Staff reports on proposed dissolution of San Mateo County Cities Insurance Group; Half Moon Bay to consider options for workers’ comp coverage

City staff informed the council Oct. 7 about the proposed dissolution of the San Mateo County Cities Insurance Group, a joint powers arrangement that has provided workers’ compensation coverage to participating cities since 1978 and of which Half Moon Bay was a founding member.

Lisa (last name not recorded), a city staff presenter, said Foster City — the group’s largest member — withdrew in 2024 and that the remaining members concluded dissolution may be the fiscally prudent course because Foster City held a large share of the pooled funds and claims history. The staff report presented the dissolution process and noted the JPA’s small size makes moving into another joint arrangement difficult; some other JPAs indicated they would not accept the group as a unit and could only consider individual cities.

Staff told council they will bring a formal resolution consenting to the dissolution at the next meeting, and that subsequent months will include analysis of replacement options for Half Moon Bay’s workers’ compensation and long‑term disability coverage. Staff said the city is expected to see increases in coverage costs compared with the Citi’s group rates but that Half Moon Bay’s low claim history should mitigate substantial spikes.

Why it matters: Changes to the inter‑municipal insurance arrangement affect the city’s long‑term liability management, budget forecasting, and procurement of replacement coverage. Council members asked for a follow‑up with cost comparisons and recommended options at the next meeting.

Evidence: Staff presentation on Oct. 7 and council discussion; staff committed to returning with a resolution for consent and cost/options analysis.