Minutes of the Iron County Commission meeting convened at 9:00 a.m. April 14, 2008 in Commission Chambers at the Iron County Courthouse, Parowan, Utah.

Minutes of the Iron County Commission meeting held March 24, 2008 were approved as amended on a motion by Wayne Smith. Second was by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Scott Garrett reported that he has received a letter from Southern Utah University notifying Iron County that they are withdrawing their Notice Of Claim for flood damage to the University farm located west of Cedar City.

Kal Kahler presented a revised report on his findings on flooding issues in Parowan valley. A copy of the report will be forwarded to Steve Platt.

Alma Adams reported that he has met with Randy Johnson and Leo Lentch regarding movement in the preparation of a prairie dog HCP. Senator Bennett will visit Iron County in May to review the situation and to determine if a solution can be reached to the problem with prairie dog recovery through legislation. It has been suggested that Garfield and Wayne counties participate in the discussion and tour. The Commissioners from these two counties will be invited to participate. Mike Styler and Reed Harris from Utah State Department of Natural Resources will also be invited to participate.

Lois Bulloch reported that Valley View Medical Center has approached Southwest Public Health to take over operation of the free clinic in Cedar City. The Board of Directors of Southwest Public Health have voted to support the request provided conditions outlined by IHC can be met. More information is needed for the County to take a position.

Wayne Smith made a motion to open a public hearing to receive comments on a proposed agricultural protection area requested by Robert Holt, Robert Holt Farms Company, and Escalante Farms Company. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

David Yardley reported that the request for designation as an APA has been forwarded to the Agricultural Protection Board and to the Planning Commission for their recommendation. Both the Agricultural Protection Board and Planning Commission found that the proposed area qualifies as an APA. Notice has been posted and published in compliance with County and State Codes. No written comments have been received either in favor or in opposition to the creation of the APA.

Reed Erickson presented the Commission a map showing the proposed protection areas along with a map showing all of the land covered under an APA in the County.

After all public comments were reviewed, the Commission made the following findings:

4. The land currently has improvements consistent with current husbandry operations.

Wayne Smith made a motion to close the public hearing and approve the Agricultural Protection Area as applied for by Robert Holt, Robert Holt Farms Company, and Escalante Farms Company. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Sargent Ryan Bauer, Utah Highway Patrol, met with the Commission to request the County purchase three new radar units for use of troopers within Iron County. The older radar units now in use will be removed from vehicles and returned to Iron County Sheriff’s Department for use by County Deputies as has been the practice in the past. Total cost of the new radar units requested is $8,040. Alma Adams made a motion to approve the purchase pending review of the budget to make sure they were included. Second by Wayne Smith. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Mayor Dutch Deutschlander and Bryce Haderlie along with other members of the Brian Head Town Council met with the Commission to request approval of the interlocal agreement for participation in the Community Development Agency. Mayor Deutschlander commented on the necessity of investing in improvements before growth in any business can be expected. Bryce Haderlie reviewed again the request for participation and the need for the CDA. The interlocal agreement as drafted has been reviewed by Iron County Attorney’s Office and the requested language changes have been made.

After reviewing the documents and discussing changes recommended in previous meetings, Wayne Smith made a motion to approve the interlocal agreement due to the unique circumstances a resort community faces and the infusion of outside dollars into the growth of Brian Head. The agreement is for a ten year period and is capped at $1,163,000. The motion also recommended that a representative of the County be present at all CDA Board meetings and that the size of the CDA area not be modified. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Colette Eppley and Brian Cottam discussed the Planning position for help with Federal lands issues. The position would require office space and appropriate furniture and equipment, a computer, travel budget, training budget, vehicle and operating expenses. The position appears to be graded at a rate consistent with a planner or senior planner position which would place the salary in the mid to high $40,000 range to as high as the $60,000 range. They also recommended that the position be funded for an 18 month period to allow for adequate review of the position. No action was taken by the Commission at this time.

Colette also presented for approval new hires in the Justice Court, Geronimo Abraho, Brittany Sorenson, and LaCee Mitchell as part time Court Clerks. Colette also presented Brent Burr for approval as a Corrections Office. Mr. Burr will be required to attend POST training. Wayne Smith made a motion to approve the new hires as presented. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Colette presented for approval Malinda Sizemore as a volunteer vehicle driver in the Cedar City Senior Citizen Center. Wayne Smith made a motion to approve Malinda Sizemore as a volunteer as requested. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Colette presented for approval a position transfer of Howard Cox to light duty at the Landfill from the Engineering Department and Steve Hansen to the Engineering Department as a heavy equipment operator. The transfers are temporary to accommodate the light duty status of Mr. Cox. Wayne Smith made a motion to approve the transfer as requested. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Colette also presented status changes for Nick Ervine, Ray Trujillo, Abby Holmgren, and Derek Liston from on call to part time regular Paramedics. Wayne Smith made a motion to approve the status changes as requested. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Wayne Smith made a motion to convene in closed session to discuss personnel matters in accordance with Utah Code 52-4 et. seq. for the purpose of discussing the character, professional competence, or physical or mental health of an individual. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

After reconvening in open session the Commission reported that no action was required at this time.

The Commission traveled to the site of the new Parowan Senior Citizen Center for a groundbreaking ceremony . Speakers at the ceremony included Parowan Mayor, James Robinson; Architect Robert Mercer and Commissioner Alma Adams. Commissioner Adams then gave a prayer dedicating the area as the future Senior Center. Elected Officials, Five County representatives, City Officials and Council on Aging Board Members then participated in the groundbreaking ceremony. Refreshments were served to all attending the ceremony.

Robert Mercer presented results of the bid opening for the Senior Center in Parowan. Brian Nichols Construction submitted the low bid of $518,898.00. Mr. Mercer recommended approval of the bid and to approve the contract for construction. The project is to be completed within 140 days.

Commissioner Smith questioned the contract not including a liquidated damage clause. Mr. Mercer explained that the purpose of the bonding requirement is to guarantee the completion of the contract. If the project is not completed in a timely manner, the bond proceeds can be used to complete the project.

