our neighborhoods, our families.  This is very
       personal.  We must do something together every day to strengthen
       our family, our neighborhoods, our City.

       On this southern border, you will find the most patriotic people
       in the world.  You will find the warmth, the joy, the hope of a
       region compressed between nations, between cultures, between
       economies, between histories.

       This week as we go deep into the celebration of our founding
       father, George Washington, I would like to end by remembering
       the words of another George Washington--George Washington
       Carver:  "How far you go in life depends on your being tender
       with the young, compassionate with the aged, sympathetic with
       the striving, and tolerant of the weak and the strong.  Because
       some day in life you will have been all of these."

       Thank you Lord for everything you give me.  Bless the people of
       Laredo"


  XI.  CITY COUNCIL PRESENTATION AND DISCUSSION

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

        A. Request by Council member Louis H. Bruni

           1. Status report with possible action on the request by
              Enron Oil and Gas Company to plug and abandon two
              existing, non-producing gas wells on the Northeast corner
              of McPherson and Del Mar Boulevard.
              (Co-sponsored by Council member Joe A. Guerra)

              Cm. Bruni reported that about two months ago they had a
              Drilling Oil/Gas Review Committee Meeting of which he is
              the chairman.  Enron Oil/Gas Company approached the
              committee at that time and what they wanted to do is
              abandon these two gas wells that are about 160 feet to
              the north of a new McDonalds.  They stressed that these
              gas wells were non-producing, that there was some
              lingering gas in them and that they had about 500 pounds
              of shutting pressure.  When the committee reviewed the
              oil and gas ordinance and when they told them the
              concerns that we had and what we expected them to do as
              prudent operators, they said that they would get back
              with us.

              Cm. Bruni continued saying that he has spoken to Mr. J.
              Trautman (surface owner) who has told him that he has
              been trying to communicate with Mr. John Newman, with
              Enron, and the Enron landmen for the past two months and
              since the meeting was held, but they have not come to the
              phone for Mr. Trautman.  He told Mr. Trautman that he
              would put this item on the agenda.

              They have also tried to amend oil/gas ordinance to
              include language whereby they would be forced to plug
              these wells.  These wells might not be producing value to
              the oil companies, but there is always lingering gas in
              them and if they were to have a seal or if a well-head
              were to fail there would be gas that would be leaking and
              you could conceivably be looking at a gas explosion.

              He thinks that Enron is not being prudent by not talking
              to the surface owners who want their surface back and by
              not communicating with our staff as to what their
              intentions are.

              He added that the Trautman Family has hired local counsel
              to represent them in getting these wells plugged.  He
              concluded by saying this is a safety issue and he wants
              to know the status of this issue.

              Keith Selman, Planning Director, reported that at that Ad
              Hoc Committee Meeting their primary of being there was
              to inform Enron what they needed to do in the process.
              He said they need make application for a drilling permit
              under the definitions of what they were doing by pulling
              the "christmas tree" off and going back in the well-head
              to plug.  He said that they really need to do the whole
              process again, at this point in time.  Enron has not been
              back in contact with the Planning staff to initiate that
              drilling permit in process.  At that time they cited the
              provisions of the ordinance to Enron letting them know
              what the requirements would be and why they had to come
              back for a drilling permit, but again to this point in
              time they have not initiated the process of getting a
              drilling permit to plug the well.

              In regards to the action that council took on revising
              our ordinance, that week they did telephone the railroad
              commission which was also part of council's directive
              requesting information so that our ordinance would
              coincide with their regulations.  He added that when he
              saw this item last week, they called them again so they
              should be getting some information soon.

              Mayor Flores asked the City Attorney if there are any
              other avenues that can be taken besides calling Enron?

              Jaime Flores, City Attorney, stated that up to this point
              his office has not been involved legally, but they can
              certainly take action with Mr. Selman to cite the
              ordinance and address some things from his department.

              Mr. Selman stated that there is really nothing, only the
              request from council to amend the ordinance.  There is
              nothing requiring them to come in and plug the well.
              They did show initial interest in plugging the well, but
              they have not made application to do the drilling permit.

              Cm. Alvarado stated that the concern here is safety.

