2012 Annual Report

2012

ANNUAL REPORT

ND S TSI T TA UTTEEMAEN COT NH SE O LBI AY D A TI E ND T A Q U A R I U M O F T H E B AY

TH E BAY INSTI TUTE A ND AQ UAR I UM O F TH E BAY ANNUAL REPORT 2012

TABLE OF CONTENTS L E T T E R F R O M T H E C H A I R M A N

2 0 1 2 L E A D E R S H I P

5

R I V E R S & D E LT A

8

B AY R E S T O R A T I O N

10

A S S O C I A T I O N O F Z O O S A N D A Q U A R I U M S

12

A N I M A L C A R E A N D E X H I B I T S

14

E D U C A T I O N A N D C O N S E R VA T I O N

18

O U T R E A C H

20

F I N A N C I A L S S T A T E M E N T S

22

T H A N K Y O U

26

6

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LETTER FROM THE CHAIRMAN STEVEN N. MACHTINGER

During 2012, our organization continued to help shape the

We made a big splash on the issue of rising sea levels with

policy debates over pending decisions that will determine

our report called “The Horizontal Levee,” which showed

the health of San Francisco Bay and its ecosystem for

how the restoration of tidal marshes and wetlands can

decades to come. Our groundbreaking report, “Collateral

protect low-lying developments from flooding at a

Damage,” documented the catastrophic environmental

fraction of the cost of constructing artificial barriers. This

effects of the giant pumping system that redirects

kind of forward-thinking, comprehensive analysis has

water from the Sacramento-San Joaquin Delta into the

become a hallmark of our approach to the critical issues

San Joaquin valley and southern California. We led the

confronting the Bay and the people and other creatures

effort to critique and improve the Bay Delta Conservation

who make it our home.

Plan–Governor Brown’s proposed solution to the problem In addition, Aquarium of the Bay has once again proven of the giant pumps–highlighting the need for increased itself to be a top institution in the care and education of Delta flows and more aggressive conservation of our finite marine animals, as it has successfully achieved recertificawater resources. We presented the environmental tion by the Association of Zoos and Aquariums (AZA) this community’s most exhaustive scientific case for year. This accreditation signifies that Aquarium of the Bay revising the current, insufficiently protective flow and has met the difficult-to-achieve high standards of animal salinity requirements in the opening phase of the State of care, veterinary programs, conservation, and education California’s update of the water quality standards for the set by AZA. The hard-working staff at Aquarium of the Bay-Delta estuary. Our oversight and guidance was Bay have put in countless hours in order to provide the critical to the successful implementation of the historic best care possible to the animals, and have dedicated Friant Dam litigation settlement to restore the San Joathemselves to the conservation of these animals and their quin River, including forcing the federal government to natural environment by educating over 600,000 guests release more water to comply with the settlement’s terms. that visit the Aquarium each year.

As a result of our efforts and those of our partners in other like-minded organizations, Chinook salmon glided

These projects and similar accomplishments on

through the river’s clear waters in 2012 for the first time in

behalf of the Bay would not be possible without

over 62 years.

your generous support. We are most grateful.

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2012 LEADERSHIP T H E B AY INSTITUTE BOARD OF DIRECTORS Steven Machtinger, Chair Nancy Carlson, First Vice Chair Nancy Werner, Second Vice Chair Marcia Brockbank, Secretary Morgan Tarr, Treasurer Carol Lind, Past Chair Karen Collins Ethel Daly Harrison C. “Hap” Dunning Robert J. Erickson Dierdre “Derry” Henderson Michael Law Dean Morehous Arlene Wong

2 0 1 2 T H E B AY I N S T I T U T E A Q U A R I U M F O U N D AT I O N Steven N. Machtinger, President Harvey Glasser, MD, Chief Financial Officer Carol K. Lind, Secretary Morgan Tarr

T H E B AY I N S T I T U T E EXECUTIVE LEADERSHIP John Frawley, President and CEO Sheryl Barbic, Development Director Gary Bobker, Rivers and Delta Program Director Bobbi Evans, Chief Financial Director Marc Holmes, Bay Restoration Program Director Cyril Manning, Marketing and Communications Director

A Q U A R I U M O F T H E B AY EXECUTIVE LEADERSHIP John Frawley, President and CEO Bobbi Evans, Chief Financial Officer Carrie Chen, Director of Education and Conservation Chris Connors, Director of Operations Jennie Leichtling, Director of Development Chris Low, Director of Facilities and Life Support Cyril Manning, Director of Marketing and Communications Christina J. Slager, Director of Animal Care and Exhibits Cathy Tolentino, Director of Sales and Events

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RIVERS & DELTA In 2012 the Rivers and Delta Program team presented the environmental community’s scientific case for new flow requirements in the opening phases of updating the water quality standards that protect the Bay-Delta, led the effort to improve Governor Brown’s proposal for operating giant pumping plants in the Delta over the next 50 years, and helped oversee implementation of the San Joaquin River restoration agreement.

