CITY OF LAREDO
                         CITY COUNCIL MEETING
                         CITY COUNCIL CHAMBERS
                          1110 HOUSTON STREET
                          LAREDO, TEXAS 78040
                            JANUARY 18, 1999
                               5:30 P.M.

M99-R-02                      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. PLEDGE OF ALLEGIANCE

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

  III. ROLL CALL
       IN ATTENDANCE:
       Elizabeth G. Flores,             Mayor
       Alfredo Agredano,                Councilmember, District I
       Louis G. 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 Montalvo,               Councilmember, District VIII
       Gustavo Guevara, Jr.,            City Secretary
       Florencio Pe¤a, III,             City Manager
       Jaime L. Flores,                 City Attorney

       Note:  Cm. Galo left at 7:35 P.M.

   IV. MINUTES

       NONE

    V. INTRODUCTORY ORDINANCE

         1. Authorizing the City Manager to execute a lease with
            Texas/Illinois cellular limited partnership, by its general
            partner Southwestern Bell Wireless, Inc., to install,
            construct and maintain a monopole type cellular tower
            capable of supporting two (2) providers, antennas, appurtenant
            equipment and an appropriate number of equipment buildings
            on a former portion of Chihuahua Street more fully described
            on Lease Agreement.
            1) Term of the lease shall be fifteen years commencing
               on January ____, 1999 and ending January ____, 2014
               with an option for only one (1) SUCCESSIVE RENEWAL
               term of five (5) years.
            2) The annual base rent shall be $7,200.00 each year
               during the term of the lease and will be adjusted
               on each anniversary of the commencement date
               according to changes in the Consumer Price Index,
               providing for effective date.

        Motion to table.

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

     2. Authorizing the City Manager to execute a lease agreement
        between the City of Laredo and the County of Webb on behalf of
        the Laredo-Webb County Community Action Agency.
            1) Term of the lease shall be one (1) year.
            2) The annual rent payment of $1.00 per year with an automatic
               renewal option for the property legally described as
               Block 912, Western Division, City of Laredo, Webb County,
               Texas.

            Ordinance Introduction:  City Council
 
     3. Authorizing the City Manager to execute a lease agreement with
        Webb County for approximately 480 square feet constituting
        Suite #26 of Building No. S-1 located at 1718 E. Calton Road at
        the Laredo International Airport.
        1) Lease term is for one year commencing on October 1, 1998 and
           ending on September 30, 2000.
        2) Monthly rent shall be $552.00 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 City Manager to execute a lease agreement with
        Webb County for approximately 1,192 square feet constituting
        Suite #11 of Building No. S-1 located at 1718 E. Calton Road at
        the Laredo International Airport.
        1) Lease term is for one year commencing on October 1, 1998 and
           ending on September 30, 1999 and may be extended for one
           term of one year ending on September 30, 2000.
        2) Monthly rent shall be $1,992.00 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

     5. Authorizing the City Manager to execute a lease agreement with
        Webb County for approximately 300 square feet constituting
        Suite #21 of Building No. S-1 located at 1718 E. Calton Road at
        the Laredo International Airport.
        1) Lease term is for one year commencing on September 1, 1998
           and ending on August 31, 2000 and may be extended for one
           term of one year ending on August 31, 2000.
        2) Monthly rent shall be $345.00 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

     6. Closing as a public easement a 30 foot wide street out of the
        most easterly 30 feet of Lot 2, Block 1, as per the P&J
        Villarreal Plat recorded in Volume 8, Page 15, Webb County Plat
        Records, extending 300.481 feet between the south right-of-way
        line of Flecha Lane and the north boundary line of a 30 foot
        wide ingress and egress easement, however closure of said street
        is contingent upon the final approval of replat of Lot 2A, Block
        1, R.M.R. Industrial Park, Unit 4, whereby a 30 foot wide access
        easement will be platted on the most easterly portion the above
        mentioned property and providing for an effective date.

        Ordinance Introduction:  Cm. Alvarado


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

       Motion to waive the final readings of ordinances #99-O-008,
       #99-O-009, and #99-O-010.

       Moved :  Cm. Bruni
       Second:  Cm. Agredano
       For: 8                          Against:  0         Abstain:  0
 
   7. 99-O-008  Ordinance amending Article II, titled "Administration
                and Enforcement," Division 2, titled "Transportation
                and Traffic Safety Advisory Committee, of Chapter 19,
                of the City of Laredo Code of Ordinances, thereby
                 revising Section 19-51, to delete item (3) which
                 refers to advising the City Council and City Manager
                 on issues pertaining to the operation of the
                 Municipal Transit System.
                  (City Council)

                  Motion to approve Ordinance #99-O-008.

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

        99-O-009  Ordinance adding New Section 19-541 titled "Transit
                  Committee" of Article XII, titled "Transit System" of
                  Division 1, titled "Generally" of Chapter 19, of the
                  City of Laredo Code of Ordinances, thereby,
                  establishing the Transit Committee; providing for
                  three members; setting forth its duties; and providing
                  for effective date.  (City Council)

                  Motion to approve Ordinance #99-O-009.

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

        99-O-010  Ordinance amending the City of Laredo FY 1998-1999
                  Annual Budget in the amount of $5,000 for a grant from
                  the National Library of Medicine for professional
                  development and promotional printing and supplies,
                  providing for effective date.  (City Council)

                  Motion to approve Ordinance #99-O-010.

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

  VII. RESOLUTIONS

     8. 99-R-005  Authorizing the City Manager to transfer the City of
                  Laredo Application package for the Juvenile
                  Accountability Incentive Block Grant to Webb County.
                  The City of Laredo can not comply with the purpose
                  areas of the grant. The purpose of the Juvenile
                  Accountability Incentive Block Grant is to hire
                  prosecutors, judges, probation officers, etc... to
                  handle juvenile cases specifically.

                  Motion to approve Resolutions #99-R-005.

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

     9. 99-R-007  Authorizing the City Manager to accept a gift from
                  H.E.B. in the amount of $12,500 for the automation and
                  equipping of the Bruni Plaza Branch Library.

                  Motion to approve Resolution #99-R-007.

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

    10. 99-R-008  Accepting the assignment of 65.1 acre feet of
                  municipal water rights from the 800 acre feet deeded
                  to the City of Laredo by Vaquillas Ranch Company, LTD
                  in payment of water availability charges in connection
                  with the platting of Independence Hills subdivision,
                  Phase II and III, and Concord Hills Phase IV.

                  Motion to approve Resolution #99-R-008.

