Agenda item

The Council had before it a report by the Chief Executive which proposed a review of the way in which Council Services were managed and delivered, being the “Council’s Operating Structure”, and made recommendations for the implementation of a new system of management and delivery known as the “Target Operating Model”.

The report recommended:-

that the Council -

(a)          Target Operating Model

(i)        agree the realignment of the key functions of the Council for the proposed Target Operating Model as detailed in section 5 of Appendix A, namely:-

·         Customer

·         Commissioning

·         Operations

·         Resource Management;

(ii)       note that a programme of engagement with stakeholders, both within and outwith the Council, including trades unions, ALEOs and other partners would be undertaken as the detail of the Target Operating Model was developed;

(b)          Organisational Structure

(i)        agree the First Tier structure for the Target Operating Model as proposed in section 5 of Appendix A, namely:-

·         Director of Customer

·         Director of Commissioning

·         Chief Operating Officer

·         Director of Resources;

(ii)       agree the proposed job profile and salary for each Director post as proposed in Appendix B;

(iii)      noting that responsibilities had only been identified under each proposed Director post at this stage, instruct the Chief Executive to develop further the senior management structure and report to Council at its meeting in December 2017 with recommendations for proposed portfolios and posts as appropriate;

(iv)      agree the revised recruitment and selection process outlined in paragraph 5.5 of the report for the appointments to the Director posts, suspending Standing Order 47 (2014) as required, with a view to the posts being filled on a permanent basis by 1 April 2018;

(c)          Transformational Portfolio

(i)        agree the Transformation Portfolio, set out in Appendix C to address the three objectives of delivering up to £125million of benefits realisation (or savings) over five years (2018/19 to 2022/23); delivering the Council’s digital strategy and delivering the Council’s Target Operating Model by 2020/21;

(ii)       assuming agreement of (c)(i) above, agree the establishment of the Strategic Transformation Committee with the proposed Terms of Reference and membership detailed in Appendix D and delegate authority to that committee in terms of the same;

(iii)      so as to facilitate (c)(ii) above, provide the Head of Legal and Democratic Services with delegated authority to update the Committee Orders of Reference, as he deems necessary, to provide for the establishment of the Strategic Transformation Committee and to set a timetable of monthly meetings for the Strategic Transformation Committee;

(iv)      agree the establishment of a Transformation Fund through the release of £15million from the Council’s reserves as outlined in paragraph 6.2 of the report and that its use be reported to the Finance, Policy and Resources Committee as part of the Council’s financial statements each financial quarter;

(v)       agree that the Council’s reserves be restored as part of the future medium term financial strategy, as stated in paragraph 6.2 of the report, within a 5 year period;

(d)          Supporting Governance Framework

(i)        note the proposals for a supporting governance structure to underpin the Target Operating Model as outlined in section 6 of Appendix A;

(ii)       instruct the Head of Legal and Democratic Services to report to the Council by its meeting in March 2018 seeking the necessary approvals for a governance framework to support the implementation of the Target Operating Model; this will include a Scheme of Governance setting out the Terms of Reference for the Council, its revised committees and sub-committees and appropriate delegations to officers within the revised structure and a revised Council diary for 2018/19; and

(iii)      agree the distributive leadership principles set out in the Urban Governance discussion document within Appendix A and instruct the Chief Executive, the Council Leader and the Lord Provost, as the Council’s senior executive, political and civic leaders to consult and engage with relevant stakeholders and partners, including Aberdeenshire Council, the UK Government and the Scottish Government with a view to the Chief Executive reporting back to the Council by its meeting in March 2018 with proposals in relation to:

·         co-ordinating Council civic, political and executive leadership structures;

·         establishing revised regional structures for discussion and interaction; and

·         developing partnership models with both governments and other stakeholders offering interaction at executive team level within the Council.

Councillor Laing moved, seconded by Councillor Lumsden:-

That the Council approve the recommendations contained within the report subject to the following changes:-

(b)(iv)      agree the revised recruitment and selection process outlined in paragraph 5.5 of the report for the appointments to the Director posts, with a view to the posts being filled on a permanent basis by 1 April 2018, on the basis that the final decision on appointments would be taken by an Appointment Panel, to be chaired by the Convener of the Finance, Policy and Resources Committee, comprising the members of the Strategic Transformation Committee in consultation with the Chief Executive; and

(c)(ii)       agree the establishment of the Strategic Transformation Committee, to be chaired by Councillor Laing, with the proposed Terms of Reference and membership detailed in Appendix D and delegate authority to that committee in terms of same.

Councillor Flynn moved as an amendment, seconded by Councillor Greig:-

(1)      that the Council notes the content of the report and agrees that change is necessary within the organisation;

(2)      however, Council does not believe that the level of detail in the report provides the necessary assurances to members in relation to:-

(a)       the structure of the organisation beyond a proposed Tier 1 team;

(b)       how and where the £125million of savings over five years will be identified; and

(c)       the level of information which will be afforded to elected members through a new committee structure to ensure that democratic oversight and scrutiny is improved;

(3)      furthermore, Council believes that:-

(a)       the political and civic leadership roles should not be conflated as the role of Lord Provost should not be politicised;

(b)       a Strategic Transformation Committee should not be formed due to the fact that it includes just Group Leaders and that all democratically elected members should be involved at Full Council meetings throughout the process, including through additional meetings of the Full Council if required;

(c)       the appointment of any individual to the Council’s Tier 1 or Tier 2 teams should only take place with the input of elected members through an appointment panel; and

(d)       any new structure should include a senior post held by an educational professional with a specific remit for education; and

(4)      Council therefore instructs the Chief Executive, at the earliest opportunity, to provide a report to a meeting of the Full Council which addresses each of these points.

During the course of debate, Councillor Flynn had to leave the meeting due to personal circumstances. The Lord Provost stated that Councillor Greig, as seconder, would sum up for the amendment in the absence of Councillor Flynn.

On a division, there voted:-

For the motion  (23)  -  Lord Provost; Depute Provost; and Councillors Allan, Bell, Boulton, Lesley Dunbar, Duncan, Graham, Grant, Houghton, Hunt, Imrie, John, Laing, Lumsden, Macdonald, Avril MacKenzie, Malik, Mason MSP, Reynolds, Sellar, Jennifer Stewart and Wheeler.

For the amendment  (20)  -  Councillors Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Delaney, Jackie Dunbar, Greig, Henrickson, Hutchison, MacGregor, Catriona MacKenzie, McLellan, McRae, Nicoll, Samarai, Sandy Stuart, Townson and Yuill.

Absent from the division  (1)  -  Councillor Flynn.

The Council resolved:-

to adopt the motion.

In terms of Standing Order 29.7, Councillors Allard, Alphonse, Cameron, Cooke, Copland, Cormie, Delaney, Jackie Dunbar, Greig, Henrickson, Hutchison, MacGregor, Catriona MacKenzie, McLellan, McRae, Nicoll, Samarai, Sandy Stuart, Townson and Yuill intimated their dissent against the foregoing decision.