Change order #4: $15.6 million. Total contract amount $55,615,183.96 Original was $13,486,655.
Witness says this number of change orders is unusual. "Gives impression of impropriety even if no impropriety was going on." says witness.
12:25PM Judge Calls for a break.
12:33PM Judge back in before everyone is back at the defendants' table.
12:34PM John Minock for Victor Mercado cross-examines. Congratulates the witness on his stamina.
Asks witness to tell of educational background. BA in Business Administration from the University of Michigan. Had been in his current position for 10 to 12 years. Interviewed by federal agents half a dozen times. There were times that the witness did not know answer to questions, so the investigators would show the witness documents including text messages that had nothing to do with him.
Minock says did they ask you to draw conclusions? No.
But did you draw conclusions? Could be.
The city of Detroit's building of water system enabled the growth of suburbs? That's right says witness.
The budget is roughly 1.2 billion on an annual basis? Yes.
Probably $800 million towards replacing ageing infrastructure? Yes.
Sometimes excavating they'll even find 18th century water main? Yes.
When contractors make a bid, it's an estimate they really don't know what's there until they get there? Yes.
But the department not equipped to handle major construction projects? Correct.
That's why you contract out? Yes.
From 2002 to 2008 you said there were about 40 to 60 contracts for $2.7 billion? Yes.
Witness says he doesn't know how many contracts are running on any given year- about $4 billion.
Contracts and Grants a separate department? As we speak yes.
Your director reports to deputy director of department who reports to director? Yes.
So the department is huge and there is a significant division of labor? Yes.
So truly what you do is administration? Yes.
In 2002, Jaclyn Jordan was your supervisor and then it was Gerard Latimer? Yes.
There are different kinds of contracts that the department has to administer? Yes.
For what would you hire consultants? Design work, legal and financial services.
Talking about the different designations. Witness says CS is consultant services; WS is Water Systems, construction contracts for water systems to build facility. CM is prefix for Construction Management.