According to Tinfow, if the town of Los Gatos decides to pull away from SVACA, as discussed following news that Cupertino will officially be out in June 2004, Saratoga's annual contribution for shelter and basic operations would be $287,559, more than $40,000 more than if Los Gatos were to remain in the organization.

Amidst the decision-making process, SVACA is in the process of investigating locations for long-term shelter services. Possible locations included the Humane Society, the city of Palo Alto and the city of San Jose, all of which denied the request due to disinterest or limited housing capacities. The organization also considered purchasing the Humane Society's property in Santa Clara after it relocates to a newer facility in Milpitas, but determined that the property was not in adequate condition.

However, staff did find a possible building, which is approximately 17,200 square feet, on Thomas Road. Inspection revealed that the building would need to undergo renovation to fit SVACA's needs.

Finance directors from each participating city conducted a process for gathering financing options and suggested that SVACA enter into negotiations with the Municipal Finance Corporation to fund the estimated $6-million project. In this case, Saratoga's contribution, assuming that Los Gatos would remain, would be $66,802 in annual payments over a 15-year period. However, that number is projected to increase an additional $14,000 should Los Gatos bail out.

At the Oct. 1 city council meeting, Mayor Nick Streit suggested seeking other alternatives.

"SVACA would not be viable as a four-city JPA [Joint Powers Authority]," he said. "We have to be prepared should Los Gatos bail. It doesn't make sense to stay from an economic standpoint."

Vice Mayor Ann Waltonsmith and Councilman Norman Kline agreed with Streit.

"We're trying to make the best of a bad situation, but we have to start looking at other options," Waltonsmith said. "If we don't do something now, the city will be holding the bag with no place to go."

Kline suggested that staff research the costs of contracting with other cities, as Sunnyvale is currently doing with Palo Alto.

However, Councilman Stan Bogosian, who serves on SVACA's board, said that this may be a window of opportunity for both Los Gatos and Saratoga to stay and encouraged staff to discuss options with members in Los Gatos before making any decision.

"Los Gatos is watching us and we're watching them," he said. "If one side blinks, then the other will follow."

The issue will be discussed further at the next SVACA board meeting; the meetings are held on the last Monday of each month.