a parolee was shot in san francisco. police say they only returned fire. we'll have the story. one fairfield neighborhood's emotional reaction to a man they calmed "papa". i think it's only fair to ask a corporate jet owner to give up that benefit --

good afternoon. we begin with an officer- involved shooting in san francisco. it happened just billion 8:00 at goff and eddie streets and involved a dangerous, wanted parolee. ktvu's jade hernandez joins us live to explain what sparked the shooting and how it's still impacting the neighborhood. >> reporter: that's right. san francisco police still have this area blocked off. they are still investigating at this hour. the 36-year-old man police say they shot this morning is a wanted parolee, a man recovering from his injuries at the hospital in afternoon. >> i heard three shots. i was in the kitchen and i heard three shots. i don't know what time it was. i heard the three shots -- three shots. >> reporter: this woman visiting from sacramento was too scared to venture and

investigate. but we're told the suspect was driving a honda out of a nearby garage. >> the officers engaged the suspect in an attempt to arrest him, identified themselves as police officers, at which point the suspect pulled a gun out from his waistband. >> reporter: the parolee slammed into this blue car, the car that belongs to this man. >> i never thought it would be my car. >> reporter: newschopper2 shows the scene shortly after police arrived this morning in san francisco. we're told the parolee had an ak-47 and a handgun in the car. as for those affected in the shooting. sacred heart cathedral prep officials called for a lockdown. police are only identifying the

suspect as an asian man wanted on a $75,000 warrant. he was taken to san francisco general with what police are calling non-life-threatening injuries. all right. thank you, jade. in fairfield police are investigating a homicide after a storeowner who was injured in a robbery died of his injuries. the robbery happened at a mini- mart. -- mini-mart. kraig debro is live and has more. >> reporter: you can see people are signing a beer advertisement. people who live here say this year, mr. ho, served customers first. even if you didn't have any money, cow pay him later, customers they say he saw as people first. neighbored say the man who -- neighbors say the man who owned the store was part of their family. they called him family.

others called him mr. ho. >> i want to say that mr. ho is a good western. every day. i would be like, hi, how are you doing? i'm gonna his miss him. >> reporter: his family says he was attacked in his own store and died at the hospital. it happened at 7:50 last night, at the travis dairy. the suspects, the killers, didn't get much money. >> they stole the whole cash register. there was not even that much money in it, maybe $40. >> reporter: police sea -- police say -- >> -- police are looking for three young men in a light- colored sedan. ho's family shared this wedding picture with us. it was taken 17 years ago.

at the time, this guy was only 2 years old. >> i'm personally also very shocked that i lost my friend who raised me. >> reporter: the people out here just held an impromptu prayer circle. police say they are looking at surveillance video, hoping they can piece together a description -- a description of the suspect. reporting live from fairfield, kut channel 2 news -- ktvu channel 2 news, kraig debro. president obama drew a firm line in his negotiations with republicans over raising the nation's debt limit. it came at his first white house news conference in three months. the president said any deal must include the elimination of certain tax breaks for oil companies and for the -- sand for the wealthiest americans. >> before we ask our seniors to pay more for healthcare, before we cut our children's education, before we sacrifice

our submitment to the research and and -- to the research, i think it's only fair to ask a corporate oil owner or a jet owner to give up that tax benefit that no one else enjoys. >> mr. obama says some must be prepared 20 cut government programs but wants to cut taxes for the midded -- middle class. the president defended u.s. participation from nato's military campaign against libya, saying there had not been a single american casualty. the president reserved comment on a labor relations board against beau -- against boeing. as of this afternoon or tomorrow, governor brown will sign the state budget passed by

lawmakers late last night. the budget was approved with no republican votes. democrats used a new voter- approved simple majority to pass the budget on time. they closed the remaining 9.6 billion deficit with deep spending cuts and new fees. the budget anticipates $4 billion in new revenue based an an -- based on an improving economy. but if that doesn't happen, further cuts built in the budget would go into effect. it cuts an additional $150 million each from the california state university and the university of california. and the universities are first in line to be hit by those trigger cuts if the anticipated $4 billion in additional revenue does not materialize. >> one provision in the new state budget will require californians to pay tales 1 sales tax for items online.

