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WESTERN REGIONAL WATER COMMISSION

AGENDA

Wednesday, September 21, 2016 9:00 a.m.

Sparks Council Chambers, Legislative Building 745 Fourth St., Sparks, Nevada

TRUSTEES

Vaughn Hartung, Chairman Jenny Brekhus Charlene Bybee Naomi Duerr, Vice Chair Jeanne Herman Bob Lucey Sandra Ainsworth, Secretary-Treasurer

Ron Smith

NOTICE OF POSSIBLE QUORUM OF THE BOARD OF DIRECTORS OF THE TRUCKEE MEADOWS WATER AUTHORITY (“TMWA”), AND/OR A POSSIBLE QUORUM OF THE WASHOE COUNTY COMMISSION

(See ‘Notes’)

Notes: Because several of the Western Regional Water Commission ("WRWC") Trustees are also members of the Board of Directors of TMWA and/or the Board of County Commissioners (“BCC”), it is possible that a quorum of the TMWA Board and/or a quorum of the BCC may be present. Such members will not deliberate or take action at this meeting as members of the TMWA Board or the BCC, but may take action exclusively in their capacity as WRWC Trustees.

1. Items on this agenda on which action may be taken are followed by the term "For Possible Action". Non-action items are followed by an asterisk (*).

2. Public comment is limited to three minutes per speaker and is allowed during the public comment periods, and before action is taken on any action item. Comments are to be directed to the Commission as a whole. Persons may not allocate unused time to other speakers. The public may sign-up to speak during the public comment period or on a specific agenda item by completing a “Request to Speak” card and submitting it to the clerk.

3. Items on this agenda may be taken out of order, combined with other agenda items for consideration, removed from the agenda, or delayed for discussion at any time. Arrive at the meeting at the posted time to hear item(s) of interest.

4. Supporting material provided to the Commission for items on the agenda is available to members of the public at the Western Regional Water Commission ("WRWC") offices, 1001 E 9th Street, Reno, NV, from Jim Smitherman, Water Resources Program Manager, (775) 954-4657, and on the WRWC website at http://www.wrwc.us

5. The Sparks Council Chambers are accessible to the disabled. We are pleased to make reasonable accommodations for persons who are disabled and wish to attend meetings. If you require special arrangements for the meeting, please call (775) 954-4665 no later than 24 hours prior to the meeting.

6. In accordance with NRS 241.020, this agenda has been posted at the following locations: Reno City Hall (1 East First Street), Sparks City Hall (431 Prater Way), Sparks Justice Court (1675 East Prater Way), Sun Valley GID (5000 Sun Valley Blvd.), TMWA (1355 Capital Blvd.), Washoe County Administration Building (1001 E. 9th Street), Second Judicial District Court/Courthouse (75 Court Street), Washoe County Central Library (301 South Center St.), Washoe County Community Services Department (1001 E. 9th Street), Galena Market (19990 Thomas Creek Rd.), Galena High School (3600 Butch Cassidy Way), South Valleys Library (15650A Wedge Parkway), the WRWC website: http://www.wrwc.us and the State of Nevada website at https://notice.nv.gov

1. Roll Call and Determination of Presence of a Quorum. *

2. Pledge of Allegiance. *

3. Public Comment – limited to no more than three minutes per speaker. *

4. Approval of Agenda. (For Possible Action)

5. Approval of the Minutes of the August 17, 2016, meeting. (For Possible Action)

http://www.wrwc.us/

http://www.wrwc.us/

https://notice.nv.gov/

Western Regional Water Commission Agenda for September 21, 2016 6. Consent (For possible approval without discussion.)

Approval of a no cost six month extension of time to the Interlocal Agreement (“ILA”) with Washoe County for Phase II of the Septic Nitrate Baseline Data and Risk Assessment Study, to allow for completion of the final report; and, if approved, authorize the Chairman to execute an amendment to the ILA for that purpose – Chris Wessel, WRWC Water Management Planner. (For Possible Action)

7. Discussion and possible approval of the fiscal year 2015 - 2016 Western Regional Water Commission ("WRWC") financial statements and audit opinion, and possible direction to staff – Ben Hutchins, Director, Finance and Administration Division, Washoe County Community Services Department, and Zeth Macy, Schettler Macy & Associates, LLC. (For Possible Action)

8. Discussion and possible designation of Schettler, Macy & Associates, LLC as the external auditors for the fiscal year 2016 - 2017 WRWC financial statement audit; and, if approved, authorize the Chairman to execute the related Engagement Letter, and direct staff to file the required documents with the State of Nevada – Ben Hutchins. (For Possible Action)

9. Report by the Desert Research Institute (“DRI”) on its Cloud Seeding Operations for the Truckee River and Lake Tahoe Basins for the past water year, and efforts to secure funding from other cloud seeding beneficiaries; discussion and possible approval of funding in an amount not to exceed $100,000 from the Regional Water Management Fund ("RWMF") to support similar Cloud Seeding Operations for the upcoming water year; if approved, authorize the Chairman to execute an ILA with DRI for that purpose; and possible direction to staff – Chris Wessel, and Frank McDonough, DRI. (For Possible Action)

10. Presentation by DRI on the project supported by the RWMF for evaluation of long-term regional precipitation / climate variability data, and continuation of regional precipitation monitoring; and possible direction to staff – Chris Wessel, and Dan McEvoy, Ph.D., Climatologist, DRI. (For Possible Action)

11. Discussion and possible direction to staff regarding agenda items and dates for future WRWC meetings – Jim Smitherman. (For Possible Action)

12. Commission Comments *

13. Staff Comments *

14. Public comment – limited to no more than three minutes per speaker *

15. Adjournment. (For Possible Action)

DRAFT

WESTERN REGIONAL WATER COMMISSION BOARD OF TRUSTEES

MINUTES

Wednesday, August 17, 2016

The regular meeting of the Western Regional Water Commission (“WRWC”) Board of Trustees was held on Wednesday, August 17, 2016, at the Sparks Council Chambers, Legislative Building, 745 Fourth Street, Sparks, Nevada.

1. Roll Call and Determination of Presence of a Quorum

Chairman Hartung called the meeting to order at 8:07 a.m. There was a quorum present.

Commissioners Present: Appointed by: Sandra Ainsworth Sun Valley General Improvement District (“SVGID”) Jenny Brekhus Truckee Meadows Water Authority (“TMWA”), City of Reno

WRWC member Charlene Bybee TMWA, City of Sparks WRWC member Naomi Duerr City of Reno Vaughn Hartung Washoe County Jeanne Herman TMWA, Washoe County WRWC member

Commissioners Absent: Appointed by: Ron Smith City of Sparks Bob Lucey TMWA, as successor to South Truckee Meadows

General Improvement District (“STMGID”)

2. Pledge of Allegiance

The Pledge of Allegiance was led by John Martini.

3. Public Comment

None

4. Approval of Agenda (For Possible Action)

COMMISSIONER DUERR MADE A MOTION TO APPROVE THE AGENDA, SECONDED BY COMMISSIONER HERMAN. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

5. Approval of the Minutes of the May 18, 2016, Meeting (For Possible Action)

COMMISSIONER DUERR MADE A MOTION TO APPROVE THE MAY 18, 2016, MINUTES, SECONDED BY COMMISSIONER HERMAN. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT

9-21-16: WRWC Agenda Item 5

DRAFT

Minutes of WRWC Meeting of August 17, 2016 Page 2 of 5

6. Report from the Regional Effluent Management Team; review and possible approval of

a proposal for a 4-year project entitled “Advanced Water Treatment Technologies Demonstration” and budget, not to exceed $155,699 for fiscal year 2016-2017 and a total of $676,475 from the Regional Water Management Fund (“RWMF”); if approved, authorize the Chairman to execute an interlocal agreement with the University of Nevada, Reno for that purpose; and possible direction to staff – Jim Smitherman, WRWC Water Resources Program Manager, and Rick Warner, Washoe County Community Services Department. (For Possible Action)

Jim Smitherman presented information included in the staff report regarding the Regional Effluent Management Team’s report and project proposal.

Rick Warner and John Enloe, TMWA, presented more detailed information regarding the proposed Advanced Water Treatment Technologies Demonstration Project. The project proposal is included as an attachment to the staff report for the record.

Mr. Warner explained to Commissioner Brekhus that the project's primary objective is to study feasibility.

Mr. Enloe further explained that this project could create another water resource independent of the Truckee River, but no use is identified at this time.

Commissioner Brekhus discussed the value of conservation programs and the need for this project to be an open forum so the public can be engaged and better informed.

At Commissioner Duerr’s request, Mr. Warner reviewed the portion of the presentation regarding the budget and answered funding questions.

COMMISSIONER DUERR MADE A MOTION TO APPROVE THIS ITEM PER THE STAFF RECOMMENDATION INCLUDED IN THE STAFF REPORT, SECONDED BY COMMISSIONER HERMAN. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

7. Acceptance of a Clean Water Act grant in the amount of $40,000 to offset funding for the Bedell Flat Rapid Infiltration Basin Investigation; if accepted, ratify the Chairman’s prior execution of a Subgrant Agreement with the Nevada Division of Environmental Protection (“NDEP”) for that purpose – Jim Smitherman. (For Possible Action)

Mr. Smitherman presented information included in the staff report regarding the Clean Water Act grant.

CHAIRMAN HARTUNG MADE A MOTION TO ACCEPT THE $40,000 GRANT FROM THE STATE TO OFFSET FUNDING FOR THE BEDELL FLAT RAPID INFILTRATION BASIN FEASIBILITY PROJECT AND RATIFY HIS PRIOR EXECUTION OF THE SUBGRANT AGREEMENT, SECONDED BY COMMISSIONER HERMAN. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

DRAFT


8. Presentation of the draft 2016 Washoe County Consensus Population Forecast;

discussion and possible determination that the draft consensus population forecast for 2036 can be supported by the sustainable water resources set forth in the Regional Water Management Plan (“RWMP”); and possible direction to staff – Jeremy Smith, Ph.D., Truckee Meadows Regional Planning Agency (“TMRPA”), and Jim Smitherman. (For Possible Action)

Dr. Jeremy Smith, TMRPA, gave an overview of the 2016 Washoe County Consensus Population Forecast and answered questions from the Commission.

Mr. Smitherman reported on the comparison of the forecast to the water resources in the RWMP. The NNWPC recommendation to the WRWC is that the draft Consensus Forecast Population Forecast is less than the estimated population that could be served by the sustainable water resources.

COMMISSIONER DUERR MADE A MOTION TO DETERMINE THAT THE DRAFT CONSENSUS FORECAST POPULATION FOR 2036 CAN BE SUPPORTED BY THE SUSTAINABLE WATER RESOURCES SET FORTH IN THE RWMP, SECONDED BY COMMISSIONER HERMAN. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

9. Presentation of regional water use and wastewater flow projections, a 20-year analysis using various spatial growth scenarios; and possible direction to staff – Jeremy Smith, TMRPA. (For Possible Action)

Dr. Smith presented information included in the staff report regarding water and wastewater projections, and growth scenarios.

COMMISSIONER BYBEE MADE A MOTION TO ACCEPT THE REPORT, SECONDED BY COMMISSIONER AINSWORTH. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

10. Discussion and possible approval of a scope of work and budget, not to exceed $20,176 from the RWMF, for the Truckee River Information Gateway (“TRIG”) website program upgrades and annual maintenance; if approved, authorize the Chairman to execute an interlocal agreement with the City of Reno for that purpose; and possible direction to staff – Jim Smitherman. (For Possible Action)

Mr. Smitherman presented information included in the staff report regarding the proposed scope of work and budget for program upgrades and annual maintenance for the TRIG website.

COMMISSIONER BREKHUS MADE A MOTION TO APPROVE THE PROPOSED TRIG SCOPE OF WORK AND BUDGET FOR WEBSITE PROGRAMS UPGRADES AND ANNUAL MAINTENANCE, AND AUTHORIZE THE CHAIRMAN TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CITY OF RENO FOR THAT PURPOSE, SECONDED BY COMMISSIONER HERMAN. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

11. Review and possible approval of a revised schedule for completion of the RWMP 2016 update; and possible direction to staff – Jim Smitherman. (For Possible Action)

DRAFT


Mr. Smitherman presented information included in the staff report requesting an extension of the schedule for completion of the RWMP update.

Commissioner Duerr discussed the importance of allowing sufficient time for public input.

COMMISSIONER DUERR MADE A MOTION TO APPROVE THE REVISED SCHEDULE, SECONDED BY COMMISSIONER BYBEE. THE MOTION CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

12. Report and discussion on the procedure for and possible consequences of 1) the dissolution of the WRWC; or 2) the transfer of the powers, duties and responsibilities of the WRWC to another regional governing board; and possible direction to staff (continued from May 18, 2016 meeting) – Jim Smitherman and John Rhodes, WRWC Legal Counsel. (For Possible Action)

Chairman Hartung stated that today’s meeting is proof that the WRWC has great purpose. There are very crucial and complex issues that the WRWC has staff and staff of other agencies studying.

