Santa Cruz County Civil Grand Jury SantaCruzTownClock the Reports

The City of Santa Cruz does not have an Incident Response Plan, and this absence indicates that the City will be challenged in responding to a cyber attack, especially a ransomware attack.

Santa Cruz participates in some information sharing organizations such as the California Municipal Information Services Association (MISAC), yet it has minimal collaboration within the county and the other cities, forfeiting opportunities to share best practices and understand threats.

After recently expanding its IT Department, the City of Watsonville has improved its IT functions although it does not yet allocate sufficient resources to cybersecurity.

Watsonville does not have a Cybersecurity Plan that defines security policies, procedures, and controls required to protect its networks and devices, a situation that increases the risks of vulnerabilities.

Watsonville does not have an Incident Response Plan that provides detailed information on how to respond to an attack, suggesting the City would not be able to respond rapidly and effectively to a cyber attack.

Watsonville participates in some regional information sharing forums, but it does not have the resources to expand its participation or tap into state-level information sharing, thus forfeiting valuable best practices and cyber threat information.

Although Scotts Valley’s managed service provider is very knowledgeable and capable of providing cybersecurity services, there is no single city official with cybersecurity oversight, potentially leading to a poor understanding of the threats and an inadequate response to a cyber attack.

Scotts Valley does not have a current Cybersecurity Plan that defines security policies, procedures, and controls required to protect its networks and devices, potentially increasing the risks of vulnerabilities.

Scotts Valley does not have a current Incident Response Plan, which could exacerbate the effects of a cyber incident such as increase the time a network is unavailable or raise the potential financial costs of a resolution.

Scotts Valley does not participate in any cybersecurity information sharing groups to enhance best practices, rather they depend on their contractor to stay informed, which makes the City last to know of critical cyber threats.

With one individual responsible for IT services, Capitola does not allocate sufficient resources to cybersecurity, a status that could lead to poor cyber knowledge and unnecessary vulnerabilities.

The City of Capitola does not have a robust cybersecurity training program, nor does it conduct phishing tests or routinely remind employees to adhere to cybersecurity measures during potential periods of increased threats. Cyber Threat Preparedness published May 18, 2023 Page 14 of 24 2022–2023 Consolidated Final Report 25

The City of Capitola does not have a Cybersecurity Plan to address cybersecurity measures city wide, suggesting the city is not adequately mitigating the potential impact of cyber incidents.

The City of Capitola does not have an Incident Response Plan, which could exacerbate the effects of a cyber incident such as increase the time a network is unavailable or raise the potential financial costs of a resolution.

Capitola does not participate in any cyber-focused information sharing groups, nor does it take advantage of state and federal resources designed to assist small cities with mitigating cyber attacks, thereby forfeiting opportunities to learn best practices and raise their cyber awareness.

The City does not have an individual whose primary responsibility is cybersecurity for the city networks, leaving cybersecurity oversight to the IT Director–along with a multitude of other IT responsibilities–and lowering the priority for cybersecurity measures.

The City of Santa Cruz does not have a Cybersecurity Policy, suggesting that preparations to mitigate a cyber attack are inadequate and not widely shared.

Secure long-term funding for cybersecurity in the core budget. A proactive approach that prioritizes network defense, situational awareness, and education is a critical element of cybersecurity and well worth the commitment. Cybersecurity should be a budget item on a business level, not solely an IT budget allocation.

Hire and retain cyber talent. Small and medium-sized cities need to identify innovative methods for hiring and retaining the appropriate expertise to ensure secure networks and a vigilant security program. If funding limits the ability to hire a sufficient number of competent IT professionals, cities may want to consider a part-time CISO position, shared resources, or hiring an outside contractor.

Set up strong relationships with the private sector. Santa Cruz is well positioned to leverage private sector partnerships in the region that may offer additional resources and superb cyber expertise with minimal investments.