amazon has objected and has threatened to cut ties with them. the first lawsuit has been filed related it the -- related to the crash between a rig big and amtrak train that killed at least six people. the lawsuit was filed yesterday by one of the train's attendants. it claims negligence on the part of the truck driver, lawrence valli, and the company that employed him. that company released their first statement yesterday expressing their deepist sim pithoi -- deepest sim pithoi to those -- to those -- deepest sympathy to those killed.

rescue boaters found three boaters stranded. one person went to the hospital for hypothermia. the others were not hurt. one says the boat shifted when the pots of crabs tipped over. the coast guard will work to raise the boat. ahead, why thieves may force some bay area drivers to change their habits. also moyer chaos in the streets -- also, more chaos in the streets overseas. a2@f

ktvu was the first to bring you exclusive pictures of early- morning sweeps in east palo alto today, aimed at sending a message to known gang members. ktvu's claudine wong was there

and tells us who they targeted and the message they are sending. >> no one knows these people better than who we have sitting here in this room today. >> before the sun was up, the team gathered. >> you all know what to look for. their target -- no members of the two gangs. >> open the door. >> they know we're coming. we haven't made it no secret obviously that we are targeting them. they know. they know we're come out there and we're doing these checks, specifically on gang members that have clauses of being on parole or probation. >> some had outstanding warrants. some were on the run. others were being checked -- some were being checked on but all were being searched. >> do you know where his son is? >> no. >> these types of sweeps are not cun common. but this sweep, being done for a very specific reason. the reason for this sweep, this

3-month-old. police believe his death was a a case of mistaken identity. police say their message is clear. 3-month-old babies are not collateral damage in gang wars. >> we'd rather tackle this now and send the message out now that this will not be tolerated. >> today the word seemed to be out. houses were empty. >> do you know where he is? >> only see him two times here. >> is he part of a gang? >> i don't know nothing. >> you but police say there's little doubt, word of the sweeps are out. if they don't find their targets today. they will be back. >> they could still be over there. >> in east palo alto, claudine wong, ktvu channel 2 news. settlement talks continue in the oscar grant shooting case. yesterday, b.a.r.t. agreed to pay grant's mother $1.3 million to settle a federal lights -- rights lawsuit. today, b.a.r.t. will negotiate with six other

plaintiffs including grant's incarcerated father and five of his friends. b.a.r.t. briefly agreed to pay grant's young daughter, 1.5 million. the girl is now 7 years old. the board of directors unanimously approved a tunnel contract. the federal government has tentatively approved funding. some people tell "the examiner" the board should have waited until the money was in hand. the subway will connect to kline na town. service is set to begin in -- china town. service is set to begin in 2019. [ sound of gunfire ] >> parliament passed a bill in the face of growing resentment of its citizens. the riot injured more than two dozen police officers.

the unpopular bill raises taxes by $40 billion over five years. lawmakers say the measure allows greece to receive more bailout loons from international -- bailout loans from international treasureses. in afghanistan, a terrorist attack at a luxury hotel has left 19 people dead, including eight suicide bombers. the standoff lasted more than five hours. it began when militants armed with grenades stormed the hotel. the assailants blew themselves up. they killed the last three on the roof. a 23-year-old man from ireland remains in critical condition after he was injured during a football game on saturday on treasure island. mark mcgovern suffered a severe head injury. police are investigating what happened. it appears he might have been hit by a player from the other

team. his parents and girlfriend have flown in from ireland and are at his bedside at san francisco general hospital. pg&e is reducing the pressure of the pipeline north of san bruno. after problems were found during a video inspection. the pipeline runs on hillside in south san francisco. pg&e says a video inspection showed minor dents and welding problems. now outside experts will conduct other inspections on the pipeline. and there are reports that robert nichols, the expert on the pipes, he says now that changes in gas line pressures over the years caused this problem. the government says there's no radiation threat from a fire burning dangerously close to new mexico's los alamos

