Why We Need a Strong Mayor

I want to expand a bit on my thoughts regarding making the mayor separate from the council.

One of the hallmarks of our constitution is checks and balances and separation of powers. We have a judicial branch to interpret law, an executive branch that enforces law, and a legislative branch that makes law.

Imagine if the governor was an at-large legislator? What if the president couldn’t veto anything? Would we accept that as United States citizens? Well, we do it’s called local government.

Now when I first started following city politics about five years ago, I didn’t know how local governments were set up. I didn’t know that the mayor in most cities was just an at-large council member. In fact, one of the first Google searches I did on Mayor Bowman was “ReNae Bowman vetoes.” Of course I didn’t find anything.

The council will tell you that there are checks and balances because we have commissions like Planning, Human Rights, Environmental Quality, Park & Rec, and Charter and that is where citizen input comes from. Issues are debated in these commissions make recommendations to the councils on what to do.

Well, there are a few problems with that. First, the council controls who gets on these commissions. There is an interview process and then the council votes up or down. So they hypothetically they can keep anyone off that they disagree with or they think will cause trouble. Second, these meetings are not recorded, on TV, or on the Internet. Of course, in theory they are open to the public but who has time to attend all these meetings? The minutes are poorly kept and tell you nothing. I can’t even get a roster of who is on these commissions.

Lastly, it’s again the process. The commission will discuss an issue then make a recommendation to the council. Then the council talks about it at a work session and comes to a consensus. Then YOU the public finally find out what’s going on. But, of course, a decision on what to do has already been made. The debate has already taken place.

And since the mayor is in on the meetings and has one vote, (not veto power) stopping anything you don’t want is damn near impossible. And if you go a public hearing and object, the council will condescendingly tell you that you should have showed up to a commission meeting six months earlier.

So are we represented well? Do we need a change and a strong mayor? Vote for me on Tuesday and help me make that happen.

August 12, 2012 at 11:30 am Leave a comment

11 Days to Go!

OK folks, just 11 days until we go to the polls! There are things you do to help!

If you want a Richter for Mayor yard sign go here;

My contact page 

If you want to follow me on twitter go here;

My Twitter page

Like my campaign on facebook here;

My Facebook page

And to find your polling place click here…..it possible where you vote has changed;

Polling Place

Let’s get out and vote Andrew Richter for Crystal Mayor!!!!! August 4 is the big day!

August 3, 2012 at 3:08 am Leave a comment

Rebutting Mayor Bowman

Well the League of Women’s Voters debate is in the can and it was interesting to say the least. It’s weird, after butting heads with Mayor Bowman over the years, I sensed that our little cold war had cooled. We’ve emailed back and forth and spoken respectfully a few times. We had a nice conversation at the frolics and I hoped that would continue.

I think it took a step backwards last night.

Mayor Bowman fired the first shot in her opening statement;

“My opponents tonight will try to make the case that the sky is falling and evil lurks behind each corner.  Unfortunately, their statements are used in an attempt to foster the notion that proven qualifications do not count, but they do.”

Now I don’t have a problem being criticized. I don’t have a problem with people disagreeing with me. That’s just a part of politics. You have to learn how to handle that. But I don’t think the sky is falling and I don’t think evil lurks around every corner. I never made any such statement. I also never called Mayor Bowman unqualified though I think she perhaps is implying that Jim Adams and I are unqualified. I simply disagree with her on issues. It’s nothing more than that. I am a citizen who is worried about the city’s future and I’m a citizen who wants to serve. Is there something wrong with that?

I used my opening statement to try to distinguish myself from ReNae and Jim Adams. I didn’t attack them personally, in fact, I said that “I respect both of my opponents” and that really is the truth. Jim was respectful as well. He didn’t attack me or ReNae.

The debate then shifted to what would help business thrive in Crystal. Now I think there a lot of little things the city can do. They can do everything from lowering fees, licenses, and permit requirements. They could also lower taxes and stop the special assessments. The final point I made was that I’d like the city to treat all business equally. We shouldn’t give money or bailout any business while we let others go bankrupt.