After review by the Attorney and the recommendation from the Architect, Wayne Smith made a motion to approve the contract with Brian Nichols Construction. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

Christene Keene met with the Commission to review exemption requests for Religious, Charitable and Educational organization for the 2008 year. Ms. Keene explained that in 2007 the Church of Christ in Cedar City missed the filing deadline. They were given a notice that there would be a one time only exception to the filing deadline. This year the Church of Christ was again delinquent in filing along with the Westview Christian and the First Baptist Churches. The Four Square Church has requested an exemption on some suites within their center on which they failed to submit the appropriate application.

Wayne Smith made a motion to approve all of the Religious, Charitable, and Educational exemption applications which were filed on time and deny exemption status to the Church of Christ for 2008 due to delinquent filing, to approve a one time filing extension for the Westview Christian and First Baptist Churches, and to deny the addition of additional area requested by the Four Square Church. Second by Alma Adams. Voting: Lois Bulloch, Aye; Wayne Smith, Aye; Alma Adams, Aye.

The following resolution was presented to the Commission by Bond Counsel, Eric Johnson, to complete the authorization of a loan from the Permanent Community Impact Board Fund to help finance the Senior Citizen Center. After reviewing the Resolution and a recommendation of the County Attorney’s office for adoption, Wayne Smith made a motion to approve Resolution 2008-2 as follows. Second by Alma Adams.

                                                        IRON COUNTY, UTAH
                                                   FINAL BOND RESOLUTION
                                                                 April 14, 2008

A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $300,000 SALES TAX REVENUE BONDS, SERIES 2008 (THE “SERIES 2008 BONDS”) TO FINANCE A PORTION OF A SENIOR CENTER AND RELATED IMPROVEMENTS; PRESCRIBING THE FORM, TERMS, AND CONDITIONS AND SECURITY THEREFOR; PLEDGING CERTAIN SALES TAX REVENUES; AND RELATED MATTERS.

WHEREAS, the Utah Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended, authorizes the issuance of nonvoted excise tax revenue bonds payable solely from the excise tax revenues of cities, towns or counties, levied and collected by that government entity or levied by the State of Utah and rebated pursuant to law; and

WHEREAS, the Board of Commissioners (the “Commission”) of Iron County, Utah (the “Issuer”), desires to construct a senior center and related improvements (the “Project”), the cost thereof to be paid, in part, through the issuance of its Sales Tax Revenue Bonds, Series 2008 (the “Series 2008 Bonds”); and

WHEREAS, on February 25, 2008, the Commission adopted a resolution providing notice of its intention to issue bonds, which at that time it designated as the Sale Tax Revenue Bonds, Series 2008, which are the same bonds the Issuer desires to issue and sell at this time as the Series 2008 Bonds for the same purposes; and

WHEREAS, based upon the information available to the Issuer, the excise taxes of the Issuer to be pledged will produce sufficient Revenues (as defined in this Bond Resolution) to pay the debt service on the Series 2008 Bonds; and

WHEREAS, the County Clerk notified the Commission that pursuant to the Utah Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended, the Notice of Public Hearing and Bonds to Be Issued calling a public hearing on March 27, 2008, at 1:30 p.m. at the Iron County offices in Iron County, Utah, to receive input from the public with respect to the issuance by the Issuer of its Sales Tax Revenue Bonds, Series 2008 in an amount not to exceed $350,000 (the “Series 2008 Bonds”), had been published in a newspaper of general circulation in the Issuer, said notice having been published two times, once during each week for two consecutive weeks, the first publication being not less than 14 days before March 27, 2008, and that the affidavits of publishing the Notice with a copy of the Notice as published were duly filed in the County Clerk’s office; and that a copy of the resolution authorizing the Notices has been on file in the County Clerk’s office during all regular office hours from February 25, 2008, for the examination of any interested parties; and

WHEREAS, the Commission held the public hearing on March 27, 2008, which was open to all members of the public desiring to give input with respect to the issuance by the Issuer of its Series 2008 Bonds and the Commission received all written and oral comments, if any, and after giving full consideration to all such comments and input from the public, if any, the Commission closed the public hearing; and

WHEREAS, the Series 2008 Bonds and all bonds issued on a parity therewith, including the Outstanding Bonds (as defined herein), will not at any one time exceed an amount for which the average annual installments of principal and interest will exceed 80% of the Issuer’s Revenues (as defined in this Bond Resolution) from the collection or rebate of such Revenues received by the Issuer during its fiscal year immediately preceding the fiscal year in which this Bond Resolution is adopted; and

WHEREAS, the State of Utah Permanent Community Impact Fund Board (the “Community Impact Board”) has offered to purchase the Series 2008 Bonds at par in the total principal amount of $300,000, and bearing interest at the rate of 3.5% per annum on the unpaid principal amount therein; and

WHEREAS, the Issuer desires to accept the offer of the Community Impact Board and to confirm the sale of the Series 2008 Bonds to the Community Impact Board; and

WHEREAS, the Series 2008 Bonds will be issued on a parity with the Issuer’s Outstanding Bonds (as defined herein) such that the Series 2008 Bonds and the Outstanding Bonds will enjoy an equal lien pledge on the Revenues (as defined herein):

NOW, THEREFORE, be it resolved by the Board of Commissioners of Iron County, Utah, as follows:

Section 1.1 Definitions. As used in this Bond Resolution, the following terms have the following meanings unless the context otherwise clearly indicates:

“Annual Debt Service” means the total requirement of principal, interest and premium payments, if any, to be paid by the Issuer during any Sinking Fund Year on the Issuer's outstanding Series 2008 Bonds or other forms of indebtedness issued on a parity with the Series 2008 Bonds.

“Average Annual Debt Service” means the sum total of the Annual Debt Service for all Sinking Fund Years divided by the total number of Sinking Fund Years during which any of the Series 2008 Bonds will remain outstanding.

“Bondholder,” “Registered Owner” or “Owner” means the registered owner of any bonds herein authorized.

“Business Day” means a day on which banking business is transacted, but not including any day on which banks are authorized to be closed within the boundaries of the Issuer.

“Community Impact Board” means the State of Utah Permanent Community Impact Fund Board, or any successor thereof.

