I am writing this letter to provide a historical perspective on the Cordova Electric Cooperative board proposal to amend the Bylaws to include a stipend for board members.
A few years ago while I was a member of the CEC board, we decided to eliminate a stipend for board members. Our logic at the time was:
1. Cordova is an incredible place to live and raise a family in large part due to its volunteers including City Council, Planning Commission, Library Board, PWSAC Board. The list goes on. Volunteers are the fabric of our community. CEC is no different. The board dedicates themselves to a cause like every other board and should continue to serve for a higher purpose without expecting compensation.
2. Although many Rural Electric Utilities have the authority to pay their board, it does not necessarily make it right. Delivering reasonably priced electricity to the community of Cordova is one of our biggest challenges. The excellent employees of CEC make daily sacrifices to reduce costs and save every penny while delivering safe, reliable, and reasonably priced electricity. Every penny counts when you are trying to reduce electric costs. The cost may not seem significant. Board stipend for attending meetings would cost approximately $6,000/year and if you include stipends to attend meetings it would be $10,000. That’s $10,000 above the current travel per diem and meals provided at all meetings. When we implemented the no pay policy and became conscious about travel we reduced the board budget from over $100,000 per year to under $30,000 per year. If the CEC board is going to lead the effort in reducing electric costs, they need set an example by reducing the cost of the board.
I appreciate the work the board puts into leading CEC, in the same way I appreciate all volunteers in Cordova. However I do not see what has changed since the board made the decision to eliminate board stipends. I am voting NO to include a stipend for the CEC board. I encourage you to do the same.
— Dan Logan
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