Automatic Data Processing Inc. (NASD: ADP) signed a deal with the city of Reno, Nev., to provide human capital management services to the 1,500-employee city. The services will include human resources, payroll processing, time and labor management, benefits administration, COBRA and flexible spending accounts.

Reno City Manager Andrew Clinger said the deal could save the city as much as $250,000 a year in administrative costs.

ADP reported it already serves more than 5,000 public sector employers including government organizations, schools and public safety agencies.

Roseland, N.J.-based ADP provides professional employer organization (PEO), payroll processing and other services.