shots ring out on a busy san francisco street. what scared witness saw and -- witnesses saw and the latest on the investigation. >> if you take bobble wrap and go pop, pop, pop. that's way heard. >> that story -- live from berkeley. >> reporter: i'm tara moriarty live in san francisco where the city is making way for the america's cup. but not everyone is happy about

it. we'll explain why -- coming up. good afternoon. topping our news -- breaking news involving a school shooting in los angeles. a lanes unified school district says -- spokesperson from the school district says two s tudents were wounded. this happened at gardena high school. this account differs from local police who say three people were wounded there this morning. ktla tv has shown one youth in police custody. a district spokesperson tells k cbs, that a student brought a gun to school in a backpack and it went off when he dropped it. a los angeles fire department captain tells "the associated press" that two victims have been transported to a hospital. one in serious condition. one in critical. these are live pictures from

the scene in leaks, where there was a school -- scene in los a ngeles, where there was a school shooting. there are reports that the shooter, believed to be a student, is in custody. we'll have more on this story as we get it. another top story today -- san francisco police are investigating a shooting in broad daylight this morning. it happened at 16th and fulsom streets. it started as an altercation on a muni bus and then spilled out onto the street and many shots were fired. rob roth joins us with the latest. >> reporter: hi, tori. we're on 16th near fulsom. you can see the block is closed. police investigators are still on the scene trying to piece together what happened. what we do know that at about 9 :30, several shots were fired. one person was struck by a bullet but is expected to recover. police say two young men had just gotten off a muni bus when they were confronted by three

other men. >> it looked like they got off the bus and had confronted the three suspects and then had some type of verbal altercation at that point. >> reporter: shots were fired. one bullet struck the top of the windshield of this honda pilot parked across the street. the owner of the car owns a doughnut shop across from where all of this happened. >> yeah. i scared. i never. i never see people like this before. so scared. >> reporter: there were also bullet holes in the middle door of a closed-down factory across from the doughnut shop. police are looking for three suspects. again, one person injured in a shooting in broad daylight near a busy intersection. reporting live from san francisco, rob roth, ktvu channel 2 news. >> thank you, rob. san jose police are investigating an overnight s hooting. the 20-year-old man was found in the parking lot at story road and hopkins way around

11:00 last night. he was pronounced dead at the scene. his identity has not been released. witnesses say they saw a vehicle fleeing the scene but so far no arrests have been played. police say the shooting appears to be gang-related. in just the past hour, police captured the last of three suspected bank robbers after chasing them through three east bay cities. around 9:40, fremont police received a frantic call that the u.s. bank on fremont boulevard was being robbed. when officers arrived, they immediately began chasing the suspect's car. the chase went from fremont, through union city, into south hayward, where the leaked robbers crashed their car into a -- where the alleged robbers crashed their car into an industrial parkway. police arrested the first two suspect suspects immediately and found the third hiding behind a dumpster near a

church. an owner the a house thinks he now how the fire started to his house. jade hernandez has more. >> reporter: good afternoon. >> i smelled smoke. i was upstairs in the attic on my computer. i smelled smoke. i went downstairs and i kept g etting darker and darker. >> reporter: this resident called 911 immediately. his partner, the owner of the home was still in her bathroom, when she ran from her house. the couple was not hurt but flames threatened both homes next door. berkeley firefighters were able to get one of the neighbors and her cat out safely. the assistant chief says this two-alarm fire quickly spread. the resident explainwhere he believes the fire started. >> it looked like the heater. i called 911. >> reporter: the resident who called for help felt response

was slow. but berkeley firefighters say the call came in at 9:45 and firefighters arrived seven minutes later despite the fact that there is a fire station just three blocks away. neighbors noticed something terribly wrong much sooner. >> i opened up the door. right at the time, the third and second floor were completely engulfed in flames. >> reporter: five engines and two trucks responded. firefighters quickly tore flames down by sending -- by cutting a hole at the top of the roof. >> they ventilated the roof. that's what you saw happening on the second floor. >> reporter: the fire did not spread to either home next door. but firefighters are still here knocking down hot spots. reporting live in berkeley, jade hernandez, ktvu channel 2 news. >> thank you, jade. the berkeley city council is set to vote tonight on a plan that could have taxpayers c overing the cost of city

employees' sex-change surgery. under the plan berkeley city hall would set aside $25,000 every year for so-called gender reassignment surgery. the city adopted the benefit back in 2007 but it's not been able to get its healthcare provider to cover it. >> i haven't heard any opposition from any of my colleagues on the council. when it passed in 2007, i believe it was unanimously p assed. this is -- i really think this is a prudent and efficient way of us providing the benefit. >> critics say city leaders should focus on more traditional san fernandos -- services such as road repair. a san francisco-based group that secretly tested mercury levels in fish is warning about tuna and swordfish. the group is called "got m ercury." they collected samples from 40 bay area super, mas.

