R2005-77 ACCEPTING PROPOSAL FIRST TRANSIT, INC.

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. � � MASS TRANSIT MANAGEMENT AGREEMENT This Agreement is made and entered into by and between the City of Decatur of the State of Illinois (hereinafter referred to as the"CITY"),and First Transit,Inc. ',a Delaware corporation(hereinafter referred to as"FIRST TRANSIT"). The CITY and FIRST TRANSIT,in consideration of the mutual covenants contained herein,and for valuable considerations exchanged between the parties hereto, hereby agree as follows: 1. EMPLOYMENT AND ACCEPTANCE The CITY hereby engages FIRST TRANSIT as an independent contractor to manage and supervise the conduct and operations of the Decatur Public Transit System in the Decatur urban area, including additions to and extensions thereof (hereinafter referred to as the "Transit System"),as provided herein. FIRST TRANSIT agrees to supply such services upon the terms and conditions set forth herein. 2. DESIRED RESULT The desired result to be achieved by FIRST TRANSIT is management of the Transit System under the CITY's policies and in a way that will provide the quality and quantity of service demanded by the CITY, as determined from time to time by the CITY. FIRST TRANSIT will not,however,be expected to achieve results beyond the limits of the funding and other resources made available to it for the management and operation of the Transit System. 3. SCOPE OF SERVICES OF FIRST TRANSIT Notwithstanding anything in this Agreement to the contrary,FIRST TRANSIT acknowledges and agrees that all matters of policy,including,but not limited to the scope of transportation services, fares and scheduling, are and shall continue to be controlled by the CITY. FIRST TRANSIT shall furnish management services as reasonably required by the CITY and necessary to assist the CITY in the efficient operation of the Transit System under the policies,standards,and procedures established by the CITY. FIRST TRANSIT shall ensure that the CITY meets all applicable federal and state requirements and regulations. Special emphasis shall be required by FIRST TRANSIT to ensure that the CITY and its contractors meet all of the requirements and regulations of, and report to when required, the Illinois Department of Transportation and the US Department of Transportation, Federal Transit Administration, including but not limited to drug and alcohol testing programs, driver qualifications and training, and vehicle maintenance and inspection. 1 The parties understand and agree that the term FIRST TRANSIT,as referred to herein,shall include the• subcorporation formed pursuant to paragraph 5,if any,and all terms and conditions,rights owed to or duties required by FIRST TRANSIT pursuant to this Agreement shall likewise apply to the subcorporation. 1 ��