assisting firefighters in that battle. again, two houses burned on claytor way. this is a very active firefight. >> we're getting word from the parks and rec department director that allen rock park will be closed tomorrow, no matter what, as a precaution as they fight this fire right there. smoke, you can see, spreading uphill along with the flames and folks are really watching out for this one. you see a fire aircraft there dropping more retardant. so far 20 acres really close to allen rock park. >> of course, it a es hot in that part of the bay area. as we look live from sky 7 now, you see the fixed wing that's been dropping retardant and a

helicopter dropping water on the flames. so they attack it using water and retardant. retardant can put out the flames and prevent it from spreading. >> this is moving quickly. it broke out about an hour and a half ago, and sadly, as we were on the air, we saw the two homes destroyed, burned. and it happened right as we were on the air for "abc7 news" at 5:00. so already two structures destroyed and this wildfire continues to burn' near allen rock park. >> and more breaking news where a junk yard is on fire. fire crews have been pouring water on the flames for nearly an hour. >> the junk yard is on doolittle drive near 880. it's a 67-year-old iron and metal company that recycles scrap. all materials to burn. cranes are being used to

separate the scrap from the flames. >> the concern will also be because of what is burning, a toxic smoke, toxins in the air. the smoke is mostly white. that's a good sign. it's been drifting over the adjoining neighborhood. when the smoke is thick, black and dark, you know it's fully involved and raging. but the fact that the smoke has turned to this white color indicates they are making progress. >> and we are also getting word, i'm seeing that folks saying that they live in this area, and they're being advised to close their windows because of that toxic smoke you were talking about. also, getting an update that oakland international airport is reporting that flight, thankfully, has not been affected as of now by the smoke, because it's not far away from oakland airport. so the flights are not being affected but avoid the area if you can driving. so a lot going on right now. thank you for joining us. i'm kristen sze.

>> busy day. i'm dan ashley. now to the other top story. a santa cruz man is okay after a great white shark attacked his kayak. >> it happened around 11:00 a.m. just west of the beach board walk. >> david louie is live from santa cruz with the new warning for anyone out there on the water. david? >> reporter: and it is an important warning. we're standing at the overlook next to the lighthouse and the surf museum. the attack happened this morning just over this about a half mile out into the water, and it certainly surprised a kayaker out there. his name is steve lawson. he was just beyond the kelp bed, when he looked out to see a shark take a bite out of the front of his kayak. that flipped his kayak over and caused him to go into the water. he contacted harbor patrol for rescue. fortunately, lawson was not injured. he got a good look at about 25%

of the shark, but isn't sure how big it was. the jaw left a foot-long impression on the front of his kayak. >> park patrol came right out, helped me. never saw the shark again. i'm sure it was a mistake on his part. i'm sure he's saying hey, i lost a tooth or something. >> reporter: now, here's a photo posted by santa cruz police of lawson, back on shore after his rescue. he says he's fine and in good spirits. now, warning signs are now posted all over the beach area, to warn others of the shark attack on the kayak. as is protocol, water access for about a mile in any direction will be restricted. that covers santa cruz's main beach. a life-long resident and surfer says shark sightings in this area are definitely on the rise. >> the water is warmer. and we've had some temperature rise in the ocean, and the

sharks are loving it here, maybe more than usual. and they're a little more prolific. but the sharks are always out there. >> reporter: now, despite the warnings, we see a lot of surfers still in the water. waves are expected to pick up later in the week, and we'll be sure that will be drawing more surfers to the area. but the restrictions on getting in the water will be in effect until saturday morning. steve lawson, one very lucky man. we're live in santa cruz, david louie, "abc7 news." >> david, thank you. >> scary. and speaking of scary, let's talk about this fire in san jose. >> right now we want to talk about that grass fire in richmond, that is threatening several homes earlier. crews put out the fire, firefighters arrived around 2:30 this afternoon. they evacuated several homes. the backyard of these one home burned. the fire did not cause any major

damage. take a look at this video of a fire that burned in mountain view around 3:00 this afternoon. a "abc7 news" viewer posted this video on twitter. fire investigators are looking into the cause. they say the fire scorched several hundred yards off central expressway near ravendale drive. no one was hurt. >> let's go back to the fire in san jose. it still burns tonight. joining us on the phone is kyle lister, he works at the pro shop at the country club and saw smoke from the fire. are you there? >> i can hear you just fine. >> how far are you, the golf course, from this fire? >> so up on it's on >> so under a mile? >> yeah. right now i'm in the pro shop, so i don't see much. but i went up to the fourth tee