they say -- supermarkets. representatives for the seafood industry say the group is waging a public relations war to save the fish. house republicans are g earing up on a vote on repeal on healthcare. both republicans and democrats are promising a kinder gentler explain the words over issues like healthcare. but republicans are moving forward with their argument that healthcare reform will kill j obs. >> many of the new members, the 63 new net republicans c ampaigned on this pledge, on this promise. >> let's have a talk and then go out and make changes and have a vote. >> an economist says the gop is misinterpreting a congressional report on the impact of the

reform bill. paul says some people may leave their jobs because they won't need work-related health insurance. he says that's much different than employers you canning jobs. many people in the bay area woke up to another day of thick, dense fog that made for dangerous conditions on the roads. fog blanketed large areas of contra costa county. the national weather service issued a fog advisory last night and into the morning. the fog reduced visibility to one quarter mile or less in some areas. motorists are advised to have many -- much room between vehicles. the mayor has just finished touring the waterfront where the america cup will be held next year. the mayor focused on the positive of the super bowl of the sailing coming to the bay area. tara moriarty join us in san francisco with more. good afternoon, tara. >> reporter: good afternoon. we're here on pier 27. this is just north of the bay

bridge. actually, this is the area where the start and the finish line will be for the america's cup 2013. but come the end of this year, about 70 to 80 businesses that line the waterfront will have to move elsewhere to make way for the regatta. earlier this morning, ed lee took a walking tour of pier 27. seafood companies, bower limousine service will all be edged off this location by january 1st of 2012. the port of san francisco is still trying to figure out who can stay and who can go. >> this will move things around a little bit. i'm paying attention to that and working very closely with the port to make sure they fulfill all of their obligations. >> we make our money from the tenancies. there's over 550 businesses on the waterfront. wherever possible we'll try to relocate them. [ cheers ] >> reporter: san francisco

soccer has an outhe -- outdoor field that would be forced to u proot its players. if the court can't find any property for these businesses, it will be referring them to commercial real estate brokers and the office of economic and workforce development to find private sector space. while these merchants may not be too thrilled about the cup, city officials say this event will generate tens and millions of dollars in revenue and will create 9,000 jobs. as far as pier 27 goes, what's gonna be happening here come the cup, this is gonna be the public viewing area for larry ellison's team, he's the software mogul who won the race in february off the coast of spain. we're live in san francisco, i'm tara moriarty, ktvu channel 2 news. ahead -- another court appearance for the woman who was in the san francisco drug lab scandal. it's celebration at a bay area school. and there there was a of fog this morning -- there was a lot of fog this morning.

steve will tell us if there's more to come. small gifts that were a big deal to some homeless people today. that story -- ahead.

the san francisco lab

employee cleared of the san francisco lab scandal could hear from a judge on another charge. the judge may set a preliminary hearing date for former crime lab technician, deborah madden, on an unrelated drug lab scandal charge. she pleaded not guilty. state authorities decided not to prosecute her because of a lack of evidence. we're finding out today that a 21-year-old concord man turned himself in to police last night in the -- in connection with a fatal hit and run. they say 53-year-old sheree l indborg was hit by a car when she ran into the street to rescue her dog. the first driver stopped to help her but the second driver s topped and then -- hit her. he told investigators he did not think he hit a person, only a dog. in san francisco, muni operators are concerned about what they say are hazardous

conditions at a street car storage facility. several trains derailed in the green street zone in balboa p ark. updade are expected but not -- upgrades are expected but not for another year or so. operators are nervous about possible injuries at the green street yard and that they will be blamed for any damage. this morning in san jose, hundreds of homeless people s howed up at say yet heart community services. on the first and fifth treatment of the month -- 15th of the month sacred heart gives away packages. one man says he needs what's is

inside for tomorrow. >> i need that for a job interview. i'm gonna shave up and brush my teeth. >> they provide housing, food and rarely something for h ousing. although the products -- products are given out a few times a month, residents can receive them a few months only. residents in one santa cruz county neighborhood are worried that an overflowing creek is strengthening their homes. the homes sit on a coastal b luff. the santa cruz sentinel reports homeowners are willing to pay to dig a drench and fix the p roblem. how far, the county says the situation does not warrant an emergency declaration which is needed for the work to begin. in southern california, riverside residents are seeking compensation from the city for damage caused by last month's storm. 30 claims have been filed so far and the city attorney expect more. residents claim the city should reimburse them for damage to

