Morning Wrap: 5/10/11

One in four Bay Area homes underwater, UC system weighs “flex tuition,” bullet train gets Central Valley start funds, plus Arnold Schwarzenegger and Maria Shriver separate, and more inside.

• The man arrested last week for allegedly slipping a shoe camera under women’s skirts at the Fairfax Farmers Market is suspected of similar crimes in San Rafael, police say. Marin IJ
• More than 25 percent of homes in the nine-county Bay Area are underwater—meaning their value has sunk below the value of their mortgage—according to new data from Zillow.com. Oakland Tribune
• The San Ramon police officer accused of selling drugs as part of a wider scandal involving ‘Mommy P.I.’ detective Chris Butler posted $500,000 bail and is to return to court Friday to enter a plea. Contra Costa Times
• Google executive Wael Ghonim, credited with helping inspire the Egyptian uprising, has landed a seven-figure book deal with Houghton Mifflin. AP
• Mayor Ed Lee directed that San Francisco provide free charges for electric vehicles at 19 city-owned garages and at SFO. Examiner
• Venture capitalist Michael Moritz, Prop B’s largest financial backer last year, is on board so far with more than $250,000 contributed to Public Defender Jeff Adachi’s new (and as yet unnamed) pension reform effort aimed at the November ballot. The Bay Citizen
• The espionage trial of those two UC Berkeley grads held in Iran for nearly two years is scheduled to start Wednesday. AP
• California’s high speed rail authority received a $300 million check from the federal government to start construction of the first 100-mile segment in the Central Valley. Mercury News
• Registered nurses are scheduled to return to work today at Children’s Hospital Oakland after a five-day strike to register their dissatisfaction over proposed changes to their health benefits. Chronicle
• Accused North Beach Ponzi scheme operator Giuseppe Viola was sentenced to 36 years in prison in Arizona for a fraud carried out there. The Bay Citizen
• After 25 years of marriage, Arnold Schwarzenegger and Maria Shriver announced their separation. AP 
• Thieves used a stolen truck to smash through a Costco store’s doors in Danville and steal an ATM in the early morning hours Sunday. Contra Costa Times
• A fan at Friday night’s Giants game honoring Willie Mays on his 80th birthday had his giveaway statuette of Mays stolen at knifepoint. Chronicle
• UC officials are weighing the possibility of flex tuition at the system’s 10 campuses, letting demand in essence help dictate cost. L. A Times
• An outcry over a proposed Sufi religious center in unincorporated Walnut Creek has led county planners to extend the deadline for comments concerning the planned 66,000-square-foot facility. Contra Costa Times
• Police say evidence suggests suicide in the case of a 28-year-old woman whose car plunged over a cliff into the ocean near Bodega Bay Sunday. AP