Now I can understand forbidding pictures in a government research lab (even if it means a colleague had to carry his camera-phone back to the car), but on a city street? The ACLU doesn't think it's illegal (quote in the NBC10 article). Apparently, neither does the police department; by the time NBC got to talking to them, they denied saying it was illegal.
It's good to know that we live in a police state. It could be worse, we could be in Montana, where it's illegal to assert your 4th Ammendment rights.