The Bay City ISD transportation team informed trustees that Lion, the electric‑bus manufacturer that had been awarded federal or grant funding for electric buses, notified the district it will not fulfill its production commitment to deliver the buses because of tariff and production issues. District staff said they immediately stopped site preparation work for charging infrastructure that had been under contract with Hunt.

Transportation staff described an aging route fleet (model years approximately 2006–2008) and said two route buses currently do not run. Staff recommended the district purchase two activity buses immediately and plan to fund two new diesel route buses in the 2025–26 budget cycle to reduce downtime and maintenance costs while electric options remain uncertain.

Staff estimated material costs already incurred for charging infrastructure near $260,000 and additional infrastructure labor and materials of roughly $90,000 to $100,000 had been ordered; the district is evaluating funding sources. Bond counsel (identified in meeting materials) advised that bond proceeds could be used to pay some already‑incurred costs; staff said there is also some budget capacity in transportation to cover needed expenses.

Preliminary cost figures mentioned in the meeting: two new route buses at about $155,000 each (approximately $310,000 total), activity buses priced in discussion at about $62,000 each, and one used route bus option available at roughly $70,000 with high mileage. Staff said buying two activity buses now would be the fastest way to get reliable vehicles for extracurricular and activity use; those used activity buses could be driven back from out of state and be in district service before the end of the budget cycle. New route buses would take roughly 60–90 days from order to delivery and fit the districts original electric bus timeline.

Trustees were told the district may rely on bond proceeds and transportation budget capacity to cover immediate needs and would bring solid quotes and formal recommendations to the May board meeting so trustees can approve purchases. Staff described elevated implementation risk because the vendor situation is unresolved and said the district does not expect Lion electric buses to arrive on the original schedule.

No formal purchase vote occurred at the meeting; staff sought board awareness and direction to proceed with obtaining quotes and planning for the budget cycle and to return with formal requests in May.