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


M99-R-06                      M I N U T E S           FEBRUARY 22, 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
      Consuelo "Chelo" Montalvo,       Councilmember, District VIII
      Gustavo Guevara, Jr.,            City Secretary
      Florencio Pena, III              City Manager
      Jaime L. Flores,                 City Attorney

      Absences:

      Motion to excuse Cm. Alvarado.

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

      Mayor Flores opened the floor commending everyone that
      participated in the Washington's Birthday Festivities.

      Note:
      At this point Cw. Montalvo asked to move up item #20(C)1.


  IV. MINUTES

     1. City Council Workshop (Torres), January 15, 1999
        City Council Workshop (Fidenor), January 18, 1999

        Motion to approve.

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

   V. INTRODUCTORY ORDINANCE

     2. Authorizing the City Manager to execute a lease with Laredo
        National Bank for approximately 5,632 square feet constituting
        Building No. 146 located at 4401 Maher Avenue and situated on
        an approximate 21,217 square foot tract of land at the Laredo
        International Airport.
        1. The lease term is for ten (10) years commencing on July 1,
           1998 and ending on June 30, 2008 and may be extended for
           three (3) consecutive terms of (5) years each ending on
           June 30, 2023.
        2. The initial monthly rent shall be $500.00 commencing on July
           1, 1998 and ending June 30, 2000 and increased to $750.00
           per month for the subsequent two years ending June 30, 2002
           and increased to $950.00 per month for the subsequent two
           years until June 20, 2004 and effective July 1, 2004 the
           monthly rent shall be $950.00 plus annual Consumer Price
           Index rent adjustment. The monthly rent effective
           July 1, 2006 and July 2, 2016 shall be adjusted by fair
           market rent appraisal. The Laredo National Bank will
           initially make the approximate $33,146.00 in improvements to
           the lease premises.

        Ordinance Introduction:  Cm. Bruni

     3. 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.

        Ordinance Introduction:  City Council

     4. Rescinding Ordinance No. 99-O-006 and granting a license to
        Southwestern Bell Telephone Company, to erect, construct,
        maintain and operate a wire telecommunications system for a
        term of four (4) years with one (1), four (4) year renewal
        option period pursuant to the City of Laredo's Wire
        Telecommunications System registration and licensing ordinance
        of 1998 #98-O-353; and providing for an 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-053,
        #99-O-054, #99-O-056, #99-O-057, #99-O-058, #99-O-059,
        #99-O-060, #99-O-061, #99-O-062, and #99-O-063.

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

     5. 99-O-053  Ordinance 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.  (City Council)

                  Motion to approve Ordinance #99-R-053.

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

        99-0-054  Ordinance 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.  (City Council)

                  Motion to approve Ordinance #99-R-054.

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

        99-O-056  Ordinance 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
                  and 45 MPH from that point to State Highway 359, as
                  defined in TXDOT Control Section Map 0086-14.
                  (Louis H. Bruni)

                  Motion to approve Ordinance #99-R-056.

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

        99-O-057  Ordinance 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.
                  (City Council)

                  Motion to approve Ordinance #99-R-057.

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

        99-O-058  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.  (City Council)

                  Motion to approve Ordinance #99-R-058.

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

        99-O-059  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.  (City Council)

                  Motion to approve Ordinance #99-R-059.

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

        99-O-060  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.  (City Council)

                  Motion to approve Ordinance #99-R-060.

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

        99-O-061  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.  (City Council)

                  Motion to approve Ordinance #99-R-061.

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

        99-O-062  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).  (Louis H. Bruni)

                  Motion to approve Ordinance #99-R-062.

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

        99-O-063  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).  (Louis H. Bruni)

                  Motion to approve Ordinance #99-R-063.

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


 VII. RESOLUTIONS

     6. 99-R-015  Requesting assistance from Texas and United States
                  Congressional Representatives to take action
                  regarding the downturn of the Oil and Gas Industry in
                  Webb and surrounding counties and to develop a
                  program to address this crisis.

