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1.2.10 San Carlos will work with Redwood City to conduct parallel testing <br /> of the payroll system as described in Exhibit A. <br /> 1.2.11 The San Carlos Administrative Services Departmenf will create <br /> and update employee master files, and will be responsible for all changes <br /> to employee master files, including changes to deductions and/or pay. <br /> San Carlos will subsequently provide such documentation to Redwood <br /> ciry. <br /> 1.2.12 The City of San Carlos staff member responsible for payroll-related <br /> inquiries will initially endeavor to resolve all inquiries. In the event that an <br /> inquiry cannot be resolved by San Carlos, San Carlos will direct the <br /> inquiry to the designated City of Redwood City staff member responsible <br /> for resolving payroll inquiries. Any inquiries still unresolved by the City of <br /> Redwood City will be handled by the City of San Carlos Administrative <br /> . Services Department. <br /> 2. Standard of PerFormance. While performing the Services, Redwood City will <br /> exercise reasonable professional care and skill, and will use reasonable diligence and <br /> best judgment while exercising its professional skill and expertise. <br /> 3. Term. Unless earlier terminated; in writing by any one of the Parties pursuant to <br /> Section 15 below, the term of this Agreement will commence upon the date first written <br /> above and shall expire on June 30, 2016. <br /> 3.1 Develoament of Pavroll Software. Upon the date of execution of this <br /> Agreement, the City of Redwood City will commence development of payroll <br /> sofiware, which will be completed and accepted by the City of San Carlos on or <br /> before September 26, 2011. <br /> 3.2 Pavroll Services. Redwood City will begin processing payroll for San <br /> Carlos Fire Department employees for the pay period commencing on <br /> September 26, 2011 and will begin processing payroll for all San Carlos <br /> employees (including Fire ,Department employees) for the pay period <br /> commencing on December 19, 2011. Should the parties agree to defer this date, <br /> the City of Redwood City will be entitled to recover any additional costs incurred <br /> in preparing the 2012 W-2s. <br /> 4. Compensation. The City of San Carlos shall compensate the City of Redwood <br /> City for providing payroll services as follows: <br /> 4.1 Development of Payroll Software. The City of Redwood City will develop <br /> payroll software for an initial cost of $39,275 payable upon acceptance of such <br /> software by the City of San Carlos. One-time initial training will be included as <br /> described in Attachment 1 to Exhibit "A," Scope of Services. Any enhancements <br /> to the software will be billed at an hourly rate of $140.85 in FY 2011-12. Optional <br /> modules such as web-based Disability Leave Tracking, Electronic Benefit <br /> Enrollment (EBEV), and online Personnel Action Form system may be added <br /> 2011. 072 San Carlos Payroll Services 3 <br /> 081811 <br />