Animal lovers gathered in Palo Alto on Thursday afternoon to celebrate a pet project that has been years in the making: the official transition of the city's animal shelter to Pets In Need, a nonprofit at the forefront of the "no-kill" movement.

The nonprofit threw a "shelter warming" party to welcome its supporters, donors, volunteers and city leaders to the East Bayshore Road facility, which serves Palo Alto, Los Altos and Los Altos Hills. In addition to Mayor Eric Filseth, Pets In Need Executive Director Al Mollica and various citizen volunteers, the list of dignitaries included Milo, a rescue dog who was diagnosed with cancer and was given a few months to live.

That, according to Pets In Need, was four years ago. Since then, things have turned around for the mutt, who was abused as a puppy and who has a skin condition. Most recently, he is been enjoying "fospice" care with the family of Los Altos resident Sheela Pai, according to Pets In Need.

"Milo's sure not giving up," Pai, who attended the Thursday celebration, said in a statement. "Another shelter may have put him down, but Pets In Need saved him. He's 8 years old now and starting to get a little silver under his chin. He wasn't supposed to live long enough to get silver hairs."

Mollica, whose organization runs a no-kill shelter in Redwood City, said he is excited to bring the nonprofit to Palo Alto and looks forward to "providing services and programs that make the world a better place -- for animals and people."

"Thanks to the generosity of individual donors, corporations and foundations that support the life-saving mission of Pets In Need, we are moving closer to our vision of a world in which every healthy and adoptable animal finds a forever home," Mollica said in a statement. "This is only the beginning of what we hope will be a longstanding relationship with the Palo Alto, Los Altos and Los Altos Hills communities."

The agreement between Pets In Need and the city was the product of nearly two years of negotiations. Palo Alto began looking for a partner after Mountain View pulled out of its long-standing agreement with the city in 2012, leaving behind a $400,000 budget hole. In addition, a critical audit found that the shelter is functionally obsolete and does not meet modern standards of care.

Now, the city is hoping to change that. Last week, the City Council approved funding to buy a modular building that will serve as an office and a classroom. It also approved a $397,725 contract to redesign the shelter, which will soon have a renovated and expanded medical suite. The shelter also expects to add 16 kennels next year.

The partnership is projected to save the city $400,000 in annual expenditures.

Filseth said the agreement "ensures that the residents of Palo Alto will continue to have access to local animal shelter services right here in our community.

"Pets In Need has a proven track record of operating as a cost-effective and efficient animal shelter that is dedicated to providing humane, life-saving care, and we are pleased to welcome them to Palo Alto," Filseth said in a statement.

Pets In Need offers a vaccination clinic, animal licensing services, lost-and-found pet assistance and opportunities for volunteering and fostering animals. In the coming months, it plans to offer a spay-and-neuter clinic (a service that was suspended during the transition period), education programs, shadow opportunities for teenagers, school visits and birthday parties.

The shelter accepts any animal brought into the Palo Alto shelter by animal control officers or residents of Palo Alto, Los Alto and Los Altos Hills. It is currently open for adoptions Monday through Friday from noon to 5 p.m. and Saturday from 10 a.m. to 5 p.m.

Mollica tells local pet owners what they can expect from the organization on the Jan. 11 episode of "Behind the Headlines," now available on YouTube and our podcast page.