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Richwood council authorizes city manager to negotiate payroll and HR services with HR&P, Inc.
Summary
Council authorized the city manager to negotiate and execute an agreement with HR&P, Inc. to provide payroll processing, benefits administration, ACA compliance and HR services after staff said the service would centralize HR expertise for an estimated $17,000/year plus implementation costs.
After discussion about the city’s small administrative staff and prior HR-related legal costs, council voted to authorize the city manager to negotiate final terms and execute documents with HR&P, Inc. for combined payroll and human-resources services.
Staff explained the proposal would centralize payroll and HR tasks — including timekeeping via an employee mobile app, benefits administration, COBRA processing, W‑2s, record keeping and on-call HR/legal guidance — for an implementation fee (cited as roughly $2,000) and an annual service cost the presenter estimated at about $17,000. "It's about 17,000 a year ... 2,000 for implementation," the presenter said, adding that the company would also update personnel policies and provide a trained HR professional on call.
Council members raised cybersecurity and contingency questions. One councilmember (Bob) asked whether the vendor had contingencies in the event of a hack and described prior payroll outages he experienced in other organizations; staff replied Richwood would retain internal payroll capability (Polaris) and ownership of records so the city could issue paper checks if needed during an outage. Staff also said the vendor is regionally based in Houston and familiar with Texas law, which the presenter cited as an advantage for compliance.
The council moved to authorize the city manager to negotiate final terms and execute all necessary documents; the motion was seconded and carried by voice vote. Staff said they want the service in place prior to the city’s benefits open-enrollment period and estimated about a 60‑day implementation window.
Next steps: the city manager will finalize contract terms and return signed documents to the city, with implementation timed to align with benefit renewals and the payroll calendar.
