Incoming Silicon Valley water district CEO donates to board candidates

Multiple candidates are vying to be on the board of directors for Santa Clara County’s largest water supplier. The outcome could chart a new course for the water district’s future.

With three competitive seats up for grabs in Valley Water Districts 1, 6 and 7, patrons have poured money into preferred candidates in recent months leading up to the Nov. 3 election. Some of those donations have come directly from the district’s management team, including its incoming CEO and current chief of external affairs.

Aaron Baker, Valley Water’s chief operating officer who will take the helm as CEO in January, has donated $499 to incumbent John Varela in District 1, according to Oct. 22 campaign filings. He also donated $499 to Milan Balinton, executive director of the San Jose African American Community Service Agency, who is running to fill the open District 6 seat. Campaign filings show Balinton has also received nearly $770 from Valley Water Chief of External Affairs Rachael Gibson.

Sean McMorris, transparency, ethics and accountability program manager at nonprofit Common Cause, said while it doesn’t appear to be illegal for top Valley Water staff to contribute to campaigns, it’s not best practice and raises conflict of interest concerns.

“The public may perceive this as purchasing some goodwill,” McMorris told San José Spotlight. “In some regard, it could be viewed as pay-to-play. (For) an executive or staff, their boss is their elected officials, but ultimately they also work for the residents.”

Baker, who has worked at Valley Water for 25 years, said he did not make contributions to garner special treatment or favors.

“I made these contributions in my personal capacity, on my own time,” Baker told San José Spotlight. “Based on what I know of John and Milan, I believe they can help Valley Water meet the challenges ahead and build a strong future for the community we serve. That was my sole intention. I neither sought nor expected any personal gain, special treatment or favor in return.”

Four of the seven seats on the Valley Water board are in play on Nov. 3. In District 1, Varela is up against Jimmy Forbis, former Gilroy city manager. Battling against Balinton for the District 6 seat is Phuong Nguyen, with Board Chair Tony Estremera terming out. Incumbent Rebecca Eisenberg is running against Los Altos Councilmember Pete Dailey in District 7, and in District 4 incumbent Jim Beall is running unopposed.

Varela did not respond to questions about receiving a $500 contribution from Baker.

Balinton said he was not aware of Baker’s or Gibson’s donations.

“I am committed to separating the difference between a contribution to my campaign and a decision that will be made by me as a director,” Balinton told San José Spotlight. “(That includes) holding (Baker) accountable, collaborating with him, learning (from) his over 25 years of knowledge to navigate the organization, as it has been in the public eye many times.”

The $1.2 billion water agency with nearly 900 employees has been mired in controversy over the last few years.

Former CEO Rick Callender resigned earlier this year, days before a report was released detailing how the former head sexually harassed subordinate employees, conducted by independent investigators looking into allegations of misconduct. The board gave him a sweetheart separation agreement to walk away with pay and benefits that total $716,000 amid employee outrage.

Other contentious board behavior includes the district suing one of its directors, Eisenberg, in April 2024 for removing a confidential report out of its offices. And in 2022, then-Director Gary Kremen quit his run for reelection after an investigation found he violated district policies when he bullied, verbally assaulted and threatened district workers.

Balinton has received a total of $34,655 in donations and a $100 personal loan. Other donors to his campaign are mostly individuals contributing $500 or less. One political action committee — American Federation of State County Municipal Employees Local 101 — contributed $5,900, the state limit, according to campaign filings as of Oct. 22.

Balinton has served as executive director of the African American Community Services Agency for more than 15 years. If elected to District 6 — which encompasses East and South San Jose — Balinton said his priority would be to lower water bills.

“I will be a fresh face, but I’m also a fresh mindset, and being able to speak to … the needs of the people we’re serving,” he said.

Nguyen, a field officer for state Sen. Dave Cortese, said he’s not bothered by Baker’s donation to Balinton because he has a right to donate. If Nguyen wins, he said he hopes to have a good relationship with Baker.

Nguyen has raked in nearly $36,300 in donations — the highest amount of any Valley Water candidate this election cycle. He has received multiple donations topping $5,000, including from a director at Google, Willco Property Management, Speed Construction and Development Inc. and AlphaX RE Capital Inc., a real estate investment company.

In response to his donations, Nguyen said his run for office and potential seat is not for sale.

“I represent the public,” Nguyen told San José Spotlight. “I respect everyone and receive everything, because I work for everyone.”

Nguyen said he’s the first Vietnamese American to run for a Valley Water seat, and wants to implement programs to save low-income families money on their water bills if elected.

Incumbent Eisenberg, who has been on the board since 2022, is running in a hotly contested race against Dailey for District 7, which covers West Valley to Palo Alto. The former attorney has received about $2,660 in donations, and took out $38,000 in personal loans. Eisenberg received $1,000 from a political action committee, Plumbers Local 393 Political Action Fund Small Contributor Committee.

Dailey, a former Los Altos mayor and chair of the Santa Clara Valley Water Commission, has received $13,600 in donations and took out $80,000 in personal loans. He received a total of $3,750 in donations from the American Federation of State County Municipal Employees Local 101 and American Federation of State, County & Municipal Employees-Council 57.

For the District 1 seat, which encompasses South County, Forbis has received nearly $3,200 in donations and took out $3,050 in personal loans. Varela has received about $2,050 in donations and has been serving as District 1 director since 2015.

Contact Joyce Chu at [email protected] or @joyce_speaks on X.