C O L L AT E R A L D A M A G E The Sacramento-San Joaquin Delta is at the heart of the Bay’s vast watershed, a unique inland river delta that provides habitat for numerous fish and wildlife species, many found nowhere else on earth. The southern part of the Delta is also home to giant federal and state pumping plants that export water to the San Joaquin Valley and Southern California. These diversions draw water from the Sacramento and San Joaquin Rivers towards the pumps instead of the ocean, creating reverse flows in the Delta channels and causing massive environmental problems.

In March 2012, The Bay Institute’s Rivers and Delta team published “Collateral Damage,” a major new report documenting the effects of the giant pumps on the Delta’s ecosystem. The report details how operation of these pumps kills tens of millions of fish every year, drastically reduces the Delta’s natural productivity, and are a significant factor in the decline of native species.

“Collateral Damage” also identifies potential solutions to the problems, including changes to how the pumps are operated and changes to how water is used – and how much water – in the areas that currently export from the Delta.

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BAY RESTORATION The Bay Restoration team studies and publicizes the enormous public benefits that San Francisco Bay tidal marshes provide, and works to protect and restore these unique and valuable wetland habitats. In 1849 there were 196,000 acres of tidal marshes in San Francisco Bay, but by 1990, all but 16,000 acres had been destroyed due to earthen levees built around the marshes to “dry them out” by preventing tidewaters from reaching them.

The goal of the Bay Restoration Program is to promote restoration of at least 100,000 acres of the Bay’s original marshes.

T H E H O R I Z O N TA L L E V E E In 2012, the Bay Restoration Program undertook a cutting-edge investigation into the benefits that tidal marshes can provide by reducing damage to shoreline development that is anticipated as sea level continues to rise another fourteen inches by 2050. Major regional highways will flood regularly if nothing is done, and vital public infrastructure such as railroad lines and water treatment plants are also at risk. As part of an ongoing partnership with expert wetland restoration colleagues at ESA-PWA, Bay Restoration studied the ability of tidal marshes to reduce storm surge and flooding of vulnerable shoreline public, residential and commercial structures.

Knowing that wetlands reduce flooding caused by storm surges, the Bay Restoration team examined the costs and benefits of using restored tidal marshes to significantly lower incidents of flooding. The study determined that the cost of flood protection in heavily developed areas may be reduced by over 50% using this “green infrastructure” approach. The savings can amount to hundreds of millions of dollars in levee construction costs alone, while preventing billions of dollars in property damage. Bay Restoration calls restored marshes that function as a flood protection barrier “The Horizontal Levee.” The results of the Bay Restoration Programs innovative study are to be published in early 2013.

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ASSOCIATION OF ZOOS & AQUARIUMS A C C R E D I TAT I O N Aquarium of the Bay is proud to be accredited by the Association of Zoos and Aquariums (AZA). Aquarium of the Bay has been accredited by AZA since 2002, and has continued to meet the high standards of animal care set by AZA year after year. Due for recertification in 2012, accreditation was once again granted to Aquarium of the Bay following a review to ensure that the Aquarium currently meets and will continue to meet ever-rising standards in areas including animal care, veterinary programs, conservation, education, and safety.

In a statement released by AZA, Aquarium of the Bay was described as “an ideal place for people to get in touch with nature.” The statement went on to express that “Aquarium of the Bay supports its community by providing affordable family recreation and science-based education programs that inspire. Only the finest institutions in the world rise to this level, and we congratulate the professionals at Aquarium of the Bay for their hard work.”

Founded in 1924, the Association of Zoos and Aquariums (AZA) is a nonprofit organization dedicated to the advancement of zoos and aquariums in the areas of conservation, education, science, and recreation. Look for the AZA logo whenever you visit a zoo or aquarium as your assurance that you are supporting an institution dedicated to providing excellent care for animals, a great experience for you, and a better future for all living things.