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

    11. 99-R-009  Authorizing the acceptance of a perpetual easement and
                  public right-of-way, from Auto Testing Properties,
                  L.L.C., a Texas Limited Liability Company, said
                  easement being located on Lot 1, Block 2, Unitec
                  Industrial Center, Phase I, City of Laredo, Webb
                  County, Texas as per plat recorded in Volume 8,
                  Page 17, Webb County Plat Records.

                  Motion to approve Resolution #99-R-009.

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

VIII.  MOTIONS

    12. Consideration of an approval of the construction plans and
        authorization to advertise for bids for the Laredo Bridge
        Department Security Systems for Laredo International Bridge I,
        Bridge II, and the Laredo-Columbia Solidarity Bridge with
        tentative award March 15, 1999.  Funding is available in the
        Bridge System Toll Plaza Improvements.

        Motion to approve.

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

    13. Consideration of an award of a construction contract to the
        LOWEST BIDDER, American Construction Corporation of Texas,
        Laredo, Texas, in the amount of $31,000.00 for the Re-Roofing of
        Building No. 170 at the Laredo International Airport. Funding is
        available in the Airport Building and Improvements to Buildings.

        Motion to approve.

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

    14. Consideration of an award of an engineering contract to Foster
        Engineering Company, Laredo, Texas, for an amount not to exceed
        $21,618.75 to design, prepare plans and specifications and cost
        estimates to relocate existing utility lines which are in
        conflict with the proposed Texas Department of Transportation's
        (TXDOT) project at Loop 20 from the East of IH 35 towards the
        West, to the proposed International Bridge IV (Fourth Bridge)
        Border Station for:  FM 1472 and Loop 20 Intersection. Funding
        is available in the Bridge System SIB Loan Project Engineer
        Fees.

        Motion to approve with correction, delete "1) IH 35 and Loop 20
        Intersection."

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

    15. Consideration of an award of an engineering contract to Groves
        and Associates, Inc. (Frontera Associates International, Inc.)
        San Antonio, Texas, for an amount not to exceed $30,000.00 to
        provide surveys, design, prepare plans and specifications and
        cost estimates for the site adaptation of the Farias Recreation
        Center Plans to fit the new proposed East Hachar Recreation
        Center located at 3000 Guadalupe Street. Funding is available in
        the Community Development East Hachar Recreation Center.

        Motion to approve.

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

    16. Consideration of an award of an annual contract #99-034, to the
        SOLE BIDDER, Dominguez Development and Construction, Laredo,
        Texas, in the amount of $132,000.00, for re-plastering the Civic
        Center pool. The contract vendor will be required to complete
        the project within sixty days.

        Motion to approve.

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

        Cm. Galo questioned the amount budgeted for re-plastering the
        Civic Center pool.

        Francisco Meza, Purchasing Agent, reported that the amount did
        come under-budgeted because originally it was $150,000.

    17. Consideration of an award of a thirty six month rental contract
        (99-024) in the estimated amount of $233,874.00 to the LOWEST
        PROPOSER, International Copier Corporation, Laredo, Texas for
        providing thirty five copiers for various City Departments. This
        vendor is being recommended based on the lowest cost per copy
        and is providing high quality digital copiers. The per copy cost
        will include the use of the copier, a maintenance contract, all
        consumable supplies (toner, developers) during the three year
        period. The contract pricing is approximately 11% less than the
        previous contract. The City will be receiving digital copiers
        that will be connected to our computers. The copiers can
        function as laser printers and with an optional feature, as fax
        machines.  These copiers will be delivered within thirty days.

        Motion to approve.

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

    18. Consideration of an award of contract #99-032, to the LOW
        BIDDER, Valmont Industries, Inc., Valley, NE, in the amount of
        $42,377.00, for the purchase of traffic signal mast arms and
        poles. These will be installed at the following intersections
        McPherson/Fenwick.  Calle Del Norte/West Drive, U.S. 59/Buena
        Vista, Santa Maria/Industrial Blvd., and U.S. 83/South Gate.
        Delivery is expected within sixty days.

        Motion to approve.

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

    19. Consideration of an award of annual contract number 99-045, to
        the HIGHEST BIDDER, Adan Tire Shop, Laredo, Texas, for the sale
        of useable used tires collected at the Fleet Maintenance
        Division.  The contract vendor will be responsible for
        purchasing on a weekly basis, those tires that are deemed
        useable by the contract vendor.  Tires included in this sale are
        passenger tires (14 in. and 15 in.) and truck tires (15 in.).
        All unusable tires removed from City vehicles are taken to the
        landfill for disposal.

        Cm. Guerra gave a copy of a memorandum to Mayor Flores to make
        it part of the record and share it with staff.

        Memo reads:
                        "TEJAS SALES INTERNATIONAL, LTD

        TEL (956) 723-1583                P.O. Box 243, 1708 Victoria
        FAX (956) 727-7627                Laredo, Texas 78040

        January 15, 1999

        Memorandum to: Mr. Florencio Pena
                       City Manager

        From:          Hector Farias, Jr.

        Subect:        R.F.P. Landfill Tires

        Because we have reason to be at the landfill several times a
        week on customs brokerage business, we know that the tire
        situation continues to worsen.

        From the inception of the award to World Tires, we knew that at
        the contract amount awarded, it would be difficult for any
        responsible party to meet the City's requirements.  For that
        reason, our firm contacted Fernando Trevino, owner of World
        Tires, and offered to take all the usable tires which we can
        sell through TSI.  An agreement with Mr. Trevino is still
        pending.  However, we would like to make sure that this
        arrangement would not violate his present contract.  Our
        interest was in not only providing tires for our established
        market but to expedite the process.

        Since our last meeting, we have formed a partnership which has
        obtained a private landfill permit for the disposal and
        processing of tires.  This partnership has been awarded a
        contract by Zapata County for removal of all tires from their
        landfill.

        We have the ability to take all the tires from your landfill
        and transport them to our facility, hence this would allow for
        much needed capacity in Laredo because it would eliminate the
        storage of shredded tires.  Because of the inordinate expenses
        related to baling tires, transporting and processing, we would
        need to enter into a long term contract with the City in order
        to realize our investment.  Expensive specialized equipment for
        loading and unloading tires would be purchased by our firm to
        service the contract.  The only constraint which would prohibit
        us from considering the City's RFP would be the selection
        process.  In order for our firm to undertake the task of
        responding to the City's request, we need your assurance that
        our proposal would be given consideration based on its merit
        alone.

        As you know, the previous process was tainted by the
        involvement of DPW Director Joe Guerra who in our opinion has
        serious conflicts of interest as well as Assistant City Manager
        Larry Dovalina who disqualified our firm without any basis.  As
        a matter of fact, you have a copy of a request our firm made
        from Mr. Dovalina regarding the landfill tires, which he has
        failed to answer.  Our firm requests only that we be on an
        equal playing field and would respect whomever you designate to
        formulate the RFP and select the best proposal for
        recommendation to the City Council.  However, we would have a
        problem should either Joe Guerra or Larry Dovalina be involved
        in this process.