and just saw the whole hillside -- i didn't see any flames, but just the aftermath of the burn and the blackened ground. but nothing affecting us here. >> so you are down the hill from alum rock fire. so is the wind taking the mosmo away from you? >> yeah, the smoke is just flowing over on the mountain, just staying up on the top of the hillside. >> we do have word that alum rock park is being closed tomorrow out of precautionary measures. how about the country club, are you staying hope? >> yeah, we're staying open right now. nothing is affecting us or the houses up on alum rock as well. so we're staying open. >> kyle, thanks so much. >> you're welcome. a family making six figures can now qualify for affordable housing in san francisco. it's part of the city's

commitment to not forget the middle class. leeann melendez has details on the new policy just passed. >> reporter: well, dan, that may sound insane to anyone living outside of san francisco or california. but with all the people forced to move out of our city, the board of supervisors said it was long overdue. for the past decade, people have been complaining about the lack of affordable housing in san francisco. >> the way it is out here, they need more affordable housing for people struggling on these streets right now. >> reporter: the board of supervisors listened and finally voted to expand the parameters of who qualifies for inclusion nar housing. these are low income and affordable rental units mixed into private buildings. >> it can't just be market rate housing and extremely low income housing. >> reporter: until now, a single person making a little more than $44,000 a year, and a couple

earning more than $50,000 would qualify to live in one of these rental units. now that income will go up to $121,000 for a single individual, and $138,000 for two people. the supervisor says this will make it easier to keep teachers, firefighters and other middle class workers in san francisco. >> this is the element of the workforce that has been pushed out of san francisco. >> reporter: san francisco will now demand developers set aside 18% of their units towards inclusionary housing. of that 18%, 10% goes to low income households, 4% to modest income, and 4% to middle income households. >> we're saying you as developers have a responsibility to maintain diversity within your projects. >> reporter: there's also good news for future homeowners. >> i've lived in san francisco for 11 years and usually rented places. i'm saving up to buy a house, but the market right now is still too expensive.

>> reporter: the new policy will make it more affordable for people to buy condos. in san francisco, leeann melendez, "abc7 news." a new report finds the number of homes in foreclosure continues to drop, both in the bay area and across the country. nationally, less than 1% of homes are in foreclosure. in california, just 0.3% are in that category. both numbers are lower than they were a year ago. so the trend is positive. in san francisco and oakland, the percentage stayed the same at 0.2%. change is always tough, a and the city of san francisco is finding that it may be harder than expected. >> tonight, a massive new software system and the police unions, concerns about its effects on the fleet of police cars. triple digit temperatures are coming our way again. i'll have the forecast coming up. new at 6:00, see what it's like flying black bird, the newest air carrier that doesn't need an airport.

and another look live now at the san jose fire that's burned two homes and is triggering evacuations. evacuations. we'll continue ♪ ♪ isaac hou has mastered gravity defying moves to amaze his audience. great show. here you go. now he's added a new routine. making depositing a check seem so effortless. easy to use chase technology, for whatever you're trying to master. isaac, are you ready? yeah. chase. so you can.

things are heating up for the wta.mer. time to play. when the us open series hits stanford for the bank of the west classic,

join the celebration of summer. where the action off the court, is just as hot as the action on it. july 31st through august 6th. it's time to shine brighter than you ever thought possible. the us open series. we're serving up the best of summer. don't miss the wta action while it's in stanford. glad you are with us. more breaking news. this is at san francisco international airport where a coast guard plane clipped the runway. you can see the plane on the bottom right of your screen just from the graphic is. it was forced to taxi off the runway due to a mechanical issue. the runway is back open. no other flights were affected, but a minor incident at sfo. the claytor fire, near nearr

rock park. we want to bring back a resident of san jose who can fill us on what he's seeing there now. nick? >> caller: hi. yeah, i noticed that it just started like a half hour ago. i was just told there is a fire outside, so i rushed out and i saw the flames going up into the hills that caught some eucalyptus trees and it bursted from there. it also jumped a few times more to the -- i guess you could say west of where we're looking at. and more up to like the northea northeast. and right now i can see the smoke still on top of the hill and the helicopter still

