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Home Featured Story

In The Dark Of The Night, The Clean Water Services Crisis Looks Even Darker

Hidden Truths, Politicians Obstructing Information, and The Struggle To Breath In Washington County

dirkknudsen@gmail.combydirkknudsen@gmail.com
May 23, 2025
in Featured Story, City Council, County Government, Environment, Government, Opinions, Our Town
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In The Dark Of The Night, The Clean Water Services Crisis Looks Even Darker
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NOTE: 5/23/2025 at 1 PM Today – the Clean Water Services Budget Committee will meet to move ahead with a 5% rate hike. In the middle of this crisis, you will all be paying more for the services of this agency, which is under scrutiny for financial waste.ย  There are no words for this.ย  Watch online at 1 PM today – https://www.youtube.com/channel/UCwPH_ktRyEtWLwHNwsbaN0w. Attend by Zoom at this link: https://forms.co.washington.or.us/form/public-testimony-sign-up

You can attend the meeting in person on May 23, 2025, at 1:00 p.m.ย  The meeting will be held at 155 North First Avenue, Hillsboro, Oregon in the Charles D. Cameron Public Services Building Auditorium


It’s dark out there tonight. Looking North from our 117-year-old home in the bankrupt former City of Orenco, once a shining star above all others, I can see the plume of chemical-driven water vapor piercing that darkness as it rises from Ronler Acres.ย  Intel doesn’t test that stuff and won’t let anyone else do it either. We can see it rising 10,000 feet above the ancient Tualatin Valley floor.ย  But at least we can see it.ย  On nights like this, as a 62-year resident of Washington County, I know that the things lurking in other places of Washington County tonight pose an even bigger risk to our people.ย  Those are the things that we are all beginning to wake up to.ย  You know the things you read, hear, and feel deep inside that you know in your heart are so wrong.ย  Things that, at their core, undermine our humanity and threaten our futures. Things like fraud or its appearance.ย  Misappropriation of funds by our local government leaders.ย  Local leaders demand Transparency from agency staff but refuse to offer it when asked.ย  Special deals in the dark. Consultants are being hired as executives without proper hiring processes or equitable guidelines.ย  This darkness includes private meetings in which certain people lay out a plan to retire on PERS and still get paid over $400,00 a year to be a CEO working for the good people of Washington County.

Careful- Opinions and Statements of Research based on facts offered here.

That Darkness is here, all around us.ย  We feel it squeezing in.ย  And it will not stop, nor end, until more of us stand up and raise and light and shine it squarely in the eyes of those who brought it down upon us.ย  So here goes- another story by the guy whose name is brought up more and more in chambers, I am told, as “the problem”.ย  ย Let’s shine some light, shall we?ย  Who is with me?ย  Let’s turn it up…

Darkness on the Edge of Town

Everybodyโ€™s got a secret, Sonny
Something that they canโ€™t face
Some folks spend their whole lives trying to keep it
They carry it with them every step that they take
Till some day they just cut it loose
Cut it loose or let it drag โ€™em down
Where no one asks any questions
Or looks too long in your face
In the darkness on the edge of town

Bruce Sprinsteen, Darkness On The Edge Of Town

Cut it loose or let it drag ’em down.ย  The great man who wrote that song so long ago cut through the darkness, swallowing up our Country.ย  Sitting on a stage for the world to hear, he cut through it with a lightsaber and splayed it open. And in return, he was threatened by the man who brought that darkness over all os us.ย  The man who believes he can silence whomever he wants, or even to disappear them. But as always, Sptinsteen’s words were clear and rang true.ย  Darkness can perhaps best be fought with the light that only words can shine.

In this country, people are still free to speak with their voice, so I will use mine again. Given all the factories, fabs, and data centers, Hillsboro can be pretty bright at night. But to find absolute darkness, the thick dark stuff, all you have to do is make it 3,965.5 feet across Jackson Bottom, heading south on 1st Street.ย  That is where you will find very real physical and metaphorical darkness.ย  That is the physical home of Clean Water Services, the much embroiled county service district created under Oregon law and governed explicitly by Oregon Revised Statutes (ORS) Chapter 451.ย ย I did not know that until recently.ย  Because you see the darkness hanging over this billion-dollar entity, created by the scandal that involves Executives and politicians travelling to 5-Star Resorts and eating at lavish restaurants, is just the edge of the black.