                  Motion to approve Resolution #99-R-015.

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

     7. 99-R-025  Authorizing the City Manager to sign a Memo of
                  Agreement between Webb County and the City of Laredo
                  to fund a Rain Enhancement Program.

                  Motion to approve Resolution #99-R-025.

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

     8. 99-R-026  Authorizing the City Manager to sign an agreement
                  between the City of Laredo and the Winter Garden
                  Ground Water Conservation District for a Rain
                  Enhancement Program to commence on May 1, 1999.

                  Motion to approve Resolution #99-R-026.

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

     9. 99-R-027  Authorizing the City Manager to sign a Memo of
                  Agreement between local land owners and the City of
                  Laredo to fund a Rain Enhancement program.

                  Motion to approve Resolution #99-R-027.

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

    10. 99-R-028  Accepting a grant from the South Texas Development
                  Council of Governments in the amount of $25,000.00
                  with the City designating $100,000.00 in matching
                  funds and/or in-kind services for a total of
                  $125,000.00 to construct a permanent household
                  hazardous waste collection facility.

                  Motion to approve Resolution #99-R-028.

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

    11. 99-R-029  Authorizing the City Manager to accept a grant from
                  the Office of the National Drug Control Policy
                  (HIDTA) High Intensity Drug Trafficking Area in the
                  amount of $411,598 to fund the Multi-Agency Financial
                  Disruption Task Force. The National Drug Control
                  Policy (HIDTA) High Intensity Drug Trafficking Area
                  is funding the operation at no cost to the City.
                  Funds will be used to pay for personnel salaries,
                  travel and operational expenses beginning January 1,
                  1999 through December 31, 1999.

                  Motion to approve Resolution #99-R-029.

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


VIII.   MOTIONS

    12. Consideration of an award of contract 99-039 to the LOW BIDDER,
        Dell Computer Corporation, Round Rock, Texas, in the amount of
        $104,541.24, for the purchase of sixty eight personal
        computers. Delivery of the computers is expected within thirty
        days.

        Motion to approve.

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

    13. Consideration to authorize the purchase of two fire pumper
        trucks, through the Houston Galveston Area Council of
        Governments (HGAC) - Cooperative Purchasing Program, in the
        amount of $580,288.00. One truck will be a replacement for a
        1974 American LaFrance truck currently assigned to Station #2
        and the other truck will be assigned to Station #11. Delivery
        of these pumper trucks is expected within six to eight months.

        Motion to approve.

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

    14. Consideration to authorize the purchase of a combination
        sewer/catch basin cleaner truck for the Engineering Department
        N.P.D.E.S. Division, through the Houston Galveston Area Council
        of Governments (HGAC) - Cooperative Purchasing Program, in the
        amount of $171,048.49. This truck will be used to clean the
        storm water inlets and manholes in accordance to EPA
        requirements. The truck will be leased purchased on a three
        year lease purchase contract. Financing will be provided by
        The Associates, Dallas, Texas. Delivery of this truck is
        expected within thirty days.

        Motion to approve.

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

    15. Consideration to award a thirty-six month contract in the
        estimated amount of $35,754.00, to the SECOND LOWEST PROPOSAL,
        Office Communications Systems, Laredo, Texas, for providing a
        copier to use by all City Departments. This contract is 47%
        less than the previous.

        Motion to approve.

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

    16. Consideration of a request by Mayor Elizabeth G. "Betty" Flores
        and City Council Members of information on the impact of
        implementing an additional $5,000 exemption to the existing
        over 65 exemption and/or granting a $5,000 homestead exemption
        to all home owners or mobile home owners in comparison to other
        cities in the state of Texas. The City of Laredo does not offer
        the homestead exemption at the present time, but the City of
        Laredo does offer $25,000 exemption for home owners over 65
        years of age.

