Members of the santa cruz local agency formation commission, known as lafco, voted yesterday to approve a smaller, revised plan to expand the u.c. santa cruz campus. The agency’s approval of the campus expansion was critical, because of the amount of water service and sewer extension required. The approval, by a vote of 5 to 2, was for a 240-acre expansion, rather than the 374 acres university officials had sought. The land still must be annexed and incorporated into the city of santa cruz, a process that could take 2-years.