bringing in water. >> nick, are you at your house? you've not been told to evacuate, is that correct? >> no, no. >> how far away are you from the worst o fire? >> caller: we can literally walk to like the -- i guess to the foot of the mountain. but it's still like a little ways up the hill. >> can you talk a little bit about that development where the two homes have burned? what do you know about those homes, how long they've been there, has something like this happened before there? >> caller: nothing like this has happened as far as i know. i don't know anything about the homes other than that they've probably been there since i've been living here. >> which is how long? >> caller: probably since i've been living here. >> nick, you've tweeted some video. tell us about that. >> caller: yeah. >> we're showing it now. >> caller: oh, cool.

my mom was suggesting hey, it would be cool if you could go gown down to the percolation ponds and take a look at the helicopters filling up the water. >> it looked like you were pretty close to the helicopter as it flew overhead. >> caller: yeah. >> we appreciate it, nick. nick lives not far from where this fire is burning at 20 acres. >> we'll continue to follow this fire and the firefight. in the meantime, moving on to another story. east bay might have approved the biggest water rate increase in more than a decade. rates will rise in 20% in the next two years, and the first increase starts tomorrow. laura anthony joins us live with the story. laura? >> reporter: hi, kristen. this was a lengthy hearing. there was a fair amount of public outcry, but in the end,

the board of directors approved this increase rather easily, by a vote of 6-1. >> you guys are affecting a lot of people's lives. >> reporter: critics say the 18.25% increase is a slap in the face to the district's customers who spent the last several years proving that they could conserve. >> it's an injustice for us to keep raising the rates. it's just not fair. >> the timing is unfortunate, i understand that. >> reporter: but they say the rate increase is necessary to replace aging pipes and infrastructure. and while the customers did their part to conserve, aging 20%, that resulted in a severe drop in revenues for the district. >> our bay area users are amazing, and they met the challenge, conserved even more, and the rate increase is slightly higher than we would have hoped it would be. >> reporter: an average family home that uses 200

gallons a day would see a rate increase of $4 a month. >> the rate increase is about $4.35 for a family. this is the straw that break's camel's back. >> everyone conserves and it's like a whack on the back of the head, because now they want to punish us. >> reporter: rates will go up needily, 9.25% this year, and another 9% next summer. laura anthony, "abc7 news." the city of san francisco rolled out a massive new financial system to replace an aging program it was using. but there's mixed opinions whether it's making things better or worse. vic lee is live with the big complaints from some of the city's police officers about it. vic? >> reporter: sit a big $60 million two-year project. it is a big and very i might say complicated financial system.

the police department and other city departments are using it now to conduct business to about 20,000 vendors. as you said, there is a sharp learning curve, not everyone is having an easy time with it. san francisco city controller ben rosenfield launched the city's new financial system july 1. >> we've been pleased with results. there are bumps in any implementation like this. >> reporter: and replaces a two decade old system which all city departments used for requisitions, purchasing and other financial transactions. rosenfield says most of the 6,000 users have gone through online training and there are support teams to help navigate the complicated system. >> we're getting about 300 help desk tickets a day. >> reporter: he says that's about normal for a massive new program like this. but workers in some cities are having trouble making purchases, saying they need more training.

in may, "abc7 news" reported that the city's aging fleet of police cars are breaking down more frequently, and there's a shortage of new cars to replace them. many are sere at the repair shot, towed here for maintenance and repairs. the police union president is concerned that issues with the new financial system may exacerbate the existing problem. >> we have upwards of 50 cars that are sitting at central shops that are waiting -- some are waiting for parts. and until those parts can be ordered, those cars will sit there idle. >> reporter: he's confident with more hands on experience, city workers will become more comfortable with a new system. vic lee, "abc7 news." >> we are watching that fire burning in san jose. and conditions on the fire line always critical. >> let's find out what's going on out there with spencer christian. >> the only weather factor that

seems to be here is the wind. the winds are out of the west at 15 miles per hour. enough to complicate the firefighting effort. as you can see the official temperature reading at the airport haste hour was 78 degrees. the temperature has dropped a degree or two since then, so it's not hot. and relative humidity is over 45%, so not terribly dry in the san jose area. around the remainder of the bay area, sunny, temperatures ranging from 63 at half moon bay. here's the view here at pier 15 in. blue skies and fog near the coast for the morning commute. mild to warm days and triple digit heat in our inland areas by the weekend. overnight, fog developing by the coastline. probably not moving very far inland at all. some fog will greet morning