Build an exhaustive Incident Response Policy. Every entity should maintain a current Incident Response Policy that delineates established relationships, detailed scenario planning, step-by-step instructions for incident responses, defined public relations measures, and plans for business continuity. Such a plan is critical to delineate the processes that will allow cities to continue serving the public in the event of an attack. The plan should define how systems will be restored without disrupting the business continuity, steps for a thorough investigation of the nature of the breach, and an immediate investment in addressing the vulnerabilities. Cyber Threat Preparedness published May 18, 2023 Page 10 of 24 2022–2023 Consolidated Final Report 21

Improve training and culture. A company culture that encourages security and provides a broad range of cybersecurity training is the best approach to mitigating cyber threats, in both government and private entities.[73] [74]

Rely on cybersecurity best practices. At a minimum, entities should ensure the use of reputable automation and cybersecurity tools across all networks. The cybersecurity foundation should encompass firewalls, antivirus software, and strong endpoint and network security products that allow visibility into the network.[18] With proper cybersecurity measures in place, our county and cities could take advantage of the cybersecurity grant opportunities available from federal agencies such as DHS/CISA and the Federal Emergency Management Agency (FEMA). In the event of limited resources to prepare and apply for grants, the County and cities would be well served by hiring a consultant to write grant proposals. In the long run–or possibly in the short run–such expenditures would pay for themselves and much more.[43] [73] [79] Findings—Santa Cruz County F1. Santa Cruz County does not have a Cybersecurity Plan, and the absence of a current plan that defines security policies, procedures, and controls required to protect its networks and devices increases the risk of vulnerabilities. F2. Santa Cruz County does not have a sufficiently detailed Incident Response Plan, indicating they would not be prepared to respond rapidly and effectively in the event of a cyber incident. F3. Santa Cruz County participates in multiple information sharing groups at regional and state levels, although it has only minimal interaction with the cities across Santa Cruz County, degrading their ability to fully understand regional vulnerabilities.

The Santa Cruz County Civil Grand Jury is delighted to report that the Santa Cruz County CORE (Collective of Results and Evidence Based Investments) program provides fair and equitable distribution of funds to the many deserving non-profit organizations throughout the County. This process has removed any specter of bias and allows all potential organizations an even playing field. Their approach is completely transparent, from the application process, all the way through to the funded awards. The equity-centered approach clearly sets Santa Cruz County apart from any other counties in the region. It provides very clear parameters of how the process works and how each organization can benefit. The Grand Jury applauds the County and City officials and community members for their continued dedication and looks forward to the further evolution of CORE. CORE published May 18, 2023 Page 5 of 9 6 Santa Cruz County Civil Grand Jury

In a perfect world, the Sheriff’s Office would have sufficient funding to raise Correctional Officers’ pay sufficient to hire all the officers they need, and build the new jail they want. But in that perfect world, there would also be sufficient resources to give all inmates the mental health care they need and to provide adequate continuing care after they are released, including supportive housing as appropriate. This report asks the question “In the real world, with the funding constraints in this County, what is the best solution to both the aging Main Jail and to the distressingly high recidivism rate?” The Santa Cruz County Grand Jury believes that funding for the Sheriff’s Office to hire and retain more Correctional Officers should be increased. Funding for the Public Defender’s Office and County Behavioral Health should also be increased so their anti recidivism efforts can reduce the current horrifying 60 percent recidivism rate.

There is no doubt that the small, charming coastal City of Santa Cruz and the surrounding county municipalities are going to have to change. We can no longer ignore the fact that our highways and city streets have become gridlocked; rents and housing prices are beyond the reach of most; and many businesses are unable to find and keep the employees that they need. School enrollment is dropping as families move away to Housing Our Workers published June 2, 2023 Page 17 of 38 74 Santa Cruz County Civil Grand Jury find more affordable places to live, and businesses are moving to other locations. Perhaps the state laws and high housing goals are unattainable, but living in an area that only the wealthiest can afford is untenable without access to the businesses and services that all communities expect. It is too early to tell if it is possible to build all of the housing that the state demands, but it is undeniable that more housing, especially more affordable housing, needs to be built for the essential workers in Santa Cruz County. If that affordable housing is built near jobs and along transportation corridors, it will also alleviate traffic gridlock.

