up, two women were masterminding a seven figure scamp and also denied the governor scripts a sequel to his pride a furlough for tens of thousands of workers and bay area's reaction to the immigration reform. >> complete bay area news coverage starts right now. this is bay area news at 7:00. >> good evening, it is wednesday, july 28 i am maureen naylor and this is bay area news at 7:00. two employees of a half multinational software company were arrested today on felony embezzlement charges. they are accused of running a payroll scamp that netted more than $2 million jana katsuyama is live with the details. >> the two women worked for

autonomy incorporated and what is surprising is how this went unnoticed and hauled the women were finally caught. >> prosecutors say the two women worked here at the tower in the payroll department of autonomy incorporated, an international software company now the two women, a payroll clerk and a financial analyst are in jail accused of grand theft in puzzlement and computer use crimes. >> north american headquarters are based here in san francisco to. >> they operated ischium unnoticed for about three years. >> they were foxes guarding the hen house. >> in that time women issued pulse payroll tax to themselves fully $2.6 million. >> they would give them selves bonuses which were not burned

or warranted or authorized. >> police say automony discovered the fraud when a woman was filed for an unrelated reason and she filed for unemployment listing her annual salary at $450,000 instead of the $63,000 base pay. she turned herself in. >> we are trying to make sure that all of the money is accounted for. you're doing a forensic analysis. >> today corporate officials said the scam will not impact their operation and said the monetary value is not material to the business and with expense in the accounts from the period in which it occurred. automony fully cooperating with san francisco police and will continue to cooperate with the district attorney. >> please save the woman is a naturalized u.s. citizens in the other woman is from the philippines. both are being held in jail tonight each on $1 million bail

and right now san francisco police say they are facing the women's bank accounts and trying to find out if any money was sent overseas. reporting live, jana katsuyama, ktvu channel 2 news. the driver of the submit truck lost control today and the driver said he was delivering a load of concrete and hit a tree and a power pole before coming to rest. the driver suffered minor injuries and pg&e said 1500 customers lost power until 145 this afternoon. ac transit says it is considering a new that could affect thousands of bus writer is a. they are facing a $56 million deficit and says it needs union workers to improve contract concessions in

negotiations stalled last month they imposed a controversial new contract on the drivers and members of the union objects to the new work rules and shift changes and says the contract was imposed about 150 to 200 employees have been calling in sick every day. >> it could be a result of the union's efforts. >> blackmail, they are blackmailing the public. >> ac transit riders are paying the price and the to eliminate weekend service it promises to give the public six weeks notice. in marin county and city is installing new surveillance cameras that can take pictures of every car going in in -- the town. they are situated the cameras are around the only route to and from the area. one is being installed on the boulevard and the other on

paradise stripy the cameras will help officers catch criminals but opponents say they worry about invasion of privacy. state employee unions are fuming again over furloughs. governor schwarzenegger has reinstated a friday furloughs beginning next month most state employees will have to take off three days a month without pay. allie rasmus has reactions. >> waiting in line to register a car or renew its license can take hours and with more state worker furlough days some customers expect the week time to get even lengthier. >> i understand the logic behind it because there is a big budget deficit but as they sit at the back of a 20 person lying it does not seem like a great idea. >> i came here around like, 1:30 p.m. and is almost 3:00. >> reporter: a spokesman says there's no other solution. >> because the legislature has failed to approve a budget and

they will issue ious in august we are pc prices and the governor has to do whatever he can in his power. >> governor schwarzenegger's for all order orders state employees to take three unpaid days off per month and the furlough order will affect these engineers including some engineers working on the new bay bridge. they were also part of the furlough program that the governor ordered last year. >> are people have been taking 15% pay cut for 18 months now. >> reporter: he says the furloughs are a political attack tactic. >> it is nothing more than a cheap bargaining trick to try to put pressure on them to agree to a contract that is inequitable. >> the governor's spokesman says the order will remain in effect until a new budget is reached. in san francisco, allie rasmus, ktvu channel 2 news.

