Witness said he paid Xcel "because it was brought by Bobby Ferguson and we were not going to do anything to upset bobby."
Witness says he was shocked they had paid this much money. Witness told Ferguson that he would call a parasite. Ferguson would call Hardiman names and Hardiman would reciprocate. "At the end of the day, they were still consultants," says Hardiman.
Change order on the 2014 contract. Development on Fox Creek needed new water main lines. Lakeshore had eastside contract so they added it to Lakeshore contract. A & H had those 7 streets so they were going to do it. When Ferguson heard of the change order he said those were his streets. Hardiman told him he was crazy.
In 2007, Ferguson and Hardiman had pretty open conversations but Rachmale was much more cautious because of the 2 cancelled contracts. At the end of the day, Ferguson ended up with 4 streets and Hardiman got 3.
Hardiman didn't want to do it but Rachmale told him to go back to it.
"$10 million. $5 million," intones the witness.
Willie McCormick was on Lakeshore subcontract and witness says they could have done job on Fox Creek. Ferguson would threaten to get his contract stopped. Ferguson would call Rachmale who would come back to Hardiman and say "Tom, I'm not willing to piss Bobby off."
Ferguson repeatedly call Hardiman crazy and tell him he would get contracts stopped. Ferguson would never tell witness how he would stop the contracts.
12:34PM Looking at a series of checks from A & H to Ferguson Enterprises. Also relate to 2014 contract. For Fox Creek
1. check from A&H to Ferguson Enterprises on August 17th 2007 for $1,222,916.72. signed by Hardiman
2. check from A & H to FEI on November 2 2007 for $50,837.79. signed by witness.
3. check from A & H to FEI on December 13 2007 for $21,820.50.
4. check on February 1 2008 for $58,000.
5. check on December 5 2008 for $65,401.66
6. Check on January 14 2009 for $18,328.06.
Tally on the checks to FEI on Fox Creek 4 streets from January 1st 2007 to November 2011. Total amount paid is $1,437,304.73.
Witness doesn't know how much paid Ferguson Enterprises or Xcel on 2014.
Witness doesn't know if Ferguson put up performance bond or insurance on this job.
12:43PM Chutkow talks about contract DWS 865. Looking at bid proposal for 865. For eastside city of Detroit sewer repairs contract for inspection and in place rehabilitation of sewers and water mains.
Team members on proposal include Lakeshore is the prime, D'Alessandro Contracting, Lanzo Lining, Superior Engineering, A & H, Cole Financial.
A & H is a DBE, DHQ (Detroit-Headquartered business) and MBE (Minority business).
Cole financial is a woman-based company since 1983.
They asked Ferguson to be on the team. He was on Inland's team. He was exclusive with Inland. He didn't want to be on the team. On the proposal to DWSD, Ferguson was not listed. Once it was won, Ferguson wanted to participate. Ferguson had some participation even if he was not on the proposal.
After contract was won, Lakeshore entered into sub-contracts with D'Alessandro Contracting. Hardiman can't remember if Ferguson was doing work in the beginning. but at one point, he requested to do the dig ups. It was a verbal agreement that they had that he could do a certain percentage of the dig ups. This was when the contract was up and running.
Hardiman talked to Ferguson about D'Alessandro doing the work. Hardiman was out of town and got a call from D'Alessandro saying that Bobby was on site and told D'Alessandro to leave. Hardiman told Ferguson to let D'Alessandro finish. Ferguson said absolutely not. D'Alessandro had to stop and Ferguson took over.