As the Herald has tried to tell this story to our readers, information about who has been involved in abusing the sewer and storm water rate payers (610,000 of us in Washington County) has continued to bubble up.ย  Information from some of those working in the darkness has brought forward even more questions.ย  The potential for this situation to gain clarity and have light reveal its truth has become much more difficult.

But we must try,

In recent weeks, the scandal, which began with claims against CWS CEO Diane Taniguchi-Dennis and her staff, has played out.ย  The Washington County Commissioners, who also serve as the Board of Clean Water Services, called her in with the CWS legal team and called for an audit process to be started.ย  They called for the spending and all travel, lavish outings, and meals to stop. They got tough, if you want to call it that, with the CEO.ย  In their second meeting (April 30th), they asked her to be more transparent and react quickly.ย  The Herald called for her to be fired or to resign in three separate articles, after we reviewed the records and received whistleblower information.ย  Four hours after we wrote this opinion piece, she did just that… resigned.

Clean Water Services CEO Resigns 4 Hours After The Herald Demands It – But This Isn’t Over For Her Or Commissioners

Enough light made it through to force out the face of the darkness. Not to worry, folks. Ms Dennis was making approximately $400,000 a year and receiving $147,119 from the Oregon Public Employees Retirement System simultaneously. The fact that this was allowed to happen is one thing. The fact that it happened with the approval of the CWS Board is an entirely different matter.ย  So with Ms. Taniguchi-Dennis gone effective June 6th, let’s turn this spotlight onto that board and the agency itself.

The Hillsboro Herald, the Oregonian, and others have had virtually all efforts to obtain Public Information thwarted by CWS.ย  Either they are non-responsive to our requests or send back inane responses that they do not understand the question.ย  What we have received are responses to a tiny percentage of the inquiries.ย  As we have all begun to realize, CWS owns and operates a Hawaiian captive insurance company that receives millions from CWS every year. CWIC, as it is called,ย  funds travel and other goodies for its Board of Directors to attend conferences in Hawaii.ย  It might be legal, but it smells of fraud and financial misdealing.

Here is a small part of the HH Public Information Request: 3-26-25:

The Hillsboro Herald is requesting records as follows:

The names of the Clean Water Insurance Company Board of Directors and complete salary information on any paid directors. In addition, we ask for records of any compensation packages and travel expenses paid by Clean Water Services or Clean Water Insurance Company to staff, executives, spouses, and guests to travel to and from Hawaii for meetings or events.

Response:ย  Norma Bustamante- CWS – May 12th, 2026.

Clean Water Services is not the custodian of these records

Bullshit. Let’s pull out the Light Saber.

Who Has The Power Over This Mess – Who Can Shine The Biggest Light

For all our readers, here is who runs and owns this situation. Here is who can fix what is happening. Here is who owns this situation: these are the people where the buck stops. All the 5-star resort stays, 5-star meals, and trips to Laos, Denmark, Hawaii, and across the USA happened under the nose and oversight of these folks. No, they do not run the day-to-day at CWS. But when trouble arises, this is who holds the power. They called for an audit, but it was a weak ask.ย  And they got “tough” with the CEO, but knowing the level of misdealing, they not only did not fire her but also sent her off with praise and a special resolution.ย  ย Yes, there have been constant private Executive Session meetings to cover specifically “Clean Water Services Litigation.”ย  We believe that is because the storm- the darkness I perceive over CWS- is much more intense than we know.

You can see by this graphic that the Washington County Board of County Commissioners, acting as the Clean Water Services Board of Directors, controls the entire situation.ย  ย There is nothing that the CEO of CWS, the Director or CEO of the Clean Water Insurance company in Hawaii, or anyone below the Commissioners can do to stop the CWS Board from forcing a speedy delivery of information and obtaining the immediate public disclosure of all the info requested.ย  There is no excuse of “we don’t have the information” because it’s a Hawaiian entity that can stand unless these Commissioners want it to.ย  No financial records can be hidden if this Board does not want them to be.

Due to the continued darkness, the Herald sent a request on May 9th, 2025, to the County Commissioners, the CWS Board of Directors, and Clean Water Services asking for full disclosure about the Commissioners / CWS Board Members themselves. The more I push for this information, the more pushback I get.ย  I have information to suggest that Board Chair Kathryn Harrington has received substantial benefits over the years, including travel to Denmark, Laos, Singapore, Vietnam, and Hawaii.ย  These trips may have included lavish hotels, meals, outings, etc.ย  We have claims that she has been tested like an empress.ย  As a journalist, I have gone to the source.ย  I have filed official requests for responses.ย  I challenged her and all the CWS Board members to provide us with total transparency and to declare what benefits they have received from CWS on the record.ย  In writing and in person.

