Letter from Mercado to the Board of Water Commissioners about Agenda of August 25ht 2003. Authorizes increase of $10 million to 1368. 

Will you agree that this amendment #1 of $10 million was the rolling in of 1361? Yes. 

Would you agree that the rolling in of 1361 was a cost saving measure? Correct. 

And the cancellation of 1387 was a cost saving measure? Correct. 

So 1368 started out as a $50 million contract and then with rolling in became $60 million contract? Correct. 

Looking at breakdown of contracts 1325 and 1368. 1325 was originally valued at $12 million and ended up as $27 million. 1368 was initially $50 million dollars and after 5 amendments ended up at $138 million. 1368 was completed 2 years later than originally anticipated. So Inland Waters total revenues ended up at $138 million. 

12:30PM Defense lawyer Gerald Evelyn and Ferguson confer as Rataj shows prosecution a document. 

Looking at subcontractor approval request for Willie McCormick and Associates. McCormick has been mentioned before in this trial as one of the other minority contractors. 

Form is seeking to add McCormick as a subcontractor on 1368 asks Rataj? Not necessarily add says Latimer. Could have been already on the contract but the form needs to be filled out before any work is started. 

Another subcontractor approval request for Superior on 1368 on April 24th 2003. 

And last but certainly not least, same subcontractor approval request from Inland Waters for Ferguson Enterprises. 

Looking at cover letter from September 23rd 2004 regarding Special Administrator's Order. this is the one that allows the special administrator, in this case then mayor Kilpatrick, the right to award a contract without going through city council. 

This had to do with dealing with a terrible sinkhole in 2004 says Rataj. "Houses were ready to fall to the center of the earth!," says Rataj. Latimer affirms it was so. 

The order allows Mercado to award contract 1368 to Inland Waters for the stabilization of the Romeo-Arm of Oakland-Macomb Interceptor sinkhole. Signed by Kwame Kilpatrick. 

Rataj says this was on an emergency basis and it took over a year to fix that sinkhole? Correct. 

"It took at least a full year to fix that mess, " says Rataj. Correct. 

12:45PM Looking at amendment #3 to contract 1368 for $22 million. 

So amendment #2 was on an emergency basis and amendment #3 went through city council but both were for the sinkhole? Correct says Latimer. 

Another amendment, this is #4 for $12 million to Inland Waters, dated April 19th 2006. Done through city council. Still for the sinkhole. 

12:49PM Rataj says this is a good place for me to stop though I do still have more. Judge dismisses jury. 

Michael Bullotta for the government says they have a pint to take up. Judge Edmunds says we'll do it tomorrow morning at 8:45AM. Edmunds also reminds the court to remember that naturalization ceremonies take place Thursdays thus long lines to enter the courthouse. So get here early!

About the author:

Alexandra Harland is a Princeton undergrad and has a masters degree in International affairs with Columbia. A Montreal native, she worked with the Daily Telegraph newspaper for a few years before transitioning to TV, when she worked at ABC News with Peter Jennings. Alexandra has also worked in newsrooms in both Detroit and Boston.