ELECTIONS CITY COUNCIL : Galanter Foe Accused of Ties to Builder PAC : Campaign: 6th District challenger Gray denies any contact with the group, chaired by her boss, Supervisor Dana. But the group admits using her name to solicit funds.

A campaign official for Los Angeles City Councilwoman Ruth Galanter has accused challenger Mary Lee Gray of breaking election finance laws by working with an ostensibly independent political action committee that is heavily supported by developers.

Galanter campaign consultant Steven Glazer charged in a letter to Gray last week that the challenger is “cooperating with an ‘independent campaign’ ” sponsored by the Southern California Caucus, a pro-development organization. State law prohibits politicians from directing “independent” committees, so that such groups cannot be used to disguise a candidate’s campaign contributions and expenditures.

A copy of Glazer’s complaint was delivered to the city attorney’s office. A spokesman for the office said late last week that it was premature to comment.

Gray, who is on leave from her job as a chief deputy to Los Angeles County Supervisor Deane Dana, vehemently denied that she has joined forces with the Southern California Caucus.

“I am not even aware of this,” Gray said. “I haven’t talked to any of these people.”

Glazer said in an interview that his accusation is based partly on the fact that Dana, Gray’s boss, chairs the political action committee. Glazer also noted that the group has invoked Gray’s name in recent fund-raising efforts.

Tim Carey, director of the Southern California Caucus, said the organization has not campaigned, and will not campaign, on behalf of Gray in the 6th Council District, where Gray is one of six candidates facing Galanter in an April 9 primary. Carey said the group “may meet and decide later” to participate in a June runoff, which will be held if none of the candidates receives more than 50% of the primary vote.

Gray is considered a leading challenger in the 6th District, which includes Venice, Westchester and the Crenshaw District. But any link to the pro-growth political action committee could damage her efforts to portray herself as an opponent of big builders.

Gray and Galanter’s other challengers have tried to make growth the major issue of the campaign, arguing that the incumbent has not done enough to fight major developments in the district. The Southern California Caucus--founded in 1987 by developers who opposed the successful cityhood drive in the San Fernando Valley community of Santa Clarita--has since launched independent campaigns in several cities. Typically, the group sends out last-second “hit” mailers that attack candidates it opposes. In recent elections, for example, caucus-financed mailers reported that a Lawndale City Council candidate had not paid his taxes and that a Palmdale City Council hopeful had been convicted of drunk driving.

The caucus receives most of its money from builders and business people. Shopping center developer Alexander Haagen is a member of the group’s board of directors. Paragon Homes Inc. of Santa Monica, the Redondo Beach Pier and Lessee’s Assn., and Western Waste Industries are among its recent contributors.

State campaign finance laws say independent committees can campaign for candidates as long as their expenditures are “not made to or at the behest of the affected candidate.”

“There cannot be communication between the independent committee and the candidate’s campaign,” said Jay Greenwood, a spokesman for the state Fair Political Practices Commission. The laws are supposed to prevent candidates from evading fund-raising restrictions by directing campaigns through supposedly independent committees, Greenwood said.

Glazer charged that Gray’s connection to the caucus is clear because the candidate has served for 11 years as Dana’s deputy.

Dana denied that the Southern California Caucus is aiding Gray’s campaign. But, in a telephone interview, he left open the possibility that the caucus could play a role for her.

The organization, Dana said, is “an independent committee and they can do other things for her. They can’t put out a Mary Lee Gray mailer as such, but they can raise money and do things.”

The supervisor said he is not sure what those things might be. He said he is not aware of the committee’s daily activities because he only recently was named its chairman, replacing retired Supervisor Pete Schabarum.

Dana referred additional questions to Carey.

Carey acknowledged that in letters he recently sent to five potential contributors, he said the caucus supports candidates “like Mary Lee Gray.” A firm hired to solicit funds for the caucus also mentioned Gray’s name in its telephone pitch to potential contributors, Carey said.

But he insisted that any money collected through these efforts would go to the group’s general fund and not be used in the 6th District race.

Carey said he used Gray’s name to help potential donors identify the caucus’ political leanings. The caucus “supports pro-business candidates, and between her and Ruth Galanter, (Gray) is the pro-business candidate.”

One businessman, however, said a telephone solicitor told him a donation to the caucus would support “an independent campaign for Mary Lee Gray.”

The businessman, who asked not to be named, said: “I hung up the phone with the understanding they were raising money” for Gray.

Gray said she is upset by the political action committee’s use of her name. “Maybe that is why I am having trouble raising money,” Gray said.

Her campaign consultant, Harvey Englander, said he told Carey to stop using Gray’s name.