City of Austell Natural Gas System

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