On any visit to downtown Hermosa Beach on a Friday or Saturday night, one can’t help but notice dozens of taxicabs buzzing around, transporting people from one destination to the next.

Hermosa Beach city officials recently agreed to take a closer look at the taxicab business which has become so popular in town. One product of that review is a proposal to establish a franchise agreement with one or several companies now operating in Hermosa Beach.

With a franchise, city officials would put all of its service needs with one or several taxi companies, allowing for a monopoly in Hermosa Beach.

The Hermosa Beach City Council agreed to examine the issue after City Councilman J.R. Reviczky voiced an interest.

“The biggest reason why I want to see a taxi franchise in the city is because we would have more control over the cab companies,” said Reviczky this week. “I think we can tailor services that better meet the city’s needs. I think we will be able to better track complaints and stage the cabs so they are not blocking streets.”

The city currently monitors the activity of six companies authorized to work in town. Each year, taxicab companies are required to renew their business and taxi licenses in order to work within the city. A total of 232 taxicabs are permitted to work in Hermosa Beach.

The city’s taxi ordinance has generated notable revenues for Hermosa Beach, providing the city’s Police Department with the resources to monitor the program.

Last year, the city collected approximately $91,000 in fees from cab companies. Reviczky felt the city could generate the same amount of money with a franchise.

“I would like to make sure we would come out a wash with this,” Reviczky said. “The fees are based on what the city needs to monitor the program. These fees are not any kind of revenue generator.”

When city officials enacted the taxi ordinance, they never implemented a cap on the number of authorized taxicabs allowed to work in Hermosa Beach. Hermosa Beach Police Chief Mike Lavin said the issue has become a problem for his department in that the taxis often create congestion in the downtown.

“The program has grown so large that control is sometimes difficult,” said Lavin this week. “This is despite the fact that each company is investigated to make sure that it is in compliance with the municipal code. This includes making sure that the company has adequate insurance. ”

During the last council meeting, Lavin suggested the city consider establishing a franchise agreement with a single cab company.

“A franchise would provide the city an opportunity to select a good, well-run and reputable company,” explained Lavin. “In the event of complaints, staff could more effectively deal with a single company to solve the problems instead of trying to figure out which of the six companies are responsible.”

Councilman Michael Keegan said he would most likely entertain the idea of a franchise if the contract would generate the same or more money for the city.

“I am not huge on regulation, but if there is a way to either increase or keep the amount of revenues for the city while still providing the same services, then I would entertain the idea,” said Keegan. “I don’t really think we should take out competition because it’s a demand-driven business. Cab drivers are there because people are riding in their cars. They are not there because they want to hang out in downtown Hermosa Beach.”

Other cities that currently have franchise agreements with either one or several cab companies are Manhattan Beach and Long Beach.

Hermosa Beach City Manager Stephen Burrell will research the proposal by discussing the pros and cons of a franchise with cities that currently have one in place. Reviczky said that if the city does agree to a franchise contract, the city should keep the city-sponsored taxi voucher program used by the elderly and the disabled as a separate agreement.