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INTEROFFICE MEMORANDUM
Date: August 1, 2017
To: The Honorable Mayor and City Council
Through: Brian McDougal, City Manager
From: Ronald K McElhose, General Manager, PAT itif
RE: PR 19855 Ethics and Compliance Policy with TXDOT Regualtions
Introduction:
The intent of this Agenda Item is to seek the City Council's approval for the City Manager to
approve the Transit Department's Ethics and Compliance Policy as required by TXDOT to
receive TXDOT funding.
Background:
Port Arthur Transit receives funding from TXDOT in addition to Tax Development Credits to
use in lieu of local contributions towards our FTA Grants. TSDOT requires that the Transit
Department has an approved Ethics and Compliance Policy. (This Policy was provided by
TXDOT and will be approved pending the acceptance of the Policy)
Budget Impact:
No Budget Impact
Recommendation:
It is recommended that City Council approve the City Manager to approve the Transit
Department's Ethics and Compliance Policy
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 x Port Arthur,Texas 77641-1089 x 409.983.8101 x FAX 409.982.6743
P.R. NO. 19855
07/17/17 CN
RESOLUTION NO.
A RESOLUTION AUTHORIZING EXECUTION OF AN INTERNAL
ETHICS AND COMPLIANCE POLICY FOR THE TRANSIT
DEPARTMENT WITH THE TEXAS DEPARTMENT OF
TRANSPORATION TO PROVIDE TRANSIT OPERATING FUNDS FOR
THE CITY OF PORT ARTHUR TRANSIT.
WHEREAS, the Texas Department of Transportation has been designated to administer
the statewide Public Transportation Grant Program; and
WHEREAS, to be eligible to receive these funds, Port Arthur Transit has to implement
an internal ethics and compliance policy for the Transit Department.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
THAT, the facts and opinions in the preamble are true and correct.
THAT, the City Manager is hereby authorized to execute an internal ethics and
compliance policy between Port Arthur Transit and Texas Department of Transportation, in
substantially the same form as attached hereto as Exhibit"A".
THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED AND APPROVED this day of August, A.D. 2017 at a
meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES:
Mayor:
Councilmembers:
NOES: •
P.R. 19855
10/30/14 CN
Page 2 of 3
Derrick Ford Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
A PROVED AS TO FORM:
Uj i •- h-(1 A4f a-h
Valecia . Tizeno, City Attorney
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
Ronald K. McElhose, Director of Transit
P.R. 19855
10/30/14 CN
Page 3 of 3
EXHIBIT A
PORT ARTHUR TRANSIT
INTERNAL ETHICS AND COMPLIANCE POLICY
Ronald K. McElhose
General Manager
Port Arthur Transit
Part I Compliance
1. The General Manager and the Assistant Manager are charged with monitoring
compliance within Port Arthur Transit and taking appropriate action in
response to compliance related complaints. These employees, along with the
Comptroller are responsible for oversight of financial reports and establishing
and maintaining an adequate internal control structure with appropriate
checks and balances.
2. All possible steps are taken to avoid the delegation of substantial
discretionary authority to an individual, whom the organization knows or
should know, have previously engaged in illegal activities. Criminal
background checks are conducted bi-annually for all current employees and
upon employment for all future employees.
3. All steps are taken to ensure that compliance standards are effectively
communicated to all employees by requiring participation in training and by
distributing information that explains the requirements of Port Arthur
Transit's Internal Ethics and Compliance Policy. A copy of the Ethics and
Compliance Policy, including any amendments and all related documents are
made available to all employees. Training will be held during orientation and
annually thereafter. Each employee will sign a document acknowledging
their receipt and understanding of the policy's requirements and on ethical
behavior generally. All employees and Council members participate in annual
training in ethics and in the compliance program and ethical behavior.
4. All agents of the organization will receive a copy of the Ethics and Compliance
Policy and its expectation of ethical behavior and compliance with the law
through distribution of written materials, electronic communication or verbal
communication.
