The government is working to establish Rachmale and Lakeshore as experts in their field and one of only two Detroit companies in the area prior to the Kilpatrick administration that could accomplish high tech sewer work in the city.

11:05 AM Chutkow direct on Avinash Rachmale - Proposal for CS-1361 shows LES was 100% Detroit Based Business.  Partnered with Lanzo who was one of the few companies with the expertise to install the outfalls lining in February 2003.  Further documents demonstrate the DWSD (Victor Mercado) approved LES for contract 1361.  

Rachmale testifies Bobby Ferguson asked Hardiman for 25% of CS-1361.  Not only was Ferguson not a part of the bid proposal or base contract, Ferguson was actually partnered with  inland waters, a competitor on the 1361 bid.  

Rachmale offered 10% of the contract which would require the other contractors on the bid to loose some of their work. 

Hardiman indicated to Rachmale, after a meeting with Ferguson, that Ferguson was not happy with 10%. 

When asked why Rachmale offered anything to Ferguson when he wasn't on the proposal team, his response was Ferguson had many contacts with the Kilpatrick Administration. 

Time past, and the contract seemed to be stalled - Rachmale met with Bernard Kilpatrick who asked to be retained by LES.  He paid $2,500 to Bernard and got nothing in return. 

11:28AM Side bar - hearsay issue again.

CM-1387 ($5 million) contract which was bid around the same time as CS-1361 ($10 million) was pulled by the DWSD. 

Rachmale was dumbfounded by the cancellation of 1387 but was still hopeful because CM-1361 was approved.  LES was a small company in 2003 and it was a huge loss.

June 11, 2003 Rachmale wanted to meet with Victor Mercado over the projects, but two week later Rachmale received a letter from DWSD (Victor Mercado) cancelling 1361. 

LES had hired people for these projects and it was "devastating" to loose the contracts. 

Rachmale was "scratching his head" over the loss and couldn't even come to work for a while.

Rachmale considered leaving Detroit, but stayed because this is where he landed when he came from India and he went to school here.

Rachmale regrouped, decided he didn't have the right people on his team when he found out the contracts were awarded to Inland Waters.  Bobby Ferguson was on the Inland Waters Team, so Rachmale decided to team with Ferguson.

11:52 AM - 5 min break.

12:06 PM We're back - Judge advises the jury on hearsay again. 

Rachmale explains it was his feeling that if Bobby Ferguson was part of his team, he would not have lost the two bids 1361 and 1387.  He further explained he didn't need Ferguson for his construction expertise, but rather his connections with the Kilpatrick. 

So, for the next project Rachmale and Hardiman discussed including Ferguson.  

Along came CM-849 and LES offered FEI a sub contractor role along with Lanzo.  Ferguson wanted 1/3 of the contract which Rachmale explain is "unusual" for an excavator. 

Normally, excavators get only around 20% - and LES could  have used Hayes Construction.   

Rachmale agreed to the high amount because of the loss of 1361 and 1387 ($10million; $5million.)  

LES never used Hayes Construction again (which was a minority owned Detroit Based Business) and ultimately Rachmale testified Hayes went out of business. 

Rachmale did not feel FEI's construction expertise and experience did anything to improve LES resume or capabilities. 

The project stalled because Ferguson wanted "line items" that were designated for Lanzo Lining.  LES mediated the dispute between the subcontractors and it was agreed Ferguson would get $1 Million as a "consultant" to Lanzo.