Again Mayor Bowman attacked me by bringing up Northwest Family Physicians and the “seed money” the city “invested” in that move of that business. She claimed the “money will be paid back in five years.” Of course that misses the point. The point is why are we giving or loaning them money int he first place. Isn’t that what a bank is for? How do we decide what businesses we are going to give money to and what businesses we aren’t?

I then pointed out in another question that our Park & Recreation Department operates at a 69% loss. I made the suggestion that perhaps we need to talk to other cities and share the service if possible. The mayor claimed that I was wrong and said that some programs actually make money. Well here is a statement from Crystal’s budget on page 66 about the funding source;

“The department is funded through the general fund. Recreation program receipts cover 30.9% of the total department expenditures.”

Now am I reading this wrong? If “revenue” from program receipts covers only 30.9% of the cost who is picking up the rest of it? Which programs make money? Is the budget wrong? Is Mayor Bowman ignorant of this?  It looks to me like we operate the department at a 69% loss.

The final question was somewhat directed at me about making the mayor a full-time position. Of course that is one thing that I have on my 12 X 16 Plan. I made the suggestion because I don’t like the city manager/weak mayor form of government where the mayor is just an “at large councilperson” not an executive like a governor or the president. I also believe that we need checks and balances a separation of powers in government.

After I made an answer with these points Mayor Bowman weighed in claiming that (and I’m paraphrasing) the city manager controls the operations and the city council is the checks and balances.

The city council is the “checks and balances?” Checks and balances are the bedrock of what are country was founded on. Governors and the president have veto power while the legislatures and congress act as the legislative branch. That is what a representative republic is. So should we make the governor an at large legislator? Of course that sounds ridiculous. So why do we run our city governments differently? Our cities, school districts, and counties are run with simple majority rule. I want to change that and get the debate going. I don’t see how the current makeup of the council gives us checks and balances.

Mayor Bowman then used her final statement to chide Jim Adams and I for not attending their first budget meeting;

“My opponents speak of financial issues but recently demonstrated their lack of commitment toward the review and approval of our annual budget, the council’s most important job.  Neither opponent attended the first 2013 budget session on Tuesday, July 31. How deep is the commitment if one does not attend the most important business meeting of the year?  If they are not committed to budget work, can claims of commitment be true, or just words.”  

Talk about a cheap shot. You go to a meeting that you get paid to go to and that proves that you are committed and Jim and I are just full of words?

First off Chrissy Sears, the city clerk, emailed me the work packet last Friday. I spent part of the weekend reading it and familiarizing myself with it and truth be told I’ve attended some of these budget meetings in the past and I feel like I have a good grasp of what is going on.

Second, my campaign and I have decided that door knocking and lit dropping are the top priorities right now. Sitting in budget meetings doesn’t win me any votes.

Third, I didn’t just sit around all night and do nothing. I made phone calls, answered emails, handed out lit, and put out yard signs but I guess I’m not committed to the city.

Implying that I don’t care about the budget is that type of condescending arrogance from this council that I’ve just had it with. Give me the vote August 14 and we can change all that!

August 3, 2012 at 2:54 am 5 comments

CCC Plan

We in Crystal desperately need to go through our city codes and make changes here are some that I’d like to change. Once again I am the only candidate to put anything specific forward.

City Code Changes Plan

1. Remove overnight parking ban and the $25 permit requirement

2. Reduce the on-sale liquor license by $1,000

3. Reduce the pawn broker initial license by $1,000 and renewal by $500

4. Cut fees for home improvements by 1/2

5. Remove unnecessary garage sale restrictions

6. Return rental license fee’s to the 2009 level

7. Create an ordinance to allow residents to raise chickens

8. Remove ridiculous restrictions on running home businesses

This is only a start!

Read more at my website 

July 31, 2012 at 8:37 pm Leave a comment

Parking Ban Should Be Repealed

You would think that parking in a street you pay for would be simple enough. Not in Crystal though. It is illegal to park on the street from 2-5 AM. I’ve often wondered why this law exists.