Mr. Smitherman and John Rhodes, Legal Counsel, presented information included in the staff report and answered questions from the Commissioners regarding the WRWC make-up and possible procedures to transfer the duties of the WRWC to another regional governing board or substitute another existing board, with or without possible membership changes, for the WRWC board.

Chairman Hartung stated that the board and staff are dealing with some front-line issues and he is not convinced that dissolving the WRWC would be wise at this time.

Commissioner Duerr agreed with Chairman Hartung and stated that some excellent information was presented this morning. She added that combining meetings with the TMWA board would not allow adequate time to focus on broad, regional issues, and emphasized the need for that kind of time. Commissioner Duerr also expressed her desire for continued representation by Sun Valley GID, and possibly for other entities, such as the Flood Authority, and concluded by saying she would like to see the WRWC continue and not discuss this again this biennium.

Commissioner Bybee asked several questions concerning the transfer of duties to, or substitution of another governing board, which were answered by Mr. Rhodes.

Commissioner Herman stated that any change would be complicated, that reaching a decision would take a great amount of time, and there is no time to get it done before the coming legislative session.

COMMISSIONER BREKHUS MADE A MOTION TO TAKE NO ACTION AND HAVE STAFF BRING BACK A REPORT ON THE HISTORICAL MEMBERSHIP OF THE TMWRF SEAT. Mr. Rhodes stated that the TMWRF position has been held by the Mayor of Sparks, Gino Martini, since the formation of the WRWC.

COMMISSIONER DUERR SECONDED THE MOTION AND REQUESTED THAT IT BE AMENDED TO RECONFIRM THE SUPPORT AND EXISTENCE OF THE WRWC, RATHER THAN TO TAKE NO ACTION. COMMISSIONER BREKHUS WITHDREW HER

DRAFT


MOTION, AND SECONDED THE AMENDED MOTION. THE MOTION, AS AMENDED, CARRIED UNANIMOUSLY WITH SIX (6) MEMBERS PRESENT.

13. Discussion and possible direction to staff regarding agenda items and dates for future WRWC meetings – Jim Smitherman. (For Possible Action)

The next WRWC meeting will be held at 9:00 a.m. on September 21, 2016.

No action was taken.

14. Commission Comments

None

15. Staff Comments

None

16. Public Comment

None

17. Adjournment (For Possible Action)

The meeting was adjourned at 9:57 a.m.

Respectfully submitted by, Christine Birmingham, Recording Secretary

Approved by Commission in session on ________________ 2016.

_____________________________ Chairman Vaughn Hartung


Western Regional Water Commission

STAFF REPORT DATE: September 15, 2016 TO: Chairman and Members, Western Regional Water Commission ("WRWC") FROM: Chris Wessel, Water Management Planner SUBJECT: Possible approval of a no cost six month extension of time to the Interlocal

Agreement (“ILA”) with Washoe County for the project entitled “Septic Nitrate Baseline Data and Risk Assessment Study, Phase II: In-Depth Analysis of Prioritized Study Areas, Creation of Baseline Data Set, and Risk Assessment” (“Phase II Study”), to allow for completion of the final report; if approved, authorize the Chairman to execute an amendment to the ILA for that purpose.

SUMMARY The Washoe County Community Services Department (“CSD”) staff has completed domestic well sampling and lab analysis data compilation tasks for the Phase II Study. CSD staff provided a presentation on the final report findings to the Northern Nevada Water Planning Commission (“NNWPC”) at the August 3, 2016 NNWPC meeting. At that time, CSD requested a time extension to the ILA to allow for the completion of the final report, and to conduct additional public outreach. The NNWPC requested that a proposal be developed for the added scope of work, and that it be brought back for consideration. At the August 7, 2016 NNWPC meeting, CSD staff informed the NNWPC that it had decided not to proceed with additional public outreach. However, CSD and staff did request both an extension of time to complete the final report, at no additional cost, and a retroactive amendment to the ILA to ratify the use of preliminary data by the County for the already completed timely notification of residents in study areas with identified nitrate levels at or above the Maximum Contaminant Level ("MCL"). The proposed Second Amendment to the ILA is attached. BACKGROUND The Phase II Study is being conducted by CSD through an ILA with the WRWC. The project is a follow up to the initial study Septic Nitrate Baseline Data and Risk Assessment Study for Washoe County, Phase I: Prioritization of Study Areas & Assessment of Data Needs, which was also funded by the Regional Water Management Fund and conducted by CSD (then Washoe County Department of Water Resources) staff. The Phase I study identified areas of historic high density septic system clusters and attempted to rank them based on their potential for nitrate contamination of groundwater. The final report acknowledged data gaps for several of the high density septic system areas identified and recommended follow up work.

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FISCAL IMPACT The requested amendment and time extension will have no fiscal impact. RECOMMENDATION The NNWPC recommends that the WRWC approve a Second Amendment to the ILA for the Phase II Study, for a no cost extension of time, and to ratify the County's use of data obtained to provide timely notification to residents in certain study areas with identified nitrate levels at or above the MCL. POSSIBLE MOTION “Move to approve the proposed Second Amendment to the ILA for the Phase II Study, and authorize the Chairman to execute the Amendment. CW:df



STAFF REPORT

DATE: September 15, 2016 TO: Chairman and Members, Western Regional Water Commission ("WRWC") FROM: Ben Hutchins, Director, Finance & Administration Division, Washoe County

Community Services Department (“CSD”) SUBJECT: Discussion and possible approval of the fiscal year 2015 - 2016 WRWC financial

statements and audit opinion, and possible direction to staff.

___________________________________________________________________________

SUMMARY The attached report presents the WRWC's financial statements for the year ended June 30, 2016, and the auditor’s opinion thereof. It is the auditor’s expressed opinion that the financial statements present fairly, in all material respects, the financial position of the WRWC as of June 30, 2016, and the changes in its financial position and budgetary comparison for the year then ended in conformity with accounting principles generally accepted in the United States of America. The report is being presented for consideration, discussion and approval. PREVIOUS ACTION On November 18, 2015, the WRWC voted to designate Schettler, Macy & Associates, LLC as the WRWC’s external auditors for fiscal year 2015 - 2016. BACKGROUND Pursuant to NRS 354.624, each local government shall provide for an annual audit of its financial statements. In keeping with this statute, the WRWC engaged Schettler, Macy & Associates, LLC to provide the audit services of its financial statements for the year ending June 30, 2016. The audit results, and opinion and findings of the auditor, must be presented at a meeting of the governing body and immediately thereafter filed as a public record with the secretary of the governing body, the county clerk, and the Nevada Department of Taxation. FISCAL IMPACT None. RECOMMENDATION Staff recommends that the WRWC approve the financial statements and audit opinion from Schettler, Macy & Associates, LLC for fiscal year 2015 - 2016. POSSIBLE MOTION Should the Commission agree with the above recommendation, a suggested motion is: “Move to approve the WRWC financial statements and audit opinion from Schettler, Macy & Associates, LLC for fiscal year 2015 - 2016, and direct staff to file the same as a public record, as required by law.” Attachment: Financial Statements

WESTERN REGIONAL

WATER COMMISSION

Financial Statements

JUNE 30, 2016

9-21-16: WRWC Agenda Item 7Attachments


TABLE OF CONTENTS

JUNE 30, 2016

PAGE

INDEPENDENT AUDITORS’ REPORT 1

MANAGEMENT’S DISCUSSION AND ANALYSIS 3

FINANCIAL STATEMENTS

Government‐Wide Financial Statements:

Statement of Net Position 8

Statement of Activities 9

Fund Financial Statements:

Balance Sheet ‐ Governmental Fund 10

Reconciliation of the Governmental Fund Balance Sheet

to the Statement of Net Position 11

Statement of Revenues, Expenditures, and Changes

in Fund Balance ‐ Governmental Fund 12

Reconciliation of the Governmental Fund Statement of

Revenues, Expenditures, and Changes in Fund Balance

to the Statement of Activities 13

Statement of Revenues, Expenditures, and Changes in

Fund Balance – Budget and Actual – General Fund 14

Notes to Financial Statements 15

COMPLIANCE SECTION

Report on Internal Control over Financial Reporting

and on Compliance and Other Matters Based on

an Audit of Financial Statements Performed in

Accordance with Government Auditing Standards 23

Auditors’ Comments 25

110 Country Estates Circle Suite 2 | Reno NV 89511 | Ph: 775.624.9108 | Fax 888.506.8025 | schettlermacy.com

INDEPENDENT AUDITORS’ REPORT

To the Board of Trustees of the


Reno, Nevada

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and the General

Fund of the Western Regional Water Commission (Commission) as of and for the year ended

June 30, 2016, and the related notes to the financial statements, which collectively comprise the

Commission’s basic financial statements, as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this includes

the design, implementation, and maintenance of internal control relevant to the preparation and fair

presentation of financial statements that are free from material misstatement, whether due to fraud or

error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We

conducted our audit in accordance with auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing Standards,

issued by the Comptroller General of the United States. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements are free of

material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures

in the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of

significant accounting estimates made by management, as well as evaluating the overall presentation of

the financial statements.

2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the

financial position of the governmental activities and the General Fund of the Western Regional Water

Commission as of June 30, 2016, and the respective changes in its financial position and the budgetary

comparison for the General Fund for the year then ended in conformity with accounting principles

generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

management’s discussion and analysis on pages 3 through 7 be presented to supplement the basic

financial statements. Such information, although not a part of the basic financial statements, is required

by the Governmental Accounting Standards Board, who considers it to be an essential part of financial

reporting for placing the basic financial statements in an appropriate operational, economic, or

historical context. We have applied certain limited procedures to the required supplementary

information in accordance with auditing standards generally accepted in the United States of America,

which consisted of inquiries of management about the methods of preparing the information and

comparing the information for consistency with management’s responses to our inquiries, the basic

financial statements, and other knowledge we obtained during our audit of the basic financial

statements. We do not express an opinion or provide any assurance on the information because the

limited procedures do not provide us with sufficient evidence to express an opinion or provide any

assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated

September 14, 2016, on our consideration of the Commission’s internal control over financial reporting

and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant

agreements and other matters. The purpose of that report is to describe the scope of our testing of

internal control over financial reporting and compliance and the results of that testing, and not to

provide an opinion on internal control over financial reporting or on compliance. That report is an

integral part of an audit performed in accordance with Government Auditing Standards in considering

the Commission’s internal control over financial reporting and compliance.

Reno, Nevada

September 14, 2016


MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2016

3

As management of the Western Regional Water Commission (Commission), we offer

readers of the Commission’s financial statements this narrative overview and analysis of

the financial activities of the Commission for the fiscal year ended June 30, 2016. We

encourage readers to read the information presented here in conjunction with additional

information that we have furnished in the Commission’s financial statements, which follow

this narrative.

The Commission was created on April 1, 2008 upon passage of 2007 Nevada Legislature

Senate Bill 487 to improve water resource planning at the regional level and facilitate

coordinated resource management among the four then existing public water purveyors of

Washoe County (Truckee Meadows Water Authority, Washoe County Water Resources,

Sun Valley General Improvement District and South Truckee Meadows General

Improvement District).

A cooperative agreement was entered into upon the creation of the Commission among the

following member agencies at the time: the cities of Reno and Sparks, the South Truckee

Meadows General Improvement District, the Sun Valley General Improvement District, the

Truckee Meadows Water Authority, and Washoe County, to form a Joint Powers Authority

to operate the Commission.

On December 31, 2014, the Truckee Meadows Water Authority assumed the assets and

obligations of the Washoe County and South Truckee Meadows General Improvement

District water utilities. Washoe County is still in existence and plays an integral part in the

cooperative agreement; however, the South Truckee Meadows General Improvement

District has been dissolved. To this end, the Commission is directed by a Board of Trustees

composed of members from each of the original governing agencies, excluding the South

Truckee Meadows General Improvement District.

Financial Highlights

The Commission’s Government‐wide net position decreased by $87 thousand to

$1.16 million.

The Commission’s General Fund reported a decrease in fund balance of $86

thousand to $1.19 million.



JUNE 30, 2016

4

Governmental Activities:

General revenues decreased by nearly $102 thousand or 7% from the prior year.

Expenses decreased by $405 thousand or 22% from the prior year. This decrease

is largely due to a reduction in water‐rights purchases made in the current year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the Commission’s

basic financial statements. The Commission’s basic financial statements consist of three

components; the 1) Government‐wide financial statements, 2) Fund financial statements

and 3) Notes to the financial statements.

Government‐Wide Financial Statements

The government‐wide financial statements are designed to provide the reader with a broad

overview of the Commission’s finances, similar in format to a financial statement of a

private‐sector business.

The Statement of Net Position presents information on all of the Commission’s assets, plus

deferred outflows of resources, less liabilities, less deferred inflows of resources, with the

balance reported as the net position. Over time, increases or decreases in net position may

serve as a useful indicator of whether the financial position of the Commission is

improving or deteriorating.