              City Manager Pena stated that the ordinance doesn't
              really address ongoing inspections after abandonment, it
              is just silent to that whole issue.  He assumes that the
              city under state law and under the local government code
              has the authority and will investigate this.  They can
              undertake an inspection of a building or a facility if in
              fact there is a concern regarding the safety of that
              facility.  He concluded by saying they are going to
              explore that and discuss this with our City Attorney and
              if they can make phone calls to Enron to express the
              concern so that possibly we can conduct an inspection of
              that specific facility.  Then, in the long term basis we
              need to probably amend the ordinance to provide the
              mechanism to do that.  In the short term basis, they will
              explore the possibilities of doing an inspection of the
              facility for public, health, and safety under existing
              state law.

              Cm. Bruni said he realizes what Mr. Selman is trying to
              do and this would be beneficial to amending our
              ordinance which is something he looks forward to doing
              and that is to having a strong ordinance because as we
              continue to expand and our annexation increases, there is
              a lot of existing gas wells that are producing and also
              a lot of gas wells that are not producing.  These two
              wells are special because they are in the parking lot of
              the H.E.B. which has hundreds of cars in it, they are 150
              feet from the drive through window of McDonalds.  He
              added that there were certain setback requirements and
              that City Council along with the recommendation from the
              Oil and Review Committee in order to piece the oil
              companies and a piece the surface owners, council went
              from 250 to 150 feet to fit in this McDonalds to help the
              surface and the landowners.  Now he feels that they in
              good faith listened to Enron and listened to the
              landowners and cut back on the setback requirements to
              facilitate a fast food restaurant and an H.E.B with the
              promise that when they would deplete those wells they
              would prudently plug and abandon as per specifications of
              the Railroad Commission and they have not done so.  He
              expressed that in his view they are not being prudent
              operators.

              He asked that the Fire Department and the Legal
              Department look into our ordinances because he doesn't
              think it's proper that these well heads are there, they
              are not producing gas, are of no benefit to anybody, but
              they are a danger to the residents, the community, and
              the people that drive and park there.

              Motion to instruct staff to research and see if there is
              a legal way as per our city ordinances that calls for
              certain safety procedures to take place whereby we can
              force them to plug an abandoned gas well.

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

              City Attorney Flores said he will proceed to contact
              Enron and the counsel for the surface owner as well as
              the Railroad Commission and look into our ordinances
              right away.

              Mr. De Leon said that since they are looking at this
              situation, he feels they should also look at the 6400
              block of McPherson where there is an abandoned oil or gas
              well next to the baseball field where children practice.
              He pointed that there is also rusted equipment in that
              location and feels they should make that a area safe.

        B. Request by Council member John C. Galo

           1. Discussion and possible action on promoting El Metro
              Parking.

              Cm. Galo said that this idea was presented by several
              downtown merchants.  Their idea was if they could buy
              "parking time" per say 100 hours at a time maybe by
              giving them coupons worth one hour, tokens worth one
              hour, or any item whereby they can promote their
              businesses and say "we have free parking at El Metro" and
              the only thing they wanted in return was additional
              signage.  They said that their customers cannot find the
              parking lot.  For example, somebody coming in from Del
              Mar may not be familiar where the new Metro building is
              so in fact we do need to have additional direction
              signage coming from IH-35.

              Viola Sanchez, Marketing Public Relations Officer for El
              Metro, delivered council copies of brochure information
              that have been done for the parking.  She mentioned that
              they had a Transit Committee Meeting last Wednesday were
              they discussed the marketing campaign for 1999 and within
              the marketing campaign presentation she included the
              project for parking.  What they are planning with the
              brochures is to distribute them along with what Cm. Galo
              mentioned, a monthly contract application for parking.
              They are going to distribute both the brochure and the
              contract via direct mail marketing to all the central
              district merchants and employers.  They are planning to
              offer them a special rate within that contract so that
              they can buy a book of tickets and offer their clients a
              special of "free parking".

              Mayor Flores said they have done that already, but what
              the merchants now want is additional signage.

              Ms. Sanchez replied that is correct, but they have to
              discuss and agree on a certain rate to sell to the
              merchants.  She asked special permission from council to
              take this to the Transit Committee to be discussed and
              then come back with a recommendation to council.  She
              said that in addition, they have ordered an entrance
              blinking neon parking sign which should be in by the end
              of the month.

