a san jose teacher accused of molesting one of her own students makes a court appearance this morning. we spoke to her defense attorney. what he had to say about his client, next. >> a robbery in and of itself with a handgun is a cowardly act. what police said about a shooting and robbery. the grave concerns near a b.a.r.t. station. the stories are next at noon.

>> good afternoon. we begin with a schoolteacher in court today. she's been arrested for allegedly molesting a student and authorities want to know if there are more victims. ktvu's tar ray moriarty explains what happened in the courtroom. tara? >> reporter: we spoke briefly with the teacher's defense attorney outside the santa clara county courthouse. the next court appearance is july 8 when his client is scheduled to enter a plea. 28-year-old colette phelps quietly left, flank by her defense attorney and another man. the middle-school teacher is accused of molesting one of her own students. >> she is deeply embarrassed to be in this situation and it's a matter that out of the respect of the privacy of the people list in the police report and ms. phelps she does not want to comment and respect that privacy. >> do you understand that? >> yes. >> reporter: phelps is charged with two counts of lewd and

lascivious acts with a 14-year- old boy. the student attended the private stratford school in san jose where she worked for the last five years. we spoke to police this morning, who say they have to have some evidence or proof in order to file such serious charges. >> when an officer arrests a person, the officer must have what is called probable cause and that is essentially some type of, you know, belief or information based on facts that can be articulated that con can substantiate someone's situation. >> reporter: phelps, seen here on her facebook pages, has had run-ins with the law before. in 2008 she received a dui and arrested the following year for driving with a suspended license. >> ms. phelps has had significant challenges and medical problems recently. >> reporter: the judge must review records and speak with

attorneys before a plea. the victim is not allowed to contact the suspect. any other victims are ask to come forward. ktvu, channel 2 news. >> thank you, day a. hayward police are looking for two men link to two robberies and a shooting that left one man hospitalized within minutes of each other on tennyson road late last night a half block from the south hayward b.a.r.t. station. why police are calling the robbers cowardly. >> reporter: the armed robbery calls came within minutes of each other and from the exact same spot. the violence escalated, leaving one of the victims shot three times. >> it's the cowardly act, robbery in and of itself with a handgun is a cowardly act. >> reporter: hayward's lieutenant keener said the first ran around 11:15 last night left two women unharmed but without money and valuables. a couple of young latinos had approached them. shortly after, a couple from san francisco international airport via the south hayward

b.a.r.t. made their way to tennyson road underneath this overpass. that's where hayward police said the same two latinos approached the husband and wife. the couple comply with the masked robbers. >> once you've gotten what you want, what you asked for, and these people have complied, undoubtedly out of fear for your life, you then shoot them? i can't rationalize that. >> reporter: one b.a.r.t. rider, new to the area, has been told to be careful. >> it's worser further down tennyson than it is here, but it's really sad. it's just sad situation. >> do we have gang issues there? yes. we do. do we have upstanding citizens just there to live their lives and raise their families? of course we have that, too. >> reporter: to protect those living and commute in the area, police continue to search for the robbers who ran away from the scene after the shooting. in hayward, jade hernandez, ktvu, channel 2 news. a search is set for this weekend for a nursing student who has not been seen in more than two weeks, even though

police believe she's been killed. michelle le was last seen may 27 before taking a break from her duties at kaiser medical center hayward. police have since classified le's disappearance as a homicide. however, family members say they're going to continue searching for le with the belief she is still alive because they have not been presented with evidence showing otherwise. >> we're going to offer up some areas that we believe, um, although they've already been searched, we believe that there are areas we want to search again anyway and certainly the family wants to help. >> police have not yet disclosed exactly where the search will take place. democratic state lawmakers are vowing to meet tonight midnight's deadline to pass a balanced budget. the plan fills a $10 billion budget gap by resorting to what some are calling gimmicks. it raises billions of dollars by delaying school funding, selling state buildings, redirecting cigarette taxes,