5. Yearly internal audits are conducted along with other risk evaluations to
monitor compliance and assist in the reduction of identified problem areas.
Employees are required to immediately report any suspicion of non-
compliance with law or unethical behavior to the General Manger or
Assistant Manager.
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6. It is the entity's desire to identify and address incidents of misconduct in
an expeditious manner by encouraging employees to spot and report
potential compliance issues to management.
7. If an employee is uncomfortable in reporting directly to management,
employees can and are encourage to use the entity's Ethics and
Compliance hotline (855) 858-3344 to make reports anonymously. Reports
made through the hotline are handled confidentially. Employees who
report suspected non-compliance with law or unethical behavior can do so
without fear of retaliation.
8. Any employee who violates the entity's ethics policy or Internal
Compliance Program shall be subject to disciplinary action, as well as
applicable civil or criminal penalties. The General Manager shall be
responsible for periodically assessing the risk of criminal misconduct within
the organization.
9. The General Manager or assigned supervisor will mitigate an identified
non-compliance immediately. In an effort to prevent future violations,
policies will be reviewed and revised when needed to ensure the issue is
addressed programmatically and employees will be trained on the policy
revision(s) to ensure their understanding of Port Arthur Transit's
expectations.
Part II
Introduction:
This policy prescribes the standards of ethical conduct for all employees of Port
Arthur Transit. All employees must familiarize themselves with this policy. All
employees must abide by applicable federal and state laws, administrative rules,
and this ethics policy. An employee who violates any provision of this conduct
policy is subject to disciplinary action up to and including termination. An
employee who violates any applicable federal or state law or rule may be subject
to civil or criminal penalties in addition to any disciplinary action.
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All employees shall perform their official duties in a lawful, professional, and
ethical manner; practice responsible stewardship of organizational resources,
and report any conduct or activity that they believe to be in violation of this
policy.
Employees shall not knowingly make false or misleading statements, oral or
written, in the course of the conducting of Port Arthur Transit business.
Employees shall not disclose confidential or sensitive organizational business
information without prior written authorization.
1. Record Retention
Port Arthur Transit is committed to proper maintenance and retention of
records. Records are defined broadly to include almost any type of business
information, and the required retention period varies with the type of record.
Falsifying records, deliberately concealing records, destroying records in bad
faith, exploiting confidential information, or otherwise mishandling records is
not acceptable.
Records management includes the application of management techniques to
the creation, use, maintenance, retention, preservation and disposal of records
for the purpose of reducing the cost and improving the efficiency of
recordkeeping. Port Arthur Transit will follow the standards contained in DOT
Rule 49 CFR Part 40 Section 40.333, Records Retention Policy.
When a lawsuit is filed or is reasonably anticipated to be filed against Port
Arthur Transit, or when an internal or governmental investigation is initiated,
we must ensure that all information potentially relevant to the suit or
investigation is preserved.
Records will not be altered, concealed, or in any way destroyed that are
potentially relevant to a suit or investigation. Steps must be taken to ensure
potentially relevant information is not inadvertently destroyed pursuant to
document retention schedules or by routine computer operations or common
computer settings, such as the automated deletion of emails.
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2. Fraud
Fraud is broadly defined, and may include any type of intentional deception for
the purpose of personal or business gain or damage to an individual or
organization. Examples of fraud include lying on an employment application,
falsifying records, or providing false receipts for reimbursements.
Employees must be good stewards of resources entrusted to them and exercise
due diligence to prevent and detect criminal conduct and non-compliance with
laws and policies. Fraud, waste, abuse, or non-compliance must be reported to
an appropriate supervisor, manager, or through the toll free Fraud Hot Line.
Engaging in acts of fraud may result in civil or criminal liability.