        Phyllis Colon, Tax Assessor Collector, reported that our
        current $25,000 exemption for home owners over 65 years old was
        increased from $20,000 four years ago. She explained that for a
        $25,000 home or less the tax owed is zero, and on a $50,000
        home the tax due, at the present rate, is $134.99.  And, if the
        exemption increases to $30,000 the tax due would be $109.99.
        If the exemption goes up on each home, the value would drop;
        therefore, the amount of money will go up.

        Ms. Colon informed Council that the total appraised value of
        all property in the City is $4,765,987,974; however, government
        owned properties, churches, properties exempt by state law,
        etc. are exempted.  Many people over 65 years old own homes of
        less than $25,000, but we only exempt up to the value of the
        property.  There are currently 6,000 families on the over 65
        years old exemption that have a $25,000 property valuation, and
        approximately $775,000 have been lost here.  So, granting an
        additional $5,000 exemption will result in approximately
        $877,000; that is about $100,000 more.  The higher the
        exemption, the higher the number of exempt properties.
        However, we can look at the growth of our tax base.  On the
        last time that the exemption was increased, we didn't need to
        adjust the rate because the overall growth of the tax base was
        more than what we took off.

        Mayor Flores thinks that the City of Laredo can absorb the
        additional $100,000.  This will allow citizens over 65 years
        old, usually on a fixed income, to keep some additional money
        in their pockets.

        Council agreed to entertain only the exemption increase from
        $25,000 to $30,000 for citizens over 65; therefore, the $5,000
        homestead exemption will not be considered at this time.

        Motion to approve.

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


  IX.  STAFF REPORTS

    17. Presentation of the 1997-98 Comprehensive Annual Financial
        Report (CAFR) prepared by the City of Laredo's Financial
        Services Department and audited by the independent audit firm
        of Baum & Mejia CPA's.

        Clayton Baum and Raul Garza, from Baum & Mejia CPA's, came
        before Council.  Mr. Garza gave a report to Council.

        Cm. Guerra reported that the Audit Committee held a meeting,
        earlier this afternoon, with the auditors from Baum & Mejia who
        answered the questions to the Committee's satisfaction.  Cw.
        Moreno was the chair person, and Cm. Valdez and himself
        attended the meeting.

        Cw. Moreno informed that issues pertaining to the increasing
        unfunded liability and the retirement plan were discussed.
        Another issue discussed was the review valuations of the
        general fixed assets in which the auditors explained that an
        adjustment needs to be made.  On another issue, Cw. Moreno
        wants to hear from staff within 1-2 months on the repeated and
        current management points because, although, the repeated
        points may not be significant in the total picture, she feels
        that they need to be addressed.

        Conrado Hein, Finance Director, said that he has had extensive
        discussions with Mr. Baum regarding the repeated and current
        management points.  Mr. Hein believes that because the City has
        1800 to 2000 employees there is room for; some things are
        unavoidable.

        Mr. Baum replied that during the past year, his firm found
        significant improvements and efforts made by staff.  In fact,
        this was mentioned on their report.

        Florencio Pena, City Manager, stated that the auditors have an
        unqualified statement on the City's financial conditions as
        well as on the adequacy of the controls that the City has in
        place.

        Mr. Baum concluded by stating that the three audit reports are
        unqualified opinions.  The best opinion that any outside
        auditor can give in the management letter is an attempt to
        point out some areas that might need some improvements.
        Nothing was found on the reports, financial statements, or on
        the City's internal control system that would cause the
        auditing firm to take an exception.  He added that the big
        picture is very positive.

    18. Presentation with discussion and consideration of action
        regarding the Paseo del Antiguo Laredo Pedestrian Facility
        design.

        Keith Selman, Planning Director, reported that an application
        for an enhancement grant to renovate downtown Laredo sidewalks
        and improve pedestrian accessibility was made to ISTEA.  The
        grant was awarded through TXDOT and supplemental funding for
        the project will come from CDBG.  At the present time the
        design is about wrapped up and the specs are 50% completed.

