Laguna to Let Some Mystic Hills Residents Rebuild : Geology: A new report questioning the boundaries of an ancient landslide prompts officials to commission another study. Fire victims must prove their lots are on stable ground before constructing homes.

Faced with differing opinions from geologists about the size of an ancient landslide in the Mystic Hills community, the Laguna Beach City Council agreed Tuesday to let fire victims there rebuild if they can prove their lots are stable.

The council also agreed to spend another $25,000 to pinpoint the southern boundary of the potentially unstable area, which includes several rows of homes above City Hall.

It was evident from applause that erupted regularly throughout the evening that most in the audience wanted the city to stand aside so they can begin rebuilding.

But with conflicting geological findings clouding the question of whether a large landslide exists under the lots, others urged the council to do further studies. Until they know whether their lots are on stable ground, some fear future property values will suffer.

“This has been raised, and until its resolved one way or the other . . . it’s a lose-lose deal,” said Roger Stewart, who lost his Mystic Hills home in the October firestorm. “I don’t see a light at the end of this tunnel. I see pay, pay, pay. Get in and maybe never get out.”

The intense 3 1/2-hour session began with a report released by the city Monday questioning the size of previously defined landslide.

The report, by Perry Ehling, a South Pasadena engineering geologist, and Bing Yen, an Irvine geotechnical engineer, said the slide area appeared smaller than other geologists had concluded. Ehling and Yen recommended that at least some of the residents be allowed to stabilize their land as necessary and begin rebuilding.

A previous 45-day ban expired on Tuesday, and city staff had recommended that the council consider extending the moratorium 10 1/2 months, depending on what transpired at the meeting.

The rebuilding effort screeched to a halt last month when Geofirm, a Laguna Beach consulting firm hired by the city, reported the ancient landslide was under about two dozen Mystic Hills properties, including 14 incinerated in the October blaze.

Geofirm said 38 properties could be directly or indirectly affected and recommended an area-wide stabilization project, which property owners would have had to pay for. An Irvine geological firm, Leighton & Associates Inc., confirmed Geofirm’s findings.

But many lot owners expressed doubt that an ancient landslide poses a present danger and some even questioned its existence, prompting the city to hire two resident-endorsed geologists to give a third opinion.

That report threw into question the existence, or at least the size, of the tear-shaped landslide described by Geofirm. Ehling said small, ancient landslides probably exist in the northern portion of the area outlined by Geofirm but that he doubted the larger slide exists.

He recommended further studies be done to determine the southern boundaries of the slide.

“I think it’s doubtful that the large slide that has been shown there actually exists, but we still have a lot of additional work to be done to find out if my suspicion is correct or not . . . particularly in the southern half,” Ehling said Monday.

Mystic Hills residents, who have been battered by bad news of late, welcomed what one called the “extremely positive aspects of the report.” Polly Sloan, president of the Mystic Hills Ancient Landslide Committee, said property owners met Monday night to discuss the latest findings and plan their strategy.

The residents also successfully persuaded the council Tuesday night to drop the idea of forming an assessment district to pay for the $1-million restabilization project recommended by Geofirm.

Instead, the council voted 4 to 0 to allow private geotechnical consultants to devise solutions for individual lots.

This could be a bitter victory for residents in the most unstable areas, since city officials have said that without the support of an assessment district, some individual property owners may have to pay $100,000 to steady their land.

Councilwoman Lida Lenney had to leave before the vote.