Washington County approves six-figure payout for CEO who resigned from embattled sewer agency

This story has been updated to reflect that the proposed agreement has been approved.

The board of Washington County’s sewer agency approved a six-figure payout for its former chief executive officer, who tendered her resignation last month in the aftermath of

an investigation by The Oregonian/OregonLive

that uncovered

lavish spending at the public agency

.

Diane Taniguchi-Dennis, whose last day at the agency was June 6, will receive a one-time payment of $121,861, according to a separation agreement she signed June 3. That payout represents two months of salary and enough money to cover two years of medical insurance.

The sewer board, which is made up solely of the members of the Washington County Board of Commissioners, voted 4-0 to approve

the agreement at a meeting Thursday

.

In return, Taniguchi-Dennis has agreed not to sue the agency, according to the agreement. She retains the right to report any potential claims of discrimination to government agencies like the Bureau of Labor and Industries, but she will be unable to receive any monetary relief from any such claims, the agreement says.

The two sides also have agreed not to disparage each other, although the agreement does allow for leaders associated with the agency to make “truthful statements” in response to any investigations or audits. The sewer agency is in the process of identifying an outside investigator to conduct an audit of its travel and meal spending over the last three years.

The Oregonian/OregonLive reported in March that executives from Clean Water Services, the state’s second-largest sewer agency, stayed in luxury resorts

during annual business trips to Hawaii

that cost tens of thousands of dollars and that the agency paid

$440,000 on local and travel meals

over five years – four times more than its two metro area counterparts spent on food during that time combined.

Taniguchi-Dennis was among several sewer executives who traveled to Hawaii for annual insurance conferences at a cast of five-star resorts. The trips were paid for by an insurance subsidiary that the Clean Water Services board created in 2016 and registered in the state of Hawaii. Trips in 2019, 2022 and 2023 cost $91,000, with premium lodging and first-class airfare for Taniguchi-Dennis hitting $8,400 in 2023 alone. The agency said the trip was “booked as a reasonable accommodation under the Americans with Disabilities Act and Oregon law” even though the hotel Taniguchi-Dennis stayed at advertises accessible rooms at all price points, not just in Gold rooms or suites.

Taniguchi-Dennis also regularly dined out locally, spending at least $5,100 in under two years on meals she shared with some of her top executives.

To date, Taniguchi-Dennis has not provided an explanation for the spending or agreed to be interviewed by The Oregonian/OregonLive. She said in a statement released nearly three weeks after the newsroom’s report that she took the investigation seriously and noted that, as CEO, “

I should model accountable executive spending to avoid an appearance of impropriety

.”

Clean Water Services

• Embattled sewer agency names new acting leader

• Washington County sewer CEO resigns following Oregonian investigation

• Sewer board grills CEO on plan to restore public trust: ‘I’m concerned I haven’t heard a strong message from you’

• ‘Troubling and disappointing’: Washington County sewer agency continues to shield key info about Hawaii trips

• ‘We’ve lost public trust’: Sewer board approves oversight after lavish spending revealed

Acknowledging the need for more oversight, Washington County’s sewer board in April adopted

new measures for the agency

and required Taniguchi-Dennis to work with it “on a plan to restore the trust of the community, local government partners, employees, and the board.”

When Taniguchi-Dennis presented the agency’s progress implementing the oversight plan, the board was

not impressed

. Officials chided her for failing to provide sufficient details or outline bold action during a presentation where she read from prepared slides that included only vague descriptions and lacked timelines.

She submitted her resignation a week later. At a public meeting after her announcement, Taniguchi-Dennis offered a

brief statement complaining about the media attention

.

“I’ve learned that minor facts can be skewed with sensationalism and conjecture to create a false picture about a public servant,” she said, adding that she hoped her decision to resign would create “a space for unity to move forward.”

Taniguchi-Dennis had a base salary of $357,000, according to the agency, but she earned a total salary of nearly $400,000 last year. Separately, Taniguchi-Dennis filed retirement paperwork in 2023, enabling her to earn what is now an annual benefit of $147,119 from the Oregon Public Employees Retirement System.

Rick Shanley, the agency’s chief engineer and water technology officer,

has been named

acting chief executive officer/general manager. The sewer board is set to approve a 3% rate increase for customers to take effect July 1, down from the 4% hike initially proposed by the agency.

—


Jamie Goldberg


oversees The Oregonian/OregonLive’s politics, education and homelessness coverage. She can be reached at


jgoldberg@oregonian.com


or 503-221-8228. You can find her on X at


@jamiebgoldberg


or Bluesky at


@jamiebgoldberg.bsky.social


.

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