good afternoon. topping our news, despite record ridership, drastic cuts could be coming to a popular transit agency. they're holding a meeting today to consider various options. i'm sure that the board is getting an ear full. good afternoon, craig. >>reporter: good afternoon. public comments right now, riders giving an ear full, as you said, toward board members on the second floor at the county district office. they're telling them about plans to close nearly seven stations and to cut off nearly half the weekday trains. for some people it's a very personal decision. >> we actually bought our house across the street from the station because of the train. >>reporter: they're considering declaring a fiscal emergency. >> right now we have a 30

million-dollar deficit. if we keep running 86 trains a day as we are right now, so what we proposed is what we can afford, and that's 48 trains. >> they also want an increase on full fair one way tickets. some agencies have their own money problems. riders who gave comment says the cuts would create a whole new set of problems for them. >> the rest of the thing is if additional funds are available. >>reporter: they filled up an adjacent room. most of the people we talked to said they'd pay more. >> for every dollar we spend, we get 47 cents back at the fare box, so if we raise fares to cover the cost we'd have to more than double them, which we

think would drive a lot of people away. >>reporter: council members feel they're being pitted against one another. the board's only going to cut seven, so there's a little campaign going on. a vote is set for later this afternoon. >> all right, thank you, craig. this morning the marine county coroner identified a body found buried is identified as the missing 74-year-old man who lived there. the body was exhumed from under a newly constructed brick patio of the home. dale smith had been missing several months. a neighbor had reported him missing on february 9 and cadaver dogs located the scent. they're looking into whether his wife is tied to his death. alameda county deputies searching for an inmate who escaped. the 21-year-old was brought back to the jail from court

tuesday night, but somehow ended up in the inmate release room and was let go by mistake. a three day hearing into the gas pipeline explosion is wrapping up today in the nation's capitol. today federal investigators are listening to testimony about the new pipeline technology that helps detect pipe flaws and leaks. it's believed the explosion may have been link had to a poorly constructed well on the pipe seam. investigators also want to know why they never notified about the emergency responders about the existence of the pipeline. >> there is a very simple solution. i've introduced a bill that would provide that solution. it's hr22 and would require pg and e and every utility in the country to notify every

homeowner within 2,000 feet of the transmission line. >> the ntsb will issue a final report and safety recommendations in september. we'll follow today's hearing all day with a full report on channel 2 news at . you can also get the latest information and video clips on our website. just look for the gas line explosion tab on the front page. in san jose the owner of a mexican restaurant has a lot of work to do after a destructive early morning fire. the fire broke out at the restaurant near story road and highway 280. that's one of several business in a strip mall. firefighters were on another call nearby and were able to get to the scene quickly. it took a half hour to knock the fire down. the restaurant is now boarded up and damage is estimated at $200,000. >> there's heavy smoke damage to the restaurant. they'll not be able to open today or any time soon.

>> i'm sad because they're very nice and work very hard. >> several other businesses were also chained shut after firefighters broke in to check for smoke and fire damage. firefighters believe it started because of an electrical problem in a storage closet in the back of the restaurant. just a short time ago city officials joined administrators at the regional medical center to break ground for a new hospital tower, marking the official beginning of construction, which is expected to take three years. the 160,000 square foot tower is part of a 300 million-dollar expansion and renovation project. >> this is the closest hospital for just about half of the people in the city, so this is a huge investment they're making. they've been spending hundreds of millions of dollars out here, have several new buildings. this is the latest phase.

it's absolutely important to have high quality medical services to improve the life of the people of san jose. >> hospital officials say the expansion project will provide jobs for about 2,000 workers. also in the south bay today, the san jose earthquake team marks a milestone, how the demolition of one building is part of the effort to build a new stadium. good afternoon. >> that's right. it is demolition day for the san jose earthquake. in just minutes this building right here, the opening you see, the t will come riding out in a military tank because this building on coleman avenue used to be a plant where they used to manufacture military tanks. before that it was a food processing plant. in a few minutes the claw is going to reach up and start tearing no this building to make way for the new stadium.

>> having your own stadium, just being able to call it our own, i think it's exciting. in return we'll get more fans come to the games. >> players say the new stadium will boost the team's morale and also bring an economic boost to the city of san jose. during construction and development it will create 14,000 jobs much once everything is built, the city projects it will bring 62 million a year into the local economy and 2 million of that would be generated for the city's general fund. >> it creates a sense of community and connection to the sports teams as well as

creating jobs and economic development so it's a win-win for everybody. >> this project is privately funded , and right now they're still in the process of getting permits. once all that work is done, then we'll have a better sense of a time line of when this stadium will actually be built and open to the public. recording live from san jose, ktvu channel 2 news. ahead, a dog making national headlines because he's still alive. this is a critical day for football fans, whether they'll be an nfl season this fall the question. any rhine heading rain heading our way? we'll get the full forecast. a deal announced at the white house could mean changes

to our local highway.