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ANIMAL CARE & EXHIBITS The exhibits at Aquarium of the Bay are the keystone to a compelling guest e xperience. People visit the Aquarium to see live animals, and Aquarium of the Bay’s Animal Care and Exhibits Department curates over 20,000 mammals, fishes, and invertebrates in healthy, beautifully designed and habitat appropriate exhibits.

These displays entertain, educate, and inspire guests to care about local aquatic life and Bay Area habitats.

D E PA R T M E N T HIGHLIGHTS »» Published papers and abstracts about ongoing work raising

captive-born Angel sharks, Squatina californica »» Research and planning began for the North American river

otter exhibit, opening in 2013 »» Trained staff in emergency oiled wildlife care »» Presented original sevengill shark, Notorynchus cepedianus,

research to the Gulf of the Farallones Marine Sanctuary

Board in support of the expansion of the existing

sanctuary boundaries »» Recorded successful animal births including Pacific tree

frogs, Pseudacris regilla, and bat rays, Myliobatis californica

GO WITH THE FLOW In the summer of 2012, Aquarium of the Bay enhanced its jellies exhibit, Go With the Flow, to include two new species of these mesmerizing creatures. Japanese sea nettles, Chrysoara fuscescens, and lagoon jellies, Mastigias sp., joined the moon jellies, Aurelia aurita, and Pacific sea nettles, Chrysoara pacifica, that were already visitor favorites. To accommodate the new jellies, two kreisel tanks (specially-designed circular tanks that keep delicate animals suspended as they float around the circumference of the tank) were set in the wall facing the elevators, welcoming guests into a serene environment as they are introduced to the Under the Bay gallery. The expansion of the Go With the Flow exhibit augmented Aquarium efforts to continue to educate visitors about ocean issues, including climate change and plastics in the ocean.

U N D A R I A R E M O VA L In 2009, a non-native species of kelp known as Undaria pinafinata was discovered in the San Francisco Bay. Undaria is an invasive species that negatively affects the native food web and upsets existing habitats.

Upon the discovery of Undaria in San Francisco, biologists at Aquarium of the Bay collaborated with the Smithsonian Institute, conducting field research and helping to remove this kelp species from the Fisherman’s Wharf area. On a weekly basis, Aquarium biologists went out to collect Undaria from the local piers, analyzed their collection and shared their findings with scientists at the Smithsonian Institution.

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EDUCATION & CONSERVATION Aquarium of the Bay’s Education Department educates the next generation of environmental stewards about the San Francisco Bay watershed through programs that inspire, empower, and provide a sense of responsibility to protect this important ecosystem.

PUBLIC PROGRAMS 2012 was a year of growth for the public programs and events hosted by the Education & Conservation Department at Aquarium of the Bay. After participating in the National Network of Ocean and Climate Change Interpretation in 2011, the use of the universal values framing interpretation strategy was implemented in the PG&E Bay Lab and during other public programs. This year, Aquarium of the Bay hosted 13 visitor events and themed public programs, launched a new Jelly Talk to coincide with the new exhibit, and implemented different critical issues into daily programming. Over 76,000 guests present for these daily talks and demonstrations. Aquarium of the Bay continues to be a regional leader in climate change interpretation and is nationally known among fellow climate interpreters.

D I S C O V E R T H E B AY B O O T H Aquarium of the Bay is proud and pleased to be able to offer free education to 16,000 Bay Area students from K-12 at the Aquarium annually. The Aquarium also offers free education to the passing public through the "Discovery the Bay" booth which is set up in the Aquarium’s front plaza. Supported by naturalists, our Discover the Bay booth focuses on educating the general public about the animals that live in the bay, their ecosystem, and the importance of protecting them. Our Discover the Bay booth was present from Memorial Day to Labor Day, as well as various weekends and holidays throughout the rest of the year, and we provided over 975 hours of free environmental education to visitors from all around the world.

OT H E R D E PA R T M E N T HIGHLIGHTS »» Hosted 11,673 Bay Area students for free programs, a 12.5%

increase from 2011 to 2012 »» Developed and maintained relationships with over 35 local

non-profit environmental organizations »» Distributed 2100 free tickets to other nonprofit community

organizations »» Increased the number of free programs we can provide to local

schools for our Hybrid Ferry scholarship programs for the

2012-2013 school year »» Provided on-going training for Aquarium staff on how to meet

the needs of our special needs guests

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OUTREACH PROGRAM 2012 proved to be a banner year for outreach in the community. Through our America’s Cup Healthy Ocean Project partnership, local festivals, education programs, and new events with local groups, The Bay Institute and Aquarium of the Bay were able to reach more people than ever this year.

