Governor and Executive Council Agenda item PDF - 2026-03-04 - agenda 48

Meeting Date

2026-03-04

Attachment Kind Label

Agenda item PDF

Attachment Relation

primary_meeting_attachment

Agenda Numbers

48

Agency Names

Department Of Transportation, Department Of Natural And Cultural Resources

Parent Meeting Title

Governor and Executive Council meeting - 2026-03-04

State of New Hampshire

DEPARTMENT OF NATURAL & CULTURAL RESOURCES

OFFICE OF THE COMMISSIONER

172 Pembroke Road Concord, New Hampshire 03301

Phone: 603-271-2411 Fax: 603-271-2629

TDD Access: Relay NH 1-800-735-2964

dncr.nh.gov

LTUfM/

rvEW

MAR 0 A 202b

February 11, 2026

Her Excellency, Governor Kelly A. Ayotte

and the Honorable Executive Council

State House

Concord, New Hampshire 03301

REQUESTED ACTION

In accordance with RSA 12-A:29-b, the Department of Natural and Cultural Resources (DNCR) respectfully requests

approval of the recommendation of the Cannon Mountain Advisory Commission to implement the Cannon Mountain Aerial

Tramway & Ski Area capital improvement project listed in the attached outline, to be funded in the amount of up to

$893,000 by the Cannon Mountain Capital Improvement Fund, effective upon Governor and Executive Council approval.

No general funds will be used. The projects for which funding is being requested are major repairs to our lodges and

facilities, water pipe and hydrant replacements, various lift-related component replacements and additions, major repairs

to our primary mountain work road, and fleet-related equipment as outlined in the attached proposal as recommended by

the Cannon Mountain Advisory Commission.

The Capital Project Overview Committee approved this item on January 12, 2026, (#CAP 26-003). 100% Capital Funds.

Funds are to be budgeted in account 03-35-35-350030-31320000 RSA 12-A:29-B CANNON CAP IMP as follows:

Class-Account-

RG Class Description

FY26 Current

Adjusted

Authorized

Requested

Action

Revised FY26

Adjusted

Authorized

OOS-000030 Capital Funds $1,424,509 $893,000 $2,317,509

Total Revenue $1,424,509 $893,000 $2,317,509

034-500134 Capital Projects $1,424,509 $893,000 $2,317,509

Total Expenses $1,424,509 $893,000 $2,317,509

EXPLANATION

Chapter 134:13, Laws of 1998, authorized the State Treasurer "[t]o provide funds for the Cannon Mountain Capital

Improvement Fund (CMCIF)... to borrow from time to time upon the credit of the State such amounts so that the total

State obligation shall at no time exceed the sum of $6,000,000, and for said purpose may issue bonds and notes at such

time in the name of and on behalf of the State of New Hampshire in accordance with RSA 6-A."

The projected fiscal year 2026 balance available to borrow, opened the year with an amount of $943,564. This request,

while reducing the available balance, still maintains a "not to exceed" total bonding of $6 million as required by Chapter

134:13, Laws of 1998. The Mount Sunapee lease payment revenues provide payment of the debt service for the Cannon

Mountain Capital improvement Fund (CMCIF). Projected growth of base revenue payments to DNCR under Vail Resorts'

ownership is estimated to increase consistently going forward, thus maintaining regular minimum bond payments and

consistently exceeding the minimum amount due which has helped accelerate payoff. Attached you'll find an updated

bonding capacity and debt payment schedule as provided by the NH Treasury Department.

Also attached for your information are the draft minutes from the November 7, 2025 Cannon Mountain Advisory

Commission meeting, at which the attending commission members unanimously recommended this tranche of capital

projects utilizing said $893,000 in CMCIF funds as a not-to-exceed. These infrastructure and equipment projects will help to

continue our strong push to high-quality experiences while also addressing the significant deferred maintenance needs in

the mountain's assets.

Respectfully submitted.

