♪ we begin with developing news in daly city after gunfire erupts around 5:00 this morning. >> there was a standoff that's been underway for hours. those shots were fired on west market street in daly city. vic lee has been monitoring this. what can you tell uss? >> cheryl, this appears to be coming to an end. we heard police firing what appeared to be stun grenades through the window of that apartment and that's right behind me on west market street. this street boarders a small shopping mall. again, we don't know a lot of information because the police public information officer

happens to also be the police negotiator. but this is what we do know. it all started about 5:00 this morning. police responded to that apartment because of reports that about five, perhaps six were fired. again, we don't know if they were from inside the unit or whether it came from outside on street next to the apartment. we were told that a man and woman are holed up in that apartment and that police did make contact with at least the woman early on. of course, all the neighboring apartment units have been evacuated but we don't know if anyone is being held against their will, if this is a hostage situation or not. again, information is not coming very quickly, again, because that police negotiator is also the person who's giving the media information. we do know that there were shots, perhaps grenades fired inside that building. the s.w.a.t. team appears to be waiting to go inside.

that's the situation here. it looks like this situation's gonna end soon. back to you. >> if we get new information during this broadcast, we will bring it to you. otherwise we'll bring it to you on abc7news.com. grief counselors will be on the campus tomorrow following the death of two students over the weekend. authorities found the bodies of 15-year-old matthew miller and gavin powell in a creek in concord. the boys apparently drowned after rafting in a rain-swollen waterway saturday. the raft turned up yesterday as well. they attended the high school at walnut creek. autopsies are going to determine the exact cause of death. >> the union representing a. c. transit bus drivers and mechanics says it plans to file grievances in a recent bus shooting. someone shot out the back window of a bus 12 days ago. drivers on that route and other routes say they fear for their

safety and don't feel the agency is doing enough to protect them. sheriff deputies shadowed buses after the shooting but only after a few days. a. c. transit says it plans to increase its security efforts and wants to make sure every bus on that line has working security cameras. >> president's day may be a holiday for school kids but 14 concord car dealerships are working for kids in the mount diablo district to save music and programs. terry mcsweeney with the story. >> standing here on concord , y dealership here. just across the street the honda, next to that the chevrolet and next to that you've got the acura. they have been competitors and that's not going to change but when it comes to local schools they stand united for at least a few days. roger is looking at a new nissan rogue and he's been here before to look at it. he's leaning to buy it.

it doesn't hurt it's going to a cause near and dear to him. >> now diablo's been especially hard hit over the years here. i have a granddaughter in school now and my two sons wept -- went to school here in concord. >> it's good to support our local area, local school districts. they've been in the news a lot lately. we need to do whatever we can to raise money for the school. >> the united school needs the money. it recently voted to close two schools and will decide on a third one to close. the best case scenario is come next year it will only be $11 million in the red. the car dealership generosity offering $20 to the district per car sold won't fix the problem but members are responding to this offer. >> we sold about 30 cars since the program started which is the 10th of the month. till now we have a total of 71.

i checked my records for last year and it's an additional 18 cars more than what we normally sold. >> roger was looking at that rogue right over here and it's off the lot. usually i wouldn't be concerned with that but that's darn good news for the school district. when it's all said and done, somewhere between 25, maybe $30,000 will be raised and that's just for the music and sports program in a district that desperately needs it. terry mcsweeney, abc 7 news. >> terry, thank you. the fremont school district starts negotiations on a new teachers contract this week but already teachers say the district's proposal is the worst they've ever seen. fremont teachers haven't had a pay raise in three years and they are asking for a raise to help offset rising health insurance costs. but the proposal calls for an unspecified salary decrease. the district also wants more authority to evaluate teachers and pose layovers. the funding dropped 20% largely

due to state budget cuts. >> the santa clara city counselor taking steps to for redevelopment proposal. governor brown wants to take it away to help the budget crisis. redevelopment money, no stadium? >> yeah. and, cheryl, the 49ers tell us they are not going to talk about this discussion yet. they want to wait until tomorrow night city council meeting. no comment for 49ers but the city council is fired up and ready to take on governor jerry brown. >> we appreciate the situation he's in. i know he stepped into a bad financial situation. >> but santa clara city officials aren't going to look the other way while governor jerry brown tries to do away with redevelopment agencies. the governor thinks he can save the state $1.7 billion but cutting redevelopment, and he proposes giving that money back to local governments and schools. but santa clara needs redevelopment money to help fund the new stadium for the 49ers.

