President José Huizar called the meeting to order at 10:17 a.m.

The following Members were present: Ms. Julie Korenstein, Mr. Jon Lauritzen, Mr. David Tokofsky, and President José Huizar. Ms. Marlene Canter and Mr. Mike Lansing arrived at
10:18 a.m. Ms. Marguerite Poindexter LaMotte was absent.

Mr. Lauritzen led the Pledge of Allegiance.

Mr. Ken Bernstein representing the Los Angeles Conservancy

Mr. Tony Ricasa representing Senator Gilbert Cedillo

Mr. Jose Veliz

Ms. Maria Estrada

Mr. Manuel Huerta representing the Mexican American Legal Defense and Educational Fund

Mr. Tokofsky moved the following motion which was read by President Huizar:

Whereas, The Los Angeles Unified School District has acquired the 23.7 acre Ambassador Hotel property on Wilshire Boulevard for a much-needed kindergarten-12 grade educational complex, also known as the Central Los Angeles Area New Learning Center No. 1;

Whereas, The District is embarking on a massive school construction program, with approximately 80 new schools planned in the next five years;

Whereas, The District has spent $80 million to date in the pursuit of the Ambassador Hotel site;

Whereas, The District is in the process of completing its third environmental document to date for this site;

Whereas, The Draft Environmental Impact Report (DEIR) lays out five alternatives for the disposition of the Ambassador Hotel Site and the Board of Education of the City of Los Angeles will decide on which alternative to pursue in the upcoming months;

Whereas, The District's primary mission is the education of our community's youth, with more than 3,800 students who live in the surrounding community who are forcibly bused out of their neighborhoods every day;

Whereas, The Ambassador Hotel site is among the most complicated projects under development by the District;

Whereas, The District's first and foremost goal regarding the disposition of the Ambassador Hotel site must give priority to the need for seats for students, and the students' academic instructional program;

Whereas, These needs must be balanced with the desire to preserve the socio-cultural and historic resources present at the Ambassador Hotel site, the concerns of other stakeholders, and must recognize the limited dollars available for new school construction;

Whereas, The Ambassador Hotel is a unique structure of significance, home of the Cocoanut Grove nightclub, the host to six Oscar ceremonies, the site where Richard Nixon wrote his 1952 "Checkers" speech and the site of the tragic 1968 assassination of Robert Kennedy;

Whereas, Adaptively reusing the Ambassador Hotel for education purposes provides an opportunity to demonstrate how preservation can provide a meaningful solution to the educational needs of the children of Los Angeles;

Whereas, Proposition 40, the State Park Bond passed by California voters in 2002, contains $128 million in unallocated funding for the preservation of historic resources throughout the State;

Whereas, Proposition 47, the Kindergarten-University Public Education Facilities Bond Act of 2002 approved by the voters in November 2002, sets aside $50 million for joint-use school projects; and

Whereas, These funds can further enhance the feasibility of rehabilitating the Ambassador Hotel for educational use, and increases the District's options for creating joint-use facilities and park facilities; now, therefore, be it

Resolved, That the Board of Education of the City of Los Angeles requests the California State Legislature and the Governor appropriate $40 million in Proposition 40 funds for costs associated with preservation of the Ambassador Hotel site; and

Resolved further, That the Board of Education requests the California State Legislature and the Governor appropriate $15 million in Proposition 40 funds for costs associated with the development of a park along Wilshire Boulevard, and $2.5 million in Proposition 47 funds for costs associated with a joint-use development of the Cocoanut Grove Auditorium.

After discussion, Mr. Huizar announced that he omitted to read the last "Resolved" with the following amendment, which was accepted as a friendly amendment by the maker and seconder:

Resolved, That by the adoption of this resolution, the Board of Education requests such state funds to expand the opportunities available to the Board in its deliberations regarding the Ambassador Hotel site, and this request cannot bind will not commit the District to any option (under the June 2003 Draft EIR), outcome, or final configuration of the site.

The final motion reads:

Whereas, The Los Angeles Unified School District has acquired the 23.7 acre Ambassador Hotel property on Wilshire Boulevard for a much-needed kindergarten-12 grade educational complex, also known as the Central Los Angeles Area New Learning Center No. 1;

Whereas, The District is embarking on a massive school construction program, with approximately 80 new schools planned in the next five years;

Whereas, The District has spent $80 million to date in the pursuit of the Ambassador Hotel site;

Whereas, The District is in the process of completing its third environmental document to date for this site;

Whereas, The District's primary mission is the education of our community's youth, with more than 3,800 students who live in the surrounding community who are forcibly bused out of their neighborhoods every day;

Whereas, The Ambassador Hotel site is among the most complicated projects under projects under development by the District;

Whereas, The District's first and foremost goal regarding the disposition of the Ambassador Hotel site must give priority to the need for seats for students, and the students' academic instructional program;

Whereas, These needs must be balanced with the desire to preserve the socio-cultural and historic resources present at the Ambassador Hotel site, the concerns of other stakeholders, and must recognize the limited dollars available for new school construction;

Whereas, The Ambassador Hotel is a unique structure of significance, home of the Cocoanut Grove nightclub, the host to six Oscar ceremonies, the site where Richard Nixon wrote his 1952 "Checkers" speech and the site of the tragic 1968 assassination of Robert Kennedy;

Whereas, Adaptively reusing the Ambassador Hotel for education purposes provides an opportunity to demonstrate how preservation can provide a meaningful solution to the educational needs of the children of Los Angeles;

Whereas, Proposition 40, the State Park Bond passed by California voters in 2002, contains $128 million in unallocated funding for the preservation of historic resources throughout the State;

Whereas, Proposition 47, the Kindergarten-University Public Education Facilities Bond Act of 2002 approved by the voters in November 2002, sets aside $50 million for joint-use school projects; and

