Sometimes Mercado received phone calls during the meetings with DLZ. Witness doesn't know if they were related to contract.

Mercado was very happy with CM 2012. Staff had told him it couldn't be done and it was. Mercado personally told witness he was pleased.

DWSD seemed to like concept of project management. Looking to do all this work with this methodology. Witness references contracts 2014 and 2015. DLZ submitted bids for contract with Superior and Lanzo, they were D'Alessandro at this time. DLZ was not awarded contracts and they were very surprised to not get the contracts. They had done good job on the project. DLZ was best qualified firm to do the job says witness. Very surprised to not get one of contracts, either 2014 or 2015.

Letter dated February 1 2006 from Human Rights department with city of Detroit saying DLZ have been certified as Detroit headquartered-business and minority business. Certification good til August 5th 2008. Unless this period is extended by Human Rights, must renew 60 days before expiration. DLZ Michigan Inc Certificate clearly says expire august 5th 2008.

DLZ submitted this with bids for 2014 and 2015. Witness says he never saw letter revoking certification at the time. He has since since seen the letter. Witness heard during the proposal that their certification had been pulled.

9:51AM Witness says he never learned why they didn't get the contracts. Witness says he has never heard about the average cost method. Witness says that he assumed standard DWSD criteria would be used in the awarding of the projects to highest-rated firm with lowest costs. That's the usual way to do it. DLZ had a competitive price and "we were certainly the most qualified" says the witness.

Witness doesn't even know what average cost means. It matters to him what criteria the DWSD was using.

After CM 2012, witness had discussed with Mercado interest in upcoming projects. Mercado says he basically said "You've done good work so sharpen your pencil." Everyone was very happy with CM 2012 says witness.

In casual conversations to witness, he indicated he was under pressure to give Ferguson work and he was tired of it. Witnesses impression that Ferguson would call during witnesses meetings with Mercado.

Bobby is staring witness down.

9:57AM John Shea for Bernard Kilpatrick cross-examines.

Shea mentions about advisor used in connection used for city business. His name was Conrad Mallett? Yes.

He is a prominent Detroiter? Yes.

Known him for a number of years? Had relationship with him for a while? Yes. Had ties in Lansing.

Also knew that he had been prominent with Kwame's first election campaign? Yes.

He was Kwame's first COO? Correct.

His job was to act as liaison between your company and the city's central administration when you hired him? Yes.

You hired him for close ties to the administration? Yes.

Important to have effective communication with private or state? Yes.

So not unusual for you to hire someone who is an effective communicator? Yes.

Did you talk to an EPA agent in 2009? Yes.

Wasn't his primary contact miller? to tell you the truth I don't know.

Didn't you tell the EPA agent that Mallett spoke specifically with Miller? I don't know. i guess that's the name that came to me.

Still involved with business just not DLZ? Yes.

But you agree it's normal practice to have someone like Mallett as liaison? I would say not unusual.