Silicon Valley water agency to pay 3 CEOs at once — including ex-chief acused of sexually harassing staff

A powerful Silicon Valley water agency earned the nickname “the Golden Spigot” for frequently flushing taxpayer money down the drain — and now it’s preparing to keep three generations of CEOs on the payroll at once.

The Santa Clara Valley Water District plans to pay three current and former chief executives simultaneously starting in January, including a former CEO who received a $500,000 “golden handshake” after outside investigators found he sexually harassed employees.

Valley Water’s incoming CEO, Aaron Baker, will start in January with an annual salary of nearly $507,000. Meanwhile, interim CEO Melanie Richardson will remain with the agency through June 2027 as “transition chief executive,” at an annual pay rate of almost $512,000.

All of this will occur while former CEO Rick Callender remains a paid special adviser through February of next year. Callender resigned effective March 1 after an outside investigation found he sexually harassed employees.

The investigation found that Callender sexually harassed two female employees over a period of years, including lewd comments about romantic activities and sending inappropriate photos. Callender, who has since been sued by one of the women, denied any wrongdoing.

The three execs will collect overlapping paychecks for nearly two months. Their combined salaries for the portions of 2027 covered by those arrangements will total approximately $840,000 — before benefits.

“It does remind me of the show ‘Parks and Recreation’ — sometimes funny things happen in government,” said Gary Kremen, a former water district board member.

The district board voted 6-1 to keep Callender for another year at his existing salary and benefits. Callender has disputed the findings, calling the investigation biased and saying communications were taken out of context.

Dick Santos, a board director, noted that Callender’s ongoing wages were part of a separation agreement.

“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.”

Valley Water officials did not respond to The Post’s request for comment.

Former Mercury News columnist Scott Herhold gave the agency its “Golden Spigot” nickname long before the latest executive shuffle, and concerning activities involving its CEOs dates 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. These contracts were signed before the district established rules intended to keep her out of its business 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 ended up resigning months later.

Beyond the consistent HR turmoil, Valley Water’s construction bills have routinely climbed while missing key deadlines.

The Anderson Dam retrofit — initially estimated at $193 million with construction ending in 2020 — now carries a $2.8 billion estimate for the dam alone, with completion projected for 2033. Related work brings the total to roughly $3.2 billion.

Valley Water also spent about $100 million on its Pacheco Reservoir expansion before suspending the project without construction.

Baker, a district employee since 1999, won appointment on a 5-2 board vote. Board Chair Tony Estremera reportedly said keeping Richardson will provide stability as Baker’s promotion triggers staffing changes. 

Callender’s assignments come from Estremera, too, according to San Jose Spotlight — although the former CEO will need prior approval to contact staff or enter district facilities.

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