Whereas, These funds can further enhance the feasibility of rehabilitating the Ambassador Hotel for educational use, and increases the District's options for creating joint-use facilities and park facilities; now, therefore, be it

Resolved, That the Board of Education of the City of Los Angeles requests the California State Legislature and the Governor appropriate $40 million in Proposition 40 funds for costs associated with preservation of the Ambassador Hotel site,

Resolved further, That the Board of Education requests the California State Legislature and the Governor appropriate $15 million in Proposition 40 funds for costs associated with the development of a park along Wilshire Boulevard, and $2.5 million in Proposition 47 funds for costs associated with a joint-use development of the Cocoanut Grove Auditorium, and be it finally

Mr. Lorenzo Tyner, Budget Director, provided a brief overview of the final budget. He indicated that only one large item has changed. That item has to do with the proposal to include savings from the Staff Development Buy Back Days.

Mr. Tokofsky moved that the report be adopted. Mr. Lansing seconded the motion.

Superintendent Romer and staff responded to questions from Board Members regarding overtime, local district funding, restricted balances, furlough days, lottery, consulting services and other subjects.

On motion by Mr. Tokofsky, seconded by Ms. Korenstein, and by general consent, the meeting recessed to Thursday, September 4, 2003, at a time to be determined. Ms. LaMotte was absent.

Ms. Canter led the Pledge of Allegiance.

With the consent of the Board, Mr. John Perez, UTLA President, was given an opportunity to address the Board.

Superintendent Romer responded to questions raised by Board Members and expressed his concerns regarding the District's budgets for the current and the 2004-05 fiscal years. He stated he expected the District will be facing approximately a $400-$650 million deficit in the next fiscal year. Superintendent Romer suggested the Board delay the proposed furloughs until mid-year and keep the present health plans until the audit is completed in about 90 days and then make any necessary adjustments to the plans.

Superintendent Romer, Mr. Tyner, and staff responded to questions by Board Members.

Mr. Lansing moved the following amendment:

To instruct the Superintendent to restore the following reductions the Board committed to in
May and June of 2003 in the following order, if funds are available:

1. $50 per student for school reserves

2. The furlough for employees earning under $100,000

3. $40 per student for school reserves

4. The furlough for employees earning above $100,000.

Ms. Canter seconded the motion.

In response to questions by Board Members on the amendment, Mr. Richard Sheehan, Special Counsel to the Board, indicated it is permissible to reintroduce an amendment restating what the Board previously approved in June.

Mr. Jefferson Crain, Executive Officer of the Board, indicated the minutes would reflect a motion by Mr. Lansing restating previously adopted priorities to be included in the Executive Summary of the Budget.

After discussion, the maker of the motion, with the concurrence of the seconder, withdrew the motion.

Ms. Korenstein moved the following amendment:

1.Instruct the Superintendent to work with the bargaining units to develop an approach to control anticipated increased health program costs for Fiscal Year 2004-05, including cutting costs by those items listed on the attached.

2.Instruct the Superintendent to fully fund health benefits for fiscal year 2003-04 as currently proposed by the Health Benefits Committee and to eliminate the furlough for all employees and make these two items a top priority for the use of available ending year balances, carryover funds, or any other funding available.

3.Instruct the Superintendent to identify the additional $25 million that is necessary to fully fund health benefits and eliminate the furloughs, through expenditure reductions and/or revenue enhancements prior to the submission of the budget documents to the County (with prior written notification to the Board of Education).

4.Instruct the Superintendent to report back to the Board in January or February of 2004 with a status on the District's financial condition.

Mr. Lauritzen seconded the motion.

Superintendent Romer and Mr. Tyner responded to questions from Board Members regarding the amendment.

President Huizar suggested the following amendment, which was accepted as a friendly amendment by the maker and seconder of the motion:

1.Instruct the Superintendent to work with the bargaining units to develop an approach to control anticipated increased health program costs for Fiscal Year 2004-05, including cutting costs at a minimum by those items listed on the attached.

It was noted that the attachment entitled Plan Design Changes and Savings represents half year savings only.

Ms. LaMotte suggested the following amendment, which was accepted as a friendly amendment by the maker and seconder of the motion:

4. Instruct the Superintendent to report back to the Board in January or February of 2004 with a status on the District's financial condition and a progress report on the health benefit proposals for 2004/05 fiscal year.

On roll, call the motion to amend the 2003-04 Final Budget was adopted, 6 ayes, 1 no, Mr. Lansing.

The final amendment reads:

1.Instruct the Superintendent to work with the bargaining units to develop an approach to control anticipated increased health program costs for Fiscal Year 2004-05, including cutting costs at a minimum by those items listed on the attached.

2.Instruct the Superintendent to fully fund health benefits for fiscal year 2003-04 as currently proposed by the Health Benefits Committee and to eliminate the furlough for all employees and make these two items a top priority for the use of available ending year balances, carryover funds, or any other funding available.

3.Instruct the Superintendent to identify the additional $25 million that is necessary to fully fund health benefits and eliminate the furloughs, through expenditure reductions and/or revenue enhancements prior to the submission of the budget documents to the County (with prior written notification to the Board of Education).

4.Instruct the Superintendent to report back to the Board in January or February of 2004 with a status on the District's financial condition and a progress report on the health benefit proposals for 2004/05 fiscal year.

On motion by Mr. Lauritzen, seconded by Mr. Korenstein, the meeting was adjourned by general consent at 4:41 p.m.

APPROVED BY THE BOARD: September 23, 2003

__________________________________ ____________________________________
JOSE HUIZAR JEFFERSON CRAIN
PRESIDENT EXECUTIVE OFFICER OF THE BOARD