R2013-12 AUTHORIZING EXTENDING THE TRANSIT MANAGEMENT AGREEMENT

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5. OPERATING ENTITY AND PERSONNEL A. CONTRACTOR, subject to the laws of the State of Illinois, shall form a separate corporation, (hereinafter referred to as "SUB-CORPORATION"), which by assignment shall assume and perform all services and obligations, and accept all rights,which have been incurred or extended to CONTRACTOR under the terms and conditions of this Agreement. Subject to the provisions of subsection E. of this paragraph, said SUB-CORPORATION shall employ, and shall be the employer of, all employees required from time to time for the efficient operation of the Transit System. The SUB-CORPORATION shall assume all contractual obligations incidental to the operation by CONTRACTOR. B. The SUB-CORPORATION shall employ only persons of good moral character and reputation and shall conduct an investigation of all prospective employees considered for employment. The SUB-CORPORATION shall furnish to the CITY the name and resume of each prospective employee. Employees shall be selected with the approval of the CITY, which approval shall not be unreasonably withheld. The CITY shall have the right to require the removal, for any reason, of any employee of the SUB- CORPORATION from any work assignment or from employment under this Agreement. C. CONTRACTOR shall furnish a General Manager who shall be selected with the approval of the CITY,which approval shall not be unreasonably withheld,shall serve at the expense of CONTRACTOR, and shall provide the active management of the Transit System for and on behalf of the CITY. The General Manager shall reside in the Decatur area. Management of the Transit System shall be the full time job of the General Manager. Richard A. Foiles shall be the General Manager of the Transit System under this Agreement. Mr. Foiles shall not be transferred from this assignment without the written approval of the CITY. 5