City of l\~a!co!m D. Brodie Richmond Mayor 6911 No.3 Road, Rich mond, BC V6Y 2C1 Telephone: 604-276-41 23 Fax No: 604-276-4332 www.richmond.ca February 26, 2013

The Honourable Premier of Office of the Premier PO BOX 9041 STN PROV GOVT Victoria BC V8W 9El

Dear Premier Clark:

Re: Provincial Sales Tax Legislation Impacts to Alexandra District Energy Utility Competitiveness

This is to advise that Richmond City Council at its meeting held on Monday, February 25, 2013 considered the above matter and adopted the following resolution:

(1) That a letter be sent to the Premier of the province of British Columbia; the leader of the Official Opposition; the Minister of Fina11ce; with copies to the Minister of Enviro11ment, three Richmond MLA 's, Expert Panel on BC's Business Tax Competitiveness, UBCM and municipalities operating district energy systems, conveying that: (a) the City of Richmond requests that the Provincial Sales Tax (PST) be implemented in a way that will ensure that all energy providers are treated equitably so that they may compete on the basis of their respective system efficiencies, technical merit and carbon emissions; (b) this goal be achieved by including provisions in the future PST that will: (i) provide for the exemption or the reimbursement of PST charges on energy (gas, electricity) purchased for the purpose of generating energy for resale; (ii) make available the former exemption on Production Machinery and Equipment to equipment purchased by district energy systems; (iii) maintain, as per the former PST regulation, the PST exemption on the sale ofheat to residential district energy customers; and

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(2) Tltat staff continue to work with other district energy providers and provincial government officials on measures tltat will mitigate negative PST impacts to tlte competitivmess ofdistrict energy systems.

If you have any questions on this matter, please feel free to contact Robert Gonzalez, General Manager, Engineering & Public Works, at 604-276-4150.

Yours truly,

Mayor pc: The Honourable Teny Lake, Minister of Environment , MLA, Richmond Centre , MLA, Richmond - East , MLA, Richmond - Steveston Sarah Morgan-Silvester, Chair, Expert Panel on BC's Business Tax Competitiveness City Council North Vancouver City Council Surrey City Council . Prince George City Council Revelstoke City Council George Duncan, Chief Administrative Officer