Pam Treece plans to run again in 2026 and grab the county commission Chair’s seat. Employees within CWS tell me she traveled to Denmark with Taniguchi and Harrington and that the trio is as thick as thieves. There has to be so much more to this story. But Ms. Treece has also refused to respond to my requests or have the fortitude to answer the questions.ย  I am waiting, we all are, Pam.ย  Your future leadership is predicated on what you do now, and it looks weak from my seat.

Jerry Willey? I have no idea. My former Accountant has had quite a run in our County professionally and personally. What a successful guy he isโ€”and powerful, too. I know he has done a professional job, but I can not speak to his travel or other involvements with CWS or their Insurance company. I hope he will disclose.

Gratefully,ย two of the five CWS Board Members have responded and are emerging as real leaders on this matter.ย Board Member Jason Snider disclosed that he has had two lunches paid for by CWS, both typical meetingย lunches.ย  He admitted he has not been around long enough to have perhaps had the opportunity to travel to Laos or Denmark, but he wanted to clear the request and be on the record.ย  On behalf of the thousands of readers of the Hillsboro Herald, we thank you, Jason Snider.ย  Keep up the great work.

Board Member Nafisa Fai also went on the record and answered my call for transparency.ย  She stated that she was releasing her travel calendar, which should disclose what trips she has taken, if any, and what other meetings and events she has attended.ย  This was a bold move.ย  We have not received that yet, and we hope the County Staff will forward that to the Herald at HillsboroHerald@gmail.com.

READ The Formal Request For Information here- Public Information Requestย  CWS LETTER RE COUNTY BOARD

If you know a County Commissioner and want to have them answer these or other questions, please refer to this document or the questions it raises.ย  ย  ย You can reach them via email by filling out the form and providing your information here.ย  https://forms.co.washington.or.us/form/constituent-inquiry

I have not specifically said anyone did anything wrong. The records and the truth will clear the record. The light will remove the darkness. And this issue is expandingโ€”millions have been spent on consultants who are friends of friends in power. Hiring friends and open nepotism in violation of policies are on the table. Loans and moving money for non-project purposes have been alleged.

So the only way forward is to shine the bright light.

Kathryn Harirngton told CWS staff she wanted transparency from Clean Water Services. Now, she does not offer it herself, not yet anyway.ย Nafisa Fai called for it for all parties concerned. Jason Sniderย was on the record. He wants all the public information requests and the CWS responses published for all to see. Harrington was not having any of that.

Transparency – thoughts on that.

Transparency in government and business acts as sunlight, illuminating hidden corners where corruption thrives, ensuring accountability thrives over secrecy.ย  Me

And here are two more famous people who said something about it.

  1. Martin Luther King Jr.:

“Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.”

  1. Louis Brandeis (former U.S. Supreme Court Justice):

“Sunlight is said to be the best of disinfectants.”

Darkness is upon CWS and all they touch and have touched.ย  The former CEO caused this and allowed it to happen.ย  This Board of Directors knowingly or unknowingly allowed it too.ย  Now is the time for them and all of us who can shine light to do it.ย  So, please stand with me.ย  Some of you have.ย  We will meet.ย  We will prepare to do more.ย  We will make a difference.ย  Please join us – contact me at hillsboroherald@gmail.com, and we will meet soon.

You can help!

https://hillsboroherald.com/wp-content/uploads/2025/05/Director-Fryes-Bold-Transparency-Move_-Releasing-Travel-Summary-1.mp4

WHISTLEBLOWERS WANTED:ย Thanks to the 13 brave souls who have risked their careers to talk with or contact the Herald.ย  Given no fair way to blow a whistle, we need you!ย  Things will change! HELP US!

Many of you at CWS know more than anyone and have nothing to do with this. I offer you total anonymity and protection if you want to talk, meet up, or email me anonymously. I can be reached on Facebook and Instagram at hillsboroherald@gmail.com or at 503-799-8383.

The CWS Legacy is proud, and the 98% have built a great organization. The 2% has failed us all. Please help us stop them, expose them, and remove them!


The Herald is a free online media site and community newspaper. We have no ads and no revenue. We would be forever grateful if you could become a Patreon and help pay for coffee and copies.

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NEXT UP – The people who went to Hawaii in 2024- how much it cost – and the mega resort they all enjoyed!