Interim Commissioner

Department of Natural & Cultural Resources

Approved by the Capital Project Overview Committee

January 12,2026 CAP 26-00'

State of New Hampshire

DEPARTMENT OF NATURAL & CULTURAL RESOURCES

DIVISION OF PARKS & RECREATION

172 Pembroke Road Concord, New Hampshire 03301

Phone; 603-271-3556 Fax: 603-271-3553

TDD Access: Relay NH 1-800-735-2964

nhstateparks.org

December 12, 2025

The Honorable David Milz, Chairman

Capital Project Overview Committee

State House

Concord, New Hampshire 03301

REQUESTED ACTION

In accordance with RSA 12-A:29-b, the Department of Natural and Cultural Resources (DNCR) respectfully requests

approval of the recommendation of the Cannon Mountain Advisory Commission to implement the Cannon Mountain

Aerial Tramway & Ski Area capital improvement project listed in the attached outline, to be funded in the amount of up

to $893,000 by the Cannon Mountain Capital Improvement Fund. No general funds will be used. The projects for which

funding is being requested are major repairs to our lodges and facilities, water pipe and hydrant replacements, various

lift-related component replacements and additions, major repairs to our primary mountain work road, and fleet-related

equipment as outlined in the attached proposal as recommended by the Cannon Mountain Advisory Commission.

EXPLANATION

Chapter 134:13, Laws of 1998, authorized the State Treasurer "[t]o provide funds for the Cannon Mountain Capital

Improvement Fund (CMCIF)... to borrow from time to time upon the credit of the State such amounts so that the total

State obligation shall at no time exceed the sum of $6,000,000, and for said purpose may issue bonds and notes at such

time in the name of and on behalf of the State of New Hampshire in accordance with RSA 6-A."

The projected fiscal year 2026 balance available to borrow opened the year with an amount of $943,564. This request,

while reducing the available balance, still maintains a "not to exceed" total bonding of $6 million as required by Chapter

134:13, Laws of 1998. The Mount Sunapee lease payment revenues provide payment of the debt sen/ice for the Cannon

Mountain Capital improvement Fund (CMCIF). Projected growth of base revenue payments to DNCR under Vail Resorts'

ownership is estimated to increase consistently going forward, thus maintaining regular minimum bond payments and

consistently exceeding the minimum amount due which has helped accelerate payoff. Attached you'll find an updated

bonding capacity and debt payment schedule as provided by the NH Treasury Department.

Also attached for your information are the draft minutes from the November 7, 2025 Cannon Mountain Advisory

Commission meeting, at which the attending commission members unanimously recommended this tranche of capital

projects utilizing said $893,000 in CMCIF funds as a not-to-exceed. These infrastructure and equipment projects will help

to continue our strong push to high-quality experiences while also addressing the significant deferred maintenance

needs in the mountain's assets.

ectfully submitted.

arah L. Stewart, Commissioner

Depdi trrienlof Natural & Cultural Resources

12I12I201S

State of New Hampshire

Department of Natural and Cultural Resources

Cannon Mountain Aerial Tramway & Ski Area

Fiscal Year 2026 Cannon Mountain Capital Improvement Fund (CMCIF) Request per RSA 12-A:29-b

Project 1 Estimate 1 Explanation

INFRASTRUaURE IMPROVEMENTS

General facilities major repairs, including

renovations/replacements to bathrooms,

flooring, doors, decks, etc.; Removal of

underground storage tank in Tram Base

terminal motor room and replacement

with above ground storage tank; work road

repairs

$220,000 Critically needed replacements and repairs to Peabody,

Notchview, and Brookside lodges, primarily focused on guest-

facing areas, with a focus on those items that are broken,

corroded, and/or in disrepair; critically needed replacement of

legacy tank system; critically needed regrading, reestablishment,

and material fill of the mountain's primary work road which has

been subject to several years of major washouts.

Sub-Total Infrastructure Improvements $220,000

UFT MAINTENANCE/REPAIRS

Peabody Express lift outer fixed jaw

replacements; Peabody Express lift foot

passenger ramp design, supply, and install

$240,000 20%of outer fixed jaws were placed prior to winter 2025/26 and

we are proactively replacing the remaining 80% of fixed jaws; per

our plan to utilized the flit for scenic chair rides in the summer, we

require foot passenger ramps to safely load/unload.

Sub-Total Lift Maintenance/ Repairs $240,000

SNOWMAKING IMPROVEMENTS

Water pipe replacement - Upper Ravine -

6" replace. Install/tie-ins, excavation,

various materials, valving, etc; Water pipe

addition - Eagle Cliff spur line - 6" replace.

Install/tie-ins, excavation, various

materials, valving, etc; Fischer valve

addition to mainline; Pump 100 full rebuild

$370,000 Pipe on Upper Ravine requires replacement due to corrosion

issues; pipe addition on Eagle Cliff will allow faster completion of

Lower Cannon trail near the lift, given new mainline pipe

alignment (50/50 LWCF split); Fischer valve addition to the

mainline (50/50 LWCF split) for efficiency; pump 100 requires

rebuild (50/50 LWCF split).

