The University of California-Davis and the California Department of Transportation (Caltrans) have participated in a Precursor System Analysis (PSA) of automated construction, maintenance, and operation requirements for Automated Highway Systems (AHS). Based on initial discussions during a kick-off meeting with the Federal Highway Administration (FHWA) and the contract monitors from the MITRE Corporation, research for this PSA has been focused on a specific AHS subsystem: the discrete magnetic marker system that has been developed by researchers in the Partners for Advanced Transit and Highways (PATH) research program. This report documents the preliminary design of a prototype system for the automated installation of discrete magnetic markers for use as a reference system for an AHS. By focusing on a specific technology that has shown significant promise for application in AHS, the current PSA study was able to provide more concrete results and conclusions. The procedures presented here can be similarly applied in the design and analysis of automated systems for the installation and maintenance of other forms of AHS infrastructure in the future.