Following a notice from Caltrans regarding a policy violation, the Hermosa Beach City Council Wednesday night unanimously agreed to form a subcommittee and further explore modifying its guidelines to the city-sponsored banner program that raises funds for nonprofit groups.

According to Public Works Director Richard Morgan, Caltrans notified the city that its 4-foot-by-40-foot banner hanging over Pacific Coast Highway and First Street violated the agency’s laws prohibiting all advertising.

In mid-October, the city received a notice from Caltrans requiring the city to remove its banner at the location in question. If the city refused to remove the banner within 30 days, it would be subject to a $10,000 fine. The city relocated the banner to another approved locale at Aviation Boulevard and Prospect Avenue. Caltrans prohibits private advertising on banners within the state right of way which includes Pacific Coast Highway.

“In compliance we removed the banner, and we had a follow-up meeting where they very clearly enumerated the law and the rules regarding advertising, which are very strict,” said Morgan. “The only form of advertising, is for example, a special event.”

More than three years ago, the City Council approved a banner program that granted the Hermosa Beach Education Foundation the opportunity to display banners in the city as a fund-raising effort for the nonprofit organization. Although the Education Foundation was the first applicant, the council’s approval allowed for other Hermosa Beach-based nonprofit groups to participate in the program once they obtained a sponsor.

Peyton Cramer Ford was the first company that sponsored the Education Foundation by advertising its business in exchange for a $2,500 donation each month for a period of six months.

“This is something near and dear to my heart because my wife is connected to this organization as are other fine outstanding citizens, and Roger Bacon, who has always gotten us the money, miraculously, from the private sector, which amounts to about $30,000 for Hermosa Beach schoolchildren,” said Councilman Sam Edgerton.

Both Edgerton and Mayor Michael Keegan contacted the offices of Sen. Debra Bowen and Assemblyman George Nakano in the hopes of seeking some support at a state level if necessary.

“They wanted to wait until we held this meeting and to come back to them with our ideas,” said Keegan. “They wanted to hold off until we have a plan of action from the meeting to let them know what we need from them. They would prefer to have us work it out ourselves, but they are willing to step in and help because they agree it’s a good cause and an easy cause to fight for.”

According to City Manager Steve Burrell, prior to this approval in 2000, the banner program assisted in other local efforts such as the restoration of the Vetter Windmill.

“I think you all know we’ve had this for at least 10, 15 years pretty much the way it’s functioning recently,” said Burrell. “What I would suggest and I think would be a wise idea, is to form a subcommittee and go talk to the district director or go to Sacramento and talk to them to see what they think. I think we have some opportunity to be creative and provide the same function that has been going on for a long time.”

According to city policies, the nonprofit group will occupy 25 percent of the space on the 4-foot-by-40-foot sign while the advertiser will use the remaining space.

Hermosa Beach businessman Bacon has continued to mediate deals between companies and the Education Foundation for the program, and initially introduced the notion of such a program aimed at supporting the handful of local nonprofits to the City Council.

According to the Caltrans encroachment permits manual, “Banners shall not contain private advertising nor be of a political nature.” According to its nondecorative banner section, “Permits for nondecorative banners are issued to a local agency or a nonprofit organization sponsoring an event approved by the local agency. Banners displaying private advertisements are not allowed. An exception is when the advertisement is part of the event’s official title (e.g. Kellogg’s Napa Valley Marathon). Banners are not authorized on controlled access of right of way nor shall they be attached to state facilities.”

“A part of the section pertaining to nondecorative banners reads an exemption is made when the advertiser is part of the event’s official title,” said Councilman Art Yoon. “To me, that means there is wiggle room. It might mean that there is going to be some creativity from the Education Foundation and that the banner program isn’t dead. In fact, it’s alive so long as we adhere to state law.”

Edgerton researched the issue and discovered such laws comprising Caltrans’ policies are not as supportive of local ordinances as state statutes.

“The only thing this apparently violates is not a statute but an agency rule and you have to understand they are very different. Agencies are empowered by statutes to promulgate their own rules, but they are not exactly statutory sections handed down by California legislature,” he said. “If you look at actual state law on the subject – ‘If the advertising display is placed on, maintained in a location that does not conform to the provisions of this chapter or local ordinances.’ This banner complies with all local ordinances. In another section, ‘It is the intent of the legislature in enacting this section to strengthen the ability of local governments to enforce zoning ordinances governing advertising displays.’ That’s what we’ve done, no argument up here. So I think elected officials will come to our rescue because at the end of the day, it’s a great cause.”