San Benito Local Agency Formation Commission staff presented a draft set of municipal service review (MSR) policies and told commissioners the draft will be returned for adoption at the commission's October meeting.

The draft restates state‑required MSR determinations and proposes local additions intended to guide how MSRs evaluate service delivery in San Benito County, including a new section covering agricultural and open‑space conservation, governance structure alternatives, and consistency with local land‑use planning.

Jennifer, a LAFCO staff member, told the commission the package covers “the purpose, the policy statement, and the frequency and scope” of MSRs and that some items are “state mandated determinations, so every MSR must have this content and determinations included.” She said the draft adds an explicit subsection (2.10.5) allowing LAFCO to include locally specific content such as: A) agricultural and open‑space conservation; B) governance structure and alternatives; and C) consistency with land‑use planning.

Under the proposed agricultural and open‑space provisions, MSRs would evaluate whether service delivery patterns and agency boundary decisions “support or conflict with the preservation of ag lands and open space resources,” and would assess whether service extensions are consistent with LAFCO policies on orderly growth and agricultural land conservation. The governance subsection would require MSRs to assess whether an agency’s current governance promotes accountable, cost‑effective and sustainable service delivery and permits identification of governance alternatives—consolidation, dissolution, subsidiary districts or joint arrangements—when warranted by efficiency or accountability concerns.

The draft also reaffirms several existing expectations: agencies must cooperate with information requests during an MSR; draft MSRs should be circulated for public review before consideration; the commission will hold a public hearing before adopting an MSR and any related sphere of influence update; and MSRs should identify service delivery challenges and make advisory recommendations on governance, boundary changes, or shared services (advisory only, not binding without a reorganization proceeding).

Jennifer emphasized the commission’s impartial role, saying, “The Commission's role is to provide objective and fact based analysis. MSRs are not intended to advocate for any 1 agency, but to promote the overall efficiency and sustainability of municipal services countywide.”

Commissioners who commented during the discussion characterized the draft as clear and concise. One commissioner said they wished the policy had been before the commission earlier in the year, to align understanding of roles and responsibilities before starting an MSR. No formal action was taken at the meeting; staff said they would return the draft for consideration and potential adoption at the October meeting.

Next steps: staff will incorporate any commissioner feedback and bring a revised draft back to the commission in October for consideration of adoption and incorporation into LAFCO guidelines and policies.