“Default” and “Event of Default” mean with respect to any default or event of default under this Bond Resolution any occurrence or event specified in and defined by Section 5.1 of this Bond Resolution.

“Depository Bank” means a “Qualified Depository” as defined in the State Money Management Act of 1974, Title 51, Chapter 7, Utah Code Annotated, 1953, as amended, selected by the Issuer to receive deposits for the Revenue Fund as herein described, the deposits of which Bank will be insured by the Federal Deposit Insurance Corporation.

“Escrow Account” means an account to be held in escrow by the Escrow Agent pursuant to the Escrow Agreement, said account to be used for the purpose of depositing the proceeds of the sale of the Series 2008 Bonds and accounting for said proceeds pursuant to the terms of the Escrow Agreement.

“Escrow Agent” means the Utah State Treasurer, Salt Lake City, Utah, who will so act pursuant to the terms of the Escrow Agreement.

“Escrow Agreement” means the agreement entered into among the Issuer, the Utah State Treasurer and the Escrow Agent on the date of delivery of the Series 2008 Bonds.

“Exchange Bonds” means the fully registered Series 2008 Bonds issued in substantially the form set forth in Exhibit “C”, in exchange for the State Bonds representing the Series 2008 Bonds or in exchange for other Exchange Bonds, in the denomination of $1,000 or any integral multiple therein.

“Fully Registered Bond” means any single Fully Registered Bond in the denomination(s) equal to the aggregate principal amount of the applicable Series 2008 Bonds authorized herein.

“Outstanding Bonds” means the Issuer’s outstanding Sales Tax Revenue Bonds, Series 2001 issued in the original principal amount of $678,000.

“Paying Agent” means the person or persons authorized by the Issuer to pay the principal of and interest on the Series 2008 Bonds on behalf of the Issuer. The initial paying agent for the Series 2008 Bonds is the County Clerk of the Issuer.

“Project” means the construction of a senior center and related improvements.

“Registrar” means the person or persons authorized by the Issuer to maintain the registration books with respect to the Series 2008 Bonds on behalf of the Issuer. The initial Registrar for the Series 2008 Bonds is the County Clerk of the Issuer.

“Resolution” means collectively this Bond Resolution adopted by the Issuer on April 14, 2008, authorizing the sale and issuance of Series 2008 Bonds, as from time to time amended and supplemented, and the parameters resolution adopted by the Issuer on February 25, 2008.

“Revenues” means 100% of the Local Sales and Use Taxes received by the Issuer pursuant to Title 59, Chapter 12, Part 2, Utah Code Annotated 1953, as amended.

“Series 2008 Bonds” means Issuer’s Sales Tax Revenue Bonds, Series 2008 in the total principal amount of $300,000 bearing interest at 3.5% per annum on the unpaid principal amount.

“Sinking Fund Year” means the 12-month period beginning January 1 of each year and ending December 31 of the following year, except that the first Sinking Fund Year will begin on the delivery date of the Series 2008 Bonds and will end on the following December 31.

“State Bonds” means the fully registered Series 2008 Bonds issued in substantially the form set forth in Exhibit “B” in the denominations equal to the aggregate principal amount of the Series 2008 Bonds.

Section 2.1 Principal Amount, Designation, Series and Interest Rate. The Series 2008 Bonds are authorized for issuance for the purpose of providing funds to (i) finance, in part, the costs of the Project, and (ii) pay issuance costs. The Series 2008 Bonds are limited to $300,000 in aggregate principal amount, will be issued (i) if issued as a State Bond(s), in the form set forth in Exhibit “B” and (ii) if issued as Exchange Bonds, in the form set forth in Exhibit “C”, in fully registered form and will bear interest from January 1, 2009, at the rate of 3.5% on the unpaid balance of the principal sum. If issued as Exchange Bonds, the Series 2008 Bonds will be in the denomination of $1,000 or any integral multiple therein. The Series 2008 Bonds will be numbered from one consecutively upward in order of delivery by the Registrar. The Series 2008 Bonds are designated as, and are distinguished from the bonds of all other series by the title, “Iron County, Utah Sales Tax Revenue Bonds, Series 2008”.

The Series 2008 Bonds will be issued on a parity with the Issuer’s Outstanding Bonds such that the Series 2008 Bonds and the Outstanding Bonds shall have an equal lien pledge on the Revenues.

Section 2.2 Date and Maturities. The Series 2008 Bonds will be dated as of their date of delivery, will be in the denomination of $1,000 or any integral multiple therein and will be paid as provided in this Section 2.2. The Series 2008 Bonds will be initially issued as a single fully registered State Bond.

Except as provided in the next succeeding paragraph, principal payments, whether at maturity or by redemption, will be payable upon presentation of the applicable Series 2008 Bond at the offices of the Paying Agent for endorsement or surrender, or of any successor Paying Agent. Payment of interest will be made to the Registered Owner therein and will be paid by check or draft mailed to the Registered Owner thereof at his address as it appears on the registration books of the Issuer maintained by the Registrar or at such other address as is furnished to the Registrar in writing by such Registered Owner. All payments will be made in any coin or currency which on the date of payment is legal tender for the payment of debts due the United States of America.

So long as the Community Impact Board is the Registered Owner of the Series 2008 Bonds, payments of principal and interest will be made by check or draft and mailed to the Community Impact Board as the Registered Owner at the address shown on the registration books maintained by the Registrar.

The Issuer will make the principal payments stated for each year, together with accrued but unpaid interest, if any, on the total principal sum outstanding with interest accruing from April 1, 2009, payable beginning April 1, 2010, and on each succeeding April 1 until the total principal sum is paid in full, as follows:

__April 1_	Principal Maturing
2010	$26,000
2011	26,000
2012	27,000
2013	28,000
2014	29,000
2015	30,000
2016	31,000
2017	32,000
2018	34,000
2019	37,000

Section 2.3 Optional Redemption and Redemption Prices. Each principal payment of the Series 2008 Bond is subject to prepayment and redemption at any time, in whole or in part (if in part, in integral multiples of $1,000), at the election of the Issuer, in inverse order of the due dates therein, and by lot selected by the Issuer if less than all of the Series 2008 Bonds of a particular due date are to be redeemed, upon notice as provided in Section 2.4 of this Bond Resolution with respect to Exchange Bonds, and upon at least 30 days' prior written notice of the amount of prepayment and the date scheduled for prepayment to the Community Impact Board with respect to the Series 2008 Bonds, and at a redemption price equal to 100% of the principal amount to be prepaid or redeemed, plus accrued interest, if any, to the date of redemption.

