Valley Water CEO Rick Callender is receiving a $512,886 payout after the board approved a one-year role for him as a “special advisor”—just days before an internal investigation into sexual harassment allegations was released.
Mr. Callender announced his resignation, effective March 1, 2026. The agreement was approved shortly before that announcement.
The investigation, conducted by the law firm Atkinson Andelson Loya Ruud & Romo and released on February 20, concluded that Mr. Callender violated the agency’s policies regarding anti-discrimination, harassment, and retaliation.
The report cites text messages, photos, and notes from 2024 involving three employees, alleging he sent inappropriate messages, commented on colleagues’ appearances, and discussed his personal romantic life. One quoted message said: “Showered yet? Just playing.” The report also mentioned the sending of personal photos and statements deemed inappropriate for the workplace.
Investigative documents also mentioned directing staff to use working hours for activities unrelated to agency duties, including work tied to the civil rights organization NAACP.
District 7 Director Rebecca Eisenberg was the only member to vote against the agreement. She argued that the employment contract allowed for termination for cause if unethical behavior occurred, and that this case met those conditions.
Rick Callender joined Valley Water in 1995 and became CEO in 2020. He is the first African American CEO of the water agency, which serves about 2 million residents in Santa Clara County.
A lawyer representing Mr. Callender denied all allegations, stating the conclusions were based on subjective assessments and harmed his client’s reputation.
Previously, in 2008, he faced a similar harassment lawsuit from a female employee, according to local sources.