There seems to be no legitimate reason for it. I along with several others have asked the city council why this law is on the books and they have never given me or anyone else a straight answer. The council has told me I could get a permit to park on streets I pay for so I checked into it and guess what; there is a $25 fee! A fee! This is absurd! As always permits aren’t free and they can be rejected. Of course government vehicles can be parked wherever they want to be (section 1310 of our massive city code).

I’m also worried about how this law is being enforced. The Crystal Police aren’t driving down every street, every night from 2-5 AM so how are they enforcing this? I’ve talked to people who have left their cars out a twice and been ticketed both times. I’ve run into people who have left their cars out and never been ticketed. Granted there is luck involved but I think there are “hot zones” that the police are trolling. Of course the prices of these tickets keeps going up and up.

What is unsafe about parking in the street? Why can’t you do it? The fact that the city can’t give us an answer tells me that this is a revenue generator. It’s another back door tax. If they can’t get you through the front door then they get you through the back.

As your mayor I will work to repeal this ban and back door tax. We could at least repeal it from April to October or November when there is little or no snow. Mayor Bowman has shown no interest in repealing this ban and I have no clue what Jim Adams thinks. So if you want this ban repealed, it won’t happen without me as the mayor.

July 17, 2012 at 9:10 am 3 comments

Contacting Me

To those who live in Crystal,

If you want to contact me please do so at 612-819-1748 or go to www,richterformayor.com and send me a message.

I don’t check this blog every minute of every day. I’m working, on TV, knocking on doors, etc. so these are best ways to contact me. Also lease allow 24-48 to get back to you. I sometimes work nights and I don’t like to call too late or too early.

This blog is for me to go into detail about what I think and what I would do as mayor. Unlike my opponents, I actually tell you specifics about what I want to do for the city. Feel free to comment, but keep in mind it is best to contact me by phone or email.

I hope people consider this reasonable.

July 17, 2012 at 8:29 am Leave a comment

Crystal City Code Reform Part 1

Crystal, Minnesota should change its name to the “Land of Fees.” I’m going to do a series of posts Crystal city codes that I would repeal, update, or change as the mayor. While my opponents as usual offer nothing, I will tell you what I will do and prioritize as mayor.

One thing Crystal residents should know is that our city code contains over 600 items that require a fee, license of permit! And some of them are going up at an alarming rate!

Crystal Fee Schedule

In this post I want to focus on the increased housing fees. Of course, housing is delicate issue these days with home values going down and property taxes going up. Another item that keeps increasing are the fees for point of sale inspections and rental licensing fees. From 2009 to 2010 nearly all of these were raised!

Point of Sale Inspections                                   2009 fee                 2010 fee

Duplexes                                                                 $150                        $200

Duplexes – after hours surcharge                     $75                           $100

Single family                                                           $125                        $150

Single family – after hours surcharge                $60                          $75

Point of sale reinspection fee                              $50                           $60

Look at the increases? Did the cost of inspecting REALLY go up or is the city using this to “generate revenue?”

Now let’s check out the renal license fees;

Rental License Fees                                                2009 fee                 2010 fee

Duplexes                                                                      $150                         $200

Triplexes                                                                       $175                        $250

Four plexes                                                                  $200                         $300 

Five units and over                                                      $200                         $300

Single family homes                                                   $125                         $150

Suspended license reinstatement fee                    $75                           $100

Look at those increases! Some are as high as 50%! And of course these costs just get passed on to renters! Let’s work to lower these fees back and stop using the sale of a house to generate revenue!

