This neighbor is a contractor/engineer (builds homes in Laguna Beach) and from what he tells me, in the end our Federal tax bucks will be the deep pockets. The city will be sued for allowing rebuilding after the 1978 slides; the Army Corps of Engineers will isolate that area from future building, and from that point on the city will go after the state which'll go to the feds - all a nice slow process; but you and I will end up taking it in the hindquarters.
"the Army Corps of Engineers will isolate that area from future building"
I was amazed that they or any other local agency didn't already have this in effect. Strange.