Overbilling, racism alleged at Costa Mesa Sanitary District

A $590,000 settlement by the Costa Mesa Sanitary District to end a whistleblower lawsuit has opened a window on allegations of overbilling and racism in the agency.
The settlement was finalized in February with former Finance Manager Steve Hodges, who alleged retaliation after he accused a veteran district engineer of overbilling for inspections.
The litigation also unearthed evidence that a high-ranking administrator verbally disparaged Mexican employees and often used the “N-word.”