A high-tech system that would automatically call out bus stops has been rejected by Ottawa city council.

Council voted Wednesday not to approve the $17-million SmartBus system from Plainview, N.Y.-based Clever Devices after councillors were briefed by a legal expert at a closed session. They also rejected proposals to approve only part of the deal.

The vote came two weeks after Bell Canada sent a letter alleging the deal came out of an improper procurement process and the company would "consider all of its remedies in law and in equity" if the city moved forward with it.

At issue was the fact the deal with Clever Devices includes not just the stop-calling system, worth $6.72 million, but also:

• A wireless GPS system that would help the city schedule buses and let passengers track buses using their cellphones or the internet.
• A system to monitor a vehicle's mechanical condition.
• The ability to send out system-wide public announcements from a central location.

Bell alleged that those applications were not included in the city's request for proposals and Clever Devices was the only company that had the opportunity to bid on them.

Council did vote in favour of reconsidering the system at its next council meeting on November. However, it will only revisit the issue if the councillors vote in favour of doing so at that meeting.