Costa Mesa sewer district investigates potential overbilling by chief engineer

The Costa Mesa Sanitary District is investigating allegations that it was potentially overbilled at least $200,000 over the last five years by its independent engineer, according to district officials and internal documents.

Under investigation is engineer Robin Hamers, who has been affiliated with the agency since 1981, serving at one time as district manager but now working as a private contractor providing engineering services.

Hamers remains on the job, though his duties have been pared down. Finance Manager Steve Hodges, who caught the discrepancies and reported them to his boss in July, has been placed on paid leave for investigation of unrelated misconduct, the district said.

General Manager Scott Carroll said he doubts Hamers did anything criminal.

“My best guess is that it was sloppy management by Rob,” Carroll said. “I don’t even think it’s a crime.”

Meanwhile, Carroll said Hodges was placed on paid leave because of an unrelated complaint by another employee. “This is not a witch hunt against Steve,” Carroll said.

Hamers, in an interview, denied overbilling and said his company actually charges the district less than any other engineering firm would. Specifically, the district is looking at sewer inspections conducted by an employee of Hamers. The district has since suspended inspections by Hamers’ private company and is using another vendor.

“I don’t believe we overbilled the district. I don’t know how (Hodges) came up with everything,” Hamers said.

In an interview, Hodges said he is being punished for whistle-blowing and that the misconduct allegation was a ruse. “It’s completely fictitious and made up,” Hodges said.

Costa Mesa Sanitary District provides trash collection and sewer services to 116,000 residents in Costa Mesa, small parts of Newport Beach and some unincorporated areas of Orange County.

This is not the first time Hamers has been questioned about his business practices. In 2013, Hamers was accused of misusing district resources by assigning an employee to do $700 worth of work for his private business, Carroll said. That employee no longer works for the district, Carroll said.

Hamers said he actually did something less serious, like asking a district employee to make copies for him.

In the latest discrepancies, Carroll said Hamers’ firm has been charging the district for more than 24 hours a day to, among other things, inspect sewer systems. There are 2,000 work hours in a year and, in one year, Hamers billed for 2,400 hours.

Hamers explained that many of the inspections are done at night and that he and works seven days a week.

A forensic accounting analysis is being performed for the district by public accountants Crowe Horwath LLP and interviews are being conducted by the law firm of Best, Best & Krieger .