>> well, because a redevelopment agency should be fixing blight, not subsidizing nfl millionaires. >> nfl plays fair supports the redevelopment agencies which are currently allowed to support local government. >> what we're funding is a municipal stadium that has a very small public contribution when we have a $1 billion profit investment. a good ledging of funds. >> the plan it change the language at the stadium meeting to make sure everyone, including the governor, knows this deal has been underway for four years, long before the governor was elected. >> the former stadium authority will encumber our funds through the cip project and create the state authority and redevelopment agency so we can

move forward on our project. >> city leaders say if they don't get redevelopment money, they will seek private money maybe from a team or silicon valley company. they aren't ready to say yet no redevelopment money would kill the deal. live in santa clara, amy hollyfield. >> the people are asking moammar qaddafi to step down after another night of violence. supporters took to the streets of tripoli and warning protestors. they warned libya is not egypt or tunisia and they would fight until no one is left standing. libya's second biggest city have taken over the main security

headquarters where clashes yesterday reportedly killed 60 people. prodemocracy protestors are calling for the ouster for the king and the entire ruling monarchy. that comes to the protestors camped out in the country's capital. before this it was only a weakening of the powers. tensions are high but there's been no reoccurrence of last week's violence that killed eight people and injured hundreds more. >> some of the young activists that helped topple the egyptian president hosni mubarak, the arm took control. asked to international help in egypt's transition for democracy and tracking down mubarak's assets believed to be in the billions. senior u.s. and european leaders including david cameron are heading to cairo for talks with

egypt's ruling military council. >> just ahead somali spirits hijack a sailboat with four americans including a california couple. why they were sailing dangerous waters and why people say it's the pirates that may be in trouble. beware the bli (speaking in international language) and he said unto them go ye into all of the world and preach the gospel preach the gospel  ♪very creature in the world. (applause)

 >> right now at least one u.s.

ship is shadowing a yacht with four american hostages on board. somali pirates hijacked them three days ago looking for ransom money. a couple is sailing with another couple from the seattle area. the adams have been delivering bibles throughout the world. friends from their church say they were planners and they knew the dangers they faced. >> we prayed for them honor hoping we had heard from them and they had gotten through safely. >> they offered prayers for the couple this weekend. somali pirates currently hold more than 30 ships and more than 600 hostages. >> back here at home, muni could be looking for a new chief. according to today's san francisco chronicle, the current muni head is a finalist for a job managing the airport authority in washington d.c. his possible departure comes at a crucial time for muni, the bay

area's busiest transit agency. it faces an estimated $1 billion shortfall over the next 20 years. without spending cuts or new sources of revenue. >> many in the bay area didn't have to head up to the sierra to enjoy the snow this president's day weekend. this is a view of the snow at mount tamalpais in marin county. mount tam got 4 inches of snow over the weekend. they weren't alone with the dusting of snow. mount diablo in the east bay. but this snow is nothing like what the upper midwest is getting. a winter storm is pounding michigan and minnesota. it cancelled hundreds of flights but so far only four flights from sfo have been delayed. neither san jose nor oakland has experienced any delays at this time. >> our meteorologist mike nicco ahead with the forecast. >> waking up yesterday, going out watching the fog, and there

was mount diablo. capped with snow. really kind of cool. let's show you what's going on. still in a very cool pattern. you can see some clouds developing. some could drop a shower. i'll show you where. more winter weather in store for this weekend. >> mike, thank you very much. it's called the super bowl of surfing. why this year's mavericks is pretty much wiped out. 

