CITY ENDORSES TRANSIT ZONE; COUNCIL SEEKS STUDY OF PLAN FOR VALLEY-RUN DISTRICT.

Byline: Patrick McGreevy Daily News Staff Writer

Bus service would expand and fares would drop 35 cents according to a preliminary plan to create a San Fernando Valley Transit Zone that the Los Angeles City Council endorsed Wednesday.

After rancorous debate, the council voted 10-2 to pursue creation of the transit district, which would make its own decisions on bus routes and timetables but still be funded by the Metropolitan Transportation Authority.

Wednesday's vote authorizes a $265,000 legal and financial study necessary to apply to the MTA for the creation of the zone. The final application will be based on the more detailed studies.

The council action asks other Valley cities - including Glendale, Burbank, San Fernando and Calabasas - to join in an agreement to operate the transit zone. Los Angeles officials said those cities have expressed an interest.

To qualify for the zone, the city must prove to the MTA that it can reduce costs of operation by at least 25 percent. Currently, the MTA runs 400 buses in the Valley at a cost of $123 million annually.

Councilman Joel Wachs of Studio City said the initial study indicates the necessary savings and even will bring rate reductions.

``I think we should go for the most for our buck,'' Wachs said. ``You owe (that) to the people who pay.''

Providing for a seamless transition between different parts of the city is a key to developing the Valley zone proposal, said Councilman Richard Alarcon.

MTA and city transportation officials said a plan must be worked out to ensure that the Valley is not left with the oldest buses and worst drivers.

A point of contention for several council members was that reducing operating costs by 32 percent could mean hiring companies to run the buses, and cutting the pay of union drivers and mechanics by half.

That touched off a heated debate that previewed the showdown expected when the council eventually is asked to give final approval to establishing the zone.

``Whatever savings you are going to make is going to be on the backs of the poor working guy,'' said Councilman Nate Holden, who was joined by Rita Walters in voting against the Valley zone.

Councilwoman Jackie Goldberg said she may vote against the final proposal, adding ``I am very concerned about the union-busting potentiality'' of the final plan.

``I always find it amazing how easily we are able to talk about saving the people money, as if the people who are driving the buses and keeping them running aren't people,'' Goldberg responded to Wachs.

``I find it amazing that we can say that the way you save money is have the workers subsidize the fares,'' Goldberg said.

That brought Wachs angrily out of his seat.

``Who in the heck do you think rides those buses? Mostly workers,'' he told Goldberg. ``Why should all those workers you represent who ride those buses pay so much more than they have to pay so you can take care of a few people who make a lot more than their counterparts.''

Alarcon of Sylmar got the council to take the next step in the process while assuring them that the debate is not over.

``I would hate to see us entrench ourselves in an extreme position and not have the opportunity to bring back a proposal that meets the 25 percent reduction in cost and subsidy,'' Alarcon said, adding that he strongly supports the rights of union members.