HomeMy WebLinkAboutPR 11938:REVOLVING LOAN-WATSONINTER
OFFICE
MEMO
To: Mayor, City Council & City Manager
From: Mark T. Sokolow, City Attorney ~ ~~
Subject: P.R. No.11938 Council Meeting October 1, 2002
Date: September 27, 2002
Attached is P.R. No. 11938 pertaining to the Revolving Loan of
Melba and Allen Watson.
MTS/jb
Attachment
cc: Director of Finance
Director of Planning
VIA FACSIMILE (409) 982-5334
Allen and Melba Watson
z .pr11938 .memo
P. R. No. 11938
09/27/02 ts
RESOLUTION NO.
A RESOLUTION PERTAINING TO TEE REVOLVING LOAN
OF MELBAAND ALLEN WATSON
WHEREAS, the City Council, per Resolution No. 01-146 approved
a Revolving Loan in the amount of $20,000 at 5% interest over five
(5) years, as denoted in Exhibit "A", to Melba and Allen Watson for
the purchase of inventory, equipment, fixtures, and working capital
for a floral and gift shop located at 1900 Woodworth Boulevard;
WHEREAS, the payment schedule is delineated in Exhibit
WHEREAS, Melba and Allen Watson have submitted a request to
temporarily adjust their payments as to pay the arrearage and build
up the capital as delineated in Exhibit "C";
WHEREAS, Melba and Allen Watson have made payments as
delineated in Exhibit "D"; and
WHEREAS, the request of Melba and Allen Watson is being
recommended by the Director of Planning, the Revolving Loan
Committee and by the Small Business Development Center, as denoted
in Exhibit
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble are
true and correct.
Section 2. That the request of Melba and Allen Watson to
temporarily adjust their payments is herein approved.
Section 3. That those debtors shall sign the necessary
notes, with a new payment schedule and security instruments
approved by the City Attorney and the City Finance Director, with a
payment schedule as denoted in Exhibit "F".
Section 4. That if Melba and Allen Watson fail to make
these payments as delineated in Exhibit "F", then the City will
proceed with Notice of Acceleration and Collection.
Section 5. That a copy of the Caption of this Resolution
be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this __ day of
, A.D., 2002, at a Regular Meeting of the City
Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor ,
Councilmembers
NOES:
ATTEST:
MAYOR
CITY SECRETARY
APPROVED AS TO FORM=
CITY ATTORNEY
APPROVED FOR ADMINISTRATION=
CITY MA/qAGER
AGREED TO=
ALLEN WATSON
DATE:
MELBA WATSON
DATE:
z.pr11938
EXHIBIT "A"
Port Arthur~ TX 77642
P. O. Box 1099
Port Arthur, TX 77640
Amount $ 20,0~00
AND NO/100 OoIl.~. $
vo.ru.dl July~ 2, 20~Q6 .
and will bo duo Au~us~t_ g ~. 2001
2nd day of each month
woYking capital.
All;n Wats'on[~azSpec~al Moments Floral
Melba Watson dba Special Moments Floral
EXHIBIT "B"
BORROWER:
LENDER:
2.
3.
4.
5. TERM:
6. TOTAL PAYMENTS:
7. '~PAYABLE IN:
8. FIRST PAYMENT:
9.. LAST PAYMENT:
Signed on the
TRUTH IN LENDING DISCLOSURE STATEMENT
Melba and Allen Watson dba Special Moments Floral & Gilt Design
City of Port Arthur
P. O. Box 1089
Port Arthur, TX 77641-1089
AMOUNT FINANCED:
FINANCE CHARGES:
ANNUAL PERCENTAGE RATE:
EFFECTIVE PERCENTAGE RATE:
day of ~q
Received on the ~-~ day of
$20,000
$2,647.86
5%
5%
5 YEARS
$22,647.86
60 MONTHS
August 2, 2001
July 2, 2006
,2001.
Melba Watson dba
S~ci~l Moments F!oral & Gif~ Design
Allen Watson~a
Special Momeffts Floral & Gift Design
zfloralshop.loan
Interest Vision
Amortization Schedule
Loan or Annuity Variables:
Start Date: Jul 2, 2001
Start Payment: Jul 2, 2001
Start Interest: Jul 2, 2001
Payment Freq.: Monthly
Compound Freq.: Monthly
Days in Mo./Yr.: Actual No.
Payment Mode: In Arrears
End Date:
No. of Payments:
Interest Rate:
Initial Principal:
Payment Amount:
Balloon:
Amortization Method:
Jul 2, 2006
6O
5.000%
$2OO0O.OO
$377.46
$0.00
Simple Int.
