9:01AM was when Kwame sent the last text exchange and 9:18am is when Ferguson replied. 

There are phone exchanges on September 7th 2004 between Mercado and Ferguson at night for 7 minutes as indicated by the phone records. 

Now looking at email from Mercado's account. To Mercado and Fujita from an executive assistant to Mercado. Dated November 21st 2005. Subject is forward SAO (special administrator orders) with the mayor. Those orders refer to special powers of mayor on water contracts. 

Admin orders with mayor. First one is amendment #4 on CS 1368 on August 29th 2005. This was the Inland amendment approved by the mayor.

Email from September 17th 2005 from McCann to Dennis Oszust about amendment #4 asking about outstanding issues with Bobby. Answer is that it is held up because of an issue with Bobby. This is about 3 weeks after the mayor received request for amendment.

Another email from Dennis Oszust on Tuesday October 11th 2005 to McCann. Says that amendment is held up until FEI is satisfied. Refers to QK- McCann's people's designation for Kwame.

Judge asks Chutkow to slow down. Defense lawyer Gerald Evelyn just stood up and asked for 5 minutes. Oh no. Evelyn books out of the courtroom though he doesn't look like he is struggling the way he was more than a month ago.

9:55AM Evelyn just walked back into the courtroom and sat back down next to Ferguson. 

We were just discussing the amendments to contract 1368 for Inland. Amendments are typically done to increase payments to 1368. 

Judge just tells Bernard's defense lawyer "you need a message. Me too." 

Jury is back in and Chutkow continues on the amendment to 1368. Oszust met with Ferguson in December 2005 along with McCann. Ferguson had requested the meeting. 

Inland Waters paid Ferguson for his work on the sinkhole and then paid him an additional $350,000. 

Looking at DWSD form on 1368 amendment #4. It's basically like a routing slip that is signed off on by various DWSD officials. Prepared on August 12th 2005. This is prepared by one of Daryl Latimer's staff. Sent to mayor's office on August 29th 2005. 

Next page is the cover page for amendment #4 followed by the Special Administrator Order 2005-33. That means it was the 33rd special order sent to mayor in 2005. This document is signed by Kilpatrick as special administrator. It basically gives him full authority to grant contracts. authorizes Victor Mercado to enter into contract on 1360 amendment #4. It is signed December 23rd 2005. So obviously Kilpatrick had full authority on this contract contrary to what the defense was arguing last week. 

Mercado also signs this but there is no date next to his signature. Chutkow asking if there is any acknowledgement of when Mercado received it. City acknowledgement of receipt is January 12th 2006 by Victor Mercado, 3 weeks after mayor signed special administrator's order. 

On February 3rd 2006 finance signs it. The law department signs February 13th 2006. City council approves it on April 19th 2006. 

Now we are looking at chart created by the witness on finance records for 1368. FEI revenues on this contract were $20.8 million. On the sinkhole FEI made $3.1 million. 

Now a spreadsheet from Inland Waters internal financial file. Has a breakdown of contractors, subcontractors, billing and invoice amounts. Mentions william McCormick and Associates, also a minority subcontractor who was on initial bid. They made more than $308,000 on 1368. Superior Construction made $448,990.01 on excavation for 1368, also another minority business. FEI not listed as minority excavator on 1338 initially. FEI made: on point repair, more than $11,360,000, the next line item is Ferguson lining what they thought Insituform paid, more than $9,400,000, 15 mile repairs more than $3,000,000. 

Now looking at witness records for DWS 864 (east side contract) joint venture between Inland and Xcel, Ferguson's company and sub-contractor was FEI. Xcel made $191,000, FEI received $4.6 million in revenues. 

10:20AM The witness reading about mayor being chief executive of the city and is responsible for city branch of executive government according to the city charter. 

Financial report for 2002 followed by city organization chart dated June 2002. Witness obtained documents off of the city of Detroit website. 

Looking at comprehensive annual report for city of Detroit for fiscal year ending in June 2002. Kwame Kilpatrick is mayor. Looking at organizational chart for June 2002. Shows that all the agencies report to the city of Detroit. Line of different agencies below the mayor. 

Chutkow and the witness are methodically going over all the different departments reporting to the mayor. Budget, finance, law, human rights amongst others all report to the mayor. The mayor has the power to remove directors of all the departments reporting to him. 

Chutkow asking about Kim Harris who was chief compliance office. 

Now talking about DWSD. Headed by Board of Water commissioners appointed by the mayor and they in turn appoint director and deputy director who answer to the Board.