July 13, 2012 at 1:32 pm 1 comment

Making Sense of Mayor Bowman’s Blog Post

Well as the mayor campaign gets a little more heated, Crystal Mayor ReNae Bowman has created her own campaign blog. Her first post entitled “Why I’m Running” is a good example of what I’ve been frustrated at. The post lacks specifics so let me try to interpret it for you;

Work to be done:  It would be an honor to have the opportunity to complete work started under my leadership from tightening the Crystal budget to the WMFRD Board.  The list includes a complete assessment of Public Works buildings to create an improvement plan along with weaning city budgets off LGA (Local Government Aid) without a tax spike.  Also, review/update some codes/ordinances.  

OK now let’s analyze this; the mayor wants to “wean city budgets of LGA without a tax spike. Of course that implies that we haven’t had a tax spike. Mayor Bowman took office in January 2005. The 2004 tax levy was $5,807,190. In 2010 it was $8,849,440 (2010 comprehensive annual financial report page 121). That’s $3,000,000 increase in six years! Is that not a tax spike? Notice the mayor’s clever wording; she says “tax spike” not “higher taxes.”

Another thing to notice is that the mayor doesn’t identify one thing she would cut. If you re going to “wean city budgets off LGA without a tax spike” that implies you are going to cut something doesn’t it? What are you going to cut?

Bowman also wants to “review/update some codes/ ordinances.” Notice the mayor doesn’t says she wants to REPEAL any codes nor does she identify a single code to “review or update.” In addition, if Bowman wants to change city codes, then why hasn’t she done in eight years as the mayor? She could propose changing codes at the next council meeting!

And how much money would it have cost the taxpayers if West Metro Fire had been dissolved and how would we have paid for that?

Innovative Communicator:  Founded the Crystal business Association (CBA) and implemented Citizen Input Time to open up city government to more inclusive input.  During CO RD 81 planning phase I helped facilitate citizen discussion to create an enhanced list of citizen needs and wants.

Citizen Input Time is nice, but it’s hardly innovative, and when citizens like me protested the County 81 tax levy with a petition did the mayor “facilitate citizen discussion to create an enhanced list of citizen needs and wants?”

Collaborator:  I am only one vote of seven and must work well with other to get good things done.  The current council is a wonderful example of diverse individuals committed to preserving and moving forward Crystal’s core beliefs of human rights, environmental stewardship and affordability.

I think  it’s “work well with others” but I have no clue what the council having “diverse individuals committed to preserving and moving forward Crystal’s core beliefs of human rights, environmental stewardship and affordability” means.

Fiscally responsible with tax dollars:  Keep infrastructure in good shape and make improvements that provide the best return on investment.

What does it mean exactly to keep infrastructure in good shape? Is that voting for every special assessment, phase plan, or commission recommendation that comes in front of your face? Will that not result in a tax spike? Why not let the citizens vote on a special assessment?

Biggest Challenges:

  • Sustain and improve Crystal’s quality of life to meet the changing needs of all citizens.
  • Budget Planning:  Zero growth taxes means we need to adjust for inflation but not grow or add to local government burdens.
  • Build a governance and policy manual for WMFRD Board of Directors to assure stability and sustainability.
Those are the biggest challenges we face? A policy manual for West Metro Fire? Nothing about repealing codes, cutting spending, cutting taxes, changing the charter, televising work sessions, or letting the citizens vote on a referendum to cap spending! As I’ve said before, I respect the mayor but let me ask you citizens a question; Are Mayor Bowman’s “biggest challenges” your top three priorities?
Mayor Bowman’s Blog

July 13, 2012 at 12:25 am Leave a comment

My 12 X 16 Plan for Crystal

Unlike my opponents who offer nothing but bland statements about “making hard fiscal decisions” or  having “responsible and accountable government” I’m actually going to tell you in detail what I plan to do as your mayor. The following 12 items (in no particular order) are my top priorities for a four-year-term in office. Thus the name 12 X 16;

1) Work Sessions on TV and the Internet

We are going to create a city youtube channel where ALL city work sessions are going to be available to be downloaded. The public should be able to see the council debate these issues even if they can’t physically be at the work session. This is a great source of frustration for me since the council often reaches a “consensus” of what to do at a work session before ever listening to the public. This isn’t how you represent people.

