The 9th Circuit Court of Appeals subsequently ruled against the intrusion on Fourth Amendment grounds, putting the Encinitas snooping program on hold.
The U.S. Supreme Court will hear arguments today, and presumably rule in June. We'll hazard a guess they'll respect the Fourth Amendment on this one.
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
CORRECTION: Thanks to a commenter who reminded us that the after the city council unanimously passed the law on the first reading, they did not pass it on its required second reading.