The Santa Clara Valley Water District, often referred to as "the Golden Spigot," is preparing to pay three chief executive officers concurrently, including a former head who received a $500,000 settlement after an investigation found he sexually harassed employees. The agency's executive compensation practices have drawn scrutiny amid past controversies and significant cost overruns on infrastructure projects.
Starting in January, the district's incoming CEO, Aaron Baker, will begin with an annual salary of nearly $507,000. Concurrently, interim CEO Melanie Richardson will continue with the agency as a "transition chief executive" until June 2027, earning an annual rate of almost $512,000. Adding to the overlapping executive pay, former CEO Rick Callender is slated to remain as a paid special adviser through February of next year.
Callender resigned effective March 1, following an outside investigation that substantiated claims of sexual harassment against two female employees. The report detailed allegations of lewd comments and the inappropriate sharing of photos. Callender has denied wrongdoing and called the investigation biased, with communications taken out of context.
His continued employment and pay were approved by a 6-1 vote of the district's board. Dick Santos, a board director, acknowledged that while taxpayers might object, the decision was made to mitigate the risk of future lawsuits.
This arrangement means that for nearly two months in early 2027, the district will be paying substantial salaries to three top executives. Their combined compensation for the overlapping period is expected to approach $840,000, not including benefits.
The water district has faced criticism for its handling of taxpayer money for over a decade. In 2015, Melanie Richardson, then in a different role, approved more than $10.6 million in contracts with a company co-owned by her husband, prior to the establishment of conflict-of-interest rules. In the same year, then-CEO Beau Goldie's interview was partially redacted when he was questioned about employees sharing inappropriate content via work email. Goldie resigned months later.
Beyond personnel issues, the agency has also experienced significant budget and timeline challenges with its infrastructure projects. The Anderson Dam retrofit, initially projected to cost $193 million and conclude in 2020, now faces an estimated $2.8 billion cost for the dam alone, with completion expected in 2033. Related work pushes the total project cost to approximately $3.2 billion. The district also spent about $100 million on the Pacheco Reservoir expansion before halting the project without commencing construction.
Valley Water officials have not responded to requests for comment regarding the current executive pay situation. Baker, who has been with the district since 1999, was appointed CEO by a 5-2 board vote. Board Chair Tony Estremera reportedly stated that retaining Richardson would provide stability during the transition. Estremera is also reportedly behind Callender's advisory role, though Callender's contact with staff and access to district facilities will require prior approval.