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MDD Resolution No. 394RESOLUTION NO. 394 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT ADOPTING A CONFLICT OF INTEREST POLICY FOR THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT: Section 1: That the Board of Directors of the Baytown Municipal Development District hereby adopts a Conflict of Interest Policy for the Baytown Municipal Development District, which is attached hereto as Exhibit "A" and incorporated herein for all intents and purposes. Section 2: This resolution shall take effect immediately from and after its passage by the Board of Directors of the Baytown Municipal Development District. INTRODUCED, READ and PASSED, by the affirmative vote of the Board of Directors of the Baytown Municipal Development District this the 71h of May, 2020. B ANDON CAPETILL , President ATTEST: LETICIA BRYSCH, ntant Secretary �•`� �'•� ;:a����.%� �;` APPROVED AS TO FORM: •. /111111111�```` E L. HORNER, Interim General Counsel R: Karen Files City Council\Municipal Development District Resolutions\2020\May 7 Resolution - Conflict of Interest Policy.doc Exhibit "A" CONFLICT OF INTEREST POLICY The Baytown Municipal Development District (the "District") does hereby establish this Conflict of Interest Policy (the "Policy") to facilitate the development of controls that will aid in the detection and prevention of conflicts of interest and fraud against and within the District. It is the intent of the District to promote consistent organizational behavior by providing guidelines and assigning responsibility for the development of controls and the conduct of investigations. 1. Scope of the Policy: This Policy applies to all individuals working at all levels and grades within the District, employees, consultants, vendors, contractors, and outside agencies doing business with employees of the District, and/or any other parties with a business relationship with the District. Any investigative activity required will be conducted without regard to the suspected wrongdoer's length of service, position/title, or relationship to the District. 2. Code of Conduct: a. The District shall avoid, neutralize or mitigate actual or potential conflicts of interest so as to prevent fraud, unfair competitive advantage, or the existence of conflicting roles that might impair the actions of the District. b. For procurement of goods and services, no officer, director, employee, or agent of the District shall participate in the selection, award, or administration of any contract if he or she has a real or apparent conflict of interest. Such a conflict could arise if the employee, officer or agent; any member of his/her immediate family; his/her partner; or an organization which employs or is about to employ any parties, has a financial or other interest in, or receives a tangible personal benefit, in excess of $5a from a firm being considered for a contract with the District. "Immediate family" means a spouse, domestic partner, parent, child, or spouse of a parent, child, brother, sister, or spouse of a child, brother or sister. C. No officer, employee, or agent of the District shall solicit or accept gratuities, favors or anything of monetary value from contractors or firms, potential contractors or firms, or parties to sub -agreements with regard to any contract, except where (i) the financial interest is not substantial, (ii) the gift is an unsolicited item of nominal intrinsic value or (iii) such solicitation or acceptance is otherwise subject to an exception set forth in the Texas Penal Code. d. For all other cases, no employee, agent, consultant, officer, or elected or appointed official of the District, who is in a position to participate in a decision -making process or gain inside information about a contract, may obtain a financial interest or benefit from such contract. Any alleged violation of these standards of conduct shall be referred to the District. Where violations appear to have occurred, the offending employee, officer or agent shall be subject to disciplinary action, including but not limited to dismissal or transfer; where violations or infractions appear to be substantial in nature, the matter may be referred to the appropriate officials for criminal investigation and possible prosecution. 3. Complaint Procedures: The following are the formal complaint and grievance procedures: a. A person who has a complaint or grievance about any services or activities with respect to a contract may during regular business hours submit such complaint or grievance, in writing to the General Manager of the District. b. A copy of the complaint or grievance shall be transmitted by the District to the person or entity that is the subject of the complaint or grievance within five (5) working days after the date of the complaint or grievance was received. C. The District shall cause an investigation of the complaint or grievance to be completed, if practicable, and provide an update regarding the administration of such investigation to the person who made the complaint or grievance. d. If appropriate, copies of grievance procedures will be given in both English and Spanish, or other appropriate language. 4. Confidentiality. a. To the extent allowed by law, any person reporting or investigating reports is required to keep reports and all information relating to the investigation confidential, except as necessary to report the violation of this Policy or to conduct a complete and fair investigation. b. The person reporting the violation of this Policy shall not attempt to personally conduct investigations or interviews related to any suspected fraudulent act. C. Any person who learns of any investigation shall keep all matters relating to the investigation strictly confidential to the extent allowed by law. 5. No Retaliation. No person who reports a violation of this Policy in good faith shall suffer harassment, retaliation or employment consequence. Retaliation in any form will not be tolerated. Any act of alleged retaliation should be reported immediately and will be promptly investigated. Effective this the 7`h day of May, 2020. BRANDON CAPETILLO, President R: Karen Files City Council Mumctpal Development District\Resolutions\2020 May 7 Conflict of Interest Policy - MDD.docx 2