You know Google works on your computer too! OK, since you caught me in a good mood here's the ordinance.
I don't know if they think he's violating this ordinance directly, or if his Santa statues are out of compliance with other sections of the sign ordinance but would be exempted under this ordinance during the holiday season. Feel free to read the rest of the municipal code of North Palm Beach to figure that one out. :)
Sec. 6-112. Exempt signs
F) Holiday lights and decorations, erected during the appropriate holiday season, shall comply with all building and electrical codes. Holiday lights and decorations may be erected no earlier than four (4) weeks prior to the subject holiday with the exception of the Christmas/Hanukkah holidays. Christmas/Hanukkah lights and decorations may be erected no earlier than October 15th. All holiday lights and decorations must be removed within two (2) weeks following the holiday.