        Let me assure you that it is our intent to submit a proposal
        keeping in mind the rate charges for tires under the proposed
        ordinance which should not incur additional costs to the City.
        This would be possible if the rates were set at $6.00 per truck
        tire and $2.50 per automobile tire.  There are other
        particulars which can best be addressed in a meeting and I look
        forward to hearing from you as soon as possible.  In the
        meantime, my best wishes."
        End of memo.
 
        Motion to approve.

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

    20. Consideration to approve change order no. 1, in the amount of
        $900,000.00 to the construction contract with MW Builders, Inc.,
        Temple, Texas to expedite the construction contract time of the
        Border Facilities for the Northwest International Bridge (Fourth
        Bridge). As an added incentive and part of this change order no.
        1, if the contractor completes the work required to construct
        the Stage I Facilities prior to March 15, 2000, the Contractor
        will be paid $4,500.00 for each calendar day, up to a maximum of
        60 calendar days for a total amount of $270,000.00 and would be
        added as a subsequent change order after March 15, 2000.
        Approval is contingent only upon the outcome of the meeting the
        City Officials and Mexican Officials scheduled for January 14,
        1999 concerning the timetables to reconfirm the progress of the
        international bridge on Mexico's side. City Staff will inform
        the Council at the City Council Meeting, and further, will
        recommend approval of change order no. 1 only if the Mexico's
        portion is on time. If change order no. 1 is approved, the
        current completion contract time of September 15, 2000 is
        revised for a new completion date of March 15, 2000 for the
        construction completion of the Stage I Facilities and September
        15, 2000 for the construction completion of all other work than
        Stage I Facilities. The project consists of eleven building
        structures with related plumbing, electrical, sprinkler and
        security systems. The original construction contract was
        $29,277,000.00. This change order brings the total construction
        contract to $30,177,000.00.  Funding is available in the Bridge
        System/Taxable Bond and Bridge System/Tax Exempt Bond.

        Motion to approve.

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

    21. Consideration of a renewal for a lease agreement with Casa Beto,
        Laredo, Texas, in the amount of $16,800.00, for the lease of a
        warehouse facility located at 702 Davis. This warehouse is being
        utilized by the Health, Finance, Bridge, and Engineering
        Departments as a central storage facility of records and
        documents. This will be the third year that the City has
        occupied this facility. The lease cost of $0.16/sq. ft. is
        prorated based on the square footage utilized by each operation.
        The City is planning to construct a records retention warehouse
        at the new Public Works facility. All city records will then be
        stored at this facility.

        Motion to approve.

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

    22. Consideration to authorize the selection of a consultant and
        enter negotiations for architectural/engineering services
        for the stabilization and preservation of the Benavides Herrera
        home, an Intermodal Surface Transportation Efficiency Act
        Enhancement Project the consultant recommended for the project
        is Turner, Hickey, and Associates. (The Engineering Review
        Committee recommends approval)

        Motion to approve.

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

    23. Consideration to authorize the City Manager to enter into and
        execute a lease agreement between the N.D. Hachar Trust, as
        Lessor, and the City of Laredo, as Lessee, for a primary term of
        one year, at the rental rate of $1,750.00 per month, for 70
        designated parking spaces located on the north corner of Lot
        Nos. 6, 7, 8, 9. 10, in Block No. 61, in the Western Division of
        the City of Laredo, Webb County, Texas, for use as a City of
        Laredo employee parking lot.

        Motion to approve.

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

    24. Consideration to authorize the City Manager to enter into an
        inter-local governmental agreement between the City of Laredo
        and the Laredo Independent School District regarding a joint use
        and maintenance agreement for the D.D. Hachar neighborhood
        recreation center authorized by and pursuant to Chapter 791
        V.T.C.A., Texas Government Code.

        Motion to approve.

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

    25. Consideration to authorize the City Manager to enter into a
        contract between the City of Laredo and Grupo Empresarial, Nuevo
        Laredo, S.A. De C.V., a Mexican Corporation which runs the
        Tecolotes De Los Dos Laredos, a professional 'Triple A' Mexican
        Baseball League, for twenty (20) regular season games to be
        played at Veterans Field during the 1999 season.

        Motion to approve.

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

    26. Consideration to authorize approval of a contract with CH2MHill
        Engineers for the development of a groundwater supply study at a
        cost not to exceed $185,000.00. The scope for this project was
        presented to Council during the December 14, 1998 workshop.

        Motion to approve.

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

    27. Consideration to authorize the City Manager to execute a
        contract with Bickerstaff, Heath, Smiley, Pollan, Kever and
        McDaniel, L.L.P. for legal services related to the negotiations
        with various departments of the Mexican government including but
        not limited to the Secretaria de Communicaciones y Transportes
        (SCT), the Secretaria de Relaciones Exteriores (SRE) and the
        Comision de Avaluos y Bienes Nacionales (CABIN) to present a
        project for the joint development and construction of a new rail
        bridge and related facilities. The contract is for $4,500.00 per
        month, plus cost and expenses, for up to six (6) months
        duration, for a maximum sum of $27,000.00, plus cost and
        expenses.

        Motion to approve.

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

    28. Consideration of a refund for property tax to the following
        taxpayer(s):
        a. Oscar M. Saldana and Mary Ann Saldana, wife, in the
           amount of $1,126.83.

        Motion to approve.

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

    29. Consideration to authorize the reimbursement of $65,100.00 to
        Vaquillas Ranch, Company, LTD in exchange for the assignment of
        65.1 acre-feet of water rights, already deeded to the City of
        Laredo. The reimbursement is requested since cash was collected
        from the developer when water rights could have been assigned in
        accordance with contractural obligations between the City and
        Vaquillas Ranch Co., LTD.

        Motion to approve.

