Company San Diego hired for power-washing overbilled county 20 out of 20 times, records show

• San Diego County rejected almost $240,000 in billing requests from the same company that the city of San Diego hired to presssure-clean downtown sidewalks during its hepatitis A response.
• The rejection rate for 20 invoices seeking $985,000 in payments was almost 25 percent.
• City officials say they inspect all invoices carefully, and the company said overbillings identified by the county were not deliberate.

Every one of the 20 invoices that Clean Harbors Environmental Services submitted to the County of San Diego in recent months contained charges that officials said were not covered by the contract.

According to documents obtained under the California Public Records Act, the company sought almost $985,000 from San Diego County for work clearing away homeless encampments in response to a hepatitis A outbreak that roiled through the region last year.

County billing officials culled through the invoices line by line and declined to pay almost $240,000 of the requested payments, a rejection rate of almost 25 cents on the dollar.

“The county has only paid for work performed in accordance with our contract’s requirements,” spokesman Michael Workman wrote in a statement. “The contract does not require the county to pay for ‘per diem’ and mobilization costs for Clean Harbor’s Los Angeles-based resources.”

The overcharges ranged from a low of $115 to a high of $55,779. The cleanup contract was signed in October and originally capped at $250,000. It was subsequently amended twice and is now valued at $1.6 million.

Clean Harbors issued a statement Friday saying it does not deliberately overbill customers, and its regular business practice is to charge within the parameters of its contracts.

“If there is a discrepancy in any invoice, we work with our customer to quickly resolve any issue,” spokesman Keith Ferguson wrote. “Any specific questions regarding our engagement with any of our customers should be addressed to that particular client.”

Records show that the county repeatedly informed Clean Harbors in meetings and telephone calls that it had submitted invoices for costs not covered by the contract.

“As of this date, we still have not received corrected invoices and therefore we will be processing a payment for the (amended) invoice referenced above,” reads one letter from Jan. 24, 2018 that shaved about $12,000 off a requested payment.

“Hand tools are not reimbursable,” the county wrote.

Clean Harbors is a publicly traded company headquartered in Norwell, Mass., that provides environmental and industrial services across North America. It reported revenue of $2.94 billion in 2017, a 7 percent rise over the previous year.

The overcharges in San Diego County raise questions about whether the City of San Diego paid Clean Harbors too much to power-wash sidewalks over the same period. City and county officials were scrambling to contain the spread of the deadly hepatitis A liver infection, concentrated in a growing homeless population with limited access to basic sanitation.

“The city reviews all invoices thoroughly for accuracy and proactively addresses any issues directly with contractors,” spokeswoman Katie Keach said. “We are not aware of any billing issues at this time related to sanitation efforts.”

The San Diego Union-Tribune in recent weeks has been examining public records related to the city and county response to the hepatitis A outbreak, which killed 20 people and sickened hundreds of others before it was contained early this year.

The disease hit the homeless population the hardest, prompting city and county officials to focus their response on disinfecting sidewalks and removing illegal camps where the virus was more likely to spread.

The newspaper reported last week that the city selected the Massachusetts company for the pressure-washing work and paid thousands of dollars in overtime to shuttle work crews to and from Los Angeles.

City officials also spent thousands of dollars on gloves and other equipment, as well as daily $179 “per diem” fees for individual workers, records showed.

Two local cleaning companies told The San Diego Union-Tribune they would have welcomed an opportunity to compete for the work, and they would not have billed the city for per diems or gloves. San Diego paid Clean Harbors at least $99,000 in various add-on charges, records showed.

County officials rejected similar requests for payment, noting the charges were not included in the agreement. “Per diem reimbursement is not part of the contract,” the county noted in reviewing Clean Harbors invoices.

Both the city and the county issued their contracts under no-bid, emergency circumstances in order to expedite a response to the escalating public health threat. Both agreements remain active but are expected to wind down after competitive bids are awarded for longer-term work.

The city contract called on Clean Harbors to pressure-wash sidewalks with a bleach solution on an as-needed basis for up to $1.3 million. The county agreement calls on the company to clear homeless encampments.

According to city and county billing statements, the company charges $81 an hour for field technicians. The county contract included equipment operators at $100 an hour. It is not clear how much the firm is paying the workers themselves.

Several of the rejected payments were for workers who did not appear on more detailed worksheets submitted by the company. The county also declined to pay thousands of dollars in set-up and demobilizing costs, records show. Again, these were charges paid by the city.

Some overcharges were for equipment that was supposed to be provided by Clean Harbors.

“Contractor shall at its expenses provide its employees with safety personal protection equipment and apparel,” the county told Clean Harbors in its review.

The 20 invoices approved for payment by the county were for work performed since October. Clean Harbors already has submitted an additional 15 invoices for just over $306,000, although those have yet to be approved for payment.

Watchdog Videos

×

On Now

Public water district charges customer for legal work, response to records request

On Now

Video: Tiny homes won't be reused amid housing, homeless crisis

On Now

Attorney General seeks documentation for Miss Middle East

On Now

Rep. Hunter probe covers possible fraud

On Now

Video: SDG&E delaying solar credit for some low-income housing tenants

jeff.mcdonald@sduniontribune.com (619) 293-1708 @sdutMcDonald