CITY OF LAREDO
CITY COUNCIL WORKSHOP
AIRPORT CONFERENCE ROOM - 2ND FLOOR
5210 BOB BULLOCK LOOP
JANUARY 18, 1999
12:00 NOON
M99-W-03 M I N U T E S JANUARY 18, 1999
I. CALL TO ORDER
With a quorum present Mayor Elizabeth G. Flores called the
meeting to order.
II. ROLL CALL
IN ATTENDANCE:
Elizabeth G. Flores, Mayor
Alfredo G. Agredano, Councilmember, District I
John C. Galo, Councilmember, District III
Eliseo Valdez, Councilmember, District V
Mario Alvarado, Councilmember, District VII
Consuelo "Chelo" Montalvo, Councilmember, District VIII
Gustavo Guevara, Jr., City Secretary
Florencio Pena, III City Manager
Jaime L. Flores, City Attorney
ABSENCES:
Motion to excuse Cw. Moreno, Cm. Bruni and Cm. Guerra.
Moved : Cw. Montalvo
Second: Cm. Alvarado
For: 4 Against: 0 Abstain: 0
III. Presentation by FIDENOR Representatives on the proposed
railroad bridge in Northwest Laredo with possible action.
In attendance from FIDENOR were Arquitecto Antonio Fuentes
Flores, Mr. Gerald Smith, Transportation Director for the U.M.A.
Group, who is responsible for providing technical and management
assistance on transportation projects to various branches and
companies of the U.M.A. Group, and Ms. Alicia Angelica Guajardo,
Planner for FIDENOR.
Arquitecto Fuentes Flores made the presentation on the proposal
for the construction of an International Railroad Project at
Colombia, Nuevo Leon. He said that we either grow, modernize,
and be more efficient with our neighbors or we loose our
complete advantage with other border cities, with other
industrial areas, and with other manufacturing centers around
the world.
Ms. Alicia Antonieta Guadajardo made the statistical
presentation in terms of export plus presented factors that they
believe would force the project to be done.
Mr. Smith went over the feasibility study scope, the cost
estimate study, and the project cost of $148.8 Million.
Cw. Montalvo said that since she represents the downtown
district this is very important to her. This issue is of great
concern because it affects many people who live in the west
side. She said they have been working with the Union Pacific
and Tex-Mex and she has been pushing for a project such as this
because it is really needed, but she does not know if they can
work out a bond election. She said they spoke about a bond
election as an option, the fees per train are about $13.00 right
now, there are about 10,000 trains per month right now, but this
will affect Union Pacific only and it will not affect Tex-Mex.
Cm. Galo asked if on the toll charge of $13.00 (that they are
now paying) does the city benefit on that?
Mayor Flores answered, no.
Cm. Galo stated that he is looking at Alternative "A". He
informed council that a one time his wife's family and herself
were involved in the Camino Colombia Project and there is still
some pending litigation. He quoted, "there is no action now,
but in the future...I just want you all to know that I am "for"
the project, and it looks very well." He added that
Alternative "B" doesn't look like it would affect anything, but
Alternative "A" certainly would affect the American side.
Cm. Alvarado wanted to know if there has been any kind of
dialogue held with the State of Nuevo Leon as far as trying them
to help improve on some of those road conditions? How much of a
part is the State of Nuevo Leon, a part of this particular
project.
Ms. Guajardo said that in terms of the road condition, there has
been comments between the Governor of Nuevo Leon and the
Secretary of Transportation. It was agreed that they are going
to repave the whole Riverena (20 kilometers) and they are going
to expand to one additional lane and this is the first step of
this collaboration.
Cm. Alvarado asked if these road improvements are already being
worked on or are they contingent upon this particular project
going into effect. He also asked if there has been dialogue
with Tex-Mex or Union Pacific on this project.
Architecto Fuentes said the improvements will begin in two
months.
Ms. Guajardo said that Union Pacific wants to support the
Colombia Bridge which is what they have been told.
After lengthy discussion Mayor Flores explained that we need to
work and get as much information as we can to make the decision
as quickly as possible so that they know what avenues to follow.
Cw. Montalvo explained to Architecto Fuentes that in order that
council makes a decision they need to bring a written document
whereby Union Pacific states they are interested, compromised,
and committed in order that council can see if they want to be
part of this commitment because they are the ones that will be
affected.
Mr. Fuentes said they will be here on the 27th day of January.
He said he has already asked them for their support and that
probably they will bring back an answer from them before the end
of two months.
Cw. Montalvo, Cm. Alvarado, and Cm. Galo expressed that some
kind of commitment be made with Union Pacific before the City of
Laredo can join FIDENOR on the railroad bridge venture and some
kind of commitment by TFM also.
Mr. Noe Hinojosa, Financial Advisor, said that their projections
are that ultimately in the insurance of three years that growth
might go from 10-15 trains per day. If in fact that is to
occur, what are their estimates whereby that growth is going to
come from? Is it from existing crossing that now is done
through trucks thus replacing trucks by railroad crossings or is
it additional new crossing?
Mr. Fuentes said that some of their projections were that 3-5%
would transfer from trucks to train and that most of it will be
actual growth.
Mayor Flores spoke on future projections and said there are
still some issues that need to be re-examined and meetings have
to be held with our other partners that we now have in the
business.
Ms. Guajardo asked for a letter from the City of Laredo saying
that we are looking at this project as an option for development
so that they can continue.
Mayor Flores said that in order for them to move along with this
letter she would ask that a motion be entertained to direct the
City Manager to prepare some type of resolution for council to
pass at the council meeting tonight that would say that "we in
theory support the idea or concept".
Cw. Montalvo said it is very important that they take their time
in making these decisions because this is just a preliminary
presentation.
Cm. Alvarado said it was hasty to take some type of direction
without actually hearing from Union Pacific authorities and
suggested that they wait for some input from UP as far as trying
to support the idea of this option.
Mr. Gabriel Del Bosque of the Planning Department wanted to know
how would TFM come into the picutre, whether they are or are not
going to support this project. He said this project has not
been addressed and researched. If they are not going to support
it could they stop it? He wants to know what is the position
of TFM and what can they do?
Ms. Guajardo said that from the engineering point of view, they
are revieiwing the financial possibilities and are looking to
connect onto the Colombia Bridge and they will support the
alternative of the intermodal yard.
Motion to direct the City Manager to prepare a letter that
agrees to discuss this concept as an option.
Moved : Cm. Galo
Second: Cm. Agredano
For: 4 Against: 0 Abstain: 0
(Cm. Valdez left the meeting at this time and was not present
to vote.)
IV. Adjournment
Motion to adjourn.
Moved : Cm. Alvarado
Second: Cm. Agredano
For: 4 Against: 0 Abstain: 0
I hereby certify that the above minutes contained in pages 01 to 05
are true, complete, and correct proceedings of the City Council Work-
shop held on the 18th day of January, 1999. A certified copy is on
file at the City Secretary's Office.
________________________
GUSTAVO GUEVARA, JR.
CITY SECRETARY