COUNC

TO: Mayor and Council October 24th, 1975 OCT 2 7 1975

FROM: L.D. Pollock
City Administrator

Re: Insurance Brokerage Service

Earlier this year I discussed with Council in Committee the fact that

the firm of Hugh & McKinnon Ltd. had purchased the assets of J.T.O'Bryan's
Insurance Service in New Westminster. The City had, up until that time,
been dealing with the O'Bryan firm for our insurance needs.

I have now received the attached letter from Hugh & McKinnon advising
that the merger is complete and they have asked us to reconfirm their
appointment as Brokers for the City. The function of a Broker is to
shop around on behalf of the municipality to obtain the best possible ©
rates for the various classes of insurance coverage and in addition, to
make sure that policy coverage is adequate.

By way of background on this matter, Council may recall that in 1972 our
previous insurance company, The Ocean Accident Company was involved in a
large merger and at that time I recommended to Council that we obtain
bids for our insurance needs. The firm of J.T. O'Bryan and Company was
the low bidder. Our contact with this firm was through Mr. Barry Cliff,
who was an employee of O'Bryan"s and who had been appointed by the City
as a Broker for our Group Insurance requirements. Upon being successful
bidder, the O'Bryan firm was appointed as our Agent in early 1973 and
they continued until Hugh & McKinnon purchased the O'Bryan Company in
early 1975. Mr. Cliff now has his own agency in Vancouver and has
approached me ebout the City's insurance. I feel, however, that the
firm of Hugh & McKinnon has the experience and capacity to handle our
account. , ,

I am. satisfied that Hugh & McKinnon is a well established company. They
are Agents for four other municipalities, including the District of
Surrey. They are also Agents for Douglas College and Surrey School
Board, so that they do have experience in insuring public bodies.

The letter from Hugh & McKinnon, which is attached, mentions the matter
of conflict of interest with Alderman Thompson being a member of the
staff of this firm, there is no legal conflict of interes. To avoid any
possible appearance of a conflict of interest, however, Council may wish
to direct that the firm appoint another Account. Executive within their
organization to look after our particular account. :