Laguna Seeks 3rd Opinion on Slide Area : Geology: City will hire another firm to determine whether the ancient slippage actually exists under fire-scarred Mystic Hills neighborhood.

Faced with the emotionally charged question of what to do about an ancient landslide that has halted rebuilding in one fire-scarred neighborhood, the Laguna Beach City Council voted Monday to get a third opinion on whether a landslide actually exists.

At the same time, the council voted to take steps to establish an assessment district that would raise money for work to stabilize the hillside, if that becomes necessary.

The special meeting followed an intense 3 1/2-hour session Saturday between residents, geologists and city staff, which yielded no consensus about what the city’s next step should be.

So far, property owners whose homes burned and others whose homes did not expressed widely varying viewpoints. While some have tentatively endorsed plans for an assessment district to raise $1 million for stabilization work, most who spoke at Monday’s council meeting demanded another opinion from outside geologists.

David Horne, president of the Mystic Hills Homeowners’ Assn., urged the council to move quickly.

“It is very important that this thing move along as quickly as possible. This is not business as usual,” he said. “It is critical that people get back on track. It is critical that people feel there is a light at the end of the tunnel.”

Some residents have questioned whether an ancient landslide is a threat to anything other than property values in the area.

“There’s a lot of hurt going on,” said Robert L. Stollar, a member of the Mystic Hills Homeowners’ Assn.’s landslide committee, whose home burned in the blaze but whose property is above the landslide area. “People lost their homes in the fire, want to rebuild and can’t. So it’s a real tough one.”

The city is refusing to issue building permits until at least the question of who will pay for the hillside restabilization project has been answered.

City Manager Kenneth C. Frank had strongly recommended that property owners unite and form an assessment district to raise the money.

But owners of homes that survived the Oct. 27 fire are not required to do anything, and it has been unclear how much cooperation the city could muster.

Ursula Denny, a Skyline Drive resident, said she is being asked to join in the assessment district although no stabilization work is required on her lot.

“We don’t think it’s fair. If I need to do work on my property, I will do work on my property. But I don’t think I need to pay for somebody else’s property three blocks away.”

Frank has said all residents will benefit by helping to resolve the problem since news of the ancient landslide has caused area property values to plummet.

“They are never going to be restored until it is corrected,” he said.

As a result of Monday’s unanimous vote, Mystic Hills property owners and city staff will choose from one to three geologists to review other geologists’ previous findings and to determine if the slide exists and if it’s stable. The city also appropriated $12,500 to pay for the additional work. Affected residents may reimburse the city for a portion of that later.

A special meeting will be held at City Hall at 7 p.m. Wednesday to select the latest geologist.

A public hearing for the possible formation of an assessment district has been scheduled for June 14.

Two dozen lots, including 14 rendered vacant by the Oct. 27 blaze, sit atop the Mystic Hills slide area. Some 38 properties could be directly or indirectly affected, according to a report.

Geofirm, the company that made the report, suggested a complex plan for securing the hillside which involves various measures from installing a retaining wall to sinking 90-foot rods into the earth and tying them back with cables.

Times staff writer Rebecca Trounson contributed to this report.