By Lookout Staff

May 25, 2010 -- Following last month’s cold reception from the City Council on City staff’s proposal for Big Blue Bus fare changes, the Council on Tuesday will hear new alternatives.

City staff says these modifications are needed because due to State and County transit subsidy reductions as well as increased operating costs, the bus service is facing a deficit of $6.4 million next fiscal year, an amount that will rise to $18.2 million by 2015 (last month’s City estimate had next fiscal year’s deficit at $6.1 million and the 2015 number at $16 million).

City staff is proposing two options that are almost identical, with the only difference being one calls for regular rides to go up from 75 cents to $1 and the other calls for a $1.25 charge. The other features of staff’s proposal includes an increase for seniors and disabled riders from 25 cents to 50 and no per-ride rate for students. But students would be offered discounted monthly passes of $40, half the cost of regular monthly passes. Seniors and the disabled would also be eligible for a $24 monthly pass.

Last month’s proposal increased the senior/disabled rate to 60 cents per ride, a change several council members feared would lead to home-bounding them. Also, that version eliminated the 50-cent transfer as a method to encourage interest in the $4 unlimited use day pass. Several council members blasted that concept. The 50-cent transfer is back with the new proposal. For the seniors and disabled, the transfer will cost 25 cents, up from the current 10 cents.

According to the staff report, service reductions will be necessary in the coming years, but with fare increases the cuts will be less severe and there can be a delay before they will go into effect (2012-2013 or 2013-14 if the higher regular fare is selected). Without fare increases, service reductions will begin in February.

Also on the Council agenda is a float-up review of the development agreement for a 284-room hotel at 710 Wilshire Boulevard. Project owner Maxser and Co., which owns the affordably priced Jolly Roger Hotel in Venice, wants to convert the exiting landmarked office building into a seven-story, 55-room hotel structure with nearly 7,000 square feet of ground-floor retail space and a 4,000-square-foot restaurant.

Additionally, the developer would construct a seven-story building with 229 guest rooms, 11,000 square feet of ground-floor retail space, a 3,500 square-foot restaurant and approximately 5,700 square feet of meeting rooms and hotel amenities such as a spa and gym.

Since the applicant is asking for greater height and mass than the zoning rules allow, a development agreement is required. An applicant must offer public benefits as part of a development agreement. Among the public benefits Maxser is offering at this point are construction of multi-family housing at 1218 Lincoln Boulevard with “type and affordability to be determined,” a pedestrian-oriented retail paseo and a widened sidewalk on Seventh Street, potential shared-parking opportunities and a local hiring preference

The general concept of theproject received the blessing of the Bayside District Corp. Board in June, with board members saying it would pump life into the outskirts of Downtown Santa Monica. But the homeowners group representing the area is opposed to it. Its leaders say they were led to believe this project would be a boutique hotel with minimal impact on the area.

The Council will not be voting on the project, as it still is only an early-stage proposal that could be greatly altered. But the Council members will be asked whether to direct staff to begin the development agreement negotiation process and to provide direction regarding public benefits.

Also on Tuesday’s agenda:
- Farmers’ Market rules regarding prepared food
- The expansion of Santa Monica’s ban on residential common area smoking to include other outdoor areas adjacent to doors and operable windows.
- The election of mayor and mayor pro tem
- A Santa Monica boycott of Arizona (For more on that, see Council member Calls for Santa Monica Boycott of Arizona, May 21, 2010. )