and enforcing long-ignored rules for an online sales tax. what it won't do is rely on tax extensions that were blocked by republicans. >> we got to bite the bullet. we got to act as adults, rise above our own little comfort zones, whether from the left or the right or in the middle, and get working for california. >> this legislature has a long history of smoke and mirror budgets and it's time to end that. we need budget that are really balanced. >> a voter initiative lowered the threshold to a simple majority to pass the budget and also threatened to dock lawmakers' pay if they don't make the deadline. also this morning, the chief justice of the california supreme court says the budget plan being pushed by democrats will cripple the state court system. chief justice tani cantil- sakauye said cutting $150 million from the journal branch will likely lead to statewide court closures twice a month and undermine the fundamental

rights of californians. and in san francisco, taxi drivers are threatening to go on strike in less than a week. ktvu's kraig debro explains why and when this could happen. kraig? >> reporter: yeah, tori, talking to a lot of cab drivers this morning -- a lot didn't hear about it so we'll have to kind of wait and see the next couple of days because it will tell a lot if it will happen. san francisco is one of those popular destination in the world. taxicabs play a major role getting tourists and residents around the city. one of the recognized leaders of the confederation of drivers wants strike for june 21. none of the drivers i spoke with this morning was aware a strike was possible and is not clear right now if the strike will last a day or more than a day. what is clear is the anger and frustration drivers feel over how they get paid. >> [ indistinct due to accent ]

we are charged for the fee and gate and high costs, plus the gas prices like sometimes minimum, like $5 for gas a day. that's most of my income. >> reporter: taxicab drivers do not want to pay the 5%, um, credit card fee for, um, these that means and what we've done is -- machines and what we've done is work on an income increase to take care of that. that's one thing we can do and have done. >> reporter: so the e-mail from one of these recognized leaders of the taxicab drivers expressed frustration over a lot of public meetings and then the outcome of those meetings are not going in favor of the drivers. it wasn't a lot of specifics, but credit card fees certainly one of the issues. drivers are issued their medallions through the ssmta. we don't know when we will get paid, said one driver, quoting to the credit card fees. he said there's a lot of fees associate with driving a taxi. you have gas, cars, credit cards, and toll booth fees.

they feel they're not make enough money on the street. as for the strike, as far as that is concerned, none of the drivers i spoke with this morning had even heard of a call for a strike so if that's going to get organized, it will have to be organized quickly. reports live in san francisco, kraig debro, channel 2 news. >> thank you, kraig. coming up, details on water rate hikes expected in parts of the bay area. why one local city is considering a ban on selling goldfish. turning out to be another warm-to-hot day around the bay area. mark has details on how hot it will get in your neighborhood. also -- >> i think anthony wiener should resign because he did lie to the public and the press for more than a week. >> the dancer caught up in the congressman's sexting scandal spoke out late this morning. hear what she said.

the budget battle in greece is fought on the streets. cameras caught these pictures of police clashing with protestors. tens of thousands of protestors formed a human shield around the athens parliament. they threw gas bombs at the ministry of finance while police fired tear gas after years of excessive government borrowing, lawmakers are considering drastic budget cuts as part of a deal to receive

more emergency funds and try to avoid bankruptcy for the country. wisconsin's supreme court reversed an earlier decision and upheld a controversial law that takes away most of the collective bargaining rights of state employees. >> you're here with your neighbors and friend because you care about worker rights. >> state workers are upset about the court's ruling and protested outside the state capitol. the ruling was a victory for republican governor scott walker, who says the law is needed to address the state's budget shortfall. he pushed for the bill, despite weeks of protests by teachers, union members, and other who called it an attack on workers' rights. an exotic dancer link to congressman anthony wiener is speaking out today and joining those calling for his resignation. >> it might have never turned into this if he had told the truth, but he kept lying. if he lied about this, i can't have much faith in him about anything else.

