In a turn of events that has left Silicon Valley buzzing, Rick Callender, the head honcho of Valley Water, managed to secure a hefty $512,886 payout. This golden handshake came just days before a damning report surfaced, detailing allegations of sexual harassment against him. The timing of this financial package – which allows Callender to serve as a special advisor for a year following his resignation – has raised more than a few eyebrows in the Santa Clara Valley.
Despite the serious allegations, the board's decision to retain Callender was almost unanimous, save for District 7 Director Rebecca Eisenberg. She stood firm in her opposition, citing a breach of the district’s employment contract provisions. "His contract clearly states that if he is found to have engaged in immoral or unethical conduct, he can be terminated for cause," Eisenberg shared with SFGate. "For cause is only in extreme situations. This is an extreme situation."
The revelations were the result of an investigation by the law firm Atkinson Andelson Loya Ruud & Romo, which was released on February 20. The findings pointed to violations of the agency’s Anti-Discrimination, Harassment and Retaliation Policy, supported by text messages, photos, and journal entries from three district employees dating back to 2024. Among the allegations were claims that Callender sent inappropriate texts, made comments on coworkers' appearances, and discussed his own intimate details.
“Showered yet? Just playing,” Callender allegedly texted one complainant after an office gathering, according to the investigation.
Other reports included Callender asking a colleague if they had ever "been with" an African-American man and sharing a questionable photo of his clothed lap. The report also outlined how Callender misused district resources for non-district events, with claims suggesting that up to 40% of one employee’s time was spent on unrelated tasks.
Rick Callender's tenure as the CEO of Valley Water – which serves nearly 2 million residents in Santa Clara County – is now under intense scrutiny. Having joined the organization in 1995 and becoming its first African-American CEO in 2020, Callender has been a prominent figure in the community. However, his leadership has also faced criticism, with past allegations of fostering a "hostile work environment" when he was involved with the NAACP.
Callender’s attorney, Lori Costanzo, has fervently denied the recent allegations, arguing that they lack "factual or legal merit" and accusing investigators of basing their conclusions on opinion rather than fact. "They mischaracterize his work, impugn his integrity without basis, and appear calculated to damage his reputation and undermine public confidence in Valley Water’s leadership," Costanzo stated.
As the story unfolds, the Valley Water community and beyond are left questioning the leadership and ethical conduct of one of its key figures, underscoring the ongoing challenges of addressing misconduct in positions of power.