The City Council gave preliminary approval Wednesday to a bill that would allow advertising on the exteriors of city buses.

Bill 69 now goes to the Council Budget Committee for further discussion.

Council Chairman Ernie Martin was the sole "no" in the 8-1 vote. Martin said he philosophically opposes the idea of selling ads on the sides of TheBus — which Mayor Kirk Caldwell projects could raise up to $8 million for bus service.

Martin said he will be introducing his own bills to raise revenues.

Councilman Ron Menor said he wants to hear from Corporation Counsel Donna Leong, the city’s top civil attorney, on how the proposal could affect existing sign laws.

Councilman Joey Manahan said he wants the Council to consider implementing the bus ad plan as a pilot project first so the city can assess its impact before deciding whether to make the advertising permanent.

About a dozen people testified. Most, including representatives from the Outdoor Circle, said they opposed the bill.

State law allows advertising on vehicles if deriving revenue from that advertising is not its main purpose, according to Corporation Counsel Donna Leong. For instance, a vehicle used primarily to transport people or goods can allow advertising, she said,

But Marti Townsend, Outdoor Circle executive director, said her group does not believe state law allows an entity to sell advertising space on those vehicles to other parties. Townsend said tour buses and trolleys are running advertising illegally. The Outdoor Circle has not challenged the companies on the issue because of cost, she said. From an enforceability standpoint, the state law does not say who is supposed to regulate the law, she said.

In other action, the Council approved Bill 63 allowing the city to place vacant properties with an assessed value of $1 million or more and no homeowners exemption in a new Residential A tax class. The Council earlier this year approved a bill creating the new tax class, which is expected to garner $10 million assuming the tax rate for those properties are raised to $4.50 for every $1,000 of assessed value from the current $3.50 per $1,000.

Manahan had tried unsuccessfully to raise the threshold for the Residential A class to $1.5 million.

Also on Wednesday, the Council voted to approve on final reading:

» Resolution 13-245, urging the Department of Planning and Permitting to come up with a draft bill allowing dance and music schools in districts zoned for heavy industrial use.

» Resolution 13-275, allowing for renewal of a contract with the U.S. Department of Agriculture to trap and dispose of wild pigs at Hoomaluhia Botanical Garden.

» Resolution 13-267, calling on the Department of Environmental Services to evaluate and correct sewer problems in Kakaako.