              Cm. Alvarado mentioned that he chairs that particular
              committee and reported on suggestions done to Mr.
              Segovia on several issues.  They are addressing these
              concerns, they have a brochure and sign forthcoming for
              the entrance of the parking, but one other things that
              has been recommended to Mr. Segovia is to get some type
              of special promotion going on with the downtown merchants
              where they can purchase their parking space for a month
              and then get the additional month at a discount rate to
              introduce the parking spaces to the downtown merchants.

              In conclusion, Ms. Sanchez said they will discuss the
              rate with the committee and then bring back the
              recommendations to council.

           2. City Council confirmation of Javier Santos to the
              Cemetery Board.

              Motion confirming Javier Santos to the Cemetery Board.

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

           3. Status report on the December 21, 1998 council directive
              to meet with VR and Associates Pre-paid Legal Service
              Plans, with possible action.

              Dan Migura, Administrative Services Director, reported
              that he prepared a letter that he gave to the City
              Manager outlining a plan of action regarding the prepaid
              legal services that were discussed on December 21st.
              Basically, what they have prepared is a draft of the
              survey that they are going to send out to the employees.
              This survey is scheduled to be sent out on the next pay
              period (Feb. 26th) with their pay checks.  They expect to
              get those surveys back by March 5th, process them during
              the week of March 8th, tabulate and analyze those, and
              then come back to council, if appropriate, with a
              resolution to authorize payroll deduction for prepaid
              legal services.  They will do that on March 15th, however
              he suggested that we use the rule of 150 employees that
              express enrollment similar to what is done with our union
              dues and with other organizations that come in requesting
              that we do payroll deductions.  Council previously passed
              a council action that required them to meet the 150
              employee rule.  Assuming that they receive 150 employees
              expressing an interest they will notify the employees for
              payroll deduction and what procedures will take place if
              they have interest in this benefit.

              He said that he thought we might qualify for Section 125
              but has been advised that it wouldn't and that they would
              not be favorable pre-tax treatment on prepaid legal
              services. They don't see any benefit to adding that to
              our section 125 Plan and he would recommend that if
              possible that any presentations done regarding prepaid
              legal services be done during our August/September
              benefit open enrollment period.

              Ms. Vicky Romanos with VR and Associates introduced Mr.
              Luis Carlos Lucio who gave a run down of what pre-paid
              legal is.  He said it is a benefit for the middle class
              America, 10% of this population is rich and they can
              afford any attorney they want, the other 10% are very
              poor and are given representation whether good or bad so
              that leaves 80% of us (middle class people) in the limbo
              because we don't have first class representation because
              most of the time we cannot afford it.  Pre-paid legal is
              from Oklahoma, it is a 27 year old company, it is an
              expert in its field as far a legal is concerned, and it
              is basically for the Middle Class America.  He pointed
              that last year alone, 30 million people used our hospital
              plan and in the same year 100 million people went into
              court litigation, that means you are three times more
              likely to need the services of an attorney than you are a
              hospital plan.  He asked that council to please think
              about excluding them from their plans and spoke of the
              100 employee rule required.  He said most people don't
              understand a plan such as this because it is something
              very new.  They went to the City of Brownsville, they
              talked to 400 people and of the 400 they signed up 232
              people and of the 232 people they signed up only 19
              dropped out for several reasons.  He thinks if given a
              chance to present this plan to the employees he thinks
              they could see the benefit.

              Cm. Galo said on the last directive, they had expressed
              that you don't need 150 to come on board, what the 150
              measurement is for the city to do automatic payroll
              deduction.  If they sign up one person, they "can" sign
              up one person, it was going to be non exclusive and some
              other legal firm can come in and try to compete if they
              wish so.

              Cm. Galo wanted to know why staff is going to make a
              survey.

              Mr. Migura answered that it was on of the things they
              instructed to do to see if the employees had an interest
              in pursing this.

              Mr. Pena stated if at this point council no longer
              desires a survey and they want to establish a program,
              they can do that.  The resolution would authorize the
              deduction and endorses the program taking into account
              the principles eluded too, that it be non-exclusive, that
              "yes" payroll deduction would be available if it reaches
              a certain level, that we would allow pamphlets or
              documentation supporting the program to be distributed
              throughout payroll, and that it include the annual
              enrollment process or  a resolution that would address
              all these points can be brought at the next council
              meeting.

              Mayor Flores said the survey was prepared in-house, if we
              don't do the surveys then the next step would be for them
              to just send out a pamphlet to everybody.