A M E R I C A ’ S C U P H E A LT H Y O C E A N P R O J E C T PA R T N E R S H I P Driven by its commitment to be “more than a sport,” the America’s Cup Healthy Ocean Project is the embodiment of the America’s Cup commitment to leave a positive social and environmental legacy for the benefit of future generations. During the races in San Francisco, Aquarium of the Bay was the lead local environmental sponsor for America’s Cup. This role led to several incredible events in the Bay Theater at Aquarium of the Bay as part of the America’s Cup Healthy Ocean Project Film and Lecture Series. Drawing over 700 people into the Aquarium, this series featured talks with Dr. Sylvia Earle, Jean Michele Cousteau, pro-surfer Grant Washburn, shark expert John McCosker, and more. The America’s Cup Healthy Ocean Project Film and Lecture Series will continue through the end of the races in 2013, before transforming into the Coast and Ocean Film and Lecture Series, a new program for Aquarium of the Bay and The Bay Institute.

COMMUNITY OUTREACH In 2012, Aquarium of the Bay staff and volunteers got out into the community in San Francisco and the Bay Area for a number of outreach opportunities.

Some of the events attended include the Bay Area Science Festival, the San Francisco Pride Festival, Fisherman’s Wharf Crab Fest, the Art and Soul Festival in Oakland, and the California Wildlife Festival in Berkeley. In addition, members of Aquarium of the Bay’s Education and Conservation Department had a regular presence at nearly all America’s Cup events, talking to the public about three key issues facing the ocean: sustainable seafood, plastic and marine debris in the ocean, and marine protected areas.

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FINANCIAL STATEMENTS C O N S O L I D AT E D S TAT E M E N T OF ACTIVITIES & NET ASSETS

B AY R E S T O R A T I O N

$ 1 9 4 ,1 4 0 C O N S E R VA T I O N P R O G R A M S

$226,213 FUNDRAISING

$343,909

WAT E R S H E D E D U C AT I O N

$ 8 2 ,1 5 4 R I V E R S & D E LT A S

$555,875 ANIMAL CARE & RESEARCH

$786,799

EXPENSES $9,590,243

E D U C AT I O N P R O G R A M S

$762,710

2012 MANAGEMENT & GENERAL

$1,514,713

EXHIBITS

$ 5 ,1 2 3 ,73 0

OT H E R R E V E N U E

$178,682 FUNDRAISING

PROGRAM/CONTRACT

$129,298

$434,432 PUBLIC SUPPORT

$476,839

TICKET SALES

$ 7, 9 1 2 , 7 5 4 GIFT SHOP

$819,589 INTEREST

$31,961

REVENUE $9,983,555

2012

T HE BAY IN STI TUTE AN D TH E BAY IN STI TUTE AQUA R I U M FOUNDATION C O N S O L I D AT E D S TAT E M E N T O F FINANCIAL POSITION DECEMBER 31, 2012

CURRENT ASSETS Cash $1,974,134 Short-Term Investments $523,770 Gift Shop Inventories $123,199 Accounts & Other Receivables $166,682 Prepaid Loan Fees & Other Assets

$172,930

Tickets Held For Sale $16,195 TOTAL $2,976,910

NON-CURRENT ASSETS Property & Equipment – Pledged

$7,579,927

Construction In Progress $139,940 Cash Restricted For Loan Payments

$910,000

Investments $578,612 Prepaid Loan Fees $285,196 Deposits & Other Assets $38,938 TOTAL $9,532,613

CURRENT ASSETS + NON-CURRENT ASSETS T O TA L $12,509,523

CURRENT LIABILITIES Accounts Payable $348,554 Accrued Expenses $313,457 Deferred Income $113,209 Accrued Rent $201,233 CURRENT LIABILITIES + L O N G -T E R M LIABILITIES + NET ASSETS T O TA L