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

    30. Consideration to authorize the amendment of the City of Laredo's
        20th AY Community Development Block Grant (CDBG) Final Statement
        and its 1995 Consolidated Plan as they pertain to the use of
        20th and 21st AY CDBG funds for the purpose of reprogramming
        project balances totaling $400,000 to finance new and/or
        previously identified activities as noted below:

        20th Action Year CDBG (Project Balances)
        Santo Nino Wastewater Improvements . . . . . . . . . $104,924
        Paving Project #53 Grants. . . . . . . . . . . . . .      250
        Paving Project #54 Grants. . . . . . . . . . . . . .       28
        Traffic Street Signs . . . . . . . . . . . . . . . .      346
        Demolition of Substandard Buildings . . . . . . . .   20,397
        Affordable Housing Infrastructure. . . . . . . . . .  227,188
        Land Acquisition . . . . . . . . . . . . . . . . . .      128
                                    Subtotal . . . . . . . . $353,261

        21st Action Year CDBG (Project Balances)
        Santa Maria Drainage . . . . . . . . . . . . . . . . $    763
        Affordable Housing Infrastructure. . . . . . . . . .   15,122
        Demolition of Substandard Buildings  . . . . . . . .   30,854
                                    Subtotal . . . . . . . . $ 46,739
        Total of funds to be reprogrammed  . . . . . . . . . $400,000

        Activities to be funded
        1. Chacon Creek Improvements . . . . . . . . . . . . $250,000
           This project entails the acquisition and clearance of Chacon
           Creek (including related engineering and environmental costs)
           from the mouth of the river to Highway 359 to provide for the
           health and safety of all citizens.
        2. Three Points Park Improvements . . . . . . . . . . $100,000
           Includes the construction of a roof structure over the
           bathhouse and a shade structure adjacent to the swimming
           pool.
        3. Zacate Creek Beautification Budget (23rd AY). . . $ 50,000
           This project entails the construction of a linear park South
           of Saunders to Lyon Street to include sidewalks, shade trees,
           rest areas and necessary irrigation. Project budget is
           proposed to be increased $50,000 from $300,000 to $350,000 to
           enable construction of sidewalks on the West Side of the
           Creek.

        Motion to approve.

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

    31. Consideration to award contracts to multiple, qualified book
        vendors for library materials collection development for books,
        database, and audio-visual products in an estimated amount of
        $380,000 a period of two years. Multiple contracts for various
        genre will insure high quality reading materials and services at
        the best prices for all book purchases. Since many times several
        vendors are needed to fill a request or desired product,
        multiple contracts will allow library staff to use appropriate
        sources to purchase materials for efficient and cost effective
        collection development.

        Motion to approve.

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

    32. Consideration to authorize the City Manager to enter into an
        interlocal agreement between the City of Laredo and the Winter
        Garden Association for a Cloud Seeding Program to commence on
        April 1, 1999.

        Motion to table until the first week of February.

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


IX.  CITY MANAGER'S REPORT

    33. Status report regarding the Speed Hump Pilot Project, Phase I,
        which entails the installation of speed humps for the following
        streets, McPherson Drive, Fenwick Drive, Kentucky Drive, Ash
        Street, Lyon Street, and Taylor Street and request for approval
        to go out on bids.

        Robert Murillo, gave a status presentation.  He informed that
        meetings were held with the residents of these streets in order
        to provide them information on the speed humps project. Also,
        certified letters were mailed out to these residents for their
        input. The following are the results:

        Street:                  Letters   Responses    In
                                 Mailed    Received    Favor    Against
        McPherson Drive            66         36         30        6
        Fenwick Drive              40         30         24        6
        Kentucky Drive             58         32         27        7
        Ash Street                 11          4          4        0
        Lyon St. (east side)       32         10         10        0
        Taylor St.                 36         25         25        0

        The estimated cost for this First Phase of the project is
        $60,000.

        Some of the concerns addressed by the property owners were:
        property damage due to vehicle control, liability issues, noise,
        allocation of traffic control devices, and decreasing of
        property's value.  Neither of the responses mentioned concerns
        regarding emergency vehicles having to slow down.

        Mr. Murillo added that after the installation of the speed humps
        there will be a 90-days trial period in which an evaluation will
        be made.
 
        Tomas Ramirez, Fire Chief, voiced his concerns regarding the
        emergency vehicles damages and response time.  He also expressed
        concerns with these residential areas since many children play
        on the sidewalks and if a speeding vehicle hits a hump, it may
        loose control and plow towards the children or into a house.

        Florencio Pena, City Manager, stated that these are the type of
        liability issues they are looking into.  That's why this project
        has an extensive process.

        Motion to authorize to go out for bids.

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

        Note:  Cm. Guerra requested to move up item #36.

    34. Status report of the City of Laredo International Airport Noise
        Compatibility Program for the month of January 1999.

        Cynthia Collazo, Community Development Director, made a
        presentation on this item.  She reported that the appraisals for
        the 18 families that selected fee simple acquisition are already
        completed.  Offers were made to 6 families, of these 4 have
        accepted and one has already been closed.

        For the 4 families that elected the acoustical treatment
        program, the review committee interviewed the acoustical
        treatment consultants on January 13, 1999.

        Mr. Hinton is finalizing the work on the avigation easements.
        (5 families elected this program).  There are still 18 families
        undecided.

        Ms. Collazo informed that up to date we have received 12 review
        appraisals totalling over $1 million.  So far, we have about $6
        million for the noise compatibility program.

    35. Status report regarding Ryder/ATE proposal for management of
        Transit Management services and discussion of the City's
        proposal for creation of a non-profit corporation to replace
        private management and possible action thereon.

        Keith Selman, City Planner, stated that City Council directed
        staff to submit a proposal managing El Metro Transit System,
        therefore, a committee was formed by staff members including
        himself.  One of the bigger issues about this transition was:
        "can we do it?", the answer is yes but the how's to.

        The proposed organizational structure outlines how TMCL will be
        dissolved and the "El Metro, Inc." will be created in order to
        make this transition possible. Once in place, the new
        organizational structure will comprise three entities and two
        contracts connecting them functionally:  The City of Laredo and
        "El Metro, Inc." (non-profit) will enter into a management
        contract. "El Metro, Inc." and Union #1670 will enter into a
        collective bargaining agreement. This structure will meet NLRB
        tests because all transit department managers and supervisors
        with responsibility for employees, except for the Transit
        Director, are employed by the non-profit private corporation,
        which will manage the employee's work and will negotiate wages
        and work conditions.

        The current organizational structure provides for one General
        Manager and two Coordinators (PR and Safety) over four division
        heads. On the proposal, one of the four division heads positions
        was removed, the Assistant General Manager for Facilities. So
        the proposed organizational chart indicates one Director and
        three division heads: an Operations Manager (with the
        Maintenance Manager, Safety Coordinator and Senior Road
        Supervisor under him), Public Relations and Marketing
        Coordinator (Research and Development), and the Administration
        Manager.

        Mr. Selman stated that this particular item did go before El
        Metro Committee and by unanimous vote they recommended the City
        to become the manager of El Metro.

        Cm. Galo asked why the City Manager didn't take care of the
        Transit System's problems beforehand, since he has had the
        ability to remedy them. (Note: Cm. Galo previously provided the
        City Manager a list entailing his concerns hoping that staff
        would provide the answers tonight or extend ATE's contract for a
        period of time).