>> ginger lee appeared with gloria allred. lee said she began internet conversations over politics but wiener kept trying to talk about sex. when the scandal broke, she said he asked her to lie about their relationship. weiner is on a two-week leave of absence, seeking treatment, and is waiting to talk to his wife as pressure mounts for his resignation. she reportedly returned home from an overseas trip with her boss, secretaryover state hillary clinton. the richmond memorial auditorium opened to con that costa county's homeless. the coalition agency and other groups had the clean slate clinic for many services many people take for granted like haircuts and meals. one man is happy to make the transition from wild man to clean-cut. >> it have been homeless for six years now so i think this is a great thing for the people

to boost their morale. >> organizers tell us their goal is to put as many services as possible under one roof. bay area hospitals are providing medical and dental checkups. counselors are on hand to help with legal issues and job advice. there's even a booth to help the homeless who have pets. san francisco mayor ed lee is expected to sign off on massive developments project for treasure island. the board of supervisors gave final approval for the $1.5 billion transformation yesterday. the project include up to 8,000 new homes along with new commercial and office space. it will also include a new ferry terminal. the mayor is expected to sign the legislation at 2:15 this afternoon. developers hope to break ground by next year. there is concern about contaminated recycled water in the south bay. researchers irrigated the water at a high-tech firm in san jose. tests show trace elements of a

potentially cancer-causing chemical seeped into shallow ground water. officials said the findings do not necessarily stop efforts to expand the use of recycled water in silicon valley. the chemical is a by-product of disinfecting chlorine. drinking water, by the way, does not come from shallow groundwater. east bay customer will pay a little more for water service. directors for the water district unanimously approved two water rate increase yesterday. the first increase will raise average rates about $2 beginning july 1. the second rate increase will take place next year and will raise rates another $3. directors said the increases will maintain the agency's bond rating and will cut down on costs for major construction projects. demolition work at  oakland's lake merit can mean an improvement to the neighborhood's smell. lake merit frequently smells like rotten eggs because

there's not enough oxygen in the water. an ac we duct on the southern shoreline limits the amount of water and oxygen into the lake from the bay. now, crews are knocking down the ask key wie duct. the project should be finished by the end of the year. yosemite national park is under a flood warning as temperatures rise. snow is expected to melt. this could flood campground and trails in the yosemite valley. rafters need to be on the lookout for fast-flowing currents and colder-than-usual water. the flood warning is in effect through the end of the week. and that flood warning all link to the warmup across the entire state and the bay area and it's warm. air quality is coming down a bit. san jose, 80 degrees. we have mostly-clear skies out there. you can see some patchy fog mainly south of monterey bay.

fog can regroup tonight into tomorrow morning but more significant fog expected as we approach the weekend. here we go with the forecast today. basic one -- sunny with temperatures continuing to warm up. we'll begin to cool things off tomorrow. the weekend -- morning fog, still warm numbers inland with temperatures on either side of 80 degrees. current numbers updated -- already 90 to report at 12:00 for fairfield. oakland checking in 74. san francisco just beautiful at 68 degrees and santa rosa already checking in at 84 degrees. high pressure still in command of our weather for today so with that sunny and warm weather, that will translate to low 90s inland later this afternoon towards concord and livermore and antioch. as this weather system move from the north, temperatures will begin to cool off into your thursday and friday. saturday, probably one of the cooler days of the rest of the period. the warmest locations in the upper 70s, a little bounce to the number from the second half

of the weekend and then into next week, more pronounced warmness as high pressure returns. here's our fall forecast model showing you this -- basically, a clear map. that's what we have right now with mostly-clear skies, temperatures warming up. we'll take this into thursday morning. patchy fog could regroup coast- side especially south of the golden gate bridge and maybe a few patches around oakland for parts of the east bay and then increasing sunshine for tomorrow afternoon. but with more of a stronger onshore breeze, temperature will be beginning to cool off tomorrow. today, we're warming up. at 3:00, here's the temperature range -- 90s inland. around 70 to 92 degrees. we'll call it warm to hot. by 7:00, mild, 62 to 78 degrees. and still mostly clear skies at 10:00 this evening, back down into the mid-50s to mid-60s. here's a look at the numbers. still warming towards fairfield, brentwood, antioch. san francisco, lower 70s. santa rosa, around 90. gilroy, 91 and the cost is

