A water agency in Silicon Valley known as the “Golden Spigot” for its tendency to waste taxpayer funds is set to have three CEOs on the payroll at the same time, starting in January.
The Santa Clara Valley Water District will employ both current and former chief executives simultaneously. This list includes a former CEO who received a hefty $500,000 “golden handshake” after being found to have sexually harassed employees in an investigation.
The incoming CEO, Aaron Baker, will begin his role with an annual salary nearing $507,000. On the other hand, interim CEO Melanie Richardson will continue as “transition chief executive” until June 2027, earning almost $512,000 per year.
Meanwhile, former CEO Rick Callender will remain on the payroll as a special adviser until February next year, even after resigning in March following harassment findings.
The investigation revealed that Callender had sexually harassed several female staff members over the years, making inappropriate comments and sharing lewd photos. He has since been sued by one of the employees but continues to deny any wrongdoing.
For nearly two months, the three executives will receive overlapping salaries, totaling approximately $840,000 when accounting for the 2027 portion of their pay, plus benefits.
Gary Kremen, a former member of the water district’s board, commented that the situation is reminiscent of something from the show “Parks and Recreation,” highlighting the often absurd occurrences in governmental entities.
The decision to keep Callender on gave rise to disputes, with one board member, Dick Santos, reflecting that as a taxpayer, he finds the situation troubling. He mentioned attempts are usually made to avoid lawsuits.
Valley Water officials did not respond to requests for comment.
Scott Herhold, a former columnist, dubbed the agency the “Golden Spigot” long before this recent executive shift, and controversial actions related to its CEOs date back for years.
Past reports indicate that Richardson had approved contracts with RMC Water and Environment, which is partially owned by her husband, prior to the establishment of policies that would prevent such conflicts. There was also an incident in 2015 involving then-CEO Beau Goldie related to inappropriate conduct among employees, leading to his resignation months later.
The agency’s construction projects have faced delays and cost overruns as well. For example, the renovation of the Anderson Dam ballooned in cost from an initial estimate of $193 million to a staggering $2.8 billion, with completion projected for 2033.
Baker, who has been with the district since 1999, was appointed with a board vote of 5-2. The board chair, Tony Estremera, indicated that retaining Richardson is meant to provide continuity during Baker’s transition.
While Callender will continue with his advisory role, he must first obtain approval to communicate with district staff or enter the premises.