new developments this new time in the fight over president obama's healthcare overhaul. a federal judge issued a ruling a short time ago declaring that states must continue to

implement the new healthcare law as the case challenging it makes its way through the court. the new federal healthcare law is said to be unconstitutional by some. president obama said that khadafy has lost his legitimacy to lead and must step down. he remains boxed in in the libyan capitol of triopoly surrounded by his followers and militia. the president made those comments during a news conference with mexican president, here to discuss several issues important to

both countries. today the two leaders declared a break through in a long- standing dispute over a cross border trucking. mexican trucks are barred from entering the country because they don't meet stringent safety and environmental standards, and as a result mexico has placed higher tariffs on dozens of products. >> i look forward in moving forward in a way that strengthens the safety of cross border trucking, lifts tariffs often u.s. goods, expands our exports to mexico and creates jobs on both sides much the border. >> the presidents also agreed to deepen cooperation in combating drug violence and the president promised to speed up delivery of equipment and training that mexico needs to keep up the fight. despite storms and rising gas prices, many of the big names in retail are reporting surprisingly good numbers

today. limited brands bed bath and body works have sales up 10%, victoria secret 15% increase, jc penney all doing well last month. the gas prices and late timing of easter will hurt sales in march. another encouraging economic report, the u.s. labor department says the number of people filing new claims for unemployment benefits last week hit its lowest level in three years. there were 368,000 applications, down 20,000 from the week before, and the lowest number since may 2008 when new claims stay consistently below a certain rate the unemployment rate usually goes down. a videotape is now the center of investigation targeting a half-dozen san francisco police narcotics officers. the city's public defender's office has released this tape

it says proves police illegally searched two apartment buildings and also allegation that some of the officers falsified police reports and committed perjury on the witness stand. san francisco's current da and former police chief said his office will investigate. >> will you consider maybe recuesing yourself. you're the police chief at the time. >> there's absolutely no reason why i should recues myself. >> a police investigator in oakland has told a judge that a gang injunction is needed to prevent people in the neighborhood from being terrorized by gang members. the injunction would make it illegal for the gang members to gather. opponents say it could lead to

racial profiling. the judge could make a decision as early as next week. one of governor jerry brown's ideas to save the state money is to consolidate some of the hundreds of so-called special districts across the state. in the nine county bay area, there are almost 400 special districts. in marine county alone there are 30 special sanitary districts, each with a budget and executive director, staff, offices and vehicles. >> if you are redundant, it's unnecessary expense, then you'd have to compromise and consolidate. i think we can consolidate. >> people say we're the worst of it and those people have an agenda. i don't know what their agenda is. >> analysts say one consequence is spills. police have third their

third arrest due to security cameras. a suspect was arrested after the license plate was detected by a camera. the man was stopped after the car he was driving triggered an alert when it was photographed because the car had been reported as stolen. the national football league is now only hours away from a possible walkout. if they can not come to an agreement by 9:00 tonight our time, the owners are expected to lockout the players, putting the upcoming season in jeopardy. that could have implications for the 49ers trying to get started on building a new stadium in santa clara. fans this morning seemed unconcerned. >> a a lot of bull. that's my take. i think the players get paid

enough. >> it's hard to relate to billion debonairs and millionaires asking for more. >> analysts say one possibility is the nfl players union would certify that would then allow players to challenge a lockout under federal antitrust laws. scattered clouds across parts of the bay area, but the bulk of the showers moving out of town, although there's still a chance this afternoon. not a lot to show you on the radar right now. temperatures right now are on the warm side. in fact already warming up, low 60s for oakland and hayward. santa rosa checking in at 54 degrees.

the rain clouds will be returning. we have an unsettled weather pattern with the clouds moving in. as a result our sun cloud mix, we can't rule out the possibility of an isolated shower. as we do head into your friday, high pressure returns that ensures our dry forecast, but scattered high clouds increase, temperatures basically low to mid 60s for tomorrow. here's the forecast. you can see what happens into friday. not a lot to show you, but just a few high clouds moving into the region tomorrow afternoon. we'll take this into saturday, dry, but by saturday afternoon could bring in rain chances across the north bay, a better bet saturday night and into early sunday morning. 58 to 65 degrees. by 6:00 partly cloudy, low to

mid-50s, then by 9:00 partly cloudy skies, upper 40s to low 50s. here's a look at the numbers. all the 60s showing up in san francisco, san jose topping out in the mid 60s, and right around 65 as well. here is a look ahead with your five-day forecast, and tomorrow looks just fine, patchy fog an issue for the morning hours. chance of a shower up in the north and then by saturday night into early sunday morning increasing the rainfall rates. the bulk of the rainfall for sunday morning, then a big drop off in temperatures by monday, with that cold showers. a southern california company is promising to have cleanup crews on stand by following a controversial publicity stunned over the bay. a company released 10,000 red balloons over stan fran to promote its latest game.

the release made some environmentalists furious. a stray puppy has defied death not once, but twice, and is now the focus of an adoption frenzy. the little dog was participantsing around in a trash can. he had a checkup, and he needs a special home. >> his story ended up on someone's facebook page. we just made a call to the shelter and the manager says he's sifting through hundreds of requests to adopt the puppy

and plans a decision soon. good days coming in for boating fans in the east bay, and today is the anniversary of a notorious incident in southern california that triggered a chain of major headlines.

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marcy: no, but there's a charming farmhouse. bree: right next to my posh castle! i'm sensing a theme here. well, i am the queen, dear sister. the moment you feel run down or achy nip flu-like symptoms in the bud, with oscillococcinum. get oscillo and feel like yourself again. oscillococcinum, nip it in the bud. the dow up over 200, better an expected economic data,

rising expectations of a strong unemployment report. nasdaq up, s&p up 22.5. the city of oakland will soon take over the operation of the jack london aquatic center. the nonprofit group will hand over management next month because of a lack of funding, keeping the center open good news for clubs that depends on the center's low fees to store their boats. today is the 20th anniversary of the rodney king police beating, a case that would eventually lead to deadly riots in los angeles. an amateur photographer captured this video that showed four los angeles police officer beating king with batons. when they were acquitted riots broke out. two of the four officers were later convicted on federal civil rights charges. we're just learning about another attack at the state

hospital. we have a report on the way and will have the latest at , plus the san bruno pipeline explosion hearing in washington d.c. we're learning about two promises pg and e made and what they'll be doing starting very soon. coming up in the next newscast, thanks for watching, have a great day.