BOARD OF EDUCATION OF THE CITY OF LOS ANGELES
Governing Board of the Los Angeles Unified School District

SPECIAL CLOSED SESSION MINUTES
9:30 a.m., October 23, 2001

On call of the President, the Board of Education of the City of Los Angeles, acting as the Governing Board of the Los Angeles Unified School District, met in public prior to Closed Session on October 23, 2001, in Room H-160, Los Angeles Board of Education Administrative Offices, 450 North Grand Avenue.

President Caprice Young called the meeting to order at 9:41 a.m.

The following Board Members were present: Ms. Genethia Hudley Hayes, Ms. Julie Korenstein, Mr. David Tokofsky and President Caprice Young. Ms. Marlene Canter, Mr. José Huizar and Mr. Mike Lansing were absent.

Mr. Mike Russell, Deputy General Counsel, and Mr. Richard Sheehan, Special Counsel to the Board, were present.

Mr. Tokofsky led the Pledge of Allegiance.

Mr. Jefferson Crain, Executive Officer of the Board, announced that the Board would be considering the following in closed session:

CLOSED SESSION PURPOSE AND AUTHORITY (Government Code Section)

1. Conference with Legal Counsel (Section 54956.9)

Existing Litigation

Ambassador Associates v. Los Angeles Unified School District, et al.
Los Angeles Superior Court Case No. BC 102114

Los Angeles Unified School District, et al. v. David Cartwright, O'Melveny & Myers, LLP, et al.
Los Angeles Superior Court Case No. BC 216899

Anticipated Litigation

Pursuant to Government Code Section 54956.9(b)(1), the Board of Education will receive the advice of counsel regarding the Cypress Modular matter.

2. Personnel (Section 54957)

Public Employee Discipline/Dismissal/Release

3. Real Estate Negotiations (Section 54956.8)

The Board of Education will instruct its negotiators with regard to the following site:

Proposed Site: 17th Street and Grand Avenue
District Negotiators: James McConnell and Scot Graham
Property Owner: Maguire Partners

- - - -
At 9:43 a.m., the Board recessed the public portion of the meeting to begin the
closed portion. Closed Session discussion began at 10:00 a.m., recessed at 11:35 a.m.,
resumed at 12:34 p.m., and ended at 1:06 p.m. All Board Members were present
during the closed portion of the meeting with the exception of Mr. Lansing.
- - - -

The Board reconvened the public portion of the meeting at 3:13 p.m. The following Board Members
were present: Ms. Canter, Ms. Hayes, Mr. Huizar, Ms. Korenstein, and President Young. Mr. Lansing and Mr. Tokofsky were absent.

At the request of the President, Mr. Sheehan announced:

The Board has approved the initiation of termination proceedings for three certificated teachers.

The vote was 6 ayes. Mr. Lansing was absent.

The Board has also approved the settlement of the threatened litigation by Cypress Modular, Inc., in the amount of $96,633.75, after offsets.

The vote was 6 ayes. Mr. Lansing was absent.

The Board adopted resolutions approving the settlement of all litigation with the owners of the Ambassador property and the purchase of the site in the amount of $25 million plus the payment of approximately $3.5 million in back taxes.

The vote was 6 ayes. Mr. Lansing was absent.

On motion by Ms. Korenstein, seconded by Ms. Hayes, the meeting adjourned by general consent
at 3:15 p.m. Mr. Lansing and Mr. Tokofsky were absent.

APPROVED BY THE BOARD: November 13, 2001

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CAPRICE YOUNG JEFFERSON CRAIN
PRESIDENT EXECUTIVE OFFICER OF THE BOARD