Nearly three years ago, the Santa Clara Valley Water District — a government agency that serves as the primary provider of drinking water to Santa Clara County residents — found itself in the middle of a political tempest. The district's then-CEO, Stan Williams, hired board member Greg Zlotnick to a newly created, $184,000-a-year job without telling the other board members or advertising the job opening. The ensuing controversy led to Williams' resignation and a great deal of public scrutiny on how the agency spends taxpayer money. In addition, a state law signed by Gov. Arnold Schwarzenegger in October saddled the district with new rules, including a ban on hiring its board members for at least one year after they leave office. This week, the saga came to something of a close when the water uggs outlet district's new CEO, Beau Goldie, fired Zlotnick. "It was not for nonperformance. We eliminated the position," Goldie said. The move was part of a cost-cutting pattern that Goldie has pushed since taking over as CEO in May. Zlotnick's job was an executive position that involved managing statewide policy changes over the Sacramento-San Joaquin Delta, the source of half of Santa Clara County's drinking water. Now his duties will be divided among three existing employees, Goldie said. Zlotnick, a Mountain View attorney, was earning $169,000 most recently, and under district policy that provides four weeks of severance for top managers for each year served, he was given $33,800 in severance, said Susan Siravo, a district spokeswoman. In the past two years, the water district has eliminated 57 positions to bring its staff to 772, CEO Goldie said. The agency's budget has dropped from $411 million last ed hardy outlet year to $305 million as a result of reducing staff, overtime, some construction projects and new vehicle and computer purchases. "I'm aware of what happened in the past," Goldie said. "But I'm serious about making changes. I want the community to be proud of this water district." With the district potentially facing a state raid on its revenue, and the loss of a recent court decision over the way it collects groundwater fees, more staff cuts are possible, Goldie said, especially from the executive ranks. Dick Santos, chairman of the agency's board, said he supports Goldie's decision. "He wanted to appoint his own team," Santos said. "It'swholesale ed hardy part of cutbacks, and a streamlining, as a way to get more efficiency." Zlotnick, 46, did not return calls or e-mails Thursday.