Sub-Total Snowmaking Improvements $370,000

MAJOR FLEET-RELATED EQUIPMENT

Commercial shop compressor

replacement; Plow truck replacement

$63,000 Replacement of soon-to-be red-tagged primary shop compressor;

replacement of high-mileage plow truck.

Sub-Total Major Fleet-Related Equipment $63,000

GRAND TOTAL CAPITAL PLAN $893,000 Upgrades and replacements of various infrastructure-related

items and critical equipment.

DRAFT Cannon Mountain Advisory Commission Meeting Minutes

Date: November 7, 2025

Time: 10:00 AM

Location: Franconia Notch State Park Headquarters

Attendance

Members present included Monica Mezzapelle, Frank MacConnell, Susan Ford, Thad Presby, Gil

Talbot, Representative Suzanne Vail, and Brennan Ward. Others present were Jace Wirth, David

Webster (Scribe), interim Director Colin Capelle, and Commissioner Sarah Stewart.

CalLto Order and Approval of Minutes

Frank MacConnell called the meeting to order at 10:00 AM, and a quorum was confirmed,

introductions were made by all members and attendees. Frank reviewed the governing statute and

invited questions; none were raised. He then moved to approve the February 28th meeting minutes,

which were reviewed. A motion to approve was made by Susan Ford and seconded by

Representative Vail. All were in favor. Frank also noted that the August 8th informaltour did not

require approval because no quorum had been present.

Seas on Pass Sales and Market Trends

Jace reported that season pass sales are pacing approximatelyfour percent ahead of prior year.

Growth in the young adult and teen pass categories remains solid. Commissioner Stewart asked

about trends among New Hampshire resident pass holders and whether overall interest by NH

residents has increased or decreased. Jace explained that NH resident pass sales had increased

from prior year but hadn't grown substantially in several years and offered to research the overall

health of the NH resident ski and ride market. Jace reported the three-tiered season pass rate

structure has performed very well, shifting approximately $800,000 in sales from the tier 2

(summer/fall) window into the tier 1 (spring) window, indicative of stronger advanced commitment,

which was a core reason for the implementation.

Pass Refunds and Public Response

Jace stated that roughly $26,000 in pass refunds have been requested to date, but only one refund

was made due to the tram retirement. The majority of the remainder were a result of internal

processing of pass upgrades. He reported that overall passholder reaction to the tram retirement

has been neutral to positive. The committee held additional discussion regarding payment plans,

multi-mountain pass structures, and how operations may evolve between the first and second

years following the tram shutdown.

Employee Orientation. Training, and Retention

Jace reviewed this year's staff orientation and training efforts. New training initiatives include

comprehensive changes to field training and the implementation of e-learning for all staff, with a

focus on lift operations and frontline departments. Investments into grooming training have been

made, with all grooming staff enrolled in workshops and a manufacturer-specific training program.

Jace noted these programs reflect Cannon's continued investment in employee development,

performance, and guest experience.

Representative Vail asked about general wage competitiveness. Jace responded that Cannon's

wages are generally not competitive with the broader industry in most departments. Sarah asked

about non-pay strategies to attract and retain staff. Jace described the general perks and benefits

available to staff, while noting that a mitigating factor with regards to Cannon's wage disparities is

the strong retention rate of seasonal staff (approximately 70 percent), which he attributed to family

connections, a strengthened workplace environment, and the lure of the mountain's history and

heritage. Jace noted that new this year, the resort is also welcoming up to fourteen J-1 visa

employees for lift operations, to solve some of the staffing issues experienced in that department in

recent years. Generally, and given wages and employee origin and commute, housing availability

and affordability in the local area remains a major obstacle to attracting and retaining both full-time

and seasonal staff. Jace noted Cannon is exploringthe potential for dormitory-style employee

lodging using existing facilities.

Tram Structural Analysis^nd Retirement Event

Jace reported that SCJ Alliance and other consulting teams are ahead of schedule in their work,

with field testing to be completed within the next two months and load analysis already occurring.

Because the structural analysis is nearing completion, the Tram project team is beginning to outline

resources necessary for a Request for Bids. He noted he will provide an update to the Capital

Project Overview Committee with more information within the next two months. Jace also noted

that the tram retirement event and associated social media communications received

overwhelmingly positive feedback. Representative Vail praised the execution of the event despite

the short planning window.

