HomeMy WebLinkAboutRes 2026-033Resolution No. 2026-033
A Resolution of the City Council of the City of Palm Desert, California,
Authorizing a Revolving Loan from the Desert Willow Capital Fund to the
Desert Willow Operations Fund for Golf Cart Replacement and
Establishing Terms for Repayment
Whereas, the City of Palm Desert owns and operates Desert Willow Golf Resort
as a municipal enterprise and destination amenity; and
Whereas, the Desert Willow golf cart fleet is an operationally essential asset
necessary to support daily golf operations, customer service, revenue generation, and
safe resort operations; and
Whereas, replacement of golf carts is necessary from time to time due to age,
useful life, maintenance costs, reliability, safety, customer expectations, and operational
efficiency; and
Whereas, the City maintains funds commonly identified for Desert Willow capital
and operational purposes, including the Desert Willow Capital Fund and the Desert
Willow Operations Fund; and
Whereas, the City Council desires to authorize a revolving loan from the Desert
Willow Capital Fund to the Desert Willow Operations Fund to finance the acquisition or
replacement of golf carts and related equipment, subject to repayment from Desert
Willow operating revenues or other legally available Desert Willow Operations Fund
resources; and
Whereas, the establishment of a revolving loan mechanism will allow the City to
preserve operational continuity, align capital investment with future operating revenues,
and provide transparent accounting for the source and repayment of funds; and
Whereas, the City Council finds that the loan authorized by this Resolution
serves a municipal and public purpose by supporting the continued operation,
maintenance, and financial sustainability of Desert Willow Golf Resort.
Now, therefore, be it resolved by the City Council of the City of Palm Desert,
California, as follows:
Section 1. Findings.
The foregoing recitals are true and correct and are incorporated herein by this
reference as findings of the City Council.
Section 2. Authorization of Revolving Loan.
The City Council hereby authorizes a revolving loan from the Desert Willow Capital
Fund to the Desert Willow Operations Fund in an estimated amount of $1,567,076.64
for the purpose of financing the acquisition, replacement, outfitting, delivery, and
Docusign Envelope ID: B09DE37B-7320-8338-81B3-B58D321708C3
Resolution No. 2026-033 Page 2
implementation of golf carts and directly related equipment or costs necessary for
Desert Willow Golf Resort operations. The final lease amount will be determined after
trade-in values of the current golf cart fleet are determined. The maximum loan amoun t
is not to exceed $1,723,784.64, inclusive of a 10% contingency.
Section 3. Permitted Uses.
Loan proceeds shall be used only for golf cart replacement and related costs,
which may include carts, charging infrastructure or related electrical improvements,
delivery, taxes, warranties, fleet management equipment, financing or acquisition costs,
and other costs reasonably necessary or incidental to placing the golf carts into service.
Section 4. Repayment Obligation.
Amounts advanced from the Desert Willow Capital Fund shall constitute a loan to
the Desert Willow Operations Fund. The Desert Willow Operations Fund shall repay the
Desert Willow Capital Fund from Desert Willow operating revenues or other legally
available resources in accordance with the repayment terms approved by the City
Manager and Finance Director, substantially consistent with Exhibit A, attached hereto
and incorporated by reference.
Section 5. Interest.
Unless otherwise directed by the City Council, the outstanding loan balance shall
bear interest from the date of each advance until repaid at a simple interest rate of 4.0%
annually, which approximates the average rate earned by the City on its pooled
investments.
Section 6. Revolving Nature of Loan.
Repayments of principal and interest shall be returned to the Desert Willow Capital
Fund and may be made available for future Desert Willow capital needs, subject to
budgetary appropriation and applicable City policies. Any future advances for golf cart
replacement under this revolving structure shall be subject to available fund balance,
budget authority, and approval procedures established by the City Manager and
Finance Director, unless further City Council action is required.
Section 7. Finance Director Authority.
The Finance Director, or designee, is authorized and directed to establish and
maintain the necessary accounting entries, loan records, interfund transfer
documentation, amortization schedules, budget adjustments, and other administrative
procedures necessary or desirable to accomplish the purposes and intent of this
Resolution.
Section 8. City Manager Authority.
The City Manager, or designee, is authorized to take all administrative actions
necessary to implement this Resolution, including approval of repayment schedules,
execution of related internal loan documentation, and coordination of procurement,
budget, and operational actions associated with the golf cart replacement.
Docusign Envelope ID: B09DE37B-7320-8338-81B3-B58D321708C3
Resolution No. 2026-033 Page 3
Section 9. Budget and Accounting Adjustments.
The City Council hereby authorizes the necessary budget adjustments, transfers,
advances, and accounting entries to effectuate the revolving loan authorized by this
Resolution, subject to final review and confirmation by the Finance Director.
Section 10. Severability.
If any section, subsection, sentence, clause, phrase, or portion of this Resolution is
held invalid or unconstitutional, such decision shall not affect the validity of the
remaining portions of this Resolution.
Section 11. Effective Date.
This Resolution shall take effect immediately upon its adoption.
Adopted on June 25, 2026.
Evan Trubee
Mayor
Attest:
Anthony J. Mejia
City Clerk
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2026-033 is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on June 25, 2026, by the
following vote:
Ayes: Harnik, Moreno, Nestande, Pradetto, and Trubee
Noes: None
Absent: None
Abstain: None
Recused: None
In witness whereof, I have hereunto set my hand and affixed the official seal of the City
of Palm Desert, California, on ___________________.
Anthony J. Mejia
City Clerk
Docusign Envelope ID: B09DE37B-7320-8338-81B3-B58D321708C3
7/9/2026
Resolution No. 2026-033 Page 4
Exhibit A
Desert Willow Golf Cart Replacement Revolving Loan Terms
Term Description
Borrowing Fund Desert Willow Operations Fund
Lending Fund Desert Willow Capital Fund
Authorized Purpose Golf cart replacement and directly related
acquisition, delivery, infrastructure,
warranty, and implementation costs
Maximum Authorized Loan Amount $1,723,784.64
Initial Advance Date To be determined
Interest Rate 4% simple interest approximating the
average percentage rate earned by the
City on pooled investments
Repayment Source Desert Willow operating revenues or
other legally available Desert Willow
Operations Fund resources
Repayment Frequency Monthly
Final Maturity Date December 31, 2030
Prepayment Permitted at any time without penalty,
unless otherwise directed by the City
Council
Accounting Treatment To be recorded as an interfund loan or
advance in accordance with applicable
governmental accounting standards and
City financial policies
Docusign Envelope ID: B09DE37B-7320-8338-81B3-B58D321708C3