        David Sprinkle, with Sprinkle-Robey Architects from San
        Antonio and in association with Sherffey Engineering, showed
        the design and gave a detailed presentation to Council.  He
        informed that the material for the sidewalks will be stained
        concrete.

    19. Status report on the City of Laredo's State Legislative Plan,
        with possible action.

        Larry Dovalina, Assistant City Manager, reported that in order
        to procure a point of contact between our lobbyists and staff,
        staff members formed a committee to monitor bills on particular
        areas.  In this way, staff will quickly contact Council on
        issues of particular importance. He mentioned that we have been
        getting all sorts of bills since late November.  The bills were
        distributed among staff members, and then bill categories in
        which staff members indicate if we should support a bill,
        endorse a bill, whether we are neutral on a position or have no
        position, or if we should oppose a bill, were set up.  A report
        on these categories was provided to Council for their review.
        And, because March 30, 1999 is the last day to file any bill,
        this item will be on the next agenda for Council's action.

        Mayor Flores wanted to know what would be next action after
        Council reviews staff members's recommendations on the bills.
        For instance, would the action be to actually go and endorse a
        bill either by letter or by presentation.  Also, the same
        question is raised for the opposition of a bill.

        Mr. Dovalina replied that in most cases, a letter with the
        legislative proposal will be written.  Then the letter will be
        given to our lobbyists, who in turn will shop our position with
        the different members who have bills impacted by whatever
        decision the council makes.  In some cases depending on the
        severity or importance of a bill, we may bring independent
        resolutions, like taking a position on a particular bill or
        asking that certain amendments be attached to certain bills,
        to be adopted by the Council.

        Mayor Flores wants Mr. Dovalina to bring a summary of the
        discussion held with Mr. Mario Martinez, as well as the
        discussion that we had with Ms. Andrea McWilliams, on the next
        time this item comes back.  She wants to make sure that there
        is some focus on the issues that are important to this Council.


   X.   COMMUNICATIONS

        a)  Cm. Bruni requested a moment of silence for Ms. Cristina
            Garcia, daughter of Mr. and Mrs. Julio Garcia, who passed
            away two days ago.


        b)  Mr. Jesus Ponce talked about a recent article on the
            newspaper regarding the colonias.

        c)  Mr. Juan Carmona wanted to know what is being done to clean
            up Jarvis Plaza; he was speaking about the retired guys
            that, at the beginning of each month, spend their checks on
            all the females.  He also asked if the City, at least once
            a month, could clean up under the overpasses.


  XI.   CITY COUNCIL PRESENTATION AND DISCUSSION

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

        A. Request by Council member Alfredo Agredano

           1. Confirmation of appointee, Nick Link to the Citizens
              Environmental Committee.

              Motion to confirm appointee, Nick Link to the Citizens
              Environmental Committee.

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

        B. Request by Council member Cecilia May Moreno

           1. Confirmation of appointee, Belinda Lozano to the
              Citizens Environmental Committee.

              Motion to confirm appointee, Belinda Lozano to the
              Citizens Environmental Committee.

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

        C. Request by Council member Consuelo "Chelo" Montalvo

           1. Presentation by Sharon Cruz, Caminos Del Rio, on proposed
              geological study, with possible action.

              Sharon Cruz, from Caminos Del Rio, stated that it is very
              important for the City of Laredo to get into the birding
              enterprise just because it is there, it is available and
              it is a money generator. In order to move ahead with this
              project, the U.S. Geological Survey needs to perform
              birding studies.  The nesting surveys need to take place
              in the beginning of March in order to identify which
              birds nest in this area, which birds live here year
              round, and which birds visit here.  This will provide us
              information on what we will be promoting.