their homes and cars because storm drams were -- storm drains were not cleared. the city has 450 days to respond to the claims. certainly not any weather problems like that around here. let's check in with steve. most of the fog is gone. most of the fog. there's still some up in the north bay. a little bit up in the east bay. the thick fog around san jose and other location, mostly clear around 9:00, 9:30. we're still looking for hazy sunshine. sanjose is already 60 degrees. moffet naval air station, 63. we do have some lingering fog. rather breezy. some of that wind is beginning to pick. sunny, warm. a few locations will be on the cool side. tomorrow, not as much fog. it does look sunny and breezy as the system digs into the north and that will stir things up a littleby and hopefully give us patchy fog -- a little bit and hopefully give us some patchy fog. live stormtracker2 show us a

few patches of the fog around napa, fairfield, north wind. calm, santa rosa, patchy fog. most of it is gone by now. temperatures will start to rebound here for the areas that are in the sun. could see some mid- to upper 60s, near 70 for santa cruz. the system for the north will spin. we did have the dense fog advisory this morning, there will probably be patchy fog l eft. we need that system to dig in and it will starting tonight in to tomorrow. 62 redwood city. mountain view, 63. livermore at 61. santarosa, that's sonoma county airport, 48 degrees. but 50s for most or near 60 for some. but still out to the east bay, north bay, the fog is keeping temperatures in the 50s. 48 in tahoe. they've had record highs for two days in a row. ukiah is counsel to 38. we do have almost 80 degrees, probably is by now, palm s prings, 74. yesterday, these high temperatures close to 90 degrees for pasadena.

santabarbara, 87. ucla 86. sandiego, 82 and closer to home big sur, a warm 81 degrees. probably not as warm as southern california today. not much left of the system which is digging down into the north of us. but that's the one we expect to give us some wind starting tomorrow. today your forecast calls for lingering fog. patchy fog, mostly sunny occasionally some higher clouds. 50 to 70. some areas are socked in. can't get out of the fog and a little breezy means chilly conditions. we do have 50s and 60s for a few. it will be mid-50s. now we start to warm things up. south bay, los gatos. 70 santa cruz, tori. we'll go 64 morgan hill to san martin and gilroy. it looks oh, so quiet. sunny warm he, breezy, thursday, friday. not much in the way of any

rain. >> it's nice to see the sun. >> maybe until february. >> really? >> yes. an oakland school is getting recognition. manzanita school on east 27th street is just one of two california schools to win a national title one distinguished school award. the principal says it all s tarted six years ago when they redesigned the school and d ecided that in addition to academic proficiency, they w anted -- they wanted all students to be bilingual. >> so for all of them to be b ibing ghoul, we started the program and those students l earned both spanish and e nglish. >> she says the next goal is to focus on cultural again tency. the national title one program has honored schools across the country since 1996 for improving student performance among low income populations. san francisco's airport commission is trying to attract

more international carriers to sfo. so today, they will consider lowering operating fees for flights to and from canada and mexico. right now, any international flight is charged about $1500 in fees. today the commission could drop that by about a third. there are three airlines that fly to canada and five that travel to mexico out of sfo. more carriers would create more competition which could result in lower fears. still ahead -- the raiders get ready to introduce their new head coach. also, a surprise guest inside an east bay home. o?oowq

apple shares have bounced back from their -- from this l ows as analysts digest news from steve jobs and the stock is down about 2% right know. you can see it's at 41 but it opened almost 6 1/2% lower. jobs announced he's taking another medical leave of absence yesterday, that's after a leave in 2009 for a liver transplant and one in 2004 to fight pancreatic cancer. the oakland raiders will

hold a press conference in the next hour to introduce their new coach. hew jackson has been promoted t o -- hugh jackson has been propose meted to head coach. it was a flurry of activity for a castro valley couple surprised by an uninvited guest that smashed into their home through a window. a deer chased out of the neighbor's yard and apparently got so shooked, it decided to drop through the window. the animal knocked over the l amp. neither the animal nor the couple was hurt. this morning, regis philbin announced his retirement from his weekday talk show. he made the announcement at the start of "live with regis and kelly." she's 79 and has hosted that show for 28 years. he says he will step down around the end of summer but gave no specific date.

his cohost kelly ripa will continue the popular syndicated show with a new host that has not been determined. coming up on the news at 5:00, a san jose pet shop is h as -- rescued pet whites from a hoarder in southern california. but nature has taken over and the problem has multiplied. find out what unique tactics, andy is using to find homes for the rats. those stories and more coming up on the news at 5:00. thanks for watching and have a great day.