(a) If any of the Exchange Bonds are to be redeemed, the Registrar will cause notice to be given as provided in this Section 2.4. Notice of redemption will be mailed by first class mail, postage prepaid, to all Registered owners of Exchange Bonds to be redeemed at their addresses as they appear on the registration books of the Registrar at least 30 days but not more than 45 days before the date fixed for redemption. Such notice must state the following information:

(i) the complete official name of the Exchange Bonds, including series, to be redeemed, the identification numbers of the Exchange Bonds being redeemed;

(ii) any other descriptive information needed to identify accurately the Exchange Bonds being redeemed, including, but not limited to, the original issue date of such Exchange Bonds;

(iii) in the case of partial redemption of any Exchange Bonds, the respective principal amounts therein to be redeemed;

(vi) that on the redemption date the redemption price will become due and payable upon each such Exchange Bond or portion therein called for redemption; and

(vii) the place where such Exchange Bonds are to be surrendered for payment of the redemption price, designating the name and address of the redemption agent with the name of a contact person and telephone number.

(b) Upon the payment of the redemption price of Exchange Bonds being redeemed, each check or other transfer of funds issued for such purpose will identify the Exchange Bonds being redeemed with the proceeds of such check or other transfer.

(c) The Registrar may not give notice of a redemption until there are on deposit with the Paying Agent sufficient funds for the payment of the redemption price.

Notice of redemption must be given, not more than 45 days nor less than 30 days before the redemption date, to registered owners of the Exchange Bonds, or portions therein, to be redeemed. A second notice of redemption will be given, not later than 90 days subsequent to the redemption date, to registered owners of Exchange Bonds or portions therein redeemed but who failed to deliver Series 2008 Bonds for redemption prior to the 60th day following such redemption date. Any notice mailed will be conclusively presumed to have been duly given, whether or not the Registered Owner of such Series 2008 Bonds receives the notice. Receipt of such notice is not a condition precedent to redemption, and failure so to receive notice by a registered owner will not affect the validity of the proceedings for the redemption of the Series 2008 Bonds.

If any Exchange Bond is to be redeemed in part only, the notice of redemption which relates to that Exchange Bond must state also that on or after the redemption date, upon surrender of such Series 2008 Bond, a new Series 2008 Bond in principal amount equal to the unredeemed portion of such Series 2008 Bond will be issued.

Section 2.5 Execution and Delivery of the Series 2008 Bonds. The Chair is authorized to execute by manual or facsimile signature the Series 2008 Bonds and the County Clerk to countersign by manual or facsimile signature the Series 2008 Bonds and to have imprinted, stamped or otherwise placed on the Series 2008 Bonds the official seal of the Issuer. The County Clerk is authorized to deliver to the Community Impact Board the Series 2008 Bonds upon payment to the Issuer of the proceeds of the Series 2008 Bonds.

Section 2.6 Delinquent Payment. Payments of principal an interest, if any, on the Series 2008 Bonds which are delinquent from their due date will draw interest at the rate of eighteen percent (18%) per annum on the delinquent payment from the due date until paid in full.

Section 2.7 Exchange of Series 2008 Bonds. As long as the Community Impact Board is the sole Registered Owner of the Series 2008 Bonds, the Series 2008 Bonds will be issued only as the Series 2008 Bonds in the form prescribed in Exhibit “B”. It is recognized that the Community Impact Board may sell or otherwise transfer the Series 2008 Bonds pursuant to the provisions of the State Financing Consolidation Act, Title 63, Chapter 65, Utah Code Annotated 1953, as amended, or otherwise. In the event the Community Impact Board determines to sell or otherwise transfer all or a portion of the Series 2008 Bonds pursuant to the State Financing Consolidation Act, or otherwise, the Series 2008 Bonds will be exchanged at the office of the Paying Agent for a like aggregate principal amount of Exchange Bonds in accordance with the provisions of this Section 2.7 and Section 3.1 of this Bond Resolution. Exchange Bonds may thereafter be exchanged from time to time for other Exchange Bonds in accordance with Section 3.1 of this Bond Resolution. Any Series 2008 Bond, or any portion therein, which is sold or otherwise transferred or liquidated by the Community Impact Board pursuant to the State Financing Consolidation Act, or otherwise, will be in the form of an Exchange Bond prescribed in Exhibit “C”, and will be executed pursuant to authorization contained in Section 2.5 of this Bond Resolution. Each principal payment on the Series 2008 Bonds not previously paid or cancelled will be represented by an equivalent principal amount of Exchange Bonds, in authorized denominations, and of like maturity. The Issuer and its officers will execute and deliver such documents and perform such acts as may reasonably be required by the Issuer to accomplish the exchange of the Series 2008 Bonds for Exchange Bonds, provided that the Community Impact Board will pay or cause to be paid all costs and other charges incident to such exchange and the Issuer will have no obligation to pay any such costs or charges.

Section 3.1 Execution of and Registration of Series 2008 Bonds; Persons Treated as Owners. The Series 2008 Bonds will be signed by the Issuer and the Issuer will cause books for the registration and for the transfer of the Series 2008 Bonds to be kept by the County Clerk who is appointed the Registrar of the Issuer with respect to the Series 2008 Bonds. Any Series 2008 Bond may, in accordance with its terms, be transferred only upon the registration books kept by the Registrar, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Series 2008 Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form approved by the Registrar, duly executed. No transfer will be effective until entered on the registration books kept by the Registrar. Upon surrender for transfer of any Series 2008 Bond duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Registrar and duly executed by, the Registered Owner or his attorney duly authorized in writing, the Issuer will execute and deliver in the name of the transferee or transferees, a new Series 2008 Bond or Bonds of the same maturity and series for a like aggregate principal amount as the Series 2008 Bond surrendered for transfer. Series 2008 Bonds may be exchanged at the office of the Registrar for a like aggregate principal amount of Series 2008 Bonds of the same series or other authorized denominations and the same maturity. The execution by the Issuer of any Series 2008 Bond of any authorized denomination will constitute full and due authorization of such denomination, and the Registrar will then be authorized to deliver that Series 2008 Bond. The Registrar will not be required to transfer or exchange any Exchange Bond at any time following the mailing of notice calling a Series 2008 Bond for redemption.