2) Hennepin County Highway 81 Levy

When the levy on Highway 81 from Hennepin County expires in 2014 I will see to it that EVERY PENNY of the $534,565 gets returned to YOU the taxpayer. This levy was forced on us by the county to fix a county road to which the city readily agreed to pay. I will not support a “balanced approach” of spending part of this money nor will I throw it at existing city departments. It’s your money. This will be a nice $534,565 tax cut!

3) Re-stripe Our Roads Back!

I want to re-stripe our busiest roads from two lanes (or three) back to four over time. This was a horrible decision by this council and it shows their condescending arrogance. They met with the county, then agreed to re-stripe among themselves, met with only citizens who live on these roads, and never spoke ONCE to the public at large. As usual, your opinion wasn’t sought nor wanted. Nice representation! There’s no evidence those roads were unsafe and where’s that “study” the city was supposed to do on traffic flow?

4) Referendum on Spending and Major Special Assessments

According to our Comprehensive Annual Financial Report, our tax levy was $4,238,849 in 2001. In 2010 it was $8,849,440! That’s more than a 100% increase. People are getting hit with special assessments all over the place on top of the general levy. The latest was phase 12 which cost over $5,000,000! Residents have told me how concerned they are about the cost of these projects and I’ve told them their opinions don’t matter. This council doesn’t care. They’ve already made the decision to go forward on it.

I propose two solutions; I want the general levy subjected to a referendum. I will propose a six-year referendum on the 2014 ballot. This way YOU get to LIMIT city spending (more details to come). I will also push for major special assessments to be subjected to a referendum as well so YOU can decide if you want to pay for all this or not.

The bottom line is that citizens only have “so much” money they can give up. You should be able to say NO to something. The government works for you, not the other way around.

5) Better Use of our Facilities

One of the little known things in the budget is how much money we lose on our buildings and recreation. We operate the Crystal Community Center every year at a 71% loss. Our Recreation Department operates at a 69% loss. And the Crystal Pool operates at a 29% loss. We can’t even make money selling concessions! How is this acceptable? We need to take a long hard look at what we are offering and doing. I’m not saying we have to make a profit here, but we can’t go on indefinitely like this. I will be open to all suggestions.

6) Support West Metro Fire

I support shared services like West Metro Fire and I think that perhaps Park and Rec can be a shared service in the future. The cost of leaving this organization would be tremendous on our citizens and I don’t get why Crystal wants to do this. That said, I would make some changes. For example, I want every council member and city bureaucrat off the Fire Board. This Board should be about overseeing a fire department, not about political agendas. Second, I want these meeting on TV and the internet so citizens can see them!

7) Code Reform

There are way too many city codes! This is supposed to be a free country! We have personal liberty and economic freedom (or at least I read that somewhere). My goal is to go through this code and repeal outdated and unnecessary laws starting with the ban on overnight parking. Our police officers have better things to do at 3AM then hand out parking tickets. I also want to get rid of fees for remodeling your OWN HOUSE! I want to repeal at least one city code EVERY COUNCIL MEETING!

8) Charter Reform

Here is a statement from our charter;

“This charter is to be construed liberally in favor of the city, and the specific mention of particular powers in this charter is not to be construed as limiting in any way the generality of the powers conferred by this section.”

In other words, this charter is not seen as limiting government. That’s all you need to know about what this council thinks of your rights.

I also want to make it easier to do a petition and put in term limits for the council. You should live to serve, not serve to live.

9) EDA Reform

The city has no business in real estate. Limits need to be put on the city’s Economic Development Authority (actually there is no EDA since the EDA is the council). They shouldn’t be running around buying any property they want. I was at an EDA meeting in August 2010 where a council member joked that “As an EDA we can do whatever we want whenever we want to do it.” The council then burst out laughing. That’s what your council thinks of its authority. Like everything else in government, we need limits. Only in extreme cases like when a house is unsafe to live in should the city step in with a purchase. Otherwise it is a private transaction. Government did enough to screw up the housing market so let’s stop the madness.

