The Shelbyville City Council on Jan. 8 voted to authorize a contract with Vertisoft to implement OpenGov permitting and licensing software, approving implementation, training and subscription costs through June 30, 2026 not to exceed $76,724.82 and annual subscription costs for the following four years not to exceed $47,889.69.
City Manager Scott Collins presented the business item, saying the software will modernize permitting, codes and planning functions. Councilmember Betsy and others framed the purchase as a multi‑department tool that will touch planning, building and public works operations.
City Attorney Ginger Shaulfner described a recent change in state law that will require local governments to create a public document justifying the cost basis of development fees over $250. "You will now have to create a document that justifies the cost basis," Shaulfner said, explaining the new requirement is effective July 1 and will make fee calculations and supporting records subject to public inspection and potential audit. She cautioned that while there is no explicit statute forcing fees back to the originating department, the law and auditing practice generally mean fees should be based on departmental costs.
Shaulfner also warned of audit and litigation risk if the city routinely diverts development fees into general revenues: "If you made a continual habit of that to try to get general revenues to fund police, fire or roads, we will eventually get slapped," she said, adding the state comptroller or a constitutional lawsuit could follow.
Councilmembers asked practical questions about contract terms and termination rights. A councilmember asked who would have authority to terminate the agreement; staff and council confirmed the city council would retain final authority and agreed to add language for an annual review window. The motion that passed was amended to specify a five‑year agreement via Sourcewell cooperative purchasing (Sourcewell Contract No. 060624‑420), subject to legal review and an annual review/notice period.
Councilmember Josh moved to approve the amended motion, with a second from Betsy. Lisa Smith conducted a roll‑call vote; the clerk announced the motion passed with five votes in favor and one opposed.
The contract approval concludes the council’s action to proceed with the OpenGov implementation; staff said the purchasing director will coordinate implementation and that the council will receive annual review opportunities under the amended terms.