i'm terry mcsweeney live on folsom street in san francisco, the scene of a spectacular four-alarm fire that chased more than 70 people out of their homes but in the middle of all the destruction, firefighters a short time ago found a four-legged survivor. story coming up in a live report. >> san francisco police have arrested four gang members charged with killing a german tourist last summer in the city's theater district. >> good morning. beautiful picture of the impending sunrise. port of oakland, downtown san francisco, winds of change are on the way. we will drop 20 degrees between now and mother's day. >> we have a new accident to report to you in oakland,

eastbound 580 o at the junction. i'll have details coming up at 6:09. >> i'm amy hollyfield live in san francisco with the story of important decision coming tha is coming today that would impact what you pay pg&e. i'll have that story straight ahead. >> thank you for waking up early and joining us. >> i'm kristen sze. >> an amazing survival story for a little dog discovered in the charred remains of an apartment building in san francisco. a massive fire left dozens without homes and injured four firefighters. terry mcsweeney is live at the scene south of market? >> i'm here on folsom street between 6th and 7th. firefighters are still here. they have fire hoses still running into the building. concerned about the possible flare-ups from hot spots they have been going in and out of the residential hotel all morning long. during one visit, take a look at what they found.

on the top floor, middle of this burned out building, they found a chihuahua. what other kind of dog would you find on cinco de mayo. the flames burned right up to the closet. it had to be filled with smoke at the height of all this but the chihuahua is uninjured, frightened but a short time turned over to animal control to be reunited with his owner later today. take a look at the fire at its peak. take a look at what that dog survived. you see the flames from miles away. you see the smoke from much of the east bay. this fire begin about 5:45 and someone threw bourbon on to barbecue that started it all. they say the 48-unit residential apartment building is history. more than 70 people chased out and three other damaged buildings next to the building. 110 firefighters out at the peak. this morning they talked about

their job right now. >> the fire this large week want to come out and we want to have hose lines and ladders in case of hot spots. we had our fire watch earlier today. right now, the crew is coming on and leaving the have relieving the other crew. >> six people were treated for smoke inhalation. red cross is taking care of 70 homeless people. arson investigators are expecting to start to sort through this to find the definitive cause of the fire. discovery the chihuahua on this cinco de mayo, a silver lining in this tragic story. four gang members are in custody this morning, charged with killing a german tourist. there were seven suspects arrested for a murder of 50-year-old man. she was caught in a crossfire of

a gang shootout in san francisco's theater district. san francisco police say new tips gave the investigators the final pieces they needed to make the arrest. >> it was really a culmination of evidence. there were a lot of things i'm not going to go in to at great length. but there was a lot of pieces of puzzle that came over many, many months. >> an 18-year-old and two juveniles are charged as accessories. one adult suspect is still at large. >> closing arguments in the chauncey bailey murder trial is set for may 17 after defense attorneys presented a handful of witnesses and declined to have their client testify. yousef bey and one other is charged of three kiontsd of murder in connection with the deaths of chauncey bailey and two other men in oakland. prosecutors rested their case on tuesday after presenting six weeks of testimony. bey's attorney only called one witness yesterday.

they called several witnesses and have until may 17th before closing arguments begin. >> the first of two votes that could raise your electric bill. pg&e is asking for a 20% rate hike. but the people that use the least energy could pay the most. amy hollyfield is live at state puc to explain. >> i'm not going to say what you expect. those who conserve energy will not be rewarded under this plan. in fact they may see their rating up. by contrast those that use a lot have power could get a 20% drop in rates next year. some critics say it sounds like pg&e will be stealing from the poor to pay the rich. pg&e says the current system unfairly burdens those that use a lot of power. those that use a lot of power are not necessarily the rich.