The Statement of Activities presents information showing how the Commission’s net

position changed during the most recent fiscal year. All changes in net position are

reported as soon as the underlying event giving rise to the change occurs, regardless of the

timing of the related cash flows. Thus, revenues and expenses are reported in the statement

for some items that will only result in cash flows in future fiscal periods.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources

that have been segregated for specific activities or objectives. The Commission uses fund

accounting to ensure and reflect compliance (or non‐compliance) with finance‐related legal

requirements, such as the Nevada Revised Statutes (NRS) and the Commission’s

regulations.



JUNE 30, 2016

5

Unlike the government‐wide financial statements, fund financial statements focus on near‐

term inflows and outflows of spendable resources, as well as on balances of spendable

resources available at the end of the fiscal year.

The Commission’s General Fund is a governmental fund. Governmental funds focus on

how assets can be readily converted into cash, and what monies are left at year‐end that

will be available for spending in the next year. Governmental funds are reported using an

accounting method called modified accrual accounting that provides a short‐term spending

focus. As a result, the governmental fund financial statements give the reader a detailed

short‐term view that helps him or her determine if there are more or less financial

resources available to finance the Commission’s programs.

Notes to Financial Statements

The notes to the financial statements provide additional information which is essential for a

full understanding of the information provided in the government‐wide and fund financial

statements.

Government‐Wide Financial Analysis

The following is a summary of the Commission’s government‐wide Statement of Net

Position as of June 30, 2016 and 2015:

2016 2015

Assets

Current assets 1,544,991$ 1,545,846$

Liabilities

Current liabilities 353,386 268,888

Long‐term liabilities 28,022 25,918

381,408 294,806

Net Position

Unrestricted 1,163,583$ 1,251,040$

WESTERN REGIONAL WATER COMMISSION NET POSITION



JUNE 30, 2016

6

Governmental Activities

The Commission’s governmental activities for the years ended June 30, 2016 and 2015 are

presented in the following table:

CHANGES IN NET POSITION

2016 2015

Revenues

General revenues:

Water surcharge fees 1,355,733$ 1,466,562$

Earnings on investments 27,587 18,891

Total Revenues 1,383,320 1,485,453

Expenses

Services and supplies 1,470,777 1,875,296

Total Expenses 1,470,777 1,875,296

Change in Net Position (87,457) (389,843)

Net Position, July 1 1,251,040 1,640,883

Net Position, June 30 1,163,583$ 1,251,040$


Economic Factors / Next Year’s Budget / Other Significant Matters

Overall revenue was 6.9% less than the previous fiscal year due to conservation efforts in

the region. In the opinion of management, revenue is sufficient and will continue to be

stable since member purveyors regularly monitor water rates to insure an acceptable level

of cash flow for operations. As a result, a consistent and stable source of revenue should

continue to provide sufficient financial resources for the Commission to achieve its desired

goals and objectives.



JUNE 30, 2016

7

Unrestricted net position as of June 30, 2016 was $1.16 million, whereas operating expenses

in the June 30, 2017 budget are only $728 thousand, or 28% of the total budget. All other

budgeted expenses relate to projects and can be managed in a way that aligns with

remaining resources and expected future revenues.

REQUESTS FOR INFORMATION

This report is designed to provide an overview of the Commission’s finances for those with

an interest in this area. Questions concerning any of the information found in this report or

requests for additional information should be directed to:


c/o Washoe County Community Services Department

1001 E. Ninth Street

Reno, NV 89512

FINANCIAL STATEMENTS

2016 2015

ASSETS

Current Assets

Cash and investments 1,212,710$ 1,182,852$

Accounts receivable 329,121 359,292

Due from other governments ‐ 5

Interest receivable 3,160 3,697

Total Current Assets 1,544,991 1,545,846

LIABILITIES AND NET POSITION

Current Liabilities

Accounts payable 36,670 43,034

Accrued salaries payable 16,881 12,240

Due to other governments 299,835 213,614

Total Current Liabilities 353,386 268,888

Accrued Compensated Absences 28,022 25,918

Total Liabilities 381,408 294,806

Net Position, Unrestricted 1,163,583$ 1,251,040$


STATEMENT OF NET POSITION

JUNE 30, 2016

GOVERNMENTAL ACTIVITIES

(WITH COMPARATIVE TOTALS AS OF JUNE 30, 2015)

See accompanying notes.

8

2016 2015

Program Expenses

Services and supplies 1,470,777$ 1,875,296$

General Revenues

Water surcharge fees 1,355,733 1,466,562

Unrestricted investment earnings 27,587 18,891

Total General Revenues 1,383,320 1,485,453

Change in Net Position (87,457) (389,843)

Net Postion ‐ July 1 1,251,040 1,640,883

Net Position ‐ June 30 1,163,583$ 1,251,040$


STATEMENT OF ACTIVITIES

YEAR ENDED JUNE 30, 2016(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2015)


9

2016 2015

ASSETS

Cash and investments 1,212,710$ 1,182,852$

Accounts receivable 329,121 359,292

Due from other governments ‐ 5

Interest receivable 3,160 3,697

Total Assets 1,544,991$ 1,545,846$

LIABILITIES

Accounts payable 36,670$ 43,034$

Accrued salaries payable 16,881 12,240

Due to other governments 299,835 213,614

Total Liabilities 353,386 268,888

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue ‐ surcharge fees 1,493 860

FUND BALANCE

Assigned to subsequent yearʹs budget 1,120,314 839,448

Unassigned 69,798 436,650

Total Fund Balance 1,190,112 1,276,098

Total Liabilities, Deferred Inflows of

Resources, and Fund Balance 1,544,991$ 1,545,846$


GOVERNMENTAL FUND BALANCE SHEET

JUNE 30, 2016

GENERAL FUND

(WITH COMPARATIVE TOTALS AS OF JUNE 30, 2015)


10

Fund Balance ‐ Governmental Fund 1,190,112$

Amounts reported for governmental activities in the

Statement of Net Position are different because:

Accrued compensated absences reported in the

Statement of Net Position are not due and payable in the

current period and therefore are not reported in the

governmental fund. (28,022)

Revenues that are not available to pay for current

expenditures and therefore are not reported in the

governmental fund. 1,493

Net Position ‐ Governmental Activities 1,163,583$


RECONCILIATION OF THE GOVERNMENTAL FUND

JUNE 30, 2016

BALANCE SHEET TO THE STATEMENT OF NET POSITION


11

2016 2015

REVENUES

Water surcharge fees 1,355,100$ 1,466,805$

Earnings on investments 27,587 18,891

1,382,687 1,485,696

EXPENDITURES

Services and supplies 1,468,673 1,872,024

Net Change in Fund Balance (85,986) (386,328)

FUND BALANCE, July 1 1,276,098 1,662,426

FUND BALANCE, June 30 1,190,112$ 1,276,098$


GOVERNMENTAL FUND

YEAR ENDED JUNE 30, 2016

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES

(WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2015)

AND CHANGES IN FUND BALANCE


12

Net Change in Fund Balance ‐ Governmental Fund (85,986)$

Amounts reported for governmental activities in the

Statement of Activities are different because:

The change in accrued compensated absences is reported in

the Statement of Activities. This does not require the use of

current financial resources and therefore is not reported as

an expenditure in the governmental fund. (2,104)

Revenues in the Statement of Activities that do not provide

current financial resources are not reported as revenues in

the governmental fund. 633

Change in Net Position of Governmental Activities (87,457)$


RECONCILIATION OF THE GOVERNMENTAL FUND

STATEMENT OF REVENUES, EXPENDITURES, AND


CHANGES IN FUND BALANCE TO THE

STATEMENT OF ACTIVITIES


13

2015

Original Variance

And Final To Final

Budget Actual Budget Actual

REVENUES

Water surcharge fees 1,475,479$ 1,355,100$ (120,379)$ 1,466,805$

Grant revenue 40,000 ‐ (40,000) ‐

Earnings on investments 58,028 27,587 (30,441) 18,891

1,573,507 1,382,687 (190,820) 1,485,696

EXPENDITURES

Services and supplies 2,412,955 1,468,673 944,282 1,872,024

Excess (Deficiency) of Revenues

Over (Under) Expenditures (839,448) (85,986) 753,462 (386,328)

FUND BALANCE, July 1 887,509 1,276,098 388,589 1,662,426

FUND BALANCE, June 30 48,061$ 1,190,112$ 1,142,051$ 1,276,098$

(WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2015)

2016


STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE ‐ BUDGET AND ACTUAL ‐ GENERAL FUND



14


NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2016

15

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

The Western Regional Water Commission (Commission) was created on April 1, 2008 upon

passage of 2007 Nevada Legislature Senate Bill 487 to improve water resource planning at

the regional level and facilitate coordinated resource management among the public water

purveyors of Washoe County. Previously, the four water purveyors consisted of the

Truckee Meadows Water Authority, Washoe County Water Resources, Sun Valley General

Improvement District and South Truckee Meadows General Improvement District.

However, as of December 31, 2014, Washoe County Water Resources and South Truckee

Meadows General Improvement District merged with the Truckee Meadows Water

Authority.

A cooperative agreement was entered into upon the creation of the Commission by the

following member agencies at the time: the cities of Reno and Sparks, the South Truckee

Meadows General Improvement District, the Sun Valley General Improvement District, the

Truckee Meadows Water Authority, and Washoe County, to form a Joint Powers Authority

to operate the Commission. The Commission is currently directed by a Board of Trustees

comprised of members from each of the original governing agencies, excluding the South

Truckee Meadows General Improvement District.

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The basic financial statements include both government‐wide and fund financial

statements.

Government‐Wide Statements

The government‐wide Statement of Net Position is presented on a full accrual, economic

resource basis that recognizes all long‐term assets as well as long‐term debt and

obligations.

The government‐wide Statement of Activities reports both the gross and net cost of each of

the Commission’s functions. The functions are also supported by the general government

revenues. The Statement of Activities reduces gross expenses by related program revenues

and operating grants. The Statement of Activities is also presented on a full accrual basis



JUNE 30, 2016

16

where revenues are recorded when earned and expenses are recorded when a liability is

incurred, regardless of when the related cash flows take place.

Fund Financial Statements

Governmental fund financial statements are reported using the current financial resources

measurement focus and the modified accrual basis of accounting. Revenues are recognized

when measurable and available (susceptible to accrual). Interest and surcharges are

accrued when their receipt occurs within sixty days after the end of the accounting period

so as to be measureable and available. Expenditures generally are recorded when a liability

is incurred, as under accrual accounting. However, certain expenditures are recorded only

when payment is due.

The General Fund is the Commission’s sole fund; therefore, it accounts for all financial

resources of the general government.

Accounts Receivable

Accounts receivable arise from water surcharge fees. No allowance for doubtful accounts is

required as all receivables are considered to be fully collectible (also see Note 6).

Compensated Absences

As described in Note 6, the Commission entered into an agreement with Washoe County

on November 8, 2008 to retain the services of certain assigned County employees to

perform duties of the Commission. The Commission interprets this agreement to obligate

the Commission to pay any applicable accrued vacation and sick pay for its assigned

employees upon their termination. Accordingly, since the payroll reimbursement payments

from the Commission to the County are exclusive of these termination payments, the

Commission’s policy is to provide for this obligation in their financial statements in the

same manner as if the assigned employees were deemed to be actual employees of the

Commission.

Earned vacation and compensatory time may each be accumulated up to a maximum of

240 hours. The earned vacation and compensatory time is payable upon termination and

the liability is reported at the employees’ current rate of pay.



JUNE 30, 2016

17

Sick leave is only applicable for payout after 10 years of employment. Personnel are paid

sick leave upon termination on half of the total accumulated hours in excess of 300 hours

up to a maximum of 800 hours.

Revenue

The Commission is funded by imposing a 1.5% surcharge fee on customer water bills. The

surcharge fee is collected by each non‐exempt water purveyor and supplier of water within

the Washoe County planning area and remitted to the Commission.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting

principles (GAAP) requires management to make estimates and assumptions that affect the

reported amounts and disclosures. Accordingly, actual results could differ from these

estimates.

Prior Year Information

The basic financial statements include certain prior‐year summarized information but

which is not at the level of detail required for a presentation in conformity with GAAP.

Accordingly, such information should be read in conjunction with the Commission’s

financial statements for the year ended June 30, 2015, from which the summarized

information was derived. Certain amounts presented in the prior year data may be

reclassified to be consistent with the current year’s presentation.

NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING

The Commission adheres to the Local Government Budget and Finance Act incorporated

within the statutes of the State of Nevada, which includes the following major procedures

to establish the budgetary data which is reflected in these financial statements:

1. Prior to April 15, the Commission’s Board of Trustees (the “Board”) files a

tentative budget with the Nevada Department of Taxation for the fiscal year

beginning the following July 1. The tentative budget includes proposed

expenditures and the means of financing them.



JUNE 30, 2016

18

2. Prior to June 1, at a public hearing, the Board indicates changes, if any, to be

made to the tentative budget and adopts a final budget by the favorable vote of a

majority of the Board’s members.

3. The Commission’s Program Manager is authorized to transfer appropriations

between accounts within the Water Management Fund, if amounts do not exceed

the original budget, subject to subsequent Board approval. Augmentations in

excess of the original budget require approval from the Board.

