Diehl Enterprises Awarded City Cleanup Contract For Ambassador Hotel
The Salina City Commission approved a city cleanup contract with Diehl Enterprises after residents raised questions about the company’s previous involvement with demolition debris connected to the former Ambassador Hotel site.
During public comment, resident Tony Johnson questioned why Diehl Enterprises was being recommended for another city project after prior concerns involving the Kansas Department of Health and Environment. Johnson said records and correspondence showed Diehl Enterprises had been involved in cleanup and disposal planning related to the Ambassador Hotel demolition material.
Johnson told commissioners that KDHE later directed Diehl Enterprises and city staff to stop demolition, sorting, and hauling activity after concerns were raised about unsorted debris being dumped at a property off Cherry Street. He said the material came from the Ambassador Hotel site and reportedly included items such as drug paraphernalia, human waste, and other potentially hazardous materials.
Johnson argued that the company’s compliance history should be considered before awarding another public contract.
“My question is this: Why is a contractor associated with this incident now being recommended for this project again, this time on our dime?” Johnson said during the meeting.
Another resident also criticized the recommendation, saying Diehl Enterprises had already been involved in a situation where work was stopped and questioning whether the city should award the company additional work.
City staff responded that they did not know whether KDHE had taken punitive action related to the prior matter. Staff acknowledged there had been concerns about how material from the previous site was dumped, but said the new contract requires waste from this project to be taken to the landfill.
Staff said all bidders were aware of the landfill requirements and disposal costs. The project is expected to involve at least 200 loads of material, with landfill dumping fees estimated at a minimum of $360,000.
Commissioners also asked whether the contract amount was a not-to-exceed figure. Staff said the contract is for completion of the cleanup and is not based on a per-load or per-unit structure. In other words, the company is being paid to finish the job, not to bill the city load by load until everyone loses the will to attend meetings.
Mayor Mike Hoppock recused himself from the discussion because of a business association involving one of the owners of the company. City staff said that relationship was believed to be a newer situation and not the same circumstance that existed during previous city work involving Diehl Enterprises.
Commissioners also said they are not involved in opening bids or setting bid prices before recommendations come forward. One commissioner said the commission sees the recommendation when it comes to them and can either accept or reject it.
A representative of Diehl Enterprises was present at the meeting and offered to answer commissioners’ questions.
The commission approved the contract with Diehl Enterprises.