CEO Departure and Allegations of Misconduct at California Water Company

Rick Callender, the CEO of a prominent California water utility, is set to receive $512,886 as he transitions to a special advisor role. This decision by the board came just days before the public learned about a sexual harassment lawsuit against him.

Callender announced his resignation, which is effective March 1, 2026. This timing raised some eyebrows, especially given the circumstances surrounding his payout.

District 7 Commissioner Rebecca Eisenberg was the only board member to oppose the move. She pointed out that hiring him went against the district’s own employment agreement, which states termination is permissible for immoral or unethical conduct. Eisenberg characterized the situation as indeed extreme.

An investigation released on February 20 revealed that Callender violated anti-discrimination, harassment, and retaliation policies. The inquiry included text messages and diary entries from three employees dating back to 2024. They accused Callender of sending inappropriate communications and making unwelcome comments about colleagues’ appearances.

One notable incident included Callender allegedly texting a female employee after an office party, asking if she had showered yet, while another instance involved him commenting on a colleague’s dress. He reportedly asked if she had “ever been with” an African-American man and sent an inappropriate photo focusing on a clothed knee.

Moreover, the findings suggested that Callender directed staff to use work hours for non-work related activities, claiming that a significant portion of their time was spent on NAACP-related work rather than district responsibilities.

Additionally, Callender is involved in two separate lawsuits linked to his past with a civil rights group, where he faced accusations of fostering a hostile work environment and engaging in discriminatory behavior against Black women in leadership roles.

Callender joined Valley Water in 1995 and made history as the agency’s first African-American CEO in 2020. This promotion came via a narrow board vote. His attorney, Lori Costanzo, has refuted the recent allegations, asserting that they lack factual basis and suggest that the investigation mischaracterizes Callender’s professional conduct.

Interestingly, Callender faced similar allegations back in 2008 when he was sued for sexual harassment by a former employee, illustrating a contentious history that now resurfaces amid current claims.