>> an update on our top story. a police standoff in daly city has just ended. >> the standoff is over. we saw a man and woman leave the house on west market street with their hands up just a little while ago, this after police fired what appeared to be stun grenades.

entered the house, this after police negotiator had been talking to at least the woman all morning long. it started about 5:00 when police responded to a call shots had been fired either inside the apartment unit or on the street outside of the apartment. so this standoff is over apparently and we don't know this for a fact, information has been slow to get to us but apparently there is nobody else in that house. we don't know of any injuries or casualties. so apparently the police negotiations paid off and led to this peaceful resolution. back to you. >> vic, thank you very much. we appreciate that. well, organizers of the mavericks big race surf contest tell us this year's competition is all but cancelled. the window closes next monday and that's when the permit expires. organizers are not tracking any swells out in the pacific that could have here by then. mavericks is an invitation only event. surfing from around the world

are given only a 48 hour notice before the swells hit the coast. >> couldn't get the weather this year? >> no and looking out a couple weeks it doesn't look like big swells. unfortunate. a lot of people look forward to that. sky 7 hd hovering over mount hamilton this morning. as of this morning the road up there was still closed. must find some other area to visit the snow if you didn't make it to tahoe this holiday weekend. another perspective of the bay. actually gorgeous on newly fallen snow. mount sutro to mount tamalpais, you can see just underneath the clouds. let's talk about the clouds and what they are dropping. around us we have scattered showers over the ocean, even a few over land and those have since disappeared, focusing up what's happening to our northwest, you notice those are staying out over the ocean. that may be the case this

afternoon but we'll keep a scattered showers in the forecast. if you're stepping out, mainly upper 40s to near 50. cooler santa rosa and san rafael. around the monterey bay and inland, mid to upper 40s to even 61 around monterey. so the scattered showers, i'll keep them in the forecast for the north bay and along the coast. but you can see just how scattered they are, clearing and cold tonight, even colder than this morning and valley frost in our inland neighborhoods. dry tuesday, wednesday and most of thursday and then another winter weather pattern will give us an unsettled friday, saturday and to a lesser extent sunday. for today cold conditions, temperatures running from 7 degrees cooler than average in napa to 10 in redwood city. sun sets about 5:55 today. low to mid-50s, that's what we're going to have this afternoon under a partly sunny sky. clear lake cooler and a lot mor

monterey bay and inland, temperatures mid-50s under a partly sunny sky. probably won't see a drop of rain out of this system until you get farther to the south. higher elevations around the big sur. a lot of vaporer. humidity is highest where we see the grapes and those are the showers. with this low dropping straight down it's going to pull a little away from the coast and that's going to keep us from seeing any widespread showers. here we are noon and you see developing along the coast, trying to push into the north bay by 3:00 to 4:00 by 8:00 you see the low pulling away and the clouds starting to clear during the overnight hours. that's why it's going to be so chilly tonight with temperatures upper 20s to mid 30s inland. accu-weather 7-day forecast, even with sunshine the next two days we'll be well below average mid to upper 50s. rain thursday night and the snow level could be even lower friday and saturday down to 1,000 feet,

maybe even lower in some others if you get caught in your bigger storm. >> mike, thank you. >> more news now. a popular mural at san jose international airport has now been saved from destruction and reinstalled for travelers to see. the 20 by 30 foot refurbished mural depicts santa clara valley history. it was given to the community as a gift in 1976 and at the time airport officials hung it in terminal c but terminal c was demolished last year but they now hang it inside terminal a. >> the smithsonian is asking you to get in the game, video games. asking for the public's help to pick video games that should be included in their first exhibit on the topic. it will be displayed at the museum next year and if you'd like to vote, we have a link at our website,

>> today on oprah at 4:00, celine dion's miracle babies make their tv debut. you heard about smart meters increasing electric bills. now a new report claims they may be bad for your health. plus who is taking advantage of the bay area snowfall on this three-day weekend.

those stories later today at 5:00. >> japan hopes two giant pandas will help territorial ties and give the economy a lift. >> the boy and girl arrived in japan today completelying a nearly 30 hour journey in the szechuan province. >> the first since the death of ling ling. they've been gearing up for the arrival for a week with banners carrying panda cartoons and shops selling novelty goods. >> expected to make their public debut in late march. >> you going? >> sure, of course. >> we'd all love to go. >> we're going to leave you with a beautiful picture outside right now. >> mount hamilton, you see the snow on top mike was talking about. >> more coming this weekend. >> more coming this weekend. folks, have a great

don't miss the "700 club" this week. is there life after death? >> i was pronounced clinically dead for 15-20 minutes. are heaven and hell real places? what determines where i go when i die? i knew at that moment god loved me.