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SERVICE AGREEMENT -SALARY ADMINISTRATION PROJECT
THIS CLIENT SERVICE AGREEMENT ("Agreement") is made by and between HR Affiliates
Outsourcing and Consulting Services, LLC, ("HR Affiliates"), a Kentucky corporation with its principal
place of business at 1930 Bishop Lane, Suite 111, Louisville Kentucky 40218; and The City of
Jeffersonville, Indiana, ("Client") located at 500 Quartermaster Court, Jeffersonville, Indiana 47130.
SERVICES PROVIDED AND FEES: HR Affiliates will provide consultative services as outlined on
Attachment A.
RELATIONSHIP OF PARTIES: RELATIONSHIP OF PARTIES: HR Affiliates is an independent
consultant to Client. Client acknowledges that it is the contractor for the independent consultants
involved in this project and that HR Affiliates has no direct relationship with contractor. HR Affiliates
will not exercise any control or authority over the employees of Client involved in this project. Client
waives any right it may have to claim that HR Affiliates is an employer or contractor for any purpose.
DEFAULT: An event of default shall include, but is not limited to: a) Failure of Client to pay a fee when
due; b) Violation by Client of any provision of this Agreement, which violation is not cured within 30
days of written notice from HR Affiliates to Client specifying the violation; c) Violation by HR Affiliates
of any provision of this agreement which violation is not cured within 30 days of written notice from
Client to HR Affiliates specifying the violation. Upon an event of default and expiration of the applicable
cure period without the violation being cured, the non-defaulting party shall have the option, in its sole
and absolute discretion, of immediately terminating this agreement. In the event such option is exercised,
this Agreement shall terminate on the date written notice of same is delivered to the defaulting party.
TERMINATION: Upon termination of this agreement, Client shall be entitled to retain all documents
and reports prepared for and previously delivered to the Client by HR Affiliates. Client agrees to use
such documents and reports only in connection with the operation of its business.
CONFIDENTIALITY: The parties agree that they may disclose/share/ex-change information in
connection with this Agreement that may include information about each other's operations, methods,
plans, strategies, products, pricing, customers, employees, independent contractors, assets, and other
confidential and proprietary information (hereinafter collectively called "Confidential Information").
Obligation of Confidentiality. The parties agree that (a) Confidential Information of the disclosing party
will be held strictly confidential by the receiving party and the receiving party will not disclose
Confidential Information, in whole or in part, to any other party except as provided herein; (b) each party
will take reasonable measures to protect the disclosing party's Confidential Information and those
measures shall not be less than the measures the receiving party takes to protect its own Confidential
Information; (c) Confidential Information will not be used, in any way, to gain or allow others to gain a
competitive advantage; (d) all material exchanged under this agreement and any copies made of any such
materials will be returned or destroyed upon request of the other party; and (e) disclosed information
continues to be subject to this Agreement for two years following the date of disclosure.
Non-Disclosure. The party receiving Confidential Information agrees not to disclose, publish or
disseminate Confidential Information of the disclosing party except to: (a) the receiving party's
employees, stockholders, or legal counsel who have a need to know and only if those employees,
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stockholders, or legal counsel -have a written agreet~rlent with the receiving party or with the disclosing
party sufficient to require those employees, stockholders, or legal counsel to treat Confidential
Information in accordance with this Agreement; or (b) a third party with the disclosing party's prior
written consent and only if the third party has a written agreement with the receiving party or with the
disclosing party sufficient to require the third party to treat Confidential Information in accordance with
this Agreement.
Excluded Information. No obligation of confidentiality applies to Confidential Information which is: (a)
already known by the receiving party without any obligation of confidentiality, (b) publicly known or
becomes publicly known through no unauthorized act of the receiving party, (c) rightfully received from a
third party without obligation of conftdentiality, (d) disclosed without similar restrictions by the
disclosing party to a third party, (e) approved by the disclosing party for disclosure, or (f) required to be
disclosed pursuant to a requirement of a governmental agency or law so long as the receiving party
provides the disclosing party with timely prior written notice of such requirement.
NON-SOLICITATION: Both parties agree not to solicit, offer or promise employment or employ any of
the other party's personnel or independent contractors or to contract for the services of any of those
individuals during the term of this Agreement and for a period of one (1) year following termination of
this Agreement for any reason, unless written consent is received from the other party.