              Cm. Galo clarified that they be allowed to send out the
              pamphlets as long at they do it at their own expense.

              Mr. Lucio explained that what they would like to do is
              come before the city employees and give them the
              presentation.

              Cm. Galo said that can be done in August.

              Cm. Valdez stated that he feels that the employees
              deserve to be fully informed about the benefits of this
              program and feels that the best time to do this would be
              in August.  He thinks this is an important and needed
              benefit because only 10% or 20% can afford to get the
              legal representation that they need at times.  He feels
              that they should be given the opportunity to present
              their package in full to the employees.

              Mr. Pena said that in regards to non-exclusive, that's
              certainly recommended, but at a point they do want to
              limit it to a number because it could become a little too
              cumbersome.  He said they can bring a resolution that
              would address the major provisions, that would address
              the annual enrollment, the monthly employee orientation,
              address non-exclusively, and the 150 registration.

              Mr. Migura wanted council to be aware of the difficulty
              that staff has regarding this issue is that Mrs. Romanos
              has come forth to council and has expressed the desire to
              present this service to employees, but he has also been
              approached by another associate from San Antonio and from
              Corpus representing the same company and they've turned
              those individuals back, so he wants to get instruction
              from council on how they want him to proceed with these
              kinds of requests.

              Jaime Flores, City Attorney, said that when we said we
              were going to do this through the city, the fact is that
              we are not going to do it through the city, the city is
              not a party.  There is no contract between the city and
              these folks, the city has nothing to do with it except
              for the payroll withdrawal if at all.

              Cm. Alvarado said that at the presentation process we
              make it clear that we are not endorsing.

              City Manager Pena stated that a resolution would address
              issues such that in order to be eligible for payroll
              deduction that organization whether it is this firm or
              another firm would have to have 150 registered, even if
              there are several firms.

              Mr. Lucio said Prepaid has a policy, if they are allowed
              to come before the city, no other Prepaid Legal member
              can also approach from the same company.  As far as
              Prepaid Legal, whoever gets to contract first is the only
              person that is allowed to take care of that particular
              company as far as another independent associate.

              Cm. Galo asked if this is only for their own company?
              Can there be another company?  He said that as long as we
              are not limiting competition from another company.

              Mr. Lucio said no, this is for their own company and
              added that they have worked this issue out on their
              company.

              Mr. Flores clarified if they are just talking about
              restricting "an Oklahoma representative"?

              Cm. Galo stated that it's not that we are allowing this
              company to come aboard, we are not giving them the
              contract, you are going to have to present along with
              anybody else interested.

              Mr. Migura wanted clarification on the survey issue.

              Mayor Flores answered that no survey is necessary.

              Ms. Romanos said they will come in August to make the
              presentation and offer their services.

              Mr. Pena said they will write a letter stating that in
              August when we have our enrollment process they are
              welcomed to come to present their program.

        C.  Request by Council member Eliseo Valdez Jr.

           1. Discussion with possible action on the abatement of
              graffiti and vandalism from City Parks and Public
              Property through the efforts of our COPS Program and
              Adopt a Park Program.

              Cm. Valdez said he has received calls from several people
              that live around some of those parks.  He mentioned that
              he has received positive comments about the maintenance
              and upkeep of the parks, but the constituents are very
              concerned about the graffiti at the parks and are
              concerned about the youths that hang around the parks.
              He added that the COPS program has been implemented in
              some neighborhoods and some of these parks fall within
              the umbrella of some of these COPS Programs.  Part of
              what we are trying to do is encourage the Police to get
              involved in the community, walk the neighborhoods, and
              what a better way than getting involved with the youth in
              the neighborhoods and walking around the parks and
              getting to know these youth in the neighborhood and build
              positive relationships with the kids.  He would like to
              see them involved with the youth in the neighborhood to
              make sure that those parks are maintained a safe haven
              for the youth of Laredo.

              Mr. Sergio Tijerina and Mr. Polo Garibay from Parks and
              Recreation reported that in terms of the COPS Program
              it's been a very positive program.  They have been
              working together with the Police Department.  The
              officers have interaction with the residents of that
              neighborhood so that builds more unity between the
              officers and the neighbors from that neighborhood.  He
              also pointed that the events held throughout the year
              such a Thanksgiving feast or different types of events
              help in deterring vandalism from occurring in our parks.

