LAREDO – The Laredo city manager has resigned from his position amid the FBI’s investigation into a Houston-based engineering firm.

In April, the FBI raided offices of Dannenbaum Engineering in several Texas cities, including McAllen. The firm had contracts all around the state.

The federal agency also served search warrants at Webb County offices and the Laredo city hall the same day.

Former Laredo city manager Jesus Olivares is listed as one of several target subjects on the search warrants.

The search warrants to the city of Laredo specify dealings with Dannenbaum Engineering.

Moments before Olivares’ resignation, the Laredo city council discussed putting him on administrative leave until they obtained legal counsel to assist the city with the federal investigation.

An interim city manager will be replacing Olivares.