To: All LARM Members
From: The LARM Board
The upcoming March 21, 2018 election is not authorized by the LARM board. It was set up by the League of Nebraska Municipalities (LONM) and they have no legal authority to set up a LARM Board election. LARM’s attorney has studied their allegations of the need to immediately vote for a complete new slate of board members and sees no merit to their reasoning. His opinion is at the bottom of this message.
The LARM Board is setting up an election for members to select three board members this fall which will allow each LARM member throughout the state to vote for a staggered number of three of the nine board members. You will receive more information from LARM once a date has been finalized.
There is only one legal election that can be made to place new members onto the LARM board and that election is in the fall.
LARM is in a strong financial position and continues to provide members day in and day out with quality customer service. Our staff, as always, is committed to serving our members. Call 402-742-2604 or email Tracy at email@example.com for any insurance questions you may have. We are looking forward to another year of growth and stability.
LARM Board Members- Gerald Solko, Lane Danielzuk, David Hunter, Beth Bonderson, Vince Knight, Kim Neiman, Shannon Stuchlik, Andrew Ward, Mike Werner
March 7, 2018
Re: LARM Board; Elections
LARM Board of Directors:
As requested, this letter summarizes my legal opinion about League of Nebraska Municipalities’ (LONM) efforts to conduct a LARM Board election. Please read these words carefully. The question is not: Were current Board Members elected? It is: Does the current Board have authority to fulfill Board functions? If so may it, alone, call for elections?
First, LARM has a lawful, de facto, Board. Whether elected or appointed, the Board is discharging its duties and is recognized as valid by every state agency dealing with LARM.
Second, only the LARM Board can schedule Board elections. No state statute or Interlocal Agreement authorizes LONM, or any individual LARM member, to call an election or establish where, when or how it will occur. LARM’s Board is enacting formal election procedures. Ballots will be distributed and must be returned within specific dates and under safekeeping protocol to ensure integrity. One third of the Board will be elected each year, including in 2018. Only the Board can set this in place as has been done. One third is the maximum permission number electable in one year.
Third, no private entity like LONM can control LARM. LARM is a public governmental agency; it cannot cede control to LONM and its Board or members cannot do so either.
Fourth, LARM is a statutory Risk Management Pool regulated by the Department of Insurance. LONM is not regulated by any agency; it is a non-governmental lobbying organization with a governmental clientele. LARM is obligated to manage risks and pool funds at the lowest responsible cost. LARM cannot use member funds to support LONM. “Sponsorships” fees are not in accord with the law, and are not to consistent with the Pool’s obligations. Sponsorship errors of the past do not justify repetition in the future.
Talk of an LONM election for LARM Board members in a few weeks is contrary to the law and serves as an attempt only to disrupt and engender diminished confidence.
David A. Domina