              She added that $10,000 are needed for this year's study,
              and the quicker the study is done, the quicker we will
              get into the birding enterprise.  The sites that have
              been pinpointed for the study include the gravel pits
              area out on the river; the lake area; Zacate Creek, and
              Manadas Creek.  The first two areas can be accessed more
              rapidly than the creek areas, but the creek areas are
              possible park areas that the City may look into.
              Providing recommendations and ideas to Council of what
              can be done to get the area ready for birding is part of
              the study.

              Don Railey, Laredo Convention and Visitors Bureau (LCVB)
              Director, supports the birding industry because it can be
              used as an attraction to bring more visitors to this part
              of the State.  He informed Council that there is a line
              item in the budget identified as non-allocated funds
              that can be used for this purpose.

              Motion to approve the allocation of $10,000 for Birding
              Studies from CVB Budget to Caminos Del Rio.

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

              Note: At this point Mayor Flores requested items #2 and
                    #30 to be moved up.

           2. Status report on the proposed River Road.

              Florencio Pena, City Manager, reported that 1998 flood
              damaged the road in two specific areas. One of the areas
              is near the bend, right past the Tex-Mex railroad, where
              a sink hole was formed. There is another sink hole
              further up close to LCC.  He had a discussion with Mr.
              Oscar Garza and other members of the Border Patrol who
              indicated that plans are underway to have the Military
              repair those areas during April.  They also suggested
              that, for a more long-term solutions and/or improvements
              to that road, we may need to meet with officials in
              Washington, D.C.

           3. Presentation by Jesus Hernandez on the status of
              veteran's meals from The Laredo Regional Food Bank, with
              possible action.

              Motion to table this item for the next meeting.

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


 XII.   PUBLIC HEARINGS

    21. Public hearing concerning application by Felix De Leon amending
        the Zoning Ordinance (Map) of the City of Laredo by rezoning
        Lots 5, 6, and 7, Block 1005, Eastern Division, located at 1800
        Ligarde St., from B-1 (Limited Business District) to B-3
        (Community Business District).  The Planning and Zoning
        Commission recommends approval of this item.

                      INTRODUCTION OF AN ORDINANCE
        Amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning Lots 5, 6, and 7, Block 1005, Eastern Division,
        located at 1800 Ligarde St., from B-1 (Limited Business
        District) to B-3 (Community Business 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. Agredano
        Second:  Cm. Bruni
        For:  7                        Against:  0         Abstain: 0

        Ordinance Introduction:  Cm. Agredano

    22. Public hearing concerning application by Paul Young, amending
        the Zoning Ordinance (Map) of the City of Laredo by rezoning
        2.730 acres, as further described by metes and bounds, located
        south of SH 59 within the Paul Young Auto Mall, from R-1
        (Single Family Residential District) to B-4 (Highway Commercial
        District). The Planning and Zoning Commission recommends
        approval of this item.

                      INTRODUCTION OF AN ORDINANCE
        Amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning 2.730 acres, as further described by metes and bounds
        located south of SH 59 within the Paul Young Auto Mall, from
        R-1 (Single Family Residential District) to B-4 (Highway
        Commercial District).

        Motion to open the public hearing.

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

        Ron Whitehawk, on behalf of Paul Young, spoke in favor to add
        to existing part of the dealership.

        Motion to close the public hearing and introduce.

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

        Ordinance Introduction:  Cm. Bruni

    23. Public hearing concerning application by Paul Young amending
        the Zoning Ordinance (Map) of the City of Laredo by rezoning
        102.319 acres, as further described by metes and bounds,
        located south of SH 59, also known as the Zuniga and Young
        Big O Ranch, from R-1 (Single Family Residential District) to
        AG (Agricultural District). The Planning and Zoning Commission
        recommends approval of this item.

                      INTRODUCTION OF AN ORDINANCE
        Amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning 102.319 acres, as further described by metes and
        bounds, located south of SH 59, also known as the Zuniga and
        Young Big O Ranch, from R-1 (Single Family Residential
        District) to AG (Agricultural District).