they want to make it fair for everyone. the system was initially created to motivated people to save power but it looks like things are about to shift. it's going to give credit to those that use a lot and hike to those that don't. visit my facebook page if you get a chance. let me know what you think. the vote is expected today here in san francisco at california puc. live in san francisco, amy hollyfield, "abc 7 news." happy cinco de mayo, if you are thinking of celebrating tonight by drinking alcohol please don't drive home afterwards. extra police officers will be around the downtown tonight. 13 santa clara police agencies say they are adding extra patrols. >> aaa is offering free trips

under ten miles to get you home safety. >> bart riders that want something read to check out a book station in millbrae. book lending machine, similar to the machine called library agogo. the one at millbrae station can be used by anyone with a library card. if you don't have a library card you can apply for one. the book is free and the ride is not. >> but it's still great. >> 6:07. maybe a swimming pool today would be nice. >> that is the mike nicco i know. >> but a good book under a tree whatever it takes to relax on a day like today. good morning to you. mid to upper 40s around santa

rosa and half moon bay, rest of us in the 50s. winds are calm this morning. you can see the temperature drop in napa and fairfield, two degrees cooler in san francisco. rest of us at the same temperature if not one to five degrees warmer. still pretty warmer but not as yesterday. low to mid-70s around san francisco, san francisco, richmond, upper 70s around san mateo to low 80s for the bay shore. mid-80s in the south bay and north bay and upper 80s into the east bay valleys. around the monterey bay, 70 and near 90 in gilroy. cooling trend will hit inland tomorrow, all of our temperatures back to average by saturday. then below average by sunday as we are still looking at big 20-degree temperature drop and warmer weather for monday,

tuesday and wednesday but nothing to cancel plans over. good morning. we've got an accident to report. this is in oakland, it is westbound 580 right at the 24 junction. it's been cleared into the area there. it's not affecting traffic. let's check live shot through macarthur maze, 580 going toward the bay bridge, that is clear there. at the toll plaza, metering lights might have been turned on a little bit of a back-up around the west grand overcrossing. no problems coming into san francisco. it is moving at the limit. just ahead, gm recalls more than a 150,000 cars. >> gas prices continue to soar while demand keeps declining. what it could mean for the incompetent. >> and hugh jackman one man show don sanchez what's hot

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state lawmakers are considering ending state funding for caltrans. this proposed plan from republican members would make cities and counties responsible for their highway and bridge projects. a state audit shows six of ten caltrans construction projects run over budgeted with little or no oversight. they say it would save the state

about $2 million. general motors whose recalling 150,000 vehicles. it recalls 2011 chevrolet cruze compact sedans. they want to inspect the steering shaft to make sure they were properly installed. all of the affected cars were built in ohio and sold in the u.s. or in canada. no crashes are injuries have been attributed to either problem. >> just as we enter the busiest driving month, people are cutting back on their driving. government and industry reports show falling demand for gas which is above $4 a gallon in 13 states, while prices shot higher demand has been falling for six straight weeks now. that could be a sign the economy is slowing. force gas prices, some analyst expect it to hit $5 a gallon by

summer. let's hope they are wrong. supply and demand thing, interesting. >> you take those economic courses? >> not working. >> okay. all right. [ laughter ] >> kristen is thinking how can i get to the pool today. >> there you go, beautiful sunrise this morning as we look back from sutro tower. thank you very much for another wonderful shot. is it danny, thank you very much. very good. take a look at yesterday's temperatures, record highs were either set or tied. got some areas, they don't have 30 years of data but they will

eventually like napa, concord, hayward, santa rosa, at the airport. those areas also set record highs yesterday. let's talk about what is going on outside with that beautiful sunshine. temperatures running in the mid to upper 40s around fairfield, santa rosa and half moon bay. around the monterey bay inland, upper 40s, low to mid-50s watsonville and santa cruz, highlights, cooler along the coast and bay, still be warm inland. cooler everywhere tomorrow and culminate weigh the coolest day on sunday. next stray hour, possible sunday and monday. this time of the year, fourth driest month, we don't get big downpours. redwood city, even with cooler conditions, six degrees warmer than average. oakland 8 and livermore 13 degrees above average with 88.