The 2022-2023 Grand Jury reviewed responses to five of the 2019-2020 reports and found that, in general, commitments were kept. In some cases, the agencies are implementing recommendations but it’s not clear if the actions are in response to the Grand Jury or whether they were instigated by the agencies. The Grand Jury also reviewed Ready? Aim? Fire!, however we did not evaluate whether commitments were kept. Over the past three years there have been a major wildfire and three other fire-related investigations;[30] [31] therefore, it would be difficult to gauge whether or not the studied entities fulfilled any of the recommendations specifically from the 2019-2020 Grand Jury report. The Grand Jury continues to recommend that all organizations create and regularly update formal records of the actions they take to address Grand Jury recommendations, and to share those records with the public, in accordance with CA Penal Code Section 933(c).[32] Honoring 2019-2020 Commitments published June 7, 2023 Page 14 of 21 2022–2023 Consolidated Final Report 109 Findings and Recommendations General

The longstanding and serious staffing shortage at the Behavioral Health Division is a contributing factor to all the issues discussed in this report, such as lack of step-down capability, services for marginalized groups including homeless persons, those involved with the criminal justice system and racial minorities. Until the staffing level is significantly improved, expecting improved service in any of these areas is unreasonable. The Grand Jury typically recommends an increase in funding when an agency has more responsibilities than budget, even while understanding that if there were funding available to increase the budget, this would already have been done. In this case, however, not only are County residents not getting adequate mental health services, the cost to the County is also higher because patients sometimes need to repeat treatment.

By enforcing violations of building and environmental codes, the CCD bears an important role in the health and safety of our county. This investigation found that the CCD employees work hard to carry out their mission in a professional manner. Unfortunately, the division suffers from chronic understaffing, inadequate management, and a lack of basic organizational practices and procedures. This report highlights the areas where it is especially lacking—documentation, procedures and policies, employee training and education, and quality assurance. Because the division is resolving violations of planning and building codes, they work within the larger culture of the Planning Department that is noted for its slowness, inaccessibility to the public, and inconsistent implementation, which makes the CCD’s work even more challenging. As a result, the CCD has a huge backlog of unresolved violations, and public confidence in both the CCD and the Planning Department is low. This Grand Jury recommends that the CCD division quickly increase staffing and improve processes to enable it to resolve the backlog of cases that represent potential community safety and environmental hazards, lost revenue, and county liability. In addition, the CCD needs to urgently overhaul its organizational procedures and practices to improve consistency and to increase transparency and accountability. Moreover, the Grand Jury recommends that the Planning Department increase its accessibility to the public and document all interactions with the public. Code Compliance Division – Out of Compliance published June 23, 2023 Page 9 of 18 174 Santa Cruz County Civil Grand Jury

The County of Santa Cruz California Proposed 2022-23 Budget. March 29, 2022. “Proposed Budget in Brief.” Accessed April 24, 2023. https://www.co.santa-cruz.ca.us/portals/27/county/budget/pdf/Proposed%20Budg et%20in%20Brief_05030745.pdf

County and City of Santa Cruz. February 4, 2022. “Request for Proposal.” Accessed April 24, 2023. https://www.co.santa-cruz.ca.us/Portals/0/County/GSD/Purchasing/Solicitations/ HSD1-2021%20CORE%20Investments%20RFP.pdf

Santa Cruz County Data Share. Accessed April 24, 2023. https://www.corescc.org/about-us