commuters along the coastline. tomorrow's highs will range from low to mid 60s at the coast to mid and upper 70s around the bay. upper 80s to about 90 in the warmest inland locations tomorrow. it will be breezy at the coast. here's the seven-day forecast. we have a bit of a warming trend developing over the next few days. we won't see any sudden or dramatic increases in temperatures until the weekend, when in inland areas on saturday will hit about 100 degrees in the hottest spots. still hot on sunday in the upper 90s. around the bay area, mid 80s and upper 60s on the coast. next week, the temperatures taper off a little bit. let me remind you, this year's aids walk san francisco takes place this sunday at golden gate park. the proceeds benefits local hiv and aids programs such as project open hand.

there's still time to register. just call 4 the website. coming up next, a look at what it

the postscript to a storey that made headlines a few months ago when a barge sunk during a storm. >> most of it remains on the bottom, but not for long. >> reporter: imagine a giant erector set smashed by a 2-year-old underneath san francisco bay. >> salvage is a slow process. as fast as the speed of safety. >> reporter: here's the story when a barge named "vengeance" sank during a storm and landed on a tube for b.a.r.t. >> there's 25 feet of sediment between the tube and the barge. >> reporter: but the vengeance? >> it was a mess. it's upside down, the crane is smashed, the boom is extended out, flat on the sea floor. >> reporter: that's kerry walsh, o global diving and salvage, hired to do the work. since april, his divers have cut

the barge into three pieces. today, they pulled out the crane house, which leaked a bit more. california's department of fish and wildlife is not worried. >> so far it's a best case scenario i would say. >> reporter: with luck, the project should finish this week. a case of what went down, having to come up, one heavy piece at a time. >> 950 tons for three major pieces in three pieces. >> reporter: that's a lot? >> yes. >> reporter: it's not the "titanic." >> no, it's "the venn vangeanve" >> reporter: wayne freedman, "abc7 news." coming up next, another update on that breaking news story, the fire burning in san jose that prompted evacuations. we've seen two homes burn, and the firefight is still under way to protect the rest of that neighborhood. >> stay with us for that. and next, the i-team digs ito complaints of racial bias

resulting from these halloween parkers showing workers from a government work, which is supposed to ensure impartial

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and we'll update that breaking news we've been following since the top of the hour. several homes damaged by a wildfire near alum rock park near san jose. >> helicopters continue to drop water on the fire there, and fire retardant being dropped, as well. you can see another bucket there being carried to the scene. park rangers are telling us they are evacuating parkgoers there at alum rock park. take a look there at the neighborhood, and we continue to watch the water drop. rangers are sending people to their cars to drive home, and they say the fire is burning mostly right now on the northern side of that park. >> joining us on the phone is david duarte. are you this, david? can you hear us? >> caller: yes.

>> thanks for coming on, david. tell us what you've seen this afternoon. >> caller: well, i haven't seen much. i am on my way to my ranch. what i've heard is that it's consumed two homes, and that -- that if the winds changed it would be heading to our ranch. so that's why i'm going there now. >> how close is your ranch to this area, david, can you give us a sense? >> we're in the bolder area, kind of -- it's kind of -- >> are we talking a mile or two? >> caller: yeah, a little less than a mile. >> all right. >> and the brush, so far about 20 acres have burned. have you seen wildfire moving quickly in that area in summers pass? >> caller: yes. in summers pass we have. one of the big issues we've had

is the fourth of july and fireworks. people always want to take it up the road and light up fireworks. but unfortunately sometimes they get active with the fireworks shows and start doing their own show right there and they don't think about all the dry brush around there. we actively participate with the san jose department of weed abatement. we're working with different people to keep their weeds down. so we have a very strong program where we will use livestock to eat down those weeds and it will keep the brush and timbers down so it won't be an active fire. we've done a good job going around to properties and labeling them and letting people know, you need to get your weeds down. and if you don't do it, you get fined.

