3 years in a row won awards? Yes says Latimer. 

And you could talk to him about things but he made his own decisions? Yes says Latimer. 

Was he a smart manager? Yes says Latimer. 

Who decides how much money you get from budget? The director and then it's approved by city council says Latimer. 

So Lakeshore didn't get 1361, it got folded into an ongoing project with Inland Waters? Correct says Latimer. 

There were reasons for folding in the contract? Yes says Latimer. 

$10 million is allocated for the project? Correct. 

You can't use it anywhere else if it's designated for that project? Correct. 

Latimer says you can fund it out of capital but at the end of the years the auditors are going to correct you because it's not a capital expense. 

Mercado was a resourceful guy right? Yes says Latimer. 

And he'd go to Wall Street to get funding. For what kind of projects? Capital projects. 

Transferring 1361 to 1368 there were cross-savings weren't there? There could have been says Latimer. 

1325 became the new contract number when 1368 expanded to include the scope of 1361 for Inland Waters.

9:31AM Thomas and Latimer discussing the contract awarding process from inception through ultimate contract awarding. 

Thomas says so that even if Lakeshore thought they had the contract there were several other conditions that had to be met before they started the work? Yes says Latimer. 

Thomas says Judge Feikens and special administrators granted special powers to streamline this process? Yes says Latimer. 

Obviously Thomas making the point that the awarding contract process not clear cut and there are any number of reasons that it can be pulled at the last minute. 

Where you aware that Rachmale had met with Mercado on June 10th 2003? No says Latimer. 

Thomas shows Latimer email from Rachmale to Mercado about the meeting to refresh Latimer's memory. 

Thomas asks what happens to the $10 million dollars that had been allocated to 1361? It goes to the project. 

So it goes to 1368? Correct says Latimer. 

So you agree that by transferring 1361 to 1368 there was a cost-savings? Yes says Latimer. 

Inland had been doing this work before so they were probably aware of the needs of the area? Yes says Latimer. 

So Victor Mercado is saving the city money by transferring the project to Inland? Latimer agrees. 

Now we are going back to sister contracts 2014 and 2015 that were mentioned yesterday in terms of the change mid-process in terms of bid evaluation scoring.