>> take a look at the south bay, 84. most of the neighborhood in the low to mid-80s. mid to upper 70s through most of the peninsula. low to mid-50s along the coast today with daly city around 54. near 70 in downtown san francisco and sausalito, mid to upper 70s san rafael and vallejo. everybody else in the low to mid-80s and then 15 degrees cooler the at your beaches. fremont, castro valley, 80 degrees for you. 90 in brentwood, otherwise mid to upper 80s around the east bay valleys. monterey, 68. santa cruz, 74. great day to be at the ballpark, sunny and 70 at the coliseum, warming up to 76. tonight we'll have 50s in most areas, mid to upper 40s around the coast but notice the clouds to creep closer. we should have fog around the coast for tomorrow's commute. area of low pressure, call it a trough, more of a wind shift

line, land breezes warm and sea breeze is cool. look what it does to our temperatures and nearly 20 degree drop by mother's day. then a warming trend for monday through wednesday. good morning. we're going to take you back to oakland. another accident that has been cleared out. westbound 580 at the 24 junction. should not be affecting your commute so much in that area. let's take a look for you. typical slow traffic out of antioch, westbound highway 4 between hillcrest and railroad avenue, speeds at 9 miles an hour. live cam terra linda, southbound 101 headed towards san rafael and to the golden gate bridge, it is just a gorgeous ride. no problems. beautiful sunrise and no delays headed into san francisco. before you leave the house for all the latest, good idea to

check it out click on bay area traffic. just about 6:19. hugh jack man on the stage in san francisco. here is don sanchez with what's hot knotted. ♪ >> movie star hugh jackman presents his show at curran theater. he a tony award winner. >> transformation of pacific heights mansion. decorateders showcase features the work of more than two dozen interior designer and wicked plants, intriguing stuff at conservatory of flowers at golden gate park. ♪ >> musical theater classic, one of longest running shows, cats

at the. >> ballet launches a spring season, starting at yerba buena center of the arts. ♪ >> mother's day weekend, manhattan transfer at yoshi's in san francisco. >> 6:20. stanley cup fever, heating up in had san jose. >> sharks put the red wings on the brink tststststststststststss

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welcome back. ed lee says summer school will be available this summer for 900 students that didn't pass english or math this year. unspent grant money will be used to hire 30 summer school teachers for those math and english classes. budget cuts had left enough money for summer school for only 12th graders and special education children. >> san jose sharks have a chance to suite the red wings when they meet again tomorrow night. sharks beat the red wings 4-3 in overtime last night taking a commanding lead in the

semifinals. a winning goal, third of the night to complete it. if the sharks don't wrap it up in detroit they will be back about a in the tank on sun for game five. >> still ahead, hundreds of nurses at children's hospital in oakland are about to go on a five day strike. >> also a law enforcement struggle drug scandal takes another twist. san ramon police arrest one of their own. >> pg&e customers that conserve power could end up paying more than people that use more. >> live in ofolsosom street where 70 people of homeless. a hotel fire and a survivor has been found that has been turned over in to animal control. >> the weather is fairly quite at across the country. no delays at major airports. check out flight tracker at

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>> closed captioning brought to you by mancini sleepworld. good thursday morning. 6:29 away from opening bell. labor department says the number

of people applying for unemployment benefits increased the highest level in eight months, a sign the job market may be weakening. [ bell ringing ] >> applications rose by 33,000 last week. costco and victoria secrets saw surging sales. wall street expectations and we'll go live to the new york stock exchange. dozens of san franciscans and one frightened pet are homeless after a huge fire damaged a residential hotel and three other buildings. terry mcsweeney is live in the south of market neighborhood with more. here we are about 13 hours after this fire begin, firefighters still on the scene. hoses still laid going into this building. they are concerned about hot spots. as you can see debris out here, water still coming out of the building from all the water that the firefighters poured on it. during one of the checks they found a chihuahua in the building of the building.

first, though, take a look at video how amazing there is a survivor. this fire started about 5:45 last evening, 70 people evacuated, there were no alarm, no fire alarm at all. red cross caring for them up the street. residential hotel probably a total loss. and then this morning, cruising in and find a survivor. four-legged kind. scared but alive and apparently in good health. >> where did you find this guy? >> he was like a closet area upstairs. he found a place to hide. >> how close was he to flames? >> he was really close. it seemed like he was right at the center. >> it had to be a chihuahua on cinco de mayo or a mexican hairless. six people had to be treated for smoke inhalation.