LIMITATION OF LIABILITY: Client agrees that HR Affiliates shall not be responsible for any
consequential or incidental damages of any kind or nature.
ARBITRATION: HR Affiliates and Client agree that all claims, disputes and other matters in question
between HR Affiliates and Client arising out of, or relating to this Agreement, shall be subject to
arbitration under the then existing Commercial Arbitration Rules of the American Arbitration
Association. Judgment upon the award rendered may be entered in any court of competent jurisdiction.
The cost of such arbitration shall be borne proportionally in relation to fault, as determined by the
arbitrator. The parties agree to be bound by the decision of the arbitrator. The parties agree to choose a
single arbitrator from the American Arbitration Association for dispute resolution.
OTHER PROVISIONS: This agreement, including exhibits, supersedes all prior written or oral
agreements or understanding between the parties concerning the subject matter contained herein. The
provisions set forth in Administrative Fee, Termination, Client Information, HR Affiliates Information,
Indemnity and Arbitration shall survive the termination of this Agreement. In the event of an actual or
threatened breach of any of the restrictive covenants of this Agreement, the parties agree that money
damages may not be an adequate remedy and that the non-breaching party shall be entitled to injunctive
relief to prevent the continuation of an actual breach or to avert a threatened breach.
THIS AGREEMENT is duly executed this ~ day of NAB ~ , 20 l d
FOR CLIENT
BY:
TITLE: /IUD
ADDRESS: ~O~ QLLGV/'~'r/nltS']~/ C'~-
HR AFFILIATES
BY:
TITLE: //~'A~~.rd /~'~'~'~
ADDRESS: 1930 Bishop Lane, Suite 111
Louisville, KY 40218
1930 Bishop Lane, Suite 111
Louisville, KY 40218
Telephone: 5 02-485-9675/Fax: 502-459-2511
www.hraftiliates.com
ATTACHMENT A
Salary Administration Project
Our quote is based on the following assumptions.
1. Approximately 80 unique job titles/descriptions.
2. Elizabeth Gross and Steven Kraus as the consultants assigned to this project.
Scope of Work
The work will proceed using the following steps:
• Review Existing Materials
During this step, the consultants will examine existing City of Jeffersonville materials including data
from the completed wage study project and current pay practices. The purpose of this review is to
determine the steps needed to finalize the pay grades and to determine what elements are needed to
complete a salary administration plan for the City of Jeffersonville.
• Finalize Pay Grades
Individual market-based pay grades to be collapsed and combined to place similarly compensated
jobs within one broad pay grade. Establish pay grade midpoints, minimum and maximums and
determine benchmark jobs. Estimate 7-10 final pay grades. Determine estimated financial impact of
revised pay grade system. In consultation with City of Jeffersonville staff, create 2-3 tier pay grade
system for both laborer and administrative/clerical classifications.
• Develop Salary Administration Policy
Develop and document the general company salary administration policy and specific policies for
specified groups. Determine strategy for new hire placement, merit raises and other pay practices,
such ascost-of-living adjustments, bonuses, annual reviews, and promotions. Evaluate need for
varying pay structures for hourly versus salaried rates. Determine whether the company should set
wages at, above, or below market and to what extent to which employee benefits should replace or
supplement cash. Work with Compensation Committee to finalize salary administration policy for
City of Jeffersonville.
Fee
$10,000 includes up to 80 hours of work for review of materials, development of specified products and
on-site meetings with City of Jeffersonville personnel.
Retainer
25% of Project fee to be billed by HR Affiliates, LLC when work commences, and the balance upon
completion of the deliverables.
Implementation Cycle
This work can begin one week from the date the proposal is accepted. Based on our discussions, the
salary administration project can be completed in 60-90 days.
Miscellaneous Consulting
Any consulting/work performed that is beyond the scope of the outline above will be billed at $125 per
hour.
Miscellaneous Expenses
Any expenses or services not included in this proposal, which may be required by the City of
Jeffersonville, will be reimbursed at a rate to be agreed upon, in advance.
Billings
Bills are sent from HR Affiliates, LLC. Payment is due upon receipt of the itemized statement. This
balance of the project will be invoiced at the completion of the deliverables.