OCTA Director Admits Conflict in Disney Votes : Transit: Eileen Krause says participation was a ‘dumb mistake.’ Her firm has a business contract with Disney.

In what she admitted was a conflict of interest, Orange County Transportation Authority board member Eileen Krause has cast three votes since last year on a parking garage that will benefit Disneyland, even though her company earned $17,000 through a service contract with the park.

“It was just a dumb mistake. It never occurred to me that it could be a conflict of interest. They’re just a customer of mine,” said Krause, an alternate director on the OCTA board. She is allowed to vote whenever a director is absent or abstains.

Krause, a Dana Point councilwoman, and her husband, Robert, own Air Cleaning Technology, a Santa Ana-based company that services air pollution control equipment at several Disneyland restaurants and others in the county. She said Disney paid her company $17,000 for services in 1993.

Under the Political Reform Act, local officials are banned from taking part in governmental decisions affecting any person or company that has provided them with $250 or more in income in the previous year. Violators can be reprimanded, fined or even prosecuted criminally.

“Really, this was an honest mistake,” Krause said. “They’re a customer and nothing else. It was not like I voted to promote Disneyland to increase the return on an investment. I don’t own Disney stock or otherwise have a financial interest in the company.”

OCTA attorney Ken Smart said Krause rescinded the three votes this week but said that will not affect the board’s action. He said that he advised Krause to abstain from future votes involving the $223-million garage, which will be built across the street from Disneyland.

According to Krause, she was unaware of the conflict until it was brought to her attention by a local reporter.

“I am convinced she was unaware of the conflict of interest,” Smart said.

The seven-story parking garage, which will be built on Clementine Street between Freedman Way and Katella Avenue, is designed to accommodate the Walt Disney Co.’s planned Westcot expansion. The project is being funded with federal, state and local funds.

Krause’s latest vote for the project, known as the Orange County Intermodal Transportation Center, came on Monday, when she voted with other board members to approve $32 million in OCTA funds for construction. She was sitting in for Anaheim Councilman Irv Pickler, who was absent.

Krause said that she cast the other two votes in 1993 for Santa Ana Mayor Dan Young, who routinely abstains from all votes on the garage because his wife owns Disney stock. Whenever Young abstains, an alternate director votes for him.

Krause, who has been a Dana Point councilwoman since January, 1989, is scheduled to step down from the OCTA board in June, when her council term expires. She said she will not run for reelection.