Payment
No. Date Amount
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
3O
31
32
33
34
35
Jul 2 2001
Aug 2 2001
Sep 2 2001
O~t 2 2001
Nov 2 2001
Dec 2 2001
Jan 2 2002
Feb 2 2002
Mar 2 2002
Apr 2 2002
May 2 2002
Jun 2 2002
Jul 2 2002
Aug 2 2002
Sep 2 2002
Oct 2 2002
Nov 2 2002
Dec 2 2002
Jan 2 2003
Feb 2 2003
Mar 2 2003
Apr 2 2003
May 2 2003
Jun 2 2003
Jul 2 2003
Aug 2 2003
Sep 2 2003
Oct 2 2003
Nov 2 2003
Dec 2 2003
Jan 2 2004
Feb 2, 2004
Mar 2, 2004
Apr 2, 2004
May 2, 2004
Jun 2, 2004
0.00
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
Interest
Amount
0.00
84.93
83.69
79.78
81.18
77.34
78.64
77.38
68.74
74.79
71.13
72.20
68 62
69 60
68 29
64 82
65 65
62 25
62 99
61 65
54.47
58 94
55 73
56 22
53 08
53 48
52 10
49 08
49 32
46 39
46 40
45 00
40 78
42 16
39.43
39.31
Interest
Rate/Yr.
0.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5,000
5.000
5.000
5.000
5.000
5.000
5 000
5 )00
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5.000
'Principal
0.00
292.53
293.78
297.68
296.29
300.12
298.82
300.09
308.73
302.67
306.33
305.26
308.84
307.87
309.18
312.65
311.82
315.21
314.48
315 81
322 99
318 53
321 74
321 25
324 38
323 99
325 36
328 38
328 14
331 08
331 07
332 47
336.69
335.30
338.04
338.15
Balance
20000.00
19707.47
19413.69
19116.01
18819.72
18519.60
18220.78
17920.69
17611.97
17309.29
17002.96
16697.70
16388.86
16080.99
15771.82
15459.17
15147.35
14832.14
14517 66
14201 84
13878 85
13560 33
13238 59
12917 34
12592 96
12268 98
11943 61
11615 23
11287 09
10956 01
10624 95
10292 48
9955.79
9620.49
9282.45
8944.30
No. Date
Payment
Amount
Interest Interest
Amount Rate/Yr. Principal
Balance
36 Jul 2, 2004
37 Aug 2, 2004
38 Sep 2, 2004
39 Oct 2, 2004
40 Nov 2, 2004
41 Dec 2, 2004
42 Jan 2, 2005
43 Feb 2, 2005
44 Mar 2, 2005
45 Apr 2, 2005
46 May 2, 2005
47 Jun 2, 2005
48 Jul 2, 2005
49 Aug 2, 2005
50 Sep 2, 2005
51 Oct 2, 2005
52 Nov 2, 2005
53 Dec 2, 2005
54 Jan 2, 2006
55 Feb 2, 2006
56 ~ar 2, 2006
57 Apr 2, 2006
58 May 2, 2006
59 Jun 2, 2006
60 Jul 2, 2006
TOTAL:
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
377.46
22647.86
36 66
36 44
34 99
32 46
32 08
29 63
29 22
27.75
23.72
24.76
22.51
21.75
19.59
18.72
17.20
15.16
14.13
12.18
11.04
9.48
7.15
6.35
4.62
3.19
1.54
2647.86
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
5.000
340.81
341.03
342.47
345.01
345.38
347.83
348.24
349.72
353.75
352.71
354.95
355.71
357.88
358.74
360.27
362.30
363.33
365.28
366.43
367.98
370.31
371.12
372.85
374.28
375.92
20000.00
8603.49
8262.47
7919.99
7574.99
7229.60
6881.77
6533.53
6183.81
5830.06
5477.36
5122.40
4766.69
4408.82
4050.07
3689.81
3327.51
2964.17
2598.89
2232.46
1864.48
1494.17
1123.05
750.20
375.92
0.00
EXHIBIT "C"
Special Moments Floral Design
1900 Woodworth Blvd.
Port Arthur, Texas 77640
409 982-5332
September 16, 2002
Mr. Dale Watson
City of Port Arthur
Revolving Loan Fund
Dear Sir,
This is to confirm our discussion conceming my loan through the City of Port Arthur
Revolving loan fund.
With the Council's permission:
I am immediately paying $224.37 ( half of the interest on past due amount)
On October 18, 2002 1 wilt pay $224.37 (This will pay all the interest on the past due
amount of my loan.
I will pay monthly payments on the interest part of my loan for the next six months. This
payment should be approximately $75.00.
