Upgrade work at the intersection of Victoria Road South and Prairie Valley Road will begin in spring now that the contract for the project has been awarded.
On Monday, council approved the bid from H and M Excavating for the intersection work and the Prairie Creek storm water diversion project.
The bid was for $3,327,149.99 plus tax.
Municipal treasurer Ken Ostraat said the bid was the lowest of the five bids received for the work.
The plan includes sidewalks on both sides of Prairie Valley Road and the addition of bike lanes in the area.
Council also approved borrowing up to $1 million to extend the project from the Prairie Valley Road and Victoria Road South intersection to the west end of Saunders Crescent.
The borrowing is to be repaid within five years.
The total cost of the project is $3.8 million, with $2.99 million for the work already in municipal coffers.
Mayor Janice Perrino said the roundabout intersection alone could be completed at a cost of $2.6 million, but additional work, including sidewalks and bike lanes, are also necessary.
Other members of council agreed with the need for sidewalks.
“The traffic is never going to let up in that area,” said Coun. Martin Van Alphen, adding that Prairie Valley Road is classified as a highway.
Coun. Orv Robson, a former RCMP sergeant in the community, said the intersection at Prairie Valley Road and Victoria Road South has long been an area of concern.
“I’ve watched the intersection for 20 years and it is the most congested area in Summerland,” he said.
Perrino said the borrowing can be done without a tax increase, but this will also mean postponing some other capital projects until the money has been repaid.
The construction work is expected to begin in early spring, with the majority of the construction to be done during 2013.