Water Official Amends Disclosures : Utilities: Santa Margarita engineer says he accepted $6,068 in gifts from two firms that he recommended for contracts.

The Santa Margarita Water District’s top engineer Friday filed amended financial disclosure forms saying he received thousands of dollars in gifts and entertainment from two engineering firms that he recommended for millions of dollars in contracts.

Bill Dye, the district’s top engineer since 1979, disclosed that he had accepted more than the prescribed $250 in gifts during each of four consecutive years from Robert Bein, William Frost & Associates, and for three consecutive years from MacDonald-Stephens Engineers.

The two engineering firms provided Dye with $6,068 in gifts from 1989 to 1992, according to his newly amended statements of economic interest. Dye belatedly reported that he accepted more than 260 meals and a $116 stay in an unidentified motel at Bein Frost’s expense, and about 90 meals and other entertainment from MacDonald-Stephens.

The two firms have been awarded nearly $20 million worth of contracts by the district since 1989, and were repeatedly recommended by Dye in apparent violation of the state’s Political Reform Act. The state law requires public officials to abstain from doing anything to influence contract awards involving gift-givers for one year after accepting gifts valued at more than $250. Dye also reported receiving $656 in meals and other entertainment over the four-year period from two other engineering firms--Dan Boyle Engineering and Wal-Con Construction--that received lucrative contracts. But because the gifts from these firms did not exceed $250 in any one year, Dye was free to recommend those firms for contracts.

Dye met this week with investigators from the Orange County district attorney’s office, who are conducting a criminal investigation into potential conflict-of-interest violations at the water district. He did not return a call for comment. Through a secretary, Dye referred all inquiries to John J. Schatz, the district’s general manager.

Schatz said he had done his part in asking Dye and others to file amended forms, and said it was up to the district attorney’s office to determine whether any criminal charges are warranted.

In a letter to Schatz accompanying his amended statements, Dye said his original financial disclosure forms neglected to show any gifts in all his years with the district because of his understanding of the law at the time, and guidance provided by the district.

His statements, Dye said, “were always filed in good faith.”

Dye and the district’s operations director, Robert J. Regan, filed their amended statements after The Times disclosed that Bein Frost had spent nearly $12,000 entertaining Dye and Dan Ferons, his chief assistant, from 1989 to 1992. Ferons, who was also invited to visit the district attorney’s office this week, was not required to file statements of economic interest until this year.

Regan filed amended returns for 1992 and 1993, the two years he has been required to file as a “designated employee.” Before he was named assistant to the district’s general manager, he was not required to make the annual filing.

Regan reported receiving $1,407 over two years from MacDonald-Stephens, Bein Frost, Dan Boyle Engineering, Wal-Con and another company that is identified only as HDR in Irvine. In previous returns, Regan said he had received no gifts.

In a letter explaining the discrepancy, Regan said he had filed previous forms “in good faith and in accordance with what I believed to be the correct information to the best of my knowledge at the time.”

Now, he said, “in light of recent events and subsequent education received on my part, I now understand that in accordance with the law I should have filed in a different manner. . . .”

The acceptance of gifts from contractors by district officials who recommended the firms for contracts has been the subject of a joint investigation by the district attorney’s office and the FBI that has lasted nearly a year. Prosecutors say a decision on whether to file criminal charges is expected soon.

Meanwhile, the district’s board of directors voted Friday to fill a vacancy in its membership caused by the resignation of longtime Chairman Don B. Schone. Schone resigned the day The Times reported that he had accepted--but did not disclose--trips to Mexico that were paid by Bein Frost.

Board members unanimously elected Betty Olson, 46, a UC Irvine professor of environmental science for 20 years and former member of the Irvine Ranch Water District. Olson, considered an expert in water research, is to be sworn in as a new board member next week.

In last November’s election for four board seats, Olson appeared to receive enough votes to win a spot on the board, but lost because of a miscalculation by the Orange County registrar of voters.

On Friday, Olson was chosen from a field of 17 candidates.