SF utility boss backs embattled ‘green’ deputy in conflict case

San Francisco Public Utilities Commission General Manager Harlan Kelly is sticking by his deputy in conflict of interest probe. Photo special to the Chronicle/ Auintard Henderson

In a move that has left some at City Hall scratching their heads or downright furious, San Francisco Public Utilities Commission boss Harlan Kelly is standing by his embattled deputy, Juliet Ellis, saying her “critical” expertise trumps her alleged conflict of interest in the awarding of a city contract.

Kelly’s announcement comes at a time, according to multiple sources, when Ellis is still the subject of active inquiries by the San Francisco District Attorney, the city’s Ethics Commission and the state Fair Political Practices Commission.

Initially, Kelly said he intended to await the outcome of any pending investigations before deciding Ellis’ fate. But in a memo to his staff, Kelly — reacting to news reports that his own in-house investigation was continuing — announced that he had already “taken the appropriate personnel action weighing both the technical violations and mitigating circumstances.’’

Juliet Ellis, the San Francisco Public Utilities Commission’s deputy for external affairs. Photo courtesy the SFPUC

And he said Ellis would keep her $195,000-a-year job as deputy for external affairs.

At issue is Ellis’ role in the awarding of a$200,000, no-bid contract to Green for All, an East Bay nonprofit on which she served as a paid board member.

Green for All was founded by Van Jones to promote job training in energy-related work for disadvantaged minorities.

At the time Ellis helped steer the contract to Green for All last year, she also earned between $10,000 and $100,000 as the non-profit’s board chair, according to economic disclosure statements that don’t require more specific figures.

But Kelly said that although an internal PUC probe “confirmed that there were violations’’ of reporting requirements and “a possible violation’’ of state conflict laws, “the fact-finding also uncovered mitigating circumstances suggesting that there was no unethical intent behind any of the violations.’’

Kelly cited Ellis having filed a state economic disclosure form “where she transparently listed her monetary stipend from Green For All.’’

He also said she “has also voluntarily returned any monetary stipend to Green For All, and proactively contacted state and local agencies to seek guidance as to further actions necessary to resolve any issues.’’

Plus, the Green For All contract has since been rescinded, and the nonprofit repaid the initial $91,000 it was paid.

Though Kelly said he had taken the “appropriate” personnel action, he would not disclose the details because it was a confidential employee matter.

Even while Kelly was conducting his investigation, he jetted off to Washington, D.C., in April with Ellis and one of her staffers to attend a water infrastructure summit — something we’re told was planned before the conflict case surfaced.

PUC spokesman Tyrone Jue declined further comment, citing the sensitive nature of the personnel case.

However, City Hall insiders tell us they are unaware of any specific sanctions that were taken against Ellis — other than the general manager’s announcement that he intended to institute further ethics and fraud prevention training for all his managers.

As one City Hall official, dumbstruck by Kelly’s pre-emptive ruling in her case, put it: “This isn’t going away.’’

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