Ex-Mayor Fined for Violating Reform Act

Former Dana Point Mayor Eileen Krause has been fined $2,500 by the state Fair Political Practices Commission for violating the Political Reform Act in 1994.

Krause, a councilwoman in Dana Point for six years, was an alternate member of the Orange County Transportation Commission when she voted on three occasions to approve a contract awarding funding for a $223-million parking garage that would have benefited the Walt Disney Co., according to a commission report. The commission ruled that Krause violated conflict-of-interest rules, because her own business, Santa Ana-based Air Cleaning Technology, also does business with Disney.

Krause said she did not realize Disney would be a benefactor. When she was made aware of the problem, she abstained on all future votes, she said.

“I didn’t realize at first I had a conflict,” Krause said Thursday. “When I found out, I made a public announcement at the next board meeting and abstained from then on.”

Air Cleaning Technology, which Krause has owned since 1977, sells and installs air pollution control equipment. Krause said her company sold Disney equipment for various restaurants inside Disneyland.

The parking garage was to have been built next to the proposed Disneyland expansion called Westcot. Disney subsequently abandoned the Westcot expansion, and the garage was never built.