        Cm. Galo stated he hoped that this proposal would have been
        given to Council quite a while back, so they would have ample
        time for the transition, instead of doing it at the last minute.
        He wants to make sure that nothing pops up that hasn't been
        considered because instead of saving money, it will cost the
        City more money.  Finally, just to ensure that the City hires
        the best qualified people for the new entity, he made the
        following motion:

        Motion that if and when the City's proposal is accepted, that
        the qualifications for the Transit Director must be that he or
        she has served as a Transit Director before or at least as an
        Assistant Director for a system that is larger than our own and
        that the Assistant Director must have served as an Assistant
        before.

        Moved :  Cm. Galo
        Second:  Cm. Guerra
        For: 6                         Against:  2         Abstain:  0
                                       Cm. Alvarado
                                       Cw. Montalvo

        Cm. Alvarado replied that for the last two years El Metro's Ad-
        Hoc Committee has been promised they will get answers to their
        questions regarding abuse and misuse at the Transit Center.
        Nepotism was occurring and different audits that were done
        reflected discrepancies. There were also allegations brought to
        Council regarding mishaps going on.

        Here we have a managing firm that charges over $28,000 per month
        to oversee the operation of the transit system and we don't
        understand why we are not getting the service that we should be
        getting.  It is for this reason alone that we lost confidence in
        the managing firm of ATE.  Therefore, the Ad-Hoc Committee has
        unanimously recommended that the City take over the management
        responsibilities of the Transit System.

        Jaime Flores, City Attorney, pursuant to Section 551.071(2) of
        the Open Meetings Act and under his authority as the City
        Attorney requested that City Council meet with him in executive
        session in order to provide them with private legal consultation
        and preserve the attorney-client privilege regarding certain
        legal issues involved with the discussion of this item.

        Motion to go into Executive Session.

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

        After Executive Session Mayor Flores announced no formal action
        was taken.

        There was discussion about Cm. Galo's motion.

        Motion to accept the City's proposal for management services of
        the El Metro Transportation System and extend the ATE contract
        for 3 months from March 31, 1999 for the transitional period.
        And that the City Manager be allowed to post for positions and
        that the City staff come back with any resolutions or any
        documents that we need to be able to proceed with the filing of
        the corporation and any other items pertinent to this issue.

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

    36. Presentation and possible action of a request from Mary Help of
        Christians for the City to provide paving improvements that
        would give access to the school on the north side of the campus
        with their proportionate share not exceeding $30,000.

        Florencio Pena, City Manager, received a letter from the school
        regarding the need to decongest Del Mar Boulevard during the
        school months. It was identified that we can build a road that
        will connect with Springfield's extension on the north side.
        This road will take care of the traffic coming out from the
        school.

        The project has an approximate cost of $100,000 of which the
        school has offered up to $30,000.  The school is asking us to
        condition their contribution up to 28%, so if the bids come
        lower than the estimated amount the school will only contribute
        their 28% portion.

        Patrick Hearn, Boardmember, spoke for Mary Help of Christians on
        this issue as for approval.

        Motion to approve.

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

        Note:  After this item, meeting took regular order.

    37. Presentation and request for affirmation of the 2nd Year Street
        Recycling Project to advise the Mayor and the City Council of
        the proposed list of streets and solicit input as to changes
        which may be necessary, and to submit said list to utility
        companies for scheduling of work required.

        Rogelio Rivera, City Engineer, reported that he needs Council's
        input on the proposed list of streets for the 2nd Year Recycling
        Project. Any changes or additions must be submitted in writing
        in order to avoid misrepresentations. As soon as the list gets
        approved, he will notify the utilities companies so they will be
        ready when advertising for bids starts.

        Mayor Flores asked Council to review the list and turn in any
        revisions or additions in writing to the City Manager.

        Cm. Guerra stated that on the meeting of December 7, 1998,
        Council approved a motion to include the 400 block of Chevy
        Chase on this program.

        Cm. Bruni also stated that Council had approved a motion on
        October 5, 1998 to add the 2500 block of Villa Way to the
        current program.

        Florencio Pena, City Manager, informed this three year program
        is based on a $750,000 budget and was approved by Council on
        August 1998.  He would like to have Councilmembers' revisions by
        the next meeting.

        The City Manager requested this item to be tabled for the next
        Council Meeting.

        Note: At this point Cm. Galo requested to move up items under
              #38-D (1,2,3), since he will be leaving early.

 X. COMMUNICATIONS

    A.  Cw. Montalvo recognized the Traffic Department and two of its
        employees, Minda Guerra and Janie Estevez, for providing and
        continue to provide the best customer service in selling bridge
        coupons.

    B.  Cm. Guerra gave a letter to Mr. Pena and asked him to have staff
        solve the situation addressed in the letter. The letter is from
        Mr. Ronald Goodman, Manager of ROADRUNNER ESCORT SERVICE, INC.,
        8340 Tejas Loop, Laredo, Texas 78043, (956-712-9292), and it's
        dated January 18, 1999.

        Letter reads:
 
            "Recently, it seems that due to the fact that I frequently
        voice my opinion and our concerns before Council, we are being
        treated differently than all other customers of the Traffic
        Safety Department (Permit Office). If a citizen voicing concerns
        and opinions make him subject to mistreatment from Staff simply
        because they don't like or agree with him, we live in a very
        poor community.  We sincerely believe that this department has a
        double standard and sometimes, dealing with Staff makes us feel
        that we are not in the U.S. but in Mexico.  This type of
        attitude is not supposed to exist in our country.

             As employees of a vehicle escort company and being on the
        streets all day long; we happen to see a lot of different
        violations of the Department's policy and rules.  We have
        reported many of these to Staff and we have been told that we
        need to put the complaint in writing and have it notarized.
        This requires access to a typewriter and an expense of at least
        fifteen dollars to have a document notarized. What happened to
        accepting a citizen's complaint and following upon it. If we
        dial 911 and say someone is shooting someone, the police do not
        ask for a notarized letter in order to act. If we see something
        happening now and we report it, they should send someone out now
        and catch the violators in the act not wait for a lot of red
        tape. Staff earns a salary come rain or shine, their job as
        public servants is much more secure than ours or than working
        for the private industry.

             I sometimes feel that we are at war and Staff is the enemy.
        We try to make peace but our efforts always fall on deaf ears.
        I have been told that I am always asking for favors and nobody
        else ever asks.  Maybe I am the only one who can take the heat
        and everyone else is afraid to step on someone's toes and get
        blacklisted as We seem to be.