4. Formal budgetary integration is employed as a management control device for

the Commission’s General Fund. The budget is legally adopted, and its annual

appropriations lapse at year‐end.

5. Budgeted appropriations may not be exceeded by actual expenditures of the

various programs in the budgeted governmental fund (the General Fund).

6. All budgets are adopted on a basis consistent with GAAP. The accompanying

financial statements reflect the Original Budget and the Final Budget in one

columnar presentation as there were no adjustments made to the Original

Budget.

NOTE 3 – CASH IN COUNTY TREASURY

Cash at June 30, 2016 consisted of the following:

Cash in County Treasury $1,212,710

The Commission maintains all of its cash and investments with the Washoe County

Treasurer in an investment pool. The Treasurer allocates interest to participants based

upon their average balances. Required disclosure information regarding categorization of

investments and other deposit and investment risk disclosures can be found in the

County’s financial statements. The Washoe County financial statements may be obtained

by contacting the Office of the Comptroller at 1001 E. Ninth Street, Room D‐200, Reno, NV

89512. The Investment Committee oversees the Washoe County Treasurer’s investments

and policies.



JUNE 30, 2016

19

Investments held in the County’s investment pool are available on demand and are stated

at cost plus accrued interest, which approximates fair value. The fair value of the

Commission’s position in the pool equals the value of the pool shares.

Interest Rate Risk – Interest rate risk is the risk of possible reduction in the value of a

security, especially a bond, resulting from the rise in interest rates. To limit exposure to

interest rate risk, the Nevada Revised Statutes limits bankers’ acceptances to 180 days

maturities, repurchase agreements to 90 days, U.S. Treasuries and Agencies to less than 10

years, and commercial paper to 270 days.

Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will

not fulfill its obligation and is a function of the credit quality ratings of its investments. In

accordance with Nevada Revised Statutes, the Commission limits its investment

instruments by their credit risk. The Washoe County Investment Pool is an unrated

external investment pool.

NOTE 4 – LONG‐TERM LIABILITIES

The following is a summary of long‐term liability activity of the Commission for the year

ended June 30, 2016:

Amount

Due Within

June 30, 2015 Additions Reductions June 30, 2016 One Year

Compensated

absences 25,918$ 2,104$ ‐$ 28,022$ ‐$

NOTE 5 – NET POSITION AND FUND BALANCE

Net Position

Equity is classified as net position in the government‐wide financial statements. Net

position is categorized as invested in capital assets (net of related debt), restricted and

unrestricted.



JUNE 30, 2016

20

Net position is reported as restricted when there are limitations imposed on their use either

through legislation or through external restrictions imposed by creditors or laws or

regulations of other governments.

As of June 30, 2016, the Commission’s net position was comprised of:

Unrestricted Net Position – Net position of the Commission which is not restricted for

any project or other purpose.

Fund Balance

The Commission has adopted Governmental Accounting Standards Board (GASB)

Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which

establishes standards for fund balance classifications that comprise a hierarchy based

primarily on the extent to which a government is bound to observe constraints imposed

upon the use of the resources reported in governmental funds.

The Commission reports the following classifications:

Non‐spendable – amounts that cannot be spent because they are either (a) not in spendable

form or (b) legally or contractually required to be maintained intact.

Restricted – amounts that can be spent only for specific purposes because of constitutional

provisions, charter requirements or enabling legislation or because of constraints that are

externally imposed by creditors, grantors, contributors, or the laws or regulations of other

governments.

Committed – amounts that can be used only for specific purposes determined by a formal

action of the Board. The Board is the highest level of decision making authority for the

Commission. Commitments may be established, modified, or rescinded only through

ordinances or resolutions approved by the Board.

Assigned – amounts that do not meet the criteria to be classified as restricted or committed

but that are intended to be used for specific purposes. Under the Board’s adopted policy,

only the Board may assign amounts for specific purposes.



JUNE 30, 2016

21

Appropriated assigned fund balance is an appropriation of existing fund balance to

eliminate a projected budgetary deficit in the subsequent year’s budget in an amount no

greater than the projected excess of expected expenditures over expected revenues.

Unassigned – the residual classification for the General Fund.

When both restricted and unrestricted resources are available for use, it is the Board’s

policy to use externally restricted resources first, then unrestricted resources – committed,

assigned, and unassigned – as needed, unless the Board has provided for otherwise in its

commitment or assignment actions.

NOTE 6 – RELATED PARTY TRANSACTIONS

On November 8, 2008, the Commission entered into an agreement with Washoe County

(“County”) whereby the County will provide to the Commission, on a contractual and

reimbursable basis, services of employees from the County’s Community Services

Department (assigned employees), who have historically been fully dedicated to

supporting and performing the duties associated with planning and implementation of

regional water matters. Assigned employees retain all rights and status of Washoe County

employees.

The Commission reimburses the County for all actual costs for the services provided by the

assigned employees, including wages, hours, compensatory time, sick leave, special sick

leave, annual leave, insurance premiums, worker’s compensation insurance, and all other

benefits the County currently provides or may provide in the future. Reimbursable future

obligations of the Commission include compensated absences, but do not include

postemployment benefits other than pensions. Total costs reimbursed by the Commission

to the County for these services were $353,632 for the year ended June 30, 2016.

In addition to the services provided by the assigned employees, routine and general

administrative activities in support of the Commission’s mission are provided by other

personnel of the County Community Services Department. Total costs reimbursed by the

Commission to the County for these services were $94,931 for the year ended June 30, 2016.

As discussed in Note 1, the Commission derives its revenue from a surcharge on customer

water bills within the region collected by water purveyors in Washoe County. Some

members of the governing bodies of the purveyors are also members of the Commission’s



JUNE 30, 2016

22

Board of Trustees. Total water surcharge revenues for the year ended June 30, 2016 were

$1,355,100, which includes accounts receivable of $329,121.

NOTE 7 – COMMITMENTS

On May 16, 2013, the Commission entered into an interlocal agreement with Truckee

Meadows Water Authority (TMWA) to implement plans to manage and maximize the

yield of regional water supplies in furtherance of the Truckee River Operating Agreement

(TROA). Part of the TROA provides that Reno, Sparks and Washoe County agree to

provide 6,700 acre‐feet of water rights for water quality purposes. TMWA is actively

engaged in the water rights market in the ordinary course of its operation of the public

water system. Through this agreement the Commission intends to budget Regional Water

Management Fund monies up to $2,700,000 to reimburse TMWA for costs incurred to

purchase these water rights. Title of the water rights purchased under this agreement shall

be conveyed to Reno, Sparks and Washoe County as tenants in common with undivided

1/3 interest each. Total costs for purchases made under this agreement through June 30,

2016 were $2,567,414.

This agreement shall terminate in the event of a) thirty days written notice by either party;

b) non‐appropriation by the Commission; or c) upon expenditure of the $2,700,000 as

discussed above.

NOTE 8 – SUBSEQUENT EVENTS

Management has evaluated subsequent events through September 14, 2016, the date the

financial statements were available to be issued. The Commission has determined there are

no material transactions that have not been disclosed.

COMPLIANCE SECTION


REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND

ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

To the Board of Trustees of the


Reno, Nevada

We have audited, in accordance with the auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing Standards,

issued by the Comptroller General of the United States, the financial statements of the governmental

activities and the General Fund of the Western Regional Water Commission (the Commission) as of

and for the year ended June 30, 2016, and the related notes to the financial statements, which

collectively comprise the Commission’s basic financial statements and have issued our report thereon

dated September 14, 2016.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Commission’s

internal control over financial reporting (internal control) to determine the audit procedures that are

appropriate in the circumstances for the purpose of expressing our opinions on the financial

statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s

internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission’s

internal control.

A deficiency in internal control exists when the design or operation of a control does not allow

management or employees, in the normal course of performing their assigned functions, to prevent, or

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination

of deficiencies, in internal control, such that there is a reasonable possibility that a material

misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a

timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control

that is less severe than a material weakness, yet important enough to merit attention by those charged

with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of

this section and was not designed to identify all deficiencies in internal control that might be material

weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify

any deficiencies in internal control that we consider to be material weaknesses. However, material

weaknesses may exist that have not been identified.

24

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Commission’s financial statements are

free of material misstatement, we performed tests of its compliance with certain provisions of laws,

regulations, contracts, and grant agreements, noncompliance with which could have a direct and

material effect on the determination of financial statement amounts. However, providing an opinion

on compliance with those provisions was not an objective of our audit, and accordingly, we do not

express such an opinion. The results of our tests disclosed no instances of noncompliance or other

matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and

compliance and the results of that testing, and not to provide an opinion on the effectiveness of the

entity’s internal control or on compliance. This report is an integral part of an audit performed in

accordance with Government Auditing Standards in considering the entity’s internal control and

compliance. Accordingly, this communication is not suitable for any other purpose.

Reno, Nevada

September 14, 2016


AUDITORS’ COMMENTS

JUNE 30, 2016

25

STATUTE COMPLIANCE

Current Year

The Commission complied with all significant statutory constraints on its financial

administration during the year.

Prior Year

During the prior year, the Commission complied with all significant statutory constraints

on its financial administration.

AUDIT RECOMMENDATIONS

Current Year

We did not note any financial weaknesses of a magnitude to justify inclusion within our

report.

Prior Year

There were no prior year recommendations related to financial statement weaknesses of a

magnitude to justify inclusion within the audit report.



Page 1 of 2

STAFF REPORT DATE: September 15, 2016 TO: Chairman and Members, Western Regional Water Commission ("WRWC")

FROM: Ben Hutchins, Director, Finance & Administration Division, Washoe County Community Services Department (“CSD”)

SUBJECT: Discussion and possible designation of Schettler, Macy & Associates, LLC as the external auditors for the fiscal year 2016 - 2017 WRWC financial statement audit; and, if approved, authorize the Chairman to execute the related Engagement Letter, and direct staff to file the required documents with the State of Nevada.

SUMMARY Staff is recommending that the WRWC designate Schettler, Macy & Associates, LLC, as the auditors for fiscal year 2016 - 2017, approve the related Engagement Letter, and direct staff to report this designation to the State of Nevada by the March 30, 2017 deadline. PREVIOUS ACTION On November 18, 2015, the Commission designated Schettler, Macy & Associates, LLC as its external auditors for the fiscal year ended June 30, 2016. BACKGROUND NRS requires the selection of external auditors to be made and communicated to the State no later than March 30th of each year. In keeping with this deadline, Washoe County’s CSD secured an engagement letter and price proposal from Schettler, Macy & Associates, LLC (letter attached). Since Schettler, Macy & Associates, LLC has performed audits in past fiscal years in a professional and cost effective manner, and the proposed fee for the 2016 - 2017 audit is reasonable with no increase in cost over the prior year, staff recommends designating Schettler, Macy & Associates, LLC as the external auditors for fiscal year 2016 - 2017. FISCAL IMPACT The proposal received from Schettler, Macy & Associates, LLC indicates audit services would be billed based on their standard hourly rates, plus out-of-pocket costs, with a not-to-exceed total fee of $8,700. Budget authority is located in Fund Group 766, Fund 7066, Account Number 710139, Professional Services, Cost Object WP310706. RECOMMENDATION Staff recommends that the WRWC designate Schettler, Macy & Associates, LLC as the external auditors for fiscal year ending June 30, 2017, authorize the Chairman to execute the related Engagement Letter, and direct staff to report the designation to the State by the statutory deadline.

of 2

POSSIBLE MOTION Should the Commission agree with the above noted recommendation, a suggested motion is: “Move to designate Schettler, Macy & Associates, LLC as the WRWC’s external auditors for fiscal year ending June 30, 2017, authorize the Chairman to execute the related Engagement Letter, and direct staff to report the designation to the State by the statutory deadline.” Attachments: Schettler, Macy & Associates, LLC letter of engagement


September 13, 2016

Mr. Ben Hutchins, CPA Western Regional Water Commission c/o Washoe County Community Services Department 1001 E. Ninth Street, Reno, NV 89512 Reno, NV 89512

Dear Ben,

We are pleased to confirm our understanding of the services we are to provide the Western Regional Water Commission (WRWC) for the year ended June 30, 2017. We will audit the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information, which collectively comprise the basic financial statements of WRWC as of and for the year ended June 30, 2017. Accounting standards generally accepted in the United States provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to WRWC’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited:

1) Management’s Discussion and Analysis

2) Budgetary Comparison Schedule

Audit Objectives

The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of WRWC and other procedures we consider necessary to enable us to express such opinions.

9-21-16: WRWC Agenda Item 8Attachment

Western Regional Water Commission Page 2 September 13, 2016

We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement.

We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and compliance will include a statement that the report is intended solely for the information and use of management, the body or individuals charged with governance, others within the entity, and specific legislative or regulatory bodies and is not intended to be and should not be used by anyone other than these specified parties. If during our audit we become aware that WRWC is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements.

Management Responsibilities

Management is responsible for the financial statements and all accompanying information as well as all representations contained therein. As part of the audit, we will assist with preparation of your financial statements and related notes. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.

Management is responsible for establishing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management is reliable and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.

