Now that it’s been a little over a month since the financial audit of the Snow Bowl Redevelopment has been completed, and with an election and town meeting fast approaching, I believe it’s time to sit back and reflect on what has transpired and look forward to how the project is going to be completed. 

The Ragged Mountain Recreation Area Foundation (RMRAF) has committed to fully reimbursing the Town of Camden $743,000. I am grateful for all the hard work the RMRAF has done to raise money and help revitalize the Snow Bowl over the years. The Foundation Members, the Redevelopment Committee, and Donors are hardworking respected individuals within our community who time after time give back without asking for anything in return, and for that I say, “Thank You.” 

The original project was estimated to cost $6.5 million and was to include a lodge. To date, $6.8 million has been spent and the Town does not have a lodge. With that said, I was surprised by the RMRAF’s statement in their “Letter to the Community”. In this letter, the RMRAF stated that “We were as surprised as everyone else to learn of the significant recent cost overruns and current situation”

It is unclear to me how the leadership of the RMRAF could be surprised taking into consideration the cost overruns were not recent and they were aware that invoices had not been submitted to them by virtue of the fact they requested invoices: Consider the following: 

In a 12/3/2014 Pen Bay Pilot article it was reported and acknowledged by former Snow Bowl General Manager Landon Fake, that the project was $500,000 over budget at that time.

On 2/3/2015, the RMRAF and the Ragged Mountain Redevelopment Committee met with the Select Board and it was disclosed that the cost of the Camden Snow Bowl improvement project was now estimated to be $8.4 million…almost $2 million more than originally anticipated.

On 3/2/2015, a Community Meeting was hosted by the RMRAF and the Ragged Mountain Redevelopment Committee to provide a status report and financial review based on their 2/3/2015 meeting with the Select Board.

In their “Letter to the Community”, the RMRAF acknowledged that “After repeated requests to the former Town Manager over the past 18 months by the Ragged Mountain Recreation Area Foundation for financial updates and invoices, it took the efforts of a private citizen and Snow Bowl supporter to bring the project issues to everyone’s attention.”

Based on the last estimate for the lodge of $2.6 million, the project would be at a minimum of $9.4 million, and considering that estimate is almost 2 years old, I think it’s safe to say we’re most likely to be at $10.0 million by the time it’s complete based on the latest lodge design.

Thankfully, The RMRAF has stated that they intend to complete the project as originally intended, but many questions remain unanswered:

1. When does the foundation anticipate that funds will be available to build and pay for a new lodge?

2. What is the current financial condition of the foundation? 

How much cash on hand do they have?

How much pledged money is there?

What are the quality of those pledges, and how has this financial debacle affected the ability for the Foundation to continue to raise funds?

Perhaps the Town, and RMRAF would consider revisiting the design of the lodge by looking back in time. How about a larger, modern version of the lodge that burned in 1967? A daylight basement that would house Administration, Ticket Sales, Ski School, Ski Patrol, etc. The main floor would be large open space, with a commercial kitchen and restrooms. Simple and to the point with a pitched roof. We cannot afford to be all things, to all people, all the time…and maybe a lodge like this could be built for considerably less than $2.6 Million. We’ll never know unless it is considered.

As difficult and embarrassing as it may be for the Select Board, RMRAF, and the Redevelopment Committee, now is the time for all parties to acknowledge what happened, stop placing blame, become transparent in all facets of the redevelopment, and move forward with a positive attitude.

The Final Audit Report

The official Final Audit report on the Snow Bowl Redevelopment Project admonished the Select Board and former town employees for what can only be described as complete and total mismanagement of the project. Contrary to what Town Officials have said, The Town did in fact overspend the project - even when the RMARF reimburses the full $743,134. 

In summary, the Final Audit concluded the following:

The Town did not hire a General Contractor/Project Manager to oversee this multi-million-dollar project as they should have.

Monthly Financial Updates were not provided.

Many accounting Journal Entries were made at year end instead of on a timely basis.

The Town did not require written contracts/agreements with contractors. Change orders were not required and money was spent well above the $2.0 million approved by the voters in November of 2013.

Internal Controls, Policies, and Procurement Procedures were not followed. 

Based on the Town Meeting Vote, the Audit “suggests that the Town approved and paid approximately $750,000 in project expenses beyond the amount approved by the voters.”

Season Tickets and other benefits were given to vendors in exchange for services to mountain operations and redevelopment. 

Salaries of Town Employees were not allocated to the Redevelopment project until correcting journal entries were made. There was an understanding that salaries would be charged to the redevelopment of the project to assist vendors with certain construction projects associated with the redevelopment. These salaries were not included specifically within the redevelopment budget of the mountain.

