Although the move may also cause another city to drop out of the association, SVACA officials maintain that this new development will not affect their plans.

"SVACA will still continue. The cities of Campbell, Santa Clara and Monte Sereno have said we want to do this," said Deborah Biggs, executive director of SVACA. Biggs said that the decision by the Los Gatos Town Council will have a minimal impact on either the design or scope of the shelter.

At a Jan. 5 council meeting, the council voted 4-1 to draft a letter stating the town's intent to withdraw from the project and to pursue final negotiations with the city of San Jose for animal control services.

Saratoga, Los Gatos, Monte Sereno, Campbell, Cupertino, Santa Clara and Sunnyvale formed SVACA in 1998 after the Humane Society of Santa Clara decided it could no longer function as a shelter for the stray animals from the seven municipalities. SVACA members decided that it would be more cost-effective to jointly build a shelter than to individually contract with another agency for animal control services. The partnership, a Joint Powers Agreement, would also enable each member to have more control over the service than using a contractor would allow.

Members would contribute to the shelter based on their individual need.

However, after initial cost estimates for SVACA skyrocketed from $6.5 million to $10 million, both Sunnyvale and Cupertino decided to pursue other options last year.

Los Gatos council members pointed to similar reasons—the escalating costs of participating in SVACA and the future soundness of the organization—as reasons for its withdrawal.

Speaking at the meeting, Mayor Steve Glickman expressed regret at not being able to pursue a deal with SVACA.

"It does not come easily to abandon those other cities we worked with," he said. "Unfortunately, it raises some questions of stability, with Sunnyvale gone and Cupertino gone."

The expense associated with SVACA also played into the council's decision. According to a staff report, the annual cost of working with SVACA would be 21 percent more than working with San Jose.

"I feel very confident that, except for going to a different location, that change is going to be invisible to residents, and, in the meantime, we're saving money in a very tough year," said Councilwoman Diane McNutt.

Representatives from Monte Sereno and Campbell attempted to convince the council to stay with SVACA.

"I'm advocating SVACA because I care about animals," said Monte Sereno Councilwoman Barbara Nesbet. "I'm advocating SVACA because we, Monte Sereno, and Los Gatos have worked together as a terrific team ... because we as a team can make a difference."

Councilman Joe Pirzynski was the only member who voted against the motion. Pirzynski opposed the motion on the grounds that the San Jose deal had not been thoroughly investigated.

"Simply getting the best deal for dollars—I think we have to be cautious about that," he said. Pirzynski also voiced concern that the town may be compromising the issue of control over a small monetary amount.

"I think we have to be very careful about what we are giving up," he said.

Four cities currently remain in SVACA, but Saratoga previously indicated that it would act in accordance with the Los Gatos decision. Monte Sereno, Campbell and Santa Clara have until Jan. 25 to make a final decision regarding their involvement.

Monte Sereno's Nesbet, who is also a representative on the SVACA board, said she did not anticipate the city backing out of the once-seven-member agency.

"I think we get a very good deal out of SVACA, and I don't see any reason for us to pull out," she said. "I don't think it makes financial sense for us to pull out."

Nesbet added that, because Monte Sereno is the smallest of the cities that uses SVACA's services, it pays the least amount in terms of annual operational costs, between approximately $12,000 and $15,000. Monte Sereno City Manager Brian Loventhal, who chairs SVACA's advisory committee, said that amount could vary by as much as $2,000, depending on how many cities remain with SVACA. Nesbet said she didn't think the difference would be significant enough to warrant dropping out of the JPA before the Jan. 25 deadline.

Nesbet also said the proposed site of SVACA's animal care and shelter services—off San Tomas and Lawrence expressways on Thomas Road—will be convenient for Monte Sereno residents. But Loventhal was unclear as to how much the city's capital contribution will be toward the purchase of SVACA's new building. The city's next meeting on Jan. 20 is scheduled for organizational purposes, but the agenda may be revised to discuss SVACA.

The next Los Gatos Town Council meeting will take place Jan. 20 at 7 p.m. in council chambers, 110 E. Main St., Los Gatos. The next Monte Sereno City Council meeting will take place Jan. 20 at 7:30 p.m. in city hall, 18041 Saratoga­Los Gatos Road, Monte Sereno.

Staff writer Lisa Toth contributed to this report.