Clean Water Services CEO Diane Taniguchi-Dennis Called To The Carpet By Board Of Directors

The Real Story- A Column

The Washington County Commissioners, acting as the Board of Directors for Clean Water Services, held a work session meeting today, and it was anything but calm.  They met with Clean Water Services CEO Diane Taniguchi-Dennis and her legal staff today to hear an update about how the massive Sewer and Storm Water agency is doing on addressing the crisis that has exploded into the media after reporting by The Oregonian exposed lavish spending on meals and travel by the CEO, her team, and potentially 3rd parties.  Labeled as a ‘Plan to Restore Public Trust,’ today’s meeting did little to demonstrate that the CEO or the agency is seriously working towards that goal. With the entire board at the meeting, the members listened to a presentation by CEO Dennis and CWS Legal Counsel Caroline Lobdell. They reviewed 14 slides on a PowerPoint presentation outlining the steps being taken to remove CWS Executives’ meal and travel expenditure privileges, as well as new internal training initiatives and a range of other topics designed to address the crisis.

But throughout the meeting, an uneasiness and palpable tension grew in the small work session room, where there was nowhere to hide from the brutal facts that had been brought to the public’s eyes.  Trips to Hawaii, $600 meals, and dining for guests, among other expenses, have been revealed at rates that far exceed those of any other similar expenditures by agencies that provide public utilities and the like.  Accountability for trips to Hawaii, stays at 5-star hotels, and salaries, all of which are facilitated through the use of a captive insurance company, Clean Water Insurance, which CWS owns, remains shrouded in mystery, as the CEO refuses to provide public records. The CEO seemed almost unconcerned, laying out a set of initiatives and high-level policy changes that were either in place or slated for implementation.  However, the Commissioners, who have been waiting over a month for action since this crisis began (following the Oregonian’s revelation), expressed their displeasure.

Chair Kathryn Harrington, Councilors Treece, Fai, and Jason Snider all leveled concerns and calls for more action.  The meeting concluded with a final 15 minutes of expectations that left this journalist believing that real change is on the way.  Of that I have no doubt. Nafisa Fai boldly discussed the potential for Diane’s exit from CWS, along with its timing, which the CEO calmly outlined: it would occur as part of a retirement plan over the next two years. Comments in the room indicated that a search should happen sooner rather than later.

Snider made some strong points regarding the handling of Public Information requests, and there was discussion about the Commissioners reviewing copies of the requests, making them public, and requesting specifics on responses.  He also discussed taking control of the story being told by the media.  A story that is based on limited information because CWS has stonewalled or delayed information, as per the Oregonian reports.  The Herald has, to date, had no success in obtaining requested public information.  But we will increase the frequency of those requests and print those here for you all to read in the coming stories.

Watch these exchanges for yourselves.  The video below is timed to start where things got interesting and more on point.  The Commissioners, struggling under the weight of serving as the Board of Directors for CWS, are caught in this crisis while simultaneously managing their respective Commissioner duties and cutting $20 million from the upcoming budget.  That includes massive cuts to childcare, housing programs, and the closure of the County Museum, among other notable reductions.  On so many fronts, these folks are in a living hell.  CEO Dennis did not help her cause today as she scribbled on page after page of her pad, just as the legal staff did.

One thing glaringly stood out today.  This meeting was all about ‘Restoring Public Trust’ and avoiding the same transgressions in the future.  No one in that room today discussed the Audit that this Commission requires as per their early April Audit.  Or it was mentioned, barely so.  That Resolution called for:

1. Hire an outside auditor to examine the agency’s travel and meal expenditures over the last three fiscal years.

2. Review and restrict expenses incurred by the agency’s management team.

3. Revise the travel policy by May 1.

4. Engage a third-party consultant to review the agency’s Hawaii-based insurance company.

5. Develop written guidelines clarifying “allowable travel” and training for employees, with findings reported by June 30.

6. Review the meal and refreshment policy by the end of June.

   • Except in emergency situations, local meal purchases by executive management team members are not reimbursable by Clean Water Services.

Some of the action items are currently in development.  However, actions on #1, which have the potential to blow the lid off these matters and widen the scandal, were almost muted today. Number four also lacked any action, and again, that is where some of the money seems to have flowed from for the egregious spending and benefits.  The entire meeting seemed to lack urgency or action from Taniguchi-Dennis, and the conclusion seemed obvious.  She is not capable or prepared to take this agency forward.  It feels like she is hiding things or minimizing them.  As she completed today’s meeting, it was apparent she is done, the Commissioners are displeased, and her ability to repair the public trust is not within her.  

I went into the meeting with an open mind. At least I tried.  I left feeling more solid in my position and opinion, as expressed in my column from two weeks ago.  She needs to resign as soon as possible.  Her replacement must be from outside this agency and bring a new and fresh perspective with an impeccable record for transparency, creativity, and community.

Clean Water Services CEO Must Step Down & County Commissioners Must Fully Disclose To Regain Ratepayer Trust

Some of the people in the room today have been on some of those trips. Probably have had some of those meals. And a good audit will lay all of that out in the open. Who else has been?  Husbands, wives, and friends of staff? If there is to be a return to the Public Trust, if it is to be restored, then all the facts must be on the table. Perhaps these “stories” are simply extensions of perceptions and some hard-won information that The Oregonian reported.  But this is not nothing. This looks like a powder keg ready to blow.  My sense, based on the information I have reviewed and the numerous claims I have received, is that we have only seen the tip of this mountain that is starting to erupt, and that the sulfuric smell that precedes a major eruption is in the air—no doubt about that.

https://www.oregonlive.com/watchdog/2025/04/build-back-trust-sewer-board-approves-oversight-after-lavish-spending-revealed.html

Information, transparency, openness, accurate records, and honesty are the only paths forward for CWS, an agency that 610,000 struggling ratepayers have to pay every month, to regain the trust of the public and the trust of all of you at CWS.

WHISTLEBLOWERS WANTED

Many of you at CWS are likely aware of this situation and have no involvement. I offer you total anonymity and protection if you would like to discuss, meet, or email me in a confidential manner. I can be reached on Facebook and Instagram at hillsboroherald@gmail.com or by phone at 503-799-8383. Someone needs to say something. Reach out, Please!