It was observed that communication (or lack of) during this project between the former Town Manager, former recreation director and former finance director, while dealing with department heads, could have been improved. There appears to have been trust issues between the department heads and former management with the past handling of fiscal information.

The Tubing Hill – Lost $$$ and A Lost Profit Center

The 2006 Horizons Engineering Long Range Plan and Feasibility Study stated the following:

“The tubing hill operation is clearly an attractive and profitable part of the winter operation at the Snow Bowl. Improved snowmaking for an early season opening is important as well as a handle tow lift to take tubes and riders back to the top.”

Considering the tubing area brought in $10,991 in 2012/2013 and an another $12,021 in 2013/2014, it would be interesting to know who made the decision to eliminate a profit center at the Snow Bowl that provided fun for individuals and families that was affordable. Once again, a decision made without thought to the financial ramifications that would result.

Why was the Double Chair Moved – Another Added Expensse 

The 2006 Horizons Report recommended the Double Chair be moved. In 2008, a new Horizons Report simply recommended shortening the existing Double Chair. I can only surmise that the 2008 recommendation was made to reduce redevelopment expense. Given the cost overruns that were already known before the double chair was moved, who made the decision to move rather than shorten the Double Chair at what must have been a considerable expense? 

What’s Next

On April 21, I wrote to the Select Board and asked that they consider eliminating the Parks and Recreation Committee and the Four-Season Committee. My reasoning was that it’s not efficient or productive to have a total of 22 people micro-managing the Snow Bowl General Manager’s efforts.

The Snow Bowl is a business, and it should be run that way by having the Select Board and/or Town Manager give the General Manager the direction they want things to go in. In turn, the General Manager can perform whatever initial research needs to be done, and if he/she feels that assistance is needed, he/she can seek out those individuals with the expertise in the appropriate areas, and he/she can formulate a plan and/or recommendation for the Select Board and/or Town Manager. If at that time the Select Board feels that further study is needed with a committee, then appoint that committee at that time.

Don White was the only Select Board member that answered my email. He responded by saying – “Chris, your suggestion on the committees is way off base.”

He did not offer to speak with me in person or by phone for a civil discussion. Instead, it was a complete dismissal of my suggestion. In my opinion, the Town of Camden is overrun with committees because the Select Board (past and present) does not want to make a decision that might be difficult or controversial…. it’s always easier to have a committee or the voters decide.

The Tannery site is a perfect example…a few neighbors complained (which is their right) about Northeast Ambulance purchasing the site, then all of a sudden, we need to have another new committee, which by the way spent $16,000 on a Committee Facilitator and an additional $25,000 for a Landscape Architect…..$41,000 that was not budgeted for, but spent anyway. Why didn’t the Select Board Liaison (Don White) put a stop to this unbudgeted spending?

Other Financial Ramifications 

The lack of financial and project oversite by Town Officials and the Select Board has resulted in other expenses beside the costs of redevelopment. The DEP has fined The Town of Camden thousands of dollars, and according to Interim Town Manager Roberta Smith, the town has had to borrow money in anticipating of tax revenues. The town paid $2,729 in interest on borrowing in fiscal year 2014, $9,690 in FY 2015 and $12,800 in FY 2016. She expects the interest payment for FY 2017 to be slightly higher than last year…. Considering the Town has historically not borrowed in anticipation of tax revenues, and in FY 2017, the Town borrowed $2.5 million, one must wonder why the Select Board didn’t wonder and ask what was going on?

Annual audits show that in FY 2013, when the town was following its internal policy, Camden had $2.8 million in surplus, and in FY 2014 had $2.7 million in surplus. By FY 2015, surplus had dropped to $1.3 million, according to an annual audit. 

A Bike Park?

Recently, it has been suggested that a Mountain Bike Park be created at the Snow Bowl. While I certainly think this is worthy of consideration, with a projected cost of $549,000 for Phases 1 and 2 and no estimate for Phase 3, now is simply not the time. The citizens and taxpayers of Camden overwhelmingly supported the Snow Bowl with a $2.0-million-dollar bond for the project that included a lodge/community facility and we need to have that in place before any other major projects are considered.

Summary

My suggestions and recommendations are only that. Hopefully, Town and RMRAF Officials will take the time to reflect on what has transpired and begin the healing process. Keeping ideas and thoughts simple with a large dose of common sense will be the key to a successful future for the Snow Bowl.

As you go to the polls on June 13, ask yourself…..Do I want more of the same with the Select Board, or do I want to see change, new faces, and accountability, and transparency.

Chris Morong lives in Camden