Opinion No. (1998)

DANIEL E. LUNGREN Attorney General CLAYTON P. ROCHE Deputy Attorney General THE HONORABLE LOUISE H. RENNE, CITY ATTORNEY, CITY AND COUNTY OF SAN FRANCISCO, has requested an opinion on the following question: May a city, with the approval of its airport commission and advice of its airport director, enter into a contract with a for-profit corporation formed by the city and in which the city is the sole shareholder, where a city airport commissioner and the airport director serve on the board of directors of the corporation? CONCLUSION A city, with the approval of its airport commission and advice of its airport director, may enter into a contract with a for-profit corporation formed by the city and in which the city is the sole shareholder, even though a city airport commissioner and the airport director serve on the board of directors of the corporation. ANALYSIS In July of 1997 the San Francisco Board of Supervisors approved the formation of a private, for-profit corporation to offer consulting services to airports throughout the world that are engaged in developing new or expanded airport facilities. The city is the sole shareholder of the corporation. The board of directors of…