>> for more information click the state budget had on our homepage, ktvu.com. governor schwarzenegger signed legislation on the the late president ronald reagan at the presidential library. the law designates february 6 as ronald reagan day in california and the breeze six of next year would have been his 100th birthday. the legislation also plans a break in centennial event. san francisco city attorney is appealing a court ruling and i'll leave a city supervisor to run for reelection. she claims that she served the two term-limit but she only served three years during her first turn and feels she should be eligible to serve a second full term. herrera says that the first three years should count for a full term. san jose mayor chuck reed

officially withdrew his request to place a new ballpark initiative on the november ballot. asked the mayor to hold off to another and he is still seeking a city called the resolution in support of moving oakland a's to san jose. such a move requires the approval of major league baseball but because of the territorial rights belong to the san francisco jets. >> commissioner of major league baseball has requested that we not have a ballot measure regarding baseball on november 3 and has offered to help pay for the cost of the special election in the springs. >> critics can voice their opinions at next week at close to the council meeting. california is known for its wonderful beaches but according to a new report thousands were off limits to do pollution. according to the 20th and l deep water quality report there were more than 2900 beach closings and health advisory

days. the state ranked 20th out of 30 coastal states in beach water quality. the northern california counties says the worst included san francisco, santa cruz and humbled counties and among the reasons cited were bacterial contamination. economic recovery remains in some parts of the country while slowing in other parts. the federal reserve tracks grows in 12th regions. economic activity in the remaining eight region was described as modest but the report says the number of issues are keeping a recovery in jet include high employment, cost of consumer spending and an ailing housing market as well as an edgy stock market. that news sent a chill through wall street as stocks ended the day lower for the first time since last wednesday. the dow lost 39 points and nasdaq fell 23-point a drop of

about 1%. this summer's cold snap is coming. temperatures in wine country have been about 10 degrees cooler and grapes are not developing and some pinot pinot are still green. >> we are about two weeks behind what he would call an average year. >> crews are now out allowing the free to get more sun and some will develop more flavor the longer they stay on the vine but warm weather in the next few weeks is critical. >> children from low-income families are receiving some much needed help as they get ready for the start of a new school year. hundreds lined up as aker -- lined up at sacred heart to

register for new back packs and they can be dropped off until next friday. california is expanding its cash for plant his program to get more californians to buy energy-efficient products. they added solar power and heating and cooling products to the list of appliances that apply apian the ignition says there's still more than $19 million available to consumers to buy energy-efficient appliances. the shooting at a cow out -- of takeout is raising new concerns about the handling of their animals also ahead on bay area news at 7:00, a legal cutback for arizona and its efforts to in the implement a tough immigration law and lead reaction in the streets. caltrans makes a step towards completion of the bay bridge. id did warm-up just a bit

today and the fog clears from the coast. tomorrow's forecast is coming up.

>> look at this, this is a cell phone video of police chasing a dairy cow at the california state fair and the shooting and killing of that power is prompting calls for change. the humane society wants to end livestock exhibits between pregnant animals and the uc- davis is demanding in a review of the procedures for handling all animal incidents in once a plan to prepare large venues to deal with an escaped large animal and mr. day's incident happened before the fair opened to the public. a fire continues to burn tonight and they say they have

the best buyer 25% contained. it burned more than 2500 acres about 75 miles north of los angeles bid at least 25 buildings have been destroyed. the fire is one of two burning that force about 2300 people to evacuate. a federal judge today throughout the major provisions of arizona's controversial immigration law and opponents say they are thrilled all supporters say this is just the first legal ground. samantha has reaction from washington. >> this the day before arizona's controversial law goes into effect, temporarily blocking the most contentious provision of the lot arizona governor jim brewer who signed the law in naples says the preliminary injunction will be appealed. >> we knew regardless that one side or the other side was

going to appeal so this is against the progress. >> the judge blocked a provision allowing local police officers to check the immigration status of people stopped for other possible infractions whom the officers have been is no basis to suspect. makes it a crime a nickel immigrants to apply for and work for arizona was also blocked. the u.s. justice department saying, while we understand the frustration, a patchwork of state and local policies would destruct symptom of immigration enforcement and the arizona attorney general who opposed the new state law says wednesday acquisition puts more pressure on the federal government. >> by taking this action, it has an absolute obligation to fix our broken immigration system. >> reporter: with the exception of those banned measures the arizona immigration law goes into

