DEPARTMENT: Central Operations Administration
FILE TYPE: Consent Action
TITLE
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Authorization To Purchase Commercial Property Insurance For Byllesby Dam Powerhouse
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PURPOSE/ACTION REQUESTED
Authorize the Director of Risk and Emergency Management to execute commercial property insurance contract with HSB Specialty Insurance Company.
SUMMARY
Risk Management has overseen insurance for the Byllesby Dam since 2007. From 2007-2016, coverage was provided by North American Hydro Holdings, with Dakota County listed as an additional insured. When the Byllesby Dam upgrade project began in 2019, that relationship no longer existed.
During peak construction, builders risk insurance was carried by the general contractor, Voith Hydro. However, due to interconnect delays outside the control of both the County and the contractor, the County assumed responsibility for securing the builders risk policy in December 2024.
Securing builders risk coverage proved challenging due to the County's newness in the hydroelectric market and the limited number of insurers willing to cover hydroelectric facilities. Coverage was obtained only after the County's insurance broker engaged a specialty hydro broker and the County completed required engineering inspections. The builders risk policy, originally expiring on November 26, 2025, required three extensions through June 15, 2026, as project delays continued.
On June 16, 2026, Voith Hydro issued the certificate of completion for commissioning, qualifying the Dam powerhouse for commercial property insurance and allowing the County to transition off builders risk coverage.
Risk Management pursued commercial property quotes; however, market capacity for hydroelectric facilities remains extremely limited. HSB Insurance-an A+++-rated carrier and the County's builders risk insurer since 2024-submitted the viable and comprehensive quote.
The proposed commercial property policy provides coverage for standard perils, including terrorism...
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