At an ALACE council meeting last week, Mr Penn stepped down as honorary secretary and will be replaced by outgoing chairman Alastair Robertson, chief executive at Three Rivers DC, next month.
Northampton BC chief executive Roger Morris will take over from Mr Robertson as chairman.
Mr Penn, who retired from Bradford on stress-related grounds after protracted negotiations last month, said Mr Miles had wanted to scale down the work he did for the association (LGC, 18 December, 1998).
Mr Penn will act as a back-up to Mr Miles, who has been representing ALACE members since 1986 when West Yorkshire CC, where he was chief executive, was abolished.
Mr Penn said that, within a year, Mr Miles's role would drop to that of back-up and he would do the bulk of the consultancy work himself.
Mr Penn insisted the ALACE work would not jeopardise his health: 'I've got no full-time job and neither do I want one. But I'm not ill and feel quite able to take on this. It's a nice little thing to be involved with.'