Series 2008 Bonds surrendered for payment, redemption or exchange, will be promptly cancelled and destroyed by the Issuer.

The Issuer, the Registrar and the Paying Agent may treat and consider the person in whose name each Series 2008 Bond is registered on the registration books kept by the Registrar as the holder and absolute owner thereof for the purpose of receiving payment of, or on account of, the principal or redemption price thereof and for all other purposes whatsoever, and neither the Issuer, nor the Registrar nor the Paying Agent will be affected by any notice to the contrary. Payment of any Series 2008 Bond will be made only to or upon order of the Registered Owner thereof or his legal representative, but such registration may be changed as hereinabove provided. All such payments will be valid and effectual to satisfy and discharge the liability upon such Series 2008 Bond to the extent of the sum or sums so paid.

The Issuer may require the payment by the Registered Owner requesting exchange or transfer of Series 2008 Bonds of any tax or other governmental charge and any service charge which are required to be paid with respect to such exchange or transfer and such charges will be paid before the new Series 2008 Bond will be delivered.

Section 3.2 Deposit of Bond Proceeds. The proceeds from the sale of the Series 2008 Bonds will be deposited upon delivery in the Escrow Account and will be disbursed under the provisions of the Escrow Agreement. All money deposited in the Escrow Account will be used solely for the purpose of defraying all or a portion of the costs of the Project including the payment of costs of issuance of the Series 2008 Bonds. Any unexpended balance of the proceeds from the sale of the Series 2008 Bonds remaining in the Escrow Account after completion of the Project will be paid immediately into the “Iron, Utah Sales Tax Revenue Bond Sinking Fund Account,” referred to in this Bond Resolution as the “Sinking Fund”, and will be used only for the prepayment of the Series 2008 Bonds. Principal and interest last to become due will be prepaid first, and in the event less than all of the principal amount of the Series 2008 Bonds maturing on the last due date are to be redeemed, the Issuer will by lot select those Series 2008 Bonds to be prepaid. Proceeds from the sale of the Series 2008 Bonds on deposit in the Escrow Account may, at the discretion of the Issuer, be invested by the Escrow Agent as provided in the Escrow Agreement. Following the transfer of unexpended funds from the Escrow Account to the Bond Account, the Escrow Account will be closed.

Section 3.3 The Series 2008 Bonds Constitute Special Limited Obligations. Notwithstanding anything else in this Bond Resolution, the principal and interest on the Series 2008 Bonds will be payable out of 100% of the Revenues, and in no event will the Series 2008 Bonds be deemed or construed to be a general indebtedness of the Issuer or payable from any funds of the Issuer other than Revenues. The Issuer pledges the Revenues to pay the principal and interest on the Series 2008 Bonds.

The Issuer may, in its sole discretion, but without obligation and subject to the Constitution, laws, and budgetary requirements of the State of Utah, make available properly budgeted and legally available funds to defray any insufficiency of Revenues to pay the Series 2008 Bonds; however, the Issuer has not covenanted and cannot covenant to make those funds available and has not pledged any of those funds for that purpose.

Section 3.4 Flow of Funds for the Series 2008 Bonds. From and after the delivery date of the Series 2008 Bonds, and until all the Series 2008 Bonds have been fully paid, the Revenues will be set aside into the Iron Sales Tax Revenue Fund (the “Revenue Fund”), to be held by the Depository Bank. The Issuer will then make accounting allocations of the funds deposited in the Revenue Fund for the following purposes and in the following priority:

(i) Of the amounts allocated to the Sinking Fund there will be allocated the following amounts to a subaccount established on the books of the Issuer known as the “Bond Account” such amounts as will assure, to the extent of the availability of Revenues, the prompt payment of the principal and interest on the Series 2008 Bonds and Outstanding Bonds as will become due. The amount to be so set aside with respect to the Series 2008 Bonds will, as nearly as may be practicable, be set aside and allocated to the Bond Account monthly, on or before the tenth day of each month, beginning April 1, 2009, and will equal 1/12 of the interest next falling due on the Series 2008 Bonds and 1/12 of the amount of the principal on the payment next due on the Series 2008 Bonds; and

(ii) Of the amounts allocated to the Sinking Fund after there will have been allocated the amounts required to be allocated under (i) above, there will be allocated monthly on or before the tenth day of each month, beginning April 1, 2009, (a) to the debt service reserve fund with respect to the Outstanding Bonds, the amount required, if any, under the resolution authorizing the Outstanding Bonds, and (b) to the “Reserve Account – Series 2008” established on the books of the Issuer the sum of $415, plus such additional amount as may be required to meet any monthly installment to the Reserve Account – Series 2008 not theretofore made in whole or in part, such allocation will continue until there will have been accumulated in the Reserve Account – Series 2008 an amount equal to $30,000. Amounts allocated to the Reserve Account - Series 2008 will be used to pay the principal and interest falling due on the Series 2008 Bonds at any time when there are not sufficient funds in the Bond Account to pay the same, but pending such use may be invested as provided in this Bond Resolution. When the Reserve Account - Series 2008 has been accumulated as in this paragraph provided, no further allocations to the Reserve Account need be made unless payments from the Reserve Account have reduced below the amounts required by this paragraph, in which event allocations will be resumed until such deficiency has been remedied; and

(b) All remaining funds, if any, in the Revenue Fund after all of the payments required to be made into the Bond Account and Reserve Account - Series 2008 referenced in this Bond Resolution have been made, may be used by the Issuer (a) to prepay or redeem the Series 2008 Bonds in whole or in part, or (b) to be applied to any other lawful purpose as determined by the Issuer.

