Cupertino pulled out of the program because of the agency's uncertain financial projection and because recent amendments to the SVACA contract take away member cities' control over budget changes.

Cupertino council member Richard Lowenthal, who represents the city on the SVACA board, said, "Local control was the major reason Cupertino joined SVACA in the first place. The amendment is to remove local control, which is a bad idea for Cupertino."

Seven cities—Sunnyvale, Cupertino, Santa Clara, Campbell, Los Gatos, Saratoga and Monte Sereno—established SVACA when the Humane Society of Santa Clara decided to stop providing its animal control services after June 30, 2001. The decision resulted from state Sen. Tom Hayden's Bill 1785, which increases the mandatory holding time for animals in shelters. In light of the bill, the Humane Society of Silicon Valley will become a "no-kill" shelter with a focus on adoptions, spray and neuter education, community outreach and cruelty investigation.

Right now, SVACA provides field and licensing services and contracts with the Humane Society for shelter services and plans on building its own shelter within the next two years.

For the past two years, SVACA has provided excellent services with zero complaints from Cupertino residents but Cupertino's concerns with the animal control authority's financial viability has been brewing.

As early as September 2002, Cupertino and two other member

cities, Sunnyvale and Los Gatos, conducted an independent financial analysis of the agency's projected shelter costs of operation in comparison with other animal shelters in the area.

"While the average cost of the Humane Society, the Fremont shelter and the Palo Alto shelter is $135.09 per animal, the projected cost of SVACA is $262.19 per animal. That is 94 percent above the market cost," said Carol Atwood, Cupertino's director of administrative services. The higher cost projected for SVACA was due to the extended shelter hours and services to be offered at the new facility.

In December 2002, city management from all seven-member cities met with SVACA and asked for alternatives given the recession and these cities' budget constraints. The SVACA board promised to present other options no later than Sept. 30, 2003.

Sunnyvale left this joint powers agency in June 2003 and has since contracted with Palo Alto for animal licensing and shelter services. Sunnyvale's departure caused an increase in the existing members' costs.

"If Cupertino remains in SVACA, it will commit almost $1 million for the shelter, compared with the projected contribution of $662,000," Atwood said.

Two amendments to the original joint powers agency agreement furthermore made it difficult for member cities to control the budget. The new agreement has dropped the section that requires additional budget adjustments voted by the SVACA board to go back to the six member cities for approval. A new section states that the SVACA board, by a two-thirds vote, can bind other cities to any budget amendment.

"In Cupertino, even the city manager doesn't have the authority to increase our budget. Only the city council has the right to approve any budget increase," Atwood said. "In the case of the shelter project alone, this would represent an increase in Cupertino's capital budget by approximately $300,000."

Other city council members concurred, citing fiscal responsibility their top priority.

Other member cities of SVACA regret seeing Cupertino withdraw from the organization but believe that Cupertino's decision makes it easier for the agency to predict its budget because the city has been indecisive about whether it wanted to stay or leave.

"Cupertino's departure helps the remaining jurisdictions because we have more certainty and we can be more fiscally responsible for our own constituents," said Monte Sereno City Councilwoman Barbara Nesbet, who sits on the SVACA board. "It is unfortunate to lose Cupertino and Sunnyvale but the JPA will go on."

City staff assures pet owners they will not be impacted because of Cupertino's withdrawal. The city is pursuing alternative plans offered by Sunnyvale, Palo Alto and San Jose and will have a plan before its contract with the animal control authority expires on July 1, 2004.