After the six months I will resume paying the full monthly amount oftbe original loan.
I understand the payment plan will have to be restructured.
I have been working with the Lamar Small Business Development Center to help my
business become successful. I now have some major new customers that I just contracted
with. I have also been able to cut my employee expenses by doing more of the operation
myself and with my Wife's help. I have also received some employee training assistance
from the Texas Workforce Commission.
With these changes I can see a more positive future for my business. With your help I
believe that in six months I will have this business operating in a way to be able to pay
you as we agreed originally.
Allen Watson~' ~
EXHIBIT ~'D"
MR430105
Customer ID . . . :
Last statement :
Last invoice :
Current balance :
Pending ..... :
Type option, press Enter.
5=Display
Opt Trn date Description
_ 9/18/02 PAYMENT
_ 4/29/02 PAYMENT
_ 2/22/02 PAYMENT
_ 1/10/02 PAYMENT
_ 12/04/01 PAYMENT
_ 11/05/01 PAYMENT
_ 10/03/01 PAYMENT
_ 9/04/01 PAYMENT
City o~ Port
Miscellaneous Receivables Inquiry
15:49:09
7104
o/oo/oo
o/oo/oo
17,883.61
.00
Name: Watson, Melba & Allen
Addr: 1900 Woodworth
Port Arthur, TX
PT ARTHUR, TX 77642
A ACTIVE REVOLVING LOAN 118
Payment History
Payment Batch and Original
Type Receipt # Amount
AR 183377 224.37-
AR 109235 377.46-
AR 75468 377.46-
AR 53782 377.46-
AR 33960 377.46-
AR 18817 377.46-
AR 3194 377.46-
AR 174181 377.46-
Unapplied
Amount
00
00
00
00
00
00
00
00
More.
F3=Exit F12=Cancel
MR~301,05
City o~ Port Arthur
Miscellaneous Receivables Inquiry
Customer ID . . . : 7104 Name:
Last statement : 0/00/00 Addr:
Last invoice : 0/00/00
Current balance : 17,883.61
Pending ..... : .00
Type option, press Enter. Payment History
5=Display
Opt Trn date Description
_ 8/02/01 PAYMENT
Watson, Melba & Allen
1900 Woodworth
Port Arthur, TX
PT ARTHUR, TX 77642
A ACTIVE REVOLVING LOAN
Payment Batch and
Type Receipt #
AR 158085
Original
Amount
377.46-
15:49:09
118
Unapp 1 led
Amount
.00
Bottom
F3=Exit F12=Cancel
EXHIBIT "E"
INTEROFFICE MEMORANDUM
TO:.
FROM:
DATE:
STEVE FITZGIBBONS, CITY MANAGER
r~E X.. ~V^TSO~, r~mEc~ro~ OF vrar,rt~I~O
SPECIAL MOMENTS
09/27/02
I have spoken to the members of the City Revolving Loan Fund Committee concerning
the request by Allen Watson (Special Moments Florist) to make interest only payments
on his loan for a period of six months. They all support this request. It was noted by the
board member in the banking industry that this is done all the time on bank bans.
SMALL BUSINESS DEVELOPMENT CENTER
LAMAR UNIVERSITY - PORT ARTHUR
/1 Member of The Texas State University System
September 16, 2002
To Whom It May Concern:
It has been my pleasure to work with Allen Watson as his business consultant. Mr.
Watson has been carefully analyzing his business for the past year. He has a very
competent accountant who provides him with all the necessary financial information to
operate his business. We have found ways to reduce his operating costs. He has had help
from the Texas Workforce Commission with his employee training expenses.
Mr. Watson has also recently gotten contracts from several of the large local refineries.
Our projections show a more positive trend. If this trend continues, this business should
be successful.
Mr. Watson is a client who gladly follows advice and continues to learn new ways to
grow his business.
Mr. Watson is a very ethical, professional businessman who is an asset to the community.
Sincerely, ~
Conrad Cooper
Business Consultant
1401 Procter Street PortArthur, TX 77640 · Tel (409) 983-5973 · Fax (409) 983-1546
EXHIBIT "F"
09/26/2002 4:44:21 PM Page 1
Alan and Melba Watson
Compound Period .........
Nominal Annual Rate ....