              He also spoke of Adopt-a-Park Program that the department
              has started.  They are taking different approaches with
              this program.  They are trying to assess the needs of
              every park and sending the list of the needs of every
              park to the persons willing to adopt that park because a
              park well maintained and groomed will lead to less
              vandalism occurring because of the high persons going in
              and out of the park.

              Cw. Moreno suggested that once they have most of the
              parks adopted that they recognize those organizations
              that have adopted a park at a council meeting.

              Frustoso San Miguel, Deputy Chief, said they are going to
              give Mr. Garibay, Mr. Tijerina, and the Parks Department
              100% and work together.  They will work something out
              with the officers and get out to the parks and interact
              with the public in the parks.

              Mr. Tijerina said that one of the recommendations of the
              Parks Advisory Board was to do some public announcements
              which they will start within the next few months.  Dr.
              Yoder has contacted the TV station in formulating those
              PSA's, they will involve every Park Boardmember and
              hopefully the City Councilmembers and getting kids
              together and deterring crime and vandalism in our parks.
              They are also generating signs that will mention "it is
              your park keep it clean" with phone numbers of the
              office.

              Cm. Galo asked that on those signs being generated, that
              they also include the police phone number also.

        D. Request by Council member Joe A. Guerra

           1. Discussion of water main rupture on February 5, 1999,
              which occurred in north Laredo, with possible action.

              Fernando Roman, Utilities Director, reported that on
              February 5th they had a company working on behalf of the
              Chevron Gas Station on Del Mar and IH-35.  This company
              is called Giles Engineering and Associates and it's a
              geotechnical company, and he presumes they are doing
              environmental work.  This company did not contact the
              Utilities Department for a line location.  He thinks the
              assumption they made is that because the location where
              they were going to drill is between the McDonalds
              driveway and the Conoco Station, that maybe nothing
              existed there.  They hit the line and as a consequence
              they lost about 750,000 gallons of water from the
              McPherson tank with a retail cost about $1,000.  With
              repairs and all about it's about $3,300.  They have
              prepared a bill which they are going send via fax
              tomorrow.  They have been receptive to the reparation.

              Larry Dovalina, Assistant City Manager, said there is a
              state law that passed last year called, "One Call Texas"
              and what the law states if you don't call for a "locate"
              whatever damage you do, you are responsible for it under
              state law.

           2. Request by Judge Raul Vasquez and Ms. Carol Sherwood
              concerning the Children's Coalition, with possible
              action.

              Motion to table to the next council meeting.

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

           3. Status report on the City Council's 76th State
              Legislative Agenda, with possible action.

              Mayor Flores said there is some information that staff
              has prepared as well as information from both Mr. Mario
              Martinez and Mrs. Andrea McWilliam the Legislative
              Consultants.   She added they met with each Councilmember
              and are preparing something based on the meetings that
              they had with them.

              Larry Dovalina, Assistant City Manager, explained that
              they have a staff committee that is working on this
              issue and that they will be meeting tomorrow.  They have
              reviewed the Bills that have been filed up to now, and
              have assigned them to each one of the staff's persons
              expertise.  They are setting out a general format where
              they are going to set out Bills which we would want
              introduced, and bills that we would be definitely
              against, and set out a platform with general categories
              and bring the whole package on the first meeting of
              March.  They will then forward that packet to both our
              consultants so that they have a clear cut idea of who
              they would call whenever there is an immediate need for
              action, but also getting a clear sense of direction from
              the City Council as to what areas they want monitored.

              Mayor Flores asked that when that list is ready or when
              there are items to be addressed, either in hearings or
              with legislators, that Councilmembers sign themselves
              so that they all take turns going to Austin to testify or
              to speak on such items.

              Mr. Dovalina said he has discussed this particular issue
              with the consultants and wants to make sure that they let
              us know so that they can inform the council of when those
              situations come up so we can have an opportunity to
              present our side of our story.

              Cm. Guerra pointed that time is of essence because the
              session has started and will end on May 31st.

              Mr. Dovalina said that the last day to file a Bill is
              March 30th.

              Cm. Valdez commended staff for making a wise decision and
              hiring the two legislative representatives at the state
              level because they have done a tremendous job as far as
              keeping council informed about Senate Bills, House Bills,
              and committee, etc.