10) General Government Changes

Our federal and state governments have checks and balances and separation of powers. We have none of this in our city government. The mayor acts basically as an at-large council person. The executive is a city manager who is unaccountable to the people. I propose the following;

*Eliminate the section 1 and Section 2 council positions and replacing it with one “at large” seat

*Make the mayor an executive, separate from the council. The mayor will have veto power.

*Three votes will be needed to pass the council and four to override a veto.

*This makes the mayor a full-time city employee. We can then remove an administrative position.

This gives our government the proper checks and balances we have at the state and federal level.

11) Budget Reform and Cutting Spending

Cutting spending is a must and it needs to happen at all levels. We are not getting smaller as a government, in fact, total assets the city owns has increased $27,000,000 since 2003. So I’m proposing to do the following;

*We need to switch to zero based budgeting. This is where every department starts every year at zero, not at what they got last year. We fill the NEEDS like police and fire first and go from there.

*We need to reduce the number of employees we have. In 2010 there were 84 FTE (full-time equivalents)  but in 2004 there were 79. Let’s walk that back to at least 79 or fewer by 2016. We can do that by attrition or reform.

*Sell off property and stay out of the real estate business!

*Remove the city from the Association of Metropolitan Municipalities. This will be an annual savings of $7,617

*Does the city really need to spend $13,000 handing out awards and $2,500 on an appreciation dinner? That should be at least cut in half if not more.

* I will not provide “seed money” to any business. That’s crony capitalism. I want to get government out of the way and let YOU decide winners and losers. I want less government in business and more business in government.

12) Changing How We are Represented

Unlike the current mayor and council, I will hold public hearings and listen to you, then talk about the issues at a work session that will be televised and on the internet, and then make decisions at the next meeting.

The current council meets at a work session, talks about an issue, comes to a consensus on what to do and how to vote, and then holds a public hearing. They know what they are going to do before we get to argue our case for or against! That is ridiculous. It makes people feel like they aren’t being represented and it has to change.

Folks, these goals are ambitious, but we have to aspire to do great things! I will pursue these ideas as your mayor. Even if I don’t get elected, I will still work for these changes. This election isn’t about me, it’s about the ideas we bring to the table. We may not all agree on everything and that’s OK, but rest assure, none of these things will happen unless I am elected.

I challenge my two opponents to come up with anything close to this!

July 7, 2012 at 12:31 pm Leave a comment

Sometimes Big Business is Hard to Defend

Let me begin here by saying that I am a devout capitalist. I believe in the American Dream and the free market. I don’t want government picking winners and losers or telling anyone how much money they can make. But what happened at Best Buy (my employer) today makes me cringe.

Brian Dunn, our ousted CEO, got a whopping $6.6 million severance and company founder Dick  Schulze is forced to resign as Chairman of the Board of Directors.

First, let say that I have great admiration for both men. Schulze built the company from the ground up and Dunn worked his way up from a TV salesman to a CEO. I will always respect that.

But, there’s an old saying that money changes everyone. Dunn became the CEO is June of 2009. Since then the company has floundered. I work there so trust me I know. Last month Dunn resigned after having an “inappropriate relationship” with a female employee. Dunn said the parting of ways was “mutual.” Here is a summary of the audit report from forbes about the relationships “closeness”;

How close is “extremely close”? The former CEO and the younger employee went to lunch and drinks on multiple occasions during both the work week and on weekends. Dunn gave the female employee tickets to at least seven concerts and sporting events. And employees often saw them alone in Dunn’s office or company conference rooms.

However, the audit committee concluded that Dunn did not use company resources or the corporate jet to pursue what both he and the female employee swear was a no-benefits friendship. Still, the behavior of Dunn and his younger female buddy were evidently disturbing and distracting to other Best Buy employees. And the CEO-subordinate duo seemed to be in touch an awful lot.

