Water District Refuses to Release ‘Smoking Gun’ Email, So Here It Is

The Santa Clara Valley Water District plays by its own rules, which is especially easy when its rules were made to be broken. Last month, CEO Beau Goldie ignored his own staff’s allegations regarding improper billings by consultant RMC Water and Environment. He boldly announced that the $2.3 million paid to RMC for its Lower Silver Creek work followed all district policies. But a review of documents found that senior counsel Leslie Orta alerted top-level staff as far back as September 2014 that Goldie ran afoul of rules by repeatedly increasing RMC contracts without board approval. A district employee tells Fly the emails are a “smoking gun,” and Goldie’s minions have been searching fruitlessly for a way to explain it away. Since then, the district has refused to comment on or release the emails, dubiously invoking attorney-client privilege. That aligns with a previous decision to shield a “firewall” agreement with Melanie Richardson, a senior district staffer who coincidentally happens to be married to one of RMC’s owners. Goldie and others maintain that Richardson steered clear of RMC business, even though she supervised the work of district staffers who did. Richardson admitted in an interview that she doesn’t have to leave the room when RMC business is discussed, which should help her this week as she lobbies for federal dollars in Washington D.C. Joining board members Gary Kremen, Barbara Keegan and other district staff, Richardson will be asking for money for recycled water and supply projects; the same projects RMC is expected to bid on in the future. As if the district didn’t already miss the point, though, tipsters say labor relations officer Michael Baratz, communications director Teresa Alvarado and CEO Goldie have formed a conspiracy of dunces to do “deep research” into Kremen, Keegan and even San Jose Inside staff. Adding to the paranoia, Goldie sent out a memo last week suggesting the district had been targeted by a “spoofing” attack to release confidential documents. Hard to say what the point of that would be when the district leaks those docs it on its own.

Below is a full copy of one of Leslie Orta’s emails, which the district refuses to release. The email shows district staff was aware CEO Beau Goldie broke district of rules and lied to the Board of Directors about processes being followed regarding RMC contracts. 


Send a tip to The Fly

The Fly is the valley’s longest running political column, written by Metro Silicon Valley staff, to provide a behind-the-scenes look at local politics. Fly accepts anonymous tips.


    • You call this news, this board has been crooks for years and could care less about who they serve it is all about their BS pensions and payoffs.

  1. The RMC controversy involves SCVWD’s influence over the South Bay Water Recycling Master Plan.

    David S. Wall

  2. The water district board seems to be as non-functional/dysfunctional as the SCCBOE Board. These boards are comprised of elected officials paid taxpayer money to be watchdogs, but both boards are asleep at the switch. This water district scandal and stonewalling by Goldie and Yamamoto give a new meaning to the term Watergate. They even have the same hangdog look Tricky Dick had. Is Rosen also asleep at the switch on this issue?

  3. Thank God Keegan Kremen & Santos want to get rid of goldie spigot. leZotte is as bad as when she represented us on council. still a phony enviro bought and sold by chamber. kisses ass of bad developers and takes their money without any shame. refuses to treat employees respectfully at all while wanting more and more health benefits for her and ken-ken

    where is rosen

  4. Again good work, but this has been on going for years, who’s protecting the tax dollar, who is protecting the workers that try to tell, keep digging, and if you look deep enough you will find fraud in every dept, IT included, staff mistreatment, district throwing away personal items, missing equipment, and spending run amok, just like the military industrial complex, The top protects and rewards the managers that break the line, soon you will be asked to pony up another 2-3 million for a new board room, as they IT, and senior staff continue to lie about whats there, and what the system can do.

  5. ask them how many laptop and desktops were missing, ask them were the equipment is like the 70k in video conferencing that gk took out (maybe ebay) or as CIO says there is no VC, ask were the lapels mics are?. ask why they speak into the microphone sideways, ask were the programming contract is and why we spent 20k on amx gear and it just sits, ask why gk stopped all maintenance in the boardroom, ask why they never got the as builds or blue prints or all the keys to all the buildings and locks, ask why we have a 40k mac, ask what 100k of equipment sits in the storeroom for?? would you like more clues, ask about the wrecked crane.

  6. Why did they offer me 1300 for my personal belongings which Gk told IT staff to throw out, THEN ADD STIPULATIONS

    Thanks for the email. I spoke with several people in the IT unit, and it looks like they might have inadvertently thrown some of your things away. That was the basis of the $1,300 offer. In my discussions, it became clear to me that nothing was intentional, and that they were just trying to clear and clean. As for the other issues, I can’t find any evidence of your manager breaching any confidentiality or intentionally telling someone about your medical condition.

    The $1,300 offer still stands. If you would like to accept the offer, please let me know.


