Directors this week set a public hearing for Oct. 28 to discuss giving themselves a possible 5 percent stipend increase, or $12 more per meeting, or a 10 percent stipend increase, or $23 more per meeting. The seven members are paid $236.39 to attend meetings and events related to their jobs for up to 10 days per month. They are also reimbursed for mileage expenses to and from the meetings.

The district provides water to nearly 2 million people in Santa Clara County. It has a total budget of $411 million for fiscal year 2008-09, and employs about 750 people, according to district spokeswoman Susan Siravo.

It's rare for any board member to attend fewer than 10 meetings in any month, and they typically attend more than 10, added Siravo.

"She added that state code allows the board to raise their compensation by 5 percent per year to keep up with inflation. Because the directors voted to forego a pay increase for calendar year 2008, they may give themselves a 10 percent raise for 2009, Siravo said.

Board members voted Tuesday 6-0 to approve the public hearing, with Joe Judge absent. The hearing is required as part of the process to approve any ordinance that would change the board's rate of compensation.

The board has been steeped in controversy related to spending and hiring of personnel. One-third of district staff make six-figure salaries are among the highest in the state while they continue to raise rates, and former CEO Stan Williams resigned after hiring then-director Greg Zlotnick for a $184,000-a-year job without authorization from the board.

The last calendar year for which the Valley Water District board approved a 5 percent raise was 2007. Board vice-chair Sig Sanchez chose then to keep his pay at the 2006 rate of $225.13.

The public hearing will take place at 9:40 a.m., Oct. 28, at the district's headquarters, 5700 Almaden Expressway, San Jose.