              Cm. Guerra requested a report from staff at our next
              council meeting on this matter.

              Mayor Flores said they have been holding meetings in
              reference to the largest issue for us, which is
              transportation and infrastructure.  They have met all
              summer and have discussed those issues and that several
              legislators have come to our meetings.  They have also
              spoken of a campus for LCC and a job training facility in
              south Laredo.

              Cm. Guerra expressed that of utmost importance is the
              water issue, because if it doesn't rain no matter how
              much planning is done we won't be able to survive long
              without any water.

        E. Request by Council member Mario G. Alvarado

           1. Request for update from staff on the Santa Maria
              resurfacing project, with possible action.

              Rogelio Rivera, City Engineer, reported that they are
              scheduling the opening/receiving of bids for March 2nd
              and will try to award it on March 15th.  They had a pre-
              bid meeting today.  He added that there is work still
              being done on IH-35, but they are hoping that by the time
              it is awarded and start construction that some of these
              projects may be finished by TxDot.

              He explained that Orilla should be done by the end of
              April.

              Cm. Alvarado questioned, when can we expect work actually
              on the Santa Maria resurfacing?

              Mr. Rivera said if they award on the 15th probably on the
              following two months they will have contracts ready.  He
              said that by the beginning of April they should be
              getting ready to start and hopefully TxDot will be out of
              IH-35.

              Cm. Guerra said he had a request from a local vehicle
              escort company, Roadrunner Vehicle Escort Service, who
              are asking permission to conduct their business over
              Interstate 35 in view of the fact that Santa Maria is
              under construction and in view of the fact that some of
              the access roads along the interstate are also under
              construction.  He asked them to put this request in the
              form of a letter which they did and he wants staff to
              communicate with this company.  He submitted a letter
              from Roadrunner Vehicle Escort Service, Inc., signed by
              Mr. Goodman to be part of the record.

              The letter reads as follows:

              "Dear Joe,

              Could you please ask permission for oversize/overweight
              loads use at IH-35 during the next few weeks as the
              access roads are all under construction.  I personally
              would call the Traffic Safety Department but you know the
              hassle that fired there."

              Mayor Flores said they will look into it.

           2. Request for traffic study for traffic control signal-
              ization at the intersection of Big Bend Boulevard and
              FM1472, with possible action.

              Cm. Alvarado said this intersection is the next major
              intersection pass Rancho Viejo Road and the area is now
              populated with a lot of clustered housing.  He requested
              that this particular intersection be placed on the list
              for traffic control signalization consideration.

              Motion to include on the list, for a traffic study for
              traffic control signalization the intersection of Big
              Bend Boulevard and FM 1472.

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


 XII. PUBLIC HEARINGS

    35.  Public hearing amending the City of Laredo's 1998-1999 Annual
         Budget to reflect an increase of $23,373 in transportation
         planning funds. The appropriation of $154,208 comes from the
         Transportation Equity Act for the 21st Century.

                    INTRODUCTION OF AN ORDINANCE
         Ordinance amending the City of Laredo's 1998-1999 Annual
         Budget to reflect an increase of $23,373 in transportation
         planning funds. The appropriation of $154,208 comes from the
         Transportation Equity Act for the 21st Century.

         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce.

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

         Ordinance Introduction: City Council

         Note:  (Cm. Guerra left at 7:30 p.m.)

    36.  Public hearing deleting Article II, of the Laredo Land
         Development Code and amending Chapter 25, Article I, of the
         Code of Ordinance of the City of Laredo, entitled plumbing, by
         Adopting the 1997 Edition of the Standard Plumbing Code, the
         Texas State Board of Plumbing Examiners License Law, The Texas
         State Board Plumbing Examiners Rules, Regulating and
         controlling the design, construction, quality of materials,
         erection, installation, alteration, repair, location,
         relocation, replacement addition to, use or maintenance of
         plumbing system; providing for issues permits, and collection
         of fees, therefore; repealing all other ordinances and parts
         of ordinances in conflict herewith; providing for publication
         and effective date.

