DATE: October 12, 2021
SUBJECT:
Title
RESOLUTION APPROVING GRANT OF INDEMNITY TO LORDSTOWN EV SALES LLC RELATED TO PURCHASE OF ELECTRIC TRUCKS
Body
EXECUTIVE SUMMARY:
The District is seeking to participate in San Diego Gas & Electric's (SDG&E) Power Your Drive (PYD) for Fleets program to support private and public fleets to adopt electric medium- and heavy-duty vehicles. Through this program, SDG&E pays for and constructs the necessary infrastructure upgrades up to the charging station unit.
To be eligible for the program and enable SDG&E to begin design work on infrastructure upgrades on District owned property in National City, the District is required to procure at least two medium- or heavy-duty vehicles. Accordingly, Staff would like to place a purchase order with Lordstown EV Sales LLC (Lordstown) for two medium-duty electric pickup trucks. As a condition of sale, Lordstown vehicles can only be used within the United States. As part of the purchasing process, Lordstown requires a purchaser to hold harmless and defend Lordstown from and against any demand, claims, causes of action, damages, costs of any kind, including reasonable and necessary attorney fees, expert witness fees and expenses, and courts costs related to, arising from, or as a result of, purchaser's use of vehicles outside of the U.S.
Staff has determined that accepting the hold harmless clause does not pose unreasonable risk to the District, because the District does not intend to use vehicles purchased from Lordstown outside of the U.S.
The purchase of the trucks is within the contract authority of the CEO, and Board approval is only required as to the indemnity. Staff recommends granting indemnity to Lordstown Motors, by accept the hold harmless clause as written in the Fleet Account Number Application with Lordstown EV Sales LLC.
RECOMMENDATION:
Recommendation
Adopt a resolution approving grant of indemnity to Lordstown EV Sales LLC related to purchase of electric truc...
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