library. frames are just 50 feet from the ground. watchdog groups fear up to 30,000 barrels of waste will explode. they say the fire would have to jump over canyons to reach key buildings. the blaze has forced the evacuation of the entire city of los alamos. that's a population of 11,000. well, yesterday at this time, of course, we're talking ode -- we're tracking moderate to heavy rain. right now the rain is south but we still have clouds in place. that will be the seem across at least a good portion of the forecast area later on -- later on. right now, the main rain shower activity is heading out to the sierra. but we're gonna hold onto the clouds. as far as the records, i can't remember a june like this. the record yesterday, .81. the old record was .22 set back

in 1952. this is making june 2011 the second wettest june is on record. the record, the all-time record is 2.57. a lot of numbers show to show you but a very impressive storm that moved into the region. you can see some of the current numbers as far as temperatures. it's cold. most areas in the upper 50s to the upper 60s. livermore checking in at 60 and 63. santa rosa, 62 and san francisco in the upper 50s at 59. you can see the system moving across northern california now heading out to the east. for today we'll go with partly to mostly cloudy skies. we'll hold onto chance for a few sprinkles or at least some drizzle out there. look what happens though at the time line as we head into the weekend. high pressure returns. that will really warm us up back into the muper 90s for -- mid- to upper 90s for saturday and sunday and the 4th of july.

for today, we have mostly cloudy skies. some breaks in the clouds as well, i see a few partly cloudy observations. 7:00 tonight, partly cloudy, mid-50 1s 209 mid 60s. by the 10:00 hour, some patchy fog developing, especially coast side. morgan hill, and gilroy, san jose, 50s. is our warming trend begins tomorrow with clearing skies. we could have patchy fog hanging out at part of the shoreline. it's been quite a week with a roller coaster in the forecast. it looks like get ready for another heat wave. >> so we're kind of in the transition period. >> okay. thank you. people in concord may want to think about parking cars in a garage if possible after a series of gasoline theft. on the blog, residents posted a comment about someone siphoning gas from cars park in some of

the areas. including dana estates, crystal ranch, the peach place, the willow, florida drive and meadow lane. this morning we talked to one man who said his car was hit a couple of months ago. >> first thing i noticed was the hose was hut because i left the hose out a little bit so coy water my roses and there was -- >> yeah, they didn't put the cap back on. i had plenty of gas. it looks like they only took a couple of gallons. >> he said he did not call police because he was -- because he was not sure what they could do for him. walmart customers will get a price break on gasoline this summer. walmart stores will give a ten- cent-a gallon discount for those who use the walmart card. hoe hope -- they hope this will encourage customers to use the reloadable walmart card.

ahead -- why you will soon pay less sales tax in california and more tributes are coming to the amazing cal baseball team that went from the brink of extinction to the brink of a national title.

stocks are higher, once again, because of hope that with the greece signing their bill for new aust terty

measures that -- austerity measures that that with will -- that that will avoid a default. today, bank of america reached a settlement with some of its highest profile investors on bond deals. b of a will pay $8.5 billion to settle claims related to poor quality mortgage securities sold by countrys about side mortgage. the agreement -- countryside mortgage. the agreement must still be approved by the court. this friday, the sales tax will stop by 1%. that's because governor brown was unsuccessful of getting a tell foe rarely sales -- temporary sales increase. when the increase expires on friday, the state sales tax will go from 8.25% to 7.25%. we asked people in the area for

their reaction to this. >> i like a penny back. any money we can save or evacuation i like it. >> i'll -- or get back i like it. >> the state's gonna bank less. the safeth from the lower -- from the lower -- the state's lowering the tax will be most effective on bill-ticket items -- big-ticket items game. by the way, south carolina joust won the college world series last night, 5-2. coming up on the news at 5:00, you might heard of the it

gets better projects. a group of u.s. senators including california's dianne feinstein have joined the campaign find out how they are encouraging young people to hang in there. that story rant -- that story and more coming up at 5:00. thanks for watching. that a vet gray -- have a great day.