arson investigators are expected to be out this morning to try to determine a cause. some of the residents are saying there was a barbecue going on and someone through bourbon on to the barbecue. something caught fire and one thing led to another. we've got four damaged buildings and more than 70 people homeless. i know there is going to be more from kristen about some of the people that were chased out of the hotel. >> most residents had very little time to get out but they managed to do without serious injury. one resident had to be hospitalized. the rest of the evacuees. most only had time to get out to with the clothes on their back. other fire victims says there wasn't time to save any belongings from the fast spreading flames. >> it was a false alarm, senior citizens trying to trip an

alarm. it went up like a match. most people had to abandon their belongings. >> red cross is still searching late last night to find individual housing for 72 single residents. they sent up a temporary shelter a block away from the fire. a san ramon police officer is in custody in yet another twist to a growing law enforcement scandal. scott holder says that officer was arrested yesterday on five felony charges including grand theft and possession of stolen goods. police say his arrest is connected with the investigation into a contra costa county enforcement team. commander is accused of selling drugs stolen from police evidence lockers. he was a member of that team for nearly four years. >> i've known him for many years. it's a sad day for us, because

we're going to get three this. our department will survive. lombardi was booked into martinez detention facility. >> california puc meets today to vote on a request by pg&e to raise electric rates. regulators will start to consider revamping the way consumers are charged. the rate hike will be considered in two parts, today the state puc is expected to determine the total amount of money the company can start charging customers later this year. by the end of the month they may vote on a plan that will lower rates for high volume users and customers that conserve may see bills go up. >> nurses are expected to begin a five-day strike. they walked out last october. today's planned strike by 800 nurses is in response to a

proposal that would cost each of them about $4,000 per year to cover families. hospital administrators say they can't afford the current healthcare plan. they say they offered the nurses a less expensive alternative. >> state lawmakers have good news to disagree on. state tax board has taken in $2 billion more than expected this year. republicans took this to mean there is no reason to ray raise taxes. los angeles times reports, brown's budget will require a mix of spending cuts and tax increases. >> 6:35, now. this morning, nice start to the morning. let's see what is going on this afternoon. >> it's pretty, but it's going to cool down a bit. >> the coast and bay to a lesser extend not until tomorrow. >> cold front is going to miss us completely but it is help

pushing that wind shift line, difference between the warm land breeze and sea breeze is pushing that line to the east, that is why we're going to see cooler conditions. stepping out right now, winds not bad but you can see they are out of the west at sfo at 7. most of us calm. it is very still this morning. temperature 48 in napa at 8:00. rest of us pretty much in the mid to upper 50s. maybe around 60 in fairfield and santa rosa. by noon, lunchtime temperatures run in the mid to upper 60s half moon bay, san francisco, oakland mid to upper 70s through most of bay shore. low 80s inland and by 4:00, you can see the cooling along the coast. san francisco, mid to upper 70s through the bay shore and mid to upper 80s as you head into the east bay valleys. those will be the warmest areas. seven-day forecast, cooling will hit all our neighbors and won't stop until it drops our temperatures by 20 degrees on

mother's day. slight chance of a shower sunday and monday, do not change your plans. as we get closer we'll tweak it out and show you when it may happen. an accident, it's cleared out, but it's westbound 580 at 24 junction. it's been there for quite some time but it's not blocking anything. a little bit of slow traffic toward the bay bridge. first let's go to belmont, just before walston, some sort of cart is in the middle of freeway and drivers are swerving to miss it. that is north 101. to the maze, we saw slow traffic. you can see this is the 880 coming through, this is 80 headed westbound over the bay bridge and looks look a little slowing from the 580. coming from the walnut creek area, your commute is not too bad headed toward the 24

junction bunching up around north main. once you get on 24 and caldecott no delays report. >> trading is under way on wall street. we have a live report from the new york stock exchange. live look at the big board, dow is down about 69 points. >> new beginning for the famed san francisco entertainment complex that will be the city's first target. >> and a royal newly wednesday visit, find out when prince william and duchess kate are scheduled to visit california. >> the secret weapon used in osama bin laden operation. so secret the navy seals had to blow it up. that is next. [ male announcer ] everywhere your pet goes

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6:42 on a thursday, clouds on the radar. around eureka cloud and san diego. temperatures will be affected, only 71 in san diego and back in to the 80s in l.a.

