Latimer says a performance bond is required by state law. Put in place to protect the party awarding contract. 

So Inland should have provided $50 million bond? Yes. 

But they wanted to provide 2 $25 million bonds but not simultaneously? Yes. 

Kathleen Leavey still DWSD director at this point? I believe so says Latimer. 

What's a payment bond? Latimer says it protects the subcontractors to ensure they get paid by contractor. 

Another memorandum from Inland Waters on February 11th 2002. Providing city tax payment information for Inland to DWSD. 

Rataj says this is all to prove how many steps are necessary to go through before a contract is awarded. 

On February 14th 2002, Ozust of Inland Waters signs 3 of 4 pages on contract 1368. Rataj says this still doesn't mean they have been awarded the contract? Correct says Latimer. 

11:55 AM Another document from March 3rd 2002 before Mercado is director. It's a cover sheet for an invoice. Inland Waters is billing DWSD $291,250 for the period between January 30th and February 28th 2002. 

Does it look to you that Inland had already started work on the project? Possibly says Latimer. 

Judge calls for 5 minute break. 

12:09AM Rataj continues this lengthy cross examine. Still wondering where we are going with the 1368 contract with Inland. 

Internal DWSD memo from April 1st 2002 saying that Inland can't be paid the submitted invoice because they haven't formally been awarded the contract yet. 

Rataj holding formal 1368 contract which he hands to Latimer to review. 

Showing that the contract was signed and approved by city council on June 26th 2002. So that's the official date Inland Waters was awarded contract 1368 asks Rataj? Correct says Latimer. 

And the mayor's got nothing to do with this process does he? Yeah he's got nothing to do with this process says Latimer. 

Looking at DWSD memo from Latimer on July 16th 2002 to confirm meeting on July 19th to get started on 1368.

 Now looking at sign up sheet for that start work meeting on July 19th 2002. Some individuals from DWSD contracts and Grants as well Ozust from Inland who we will hear from later on this case. 

Now looking at official letter from DWSD to Inland Waters telling them they have been awarded the contract on June 26th 2002 and the start date is July 19th 2002 and the completion date is 3 years later on July 19th 2005. Letter is dated July 16th 2002 and is signed by Victor Mercado. 

Internal memo from Mercado to Latimer dated July 15th 2003. It states that contract 1361 will be cancelled. 

Lakeshore Engineering never awarded 1361? Correct says Latimer. 

And never awarded contract 1387? Correct. 

Because they never went through the lengthy process like with 1368? correct. 

Mercado was trying to save the city money by rolling 1361 into 1368? Correct. 

Letter from July 28th 2003 to Avinash Rachmale from Mercado stating that 1361 had been cancelled.