             We are customers of the Department, Staff works because of
        us, treat us like customers and be impartial and don't let
        public opinion tell you how to treat some customers differently
        than others.  You might consider a change in upper management.
        Management should not have to be told about these problems, they
        should not let them start or at least catch them and nip them in
        the bud."

    C.  Mayor Flores forwarded a letter that she received to Mr. Pena.
        The letter is signed by residents on Live Oak Street, in the
        Terra Hills subdivision.  They are concerned with the opening of
        the street for traffic to go through.

    D.  Jesus Hernandez, from GI Forum, appeared before Council for the
        purpose of soliciting to claim the flags for Mothers Days for
        the Veterans Organization and also asked for diapers for the
        Veterans. And his third issue was a concern for the Food Bank
        that according to him have not been paid by the City.

        Mayor Flores stated that she will give his letter to the
        Veterans Affairs Committee so that they can discuss his
        concerns, and told him that Food Bank is working.

        Jerry Robinson, Health Department Director, added that the
        Health Department has been furnishing incontinence supplies
        (diapers) and other necessary supplies, and will continue to do
        so, to the Veternas.
 
XI. CITY COUNCIL PRESENTATION AND DISCUSSION

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

         A. Request by Mayor Elizabeth G. Flores

            1. Invitation by the Laredo Center for the Arts to all
               citizens in our community to visit their photography
               exhibit called, Children of Children, for the month of
               January and February.

               Martha Gonzalez, Executive Director of the Laredo Center
               for the Arts, and Elva Garcia, Chairman of the Board of
               Directors invited Council and public to this event.

            2. Discussion and possible action on naming a Year 2000
               Planning Committee to work on city sponsored festivities
               in celebration of the new millennium.

               Mayor Flores wanted to know if Council had any interest
               in naming a Council Committee for the Year 2000 Planning
               and stated that she would like the City Manager select a
               staff member to coordinate this committee.

               Motion to name a Year 2000 Planning Committee to work on
               city sponsored festivities in celebration of the new
               millennium.

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

            3. Confirmation of appointee, Ms. Meriam Norton to the
               Cemetery Board.

               Motion to confirm appointee, Ms. Meriam Norton to the
               Cemetery Board.

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


            4. Presentation by Sylvia Romero, Partnership Specialist for
               Webb County regarding the United States Census 2000 and
               the need to establish a Complete Count Committee to
               develop and implement local activities to promote the
               census.

               Ms. Romero informed that the Census Bureau is offering
               state and local governments the opportunity to
               participate in programs that will contribute to a more
               accurate count. One of these programs is the Complete
               Count Committee whose chairperson and members should be
               well respected and influential community leaders coming
               from all segments of the community. The goal is to make
               everyone in the community aware of the upcoming Census
               2000 and motivate the community to participate by filling
               out the census form and returning it immediately.  She
               urged us to start this committee as soon as possible
               in order to avoid being under counted. Ms. Romero
               introduced Mr. Juan Hinojosa, Area Manager, from Corpus
               Christi. He gave an overview of the operations on the
               area.

               Mayor Flores assured that this Council will work towards
               naming the committee.

               Motion to approve the formation of a Complete Count
               Committee.

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

         B. Request by Council member Alfredo Agredano

            1. Confirmation of Robert Huber, appointee to the Citizens
               Environmental Committee.

               Motion to confirm Robert Huber to the Citizens
               Environmental Committee.

               Moved :  Cm. Bruni
               Second:  Cw. Moreno
               For:  7                 Against:  0         Abstain:  0
               (Cm. Galo was not present.)

            2. Confirmation of Jose A. Rugama, appointee to the Cemetery
               Board.

               Motion to confirm Jose A. Rugama to the Cemetery Board.

               Moved :  Cm. Bruni
               Second:  Cw. Moreno
               For:  7                 Against:  0         Abstain:  0
               (Cm. Galo was not present.)

         C. Request by Council member Louis H. Bruni

            1. Status report on 300 Block of Arkansas regarding the Aldo
               Tatangelo's Day Care Center, with possible action.

               Cynthia Collazo, Community Development Director, reported
               with regards to this property, that there are 2 blocks
               adjacent to it that were replated into 16 lots.  Back in
               1997 Council approved building 32 units of housing
               targeted for lower income families.  The plan back then
               was to finish the 100 units at Los Obispos and then
               proceed with this project; however, recently,  there have
               been mixed signals from City Council regarding the Laredo
               Affordable Housing Corporation building houses.  Ms.
               Collazo wants direction from Council on this issue.  She
               also noted that the City had entered into a contract with
               Laredo Affordable Housing Corporation for 32 units, not
               including this particular block (300 Arkansas).

               Motion to move into the proposed plan and go forward and
               construct the affordable homes.

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

            2. Status report on the extension of University Boulevard,
               with possible action.

               Cm. Bruni informed Council that he received a petition
               with almost 100 signatures from Casa Verde residents
               asking to expedite the extension of University Boulevard
               project.  The residents' major concern is their safety
               when entering into the Bob Bullock Loop.

               Cynthia Collazo, Community Development Director, reported
               that two letters of agreement to the abutting landowners
               were sent on January 15, 1999, and that the land owners
               have manifested their support.

               Rogelio Rivera, City Engineer, informed they do have an
               engineer for this project.

               Cm. Bruni requested that this item be placed on the
               February 1, 1999 meeting.

            3. Status report on staff's efforts to strengthen the
               ordinance prohibiting the discharge of firearms within
               the city limits, with possible action.

               Agustin Dovalina, Police Chief, stated there is already
               an ordinance and it's a Class "C" misdemeanor.  There is
               a State Charge on disorderly conduct (Class "B") and on
               the State Penal Code there is a deadly conduct charge
               which is a felony.  He feels that adding more teeth to
               the ordinance will not stop people. Due to last New
               Year's festivities, the Police Department received over
               131 calls regarding shots being fired; they made two
               arrests.

               Cm. Bruni stated that ammunition suppliers even asked to
               ban the sale of ammunitions 48 hours prior to the
               celebrations.  Cm. Bruni suggested that the ban may
               start even be a week before the celebrations. He asked
               legal staff to look into this issue.

            4. Status report on amending the Oil and Gas Ordinance to
               include the plugging and abandonment of non-producing gas
               wells with possible action.

               Cm. Bruni stated that a certain company in town wanted to
               plug several gas wells located at Cm. Guerra's district,
               but due to their proximity to a supermarket and
               restaurant, the company decided there were too many
               restrictions and they rather leave the gas valves in
               place and not worry about it.  These wells present a
               problem because, eventhough they have been depleted,
               there still are lingering gas and shooting pressure at
               the well head. He is concerned about our ordinances not
               having such provisions while oil and gas contracts
               written to owners have provisions calling for abandonment
               and plugging of gas wells that are no longer productive
               for a period of six months.