effect thursday appeared in washington, samantha hayes, ktvu channel 2 news. despite the ruling protesters took to the street of san francisco. about 100 demonstrators gathered outside of house speaker nancy pelosi's office and 19 people were arrested after they blocked the intersection. some were local clergy members who say they were disturbed by the slow pace of national immigration reform. facing increasing the met increasing concerns oakland's police chief outlined his plans today appeared he met with community leaders to explain what he is doing to do with the recent layoffs of 80 officers. he said part of the plan is to encourage greater cooperation between the community and officers as a way to combat crime. the chief also said he shifted most of the department's resources to hours of the night

when most crimes occur. their world's largest the chip maker say it has developed the prototype of a revolutionary new microchip and made a video showing how it works. the new device uses light beams to move large amounts of data and during testing the chip moved 100 hours of digital music and one second but it will not be on the market for a least five years. a huge debt today and the construction -- a huge step in the construction of the bay bridge that will form the signature tower of the eastern section not expected for completion in 2013. >> reporter: one onlooker has a history of video. >> they cannot understand the work put together. >> we condensed the link the

project as workers hoisted one of four legs of bright and will create a 525-foot tower and each piece wheat with 1100 tons and will be connected by beans. in the end it will look like a four legged stool. >> amazingly enough bridges are still built in the history of today is reflected by twisting the work. >> newchopper 2 shows the work done by the same company and today marks and it can step toward completion of the bridging a few years. >> it is also great for the morale of the team because we are really starting to see the physical manifestation of the bridge now. >> a couple weeks ago the main pieces passed beneath the bay bridge and the suspension bridge will be the largest of its kind when finished. >> over the next two years it will be a visible thing for the entire bay and this will change the look of the base so we're

at the starting point. >> reporter: only one of the four legs of the tower will be put in place today and the other three of the next couple weeks jade hernandez, ktvu channel 2 news. >> those who participated in the ceremony said -- >> this is a world class structure and there is no tower like this anywhere in the world. this is something for generations that we are going to be very very product. >> if the bridge is finished in 2013 completion would come 24 years after the earthquake damaged it. the red hot san francisco giants are keeping up their winning ways. they got off to an early start tonight against the florida marlins and just moments ago, they finished off the marlins with a bases loaded walk off it and it came after the marlins had tied the game at nine in

the ninth inning. coming up on bay area news at 7:00, white decision in washington d.c. could provide a big lift for landmark the area buildings and a house and it will be before normal summer weather comes to the bay area. chief meteorologist bill martin will be here with the answers next.

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>> east bay cruise -- are repairing water mains in richmond and are more complex than anticipated. a first pipe ruptured just after 5:30 a.m. and buckled the street. then about one hour later and other pipe burst. crews repaired the first broken pipe but its broad another clique about a dozen customers lost water surface and you can see what a mess it was there. a beautiful day, clear. is the senate still out there? >> it is. along the beach as well. that is great news if you are in the city or golden gate park but the fog is coming back to night. i would suggest an indexed two

hours it creeps into your neighborhood and tomorrow morning and is almost as far inland as it was this morning. the highs were impacted by the fog but in many cases with a quicker burn off temperatures were in one to three to 6 degrees warmer soil temperatures will continue with this uptick in temperatures. temperatures will be slightly warmer than they were today. this not a heat wave. we're just warming up from temperatures from temperatures that were well below the average. the forecast, you can see it has got a pretty good push and therefore in the little bit warmer and we are looking at the fog end how far inland it go as. the computer model does this and we're moving into the micro clements, the big ones. all along the way as you know,

between concord is number three microclimates and you can get into another one or two microclimates. the highs tomorrow will be able bit warmer and still not hot. 85, 83 degrees. quite pleasant but still cooler and fairfield then i would expect for this kind of fear. climatology would have appeared field in the low 90s and antioch into the low 90s -- would have their field in the low 90s. there you have the high temperatures for the coast. it is a dry one and a little bit warmer. >> i am trying to remember what normal is any more. and efforts to restore a hangar making a big boost for the house subcommittee has just

placed $10 million in the house women sponsored the bill and if it survives the full committee will go to the full house. hangar one was built in 1932 and is one of the largest freestanding structures. that is our report for our coverage continues online at ktvu.com. tmz is up next right here on tv36. have a great night.