Facilities and Renovation Planning

Jace provided an update on facility renovation planning. Agency architects are currently working on

plans for several buildings of concern. He invited the committee to participate in identifying and

prioritizing renovation needs. Additionally, Cannon intends to supplement its internal review of all

components and systems of the Cannonball, Zoomer, and Peabody lifts with a modernization study

to be completed by a lift manufacturer, to verify investment plans and obtain more accurate cost

estimates.

Budget Strategy and CMIF Planning

Jace discussed general budget strategy for the upcoming fiscal years. With the tram offline. Cannon

will rely more heavily on alternative revenue-generating efforts, including expansion of catering and

group programs, monetization of Artist Bluff, and scenic chairlift rides as alternatives. Jace also

expressed an interest in establishing a formal mechanism to accept financial donations, which

would align with long-term capital planning objectives and enable the resort to capture additional

community support.

Capital Projects Review and Approval

Jace reviewed the list of active and proposed capital projects and provided an overview of the

Cannon Mountain Improvement Fund (GMIF) statement, which reflected a projected balance of

$943,564 available for fiscal year 2026. Monica explained how bonding numbers and projections

were developed and noted that Treasury concurs with the projected balance. Jace proposed

funding all level one priority category projects in the detailed capital plan, numbered one through

eleven, for a combined total of $893,000 (not-to-exceed). Nine of the eleven projects are based on

actual estimates, with an added fifteen percent contingency to account for items like unseen

project costs and evolving tariff rates. Monica also commented on capital criteria such as the

twenty-year replacement standard. It was also noted that total costs for projects three through five

are expected to be split with already-awarded LWCF funds. Frank invited final questions on the

proposed projects. Thad motioned to approve items one through eleven, and the motion was

seconded by Susan Ford. All members voted in favor. Those projects as follows:

$150,000 General facilities major repairs, including bathrooms, flooring, doors, decks

$40,000 Tram Base terminal UST removal; above ground tank installation and piping

$75,000 Pipe addition (6") for new Eagle Cliff spur line, split 50/50 with LWCF funds

$50,000 Fischer valve addition (supply/install), split 50/50 with LWCF funds

$30,000 Pump 100 rebuild, split 50/50 with LWCF funds

$215,000 Pipe replacement (6") for Upper Ravine

$200,000 Peabody Express outer fixed jaw replacements

$40,000 Peabody Express foot passenger ramp planning and supplies

$30,000 Work road repairs to regrade and reestablish sections and water bars

$8,000 Vehicle maintenance commercial shop compressor replacement

$55,000 F350 plow truck replacement

New Business and Adjournment

Frank proposed organizing an informal CMAC ski gathering for members. The next meeting is

scheduled for March 13, 2026. Frank then motioned to adjourn the meeting at 11:37 AM, and the

motion was seconded by Representative Vail.

state of New Hampshire - Department of Natural and Cultural Resources (DNCR)

Cannon Mountain Capital Improvement Fund (CMCIF) RSA 12-A;29-c

Consolidated Financial Statements 12/19/2025

Actuals Projected

Fiscal Year s>

Beginning Balance • Available Prirwilple to Borrow

Principle increase from Debt Service Payment

2020 2021 2022 2023 2024 2025 2026 2027

$ 3,525,874

% 290,495

$ 3,062,372

$ 317,785

$ 2,189,372

$ 400^870

$ 2,190,242

$ 425,313

$ 2,215,555

$ 406,240

$ 1,573,304

$ 434,355

$ 544.159

$ 399,405

$ 50,564

$ 367,077

Total Fiscal Year Borrowirtg Capacity (before Est Expenses or New Draw) $ 3,816,369 $ 3,360,157 $ 2,590,242 $ 2,615,555 $ 2,621,794^S 2.007.659 $ 943.564 S 417,641

Bonding Issuance Amounts (Based on actual expenses incurred)

Draw Requests Approved but not yet bonded:

FY 202S*CAP 24-010,10/2/2024

FY 2025 «CAP 25.008, 6/30/2025

Forecasted Draw requests

Estimated Bonding Issuance Amounts per Fiscal Year

S (753.997)5 (1,220,763)$ (400,000)$ (400,000)$ (1,048,490)$

$ (709,500)

$ (754,000)

$

$

$ (893.000)

I

$

$

Ending Balance - Availat}le Principle to Borrow $ 3,062,372 $ 2,159,394 $ 2,190,242 $ 2,215,555 $ 1,573,304 $ 544,159 $ 50,564 $ 417,641

n. Debt Service Payment Re'cbnclllatlon Statement ■ 3NH General ledger 03^5^5-351510-370s0000 CMCIF Debt Service