Santa Cruz County Data Share. Accessed April 24, 2023. https://static1.squarespace.com/static/619279f72531c218d085aee6/t/63f7ef8c3b 2d295e3044c389/1677193225008/CORE+Conditions+Bilingual Site Visits Human Services Department, County of Santa Cruz County of Santa Cruz Health Services Agency Human Services Department Archives CORE published May 18, 2023 Page 9 of 9 10 Santa Cruz County Civil Grand Jury [This page intentionally left blank.] 2022–2023 Consolidated Final Report 11 Cyber Threat Preparedness Phishing and Passwords and Ransomware, Oh My! Summary Cyber attacks targeting computer information systems, personal digital devices, or smartphones increase every year with the largest number of attacks typically hitting California. Cyber criminals target all types of businesses and all sizes of government agencies including small cities that often have limited resources to invest in cybersecurity. As Santa Cruz County continues its plans to expand broadband access and to provide efficient digital services to its residents, adherence to cybersecurity measures and best practices is critical. Santa Cruz County and the cities of Santa Cruz, Watsonville, Scotts Valley, and Capitola understand the cyber threat environment and the potential consequences of a cyber attack. These government entities have implemented varying levels of security measures to mitigate such threats. The Jury’s overall recommendations encompass the following: ● The County and the four cities should write and implement Cybersecurity Plans and Incident Response Plans that detail frameworks for mitigating cyber attacks and details for responding to a cyber incident. ● Each of our cities should designate a city official as the lead for cybersecurity. Even when an information technology consulting firm supports the city, one government official should be responsible for cybersecurity. ● The County and cities would benefit from cyber threat information sharing across the county, enabling greater knowledge of potential threats and shared ideas for threat mitigation. Cyber Threat Preparedness published May 18, 2023 Page 1 of 24 12 Santa Cruz County Civil Grand Jury Table of Contents Background 3 Scope and Methodology 5 Investigation 6 Cyber Best Practices across Santa Cruz County 7 Steps in the Right Direction 9 Conclusion 9 Findings—Santa Cruz County 11

C1. Santa Cruz County has built an excellent foundation for preparing for the possibility of cyber incidents. Its Information Services Department (ISD) has a very knowledgeable Director, is very well informed, and has taken steps to prioritize cybersecurity. The integration of ISD in all IT purchasing processes provides a sound check on the security of third-party software, and its cyber training appears well integrated for all county staff. C2. The City of Santa Cruz has instituted a cyber awareness program that is strongly enforced. Its IT Advisory Team and standard security questions provide a security perspective for all third-party software purchases, thus minimizing supply chain threats. Cyber Threat Preparedness published May 18, 2023 Page 15 of 24 26 Santa Cruz County Civil Grand Jury C3. Watsonville has instituted commercial cyber security training for all employees and has recently begun to raise cyber risk awareness among city executives, highlighting that cyber security is a business problem for all departments and that promoting cyber education among government leaders is a critical element of effective cyber hygiene.

C1. The Probation Office and the Public Defender’s Office are doing an excellent job of diverting low level offenders away from the criminal justice system. C2. The Probation Office is providing their Juvenile Hall youngsters a more physically and emotionally healthy environment that most of them ever had at home.

C1. By acquiring and using City owned property, and seeking State grants and other outside funding, Santa Cruz is developing projects that are more affordable for tenants. With projects already underway and in the pipeline, Santa Cruz is on track to meet its 5th Cycle Housing goals, though the 6th cycle will present a larger challenge. C2. The City of Watsonville has continued to build housing during the years when other municipalities were not. They have collaborated well with non-profits and Santa Cruz County to build housing at all affordability levels. C3. All county municipalities have made a concerted effort to identify housing sites in the urban corridors in order to preserve the local coastal zones, mountains and green spaces in the rest of the County. C4. County school districts, Peace United Church, Cabrillo College and UCSC are working collaboratively to design and build affordable housing for teachers, staff and students. Housing Our Workers published June 2, 2023 Page 21 of 38 78 Santa Cruz County Civil Grand Jury

C1. The Grand Jury commends the Behavioral Health Division for development of a Psychiatric Healthcare Facility for children and youths which will provide much needed mental health services for this population. C2. The Grand Jury commends the Behavioral Health Division’s efforts to develop a wide range of crisis care services that are not routinely offered in similar sized counties, including Mobile Emergency Response Teams for adults and youth, a Crisis Services Program, and a Psychiatric Health Facility. Diagnosing the Crisis in Behavioral Health published June 12, 2023 Page 17 of 27 134 Santa Cruz County Civil Grand Jury

C1. The Sheriff’s Office Annual Report is easy to read, well organized, and provides useful information to the public. This publication offers thoughtful views of equipment, events, and Sheriff’s Office personnel. Surveillance State in Santa Cruz County published June 20, 2023 Page 13 of 20 158 Santa Cruz County Civil Grand Jury