"Reuse types in referenced assemblies" only allows you to reuse Data Contracts, not Service Contracts. If you want to share Service Contracts, you don't need to use "Add Service Reference" at all. You can just use ChannelFactory directly.
// Supply the binding and address in code
Binding binding = new BasicHttpBinding();
EndpointAddress address = new EndpointAddress("http://tempuri.org/address");
IServiceContract channel = ChannelFactory<IServiceContract>.CreateChannel(binding, address);
// Or read them from the config file
ChannelFactory<IServiceContract> channelFactory = new ChannelFactory<IServiceContract>();
IServiceContract channel = channelFactory.CreateChannel();
The channel object will also implement ICommunicationObject, so you can cast it if you need to call methods like Open() or Close().
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