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Comments 3

  1. Jonathan Amann says:
    1 year ago

    So the chair and vice chair were in on it huh? This makes a lot more sense, and also makes me wonder whether they concocted this scheme on their own, or from learning about it from others within local or county government that use the same grift?

    What I would like to see, is a class action lawsuit to receive compensation for the THOUSANDS of dollars we’ve spent on monthly water bills in fees jacked up by this scheme.

    Reply
  2. Jonathan Amann says:
    1 year ago

    Chat GPT came up with a cool summary of everything including suggested actions to take:

    Subject: Alleged Misuse of Public Utility Funds through Captive Insurance Scheme

    Entities Involved:

    Clean Water Services (CWS)

    Clean Water Insurance Company (Captive, incorporated in Hawaii)

    Diane Taniguchi-Dennis (Former CEO)

    Washington County Board of Commissioners (Chair and Vice Chair specifically named)

    —

    Overview of Alleged Scheme:

    1. Formation of Captive Insurance Company in Hawaii (2016):

    CWS creates “Clean Water Insurance Company” under Hawaiian law.

    Hawaii statute requires in-person annual board meetingsโ€”used as justification for travel.

    2. Funneling of Excess Ratepayer Fees:

    Millions of dollars from public utility fees were diverted from CWS into this captive entity.

    Surplus revenue from ratepayers justified as building “risk reserves.”

    3. Use of Captive to Justify Lavish Travel:

    Annual travel to Hawaii for board meetings, including business-class airfare and luxury accommodations.

    Reported 2023 trip cost: $42,000; CEO lodging alone: $6,928.

    Additional trips to Laos, Denmark, and other U.S. locations framed as “innovation exchange” or Smart Cities collaboration.

    4. Participation of Elected Officials:

    Chair and Vice Chair of the Washington County Commission participated in multiple trips.

    Their role as both county officials and CWS board members presents a structural conflict of interest.

    5. Lack of Oversight and Transparency:

    Minimal public disclosure of travel expenses or the insurance entityโ€™s financials.

    No independent external audits conducted of the captiveโ€™s purpose or fund usage.

    No formal hearings to approve use of ratepayer funds for these purposes.

    Potential Legal Violations:

    Breach of Fiduciary Duty (ORS 128.630; common law precedents)

    Unjust Enrichment

    Misrepresentation/Fraud (intentional or constructive)

    Violation of Oregon Public Records and Open Meetings Laws

    Ethics Violations under Oregon Government Ethics Commission statutes

    Recommended Actions:

    1. Independent Forensic Audit:

    Trace all financial transactions from ratepayer revenue to the Hawaii-based captive.

    Identify travel reimbursements, executive compensation, and vendor payments.

    2. Class Action Legal Briefing:

    Seek to recover misused funds directly from named individuals and the captive entity.

    Demand court-mandated ratepayer restitution without future rate hikes.

    3. Public Transparency Campaign:

    Petition for Oregon DOJ or Secretary of State audit and investigation.

    Media outreach to local and regional news outlets with this documented timeline.

    4. Civil and/or Criminal Referral:

    Submit findings to the Oregon Government Ethics Commission.

    Request criminal review if fraud or conversion of public funds is demonstrated.

    Supporting Exhibits (Suggested):

    Board meeting minutes referencing Hawaii travel

    Travel receipts and per diem records

    Structure and bylaws of Clean Water Insurance Company

    Emails and internal memos discussing purpose and use of captive insurance funds

    Reply
  3. Mark Alan Descoteaux says:
    1 year ago

    Sir~

    I’ve been in the water utility field for over forty years. I’ve paid my dues by starting as a laborer, getting licensed, taking on further responsibilities and have earned the opportunity to supervise many clean water facilities. Every day I remind myself of that first day on the job. I believe that this has influenced me to treat people the way that I would like to be treated.

    My water licenses have enabled me to work in several beautiful places around the world. Maine, Alaska, Wake Island and most recently, the Marshall Islands. (Kwajalein) I tell my operators, water is a finite resource and our impact on the environment is global, we are the ultimate conservationists!

    My point simply is, after reading your article on CWS I personally feel that this organization is not what it appears to be and is further from helping the environment than it boosts on their homepage. It undermines all the environmental work that I have been doing for decades along with all the other operators that go to work, day in and day out.

    You work exposing this needed to be done and I applaud you! Your work surpasses “Bernstein & Woodward”

    Reply

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