Management is also responsible for making all financial records and related information available to us and for ensuring that management and financial information is reliable and properly recorded. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence.


Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and grants for taking timely and appropriate steps to remedy any fraud, illegal acts, violations of contracts or grant agreements, or abuse that we may report.

Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information.

Audit Procedures—General

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.

Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors or any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors.


Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards.

Audit Procedures—Internal Controls

Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.

An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards.

Audit Procedures—Compliance

As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of WRWC’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.

Engagement Administration, Fees, and Other

We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing.

We will provide copies of our reports to WRWC; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection.

The audit documentation for this engagement is the property of Schettler Macy & Associates, LLC and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to the State of Nevada or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities.


We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Schettler Macy & Associates, LLC personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies.

The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the State of Nevada.

Zeth M. Macy is the engagement partner and is responsible for supervising the engagement and signing the reports. Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $8,700. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs.

Government Auditing Standards require that we provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2014 peer review report (under our former name The Bullard Macy Group) accompanies this letter.

We appreciate the opportunity to be of service to the WRWC and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.

Thank you.

Very truly yours,

SCHETTLER MACY & ASSOCIATES, LLC

Zeth M. Macy, CPA Partner


RESPONSE:

This letter correctly sets forth the understanding of the Western Regional Water Commission.

By: _____________________________ Title: ____________________________ Date: ____________________________

9-21-16: NNWPC Agenda Item 9


Page 1 of 2

STAFF REPORT DATE: September 15, 2016 TO: Chairman and Members, Western Regional Water Commission (“WRWC”)

FROM: Chris Wessel, WRWC Water Management Planner Frank McDonough, Desert Research Institute, Associate Research Scientist

SUBJECT: Report by the Desert Research Institute (“DRI”) on its Cloud Seeding Operations for the Truckee River and Lake Tahoe Basins for the past water year, and efforts to secure funding from other cloud seeding beneficiaries; discussion and possible approval of funding in an amount not to exceed $100,000 from the Regional Water Management Fund ("RWMF") to support similar Cloud Seeding Operations for the upcoming water year; if approved, authorize the Chairman to execute an interlocal agreement (ILA) with DRI for that purpose; and possible direction to staff.

SUMMARY Since 2009, DRI has conducted its cloud seeding program for the Truckee River and Lake Tahoe Basins using funds provided by either the Truckee Meadows Water Authority (“TMWA”) or the Truckee River Fund ("TRF"), and the WRWC. DRI staff has provided a Proposal and Scope of Work including a budget for $100,000 (attached) from the RWMF to partially fund and continue cloud seeding operations for water year 2016-2017. The WRWC budget for FY 2016-2017 includes $100,000 for the proposed cloud seeding operations, and approval comes as a recommendation from the Northern Nevada Water Planning Commission. Mr. Frank McDonough of DRI will provide a presentation about the water year 2015-2016 program and proposed operations for the coming year. BACKGROUND Wintertime cloud seeding is focused on enhancing snowfall in mountainous regions to increase the snowpack, resulting in more spring runoff and water supplies in the surrounding areas. The DRI cloud seeding program has been in operation for more than 25 years. DRI estimates that, for the Truckee River Basin, cloud-seeding has boosted water in the snowpack by an average of 18,000 acre-feet a year over the last 10 years. DRI funding cuts in 2008 threatened to eliminate its cloud seeding operations, such that outside financing was necessary to continue the program. In response, DRI applied to the TRF in 2009 to support the operation of five cloud-seeding generators in the Sierra Nevada. DRI received approval for partial funding from the TRF and the WRWC for the 2009-2010 water year. DRI applied for and received funding from the TRF, and more recently TMWA, and the WRWC to cover operations in each successive water year.

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FISCAL IMPACT The fiscal impact to the RWMF, should this item be approved, will be $100,000. Budget authority is located in Fund Group 766, Fund 7066, Account Number 710100, Professional Services, Cost Object WP310103. RECOMMENDATION The NNWPC recommends that the WRWC approve funding in an amount not to exceed $100,000 from the RWMF to support DRI’s Cloud Seeding Operations for the upcoming water year; authorize the Chairman to execute an interlocal agreement with DRI for that purpose, and provide appropriate direction to staff. POSSIBLE MOTION “Move to approve funding in an amount not to exceed $100,000 from the RWMF to support DRI’s Cloud Seeding Operations for the upcoming water year, and authorize the Chairman to execute an interlocal agreement with DRI for that purpose." [Possible direction to staff to follow.] CW:df Attachment: DRI Cloud Seeding Final Report for Water Year 2016

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FinalReport

CloudSeedingProjectforTahoeandTruckeeBasinsforWY2016

Submittedto

Mr.MarkForeeandMr.JeffTissierTruckeeMeadowsWaterAuthority

1355CapitalBlvdReno,NV89502

Mr.JimSmithermanandMr.ChrisWesselWesternRegionalWaterCommission

1001E.NinthStReno,NV89502

By

FrankMcDonough,ProjectManagerDivisionofAtmosphericSciences

DesertResearchInstitute

July25,2016

9-21-16: WRWC Agenda Item 9Attachment

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CloudSeedingProjectforTahoeandTruckeeBasinsforWaterYear2016:FinalReport

ExecutiveSummaryTheTahoe-TruckeeCloudSeedingProgramforWaterYear2016startedoperationsonscheduleonNovember1,2015andendedonJune1,2016.Therewere38cloudseeding events with a total of 1054 generator hours (one generator hour is onegenerator cloud seeding for one hour) during the season (Fig. E.1). Nearly all ofthese eventswere found to be associatedwith ideal cloud seeding conditions.Noeventsweremissed.Most of the generator hours occurred in the first half of thewinter.The forecasting, operations, and generator availabilitywerequite efficientwith a seeding efficiency of 95% (each case presented in Phase 2 section of thereport)

FigureE.1.ThenumberofcloudseedingeventsforWY2016.Eventspermonthpresentedintheupperpanelandtheoperationalgenerators-hourspermonthlowerpanel

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The seasonal seeding effect can be computed through the following derivedequation. The precipitation increase in the seeding area during the operationalseededperiodsareconservativelyestimatedat0.01”(0.25mm)ofliquidor0.1”ofincreasedsnowperhour.Paststudiesofseedingplumedispersalovermountainoustargetareas,anddocumentationofthefalloutareaofseededsnowwithinaseedingplumefromonegeneratorisapproximately35squaremiles.Thisareaofeffectwillvaryascloudconditionsandwindspeedvary,andcanalsochangeasthedimensionofthemountainbarrieralongthewinddirectionchanges.Sincealltheparameterscannotbepreciselyevaluated,thisanalysiswillusethe35mi2valueasaconstant.The estimate of the amount of snowwater produced by seeding (Ws) during the2016 Water Year is provided by multiplying the total time of gen generatoroperation(Ts=1093.9hours)bytheprecipitationrateincrease(Ps=0.25mmperhour).Thisproductisthenmultipliedbytheareaofeffect(As=35sq.miles),andthenbyseedingefficiency for theseason(0.95).Toobtain theestimate inunitsofacre-feetthefollowingconversionsarealsoneeded:

0.25mm=0.00328ft. 1sq.mile=640acres.So,forthe2015-16winterseasontheestimatedsnowwaterincreasefromseedingis: Ws=1093.9hx0.25mm/hx0.00328ft/mmx35sqmix640acres/sqmix0.95

Ws≈19,021acre-feetor6.1billiongallons.

Ifallofthe6.1billiongallonsofadditionalwaterfromthecloudseedingoperationsweretorunoff,itwouldbeenoughwaterfor45,240TruckeeMeadowshouseholds(anaveragemeteredTruckeeMeadowshouseholduses137,000gallonsperyear).The project costs for this additional snowwater was approximately $16.25peracre-foot.Forthefirstyeardatahasbecomeavailabletovalidatethecloudseedingeffect.TheWesternRegionalWaterCommissionfundedtheinstallationofnewhigh-resolutionprecipitationgaugestovalidatethecloudseedingeffectivenessintheTahoeBasin.Twohigh-resolutionGeonor snow/precipitation gaugeswere installed in summer2015 and precipitation datawas collected over thewinter. The two gaugeswereboth installed10to15mileseastof theSierraCrest,with theAllisonDrivegaugesited within the seeded target area and the Sorenson’s gauge sited outside theseededareainthecontrolarea(Fig.E.2).The30-miledistancebetweenthegaugesand their relative similar elevations and similar geographical location east of the

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SierraCrestallowstheassumptionthattheprecipitationratiosshouldbegenerallyequalthroughtheentirewinter.

FigureE.2.TheTahoecloudseedingnetworkyellowboxes.ThenewprecipitationgaugeinthetargetareaatAllisonDrivedenotedbygreencircleandthegaugeoutsideofthetargetarea(control)atSorenson’sResort(redcircleinlowerright).The precipitation events for the entire winter at the two sites were broken intoseeded events and unseeded events. Precipitation from a seeded event wasidentifiedasstartingonehourafterthegeneratorswerestartedandending3hoursafterthegeneratorswerehalted.Anyprecipitationthatwasobservedinthegaugeoutside of these timeswas defined as a ‘non-seeded’ event. Figure E.3 shows themonthlyprecipitationcomparisonsbetweenthe targetgauge(AllisonDr.)and thecontrol gauge (Sorenson’s) for both seeded precipitation events and unseededevents.A One Tailed Statistical T-Test for Equal Means was conducted on the monthlyseeded and unseeded ratios from the gauge data. A positive seeding effect at the95% confidence interval was found with perhaps a 9% increase in precipitationobservedwithintheseededarea.AmoredetailedanalysiscanbefoundinthePhase3discussion.

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FigureE.3.Themonthlyprecipitationatboththetargetandthecontrolareafortimeperiodswithactivecloudseeding(upperpanel)andfortimeperiodswhencloudseedingwasnotactive.Targetgaugearethebarsontheleftsideofthepairsandthecontrolgaugeisontherightsideofthemonthlypairs.

IntroductionThe goals of the DRI cloud seeding efforts in the Tahoe/Truckee Basin remainessentiallythesamefrompreviousyears:toenhancesnowfall fromwinterstormsand to increase the snowpack and subsequent runoff in the Tahoe and TruckeeBasinsthroughtheapplicationofwintertimecloudseedingtechnology.ThisreportconstitutesthesummaryoftheprojectforWaterYear2016.This project is funded by the Truckee Meadows Water Authority (TMWA) andWesternRegionalWaterCommission(WRWC).Seedingisconductedfromalineoffive ground-based cloud seeding generators (CSGs) positioned on, or a fewmilesupwind of, themain Sierra Nevada crest to thewest of Lake Tahoe (Fig. 1). Thegenerators are placed at the highest altitudes possible and positioned to takeadvantage of the generally westerly to southwesterly wind directions in winterstormsintheTahoearea.ThegeneratorsareremotelyactivatedbyDRIstaffwhentheproperweatherandcloudconditionsforseedingwereverified.Forecastingfor

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potential cloud seeding events during water year 2016 (WY2016) began onNovember1,2015.Duetothepreviousyearsdroughtsandlowlakeandreservoirlevels, seeding forecasting and operations were extended from the usual endingperiodofMay15untilJune1,2016.

Theprojectisbrokenintothreephases.Phase1includedtheworkassociatedwiththe field equipment. To ensure maximum performance from the generators,maintenance of equipment is conducted in pre and postseason, and if necessaryduringwinteroperations.ThePhase2workincludesthe24/7weathermonitoringandforecasting,andgeneratoroperationsfortheWY2016season.Phase3activities

Figure 1. Map showing the Tahoe-Truckee cloud seeding target area (red shading) andinstrument sites in and around the target area. NRCS SNOTEL sites, which measureprecipitationandsnowwaterequivalent(SWE)are indicatedbyredXs.Groundseedingsitesare shown as yellow squares. Reno facilities are shown in the upper right as cyan-coloredcircles.

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occuraftertheseasonhasended.Theseincludeareviewandanalysisofthewinterweather and operations, estimation of the cloud seeding precipitationaugmentation,validationoftheseedingeffortsandreportingontheresults.

Phase1The same five permitted generator siteswere utilized as last year. All siteswereinstalled, filled with seeding solution and fully operational by October 15, 2015.Hardware and software upgrades were installed to make the generators moreefficientandreliable.Anew in-housedevelopedsteppermotor flowmeteringandadjustment systemwas installed in all five generators after field-testing last year.This system constantly monitors the flow rate of the solution to the burner andadjustsitifnecessaryduetofluctuationsintankpressureortemperature.Anothernew feature this seasonwasa stainless steel thermocouple sleeve thateliminatedany corrosive/ heat wear and tear on the sensor, thus eliminating the ill-timedoutagesandrequiredfieldtripstoreplacethemduringtheseason.Thisfixwasfieldtestedlastyearonafewgeneratorsandinstalledonallthisseason.Therewerenosensorfailuresthisyear.The generators were calibrated for flow rate at the nozzle and satellitecommunicationswere installed atWard Peak and one of the Bunker Hill sites tomitigate the antennae icing and radio line-of-site communication failures. Theseprovedtoberobustandreliableimprovements.A heated and flash equipped webcam and weather station was installed at theBarkerPasssitetoviewtheformationoficingonthetower24/7(Fig.2).Aweatherstation was installed at the Echo and Barker Pass generator sites. Theseobservational platforms aid in real-time storm monitoring and also provide auniquedatasetforreportingandvalidationoftheseedingeffect.Newsoftwareforthe datalogger program was added to process the season’s data and provideinformation for field technicians to use formaintenance and repairs. This data isnowavailableinrealtimeforreportingandvalidation.

