City of Austell Natural Gas System

National Labor Relations Board - Board Decisions

Oct 31, 1970

186 N.L.R.B. 280 (N.L.R.B. 1970)

280 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
City of Austell Natural Gas System and International
Chemical Workers Union, Petitioner. Case
10-RC-8315
October 31, 1970
DECISION AND ORDER DISMISSING
PETITION
BY MEMBERS FANNING, BROWN, AND JENKINS
On July 8, 1970, the International Chemical
Workers Union (herein called Petitioner) filed with
the Regional Director for Region 10 (Atlanta, Geor-
gia) a petition alleging that a question affecting
commerce had arisen concerning the representation
of employees of City of Austell Natural Gas System'
(herein called the Employer) and requesting a
investigation and certification of representatives
pursuant to Section 9(c) of the National Labor
Relations Act, as amended.
Thereafter on July 13, 1970, the Regional Director
duly served upon the parties a notice of representation
hearing.
Thereafter on July 22, 1970, the Employer filed a
request for administrative dismissal of petition with
the Regional Director, requesting that the petition be
dismissed on the grounds that: the gas system is
owned and operated by, and is a part of, the City of
Austell, Georgia; and, as such, is a political subdivi-
sion of the State of Georgia; and, therefore, is not an
"Employer" within the meaning of Section 2(2) of the
Act and is not subject to the jurisdiction of the Board.
On August 3, 1970, the Regional Director issued an
order denying request for administrative dismissal of
petition, wherein the Employer's request was denied
without prejudice to the Employer's right to renew the
request at the hearing.
On August 6, 1970, a hearing was held in the above-
entitled matter before Robert C.D. McDonald, a
Hearing Officer for the National Labor Relations
Board. The Employer and Petitioner appeared at the
hearing and were afforded full opportunity to be
heard, to examine and cross-examine witnesses, and
to adduce evidence bearing upon the issues. At he
hearing the Employer renewed its motion to dismiss.
At the close of the hearing the Hearing Officer, by
direction of the Regional Director for Region 10,
transferred this case to the National Labor Relations
Board and served both parties with an order referring
representation case to the National Labor Relations
Board by the direction of the Regional Director for
Region 10.
The Employer timely filed a brief in which it
renewed its motion to dismiss the petition.
Pursuant to the provisions of Section 3(b) of the
National Labor Relations Act, as amended, the Board
has delegated its powers in connection with this case
to a three-member panel.
The Board has reviewed the rulings made by the
Hearing Officer at the hearing and finds that no
prejudicial error was committed. The rulings are
hereby affirmed.
Upon the entire record in this case, the Board finds
the following:
The Employer, with its principal office and place of
business at-Austell, Georgia, is engaged in supplying
natural gas products to customers in Austell, Georgia,
and certain surrounding areas.
The Gas System was created by a special act of the
general assembly of the State of Georgia in 1953,
which amended the charter of the City of Austell
permitting it to operate a gas system. The gas system is
administered by a five-man gas board of the City of
Austell who appoint the general manager of the
system and whose members are appointed by the
mayor and city council of the City of Austell.
The Gas Board is required to submit to the mayor
and city council a detailed monthly report concerning
the system's operation for approval, and a board
member and a representative of the gas system attend
the city council's regular monthly meetings for
submission of the report and to answer questions. The
budget of the gas system is presented annually to the
mayor and city council for approval, and it does not
become effective until approved. In addition, man-
agement consultants submit to the gas board, the
mayor, and the city council quarterly, semiannual,
and year ending reports on the system's operations.
The city finances the operation of the gas system
through the sale of "gas revenue anticipation certifi-
cates," which in Georgia may only be issued by
counties, municipal corporations, or political subdivi-
sions of the State. These certificates must be author-
ized by an ordinance passed by the mayor and city
council of Austell before they can be issued, and when
issued, are signed by both the mayor and city clerk.
The interest paid to holders of these certificates is
exempt from Federal income tax. The income thus
derived is used to pay the operating expenses and
maintenance of the gas system and to pay the interest
and principal due on the certificates. Any profits go to
the City of Austell to be used as the mayor and city
council see fit.
In addition, the offices of the gas system are located
on land owned by the city. The gas system pays no
Federal or state income tax, no state sales taxes, and
no Federal excise taxes on any equipment that it
purchases. The gas system has the right of eminent
, At the hearing the Employer moved that the petition and all other "City of Austell Natural Gas System ." The Hearing Officer referred ruling
formal papers be amended to reflect the correct name of the Employer as on this motion to the Board, and the Board hereby grants said motion.
186 NLRB No. 44
CITY OF AUSTELL NATURAL GAS SYSTEM
domain , and any law suits brought by the gas system
must be brought in the name of the City of Austell. All
contracts entered into by the gas system are executed
in the name of the City of Austell, and all easement
rights received or granted by the gas system are in the
name of the City of Austell.
In 1955 , all city employees , including those em-
ployed by the gas system , were placed under social
security by the mayor and city council . All city
employees (including those of the gas system) are
covered for workmen 's compensation under the same
insurance policy, and all motor vehicles of the city
(including gas system vehicles) are insured for liability
281
under the same insurance policy. (Gas system vehicles
have government license plates as do other city
vehicles, and all are registered in the name of the City
of Austell.)
In our view, the City of Austell Natural Gas System
is a political subdivision of the State of Georgia and as
such is exempt from the jurisdiction of the Act.2
Accordingly, we shall dismiss this petition.
ORDER
IT IS HEREBY ORDERED that the petition filed herein
be, and it hereby is, dismissed.
2 New Bedford, Woods Hole, Martha's Vineyard and Nantucket Steamship
Authority 127 NLRB 1322