COMPREHENSIVE REVIEW AND UPDATE OF LAFCO POLICIES

The purpose of the comprehensive review and update of the current LAFCO policies is to: 

• Better enable LAFCO to meet its legislative mandate,
• Make the policies consistent with recent changes to the CKH Act,
• Better document current/historic practices, and
• Provide better guidance to affected agencies, the public, and potential applicants; and increase clarity and transparency of LAFCO’s policies and expectations.

The following policies are part of the Phase 1 Comprehensive Review and Update of LAFCO Policies*:  

• Sphere of Influence (SOI) Policies (Chapter 2)
• Urban Service Area (USA) Policies (Chapter 3)
• Annexation, Detachment, and Reorganization Policies (Chapter 4)
• Out-of-Agency Service by Contract (OASC) Policies (Chapter 5)
• Island Annexation Policies (Chapter 6)
• Agricultural Land Preservation and Mitigation Policies (Chapter 7)
• Urban Growth Boundaries Policies (Chapter 8)

* Chapter 1 is the Countywide Urban Development Policies reaffirmed by LAFCO Resolution No. 2022-07 on April 6, 2022.

Phase 2 of this project will focus on the review and update of LAFCO’s remaining policies, including service review policies, other policies such as incorporation policies used less frequently, and policies and procedures that are related to administrative functions. Phase 2 is anticipated to begin in January 2025.

The proposed policy revisions include the following types of changes:

Overall Organization and Structure

Each of the current policies has been restructured as individual numbered chapters with corresponding numbered policies and subtitles, to be part of a single comprehensive document. 

Each chapter is reformatted to begin with an introduction section that includes historical context and legislative background; followed by any key definition(s) where appropriate; followed by procedural policies (if any); and then policies on evaluation criteria, distinguishing policies for city proposals from policies for special district proposals, where appropriate.

References to State law

Incorrect and/or expired references to State law in the current policies are removed and replaced with the correct/current references. 

New references to relevant code sections of State law have been added, where appropriate.

Text changes

New language has been added to the current policies to reflect recent changes in State law.

New language has been added to document current and longstanding Santa Clara LAFCO practices and procedures, including a more detailed explanation of new procedures and criteria for evaluating proposals. 

New language has been added to provide key background information and historical context, and to explain goals/intent/purpose of policies.

New Policies

New policy has been added to the USA policies that allows a city to prepare an additional alternate vacant lands analysis for LAFCO’s consideration, when a city has special conditions that do not align with LAFCO’s vacant land methodology.

New policies have been added to specifically address agricultural worker housing needs, which can be found in the proposed revisions to the USA Policies (Chapter 3), OASC Policies (Chapter 5), and Agricultural Land Preservation and Mitigation Policies (Chapter 7).

The current Urban Service Area Policies have been rewritten, reformatted, and reorganized as the proposed “Chapter 3: Urban Service Area Policies.”  

The first section (3.1) of the proposed policies includes a brief history of adoption of the first Urban Service Areas (USAs) in Santa Clara County and outlines the purpose and role of the USAs in Santa Clara County. Section 3.2 includes the definition of USAs – a boundary unique to Santa Clara County.  

Section 3.2 includes the definition of USAs – a boundary unique to Santa Clara County. For ease of use, the remaining policies are reorganized into two distinct sections: (1) procedural policies, and (2) policies and evaluation criteria. 

Section 3.3 includes proposed procedural policies related to the initiation, frequency, timing, etc. of USA applications. 

Section 3.4 includes proposed USA amendment policies and evaluation criteria, which have been updated to be consistent with recent changes in State law, including references to relevant code sections in State law, and to document and explain current Santa Clara LAFCO practice. Section 3.4 also includes new language that allows a city to prepare an additional alternate vacant lands analysis for LAFCO’s consideration, when a city has special conditions that do not align with LAFCO’s vacant land methodology.

A major substantive change proposed in this section is the inclusion of a new policy addressing agricultural worker housing needs. This proposed policy states that LAFCO will give special consideration to USA amendment proposals that are for agricultural worker housing and will consider certain factors. Please see Policy 3.4.15 for specifics.

The proposed USA Policies also include two exhibits. Exhibit A is “Santa Clara LAFCO’s Methodology for Preparing a Vacant Lands Inventory (VLI),” a new document explaining the purpose of the VLI and LAFCO’s methodology for preparing a VLI. This document reflects both historic and current Santa Clara LAFCO practice, used since 2008 for multiple USA amendment applications. Exhibit B is “Santa Clara LAFCO’s Guide for Preparing a Plan for Services,” an update of the current guidelines to provide greater clarity, transparency, and more specific guidance to applicants.

The current Policies for “Out of Agency Contract for Services” Proposals have been edited, reformatted, and reorganized as “Chapter 5: Out-of-Agency Service by Contract Policies.” 

The first section (5.1) of the proposed policies is an introduction with an explanation of the term “out-of-agency service by contract” (OASC) and includes a brief history of LAFCO’s evolving role and legislative authority in regulating OASCs. 

The current policies intertwine procedures and evaluation criteria, resulting in a lack of clarity for the reader. For ease of use, the proposed policies separate procedural policies from policies and evaluation criteria. 

Section 5.2 includes procedural policies for the approval, initiation, determination of exemptions including establishing a process for appeal of staff determinations to the Commission, and administrative approval of OASC proposals. 

Section 5.3 includes OASC proposal policies and evaluation criteria, which have been updated to be consistent with recent changes in State law, including references to relevant code sections in State law, and to document and explain current Santa Clara LAFCO practice.

A major substantive change proposed to the current policies is the inclusion of a new policy addressing agricultural worker housing needs. This proposed policy states that LAFCO will give special consideration to OASC proposals that are for agricultural worker housing and will consider certain factors. Please see Policy #5.3.3b for specifics.

The current Agricultural Mitigation Policies have been edited, reformatted and reorganized as the proposed “Chapter 7: Agricultural Land Preservation and Mitigation Policies.” 

The first section (7.1) is a new introduction with information on LAFCO’s legislative mandate as it pertains to discouraging the premature conversion of agricultural lands, and Santa Clara LAFCO’s “hierarchy of agricultural land preservation strategies of 1) avoidance, 2) minimizing, and then 3) mitigating impacts to agricultural lands as a last resort where conversions or other impacts cannot be avoided.”

Sections 7.2 through 7.7 are current policies that are simply renumbered and reformatted to fit into the new structure. Two new policies (#7.2.1 and #7.2.2) are added to the current policies. Policy #7.2.1 is added to explain that Santa Clara LAFCO promotes avoidance and/or minimization of potential impacts to agricultural lands in preference to mitigation. This policy reflects Santa Clara LAFCO’s historic and current practice and is consistent with state law and LAFCO’s mission to preserve agricultural lands and open space. Policy #7.2.2 is added for greater clarity and transparency to inform that Santa Clara LAFCO will give special consideration to proposals that are for agricultural worker housing, as referenced in LAFCO’s USA Policies and OASC Policies.