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Fig2.BarkerPassflashwebcamimageat11:45PMonFebruary18,2016.Icingcanbeseenontheguy-wireonrightsideoftheimage.AspartofaseparatelyfundedWRWCproject,high-resolutionGeonorprecipitationgauges were installed and became operational in summer 2015. One gauge wassitedattheSorensen’sResortintheCarsonRiverBasinasacontrolsiteoutsidetheTahoe-TruckeeBasinandthesecondwasinstalledaboveInclineVillagewithintheTahoe-Truckee Basin seeding area as a target site. These sites were visitedthroughouttheseasoninconjunctionwithothersitevisitstoservicetheunitsanddownload thedata forprocessing.Threemoregaugeswillbe installed insummer2016atKingvale,CA,SpoonerSummit,NVandEchoSummit,CA.Threemoresiteswillbeinstallednextyear.Thesefinalsiteshaveyettobeselected.

Phase2

CloudSeedingMeteorologicalConditionsIdentification of clouds suitable for seeding across the Tahoe Truckee networkrequiresareviewandcarefulanalysisofnumerous,oftenconflicting,datasourcestodeterminewhenthemeteorologicalparametersforsuccessfulcloudseedingare

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present. In general, for themeteorological parameters to bemet cloudsmust bepresentacrossthearea.Nexttheatmosphericstabilityprofilemustbefavorablesothat the seedingplumeproduced from the generators is able to reach the clouds.Thecloudtemperaturesthatthecloudseedingplumeinteractswithmustbecolderthan-5oC,andthecloudsmustalsocontainsubfreezingliquidwaterdrops.ThefinalrequirementisthewindsmustbefavorabletodeliverthecloudseedingplumeandincreasedsnowfallintotheTahoe-Truckeewatershed.Thedetectionofcloudsisthoughtheuseofsatelliteimagery,surfaceobservations,orweb cams. The temperatures and atmospheric stability is obtained though theAlpineMeadowsweather stations at the lower,mid, and uppermountain. Outputfrom the numerical weather prediction models can be useful as well. The mostchallenging and critical prediction is identification of the presence of subfreezingwaterdrops.Cloudseedingcannotbeeffectiveintheabsenceoftheseclouddrops.TherearenooperationalinstrumentsinthecentralSierratodirectlymeasurethisatmosphericproperty.TheDRIteamdesignedanicedetectionsurrogateusingthewebcam imagery from the DRI Barker Pass generators and the Squaw-AlpineMeadowsresort’sWardPeakwebcam.Whensubfreezingwaterdropsarepresenttheywillfreezetothestructuresandequipmentonthemountaintop.Todetermineifcloudseedingconditionswerefavorableicingneededtobeobservedonapoleinthewebcamimagery(Fig.3).

Figure3.TheWardPeakwebcamimage.Theyellowcircleshowsthe icingpole.Theinset image on left shows the no icing conditions and the inset image on the rightshowstheresultsoficingpresent,cloudseedingconditions.

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SummaryThere were 38 cloud seeding events with a total of 1054 generator hours (onegeneratorhour isonegeneratorcloudseeding foronehour) (Fig.4).Nearlyallofthese eventswere found to be associatedwith ideal cloud seeding conditions.Noeventsweremissed.Most of the generator hours occurred in the first half of thewinter.Februaryonlyhad2eventswith12events throughtheendofMay.Theseeventsandtheirassociatedstormsaresummarizedbelow,

Figure4.ThenumberofcloudseedingeventsforWY2016.Eventspermonthpresentedintheupperpanelandtheoperationalgenerators-hourspermonthlowerpanel.

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November2015The cloud seeding season startedoutquicklywith the first stormonNovember2(Fig.5).Thestormstartedoutwarm,butasthecoldfrontmovedthroughlateinthemorning and temperatures at 10,000 ft. MSL cooled below -5oC the first seedingeventwasunderway.Windswerefromthesouthwestearlyintheeventbutbecamelightfromthenorthandnorth-northwestlaterinthestorm.Theeventwasendedasthewinds became northerly. Icingwas observed inwebcam imagery through thestorm period. Precipitation in the cloud seeding target area at the Mount RoseSNOTEL (see Fig. 1 for location) 0.5 inches of snowwater equivalent (SWE)wasmeasuredduringtheseedingperiod.ThenextstormwithlowcloudsmovedintotheregionontheeveningofNovember8. Just before midnight temperatures cooled below -5oC (23oF) and seedingoperations commenced. Over the next 24 hours three distinct bands of moisturemovedacrosstheareawithseedingoccurringduringpartsofeachband.Therewas0.6 inches of SWE reported atMount Rose and 6” of new snow at the Northstarresort,neartheBrockwayGuardStation(seeFig.1forlocation).On themorning of November 15 yet another fastmoving stormwith low cloudsapproached the Tahoe area. Temperatures in the target clouds were below theseedingthresholdat-7oCandquicklycooling,whilewindswerefavorablefromthesouthwest. Icing was observed on the pole from the webcam. At the target areaSNOTEL0.4inchesofSWEwasobservedand7inchesofnewsnowwasreportedatNorthstar.ThefinalstormofthemontharrivedinthelatemorningofNovember24asstrongstormdroppedsouthalongtheWestcoastandasharpcoldfrontbeganto impactthe area. The cloud seeding generatorswere started and run for up to 10 hours.Temperatures, clouds, andwinds from the southwestwere all favorable for cloudseeding.HeavyicingwasobservedonwebcamattheWardgenerator(seeFig.1forlocation).AtthetargetareaSNOTEL0.9inchesofSWEwasobservedand16inchesofnewsnowwasreportedatNorthstar.

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Figure5. Tahoeareamonthlyweather dataand cloud seedingperiods (shaded regions) forNovember 2015. Top panel shows 700 mb. Temperature, relative humidity, and SquawSNOTEL temperature.Middlepanel showswinddataat700mbKREVsounding,andSquaw(8,000ftMSL),andbottompanelpresentsprecipitationorSWEaccumulationatCSSL,SquawandtheBigMeadowSNOTELsites.

December2015ThefirststormofDecemberarrivedontheafternoonofDecember3(Fig.6).ThisweakeningstormmovedoffthecentralPacificandwaswarmerthanthestormsofmidandlateNovember.Temperaturesweremarginalbutcooledbelow-5oCpertheReno sounding.Windswere from thewest-southwest becoming southwesterly atthe end of the event. At the target area SNOTEL0.7 inches of SWEwas observed

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over8hoursand10inchesofnewsnowwasreportedatNorthstar.ThewebcamatWardwasnotavailableforthiseventbutaircraftreportedicingoverTahoethoughpilotreports.OnDecember10averystrongjetwithanupperlevelwavemovedovertheSierraNevada. Temperatureswere initiallywarm but cooled below -5oC bymidday andcooled further throughtheevent.Windswerestrong fromthewestand icingwasobservedonthewebcamatWard.Seedingforthiseventwasprematurelyhalted.Atthe targetareaSNOTEL1.3 inchesofSWEwasobservedduring theseedingeventand24inchesofnewsnowwasreportedatNorthstar.ThenextstormarrivedatsunriseonDecember13.ThiswasanotherstrongstormmovinginfromthePacificNorthwest.Temperaturesquicklycooledbelow-5oCandwindswerefromthewesttowest-northwest.Thewebcamwasnotavailableforthisevent,but icingpilot reportswerewidespread(Fig.7.).A thickclear iceaccretionwasobservedbyDRIstaffattheBarkerweatherstationonamaintenancetriptwodays later.At the targetareaSNOTEL1.6 inchesof SWEwasobservedduring theseedingeventand27inchesofnewsnowwasreportedatNorthstar.After sunset on December 18 the next stormmoved into the area. Temperaturescooledbelow-5oCandwindswerestrongandsteadyfromthewest-southwest.Thegeneratorswereoperatedthoughthenightand into themorningofDecember19.Icingwas observed on thewebcam atWard aswell as from aircraft flying in thearea.AtthetargetareaSNOTEL1.0inchesofSWEwasobservedduringtheseedingeventand7inchesofnewsnowwasreportedatNorthstar.ThegeneratorswereoperatedforanhouronDecember20asaweakcloudsystemmoved across the area.Noprecipitationwas observed although clouds, icing, andfavorablewindsandtemperatureswerepresent.On theafternoonofDecember21a strong jet fromthenorthwestmoved into thearea.Averywetwarmstormsystemalsomovedacrossthearea.Hugesnowfalls(34inchesatNorthstar)andprecipitationamounts(2.0inchesatMountRoseSNOTEL)weremeasuredbuttemperaturesweretoowarmtooperatethegenerators.ByearlyDecember24temperatureshadcooledto-9oCasastrongwavemovedintothenorthernSierrafromtheGulfofAlaska.Windswerefromthewestat40MPH,whiletheWardwebcamwasnotavailable,icingpilotreportswerefoundintheareabelow10,000 ft.MSL.At the targetareaSNOTEL1.1 inchesofSWEwasobservedduringtheseedingeventand20inchesofnewsnowwasreportedatNorthstar.Operationsweresuspended for theChristmas travelday.EarlyonDecember28aweaksystemmovedoverthearea.Seedingwas initiatedearly inthemorningandthegeneratorswereoperatedfor5hours.Temperaturescooledto-10oCandwindswerefromthewest. IcingwasobservedontheWardwebcam,andtherewasonlyone icingpilot reportoverTahoe. Precipitationamountswere light.At the target

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areaSNOTELonly0.1inchesofSWEwasobservedduringtheseedingeventand3inchesofnewsnowwasreportedatNorthstar.

Figure6.AsinFigure6exceptDecember2015.

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Figure7.Icingpilotreportsat10AMonDecember13,2015.

January2015ThefirststormoftheNewYeararrivedonJanuary4.Thiscomplexstormincludedseveral embeddedwaves and lasted into the evening of January 6. Temperatureswere well below -5oC through the event (Fig. 8) and winds remained from thesouthwest through the period. Cloud seeding operations occurred as the wavesassociatedwithlowcloudsmovedacrossthearea.Significanticingwasobservedonthe Ward webcams (Fig. 9). At the target area SNOTEL 1.7 inches of SWE wasobserved during the seeding event and 20 inches of new snow was reported atNorthstar.Earlyon January9aweakstormmovedacross theareaand6hoursof thestormwas seeded. The 700mb (10,000 ft MSL) temperatures from the Reno soundingshowed temperaturesbelow -5oC andwindswere from thewest-southwest. IcingwaslikelypresentpertheWardwebcam,andalonemiddleofthenighticingpilotreportwascalled intothesouthwestof theregion.AtthetargetareaSNOTEL0.2

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inchesofSWEwasobservedduringtheseedingeventand1inchofnewsnowwasreportedatNorthstar.The next storm arrived on the morning of January 13. Seeding was conductedthroughmuch of the day and into the evening. Significant icing was observed atWardandtemperaturesdroppedbelow-5oCshortlyafter thearrivalof thestorm.Windswerewesterly through the event. At the target area SNOTEL 1.4 inches ofSWE was observed during the seeding event and 10 inches of new snow wasreportedatNorthstar.AsecondstormandupperlevelwavequicklyfollowedontheafternoonofJanuary14. Temperatures were -8oC and winds were strong from the west-southwestthroughtheevent.Cloudseedingwasconductedfor12hoursthroughmuchoftheeveningofJanuary14.AtthetargetareaSNOTEL1.2inchesofSWEwasobservedduringtheseedingeventand18inchesofnewsnowwasreportedatNorthstar.Temperatureswarmedaboveseedingtemperatures forseveraldaysasa fewlightprecipitationeventsoccurred.AmoistsouthwesterlyflowmovedacrosstheTahoeregion early on January 19. The generators were started as the thresholdtemperatures(10,000ftMSL)cooledbelow-5oC.Thewindsstartedtheeventfromthe south-southwest and transitioned tonorthwesterly later in theday. Icingwasobservedthroughtheperiodaswell.AtthetargetareaSNOTEL0.9inchesofSWEwasobservedduringtheseedingeventand12inchesofnewsnowwasreportedatNorthstar.OnJanuary23aweakstormmovedacrossthearea.Temperaturesremainedabovethe -5oC threshold for seeding for the early part of the storm but by 4AMtemperatures had cooled and cloud seeding was underway with winds from thewest-southwest.Icingconditionswerepresentthroughtheevent.AtthetargetareaSNOTEL0.2inchesofSWEwasobservedduringtheseedingeventand4inchesofnewsnowwasreportedatNorthstar.ThefinalstormofthemontharrivedonJanuary29asastrongjetmovedacrosstheregion. Initially, awarm(temperaturesat10,000 ftMSLabove freezing)andverymoistairmass,atmosphericriver,movedintotheareafromthecentralPacific.Rainwasfallingoverallareasexceptthehighestpeaks.Temperaturesweretoowarmtocloud seeding until dawn on January 30 when the cold front crossed the area.Throughthiswarmatmosphericrivereventover2.6inchesofSWEwasreportedatMountRoseandonly9inchesofsnowwasreportedatNorthstar,suggestingaverywet3.5:1snowtoliquidratio.Seedingwasstartedat6AMonJanuary30asthe-5oCtemperaturebandassociatedwithverystrongcoldfrontcrossedthearea.Seedingwashaltedasthetrailingedgeofthecloudsassociatedwiththecoldfrontexitedtheareaby10AM.LighticingwasobservedatWard.Astheafternoonprogressedadditionalcoolingaloftallowedtheatmosphere tobecome increasinglyunstable.Anewcolderwave from theGulf of

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Alaska moved into the area on the evening of January 30. Seeding was initiatedagainandcontinuedovernightandintothemorningofJanuary31.Windsfromthesouthwest through west were present through the period with temperaturescoolingto-14oC.Moderateicingwasobservedovernight.ThroughtheseedingtimeperiodinthetargetareaSNOTEL1.5inchesofSWEwasobservedand15inchesofnewsnowwasreportedatNorthstar.