“During one four-day and one five-day trip abroad during 2011, the CEO contacted the female employee by cell phone at least 224 times, including 33 phone calls, 149 text messages, and 42 picture or video messages. In one instance, several photographs were discovered on the CEO’s personal cell phone that contained messages expressing affection, one of which included the female employee’s initials,” the report states.

The audit committee spoke with 34 employees and former employees, dug through e-mails, and reviewed ethic complaints as part of its probe. Turns out that this relationships was not too secret: the female employee spoke openly–and “frequently,” the report states–about her friendship with the CEO and the favors he lavished upon her. Her supervisor said this made the favored employee difficult to manage.

Dunn’s list of inappropriate behavior in relationship to this employee goes on and on. He solicited a vendor at a concert in Las Vegas for a complimentary ticket for the woman. He loaned the female employee $600 of his own money so that she could change her plane ticket from Las Vegas, and he allowed her to use an empty hotel room “not paid for by the Company or by her,” the report states.

Hard to believe Dunn didn’t know better. Best Buy wrote the book on political correctness and proper managing. So Dunn was deservedly ousted. But his compensation for leaving is going to cause hell within company.

Here’s what he gets after ending up in this big mess:

• Previously earned FY2012 bonus: $1,140,000
• Previously awarded and reported restricted stock grants of 131,876 shares, valued at close of business on Friday, May 11, 2012, ($19.28 per share), totaling $2,542,569
• Severance payment of $2,850,000
• Compensation for unused vacation: $106,742

Using the May 11, 2012, stock price for calculation, the estimated total value of the severance package is $6,639,311.

Now I have no problem with Dunn cashing out his unused vacation time. I’ll do the same when I leave the company. I have no problem with him cashing out his stock options. But I have two questions; If Best Buy “lost money” last year as they claim what did Dunn do to earn a $1,140,000 bonus? And how does a CEO earn $2,850,000 in severance pay when he did a lousy jab and wasn’t even CEO for three years? I can barely eek out an annual raise at this guy $6.6 million to go away?

This comes right after the announcement that Best Buy is closing 50 stores, laying off 400 corporate employees, and making countless other cuts. I’ve had vacation time cut, overtime cut, a 10% increase in health care costs while my plan covers 10% less, cuts to my employee discount, and little to know salary increases over the past few years. Yet somehow we have the money for this. Now, we have to pay Dunn, a committee to find a successor, and a new CEO.

Then, to top this off, it turns out Chairman of the Board Dick Schulze new about Dunn’s conduct and did nothing. From the Star Tribune;

Best Buy said Monday an investigation concluded that Dunn carried out a relationship with a female employee that violated company policy. Schulze confronted Dunn with allegations about the relationship in December, but did not disclose them to the board of directors, a breach of corporate governance, the company said.

“The chairman revealed to the CEO the identity of the female employee and the employee who authored the [complaint],” the company said in a statement. “This action exposed the employees to potential retaliation and exposed the company to potential liability for such retaliation.”

The board would not learn of the allegations about Dunn for another three months.

Schulze’s resignation was a stunning development, as the investigation seemingly focused on the accusations against Dunn, who resigned last month. Schulze will step down as chairman on June 21, then resign from the board a year later, which will officially end his tenure at the $50 billion consumer electronics giant he had built from scratch.

“Talk about a palace coup,” said Colin McGranahan, an analyst with Sanford Bernstein & Co.

Best Buy declined to make Schulze, company executives, or board members available for interviews. In a statement from the company, Schulze said he accepts the investigation’s findings regarding his handling of the Dunn accusations.

“In December, when the conduct of our then-CEO was brought to my attention, I confronted him with the allegations [which he denied], told him his conduct was totally unacceptable, and contrary to Best Buy’s policies and everything I and the company stand for,” Schulze said

Ah, the crime of the cover up. This is like a store manager knowing an employee is stealing or favoring someone and doing nothing about it. I doubt that would be tolerated.

Nice conduct guys…..what great examples you set! Big Business is hard to defend sometimes and quite hard to work for.

May 15, 2012 at 3:56 pm Leave a comment

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