        Motion to open the public hearing.

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

        Ron Whitehawk, on behalf of Paul Young and Mr. Oscar Zuniga who
        have family ties between them, spoke in favor of the AG zone
        change which would be developed.

        Motion to close the public hearing; concur with the Planning
        and Zoning Department to approve the zone change; and introduce
        the ordinance.

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

        Ordinance Introduction:  Cm. Bruni

    24. Public hearing concerning application by Ricardo H. Alvarez,
        amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning Lot 3, Block 600, Eastern Division, located at 1215
        Hendricks Ave., from B-1 (Limited Business District) to R-3
        (Mixed Residential District). The Planning and Zoning
        Commission recommends approval of this item.

                    INTRODUCTION OF AN ORDINANCE
        Amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning Lot 3, Block 600, Eastern Division, located at 1215
        Hendricks Ave., from B-1 (Limited Business District) to R-3
        (Mixed Residential 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. Agredano
        Second:  Cm. Galo
        For:  7                        Against:  0         Abstain: 0

        Ordinance Introduction:  Cm. Galo

    25. Public hearing concerning application by Blackstone Dilworth,
        amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning 60.25 acres as further described by metes and bounds,
        located on the north side of the Bob Bullock Loop, between
        Grand Central Blvd. and McPherson Rd., from AG (Agricultural
        District) to B-4 (Highway Commercial District). The Planning
        and Zoning Commission recommends approval of this item.


                    INTRODUCTION OF AN ORDINANCE
        Amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning 60.25 acres as further described by metes and bounds,
        located on the north side of the Bob Bullock Loop, between
        Grand Central Blvd. and McPherson Rd., from AG (Agricultural
        District) to B-4 (Highway Commercial District).

        Motion to open the public hearing.

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

        Mr. Harry Jewitt, representing the Dilworth family, spoke in
        favor of the zone change.

        Motion to close the public hearing and introduce.

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

        Ordinance Introduction:  Cm. Guerra

    26. Public hearing concerning application by Cesar A. Avendano,
        amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning Lot 2 and the south 23.15 ft. of Lot 4, Block 720,
        Western Division, located at 3401 Camp Ave., from AG
        (Agricultural District) to M-1 (Light Manufacturing District).
        The Planning and Zoning Commission recommends approval of this
        item.

                      INTRODUCTION OF AN ORDINANCE
        Amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning Lot 2 and the south 23.15 ft of Lot 4, Block 720,
        Western Division, located at 3401 Camp Ave., from AG
        (Agricultural District) to M-1 (Light Manufacturing District).

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

        Ordinance Introduction:  City Council

    27. Public hearing concerning application by Laredo Distribution
        Center, Inc. and Jorge Vasquez, President amending the Zoning
        Ordinance (Map) of the City of Laredo by rezoning 139.6458
        acres as further described by metes and bounds located at the
        northwest corner of FM 3464 and FM 1472, 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
        Amending the Zoning Ordinance (Map) of the City of Laredo by
        rezoning 139.6458 acres as further described by metes and
        bounds located at the northwest corner of FM 3464 and FM 1472,
        from R-1 (Single Family Residential District) to M-1 (Light
        Manufacturing District).

        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 table this item until
        the next available meeting.

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

    28. Public hearing amending the City of Laredo's 1998-1999 Annual
        Budget in the amount of $411,598 to fund the Financial
        Disruption Task Force. The National Drug Control Policy (HIDTA)
        High Intensity Drug Trafficking Area is funding the operation
        at no cost to the City.  Funds will be used to pay for
        personnel salaries, travel and operational expenses beginning
        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 $411,598 to fund the Financial Disruption Task
        Force. The National Drug Control Policy (HIDTA) High Intensity
        Drug Trafficking Area is funding the operation at no cost to
        the City.  Funds will be used to pay for personnel salaries,
        travel and operational expenses beginning January 1, 1999
        through December 31, 1999.