i don't know what caused the fire, but that's what many times happens. >> we remind people every year, we're all told to put defensible space around our home. so thank you for pointing that out. david duarte, livestock producer in the san jose area, good luck getting to your farm. >> it would help firefighters if the winds remained calm. >> we have updated information on weather conditions near the fire. 83 degrees right now. relative humidity, 36%, the steady wind is out of the west-southwest at 8 miles per hour. but gusts in the last hour up to 13 to 14 miles per hour. so wind may be a factor for this evening. as you can see around the bay area, it is breezy but noter e

the -- not terribly windy. rest of the week, warm with temperatures near 90 in our inland areas. hill tops remain breezy, and fires can easily start and spread under these kconditions. >> we just got word as we continue to look at sky 7 live over the scene. parks and recreation just tweeted that the center will serve as an evacuation center due to this fire. >> you're looking at hive pictupic -- live pictures. things have changed rather dramatically and for the better in the haslast 20 minutes or so. not seeing nearly the flame activity we saw a short time ago, with fixed wing aircraft, firefighters have made good progress and it looks like the worst is over and they have been

able to get a handle on this fire. so we are encouraged by what we're seeing. with more. >> reporter: i can tell you the amount of smoke coming from this

now from abc 7, live breaking news. >> and let's giv y another update on that breaking news in san jose. several homes damaged by a wildfire naer alum rock park in san jose. these are live pictures. >> joining us is cheryl wesling with the city of san jose. can you give us the latest of what the city is doing in terms of the response? >> yeah, the city of san jose fire department is working with cal fire responding to the fire. they are using an air attack, including three helicopters and have called in a couple of dc-10s to attack the fire from the air. we are also opening our community center as an evacuation center for anyone

that might need that. overnight. >> cheryl, are you getting any reports that the situation there is improving? >> i don't have reports exactly from the fire department, but i do know that they are aggressively attacking the fire. there is concern for both the homes and working very hard to also keep the fire from entering alum rock park, which has some deep ravines, and alum rock park has also been closed. >> how many homes are in that area that you're trying to protect? we understand two have burned. >> my understanding is that one house has been completely damaged, another partial hi dama -- partially damaged and several others are at risk. i don't have the information how many homes are in the area.

>> cheryl, thank you so much. we appreciate you taking the time to come on. as you look at hive pic live pi you see helicopters dumping water on the flames. looks like it was a direct hit by that helicopter. they'vedumping water and fire retardant. >> we'll continue to follow that story. we'll be back with a final update on the weather with spencer.

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>> black bird is a new way to travel. so we are really -- we sit between driving and flying. and we fly a smart haul regional flight. >> reporter: you book online like a regular online. but that's where the similarity ends. >> it turns what can be a three-hour process just to get to the airport into essential hi going down the street and hopping in the airplane. >> reporter: the economics are startlingly simple. most people can't afford to charter this entire airplane, but buying one seat makes sense for more people. >> once you tell people this is possible for about $100, they just ask when they can fly with us. >> reporter: that's compared to more than $5,000 to rent the plane both ways. there is a lot of demand. >> we have about 10,000 people on the app right now, for about four routes that we're operating. >> reporter: they'll expand late they are month to washington, colorado, and texas.

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fire update this hour. live pictures from sky 7. the firefight continues in the hills east of downtown. >> at least two homes have been badly damaged by the flames. rangers are also evacuating alum rock park right now. the city has set up an evacuation center at the community center, and activated its emergency services agency. >> and that community center will be left open as an emergency shelter overnight for folks who need it. we'll post information of that and the latest on the fire on our website, abc7news.com. go there as soon as you can. >> hopefully favorable conditions. >> right now as you look at this live doppler 7 hd radar image,

which i'm looking down at, you can see that we're picking up the movement of the smoke from the fire and you can tell the wind is out of the west as the smoke is blowing out towards the east. it's warm there right now and very dry. tomorrow amp will be another warm amp with temperatures high in the san jose area about 82 to 84 degrees and breezy in the afternoon once again. and with dry conditions. here's the accuweather seven-day forecast. fire danger will grow as it gets hotter. highs inland around 100 degrees. so quite warm. but temperatures will taper off next week. >> thanks, spencer. >> joining us tonight at 9:00 on cable channel 13 and right here for "abc7 news" at 11:00. >> we'll pick up our coverage in san jose where two homes have burned. join us for "abc7 news" at 9:00 and 11:00. >> that is this edition of "abc7 news." look for breaking news on twitter and at "abc7 news" bay area. i'm dan ashley.

>> and i'm kristen sze. for spencer christian, larry beil, and the entire "abc7 news" team. have a good night.

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