Did you have an understanding that Ferguson was bidding with other company? Yes.
Is that why you did not list him on the project? Yes.
Looking at 2014 contract and scope of work? Rachmale reads about completion of deleted contract WS 671.
Did you end up doing any work on the contract that was closed? We did not do any work on 671 but we accommodated city by completing work on 2014.
Why did you agree to do this for the department? Because we had a longstanding relationship with the department.
Looking at Lakeshore Engineering Timeline of contracts. Total contract value of more than $157 million.
Rachmale says that 92% goes to subcontractors and materials. Then 8% is left for Lakeshore. Of that, 4% is left for profit and then after taxes it's only 3%. So every year they are making 10 to 15 million annually from those contracts. So that is only 3% towards the profits of Lakeshore's business.
So 8% is really only 12 to 13 million total revenues for contracts that go to Lakeshore.
10:00AM Did Lakeshore do its work for 849? Yes says Rachmale.
Contract 807 was under what administration? Under the Archer administration.
Is that the contract that you paid Ferguson a 5% change order fee? Yes says Rachmale.
Did you do the work for those contracts? Yes.
So you didn't get no show payments? No says Rachmale.
Your company has grown and now do work all over the country and the world? Yes says Rachmale. In 1997-1998, started to get more work in the city. Between 2002 and 2005 had less business in the city because of the politics going on. So started to focus more on the federal side.
"We 're the loser then, we're the losing during and we're the loser now," says Rachmale.
Rachmale says that the company's involvement in the Kilpatrick controversy has cost them money.
Rachmale says they have had a really hard time the last few years.
In any other part of the country have you had to pay because you were afraid contracts would be cancelled otherwise? No says Rachmale.
10:07AM Jim Thomas from crosses.
1361 and 1387 were 2 contracts you talked about for $5 million and $10 million? Yes says Rachmale.
And they were for as needed sewer repairs says Thomas? Yes says Rachmale.
And as needed sewer repairs could be canceled at any moment? I don't know about that says Rachmale.
You sent in a bid proposal and it was reviewed and award was made? Yes says Rachmale.
The city puts aside money for sewer repairs? Yes says Rachmale.
Doesn't the city reserve the right to cancel as needed repairs at any time? Yes says Rachmale.