Full Breakdown
CEO of Valley Water Resigns Amid Sexual Harassment Findings
3/2/2026, 6:26:17 AM
Overview of the Situation
Rick Callender, the CEO of Valley Water, the primary water agency serving Santa Clara County, California, resigned effective March 1, 2026, following the release of an investigation that found he violated the agency's Anti-Discrimination, Harassment and Retaliation Policy. The investigation, conducted by the law firm Atkinson Andelson Loya Ruud & Romo, revealed multiple allegations of inappropriate conduct, including sending suggestive text messages and making inappropriate comments to employees.
Findings of the Investigation
The investigation's findings included evidence from three district employees who reported that Callender engaged in inappropriate behavior, such as sending a text message that read, “Showered yet? Just playing,” and commenting on a colleague's appearance. Additionally, he allegedly directed staff to use district time for non-district-related tasks, including planning events for the NAACP, which one employee claimed occupied 30% to 40% of their work hours.
Financial Settlement and Controversy
In a controversial move, the Valley Water board approved a $512,886 payout for Callender as he transitions to a special advisor role for one year. This decision was met with dissent from Director Rebecca Eisenberg, who argued that retaining Callender violated the agency's employment contract provisions, particularly given the findings of immoral or unethical conduct. Eisenberg stated, “For cause is only in extreme situations. This is an extreme situation.”
Background on Rick Callender
Callender has been with Valley Water since 1995 and became the agency's first African-American CEO in 2020. His appointment was decided by a narrow 4-3 vote, with all male board members supporting him while female members opposed. Callender's tenure has not been without controversy; he faced similar allegations in 2008 when a female employee sued him and the agency for sexual harassment.
Official Statements & Responses
Lori Costanzo, Callender's attorney, defended him against the allegations, asserting that they lack factual or legal merit and are based on opinions rather than evidence. She claimed that the investigation mischaracterized Callender's work and integrity, suggesting that the findings were intended to damage his reputation and undermine public confidence in Valley Water's leadership.
Criticism & Opposition
The decision to retain Callender and the financial settlement have drawn criticism from various stakeholders, particularly from Eisenberg, who emphasized the need for accountability in light of the investigation's findings. Critics argue that the board's actions undermine the agency's commitment to a safe and respectful workplace.
Conflicting Reports & Gaps
While the investigation concluded that Callender violated the agency's policies, his attorney maintains that the allegations are unfounded. This discrepancy highlights a significant gap in the narrative, as the perspectives on Callender's conduct and the board's decision diverge sharply.
What's Next
The fallout from Callender's resignation and the investigation may prompt further scrutiny of Valley Water's governance and policies regarding workplace conduct. Stakeholders are likely to call for reforms to ensure accountability and prevent similar situations in the future.
