A proposed charter amendment that would create a licensing and enforcement board for bed-and-breakfast operations received initial approval from the City Council yesterday despite opposition from a sizeable crowd at Honolulu Hale.

If approved, the question would go on the ballot in 2010.

Opponents — who were represented by blue banners and signs saying "No B&Bs and TVUs" — and advocates bearing bright yellow "Support B&Bs and TVUs" signs both expressed opposition or hesitancy toward the proposal.

Angie Larson, president of the Hawaii Vacation Rental Owners Association, asked the council to defer action on the resolution while requesting a role in discussions.

"We believe in proper management and being respectful of our neighbors. We want to be part of the solution," said Larson. "In order for you to make an informed decision ... this resolution would not be on the ballot until 2010."

The council is also considering legislation at the committee level that would legalize bed-and-breakfast operations on O'ahu.

If passed, the legislation would overhaul the city ordinance on short-term rentals passed in 1989, which banned the establishment of new bed and breakfast operations.

Fewer than 100 bed and breakfasts are operating under nonconforming use permits, in which owners take in renters for less than 30 days. About 1,000 owners have permits to rent an empty home for less than 30 days, the city has said.

A first reading of that bill passed 6-1 on Oct. 15.

The resolution, introduced by City Councilman Charles K. Djou, would create a separate licensing and enforcement agency funded by fees and fines collected from bed-and-breakfast owners, operators and customers.

Djou said the agency could do a much better job of ensuring that existing operations are adhering to current rules and regulations. Currently the city Department of Planning and Permitting is responsible for enforcing bed-and-breakfast regulations but does not have the staff to handle the task, he said.

The proposed charter amendment should serve as a discussion starter for creating a more efficient and effective form of bed-and-breakfast oversight, said Djou.

"My concern here is a lack of enforcement and the city's utter inability to enforce the existing law," Djou said. "We could create a board, finance that board out of licensing fees, and hire inspectors to enforce the law. I'm trying to find a mechanism to enforce the law without having the burden being put on the general taxpayer."

Councilman Nestor Garcia traveled to Maui last month to discuss both sides of the issue with residents there, and to learn more about that community's plan to put caps on the number of B&Bs and vacation rentals allowed on the island.

Garcia said the issue of regulation is "difficult."

"Capping the number of short-term rentals ... if this is going to happen we need some kind of regulation," said Garcia. "His (Djou's) idea is worth merit and it's worth some discussion."

The contentious issue yesterday drew dozens of speakers who filled one side of the council chambers — particularly residents of Kailua, where the issue has been especially controversial.

Speaker after speaker stepped to the microphone to say legalizing B&B and TVU rentals would destroy the integrity of O'ahu's residential communities, turn them into tourist hotel centers, and create a non-family-friendly atmosphere.

Many argued that adding another layer of bureaucracy is not the answer.

"We can't help to think that this is a step to opening up (to more bed-and-breakfast operations)," said Lisa Martin, a Kailua resident. "I don't trust this body to appoint members of the board who will have the residents in mind. Don't destroy our communities, that is what I beg."