Chris Roberts cites study that found the deal would be costly for the parish
Jefferson Parish will likely take steps "very soon" to cancel its controversial $160 million garbage-disposal contract with the River Birch landfill, Parish Councilman Chris Roberts said Friday after testifying before a grand jury in the federal criminal investigation of former Parish President Aaron Broussard's administration.
View full sizeThe Jefferson Parish landfill, foreground, and the River Birch Landfill, background, were photographed in January 2008. Another councilman said the focus of the sprawling 15-month investigation appears to be intensifying on the River Birch deal, which would require the parish to close its rival dump next door in Waggaman for 25 years.
Roberts and fellow Councilmen Tom Capella, Louis Congemi and Byron Lee were questioned as witnesses Friday before the grand jury in the Hale Boggs Federal Building in New Orleans.
Councilman Elton Lagasse had also received a grand jury subpoena, but his appearance was canceled as time ran short and has yet to be rescheduled.
Congemi said most of the questions he fielded concerned the landmark 25-year River Birch contract, which was approved in 2009 but has yet to take effect.
"They asked me questions about what's going on in the parish, mostly relevant to River Birch," Congemi said after testifying for about an hour. "I answered the questions as fully as I could to the best of my ability."
Roberts, who had appeared before the grand jury three weeks ago, was called back to verify some documents Friday and spent about five minutes on the witness stand.
He said the parish is moving toward canceling the River Birch deal based partially on a parish-commissioned study that concluded the deal would cost the parish at least $9 million more than continuing to use the parish dump.
Released in January, the study contradicted the Broussard administration's projection that the deal would save the parish about $20 million over 25 years.
"The information we were given when we approved the contract is not the same as what we have now," Roberts said. "Once we finish verifying that, we will be taking steps to rescind the contract. I think you'll see something happening with that very soon."
River Birch officials contend that numbers used in the parish study are flawed and that a preliminary report that was favorable to the River Birch deal was skewed by input from parish officials who were allowed to see the initial findings.
The landfill's own study had concluded the deal would save the parish at least $42 million.
A parish official said Jennifer Sneed, a former parish councilwoman married to River Birch owner Fred Heebe, appeared before the grand jury Friday as did her former council assistant, Rob Hinyub, who is now Councilwoman Cynthia Lee-Sheng's assistant.
Sneed resigned her council seat in August 2008, two months before the parish started putting together guidelines for garbage-disposal bids that resulted in the River Birch contract. At the time, Sneed said the couple had just bought a house in New Orleans and she wanted to devote more time to their twin daughters.
Capella, the council chairman, declined to discuss specifics of his nearly two hours on the witness stand.
"I want to honor the secrecy of the grand jury proceedings," he said. "But I will say that I answered every question they had about the previous administration for me as a witness."
Lee-Sheng and Roberts and former members Ron Maestri and John Young, who is now parish president, testified March 3. That session ran long, prompting prosecutors to reschedule the remaining elected officials to appear before the grand jury Friday.
Those who had already testified were still required to provide documents related to the case, mostly e-mail messages and letters. Capella said council members had arranged for Council Clerk Eula Lopez to deliver the documents to the grand jury Friday.
Federal authorities have been investigating Broussard's administration since October 2009 when news media reports disclosed that Broussard's top aide, Tim Whitmer, co-owned an insurance agency that was doing business with at least half a dozen parish contractors.
The probe broadened to include the River Birch contract after it was disclosed that Whitmer's wife had a health insurance contract with the landfill.
Broussard and former Parish Attorney Tom Wilkinson also came under fire for letting Broussard's wife, Karen Parker, make $65,000 a year as a paralegal supervisor when a legislative auditor's report later alleged she was working in the Security Department, performing duties that should have paid her $22,000 less.
While no Jefferson official has been indicted, Broussard and Parker, now divorced, received target letters last month indicating they could be charged with conspiracy, wire fraud and misuse of federal money.
Both Broussard and Whitmer resigned in January 2010; Wilkinson resigned last March.
Paul Rioux can be reached at prioux@timespicayune.com or 504.826.3785.