60 in eureka. near hundred in palm springs. 58 at lake level in tahoe and upper 80s around chico and sacramento. abc news is learning more about a secret weapon used in the mission that killed osama bin laden. meanwhile, president obama is leaving now for new york city to visit ground zero hoping to offer closure for 9/11 victims. >> reporter: the president is expected to depart washington just about now. we want to blif bri you live picture, air force one is waiting for his arrival. he will visit the site of the former world trade center later this morning. meanwhile, more on the secret weapon so secret navy seals had to blow it up when it became disabled in the operation. before leaving the bin laden compound they set the damaged helicopter on fire to destroy

any evidence of the stealth blackhawk a closely guarded secrets. it's existence was only rumored until they saw the photos on the internet. it's no ordinary helicopter. one reason is heavily coated fabric like material. >> the reason it stands out they have a disk over the rotors which redesigned the back of it and to deny radar signature. >> there are probably people in the pentagon that are very concerned that pieces of the helicopter may be on their way to china. we know china is trying to make stealth aircraft. >> the remaining large pieces of the secret u.s. helicopter were hidden under a tarp and taken to unknown destination by officials. president obama said they won't be released calling them too gruesome and fearing they could cause backlash. most of bin laden's bodyguards were not armed but many weapons

were found inside that compound including in bin laden's bedroom. we learned that his 13-year-old daughter witnessed her father being killed. >> live in the newsroom, janelle wang, "abc 7 news." in japan, workers have entered the reactor building of union at the damaged fukushima daiichi nuclear power plant for the first time since right after the march earthquake. tokyo electric power company says they are installing ventilation machines in hopes they will be a southbound radiation from the air. they had to lower the radiation levels inside the reactor before it can proceed to install cooling systems. >> sony says another 25 million pray station customers may have been hacked. it brings the potential victims to 102 million users.

they are calling to protect customers from increasing number of data breaches. mary bono mack chairs the subcommittee. >> 77 million accounts stolen and including 10 million credit card numbers, the data breaches has the potential to be the great robbery and cyber attack. sony turned turned down to testify at a hearing yesterday. instead they sent a letter calling themselves a victim of a sophisticated cyber attack. san francisco leaders will announce new details today on the makeover project for the downtown hetrion building. a new target store at fourth and mission has been announced. at today's groundbreaking we'll find out what other tenants will move in. it will have 600 construction jobs. target moves in on the second

level hiring another 700 employees late next year. >> a just released report on weekly jobless claims is influencing the markets. >> check in with jane king with the bloomberg business report. good morning to you. rents on the rise, especially in san jose research firm, san jose and new york city are the strongest rental markets. nationwide rents are up an average of 2%. they say watch more more rent hikes so it's making buying a home more attractive again. >> profit at gm more than tripling last quarter. rising u.s. sales of chevyquick knocks and suvs picked up. they are lower this morning.

big jump on redwood city company >> lower start of things in general, a bump up in weekly jobless claims. the numbers have been trending lower for weeks and they started to jump higher by 477,000 people, that is the highest since august. we get a big monthly jobs report. that comes out tomorrow. here is how the markets are dealing with this. we're actually off our lows of the session. bloomberg is trading down also. some americans are celebrating the news of osama bin laden's demise for patriotic products to navy seal and believe it or not toilet paper with bin laden's face out. they say we got him with s the

hottest seller. live at the new york stock exchange, bloomberg business news. so yesterday, we saw a few records, today will there be any more? >> we'll be close, but hard to get them inland because mostly in the mid 90s. records were around the bay and the coast. that is the area we're going to see the cooling. >> let's get that out of the way the fact it's going to be warm but temperatures along the coast and bay shore is not quite as toasty as yesterday. golden gate bridge, marin headlands, makes for a beautiful 3-d like picture on our 2-d screens. half moon bay 41, monterey bay, low to mid-50s everywhere in salinas and 46 in gilroy. cooler at the coast and bay but

still pretty warm inland. we'll get our cooling tomorrow and everybody will keep dropping through sunday. that is when we reach the low point of our high temperatures. stray shower is possible. sunday and monday, stray showers this time of the year. they tend to be stray and come and go rather quickly. 24-hour temperature change, while all are still above average. concord and santa rosa, one degree cooler. fremont 3, oakland 9 and san francisco 10. so the closer you are to the bay shore, the most dramatic your temperature will be. let's start in the east bay valleys, brentwood, mid to upper 80s. east bay shore, mid to upper 70s castro valley and fremont, near 80 for you. south bay, low to mid-80s with 84 in san jose. mid to upper 70s all the way down to menlo park. low to mid 60s along the coast.