3. Equal Opportunity Employment
Port Arthur Transit utilizes an Equal Opportunity Employment policy which
promotes and ensures equal employment opportunity for all persons regardless
of race, color, disability, religion, national origin, or age. Discrimination has no
place at Port Arthur Transit and will not be tolerated.
4. Sexual Harassment and Sexual Misconduct
Port Arthur Transit's Sexual Harassment Policy does not tolerate any form of
sexual harassment in the workplace. Sexual harassment may include sexual
advances, sexual solicitation, request for sexual favors, or other verbal or
physical conduct of a sexual nature.
Sexual misconduct includes behavior that is short of sexual harassment, but
nonetheless is unprofessional and inappropriate. Sexual misconduct is not
permitted. All employees will treat one another and the general public with
professionalism, respect, and fairness. Employees must conduct themselves with
courtesy and restraint at all times on the job and whenever perceived to be
representing Port Arthur Transit.
If an employee believes they are being subjected to sexual harassment of sexual
misconduct by any person in the workplace, or if they witness any incident that
appears to be a violation of the sexual harassment and sexual misconduct
policies, it must be reported to the appropriate supervisor/manager.
Alternatively, if the subject of the complaint is a supervisor/manager the
complaint can be made to the General Manager or the City of Port Arthur
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Human Resources Director. A full, complete, and confidential investigation will
be conducted and appropriate action taken to correct the matter. Employees
who report sexual harassment are protected from any form of retaliation by
state and federal laws.
Supervisors or managers who receive reports of sexual harassment or sexual
misconduct must report the complaints to the General Manager and the City of
Port Arthur Human Resources Director regardless of the form of the complaint
(formal or informal). Supervisor or managers must keep accurate records of
complaints and are responsible for taking appropriate action that actually stops
the harassment or misconduct. Ignoring a report of sexual harassment or
misconduct is unacceptable.
5. Conflicts of Interest
Conflict of interest is a situation in which one's private interest (most often
financial in nature) conflict with or raises a reasonable question of conflict with
their job-related duties and responsibilities. Importantly, if someone violates a
conflict of interest law, they face civil and/or criminal charges resulting in
monetary fines or jail time.
Employee shall not:
• Engage in any activity that would create a conflict of interest or even
the appearance of a conflict.
• Make personal investments in any enterprise that would create
a substantial conflict between the employee's private interest
and Port Arthur Transit.
• Engage in outside business or professional activities or accept employment
if the activities create a conflict between the employee's private interest
and Port Arthur Transit; use or appear to use information obtained in
connection with the employee's duties for Port Arthur Transit, or could be
expected to impair the employee's independence of judgment in the
performance of the employee's duties.
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Local public officials (including members of Port Arthur City Council), as well as
certain other employees involved with contracting, are subject to the conflict of
interest provisions in Chapter 171 of the Texas Local Government Code. Chapter
171 established the standard for determining when a local official has a conflict
of interest that would affect their ability to discuss, decide, or vote on a
particular item. Other state and federal laws may be applicable to officials and
employees in particular situations.
6. Personal Use of Organization's Property
Property owned or leased by or provide to Port Arthur Transit may only be used
for official purposes as authorized by the City of Port Arthur and the General
Manager. Any misuse or unauthorized use of Port Arthur Transit's property,
including information system resources, is subject to disciplinary action. Misuse
of official property may also result in criminal prosecution.
7. Gifts and Honoraria
All employees of the City of Port Arthur are prohibited from accepting any gifts,
samples, entertainment, special personal price considerations, fees, commissions
or other gratuities from any vendors or bidders. Employees may accept items of
negligible value used as obvious forms of advertisement such as pencils, calendars,
notepads and key rings, etc, which shall not be considered gratuities. Vendors or
bidders who offer gifts, entertainment, etc. may be declared irresponsible bidders
and may be debarred from bidding. An employee who accepts a gift,
entertainment, etc. shall be subject to disciplinary action, up to and including
termination.