A $27 million project to replace area traffic signals with the latest models and add dynamic message boards to help ease traffic flows, members of the City Council were told.
Volkert and Associates has been chosen to design the system at a cost of $2.5 million.
It will include 377 signalized intersections, 70 traffic surveillance cameras and 70 dynamic message boards.
Lee Norris, deputy administrator of public works, said federal funds should be available to cover the design cost as well as the installation of the new equipment.
He said the Volkert planning should lead to the issuance of up to 10 separate contracts involved in setting up the new traffic flow system.
The planning is expected to take 18 months.
Mr. Norris said the system will be designed so that when there are accidents on the freeway that more efficient detour routes can be utilized.
Chattanooga will operate the "mesh" headquarters for the system. Governments will pay an operations charge of $19.99 per month per intersection.
Officials said many of the current "red lights" are some 30 years old and in need of replacement with new devices that are part of a computerized system.
City Councilwoman Carol Berz questioned why Chattanooga - "the environmental city" - is spending so much money "on increasing our carbon footprint" rather than on alternative transportation.
Mr. Norris said, "Buses are large cars and cars are going to be around for awhile."
He said when traffic moves more smoothly, then there are less emissions from idling cars and trucks.
Volkert also carried out a $150,000 traffic study around the new Volkswagen plant.