SUBJECT: STREET BANNER FUNDRAISING PROGRAM AND BANNER PERMIT POLICY AMENDMENT

 

Recommendations:

1. That the City Council approve the new non-profit street banner fundraising program as outlined below.

2. That the City Council approve a proposed amendment to the existing street banner program by limiting it usage to Hermosa Beach- based organizations or events occurring in the City.

 

Background

The purpose of the this agenda item is to implement the decision of the City Council of 10/24/00 to approve a commercial advertising street banner program for the purpose of fundraising by Hermosa Beach non-profit organizations that provide benefits to the City as a whole, such as supporting educational or youth activities.

It is proposed that the program have a two-year duration and at the end of that period be reviewed by the City Council to determine whether or not it will be continued. Commercial advertising fundraising banners would be permitted only at PCH at 1st Street and Aviation Blvd near Prospect.

In addition, on 10/24/00 the Council also directed staff to revise the existing banner program, by limiting it to Hermosa Beach organizations or events occurring within the City.

 

FUND RAISING BANNER POLICY

Hermosa Beach non-profit organizations providing benefits to the City as whole may reserve banner space to sell banners to commercial advertisers for the purpose of fundraising. The non-profit organization must:

• Be a 501-(c) (3) tax exempt non-profit entity based in the City.
• Provide liability insurance naming the City as an additionally insured.
• Reimburse the City the cost of installation and removal of the banner.
• Provide documentation demonstrating that it is receiving at least $2500 per month from the advertisers.
• Utilize the proceeds (exclusive of the cost of installation and removal) exclusively for charitable purposes, and certify that no commissions or rebates are being paid to any individual for any purpose, including soliciting advertisers.
• Include on the banner a statement to the effect that the non-profit organization named on the banner is the recipient of the advertising proceeds.

It is proposed that non-profits may request approval to place advertising banners for one quarter per calendar year. If no other non-profit requests a particular quarter within one month prior to the initiation of that quarter, a non-profit may request consideration for additional quarters each calendar year. Requests will be approved on a first come, first serve basis, and all things being equal, priority will be given to organizations that support activities or education for Hermosa Beach youth.

The one issue as to which staff seeks further direction from the Council is precise format of the advertising banners, particularly, how and in what size the name of the non-profit will be displayed along with that of the commercial advertiser. It seemed clear that the approval given in concept at the 10/24/00 meeting was for an advertising program to raise funds for the benefit of the residents of the City, meaning that the display area for the commercial advertiser would have to be sufficient to make the banner a desirable advertising medium and worth the $2,500 cost.

There are several alternative ways that the display of the non-profit group can be accomplished keeping the above objective in mind:

1. The City Council can dictate the percentage of space on the banner that must be devoted to the name or logo of the non-profit.

2. The commercial advertiser could occupy the entire banner, and a smaller side banner could be attached which includes a statement that the proceeds from the advertising banner go to the nonprofit. This was done for the Windmill project; the Windmill logo banner remained up while the advertising banners changed. This also would reduce the cost to the non-profit/advertiser, as this part of the banner would not have to be reproduced each month.

 

REVISION TO EXISTING STREET BANNER PROGRAM

Staff was directed to revise the existing street banner program to limit it to Hermosa Beach organizations or events. This program makes street banner locations available exclusively to advertise community events.

In order to accomplish this, the following changes will be made to the street banner program application, limiting the program to:

• Non-profit organizations located in Hermosa Beach or non-profit organizations conducting fundraisers or events in Hermosa Beach.
• Commercial events approved by the City Council that take place in parks, beaches, and/or public property in Hermosa Beach
• Non-profit organizations outside of Hermosa Beach whose programs directly serve Hermosa Beach residents.

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