Valley Water CEO Resigns After Misconduct Probe Findings

Longtime CEO Rick Callender received a $500K exit package despite allegations of sexual harassment and ethics violations.

Published on Feb. 27, 2026

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The board of supervisors for Valley Water, Santa Clara County's primary water agency, approved a six-figure exit package for CEO Rick Callender before the findings of a misconduct investigation were released. The investigation corroborated multiple allegations that Callender violated the district's workplace and ethics policies, including those involving sexual harassment of subordinates.

Why it matters

The case highlights concerns about how public agencies handle misconduct allegations against top executives, especially when large severance packages are approved before investigations are complete. It also raises questions about the agency's workplace culture and whether it adequately protects employees who report harassment.

The details

The investigation found that Callender, who joined the agency in 1995 and became its first African American CEO in 2020, sent inappropriate late-night texts to subordinates, made comments on their appearances and personal lives, and helped spread rumors about an alleged affair. Investigators concluded that Callender engaged in "severe or pervasive conduct" that violated the district's "prohibition on sexual harassment" and created a hostile work environment.

  • In late 2024, three district employees filed complaints against Callender.
  • On February 20, 2026, the board announced Callender's resignation, framed as a retirement.
  • On February 25, 2026, Valley Water released the investigative reports detailing the misconduct findings.

The players

Rick Callender

The former CEO of Valley Water, who resigned with a $500,000 exit package despite an investigation finding he violated the district's workplace and ethics policies.

Tony Estremera

The chair of the Valley Water board, who praised Callender's "integrity, transparency, and mission-driven leadership" in the announcement of his resignation.

Rebecca Eisenberg

A Valley Water board member who was the lone dissenting vote on Callender's exit package, arguing it violated the district's employment contract provisions.

Salam Baqleh

A union representative at Valley Water who described the agency's workplace culture under Callender as "a culture of fear and intimidation."

Valley Water

The primary water agency serving Santa Clara County, California, which manages an integrated water system for about 2 million residents.

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What they’re saying

“They agreed they would not say anything that would cast him in a negative light. I will not give up my integrity.”

— Rebecca Eisenberg, Valley Water board member (SFGATE)

“I would describe it as a culture of fear and intimidation.”

— Salam Baqleh, Union representative at Valley Water (SFGATE)

“Tell us what zero tolerance for harassment actually means. Because to us right now, it means you get an extended contract at $500,000 or $600,000.”

— Salam Baqleh, Union representative at Valley Water (SFGATE)

What’s next

Employees are calling on the Valley Water board to reconsider Callender's advisory agreement and bar him from returning to district properties, citing concerns about intimidating victims whose allegations were found to be true.

The takeaway

This case highlights the challenges public agencies face in addressing misconduct allegations against top executives, especially when large severance packages are approved before investigations are complete. It raises questions about workplace culture, the adequacy of harassment policies, and whether public entities are truly committed to holding leaders accountable.