The head of Washington County's sewer district, Clean Water Services, has tendered her resignation following the fallout from a report that uncovered lavish spending within the public agency. Diane Taniguchi-Dennis, CEO since 2018, informed the sewer board that she would step down, with her final day scheduled for June 6.

Excessive Spending on Luxury Resorts and Meals

The Oregonian/OregonLive investigation, published in March, revealed a shocking pattern of extravagant spending by executives at Clean Water Services, including Taniguchi-Dennis. The report highlighted costly business trips to Hawaii, where executives stayed at five-star resorts, and an alarming $440,000 spent on local and travel meals over the past five years—four times the amount spent by comparable agencies in the metro area.

Taniguchi-Dennis’s trips were particularly expensive, with her 2023 trip to Hawaii costing nearly $8,400, including premium lodging and first-class airfare. The agency justified the lavish expenses by claiming they were “reasonable accommodations” under the Americans with Disabilities Act, despite accessible rooms being available at all price points. In addition to the trips, Taniguchi-Dennis also spent at least $5,100 over the course of two years dining out with top executives.

Facing Pressure, Taniguchi-Dennis Struggles to Restore Trust

In the wake of the report, Taniguchi-Dennis faced intense scrutiny from the board. Last month, the sewer board adopted new measures aimed at increasing oversight within the agency. Taniguchi-Dennis was tasked with working on a plan to restore public trust. However, when she presented the progress of her plan on April 30, the board expressed disappointment. Board members, including Washington County Chair Kathryn Harrington, criticized her for vague proposals and lack of concrete actions to address the concerns.

Taniguchi-Dennis, an engineer by training, had been with Clean Water Services since 2011, starting as deputy general manager before being appointed CEO. Despite her long tenure and previous success, the fallout from the investigation seemed to have undermined her credibility and leadership.

A Difficult Decision for Taniguchi-Dennis

In a resignation email sent to her colleagues, Taniguchi-Dennis explained that stepping down was "the right thing to do for both the organization and my health." She acknowledged the difficulty of the decision but hoped it would allow space for both personal and organizational healing.

Although the resignation is seen by many as a necessary step toward restoring trust, some ratepayers, like Mike McDonnell, questioned why it took a media investigation for the sewer board to take action. McDonnell expressed hope that the resignation would lead to meaningful changes in the agency's behavior.

Uncertain Financial Terms and Future Leadership

The financial terms of Taniguchi-Dennis’s resignation remain unclear. While her contract doesn’t mandate severance pay upon resignation, the board has the discretion to offer up to 1,040 hours of base salary if she provides written notice. Taniguchi-Dennis’s base salary is currently $357,000, with a total salary of nearly $400,000 last year, in addition to a retirement benefit of $147,119.

Clean Water Services has yet to disclose Taniguchi-Dennis's performance evaluations, adding to the ongoing questions surrounding her leadership and the agency's finances.

In a press release, the Clean Water Services board expressed gratitude for Taniguchi-Dennis’s service and reaffirmed its commitment to the operational success of the agency. The board also announced plans to search for an interim executive director and begin a national search for a permanent replacement in the coming weeks.

The resignation comes at a time when the agency is reviewing its budget for the upcoming fiscal year. With another 4% rate increase already planned, customers will be watching closely to ensure that the agency's financial practices are more accountable moving forward.

As the dust settles, all eyes will be on the agency’s leadership and whether this resignation marks a new era of transparency and trust for the 610,000 residents served by Clean Water Services.