San Jose Mercury News
Lisa M. Krieger
December 28, 2009

Questions raised over Tech Museum job of president's wife

Shortly after arriving in San Jose from Germany to take over the then-struggling Tech Museum of Innovation, Peter Friess decided the city-subsidized showpiece needed to hire somebody to spruce up its image.

The job came with a two-year, $400,000 contract and free office space. So, who'd The Tech hire?

German graphic designer Birgit Binner - Friess' wife.

Now, some museum employees are growing quietly concerned about the cozy relationship. Some are alarmed that Binner's contract could be renewed in March and question whether it's right for a museum president's spouse to land such a job at a nonprofit that San Jose taxpayers fuel with $1.3 million a year and virtually free rent.

"It's not illegal, but it best be well-justified," said Patricia Lewis of the Lodestar Center For Philanthropy & Nonprofit Innovation at Arizona State University. Hiring relatives "is usually not something most nonprofits engage in because they are held to such a high standard of public trust."

Museum board members defend the contract and say Friess was not in the room when the board chose Binner, who offered the lowest bid. Friess also does not directly supervise his wife.

Binner did not return phone calls over three weeks, and Friess was unavailable for comment due to "business travel," according to The Tech spokesman Roqua Montez.

To be sure, The Tech has seen a resurgence under Friess' leadership, rebounding after years of decline and attracting wildly popular traveling exhibits like the 2007 "Body Worlds 2" and the 2008 "Leonardo: 500 Years into the Future."

But critics question hiring Binner at her high contract while the museum is cutting back and eliminating staff; the museum has cut its staff in half during the past decade.

For instance, they point to the display boxes Binner designed for The Tech. She charged the museum $135,550 for the design of the boxes, which hold educational material about the museum's exhibits. Museum officials said it was part of her $400,000 contract.

Binner's business, called TG2B, is not charged rent for its 1,200-square-foot office at The Tech's business offices at 145 West San Carlos Street. Another group, the San Jose Jazz Society, also gets free rent but unlike TG2B is a nonprofit business.

Binner landed the job in 2008 after her husband decided that the museum needed a consultant to upgrade The Tech's image.

Eight candidates competed for the contract and Binner was the best, according to board member Jami Dover Nachtsheim, who was a member of the small group that narrowed the list to three finalists. Nachtsheim says Binner had the most museum experience and submitted the lowest bid. When the board voted on Binner's contract, Friess stepped out of the room, Nachtsheim said.

"It is difficult in the Bay Area to find people with museum experience in corporate branding," said Nachtsheim.

But Tech staffers, who did not want to be quoted by name due to fear of reprisal, said Binner did not submit a formal portfolio when seeking the contract, unlike other bidders. The Tech did not make her portfolio or the application requirements available.

"Peter and Nachtsheim went out of their way to ensure that the criteria used for final agency selection made Birgit the only choice," such as wanting an on-site presence-a preference only Binner met, said one employee.

San Jose taxpayers have a direct interest in the financial dealings of The Tech, a charitable organization that receives millions of dollars in grants and contributions each year. The city put up $49 million in redevelopment funds- nearly half the $113 million construction cost- and leases out the facility for only $1 a year to The Tech. The city also provides $1.3 million a year of the museum's budget, which this year is $14 million.

Because they're not government employees, Friess and Binner aren't subject to state laws regulating hiring of family members, said city attorney Rick Doyle.

"There appears to be a conflict of interest- the appearance that she got the contract because she is married to the CEO. That is the challenge for the board to address and respond to," said Susan Meier of the Washington, D.C.-based Board Source, a national nonprofit organization that educates boards about management.

"Appearances can be as damaging as an actual conflict," said Meier.

Binner and Friess collaborations

The couple has a history of working together on other museum projects. Before arriving in San Jose in 2006, Binner and Friess collaborated on several endeavors in Germany, Switzerland and for the Smithsonian Institution in Washington, D.C., including:

• Co-creators of The Tech's 2008 "Nobel Voices: Celebrating 100 Years of the Nobel Prize"
  
• "Luceum," a September 2006 Geneva-based exhibit at a clock museum; Binner did the display design; Friess, a watchmaker, wrote the exhibit text and catalog
  
• "Deutsches Museum Bonn," where Friess was project manager and Binner did design in Bonn, Germany, 2000-02

Friess has a reputation for making museums the center of his life

"His personal and professional lives are really merged," colleague and friend Art Molella, director of the Smithsonian's Center for the Study of Invention and Innovation told the Silicon Valley/San Jose Business Journal in 2006.
Source: Mercury News reporting

The contract
The purpose of Binner's two-year contract, launched in the spring of 2008, "is meant to establish The Tech Museum as an immediately recognizable brand that reflects every aspect of what we do, from the first point of contact with the visitor to how employees feel about the organization," according to Tech spokesman Roqua Montez. It will "ensure clarity and consistency throughout the organization."

Contact reporter Lisa M. Krieger at 408-920-5565 or lkrieger@mercurynews.com.