SF City Attorney Dennis Herrera Tapped to Take Over Scandal-Laden Public Utilities Commission That He Investigated

Over the past year, San Francisco City Attorney Dennis Herrera has rooted out wrongdoing in an expansive, still unfolding city corruption scandal.

Now, Herrera has been tapped to lead one of the agencies at the center of that scandal — the San Francisco Public Utilities Commission — a move announced Monday by Mayor London Breed.

As head of the city's water and power agency, Herrera would be tasked with reducing San Francisco's dependency on PG&E, California's largest utility, which has itself drawn heavy scrutiny in recent years.

The move would also leave an empty seat at the helm of the City Attorney's Office, leading to a potential power shuffle in city government. Those rumored to be vying for the seat include two sitting supervisors, the head of the local Democratic Party and a state assemblymember.

While some of those rumored to be potential candidates denied a run outright, former city supervisors David Campos and Jane Kim, and current Assemblymember David Chiu, D-San Francisco, both responded to inquiries with statements that left the door open.

If recommended by the SFPUC, Herrera would assume the general manager position previously held by Harlan Kelly, who stepped down in November after being charged by the U.S. attorney's office in the city's sprawling corruption scandal. Attorneys alleged Kelly accepted dinners and a lavish trip to China paid for by a city permitting agent — who has since pleaded guilty — in exchange for favorable treatment securing contracts.

As head of the agency, Herrera told KQED he'd be ready to clean house.

"There's obviously been a void of leadership at the Public Utilities Commission," he said. "And the mayor and I, in the course of our discussions about the executive leadership of that agency, each came to the conclusion that putting the city's top watchdog in that position would do a great deal to help restore the legacy and the reputation of that agency and at the same time demonstrate our city's commitment to bringing affordable public power to San Francisco."

In a statement, Breed said she's "proud" to nominate Herrera for the role.

"Dennis has been a great champion in San Francisco across a wide range of issues," she said.

Herrera was initially elected as city attorney in 2001, the first Latino to ever hold that office, and has been subsequently reelected five times. His office played a key role in the U.S. Supreme Court's landmark gay marriage equality case and staunchly defended San Francisco's status as a sanctuary city against relentless attacks by the Trump administration.

But it's Herrera's pivotal work investigating City Hall corruption that has some officials concerned about the prospect of him switching roles now.

Supervisor Matt Haney, who represents parts of the South of Market and Tenderloin neighborhoods, said he's worried Herrera is leaving the City Attorney's Office as the corruption investigation into Kelly and other city department heads continues.

Importantly, Haney noted, Herrera's successor would be appointed by Breed, who had strong political alliances with at least three officials deeply embroiled in the scandal, including Kelly, his wife Naomi Kelly — the former city administrator — and former Public Works Director Mohammed Nuru.

"You're taking somebody who is leading a corruption investigation, moving them, and then having the executive branch, the mayor, which is the body that's under investigation, appointing the replacement," Haney said. "I think that should be of concern to the residents of San Francisco who really want to make sure that we have effective, ethical government with integrity."

Haney added, "I respect Dennis Herrera and think he's a strong leader." But he called the role change "highly unusual."

Supervisors Catherine Stefani and Rafael Mandelman, who represent the Marina and Pacific Heights neighborhoods and the Castro, Noe Valley, and Mission neighborhoods, respectively, are also among the growing group rumored to be eyeing the city attorney job. Neither responded to a request for comment.

David Campos, now the chair of the San Francisco Democratic Party, told KQED, "I haven't decided but I'm seriously considering it."

As for Jane Kim, she responded by text, "Last I checked, we still have a city attorney!" When asked if she would run when he leaves, she said, "Let's chat then."

Meanwhile, state Sen. Scott Wiener, D-San Francisco, who once worked in the City Attorney's Office under Herrera, is also rumored to be considering the seat, although he told KQED he was not interested.

Assemblymember Chiu, meanwhile called Herrera a "model of public service" and an inspired choice to lead the SFPUC.

Asked about his interest in replacing Herrera, Chiu said, "I haven't had time to give today's news the consideration it deserves."

He added, "Throughout my career, I've always considered where I can best serve the city I love, and will continue to do that."

As for the ongoing corruption probe, at least one figure who was prominently involved in it isn't too worried about any future city attorney throwing a wrench in the works. Dave Anderson, the former U.S. attorney who led the federal criminal probe into the scandal (as opposed to Herrera's office, which pursued a civil investigation), said he expected the investigation to continue unimpeded.

"I would expect continuity in the public corruption investigation because there is continuity in the team that's actually driving the investigation forward day to day," he said, noting that other leading attorneys in Herrera's office who will remain in place even if he steps down.

When asked for his response, Herrera sought to calm any fears.

Taking a role at the SFPUC "should actually alleviate people's concerns, that you have the city's top watchdog also going over to head the PUC," he said. "If there's anybody that's going to send a message that unethical or illegal conduct is not going to be tolerated, and is going to show that they're willing to cooperate with investigations and further them, it's me, since I started this public corruption investigation myself."

KQED's Alex Emslie contributed to this story.