Approval to Rebuild Contains Conditions : Malibu: City plan would expedite the permit process for fire victims who assume the legal risk of living in landslide areas. Those who refuse to sign waivers would have to conduct geological tests.

Malibu is offering fire victims in landslide areas a speedier, less costly way to get reconstruction permits--as long as they assume the legal risk of living on unstable land.

If these residents sign liability waivers, the city will allow them to rebuild without having to meet a longstanding requirement that they first conduct geological studies of their property.

The waivers, which would indemnify the city against liability for property damage or injuries stemming from landslides, are proving controversial. At a meeting Wednesday, where city officials discussed the issue with about 300 residents, some homeowners said they felt the city was making it hard for them to rebuild.

“I feel betrayed,” said Jody Stump, whose Rambla Vista home was burned to the ground. “We aren’t seeking a build permit, we are seeking a rebuild permit. I want my house back and this is onerous. I had a perfectly good house . . . and to me, (the lot) is no different now.”

Said Ron Goldman, a member of a fire victims group advising the city on reconstruction efforts: “All of this has a chilling effect on our ability to get loans, on our resale value and on and on.”

City Manager David Carmany said the City Council will review the issue at its March 28 meeting. Residents are expected to press for changes, mindful that two council seats are up for election in April.

Complicating the rebuilding in Malibu is the geologic status of much of the property burned in the Nov. 2 wildfire.

Using state and federal landslide maps, city engineers and a geologist have determined that about 85% of the 280 residents whose homes burned down in east Malibu were sitting on potentially active landslides.

To protect the city from litigation arising from future slides on such property, city attorneys advised the council to approve the waiver policy.

Homeowners who do not sign a waiver must conduct geological surveys that show the land is stable before they can get a permit. Such surveys are required in the building code the city adopted from the county when it incorporated.

The surveys, which involve geologic drilling, could cost a homeowner $5,000 to $50,000, according to residents who have received estimates for the work. Once the survey is complete, the city reviews it and also studies historic geologic information before reaching a final decision on the permit application.

Owners of property that is found to be stable would receive a permit to rebuild and would not be required to sign a liability waiver. Those who own land deemed unsafe would have to take steps to stabilize the land--shoring up a hillside, for instance--before they could receive a permit to rebuild.

Many residents at Wednesday’s meeting said they were being discriminated against because, unlike other fire victims, they must spend time and money to satisfy the city’s geological approval requirements. Others attacked the city for being vague about what was considered geologically hazardous.

Goldman said he worried that residents who sign the waiver could become liable for a wide range of lawsuits against the city.

“If you have to sign a waiver . . . and someone downstream from you says they want to sue the city,” said Goldman, “the city will get a notice and they’re going to ask you what lawyer you’re going to hire.”