        Motion to open the public hearing.

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

        There was no public input.

        Motion to close the public hearing and introduce.

        Moved :  Cm. Galo
        Second:  Cm. Bruni
        For:  9                        Against:  0         Abstain: 0

        Ordinance Introduction:  City Council

    29. Public hearing amending the City of Laredo's 1998-1999 annual
        budget in the amount of $70,105 for the Multi-Agency narcotic
        Task Force. Funding is available from the opening balance of
        the Narcotic Task Force Division and will be used to pay
        overtime for the second quarter of this fiscal year. Grant
        period is from June 1, 1998 through May 31, 1999.


                      INTRODUCTION OF AN ORDINANCE
        Ordinance amending the City of Laredo's 1998-1999 annual budget
        in the amount of $70,105 for the Multi-Agency narcotic Task
        Force. Funding is available from the opening balance of the
        Narcotic Task Force Division and will be used to pay overtime
        for the second quarter of this fiscal year. Grant period is
        from June 1, 1998 through May 31, 1999.

        Motion to open the public hearing.

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

        There was no public input.

        Motion to close the public hearing and introduce.

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

        Ordinance Introduction:  City Council

    30. Public hearing and consideration of an appeal of an order of
        the Historic/Landmark Board regarding demolition of all
        structures except for the carriage house and installation of
        parking lot and landscaping at:
        Location: Lots 4, 5, 6, and 7, Block 44WD
        Commonly known as:  802 Hidalgo, 804 Hidalgo, 805 Farragut
        Petitioner:  Laredo National Bank.
        Old Mercado Historic District.

        Motion to open the public hearing.

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

        Nina Nixon made the presentation before the Council.  On
        April 1998, Mr. J.C. Trevino, Attorney representing Laredo
        National Bank (LNB) stated that the bank was going to close on
        the property.  The Historic District/Landmarks Board advised
        him that the property was within the Old Mercado Historic
        District, and that such building was historic.  He was also
        advised about the carriage house located on that site; however,
        on the summer of 1998, LNB demolished the back section of 805
        Farragut without the Historic District review and without a
        demolition permit.  The Building Department placed a stop work
        order on August 6, 1998, and then the case came for the
        Historic District/Landmark Board on November 19, 1998.  At that
        time the board did approved partially LNB's request.  The board
        gave its approval to demolish a modern warehouse structure at
        the corner of 802 Hidalgo.  In addition, the board approved the
        demolition of a late Victorian structure located at 804
        Hidalgo, that due to its modification during the 1970's, lost
        its historic integrity.  But the board denied the demolition of
        the structure located at 805 Farragut, which includes a late
        Victorian transitional house with its perimeter wall, almost
        100 years old, and its carriage house. However, on December 16,
        1998, LNB demolished a large section of the historic wall
        without the required permit and violating the Historic Code of
        Ordinance.

        The bank is appealing the order of the Historic Board to
        demolish the property and to preserve the carriage house only.
        The bank indicates that because repairs were made to the
        property between 1916 and 1925, the property is less
        significant; on the contrary, the board considers the changes
        to be historic.  The two levels of significance are either
        architectural or historic.  And based on its historic
        significance, this property may be eligible for the National
        Register of Historic Places because it served as the residence
        of Dr. Juan F. De La Garza who served as Mayor of Nuevo Laredo
        for over 9 years.  Around the turn of the Century, this man was
        a prominent, devoted civic leader, and very active in the
        medical community.  He was a reformer in Nuevo Laredo who
        migrated during the Mexican Revolution.

        Jose Trevino, III, Attorney representing LNB, explained that
        the perimeter wall was already leaning against one of the
        structures approved to be demolished.  When the contractor was
        working on that structure, the wall fell down; thus it was done
        unintentionally.  Regarding the back part of the building that
        was demolished, he stated that Ms. Mendez had pointed that it
        was not part of the original building and it could be
        demolished.

