I understand the trepidation at renting a car with the surcharge but I can't strongly enough advocate that you get one; you already said you get a good deal on the hotel, and in LA, rental cars are almost non-negotiable. Ask your sister-in-law to split with you, or whichever, but for the length of time you will be there (whatever it is), it is BY FAR worth it to spend the extra dough on a car rather than relying on taxis or public transit.
I love it in Santa Monica and there is a lot to do there. It's not a bad drive in to the LA area, Hollywood, even Anaheim and beaches north in Malibu. There's also 3rd Street which is really cool and the pier which is best at night time.
But, again, get a car.
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