    David Cahen
    Risk Manager
    Santa Clara Valley Water District
    5750 Almaden Expressway,
    San Jose, CA 95118
    (408) 630-2213


    1. FOR AND IN CONSIDERATION OF THE SUM OF THIRTEEN HUNDRED DOLLARS AND NO CENTS ($1,300.00), made payable to PAUL GOELTZ, and pursuant to the considerations further described herein, PAUL GOELTZ hereby releases and forever discharges SANTA CLARA VALLEY WATER DISTRICT and its respective attorneys, legal representatives, employees, successors and assignees, heirs, executors, administrators, trustors, trustees, beneficiaries, members, predecessors, partners, partnerships, joint ventures, joint venturers, controlling parent, corporate subsidiary, affiliated and related entities, officers, directors, principals, agents, employees, servants, representatives, and all persons, firms, associations and/or corporations connected with them, of and from any and all claims, liens, demands, actions, or causes of action whether known or unknown, including all injuries, deaths, property damage, loss of use, liens, claims for subrogation, claims for indemnity, claims for breach of any contract or agreement, claims for legal costs or fees, including but not limited to attorney’s fees, or any other claims of any sort, however styled, arising out of or in any way connected with or resulting from claimed injuries and property losses as a result of the incidents identified in claim dated February 13, 2014, at 5750 Almaden Expressway, San Jose, California.
    2. In further consideration for this Release, PAUL GOELTZ agrees, represents and warrants as follows:
    PAUL GOELTZ understands that SANTA CLARA VALLEY WATER DISTRICT disputes their liability for the events, acts, omissions, causes of action, claims or damages alleged in the pleading stated in Paragraph 1, and that this Release is in consideration of the payment by SANTA CLARA VALLEY WATER DISTRICT of THIRTEEN HUNDRED DOLLARS AND NO CENTS ($1,300.00) for the claim for disputed damages by PAUL GOELTZ.
    PAUL GOELTZ will indemnify SANTA CLARA VALLEY WATER DISTRICT and hold them harmless from any loss, claim, expense, demand or cause of action of any kind or character rising from, connected with, or relating to this Release, including any loss SANTA CLARA VALLEY WATER DISTRICT may incur, directly or indirectly, by reason of the falsity or any inaccuracy of any representation made in this Release by PAUL GOELTZ, including reasonable attorney’s fees and costs. This subparagraph is intended to satisfy the requirements and invoke the protections of Civil Code sections 2772 – 2778 on behalf of RELEASEES.
    PAUL GOELTZ agrees that if any party to this Release files an action or makes a motion to enforce the terms of this Release, the prevailing party in that action or motion shall be entitled to reasonable attorney’s fees and costs incurred in bringing or defending against any such action or motion. This subparagraph is intended to satisfy the requirements of California Civil Code section 1717.
    3. PAUL GOELTZ agrees that this Release is made and shall be construed according to the laws of the State of California. PAUL GOELTZ further agrees that any party to this Release may petition the Superior Court of the State of California, which shall have exclusive jurisdiction of the petition, if it becomes necessary to enforce the terms of this Release under California Code of Civil Procedure section 664.6 and any and all related provisions of law.
    4. This is a full and final Release applying to all unknown and unanticipated claims for personal injuries, mental distress, economic and noneconomic damages, or property damage relating to, or in any way arising out of any acts which might be considered to arise out of or in any way be connected with the incidents and events stated in Paragraph 1 of this Release, as well as to those not now known or disclosed, and PAUL GOELTZ waives all his rights or benefits which he now has or in the future may have under the terms of Section 1542 of the Civil Code of the State of California, which section reads as follows:
    A general release does not extend to the claims which the creditor does not know or suspect to exist in his/her favor at the time of executing the Release, which if known by him must have materially affected his/her settlement with the debtor.

    5. PAUL GOELTZ is fully entitled and competent to give this complete release and discharge.
    6. PAUL GOELTZ agrees and accepts that each party will bear its own attorney’s fees and costs.
    7. PAUL GOELTZ warrants that if there are any outstanding liens, medical or otherwise, he will resolve those liens and indemnity SANTA CLARA VALLEY WATER DISTRICT and hold them harmless for any claims or actions brought by the lien holders to collect monies owed on any such outstanding liens.
    8. PAUL GOELTZ agrees to abandon and dismiss with prejudice the entire action as to all parties and all causes of action pertaining to the claim filed with the SANTA CLARA VALLEY WATER DISTRICT on or about February 13, 2014.
    9. This Release contains the entire agreement between PAUL GOELTZ and SANTA CLARA VALLEY WATER DISTRICT. The terms of this Release are contractual and not a mere recital. This Release is executed without reliance upon any representation by any person PAUL GOELTZ has carefully read and understands the contents of this Release and executes it freely and without reservation.
    10. PAUL GOELTZ is authorized to accept delivery of said consideration for this Release on behalf of himself and said parties herein released are hereby authorized to deliver said consideration to him.
    11. A division, if any, of the sums stated in this Release between PAUL GOELTZ and anyone else shall in no way affect the validity of this Release.
    12. For the protection of all parties, California law requires the following information to appear on the form:
    Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.

    Executed on , 2015, at , California.

    (Plaintiff Signature above)

    Print Name:

    *We require that plaintiff’s signature be notarized

Leave a Reply

Your email address will not be published. Required fields are marked *