City Awards Contract for Butt Road Intersection Upgrade Despite Budget Shortfall

West Kelowna, May 13, 2025 — West Kelowna City Council has approved a $3.24 million contract with BC General Contracting Inc. (BCGC) to complete major improvements at the intersection of Old Okanagan Highway and Butt Road. The decision was made at the May 13th council meeting, despite the bid exceeding the city’s allocated budget by over $300,000.

Project Scope

The infrastructure upgrade, set to begin in late May 2025 and wrap up in the fall, will include:

• New left and right-turn lanes

• 350 metres of sidewalk and 640 metres of bike lanes

• 174 metres of new water main

• Stormwater drainage improvements

Coordination for the project involved both Westbank First Nation (WFN) and MoTT, who have expressed their support.

BCGC was the sole bidder in the tendering process. While their proposal came in above the $2.9 million budget, which included $600,000 from the Ministry of Transportation and Transit (MoTT), staff recommended the award based on BCGC’s proven track record with the city and their compliance with project specifications. The $849,761 budget shortfall will be covered using funds from the city’s Pedestrian Improvements Program.

Funding and Budget Concerns

While MoTT has committed $600,000, this falls short of the expected 25% share for the provincial ministry. City staff have not provided clarity on why certain components—specifically Active Transportation Infrastructure and water main work—were excluded from MoTT’s funding contribution.

Similarly, WFN, a project partner, will contribute just 13%, also below the anticipated 25% share.

The budget includes a 10% contingency—considered low for a project involving significant underground utility work. West Kelowna’s engineering department flagged this as a potential risk.

Traffic Disruptions and Environmental Impact

To facilitate deep utility installations, a full intersection closure will be necessary, with traffic detours routed via Reece, Bering, and Louie Roads.

In terms of environmental impact, seven mature trees along Old Okanagan Highway will be removed to make way for the redesigned intersection.

Public Communication

The city has committed to a comprehensive public outreach campaign, which includes:

• Direct mail notifications to nearby residents and businesses

• Updates through newspapers, the city website, social media, and electronic road signs

• Ongoing engagement with WFN and local stakeholders

The intersection upgrade is a key infrastructure initiative aimed at improving traffic flow, pedestrian safety, and long-term utility service in the growing West Kelowna community.