Current Portion of Notes Payable

$1,043,962

$12,509,523

Accrued Rent $59,416

TOTAL $2,020,415

L O N G -T E R M L I A B I L I T I E S Notes Payable $7,032,249

TOTAL $9,112,080

NET ASSETS Unrestricted $2,347,783 Temporarily Restricted $1,049,660 TOTAL $3,397,443

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T HANK YOU F RO M T HE BAY IN STI TUTE AN D TH E BAY IN STI TUTE AQUA R I U M FOUNDATION

$10,000 AND ABOVE Alcatraz Cruises, a Hornblower Company America’s Cup Healthy Ocean Project California Wildlife Foundation

TO O U R D O N O R S Center for Ecosystem Management and Restoration Ducks Unlimited Environment Now Robert J. Erickson Benjamin and Ruth Hammett Deirdre H. Henderson Steven and Susan Machtinger National Fish and Wildlife Foundation The Ocean Project Pacific Gas & Electric Company Port of San Francisco Resources Legacy Fund Richard and Rhoda Goldman Fund The San Francisco Foundation Union Bank Foundation Weeden Foundation

$5,000 - $9,999

Association of Bay Area Governments

$2,500 - $4,999

Blue and Gold Fleet

Baydelta Maritime

Nancy and Andrew Carlson

Marcia and Norm Brockbank

CityPASS, Inc.

Helen D. Buchanan

Harrison “Hap” C. Dunning

Camp Denali

Fog Harbor Fish House

Ethel and Eugene Daly

Global Gourmet Catering

ESA PWA

Monterey Bay Aquarium Foundation

Fisherman’s Wharf Community Benefit District

Napa County Wildlife Conservation Commission

Fred Gellert Family Foundation

North Bay Watershed Association

Golden Gate Salmon Association

PIER 39

The Griepp & Lesko Families

San Francisco Maritime National Park Association

Promenade Wines

San Francisco Public Utilities Commission

Recology Golden Gate

Simco Restaurants

Saintsbury

Toll Bridge Program Oversight Committee

Super Sightseeing Tours

Nancy and Christian Werner

The Schmitz-Fromherz Family Fund

Winona Corporation

The Spider, Inc. Thomas and Eva Fong Foundation Mr. and Mrs. Stephen D. Watkins Sonoma Ecology Center

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T HANK YOU F RO M T HE BAY IN STI TUTE AN D TH E BAY IN STI TUTE AQUA R I U M FOUNDATION

$1,000 - $2,499 Mrs. Brent M. Abel Association of Zoos and Aquariums Barney & Barney LLC

TO O U R D O N O R S

Carolyn Beckedorff and S. Anthony DiGangi Nancy Blair Norm and Marty Buckhart California Rice Commission W. Hardy Callcott, Esq. Hal Candee and Eliza Brown Phillip Cary Chicago Zoological Society Kathy Cleairmont Coach America/Gray Line San Francisco Karen Collins Dibble & Dibble DriWater, Inc. Joseph W. Donner, III East Bay Regional Park District Catherine Egelhoff and Randall Block John and Anita Frawley Richard A. and Luisiana Gale GEICO-Pleasant Hill Hard Rock CafĂŠ

Harvey and Gail Glasser

The Stanford Inn

David Golden

Stillwater Sciences

Theodora and Kenneth Gray

Morgan and Bill Tarr

Coke and James Hallowell

Trish’s Dishes

Anne Halsted

Wacky Jacky Sportfishing

Jared Robert Nodelman Foundation Fund

Walsh Carter and Associates

Jerry J. Wilson Memorial Foundation

Captain Stephen and Linda Ware

James Ledwith

Wells Fargo Home Mortgage

Carol Lind and James English

Nick and Amanda Wilcox

Map West, Inc.

Arlene Wong and Ken Chow

Marin Independent Journal

Worldwide Facilities, Inc.

McBain & Trush, Inc. Melange Productions, Inc.

$500 - $999

Bob Mellinger

ABC7 KGO-TV

Mirnahill Foundation

Sheryl Barbic and Alirio de Carvalho

Natural Resources Defense Council

Greg Bard

Sergio and Larry Nibbi Northpoint Shopping Center Sam and Mandy Parke Purple Lady/Barbara J. Meislin Fund Scooter Simmons Resource Renewal Institute Ray and Anna Sargoni Jill Spangenberg and Jerome Barakos

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B AY. O R G 350 Bay St. #100, PMB 316 | San Francisco, CA 94133 Phone: 415.262.4735 | Fax: 415.623.5324