near 70 in downtown san francisco. beaches as you head northbound into the valley, mid-80s. near 90 toward gilroy. first pitch, gorgeous sunshine, warming to 76. tonight we'll be in the 50s just about everywhere. cooling during the overnight hours. wind shift line, trough of low pressure on the west side we have a cooling sea broo breeze and east side we'll have the land breeze. this trough will move east that office the door for the cooling sea breeze for today. temperatures will drop 20 degrees everywhere by sunday. then a slight chance of a shower sunday and monday and then warmer with more sunshine tuesday and wednesday. this is what it looks like from china beach yesterday.

bobby guger, this is earlier in the day looking back toward the golden gate bridge and in the evening hours, this is what it looked like as you were looking to the northwest. thank you very much bobby. upload your pictures or e-mail them to ureport at our address. >> first reports of a stall could jam things up through richmond area. eastbound at carlston but it's very heavy. metering lights are on and traffic is backed up past west grand avenue at the bay bridge. san rafael headed toward the civic center, a little bunch go up but things clear out as you head southbound toward the golden gate bridge. we've got the very slow traffic

out of the central valley this morning. you assembling headed over over the altamont pass, speeds of about 17 dropping down to 15 miles an hour headed towards livermore. very slow traffic, pretty typical, westbound 4 from antioch towards concord to railroad avenue, speeds dropping below 10 miles an hour. that is quick look at the traffic. go to the website at abc7news.com. great resource, click on bay area traffic. >> prince charles is visiting this week and his son and new daughter-in-law will follow. prince william and kate will arrive in the state july 8th and stay three days right after touring california or after touring canada they will come here to california. >> 6:53?

>> recapping our top story, 70 people are homeless following a fire that destroyed a san francisco residential hotel. >> good news here. terry mcsweeney is live on the scene with zbrlts this residential hotel is an absolutely terrible shape. water still coming out, debris in front of it. gutted by fire, small piece of good news. it's about 18 inches long. take a look at the chihuahua who survived this fire. hiding in a closet, firefighters found him this morning around 5:00. firefighters say flamed burned right up next to the closet but the dog is okay with animal control right now. take a look what that dog lived through and made 70 plus people homeless. a spectacular fire started about 5:45 last evening, spread to three other buildings, someone

threw bourbon on a barbecue grill that started the fire. firefighters say the building is probably a total loss. victims are being taken care of at a community center just a block or so where i am. let's go to amy hollyfield. good morning, amy. >> good morning. we have a question for people to ponder over their coffee this morning, should all pg&e customers pay the same rate. right now if you conserve energy you get a break in your right rate. the new idea on the table. this one would give the break for those that use the most power. people that use a lot of power could see their bills go down 20%. some critics say they are stealing but they say big consumers are not necessarily

rich. heavy easeers are carrying more of burden. a woman says she is a family of five with three dogs, they use a lot of energy and she is hoping this idea will passed to. it is coming before the california puc here in san francisco this morning at 10:00. we'll be covering it for you. it will be a good one to watch. final check on weather and traffic. >> let's start with the current conditions, recommend actively calm outside with a8g in los gatos. down in the lower elevations, cooler with half moon bay at 41. napa at 45, santa rosa the same rest of us in the 50s. by the afternoon hours, temperatures will be above average even though we won't be quite as warm along the coast and bay shore.

mid-50s along the coast. we'll have mid-70s around the bay shore and upper 80s inland. 20 degree drop by. >> no east shore freeway, that is 80 westbound on the left side of your screen, a stall on the first side of the screen in the richmond area, lane number two. 680 southbound through walnut creek is sluggish this morning as well and on to the 24 junction where traffic picks up well. toll plaza backed up past the west grand overcrossing and beautiful sunrise. >> we'll see you later. thank you for joining us. >> have a great day, bye-bye.

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