Figure8.AsinFigure5exceptforJanuary2016.

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Figure9.Significant iceaccretiononthepolealongtheSierraCrestatWardPeakfollowingthe3-daystormfromJanuary4throughJanuary7.CameradatacourtesyofSquawValleySkiCorp.

February2016The first event of themonth on February 3was theweak southern end of stormmoving into Pacific Northwest (Fig. 10). Clouds containing supercooled watermoved into the area at the end of the day with winds from the west-southwest,temperatures at 10,000 ft MSL right at -5oC, and icing reported by aircraft. Thegeneratorswerestartedforanhourthenhaltedafterafurtheranalysisofthecloudcoverageacross theTahoeBasin showeddecreasingcloudcover.Noprecipitationincreaseswereobserved.The second and final event of themonthoccurredonFebruary17.Temperaturesagain started out very warm but with this event most of the precipitation wasassociated with the cold front. Temperatures cooled below the -5oC threshold at10,000 ft MSL at 10 PM and cloud seeding was initiated. Seeding continuedovernightandwashaltedatnoononFebruary18.Windswerefromthesouthwestthroughwest-northwest through theperiod.And temperaturescooled to -10oCbytheendoftheevent.ModerateicingwasagainobservedonthestructuresatWardforthisevent.ThroughtheseedingperiodatthetargetareaSNOTEL1.9inchesofSWEwasobservedduringtheseedingeventandahuge30inchesofnewsnowwasreportedatNorthstar.

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Figure10.AsinFigure5exceptforFebruary2016.

March2016The monthly summary is presented in Figure 11. On March 4 a deep storm andwarm atmospheric river event began. The 10,000 ft MSL temperatures remainedabove -5oCuntil 4AMonMarch6.By this time3.2 inches of additional SWEhadbeendepositedatMountRosewith26inchesofnewsnowatNorthstar.Moderateicingwasobservedduringtheseedingperiod.

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By 4 AM on March 6 the temperatures at 10,000 ft MSL cooled below -5oC andseeding was initiated. The generators were operated for a few hours before theclouds thinned. At 7 PM the generators were started again and operated for 12hours.Windswerestrongfromthesouth-southwestandtemperaturescolderthan-5oC.Onlylighticingwasobservedwiththisevent.AtthetargetareaSNOTEL0.7 inchesofSWEwasobservedduringtheseedingeventsand10inchesofnewsnowwasreportedatNorthstar.ThenextstormbeganonMarch11.Thetemperaturesstartedoutwarmearlyintheday but by 3 PM temperatures had cooled sufficiently to allow cloud seeding tobegin.Windswerestrongfromthesouth-southwestandicingwasagainobservedinthewebcamimagery.Duringthe3hourseedingperiod0.2ofSWEwasobservedatMount Rose SNOTEL and 3 inches of snow at Northstar. The next wave movedacrossonthemorningofMarch12.Thegeneratorswereoperatedfrom1PMthough10 AM on March 13 under strong southwesterly flow per the Reno sounding.Temperaturesat10,000ftMSLremainedjustcolderthan-5oC,withicingobservedintheWardwebcamthroughtheearlyperiodoftheeventthenbecameicedover.AtthetargetareaSNOTEL1.6inchesofSWEwasobservedduringtheseedingeventsand 21 inches of new snow was reported at Northstar. The final seedable wavemoved across early in the morning of March 14. This was a weak event withmoisturequicklyexitingthearea.NoSWEorsnowfallwasobservedwiththisevent.Aweekofclear,dryandseasonallywarmconditionspassedprior toanewstormthatmovedintotheareaontheeveningofMarch20.TemperatureswiththisstormremainedtoowarmforcloudseedinguntiltheearlyeveningofMarch21.Priortocloudseeding thewindswere fromthesouthwestwith1.0ofSWEatMountRoseandonly5inchesofsnowatNorthstar.Thecloudseedinggeneratorswerestartedasthecoldfrontcrossedtheareaand10,000ftMSLtemperaturescooledbelow-5oCand winds became northwesterly. Icing was observed during the cloud seedingevent(Fig.12).AtthetargetareaSNOTEL0.4inchesofSWEwasobservedduringtheseedingeventsand12inchesofnewsnowwasreportedatNorthstar.ThefinaleventofMarchoccurredatsunriseonthe28th.Thiswasashort2.5hourevent tucked into the time periods that had the appropriate winds andtemperaturesforcloudseeding.IcingwasobservedduringthiseventontheWardwebcam. Thewinds became unfavorable from the northeast as the stormmovedintothesouthernSierra.Therewas0.3inchesofSWEassociatedwiththiseventandNorthstarreported9inchesofsnow.Someofthissnowfellunderthenortheasterlywindswhencloudseedingwasnotactive.

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Figure11.AsinFigure5exceptforMarch2016.

22

Figure12.IcingonthestructuresatWardonthemorningofMarch22.

April2016The10,000ftMSLtemperaturesremainedabove-5oCthroughthefirsttwoweeksofthemonth (Fig. 13). On April 10 a stormmoved but temperatures remained toowarmtorunthecloudseedinggenerators.OnApril14afastmovingstormmovedthroughtheTahoe-Truckeeareawithlimitedmoisture.Temperaturescooledbelow-5oC at 10,000 ftMSL and the cloud seeding generatorswere operated for a fewhoursinthemorning.IcingwasobservedontheWardwebcam.Cloudbasesliftedbefore lowingagain in theevening.Thegeneratorswereoperatedagain fora fewhoursontheeveningofApril14.TherewasminimalnewSWEassociatedwiththiseventalthoughNorthstarreported3inchesofsnow.OnApril22apotent fastmovingstormmovedthroughthearea.Asthecold frontmovedintotheareawindsshiftedfromsouthwesterlytonorthwesterly.Thecloudseeding generators were operated for 10 hours during this event. Icing was

23

observedthroughtheevent(Fig.14).Therewas1.3inchesofSWEassociatedwiththiseventandtheMountRoseSNOTELreported15inchesofsnow.On April 27 a fastmoving cold front crossed the area.Winds remained from thewest-northwest through the event and temperatures at 10,000 ftMSL cooled to -6oC.Thegeneratorswereoperatedfor3hoursinthemiddleofthenight.ThenextmorningobservationsoftheWardwebcamshowednoicingwasobservedforthisevent.

Figure13.AsinFigure5exceptforApril2016.

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Figure14.IceaccretionattheendoftheApril22cloudseedingevent.

May2016InMaytemperaturesremainedabovethe-5oCthresholdforthefist20daysofthemonth(Fig.15).AstormmovedthroughonMay5thatproduced0.8inchesofSWEand6inchesofsnowacrossareasabove8,500ftMSL,buttemperaturesremainedtoowarmforseeding.TherewasonefinalseedingeventonMay20asstormanditsassociated lowcloudsdroppedsouth fromthenortheasternPacific.Temperaturescooledbelow the seeding thresholdandwinds remained favorable from thewest.Icing was observed through the seeding event. There was 0.1 inch of new SWEassociatedwiththiseventand2inchesofsnowmeasuredattheMtRoseSNOTEL.

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Figure15.AsinFigure5exceptforMay2016

Phase3

WaterAugmentationThe Phase 3 work begins after the winter season has ended and includes anestimate of the snow augmentation from the project cloud seeding activities. AsmentionedinthePhase2discussion,thereareseveralcloudseedingmeteorologicalconditions requirements that need to be present. These include the presence ofsupercooled liquid water (icing), in-cloud temperatures colder than -5oC (23oF),winddirectionsandspeeds,andatmosphericstabilityprofilesthatwouldallowthe

26

seedingplumetoreachthecloudbasesandwilldelivernewlycreated icecrystalsandsnowfallintotheTahoe-TruckeeBasin.AnevaluationoftheseconditionsinthePhase2showedthatofthe38cases33hadalltherequiredconditions.Oneofthecases, inearlyNovember,hadawindshift tonortherlynear theendof theevent,which slightly reduced the seeding efficiency for the case. Two cases hadtemperatures warm to -4.5oC for part of the event time, one case had no icingobservedinthewebcamimagesandpilotreports,andoneeventonlyhadlighticing.The leads to an excellent seeding efficiency of 95% while the generators wereoperating.The seeding effect can be computed through the following derived equation. Theprecipitation increase in the seeding area during the operations seeded period isconservativelyestimatedat0.01”ofliquidor0.1”ofincreasedsnowperhour.Paststudies of seeding plume dispersal over mountainous target area, anddocumentationofthefalloutareaofseededsnowwithinaseedingplumefromonegenerator is approximately 35 squaremiles. This area of effectwill vary as cloudconditions and wind speed vary, and can also change as the dimension of themountainbarrieralongthewinddirectionchanges.Sincealltheparameterscannotbepreciselyevaluated,thisanalysiswillusethe35mi2valueasaconstant.Theestimateoftheamountofsnowwaterproducedbyseeding(Ws)isprovidedbymultiplying the total time of gen generator operation (Ts = 1093.9 hours) by theprecipitationrateincrease(Ps=0.25mmperhour).Thisproductisthenmultipliedbytheareaofeffect(As=35sq.miles),andthenbyseedingefficiencyfortheseason(0.95).Toobtaintheestimateinunitsofacre-feetthefollowingconversionsarealsoneeded:

0.25mm=0.00328ft. 1sq.mile=640acres.So,forthe2015-16winterseasontheestimatedsnowwaterincreasefromseedingis: Ws=1093.9hx0.25mm/hx0.00328ft/mmx35sqmix640acres/sqmix0.95

Ws≈19,021acre-feetor6.1billiongallons.

Ifallofthe6.1billiongallonsofadditionalwaterfromthecloudseedingoperationsweretorunoff,itwouldbeenoughwaterfor45,240TruckeeMeadowshouseholds(anaveragemeteredTruckeeMeadowshouseholduses137,000gallonsperyear).Theprojectcostsforthisadditionalsnowwaterwasapproximately$16.25peracre-foot.

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IntheabsenceoncloudseedingLakeTahoemayhavebeendelayedfromreachingitsnatural rimby10daysand theavailablemaximumstorage inLakeTahoe thissummerwouldhavebeenreducedby15%from1.05ftto0.90ftabovethenaturalrim(Fig.16).

Figure16.StreamgaugedataattheLakeTahoeDamatTahoeCity.ThenaturalrimofLakeTahoeisat3feet.Redarrowsuggestspotential10-daydelayinLakeTahoereachingnaturalrim in absence of cloud seeding, and red dot suggests potential maximum Lake Tahoeelevation15%belowtheseededheight.

ValidationThe Western Regional Water Commission has funded the installation of newprecipitationgaugestovalidatethecloudseedingeffectivenessintheTahoeBasin.As mentioned in the Phase 1 section, two high-resolution Geonorsnow/precipitationgaugeswereinstalledinsummer2015.Threeadditionalgaugeswillbeinstalledinsummer2016andthreeadditionalgaugesinsummer2017.Forthe WY2016 cloud seeding project the observations from the initial two gaugeswereavailabletoanalyzetheseedingeffects.Thetwogaugeswerebothinstalled10to15mileseastoftheSierraCrestwiththeAllisonDrivegaugewithintheseededtarget area and the Sorenson’s gauge outside the seeded area in the control area(Fig. 17). The 30-mile distance between the gauges and their relative similarelevations and similar geographical location east of the Sierra Crest allows the

28

assumption that the precipitation ratios should be generally equal through theentirewinter.

