A Silicon Valley water agency will soon be paying three chief executives at the same time, including a former CEO who left after investigators found he sexually harassed employees.
The Santa Clara Valley Water District, known locally as Valley Water, will have incoming CEO Aaron Baker, 57, interim CEO Melanie Richardson, and former CEO Rick Callender all drawing paychecks simultaneously for nearly two months in early 2027. Their combined salaries for the overlapping period will total approximately $840,000 before benefits, according to district records.
Baker, a district employee since 1999, starts January 1 with an annual salary of nearly $507,000 after winning appointment on a 5-2 board vote. Richardson will stay on through June 2027 as “transition chief executive” at almost $512,000 annually. Callender remains a paid special adviser through February 2027.
Callender, 59, resigned effective March 1 after an outside investigation concluded he sexually harassed two female employees over multiple years. The probe found he made lewd comments about romantic activities and sent inappropriate photos to staff. One of the women has since sued him. Callender has disputed the findings, calling the investigation biased and saying communications were taken out of context.
The district board voted 6-1 to keep Callender for another year at his existing salary and benefits after his resignation. Board Director Dick Santos acknowledged the arrangement would raise eyebrows.
“If I was a taxpayer, I would say this isn’t right,” Santos said. “Things happen and you make the best decisions to prevent future lawsuits.”
Santos noted that Callender’s ongoing wages were part of a separation agreement. Board Chair Tony Estremera reportedly said keeping Richardson will provide stability as Baker’s promotion triggers staffing changes. Callender’s assignments also come from Estremera, though the former CEO will need prior approval to contact staff or enter district facilities.
Gary Kremen, a former water district board member, found grim humor in the three-CEO arrangement.
“It does remind me of the show ‘Parks and Recreation’ — sometimes funny things happen in government,” Kremen said.
The “Golden Spigot” nickname for the agency predates this executive shuffle. Former Mercury News columnist Scott Herhold coined it long before the latest turmoil, and concerning CEO activities stretch back more than a decade. San Jose Inside reported in 2015 that Richardson had approved more than $10.6 million in contracts with RMC Water and Environment, a company co-owned by her husband, before the district established rules intended to keep her out of such dealings.
That same year, the district cut part of a recorded interview with then-CEO Beau Goldie after he was asked about employees sharing nude photos and racist jokes through work email. Goldie resigned months later.
Beyond personnel issues, Valley Water’s construction projects have ballooned in cost while missing deadlines. The Anderson Dam retrofit, initially estimated at $193 million with completion in 2020, now carries a $2.8 billion estimate for the dam alone, with work projected to finish in 2033. Related work brings the total to roughly $3.2 billion. The agency also spent about $100 million on its Pacheco Reservoir expansion before suspending the project without any construction beginning.
Valley Water officials did not respond to requests for comment on the three-CEO arrangement.
Baker’s first day as chief executive is January 1.