Issue - meetings

(i)       in relation to questions asked relating to whether ALEO Board meetings could be held in public and what the position would be in relation to an ALEO refusing to appoint a Director, to note that the Service Level Agreement would require to be amended however as the ALEO’s were private companies it may not be possible to insist that meetings were held in private or that they appoint a Director and that the Service Manager for Legal Services would clarify the position and advise members outwith the meeting;

(ii)      in relation to a question from Councillor Duncan relating to the Terms of Reference for the Assurance Hub, to note that these would be presented to this Committee at its next meeting;

(iii)      to note the options appraisal undertaken to identify a preferred option for a refreshed ALEO operating model as attached under Appendix A;

(iv)     to note the Good Governance Institute’s recommendation from their report to Council dated September 2016, that the level of ALEO scrutiny should be proportionate to the level of risk to the Council and that the previous iteration of the Governance Hub was administratively burdensome and unsupportable in the future;

(v)      to note CIPFA’s view as detailed in their report to Council dated 9 January 2017, that Council should strike a balance between oversight of ALEOs and allowing their freedom to operate as independent legal entities; and

(vi)     to approve the adoption of Option 3: Assurance Hub Model as the Council’s new ALEO operating model.

The Committee had before it a report by the Head of Legal and Democratic Services which sought approval for a new Arms-Length External Organisation (ALEO) operating model to provide assurance to the Council on the effectiveness of ALEO systems of governance, with a view to ensuring that the outcomes of those organisations were being monitored and the risks to those organisations and the Council were mitigated and managed.

The report recommended:

That the Committee –

(a)      note the options appraisal undertaken to identify a preferred option for a refreshed ALEO operating model as attached under Appendix A;

(b)      note the Good Governance Institute’s recommendation from their report to Council dated September 2016, that the level of ALEO scrutiny should be proportionate to the level of risk to the Council and that the previous iteration of the Governance Hub was administratively burdensome and unsupportable in the future; and

(c)      note CIPFA’s view as detailed in their report to Council dated 9 January 2017, that Council should strike a balance between oversight of ALEOs and allowing their freedom to operate as independent legal entities; and

(d)      approve the adoption of Option 3: Assurance Hub Model as the Council’s new ALEO operating model.

Councillor Jackie Dunbar sought clarification in relation to whether ALEO Board meetings could be held in public and what the position would be in relation to an ALEO refusing to appoint a Director, wherein the Service Manager for Legal Services advised that in respect of holding meetings in public, the Service Level Agreement would require to be amended, however, as the ALEO’s were private companies it may not be possible to insist that meetings were held in public and that in relation to what the position would be where an ALEO refused to appoint a Director, that the Service Manager for Legal Services would clarify the position on this and advise members fully on both points out with the meeting.

Councillor Duncan enquired as to whether Terms of Reference for the Assurance Hub had been drawn up wherein the Senior Democratic Services Manager advised that these would be presented to this Committee at its next meeting.

The Convener moved, seconded by Councillor Jackie Dunbar:-

          That the Committee approve recommendations (a) to (c) and amends recommendation (d) as follows:

(d) Approve the adoption of Option 3: Assurance Hub Model as the Council’s new ALEO operating model; noting that each ALEO will present their business plan or annual plan to the relevant service committee once a year; and recommends to the meeting of Full Council on the 23rd of August 2017 that the Council nominates at least one Councillor as a board member to each ALEO, subject to any necessary compliance with any relevant legal rules, process and agreement with the ALEO.

Councillor Laing moved as an amendment, seconded by Councillor Donnelly:-

          That the Committee approve recommendations (a) to (c) and amends recommendation (d) as follows:

(d) Approve the adoption of Option 3: Assurance Hub Model as the Council’s new ALEO operating  ...  view the full minutes text for item 16