Section 10. Any person holding any office or position in the service of a city or town which accepts one of the optional forms of administration provided in this chapter and who is employed in an office or agency which is merged with another or abolished or otherwise constituted shall be transferred to the department or agency thereby created without reduction in compensation, or impairment of any civil service, retirement, pension, seniority, vacation, sick leave or other rights or benefits to which then entitled. Any reduction in force which is to result from the new form of administration shall be accomplished through attrition, or other reassignment and not by dismissal.

All books, papers, documents, equipment, building facilities, land and other property, both real and personal, which are in the custody and control of any agency affected by a consolidation under the provisions of this chapter shall forthwith upon the establishment of any new agency be transferred by the former agency to such new agency.

All monies which have been appropriated to any department or agency which is included in any consolidation under the provisions of this chapter shall, upon the establishment of the new agency, be credited to the account of such new agency. All contracts in force at the time any new agency is created in which any department or agency whose powers or functions are being assumed by the new agency is a party shall be continued in force by such new agency until they otherwise expire or are cancelled. Any judicial proceeding in which any agency affected by any consolidation under this chapter is a party shall not be affected by the consolidation but any such successor agency shall stand in the place of the former agency.