During the break Kwame Kilpatrick was down in the main lobby of the of Courthouse as a large group of new flag waving American Citizens emerged from being sworn-in, Kilpatrick actually welcomed several of them.  I'm not sure if they knew him. 

Back in Session - A memo from Victor Mercado to Darryl Latimer states: "cancelling CM-1361 will not increase cost or time of the project."   Latimer indicates was not the case.  

We are now seeing score sheets from the DWSD which indicate LES was the recommended contractor for CM-1361 - a document signed by Mercado and several other DWSD Engineers.  DWSD drafted a letter on April 28, 2003 indicating approval of LES as the contractor for CM-1361 which was not signed or sent to LES. 

May 12, 2003 board of water commission document with the word "pulled" across the CM-1361.

11:57AM

Latimer states he prefers the standard cost method in evaluating bids, because it provides the best value for the people of the City of Detroit.  That process was not used for CM-2014, ultimately this rise in cost was passed on through higher water rates.  The cost of corruption - directly to the public.  No more questions. 

Re-cross: Thomas declares he sees a train, and its coming right at him! 

In reference to CM-1361, Thomas argues there is a cost savings to have contractors who are already out in the field, stay on the project.  There was a justification because it should have saved money - however, it ultimately did not.  Thomas argues that is because of the nature of underground work, but the spirit was correct. 

The cost of cancellation; the DWSD did not hire more people or have to work longer hours because of the contract cancellation.  There was a cost to LES, but that is the "cost of doing business".  LES had government work and is doing fine now. 

As to the text message: there is nothing inappropriate about other people having conversations about that contract. 

Many contracts get cancelled,  Rachmale never complained or filed a lawsuit over the cancellation the contracts.  

Kilpatrick has no control of City Council, we all no that. 

DLZ was not a Detroit Headquartered Business - their headquartered in Columbus Ohio.  They have offices in Michigan but that is not the same.  It was a lie to get the contract.  Pulling their certification was correct. 

11:55AM

Judge calls for a side-bar

Victor Mercado was in a position of authority and everyone will not always agree with every decision.  Ten years later we can try and second guess but, he (Mercado) was trying to save money for the City and bolster Detroit Headquartered Business.  

Not exactly a question, but Thomas follows it up with "would you agree?" 

Five minute break.

12:13PM Back in session - Rataj back for re-cross.  There are still many steps in approving a contract, and the Mayors Office has nothing to do with approval of DWSD Contracts. 

12:15PM Chutkow calls for a side-bar 

12:17PM we're back, February 19, 2003 e-mail from Mercado to Latimer looking for contracts that could be cut.  Suggesting 1387 was a result of "cost cutting measures." Although, history shows it still cost over $10 million.

No more questions. 

Prosecution calls Kim Harris, worked in purchasing for the City of Detroit and the Human Right Department. 

Michael Bullotta asks about the Human Right Department, they are the office that certifies contractors.  In the past the City of Detroit had an equal rights ordinance that required 25% of construction work should be performed by minorities, and 5% by woman.  

That ordinance was struck down, and it was changed to Detroit Based Business.