(c) If at any time, the Revenues of the Issuer will be insufficient to make any payment to any of the above funds or accounts on the date or dates specified, the Issuer will make good the amount of such deficiency by making additional payments out of the first available Revenues thereafter received by the Issuer.

Section 3.5 Investment of Funds. Any funds allocated to the Bond Account and the Reserve Account – Series 2008 may, at the discretion of the Issuer, be invested in accordance with the State Money Management Act. All income derived from the investment of the funds of the Bond Account will be maintained in those funds and disbursed along with the other moneys on deposit therein as provided in this Bond Resolution. All income derived from the investment of the Reserve Account – Series 2008 will at the end of each Sinking Fund Year be transferred by the Issuer to the Bond Account so long as the Reserve Account – Series 2008 after said transfer has funds equaling $30,000. Should the Reserve Account – Series 2008 have less than $30,000, then that income will be maintained in the Reserve Account – Series 2008 until total deposits in the Accounts equals $30,000. There will not be required to be in the Bond Account and the Reserve Account – Series 2008 at any time more than the total amount required to pay the total principal outstanding of the Series 2008 Bonds. Whenever the money in the Bond Account and the Reserve Account – Series 2008 equals the total principal amount of the Series 2008 Bonds, the money in those Accounts will be used to prepay all of such Bonds.

Section 4.1 General Covenants. The Issuer covenants and agrees with each and every holder of the Series 2008 Bonds the following:

(a) While any of the Series 2008 Bonds remain outstanding and unpaid, any resolution or other enactment of the Governing Body of the Issuer, applying the Revenues for the payment of the Series 2008 Bonds will be irrevocable until the Series 2008 Bonds have been paid in full, and will not be subject to amendment or modification in any manner which would impair the rights of the holders of the Series 2008 Bonds or which would in any way jeopardize the timely payment of principal when due.

(b) The average annual installments of principal and interest on the Series 2008 Bonds and any bonds issued on a parity will not at any one time exceed 80% of the total amount of the Revenues received by the Issuer during the Sinking Fund Year immediately preceding the Sinking Fund Year in which this Bond Resolution is adopted.

(c) So long as any Series 2008 Bonds remain outstanding, proper books of record and account will be kept by the Issuer separate and apart from all other records and accounts, showing complete and correct entries of all transactions relating to the receipt and use of the Revenues. Each Bondholder or any duly authorized agent or agents of such holder will have the right at all reasonable times to inspect all records, accounts and data relating thereto. Except as otherwise provided in this Bond Resolution, the Issuer further agrees that it will within 180 days following the close of each Sinking Fund Year cause an audit of such books and accounts to be made by an independent firm of certified public accountants, showing the receipts and disbursements for account of Revenues, and that such audit will be available for inspection by the Bondholder; provided, however, during such periods of time as the Community Impact Board is the Registered Owner of the State Bonds, each such audit will be supplied to the Community Impact Board as soon as completed without prior request therefor by the Community Impact Board. Each such audit, in addition to whatever matters may be thought proper by the accountant to be included therein, will include the following:

(i) A statement in detail of the income and expenditures of Revenues for such Sinking Fund Year;

(iii) The accountant's comments regarding the manner in which the Issuer has carried out the requirements of this Bond Resolution, and the accountant's recommendations for any change or improvement; and

(iv) An analysis of all funds and accounts created in this Bond Resolution, setting out all deposits and disbursements made during the Sinking Fund Year and the amount in each fund or account at the end of the Sinking Fund Year.

The Bondholder may, upon written request from the Issuer setting forth the reasons why a certified audit is not necessary or is impractical, waive the audit requirements for any particular Sinking Fund Year set forth in this Subsection 4.1(c), provided, however, that such waiver will not apply to the reporting requirements of the Issuer set forth in Subsection 4.1(d) herein.

(d) In addition to the reporting requirements set forth in Subsection 4.1(c) above, the Issuer will submit to the Community Impact Board within 180 days following the close of each Sinking Fund Year, a summary report substantially in the form as provided by the Community Impact Board to the Issuer upon purchase of the Series 2008 Bonds.

If a Bondholder is other than the Community Impact Board, the Issuer agrees to furnish a copy of such information to such Bondholder at its request after the close of each Sinking Fund Year. Any Bondholder will have the right to discuss with the accountant compiling such information the contents therein and to ask for such additional information as it may reasonably require.

(e) Upon request, the Issuer will furnish to the Bondholder financial statements and other information relating to the Issuer and its Revenues as it may from time to time reasonably require.

(f) The Issuer will carry insurance, including, but not limited to, workmen’s compensation insurance and public liability insurance, in such amounts and to such extent as is normally carried by similar governmental entities.

(g) The Bondholder will have the right at all reasonable times to inspect the Project, and all records, accounts and data of the Issuer relating thereto, and upon request, the Issuer will furnish to it financial statements and other information relating to the Issuer and the Project as it may from time to time reasonably require.

(h) The Issuer will commence and complete the acquisition and construction of the Project with all practical dispatch and will cause all construction to be effected in a sound and economical manner.

(i) The Issuer will from time to time duly pay and discharge or cause to be paid all taxes, assessments and other governmental charges, if any, lawfully imposed upon the Project or any part therein or upon the Revenues, as well as any lawful claims for labor, materials or supplies which if unpaid might by law become a lien or charge upon the Project or the Revenues or any part therein or which might impair the security of the Series 2008 Bonds, except when the Issuer in good faith contests its liability to pay the same.

(j) All payments falling due on the Series 2008 Bonds will be made to the Bondholder therein at par and all charges made by the Depository Bank for its services will be paid by the Issuer.

(k) The Issuer will maintain its corporate identity, will make no attempt to cause its corporate existence to be abolished and will resist all attempts by other municipal corporations to annex all or any part of the territory now or hereafter in the Issuer or served by the Project.

(l) The Issuer will file or cause to be filed with the Internal Revenue Service Center, Ogden, UT 84201, on or before the fifteenth day of the second calendar month after the close of the calendar quarter in which the Series 2008 Bonds are issued, a Form 8038-G, Information Return for Tax-Exempt Governmental Bond Issues, with respect to the Series 2008 Bonds.