        Mr. Trevino emphasized that this is an appeal for the Historic
        Landmark's decision to deny the demolition of this building.
        Even though the building is listed as having historic
        significance, it is not designated as a landmark, yet its
        primary significance is that it is old.  He pointed that the
        building has many interior and exterior deficiencies; in fact,
        the City's building inspector reported that he would not
        approve any renovation unless these items are totally cured.
        It has been estimated that it would cost approximately $250,000
        to bring the building back to standards.  Although cost alone
        shouldn't be an issue on whether or not granting a demolition
        permit on a building that may be considered as historical
        significance, we need to consider everything else.  The
        building was vacant for a long time, and it even had a fire. It
        has major foundation and roof problems among other
        deficiencies.  It has also been a haven for vagrants, and
        lately served as a bar.  The building produces conditions that
        are not in the best interest to the health, safety, or welfare
        of the citizens of Laredo.

        He added that LNB's plans for demolishing the building will
        enhance the property around it.  The bank proposes to save an
        oak tree that is damaging the building's foundation because if
        the building stays, the tree goes.  Also, the bank wants to
        bring the carriage house back to its old glory, perhaps putting
        a carriage, and turn it into an attraction.  The property will
        be used as a parking lot which will take employees's vehicles
        off the street, therefore, improving the City's parking.  If
        needed, since Dr. De La Garza was a prominent citizen of Nuevo
        Laredo, LNB may erect a nice plaque showing the historical
        value of where his residence used to be and make it part of the
        carriage house.  Finally, Mr. Trevino stated that cost wise it
        is not possible to renovate and restore that house the way the
        Landmark Board would like it to be done.  Furthermore, the
        building is unsafe and has many problems; therefore, the bank
        is asking the City Council to consider granting the demolition
        permit.

        Margarita Araiza, from Webb County Heritage Foundation,
        reported that many people come before the Landmark Board on a
        monthly basis with petitions for changes to historic
        structures, and most of these people are willing to comply with
        the urban guidelines designed for the Historic District.  Even
        though it represents a cost to these people, they do it because
        they respect and recognize the importance of maintaining the
        integrity of our Historic District.  Ms. Araiza urged Council
        not to begin a selective enforcement process of these
        guidelines by exempting certain businesses or entities from the
        same rules that everybody else in the community follows.  This
        building happens to be important both historically and
        architecturally.  She asked Council to lead by example and to
        show to the community how the they are to lead this City into
        the next century.  Are we serious about preserving our historic
        district, or are we going to sort of pick and choose depending
        on the applicant.

        Mr. Jesus Ponce spoke against the demolition of the building.

        Cm. Bruni questioned the historical value of the building and
        stated that Council should look at every appeal case on an
        individual basis.

        Motion to close the public hearing and allow the demolition of
        the building at 805 Farragut, but exclude the two-story
        carriage structure.

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

        Note:
        At this point the meeting took the regular order of business.


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. Guerra
        For:  7                         Against:  0         Abstain: 0

    31. Public hearing 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, due to
        new ridership that has been established as a result of the re-
        route, necessitated by the Saunders Street Reconstruction
        Project.

        Motion to open the public hearing.

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


                                 MOTION
        Motion 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, due to
        new ridership that has been established as a result of the re-
        route, necessitated by the Saunders Street Reconstruction
        Project.

        There was no public input.

        Motion to approve and close the public hearing.

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


 XIII.  ADJOURNMENT


        Motion to adjourn.             Adjournment time:  7:45 p.m.

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


I hereby certify that the above minutes contained in pages 01 to 25 are
true, complete, and correct proceedings of the City Council Meeting
held on the 22nd day of February, 1999.  A certified copy is on file at
the City Secretary's Office.





                                            _________________________
                                            Gustavo Guevara, Jr.
                                            City Secretary