DETROIT -

8:55AM Courtroom is slowly but surely filling up again on this fine, cold morning. First of the defendants in this today was Bernard Kilpatrick, very statesman-like, in a black suit and white pocket square, who entered the courthouse building around 8:30am with his lawyer John Shea.

Next in is contractor Bobby Ferguson closely followed by former Detroit mayor Kwame Kilpatrick. They must have received the light suit memo this morning because both are sporting suits in shades of browny beige.

Yesterday we finished the testimony of businessman Avinash Rachmale and heard from Darryl Latimer with the Detroit Sewerage and Water Department. Latimer is now deputy director of the DWSD but was formerly with the construction and grants department. Kwame kilpatrick's lawyer Jim Thomas will be finishing with his cross-examination of Latimer when the court session begins this morning.

9:05AM Judge Nancy Edmunds enters the courtroom. 

9:06AM Latimer back on the stand and Thomas cross-examining him. 

Thomas hands the witness an executive order that he is checking out. Executive order dated October 14th, 2003- number 2003-4. 

Witness says the document outlines the utilization and what percentages of Detroit-based businesses should be used, not just for the DWSD but the city of Detroit as a whole. Thomas driving home the point that city contracts were being directed to city-based businesses. 

33% of scoring had to be ascribed to local economic development says Latimer. 

The executive order also discusses purchasing ordinance. Signed by Kwame Kilpatrick. 

Executive order under Archer was slightly different in terms of percentage. Goal was 30% of Detroit-based business. 

Talking about $10 million contract, 1361, that had initially been awarded to Lakeshore that got cancelled and then awarded to Inland. 

Thomas said that Inland was already involved on a sewer replacement project on an as-needed basis. 

Thomas asks how many bidded on 1361. witness can't remember exact number. "It was several," says Latimer. 

"It's a very detailed procedure. The brass ring at the end is to get a work order," says Thomas. Latimer agrees. 

Thomas says that the expense of putting together the contract proposal at the beginning is something borne by the bidder and eaten if they lose. Correct says Latimer. 

Thomas says the Board of Water Commissioners reserves the right to cancel contract at any time, right? 

Thomas asks why they want to reserve right to reserve contracts. Latimer says when it's a project on as needed basis they want to have to right to cancel. 

Latimer says that on an as needed basis they can't say yes or no immediately, it depends on when the emergency arises. 

Thomas says then there is no telling when you are actually going to get that money? No says Latimer.  

9:19AM You knew Victor Mercado before he came to DWSD? From what I read says Latimer. 

When he came to DWSD you rose the ranks? Yes one level says Latimer. 

How soon after he came? Maybe 4 months or so says Latimer. 

He (Mercado) had a great deal of experience in private section? Correct says Latimer. 

Including process to inject oxygen in water supply? Yes says Latimer. 

And Detroit won awards? Yes.