               Keith Selman, City Planner, informed that we certainly
               can amend our ordinance to put this kind of language into
               it, but he is not sure on how this will be enforced
               retroactively.  He added that we can work out the
               language on the ordinance and incorporate it but it
               seems, to a certain degree, the private sector is taking
               care of it.

               Cm. Bruni replied that in this particular case the
               surface owners will ask the oil company to plug the
               wells, but the company may refuse if it's not stipulated
               in their lease agreement.  So, it has to be either in the
               oil & gas lease or in our ordinance to effectively and
               efficiently make the company plug and abandon the well
               and remove their well head equipment.

               Motion to instruct staff to proceed to amend the
               ordinance to call for the abandonment and plugging of
               non-producing oil/gas well and that we set time
               parameters on how long a gas well cannot produce gas and
               still be allowed not to be plugged.

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


         D. Request by Council member John C. Galo

            1. Asking for a report from Tex-Mex on the progress made at
               their new rail yard and on the reconstruction of the at
               grade crossings at Hendricks and at Seymour.

               Keith Selman, City Planner, reported that he received a
               letter from Tex-Mex which outlines their recent
               accomplishments undertaken in Laredo over the last
               twelve months.

               (Excerpt from letter:)
               New Tex Mex Yard at Mile Post 9:
               Phase I   -1 15,000 ft. track and 3 tracks of 10,000 ft.,
                          each 95% complete.
               Phase II  -Intermodal track to be completed by the end of
                          January 1999.
               Phase III -10 yard tracks proposed to start construction
                          by summer 1999.

               Laredo:
               o  Installed 5.4 million pounds of ballast to upgrade the
                  mainline through the city.
               o  Installed 10,000 mainline rail ties.
               o  Reconstructed railroad grade crossings at Arkansas,
                  East Market, Bartlett, Buena Vista, Seymour,
                  Hendricks, West Market, Marcella, Corpus Christi and
                  Convent Streets.
               o  Replaced 70% of mainline switches.
               o  Removed 4 tracks on Convent & Moctezuma crossing.
               o  Currently removing one of the tracks between Logan and
                  Seymour Streets.
               (excerpt ends).

               Arturo Dominguez and Larry Fields from Tex-Mex were
               present.

               Mr. Fields reported there are currently 5 tracks in
               service at the new yard, and they are at least 90 days
               from completing the second inner-motor track (boxes,
               trailers, etc.).  Tex-Mex will start using the new
               facility on February 1, 1999.

               At least 3 tracks from the Heights Area are being
               retired; this will be completed in 60 to 90 days.
               Switching in town will continue, but it will decrease by
               70-80%.  So far, Tex-Mex has spend $15.5 millions in
               major improvements in and around the City.  They are
               rehabilitating the tracks throughout town and the
               embargos (tracks adjacent to Rio Grande).

               The crossing upgrades at Hendricks and Seymour have been
               done and finalized.

               Cm. Galo requested that staff look into the above two
               crossings because there are some bumps where the regular
               street connects with the upgraded area.

               Cm. Bruni, also, requested that staff look into the
               crossing at Guadalupe and Arkansas because there is a dip
               where the upgrade meets with the City's portion and
               that's the City's  problem.

            2. Staff reports on any city or government ordinance that
               may control noise levels concerning the railroads and the
               possibility of government grants for noise abatements to
               those residents who qualify.

               Keith Selman, Planner, reported that the tendency in the
               legislation is to get louder.  He is not aware about any
               grants or similar things regarding noise abatements, and
               there are no local ordinances addressing the noise.

            3. Staff reports on all city ordinances that regulate the
               railroads, with possible action.

               Keith Selman, City Planner, stated that Chapter 27 of our
               local code has three different provisions:  Section 27-1
               deals with the speeds and how fast the trains can move
               through Laredo.  Section 27.2 pertains to the issue of
               obstructing the crossing for five minutes.  Section 72-3
               pertains to maintenance of the crossing and identifies
               the Railroad Companies as being responsible for it.

               Cm. Galo wanted to know how enforceable is the ordinance
               pertaining to blocking the crossing.

               Florencio Pena, City Manager, replied that the violation
               has to do with stopping for five minutes.  A call is
               received by the Police Department and an officer will be
               sent to the location.  The logistics of this ordinance
               are complicated.

               Cm. Galo stated the trains are getting longer and longer
               and this problem needs to be addressed greatly.  We don't
               need an intersection at every single block, but the
               intersections that are available need to carry the
               increased traffic load.

               Agustin Dovalina, Police Chief, stated that the Police
               Department does respond to a number of calls involving a
               train blocking an intersection for a lengthy period of
               time, but sometimes the train is moving slowly and there
               is no violation.  But citations as well as a couple of
               arrests have been made regarding trains stopped for
               lengthy periods of time.

               Cm. Galo mentioned that sometimes the locomotive is
               parked at Seymour, outside their yard, and it's left just
               idling.  Does this fall into the noise ordinance?

               Keith Selman replied that he will look into it and find
               out.

            4. Confirmation of Sigifredo Perez Jr., appointee to the
               Ordinance Review Committee.

               Motion to confirm Sigifredo Perez, Jr. to the Ordinance
               Review Committee.

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

               Note:  Cm. Galo left at 7:35 P.M.
                      The meeting followed the regular order of business
                      item X (Communications).

         E. Request by Council member Eliseo Valdez Jr.

            1. Status report on the replacement of water lines in the
               Hillside area.

               Fernando Roman, Utilities Director, reported that streets
               needing water lines replacement were identified at both
               sides of the Zacate Creek in the Hillside area.  Priority
               was given to the most difficult streets which were on the
               east side of the creek.  To this date, work has been
               completed, including patching and sidewalks
               reconstruction, at the following streets Nebraska,
               Oklahoma, East Dakota and about 60 feet of Montana.

               Work pending is on the west side of the Zacate Creek
               which includes the streets of Mayberry, Indiana and
               Kentucky.  There are no funds available in the current
               year's budget to start this project; so is has to wait
               until next FY budget (October 1999).

            2. Status report on right hand turning lanes on St.
               James/Calle Del Norte and Springfield Road/Calle Del
               Norte.

               Cynthia Collazo, Community Development Director, reported
               they have been working with the property owner on the St.
               James/Calle Del Norte.  He wants to negotiate some
               agreements he previously made with the City.  If an
               agreement is not reached with him within the next two
               days, we will proceed with an appraisal of the property
               and make an offer. If the owner rejects the offer then
               we will proceed with eminent domain proceedings.

               Robert Murillo, Traffic Engineer, informed that the award
               for the signal post was approved today and the it will be
               installed within the next 3-4 months.