CASH FLOW DATA
Monthly
5.000 %
Event Date Amount Number Period End Date
1 Loan 10/18/2002 17,954.17 1
2 Payment 10/18/2002 224.37 1
3 Payment 11/18/2002 75.00 6 Monthly 04/18/2003
4 Payment 05/18/2003 377.46 52 Monthly 08/18/2007
5 Payment 09/18/2007 135.46 1
AMORTIZATION SCHEDULE - Normal Amortization
Date Payment Interest
Principal Balance
Loan 10/18/2002 17,954.17
1 10/18/2002 224.37 0.00 224.37 17,729.80
2 11/18/2002 75.00 73.87 1.13 17,728.67
3 12/18/2002 75.00 73.87 1.13 17,727.54
2002 Totals 374.37 147.74 226.63
4 01/18/2003 75.00 73.86 1.14 17,726.40
5 02/18/2003 75.00 73.86 1.14 17,725.26
6 0311812003 75.00 73.86 1.14 17,724.12
7 04/18/2003 75.00 73.85 1.15 17,722.97
8 05/18/2003 377.46 73.85 303.61 17,419.36
9 06/18/2003 377.46 72.58 304.88 17,114.48
10 07/18/2003 377.46 71.31 306.15 16,808.33
11 08/18/2003 377.46 70.03 307.43 16,500.90
12 09/18/2003 377.46 68.75 308.71 16,192.19
13 10/18/2003 377.46 67.47 309.99 15,882.20
14 11/18/2003 377.46 66.18 311.28 15,570.92
15 12/18/2003 377.46 64.88 312.58 15,258.34
2003 Totals 3,319.68 850.48 2,469.20
16 01/18/2004 377.46 63.58 313.88 14,944.46
17 02/18/2004 377.46 62.27 315.19 14,629.27
18 03/18/2004 377.46 60.96 316.50 14,312.77
19 04/18/2004 377.46 59.64 317.82 13,994.95
20 05/18/2004 377.46 58.31 319.15 13,675.80
21 06/18/2004 377.46 56.98 320.48 13,355.32
22 07/18/2004 377.46 55.65 321.81 13,033.51
23 08/18/2004 377.46 54.31 323.15 12,710.36
24 09/18/2004 377.46 52.96 324.50 12,385.86
25 10/18/2004 377.46 51.61 325.85 12,060.01
26 11/18/2004 377.46 50.25 327.21 11,732.80
27 12/1812004 377.46 48.89 328.57 11,404.23
2004 Totals 4,529.52 675.41 3,854.11
Alan and Melba Watson
Date Payment Interest Principal Balance
28 01/18/2005 377.46 47.52 329.94 11,074.29
29 02/18/2005 377.46 46.14 331.32 10,742.97
30 03/18/2005 377.46 44.76 332.70 10,410.27
31 04/18/2005 377.46 43.38 334.08 10,076.19
32 05/18/2005 377.46 41.98 335.48 9,740.71
33 06/18/2005 377.46 40.59 336.87 9,403.84
34 07/18/2005 377.46 39.18 338.28 9,065.56
35 08/18/2005 377.46 37.77 339.69 8,725.87
36 09/18/2005 377.46 36.36 341.10 8,384.77
37 1011812005 377.46 34.94 342.52 8,042.25
38 11/18/2005 377.46 33.51 343.95 7,698.30
39 12/18/2005 377.46 32.08 345.38 7,352.92
2005 Totals 4,529.52 478.21 4,051.31
40 01/18/2006 377.46 30.64 346.82 7,006.10
41 02/18/2006 377.46 29.19 348.27 6,657.83
42 03/18/2006 377.46 27.74 349.72 6,308.11
43 04/18/2006 377.46 26.28 351.18 5,956.93
44 05118/2006 377.46 24.82 352.64 5,604.29
45 06/18/2006 377.46 23.35 354.11 5,250.18
46 07/18/2006 377.46 21.88 355.58 4,894.60
47 08/18/2006 377.46 20.39 357.07 4,537.53
48 09/18/2006 377.46 18.91 358.55 4,178.98
49 10/18/2006 377.46 17.41 360.05 3,818.93
50 11/18/2006 377.46 15.91 361.55 3,457.38
51 12/18/2006 377.46 14.41 363.05 3,094.33
2006 Totals 4,529.52 270.93 4,258.59
52 01/18/2007 377.46 12.89 364.57 2,729.76
53 02/18/2007 377.46 11.37 366.09 2,363.67
54 03/18/2007 377.46 9.85 367.61 1,996.06
55 04/18/2007 377.46 8.32 369.14 1,626.92
56 05/18/2007 377.46 6.78 370.68 1,256.24
57 06/18/2007 377.46 5.23 372.23 884.01
58 07/18/2007 377.46 3.68 373.78 510.23
59 08/18/2007 377.46 2.13 375.33 134.90
60 09/18/2007 135.46 0.56 134.90 0.00
2007 Totals 3,155.14 60.81 3,094.33
Grand Totals 20,437.75 2,483.58 17,954.17