Appeal from Common Pleas Court, Philadelphia County, Honorable Samuel Lehrer, Judge.
Ralph J. Teti, Chief Deputy, City Sol., Philadelphia, for appellant.
Thomas W. Jennings, Sagot & Jennings, Philadelphia, Gary M. Lightman, Harrisburg, for appellees.
Crumlish, Jr., President Judge, McGinley, J., and Narick, Senior Judge.
[ 127 Pa. Commw. Page 423]
The City of Philadelphia (City) appeals from an order of the Court of Common Pleas of Philadelphia County that voided and struck Item No. 5 of the July 19, 1988 award of the Board of Arbitrators (Board). We affirm.
The facts can be summarized as follows. Following unsuccessful collective bargaining negotiations between the City and the Fraternal Order of Police, Lodge No. 5(FOP), the FOP notified the City of its intention to proceed to binding arbitration.
The Board was presented with the collective bargaining agreement (CBA) between the City and the FOP, which was to expire July 1, 1988, and the parties' proposed issues for arbitration.*fn1
The health and welfare section of the CBA provides:
1. Blue Cross/Blue Shield
(a) The City shall pay to the FOP all health insurance payments for members electing Blue Cross and Blue Shield coverage.
(b) The Blue Cross Co-Pay Comprehensive, Blue Shield 100 and Major Medical Plans in effect on July 1, 1980 shall be maintained.
[ 127 Pa. Commw. Page 424]
(c) The City shall pay to the FOP the sum of One Thousand Five Hundred ($1,500.00) Dollars per month for the purpose of administering Blue Cross and Blue Shield benefits under this contract.
(d) Any employee covered by this Agreement who so chooses may participate in the City of Philadelphia administered Health/Medical program including flexible benefits.
2. Police and Fire Association (PFMA) or Health Maintenance Organization [HMO]
The City shall contract directly with the Police and Fire Medical Association (PFMA) or such other HMO designated by the employee under the following conditions:
a. The City shall pay the PFMA or other provider for the current level of benefits the same amount it pays to the FOP for members who elect Blue Cross and Blue Shield coverage.
b. The PFMA or other provider shall be required, if requested by the City in its contract with PFMA or other provider, to a quarterly audit conducted by a CPA firm selected by the City in order to determine the ...