               Ms. Collazo, reported that the property owners are
               willing to work with us on the Springfield/Calle Del
               Norte intersection.  The Engineering Department prepared
               an estimate on the actual cost of the project including
               the removal and reconstruction of curb and gutter,
               pavement, sidewalks and ramps, new curb and gutter
               pavement, relocation of the mast turn signal, fencing,
               stripping and relocation of water lines.  The estimate
               came to approximately $175,000 and does not include the
               right-of-way nor the A & E Fees; however this project's
               construction is unfunded at this time.

               Florencio Pena, City Manager, stated this is the early
               part of the CIP process.  If the A & E money gets
               allocated for the project's design and if the project
               gets approved on August 1999, the bidding process can
               start on October 1999 when next fiscal starts and funds
               may be allocated.  This will make it possible to proceed
               in a much faster pace.

               Motion to proceed with RFP for solution of Engineers.

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


XII. PUBLIC HEARINGS

    39.  Public hearing amending the City of Laredo FY 1998-1999 Annual
         Budget in the amount of $12,500 for a gift from H.E.B. for the
         automation and equipping of the Bruni Plaza Branch Library,
         providing for effective date.

                    INTRODUCTION OF AN ORDINANCE
      Ordinance amending the City of Laredo FY 1998-1999 Annual
      Budget in the amount of $12,500 for a gift from H.E.B. for the
      automation and equipping of the Bruni Plaza Branch Library,
      providing for effective date.

         Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce the ordinance.

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

         Ordinance Introduction:  City Council

    40.  Public hearing amending the City of Laredo's 1998-1999 Annual
         Budget by reclassifying eight firefighter/cadets to eight
         communications technicians (911) and adding one communications
         technician supervisor and one communications technician for the
         Police Department and authorizing the City Manager to implement
         said budget.

                    INTRODUCTION OF AN ORDINANCE
      Ordinance amending the City of Laredo's 1998-1999 Annual
      Budget by reclassifying eight firefighter/cadets to eight
      communications technicians (911) and adding one communications
      technician supervisor and one communications technician for
      the Police Department and authorizing the City Manager to
      implement said budget.

      Motion to open the public hearing.

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

         There was no public input.

         Motion to close the public hearing and introduce the ordinance.

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

         Ordinance Introduction:  City Council

    41.  Public hearing concerning Delfina Alexander Ochoa and Josefina
         Alexander Gonzales amending the Zoning Ordinance (Map) of the
         City of Laredo by rezoning 84.6274 acres, as further described
         by metes and bounds, located southeast of the intersection of
         Del Mar Boulevard and McPherson Road, from R-1 (Single Family
         Residential District) to B-1 (Limited Business District). The
         Planning and Zoning Commission recommends approval of this zone
         change.

                    INTRODUCTION OF AN ORDINANCE
      Ordinance amending the Zoning Ordinance (Map) of the City of
      Laredo by rezoning 84.6274 acres, as further described by
      metes and bounds, located southeast of the intersection of Del
      Mar Boulevard and McPherson Road, from R-1 (Single Family
      Residential District) to B-1 (Limited Business District).

         Motion to open the public hearing.

         Moved :  Cm. Alvarado

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

         Larry Puig spoke in favor of the zone change.

         Motion to close the public hearing and introduce the ordinance.

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

         Ordinance Introduction:  Cm. Bruni

    42.  Public hearing concerning Blackstone Dilworth amending the
         Zoning Ordinance (Map) of the City of Laredo by rezoning
         .650 acres, as further described by metes and bounds, located
         at 10810 McPherson Road from AG (Agricultural District) to M-1
         (Light Industrial District).  The Planning and Zoning
         Commission recommends approval of this zone change.

                    INTRODUCTION OF AN ORDINANCE
      Ordinance amending the Zoning Ordinance (Map) of the City of
      Laredo by rezoning .650 acres, as further described by metes
      and bounds, located at 10810 McPherson Road from AG
      (Agricultural District) to M-1 (Light Industrial District).

      Motion to open the public hearing.

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

         Harry Dewitt, representing Mr. Blackstone Dilworth stated that
         the rezoning acreage is .65 and that it is for a communications
         site across the street from the fire station on McPherson Road.

         Motion to close the public hearing and introduce the ordinance.

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

         Ordinance Introduction:  Cm. Alvarado

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. Alvarado
      Second:  Cm. Guerra
      For:  7                          Against:  0         Abstain:  0

    43. Award of a thirty six month rental contract (99-024) in the
        estimated amount of $29,646.00 to the LOWEST PROPOSER,
        International Copier Corporation, Laredo, Texas for providing
        three copiers for the Transit Department. This vendor is being
        recommended based on the low cost per copy cost and is providing
        high quality digital copiers. The per copy cost will include the
        use of the copier, a maintenance contract, all consumable
        supplies (toner, developers) during the three year period. The
        contract pricing is approximately 11% less than the previous
        contract.  The City will be receiving digital copiers that will
        be connected to our computers. The copiers can function as laser
        printers and with an optional feature, as fax machines.  These
        copiers will be delivered within thirty days.
        Motion to approve.

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

        Cw. Montalvo wanted to know what would be the difference between
        renting and purchasing the copiers.

        Florencio Pena, City Manager, informed that the City and El
        Metro's contacts were packaged together for the leasing of the
        copiers. Time ago, staff determined that it's more cost
        beneficial for us to lease copiers as opposed to purchase them.


                          SUPPLEMENTAL AGENDA

VIII.  MOTIONS

       Approval of the selection of consultants and authorization to
       negotiate five (5) engineering contracts to design, prepare
       plans and specifications and cost estimates for the following
       City of Laredo 1999 Capital Improvements projects:

       1.  Killam Industrial Boulevard to Foster Engineering Company
       2.  Jacaman Road to Porras Engineering Company
       3.  McPherson Road Widening to Mejia Engineering Company
       4.  Community Development Sidewalks Approaches to Schools in
           District IV to Crane Engineering Company
       5.  Zacate Creek Beautification Phase II to Sherfey Engineering
           Company.

       The Engineering Contract Review Committee concurs with the
       Recommendation.

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

       Award of a construction contract to the LOWEST BIDDER,
       Dominguez Development and Construction, Laredo, Texas, in
       the amount of $241,662.50 for the Zacate Creek Beautification
       Project.  Funding is available in the Community Development
       Zacate Creek Beautification.

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

  XIV. ADJOURNMENT

       Motion to adjourn.              Adjournment time:  8:45 P.M.

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

       I hereby certify that the above Minutes contained in pages 01 to
       34 are true, complete, and correct proceedings of the Regular
       City Council Meeting 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