beautiful. half of the bay around 70 degrees. here's a look ahead at the five- day forecast. a little cooler for your thursday so ma means no more 90- degree heat. the warmest location approaching mid-80s. we'll cool off for friday into saturday and then warming up a little bit for sunday and tori, for next week, we'll talk about another significant warming trend. it seems like we will talk more 80 and 90s in the long-range forecast as well. >> it's that time of year, right? >> right. right on time >> thank you, mark. >> sure. two people are questioned today about the massive wildfire burning in arizona. the fire is now the largest in the state's history. it's burned 747 square miles since memorial day weekend and destroyed three dozen homes and cabins so far. the fire is still only 20% contained but investigators now say they know what may have started it. >> what we've pretty much broken it down to is it looks like it was a campfire. and we've got a couple of, uh,

people of interest that we're talking to on that right now. >> the fire has forced thousands to evacuate but more people are being allowed to go back to their homes today. federal lawmakers are considering a new plan that would make it easier to kill some of california's sea lions. there's been a recent explosion in the sea lion population. the problem is the animals prey on endangered salmon. the new proposal would give california, oregon, and washington a quicker way to get federal permission to kill sea lions. the humane society of the united states opposes the plan. and a renewed effort to ban pet sale in san francisco may now include banning gold phish. the animal control and welfare commission originally proposed a pet sale ban last year. the idea was to stop the sale of pets from puppy and kitten mills. the san francisco chronicle reports now one commission member wants the ban to cover goldfish, guppies, and aquarium fish. some pet store owners said the

city is attempting to take too much control and that a ban will hurt their business. >> you ask me to ban it? how can i live? you sigh, this is my life and i also afraid i will lose my fish. i e sell 70 a week. how about my family? i have no money and depend on the government. >> right now it's a recommendation from the commission. the board of supervisors will have the final say. just ahead, we'll update the bay area home sales. new numbers just came out. why it's a big day for an online radio company.

taking a live look at the big board, big drop for stocks. the main reason, the violent protests we mentioned against the greek government austerity package hitting stocks hard. oil is also down 4.5% to 9483. the dow currently down 181 and nasdaq down 48. s&p is down 23. the online radio company pandora, based in oakland, began selling on the new york stock exchange today. the price for initial shares was set for $16. it's currently selling for $18. it went as high as $26 in the first few minutes of trading. some said the price could reach $83 a share. the oakland-based company has not turned a profit yet. pandora is trading under the symbol p. more bad news about the housing market. home prices across the bay area

in may suffered the sharpest year-over-year drop in nearly two years. according to the real estate tracking firm mda dataquick, last month the median bay area home price was $372,000. that's down 9% from may 2010. the firm said sales involving distressed home pull the median price down. home sales were also down more than 15% during the same period. starbucks is expanding the use of its popular mobile payment app to the android. the starbucks cell phone payment system has already been embraced by iphone and blackberry users and starting today, android users can download the app at the android market. it's in use at almost 7,000 stand-alone starbucks locations and more than a thousand starbucks in target stores. starbucks preparing to launch the application at locations inside safeway stores. one in five transactions at u.s. starbucks are paid for using the mobile app.

coming up at 5:00, a former giants slugger makes legal move. what he's asking for when it comes to one of the counts against him, obstruction of justice. plus new fallout of the japanese earthquake and tsunami. what scientists found inside the bodies of some whales. that's during the next newscast at 5:00. thank you for watching. have a great day. ♪