(m) The Issuer further covenants and agrees to and for the benefit of the registered owners of the Series 2008 Bonds that the Issuer (i) will not take any action that would cause interest on the Series 2008 Bonds to become includible in gross income for purposes of federal income taxation, (ii) will not omit to take or cause to be taken, in timely manner, any action, which omission would cause the interest on the Series 2008 Bonds to become includible in gross income for purposes of federal income taxation and (iii) will, to the extent possible, comply with any other requirements of federal tax law applicable to the Series 2008 Bonds in order to preserve the exclusion from gross income for purposes of federal income taxation of interest on such Series 2008 Bonds.

(n) The Chair and County Clerk of the Issuer are hereby authorized and directed to execute such certificates as will be necessary to establish that the Series 2008 Bond is not an “arbitrage bond” within the meaning of Section 148 of the Code and the regulations promulgated or proposed in relation thereto. The Issuer covenants and certifies to and for the benefit of the Registered Owners of the Series 2008 Bonds that no use will be made of the proceeds from the issue and sale of the Series 2008 Bonds, or any funds or accounts of the Issuer which may be deemed to be gross proceeds of the Series 2008 Bonds, pursuant to Section 148 of the Code and applicable regulations (proposed or promulgated) which use, if it had been reasonably expected on the date of issuance of the Series 2008 Bonds, would have caused the Series 2008 Bonds to be classified as “arbitrage bonds” within the meaning of Section 148 of the Code. Pursuant to this covenant, the Issuer obligates itself to comply throughout the term of the Series 2008 Bonds with the requirements of Section 148 of the Code and the regulations proposed or promulgated with respect thereto.

Section 4.2 Covenant of State of Utah. In accordance with Section 11-14-307(3), Utah Code Annotated 1953, as amended, the State of Utah hereby pledges and agrees with the owners of the Series 2008 Bonds that it will not alter, impair or limit the Revenues in a manner that reduces the amounts to be rebated to the Issuer which are devoted or pledged herein until the Series 2008 Bonds, together with applicable interest, are fully met and discharged; provided, however, that nothing will preclude such alteration, impairment or limitation if and when adequate provision will be made by law for the protection of the holders of the Series 2008 Bonds.

Section 4.3 Additional Indebtedness Series 2008 Bonds. No additional indebtedness, bonds or notes of the Issuer payable on a priority superior to the Series 2008 Bonds out of the Revenues will be created or incurred by the Issuer without the prior written consent of all holders of the Series 2008 Bonds. Furthermore, the Series 2008 Bonds will not be entitled to any priority one over the other in application of the Revenues, regardless of the time or times of their issuance, it being the intention of the Issuer that there will be no priority among the Series 2008 Bonds authorized to be issued pursuant to this Bond Resolution regardless of the fact that they may be actually issued and delivered at different times. It is expressly agreed and covenanted that the Issuer will not hereafter issue any bonds or obligations payable from the Revenues, or any part therein, or which constitutes a lien on such Revenues until all Series 2008 Bonds have been paid in full unless such additional bonds are issued in such manner that they are in all respects subordinate to the Series 2008 Bonds.

The provisions of the foregoing paragraph are subject to the following two exceptions:

(1) The Series 2008 Bonds or any part therein may be refunded. The refunding bonds so issued will enjoy a lien on the Revenues on a parity with the Series 2008 Bonds except that if fewer than all of the Series 2008 Bonds outstanding at the time are so refunded, no refunding bonds will bear interest at a rate higher or mature at a date earlier than the corresponding Series 2008 Bond refunded thereby without the consent of the owners and holders of all of the unrefunded Series 2008 Bonds. In all other respects, refunding bonds may be secured in such manner and may be payable from such sources and be subject to other terms and provisions that may be provided in the resolution authorizing their issuance. Refunding bonds may be exchanged with the consent of the Bondholder for not less than a like principal amount of the Series 2008 Bonds authorized to be refunded, may be sold or may be exchanged in part or sold in part. If sold, the proceeds of the sale not required for the payment of expenses will be used to refund that portion of the Series 2008 Bonds refunded.

(2) Additional bonds may be issued on a parity with the Series 2008 Bonds herein authorized if all of the following conditions are met at the time of the issuance of such additional bonds (herein referred to as “Parity Bonds”):

(i) The Issuer’s Revenues in the Sinking Fund Year preceding the year in which the Parity Bonds are to be issued were 125% of the average Annual Debt Service on all of the Series 2008 Bonds and Parity Bonds then outstanding and the Parity Bonds so proposed to be issued.

(ii) All payments required by this Bond Resolution to be made into the Sinking Fund must have been made in full and there must be in the Reserve Account – Series 2008 the full amount required by this Bond Resolution to be accumulated therein.

(iv) The Parity Bonds must be payable as to principal on April 1 of each year in which principal falls due.

(v) The proceedings authorizing such Parity Bonds must raise the amount to which the reserve funds will be accumulated to an amount no less than the highest future Annual Debt Service of all Series 2008 Bonds and Parity Bonds then outstanding and the Parity Bonds so proposed to be issued and must require the accumulation of such amount in the reserve account to be accomplished within six years after delivery of such Parity Bonds.

Section 4.4 Arbitrage Rebate Exemption for Small Issuer. The Issuer certifies for the purpose of qualifying for the exception contained in Section 148(f)(4)(D) of the Code from the requirement to rebate arbitrage earnings from investment of proceeds of the Series 2008 Bonds (the “Rebate Exemption”) as follows:

(a) The Series 2008 Bonds are issued by the Issuer which has general taxing powers.

(b) Neither the Series 2008 Bonds, nor any portion therein is a private activity bond as defined in Section 141 of the Code (“Private Activity Bond”).

(c) 95% or more of the net proceeds of the Series 2008 Bonds are to be used for local government activities of the Issuer (or of a governmental unit, the jurisdiction of which is entirely within the jurisdiction of the Issuer).

(d) Neither the Issuer nor any aggregated issuer has issued or is reasonably expected to issue any tax-exempt bonds exceeding $5,000,000 other than Private Activity Bonds (as those terms are used in Section 148(f)(4)(D) of the Code) during calendar year 2008.

