Council members are expected to hold back on selling advertising on the sides of buses to further increase revenue.

The fare increases will affect all riders, except for children under 6, who will still ride free.

The new adult fares will go up to $2, youth fares will increase to $1 and bus pass prices will rise for everyone.

Although adult and youth monthly passes will rise to $40 and $20, respectively, a circuit-breaker will freeze the current $30 and $13.50 prices for extremely low-income riders.

"I’ve been consistently saying that people who have to ride the bus should be able to afford it," Councilman Donovan Dela Cruz said.

Seniors and disabled will see bus pass increases to $30 a year from $25 for two years.

"I don’t think any of us really want to do this, but we have no choice," said Council Budget Chairwoman Ann Kobayashi. "If we can restore service so there are no layoffs and pay the benefits that we agreed to in 2000, maybe that will bring the parties together."

The City Council made its decision on bus fares as negotiations resumed at the Blaisdell Center Exhibition Hall between O'ahu Transit Services and the Hawai'i Teamsters and Allied Workers Local 996 representing more than 1,300 bus workers who have been on strike since Aug. 26.

Wage and pension benefits continue to be the major stumbling blocks in the way of reaching an agreement.

Teamsters spokesman Don Owens said the union will submit a modified, five-year plan today that likely will "include significant pay increases at the front end or back end of the agreement."

The Teamsters have said the service cuts would lead to the layoffs of 40 union members. The bus fare increase is intended to stave that off.

"We understand the need to act," said Council Transportation Chairman Nestor Garcia of the bus fare increase.

City Transportation Services Director Cheryl Soon said the administration is still assessing whether the fare increase will cover the shortfall. In addition to the possibility of losing riders because of the strike, Soon said she will have to evaluate the effect of the changes to the transfer system. One transfer will be given free, then riders will have to pay full fare for the next ride.

"If there’s an under- or overestimation, that’s where it will be," she said.

Council chairman Gary Okino said the fare increase is a response to the bus riders’ request to restore the 20,000 service hours that were cut in June. "That’s why we responded with this," he said. "It’s not a matter of trying to settle the strike; we just wanted to put back service."

He added, however, "If it helps the strike situation, that’s good."

Several council members reiterated that the bus fare increase will not be used to pay for salary increases for bus drivers.

"The public’s patience with the strike is wearing very, very thin and we are certainly not in support of raising fares for a pay raise," Councilman Charles Djou said.

The council was to hold a public hearing at 2 p.m. on Dela Cruz’s proposal to sell advertising on the sides of buses, but the councilman said that members will likely comply with a request from the Transportation Commission to defer decision-making until the group can explore the potential for legal challenges and the amount of revenue advertising could raise.

Dela Cruz has said he is not wedded to the idea of bus advertising but insists the city needs to find other ways to raise money, rather than always turning to riders. "I’m really disappointed in the administration for not trying to find alternative ways to raise revenue," he said.