                    INTRODUCTION OF AN ORDINANCE
         Ordinance deleting Article II, of the Laredo Land Development
         Code and amending Chapter 25, Article I, of the Code of
         Ordinance of the City of Laredo, entitled plumbing, by
         Adopting the 1997 Edition of the Standard Plumbing Code, the
         Texas State Board of Plumbing Examiners License Law, The Texas
         State Board Plumbing Examiners Rules, Regulating and
         controlling the design, construction, quality on materials,
         erection, installation, alteration, repair, location,
         relocation, replacement addition to, use or maintenance of
         plumbing system; providing for issues permits, and collection
         of fees, therefore; repealing all other ordinances and parts
         of ordinances in conflict herewith; providing for publication
         and effective date.

         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce.

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

         Ordinance Introduction:  City Council

    37.  Public hearing approving an amendment to the contract with the
         Texas Department of Health and budget in the amount of
         $285,938 for the HIV/STD Ryan White Care Consortium Project of
         the City of Laredo Health Department for the period beginning
         April 1, 1999, through March 31, 2000.

                    INTRODUCTION OF AN ORDINANCE
         Ordinance approving an amendment to the contract with the
         Texas Department of Health and budget in the amount of
         $285,938 for the HIV/STD Ryan White Care Consortium Project of
         the City of Laredo Health Department for the period beginning
         April 1, 1999, through March 31, 2000.

         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce.

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

         Ordinance Introduction:  City Council

    38.  Public hearing amending the City of Laredo's 1998-1999 annual
         budget in the amount of $50,392 for funding of the Multi-
         Agency Major Organization Investigation Task Force for the
         period of January 1, 1999 through December 31, 1999.

                    INTRODUCTION OF AN ORDINANCE
         Ordinance amending the City of Laredo's 1998-1999 annual
         budget in the amount of $50,392 for funding of the Multi-
         Agency Major Organization Investigation Task Force for the
         period of January 1, 1999 through December 31, 1999.

         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce.

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

         Ordinance Introduction: City Council

    39.  Public hearing concerning application by Killam Oil Co.,
         amending the Zoning Ordinance (Map) of the City of Laredo
         by rezoning Lots 1, 2 and 3, Block 1, Ponderosa Industrial
         Park, Unit IV, located at the north end of OWK Dr., from
         R-1 (Single Family Residential District) to M-1 (Light
         Manufacturing District). The Planning and Zoning
         Commission recommends approval of this item.

                       INTRODUCTION OF AN ORDINANCE
         Ordinance amending the Zoning Ordinance (Map) of the
         City of Laredo by rezoning Lots 1, 2 and 3, Block 1,
         Ponderosa Industrial Park, Unit IV, located at the
         north end of OWK Dr., from R-1 (Single Family
         Residential District) to M-1 (Light Manufacturing
         District).

         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce.

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

         Ordinance Introduction:  Cm. Bruni

    40.  Public hearing concerning application by Laredo Candle Co.
         and Ricardo Garcia Jr., amending the Zoning Ordinance (Map)
         of the City of Laredo by rezoning Lots 1 and 2, Block 1,
         Ponderosa Industrial Park, Unit V, located at the north
         end of Tex-Mex Dr., from R-1 (Single Family Residential
         District) to M-1 (Light Manufacturing District). The
         Planning and Zoning Commission recommends approval of
         this item.

                    INTRODUCTION OF AN ORDINANCE
         Ordinance amending the Zoning Ordinance (Map) of the
         City of Laredo by rezoning Lots 1 and 2, Block 1,
         Ponderosa Industrial Park, Unit V, located at the
         north end of Tex-Mex Dr., from R-1 (Single Family
         Residential District) to M-1 (Light Manufacturing
         District).

         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce.

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

         Ordinance Introduction:  Cm. Bruni

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

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

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

    41. Consideration to conduct public hearings to solicit comments on
        a proposal to realign the #3 Convent bus route to serve the new
        Mercy Hospital complex and to permanently implement the #6
        Cedar bus re-route instead of restoring to its original
        existing alignment before the TxDOT Saunders Street
        Reconstruction project due to new ridership that has been
        established as a result of the re-route.

        Motion to approve.

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

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

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

XIII. ADJOURNMENT

        Motion to adjourn.              Adjournment time:  8:40 p.m.

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

I hereby certify that the above minutes contained in pages 01 to 40 are
true, complete, and correct proceedings of the City Council Meeting
held on the 16th day of February, 1999.  A certified copy is on file at
the City Secretary's Office.


                                          _________________________
                                            Gustavo Guevara, Jr.
                                            City Secretary