Figure17.TheTahoecloudseedingnetworkyellowboxes.ThenewprecipitationgaugeinthetargetareaatAllisonDrivedenotedbygreencircleandthegaugeoutsideofthetargetarea(control)atSorenson’sResort(redcircleinlowerright).The precipitation events for the entire winter at the two sites were broken intoseededeventsandunseededevents.The30-miledistancebetweenthegaugesandtheirrelativesimilarelevationsandsimilargeographicallocationeastoftheSierraCrestallowstheassumptionthattheprecipitationratiosshouldbegenerallyequalacrosstheentirewinter.Precipitationfromaseededeventwasidentifiedasstartingonehourafterthegeneratorswerestartedandending3hoursafterthegeneratorswerehalted.Anyprecipitationthatwasobservedinthegaugeoutsideofthesetimeswere defined as ‘non-seeded’ events. Figure 16 shows the monthly precipitationcomparisons between the target gauge (Allison Dr.) and the control gauge(Sorenson’s)forbothseededprecipitationeventsandunseededevents(Fig.18).AOneTailedStatisticalT-Test forEqualMeans(SnedecorandCochran1989)wasconducted on themonthly data. The null hypothesiswas that there is no seedingeffectandthealternativehypothesis is thattheunseededratio is lessthanseededratio. The monthly precipitation gauge ratios between the target gauge and thecontrol gauge were computed for both the seeded and unseeded observations

29

(Table1).Tobe fair in theanalysis themonthofOctoberwasremoveddue tonoseededprecipitationandthemonthsofAprilandMaywereremovedduetounfairlyhighvaluesfortheseededratioduetoverylowseededprecipitationamountsatthecontrol gauge. The T-test critical value for no seeding effect for the sample wasfound to be values greater than -1.796,while the T-test results of the gauge datatestedwasfoundtobe-2.9(Table2).Thisshowsthenullhypothesisisrejectedandthe alternative hypothesis that there is a seeding effect at the 95% confidence isaccepted. Although the sample size was fairly low a clear statistically significantpositiveseedingeffectforincreasedprecipitationwasshown.

Figure18.Themonthlyprecipitationatboththetargetandthecontrolareafortimeperiodswith active cloud seeding (upper panel) and for time periods when cloud seeding was notactive.Targetgaugearethebarsontheleftsideofthepairsandthecontrolgaugeisontherightsideofthemonthlypairs.Table 1: Ratio between the monthly target and control precipitation gaugemeasurementsforbothunseededandunseededcases.PrecipitationRatio(Target/Control)

Unseededcases Seededcases

October2015 1.5 NocasesNovember2015 0.89 1.18December2015 1.23 2.04January2016 1.5 2.33

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February2016 0.86 2.27March2016 1.81 2.29April2016 1.38 9.85May2016 1.68 7.0Table2:Resultsofone-tailedT-testTeststatistic(T) -2.912Pooledstandarddeviation 0.401Degreesoffreedom 11Significancelevel 0.1Criticalvalue -1.796Criticalregion T<-1.796Inaddition to thestatistically significant finding that theseededgaugecollectedahigher ratio of precipitation during cloud seeding periods compared to theunseeded periods, it is found that 41% of the total precipitation observed at thetarget(Allison)gaugeoccurredduringcloudseeding(Fig.19)whileat thecontrol(Sorenson’s) gauge only 32% of the precipitationwas observed during the cloudseedingperiod(Fig20).Thisalsosuggestsapositiveseedingeffect.

Figure19.TheratioofseededtounseededprecipitationattheTargetarea.

41%

59%

Alison"SeededRaKo"ofAlisonTotalOct1-May31Precip

SeededRa,o

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Figure20.TheratioofseededtounseededprecipitationattheControlarea.

SummaryThe Tahoe-Truckee Cloud Seeding Program for Water Year 2016 was highlysuccessful. The cloud seeding generators ran verywell over thewinter andwereavailableforusewhenneeded.Therewere38cloudseedingperiodsoverthewinterandatotalof1093generator-hourswereseeding.Alloftheavailablecloudseedingeventswereseededandtheidentificationoftheseedingeventsbytheforecastteamwasexcellentleadingtoaseedingefficiencyofmorethan95%.Therewereseveralwarmstormsthatcouldnotbeseededandafewstormswithnortheasterlywindsthatwerenotseeded.Theprecipitationaugmentation isestimated tobe19,021acre-feetand9%of thetotalwinterprecipitationmayhavebeenproducedbycloudseeding.Thismayhaveled to Lake Tahoe reaching its natural rim 10 days early and added 15% morestorage to the Lake for summer 2016 than would be available without cloudseeding.Validation using the newly installed WRWC high-resolution precipitation gaugesshowed a statistically significant positive increase in precipitation due to cloudseeding.

32%

68%

Sorensen's"SeededRaKo"ofSorensen'sTotalOct1-May31Precip

SeededRa,o



Page 1 of 2

STAFF REPORT DATE: September 15, 2016 TO: Chairman and Members, Western Regional Water Commission (“WRWC”) FROM: Chris Wessel, WRWC Water Management Planner

Dan McEvoy, PhD, Climatologist, Desert Research Institute (“DRI”) SUBJECT: Presentation by DRI on the project, supported by the Regional Water

Management Fund (“RWMF”), for evaluation of long-term regional precipitation / climate variability data, and continuation of regional precipitation monitoring; and possible direction to staff – Chris Wessel, and Dan McEvoy, Ph.D., Climatologist, DRI.

SUMMARY Washoe County sponsored a precipitation gauge monitoring program over the last 17+ years, through its former Department of Water Resources, as part of its early regional water resource planning efforts. Since the consolidation of the County's water utility with the Truckee Meadows Water Authority, the precipitation gauge monitoring program no longer has a funding source. Recognizing the importance and value of precipitation data for regional water planning, staff investigated continuing the program as part of the WRWC's statutory regional water planning mandate. The program involves data collection and maintenance of 77 manual “can” gauges (the "Network") where measurements are collected. The gauges are serviced twice a year. The intended use of the precipitation data was to validate existing perennial groundwater recharge estimates within the targeted hydrobasins. The Network data has recently been compiled electronically and provides a unique opportunity to analyze the quality of Network precipitation records and use the data to validate spatial estimates of precipitation, while potentially improving existing groundwater recharge estimates. At staff’s request, DRI submitted a proposal, which was approved by the Northern Nevada Water Planning Commission, to provide DRI personnel to: 1) assist in the monitoring and maintenance of the Network ($21,883); and, 2) perform an extensive analysis on the Network precipitation records and compare data to several gridded precipitation products ($16,106). This component will be a one-time expense. Dan McEvoy, PhD, Applied Climatologist for DRI, will be the lead scientist for the project. He will provide a brief presentation regarding the project. FISCAL IMPACT The fiscal impact to the RWMF will be $37,989 which was anticipated in the fiscal year 2016-2017 approved budget. Budget authority is located in Fund Group 766, Fund 7066, Account Number 710100, Professional Services, Cost Object WP310007.

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RECOMMENDATION Staff recommends that the WRWC accept the report and provide direction to staff as necessary. POSSIBLE MOTION Should the Commission agree with staff’s recommendation, a possible motion would be “Move to accept the report”.

CW:df Attachment: DRI Scope of Work

9-21-16: WRWC Agenda Item 10 Attachment

Washoe County Rain Gauge Network: Continued Operation Plan and Historical

Data Analysis Personnel: Dan McEvoy, Greg McCurdy, and Albert Wolf, Desert Research Institute (DRI) and

Western Regional Climate Center (WRCC)

Purpose

Washoe County installed and maintained a storage rain gauge network (Network) of over 80 gauges with records that date back to the late 1990s. Following the recent merger of the Washoe County water utility with Truckee Meadows Water Authority, the Network program responsibilities have been assumed by the Western Regional Water Commission (WRWC). The program involves data collection and maintenance of manual gauges where measurements are collected and gauges are serviced twice a year. The intended use of the precipitation data was to validate and potentially improve existing groundwater recharge estimates that are commonly calculated using Hardman maps or Parameter Regression on Independent Slopes Model (PRISM; Daly et al. 1994) data. Additionally, Network could be used to provide improved monitoring of regional water sources and supplies. Precipitation measurements outside of the Network are sparse in this region, especially central and northern Washoe County, and minimal efforts have been put into validating spatial estimates of precipitation. The Network data has recently been compiled electronically and provides a unique opportunity to analyze the quality of Network precipitation records, use the Network data to validate spatial estimates of precipitation, and potentially improve existing groundwater recharge estimates. We are proposing to 1) have Desert Research Institute (DRI) assist in the monitoring and maintenance of the network and 2) perform an extensive analysis on the Network precipitation records and compare data to several gridded precipitation products.

Scope of Work

Task 1: Network Monitoring and Maintenance

DRI has a long history of weather station installation and maintenance and Greg McCurdy and Albert Wolff have extensive experience in this field and have spent significant time in remote regions of Nevada. DRI will assist WRWC staff in the collection and maintenance of the Network. This partnership between WRWC and DRI staff will help to develop familiarity with the locations of gauges, routes to follow, measurement process, precipitation record keeping, and gauge maintenance. Fieldwork will be conducted twice a year, one in the Fall and one in the Spring, to the Network to empty gauges, record precipitation measurements, and perform maintenance on all gauges.

Task 2: Network historical data analysis

Washoe County staff has recently compiled all of the Network data (from 83 gauges) into a digital Microsoft Excel data base. For each gauge the measurement start and end date, total precipitation, and number of days in the accumulation period are listed. Latitude, longitude, and elevation metadata are listed for most stations. This data format allows for comparison to daily gridded spatial estimates of precipitation from commonly used products such as the PRISM and Daily Surface Weather and Climatological Summaries (Daymet; Thornton et al. 1997). Prior to comparison to gridded data a thorough QA/QC of all Network data will be conducted to eliminate any spurious measurements. Dr. McEvoy has extensive experience with weather station data QA/QC and evaluating gridded data products in complex terrain using ground based observations. McEvoy et al. (2014) used observations from the Nevada Climate-Ecohydrological Assessment Network (NevCAN; Mensing et al. 2013) in eastern and southern Nevada to evaluate spatial estimates from PRISM, Daymet, and the University of Idaho’s gridded meteorological data (gridMET; Abatzoglou 2011). A highlight and take home message from McEvoy et al. (2014) is that using independent observations (not used to generate gridded data; e.g., NevCAN and Network) is recommended to evaluate and potentially improve gridded data estimates. Jeton et al. (2005) evaluated PRISM 1961-90 and 1971-2000 normals over Nevada and show that control points used as input to PRISM are somewhat dense spatially in southwest Washoe County, but there is a major decrease in station density from about Pyramid Lake to the northern extent of Washoe county where few control points exist (Figure 1). The Network could provide valuable insight on the performance of gridded data products in the data sparse regions of Washoe County.

Daily data from PRISM, Daymet, and gridMET will be obtained for the grid point nearest to each Network station. At each location gridded data will be summed to match the measurement periods for the entire observed record. For example, a measurement period starts on 10/14/1998 and ends 2/1/1999 with a total of 110 days. Gridded data estimates for this exact period will be summed and compared to the observed values. Error statistics including correlation, bias, and root mean squared error will be computed at each station using the entire record. Since measurement periods all have different lengths it will be difficult to obtain monthly, seasonal, or annual values, and the uncertainty in the statistics will increase. A final report will be written to summarize the results from the data analysis and discuss implications for potential hydrologic applications using the Network data such as groundwater recharge estimates and precipitation trend analysis.

Figure 1. Network locations (blue dots) and PRISM control points (green dots) used in Jeton et al. (2005).

Cost Estimate

The following cost is an estimated cost breakdown for completion of the work outlined above.

Task 1: Network Monitoring and Maintenance

Description Time Total Greg McCurdy rate 0.5 (months) $12,859 Albert Wolff rate 120 (hours) $5,894 Travel mileage $2,797 Supplies $333

Total $21,883

Task 2: Network historical data analysis

Description Time Total Dan McEvoy 1.75 (months) $16,106 Total $16,106

Estimated total project cost (1 year): $37, 988

References

Abatzoglou, J. T., 2011: Development of gridded surface meteorological data for ecological applications and modeling. Int. J. Climatol. 33, 121–131, DOI: 10.1002/joc.3413. Daly, C., R. P. Neilson, and D. L. Phillips, 1994: A statistical-topographic model for mapping climatological precipitation over mountainous terrain. J. Appl. Meteor., 33, 140-158. Jeton, A. E., S. A. Watkins, T. J. Lopes, and J. L. Huntington, 2006: Evaluation of precipitation estimates from PRISM for the 1961–90 and 1971–2000 data sets, Nevada. USGS Scientific Investigations Rep. 2005-5291, 25 pp. [Available online at http://pubs.usgs.gov/sir/2005/5291/PDF/SIR2005_5291.pdf.]

McEvoy, D. J., Mejia, J. F., Huntington, J. L., 2014: Use of an Observation Network in the Great Basin to Evaluate Gridded Climate Data, J. Hydrometeorol., 15, 1913-1931.

Mensing, S., and Coauthors, 2013: A network for observing Great Basin climate change. Eos, Trans. Amer. Geophys. Union, 94, 105–106, doi:10.1002/2013EO110001.

Thornton, P. E., S. W. Running, and M. A. White, 1997. Generating surfaces of daily meteorology variables over large regions of complex terrain. J. Hydrol., 190, 214-251.

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