Actuals Projected

Fiscal Year ■> 2020 2021 2022 2023 2024 2025 2026 2027

Beginning Debt Service Fund Balance - 03.35-35-351510-37050000 $ (199.292) $ (241.549) $ (64.004) $ 98,825 $ 301,702 $ 605,374 $ 864,668 3 1,173,550

Revenue from Sunapee lease payment $ 356,426 $ 586,118 $ 747,806 $ 812,734 $ 695,546 $ 893,785 $ 918,000 S 944,000

Debt Service Issues:

A Debt service Issued as of 6/30/2009 but prior to 2014 $ 163,769 $ 120,188 $ 106.362 S 73.368 S 70.822 $ 68,680 3 52.380 $ 50,652

B Actual for bonding in FY 2014 $489,125 Issue #N219S $ 36,461 $ 43.741 $ 42,111 S 40,481 $ 6,257 $ 6,257 3 25.847 $ 25,063

C Actual for bonding in FY 2015 $260,325 Issue #N222S $ 25,119 $ 24,338 $ 23,567 3 22,776 3 21,995 $ 18,612 $ $

D Re-Furxling Bond Issue Adjustment FY 2017 #N226 on Pre 2009 Issues $ 4,760 S 4,554 S 235 3 1,854 $ 2.330 $ 825 3 S

E Actual bonding for FY 2017 $1,215,210.00 Issue #N227S S 127.322 $ 123,270 S 119,218 3 115,166 $ 111,114 3 97,062 $ 103,010 $ 66,580

F Actual for bonding in FY 2019 $356,510 Issue # 232 s 41,252 $ 36,250 $ 35,162 S 34,082 S 33,013 3 31,943 $ 30,873 3 29,804

G Actual for bonding in FY 2020 $753,997 Issue # 235 $ - s 81,850 s 79.586 $ 77,322 $ 75,058 $ 77,794 S 70.484 3 68.222

H Actual for bonding in FY 2021 $1,220,763 Issue # 237 s - $ (25,617) $ 129,566 S 125,902 $ 122,237 $ 108,573 S 114,908 3 111,243

1 Refunding Bond Issue Adjustment FY 2021 #238 on pre-2009 issues $ $ 2,628 S 1,754 $ 6.742 $ 12,583 s 3.847 $ 3,745

J Refunding Bond Issue Adjustment FY 2021 #239 on pre-2009 issues $ $ 46.661 3 74.857 $ 59.185 $ £.

S

K Actual for bonding in FY 2022 $400,000 IS5i« # 240 $ -

S 42,295 s 42.341 $ 50,280 S 39,939 s 38.738

L Actual for bonding in FY 2023 $400,000 Issue #243 s - S - $ 40,780 $ 42,835 £ 41,633 s 40,431

M Actual bonding In FY 2024 • $1,048,490 Issue #246 s - s -

3 3 98,852 $ 112,188 s 109,043

N Actual tending in FY 2025 ' $28,294 Issue #247 s -

3 - S $ $ 3,030 3 3,027

0 Actual bonding in FY 2025 - $134,246 Issue #248 S 31,180 S 26,523

P FCST bonding m FY 2026 - $600,000 S -

s 66,000

Total Debt Service Expense (Combined Int & Prirtciple) s 398,683 $ 408,574 $ 584,977 $ 609,857 $ 591,874 $ 614.294 $ 629,318 $ 639,072

Annual Revenue Over (Under) Debt Service (42,257) 177,544 162,829 202,877 303,671 279.491 288,682 304,928

Ending Debt Service Fund Balance- Fiscal Year End of June 30** $ (241,549) $ (64,004) $ 98,825 $ 301,702 $ 605,374 3 864.868 S 1.173.550 $ 1,478,478

Noto«:

1

2

3

4

5

**Oebl Service Fund balance reprasenis accrued revenue ir excess c^debt payments

i:

Revenue projecdcn esiimetes based on estimate of 3% growtb each year.

Actual Revenue In FY 2020 of S356k reflects change in contract terms for timing of posting of revalue.

Future Bond Issues projected @ 5% Interest Rate.

Projected Oebl Service is based on future trting of issuance of treasury bonding of approved capital spending. Projections may shift to taler fiscal years dependlr>g on date of bond issues.

Debt Service figures for pro|ected fiscal years are forecasted/estimated par Treasury as reported

CMCIF FCST Summary StatamerU Cannon Mountain Cap Imp Fund Model Projection