This might sound crazy to some, but I know it to be true from experience--take up a Tai Chi practice. Tai Chi is, in my humble opinion, the best exercise on the planet for healing and strengthening joints, ligaments, etc... There are LOTS of Bay Area practitioners so finding a teacher and a style you like shouldn't be too difficult. I prefer Yang Style, but YMMV.

After 3 - 6 months of regular practice (about 15 minutes a day once you learn a simplified routine and some warm up and cool down exercises) you'll start experiencing a skip in your step that you thought you had lost. I guarantee it.

Surgery should be your LAST choice.

OK, I'll shut up now.