Landslide costs now at $35M; city may pay up to $9M

Costs to repair Bluebird Canyon after the June 1, 2005 landslide have ballooned to $35 million, and city officials aren’t sure how much of that will be paid for by the Federal Emergency Management Agency.

The city will submit a request to FEMA for $33 million for the Bluebird Canyon and Flamingo Road restoration, Laguna Beach City Manager Ken Frank told the City Council Tuesday.

“It is 99.99% done,” Frank said of the repairs needed to restore the area after the landslide. “The total cost will be $35 million — give or take. FEMA has cleared most of the cost overruns already. Flamingo Road is the only one that has not been cleared and it is the biggest.

“We probably will have an announcement by this fall. My best guess is that it will cost the city $2 million. The worst case scenario would be $9 million.”

Laguna’s share of the restoration costs will be paid from the Measure A one-half cent sales tax increase approved by voters. Frank said the city would have about $4 million in the bank by June 30.

The FEMA decision will be put before the Measure A Oversight Committee, which will make recommendations for the expenditures.

— By Barbara Diamond