For purposes of this Section 4.4, “aggregated issuer” means any entity which (a) issues obligations on behalf of the Issuer, (b) derives its issuing authority from the Issuer, or (c) is subject to substantial control by the Issuer.

The Issuer hereby represents that it has not created, does not intend to create, and does not expect to benefit from any entity formed or availed of to avoid the purposes of Section 148(f)(4)(D)(IV) of the Code.

Accordingly, the Issuer will qualify for the Rebate Exemption granted to small governmental units under Section 148(f)(4)(D) of the Code, and the Issuer will be treated as meeting the requirements of Paragraphs (2) and (3) of Section 148(f) of the Code relating to the required rebate of arbitrage earnings to the United States with respect to the Series 2008 Bonds.

Section 4.5 Bank Designation. For purposes of and in accordance with Section 265 of the Code, the Issuer has designated the Series 2008 Bonds, as an issue qualifying for the exception for certain qualified tax-exempt obligations to the rule denying banks and other financial institutions 100% of the deduction for interest expenses which is allocable to tax-exempt interest. The Issuer reasonably anticipates that the total amount of tax-exempt obligations (other than obligations described in Section 265(b)(3)(C)(ii) of the Code) which will be issued by the Issuer and by any aggregated issuer during the current calendar year will not exceed $10,000,000. For purposes of this Section, “aggregated issuer” means any entity which, (i) issues obligations on behalf of the Issuer, (ii) derives its issuing authority from the Issuer, or (iii) is directly or indirectly controlled by the Issuer within the meaning of Treasury Regulation Section 1.150-1(e). The Issuer hereby represents that (a) it has not created and does not intend to create and does not expect to benefit from any entity formed or availed of to avoid the purposes of Section 265(b)(3)(C) or (D) of the Code and (b) the total amount of obligations so designated by the Issuer and all aggregated issuers for the current calendar year does not exceed $10,000,000.

Section 5.1 Default and Remedies. Failure of the Issuer to perform any covenant or requirement of the Issuer under this Bond Resolution within 30 days after having been notified in writing by a Bondholder of such failure, will constitute an event of default hereunder and will allow each Bondholder to take the following enforcement remedies:

(a) The Bondholder may require the Issuer to pay an interest penalty equal to 18% per annum of the outstanding principal amount on the Series 2008 Bonds, said interest penalty to accrue from the date of the notice of the Bondholder to the Issuer referenced hereinabove until the default is cured by the Issuer. Said interest penalty will be paid on each succeeding payment date until the default is cured by the Issuer.

(b) The Bondholder may appoint a trustee bank to act as a receiver of the Revenues for purposes of applying said Revenues toward the Revenue allocations required in Sections 3.4 herein and in general, protecting and enforcing each Bondholder's rights thereto, in which case, all administrative costs of the trustee bank in performing said function will be paid by the Issuer.

No remedy conferred herein is intended to be exclusive of any other remedy, but each and every such remedy will be cumulative and will be in addition to any other remedy given to each Bondholder hereunder or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right, power or remedy accruing upon a default will impair any such right, power or remedy or will be construed to be a waiver of any default or acquiescence therein; and every such right, power or remedy may be exercised from time to time as may be deemed expedient.

Section 5.2 Amendments to Bond Resolution. Provisions of this Bond Resolution will constitute a contract between the Issuer and the Bondholder; and after the issuance of the Series 2008 Bonds, no change, variation or alteration of any kind in the provisions of this Bond Resolution will be made in any manner until such time as all of the Series 2008 Bonds have been paid in full except as hereinafter provided.

The Bondholders will have the right from time to time to consent to and approve the adoption by the Issuer of resolutions modifying or amending any of the terms or provisions contained in this Bond Resolution in the manner and to the extent set out below.

Whenever the Issuer will propose to amend or modify this Bond Resolution under the provisions of this section, it will cause notice of the proposed amendment to be sent to all Bondholders of all Series 2008 Bonds then outstanding. Such notice will briefly set forth the nature of the proposed amendment and will state that a copy of the proposed amendatory resolution is on file in the office of the County Clerk for public inspection. Should a Bondholder consent to the proposed amendment to this Bond Resolution, it will submit to the Issuer a written instrument which will refer to the proposed amendatory resolution described in said notice and will specifically consent to and approve the adoption therein. Upon receipt of Bondholder consents representing at least 75% of the principal of Series 2008 Bonds outstanding, the governing body of the Issuer may adopt said amendatory resolution, and it will become effective, provided, however, that nothing in this Section 5.2 will permit or be construed as permitting (a) an extension of the stated maturity or reduction in the principal amount of, or reduction in the rate of or extension of the time of paying of interest, without the consent of the Bondholder of such Series 2008 Bonds, or (b) a reduction in the amount or extension of the time of any payment required by any Fund or account established hereunder without the consent of the Bondholders of all the Series 2008 Bonds which would be affected by the action to be taken, or (c) a reduction in the aforesaid aggregate principal amount of Series 2008 Bonds, the Bondholders of which are required to consent to any such waiver or amendatory resolution, or (d) an affect on the rights of the Bondholders of less than all Series 2008 Bonds then outstanding, without the consent of the Bondholders of all the Series 2008 Bonds at the time outstanding which would be affected by the action to be taken.

If a Bondholder at the time of the adoption of such amendatory resolution will have consented to and approved the adoption therein as herein provided, said Bondholder will not have any right or interest to object to the adoption of such amendatory resolution or to object to any of the terms or provision therein contained or to the operation therein or to enjoin or restrain the Issuer from taking any action pursuant to the provisions therein. Any consent given by a Bondholder pursuant to the provisions of this section will be conclusive and binding upon all successive Bondholders.

The fact and date of the execution of any instrument under the provisions of this section may be proved by the certificate of any officer in any jurisdiction who by the laws therein is authorized to take acknowledgments of deeds within such jurisdiction, that the person signing such instrument acknowledged before him the execution therein, or may be proved by an affidavit of a witness to such execution sworn to before such officer.

Section 5.3 Maintenance of Proceedings. A certified copy of this Bond Resolution and every amendatory or supplemental ordinance or resolution will be kept on file in the office of the County Clerk where it will be made avai