Valley Water workers want leaders to resign over ex-CEO’s contract

Santa Clara Valley Water is boiling.

Dozens of water district employees showed up at Tuesday’s board of directors meeting to protest a separation agreement allowing former CEO Rick Callender to keep his $700,000 total pay and benefits, despite investigators finding he sexually harassed employees. Some workers demanded all directors who approved the agreement resign.

The emotional crowd overflowed from the meeting chambers into the lobby of Valley Water’s headquarters in South San Jose, where dozens of people watched the meeting on TV.

Speakers ripped Board Chair Tony Estremera and Directors Richard Santos, John Varela, Jim Beall, Nai Hsueh and Shiloh Ballard for approving Callender’s separation agreement. They accused the directors of recklessly compromising Valley Water’s integrity to keep Callender happy.

“You are showing that he is more important than the rest of us,” one employee, who did not state their name, said at the meeting.

The building roared with applause when Callender’s first accuser, employee Velia Mariscal, spoke during public comment. She filed her complaint in November 2024 and sat for multiple interviews with investigators, alleging Callender made inappropriate comments toward her and sent her inappropriate messages. The report sustained most of her allegations, and two other accusers came forward after her.

“I can’t help but wonder, if the second woman hadn’t come forward, whether (Callender) might still be here,” Mariscal said at the meeting. “I continue to experience retaliation and isolation after reporting misconduct. No woman or employee should have to choose between their livelihood and well-being. We come to work to do our jobs and support our families. I understand speaking here today may place a large target on my back, but continuing to remain silent is no longer an option.”

Callender resigned Feb. 20, days before investigators’ findings went public after more than a yearlong investigation. Under the agreement directors approved on the day he resigned, Callender will stick around as their special advisor for a year.

The ex-CEO continues to claim the investigation was slanted.

“The allegations are not true, and I think the evidence we provided in our letter demonstrates there’s clearly another side to this,” Callender told San José Spotlight.

In a March 8 letter filed by his attorney, Lori Costanzo, Callender argues investigators misrepresented his messages with employees and shared his own screenshots, claiming they negate any sexualized intent.

Callender maintains the investigation was a conspiracy between Director Rebecca Eisenberg — the only director to vote against his separation agreement — and the employee unions. He has not provided evidence that Eisenberg directly influenced the investigation or union leaders. His letter requested the agency preserve district communications in hopes of finding evidence of coordination.

Employees and union leaders told San José Spotlight the conspiracy claim doesn’t make sense. Eisenberg has long been Callender’s lone critic on the board with virtually no power. Estremera and the other five directors have often sided with Callender over her during public clashes over district spending and workplace investigations, leading to a March 2024 vote to censure Eisenberg.

“(My colleagues) have made it clear that they believe that their loyalties lie with the officers of the district rather than with the public and staff who continue to be harmed by the actions of these appointed public officials,” Eisenberg told San José Spotlight.

Hostile work environment

Employee outrage extended beyond Callender to senior Valley Water staff for allegedly protecting and even enabling the ex-CEO’s behavior. In the report, Callender is alleged to have coordinated with another unnamed district employee to create a hostile working environment for his accusers. A spokesperson for Valley Water said the agency is looking to change.

“Valley Water is encouraging our employees to provide feedback through several opportunities … leadership is also working with employees and our board to review our culture and policies and start making changes where necessary,” spokesperson Matt Keller told San José Spotlight.

Estremera, the board chair, looked visibly uncomfortable during the meeting while employees chastised him and the other board members, putting his face in his hands — and on one occasion talking back to a speaker.

“I ask you all to give us some time to move forward and also please participate going forward in the search for the new CEO,” he said during the meeting. “At the next board meeting we will discuss what the process will be like.”

Estremera did not respond to requests for comment.

“While we have not put out a poll for calls for the resignation of board members, the members’ individual comments today were powerful and resonate with the union,” Salam Baqleh, a spokesperson for the union representing many of the agency’s 800-plus employees, told San José Spotlight.

One day after Callender’s attorney sent the letter criticizing the investigation, an email purporting to be a group of anonymous employees — calling themselves “Friends of Rick Callender” — urged colleagues not to believe the report.

“He may not be perfect, and he may have been too casual with employees, but he is definitely not the person the report describes,” the email reads.

Callender became the first Black man to lead Valley Water in May 2020. He is also president of the NAACP California/Hawaii State Conference, where colleagues under him have also accused him of impropriety. While the head of the NAACP San Jose/Silicon Valley has defended Callender, one former NAACP leader publicly denounced Rick’s separation agreement and expressed support for the employees at the meeting.

“Your decision has made national headlines,” former Sacramento NAACP Chapter President Betty Williams said to board directors.

Three women board directors voted against Callender’s appointment as CEO in 2020, citing similar allegations of sexual harassment he faced at Valley Water in 2008.

Debra Dake was a program manager of the office charged with investigating those allegations in 2007. She showed up to speak at the meeting and indicated her investigation faced undue resistance from Valley Water leadership at the time.

“My office sustained those allegations and we recommended termination (of Callender) because it was the right thing to do,” Dake said. “The behavior from that point forward rests with (the board directors). And it is beyond blame — it is nothing short of shameful.”

Contact Brandon Pho at [email protected] or @brandonphooo on X.