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HomeMy WebLinkAboutC-8082-7F - Grant Agreement for Special Event Support Program FY 25-26 - Hoag Classic Golf Special EventGRANT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND HOAG CHARITY SPORTS This Grant Agreement ("Agreement") is entered into this 21St day of August, 2025 ("Effective Date"), by and between the City of Newport Beach, a California municipal corporation and Charter City ("City"), and HOAG CHARITY SPORTS, a California nonprofit corporation whose address with the Secretary of State is 2081 Business Center Drive, Suite 195, Irvine, California 92612, and located at 19772 MacArthur Blvd., Suite 110, Irvine, California 92612 ("Grantee"). City and Grantee are at times individually referred to as "Party" and collectively as "Parties" herein. RECITALS A. It is the policy of the City Council that the City's budget specifically allows the City Council to direct revenue towards non-profit agencies, community groups, community events, or enhancement projects with worthy projects or programs which the City Council deems beneficial to the residents' quality of life. B. Grantee requested a grant from the City for The Hoag Classic ("Grant Proposal"). C. The City Council determined the Grant Proposal is for a worthy project that will benefit the City's residents' quality of life. D. The City Council approved a grant in the amount of Twenty Five Thousand Dollars and 00/100 ($25,000.00) ("Grant Funds") to Grantee pursuant to certain conditions regarding expenditure, reporting, and accounting requirements. NOW, THEREFORE, the Parties agree as follows: 1. GRANT 1.1. City awards to Grantee Grant Funds in the amount of Twenty Five Thousand Dollars and 00/100 ($25,000.00) as requested by Grantee in the Grant Proposal attached hereto as Exhibit A and incorporated herein by reference, or such other amount as authorized by the City Council. 1.2. Grant Funds shall be disbursed by City to Grantee on or before June 30, 2026. 2. TERM The term of this Agreement shall commence on the Effective Date and shall continue in full force and effect until June 30, 2026, unless terminated earlier as provided herein. HOAG CHARITY SPORTS Page 1 3. RESTRICTIONS ON USE OF FUNDS AND OTHER REQUIREMENTS RELATED TO THE RECEIPT OF GRANT FUNDS 3.1. The Grant Funds are subject to the following expenditure conditions ("Approved Uses"): 3.1.1. The Grant Funds shall be expended solely for the purposes provided in Exhibit A; 3.1.2. The Grant Funds shall not be used for any activity that would violate City, state or federal statutory or decisional law such as regulations affecting non-profit or tax exempt organizations exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code; and 3.2. Grantee further warrants to City that the Grant Funds will be spent solely for the Approved Uses and the Grant Funds shall be used by Grantee during this Agreement's term otherwise the Grant Funds shall be returned to City, as provided in Section 5 below. 3.3. Grantee shall conduct background checks for all of its volunteers and employees who work with minor children in relation to any project described in Grantee's Grant Proposal. To the extent applicable, Grantee shall provide the City certification that it has complied with this requirement prior to the receipt of Grant Funds. 4. REPORTING AND ACCOUNTING REQUIREMENTS 4.1. At all times during the term of this Agreement, Grantee shall maintain true, proper, and complete books, records, and accounts (collectively, "Books and Records") in which shall be entered fully and accurately all transactions taken with respect to the operations of Grantee under the Grant Proposal and the expenditure of the Grant Funds. Grantee shall maintain the Books and Records in accordance with Generally Accepted Accounting Principles. Grantee shall make available to City such Books and Records upon City's request. 4.2. If the Grantee has been audited by an independent auditor or has been the subject of a compliance audit/examination by a grantee or regulatory agency during the past three years, audit reports and management letters indicating compliance violations, fraud, illegal acts, material weaknesses in internal control structure or reportable conditions, in connection with such audits shall be delivered to the City thirty (30) days prior to the effective date of this agreement. If no audits or events as described above have occurred during this period, the Grantee shall provide City a written assertion that no audits or similar examinations have occurred during the three (3) year period and an assertion that the Grantee is not aware of any events or conditions, described above, or other information that might reasonable impact City's decision to fund the grant as requested. 4.3. City reserves the right to designate its own employee representative(s) or its contracted representative(s) with a Certified Public Accounting firm who shall have the HOAG CHARITY SPORTS Page 2 right to audit Grantee's accounting procedures and internal controls of Grantee's financial systems as they relate to the Grant Proposal and to examine any cost, revenue, payment, claim, other records or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or its representative(s) at mutually agreed upon reasonable times and in conformance with generally accepted auditing standards. Grantee agrees to fully cooperate with any such audit(s). 4.4. This right to audit shall extend during the length of this Agreement and for a period of three (3) years or longer, if required by law, following the date of any Grant Funds tendered under this Agreement. Grantee agrees to retain all necessary records/documentation for the entire length of this audit period. 4.5. Grantee shall, upon conclusion of the event, furnish the City with a Balance Sheet and Income Statement describing the receipt and disbursement activities of Grantee with respect to the Grant Funds. In its sole and absolute discretion, the City may also require Grantee to submit: (i) quarterly check registers and descriptions of each disbursement; (ii) budget -to -actual -results; and (iii) a statement of position describing the assets and liabilities associated with the Grant event. All reports, including a post -event evaluation, shall be due to the City no later than forty-five (45) days following the conclusion of the event. In the event that an independent audit is conducted, Grantee shall forward a copy of the audited report to the City for review, including any Management Letter, Report on Internal Controls, or Reportable Conditions letter generated during the course of the audit. 4.6. Grantee agrees to exercise prudent financial management processes including proper oversight of all assets, budget preparation, and timely reporting including budget - to -actual -comparisons. 4.7. All Approved Uses shall be performed by Grantee or under Grantee's supervision. Grantee represents that it possesses the professional and technical skills required to perform the services required by this Agreement, and that it will perform all services with a standard of care and in a manner commensurate with the community professional standards and with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances. 4.8. If Grantee has supported Political Action Committees(s) (PACs) during the past three (3) years, the Grantee shall hire an independent auditor to perform limited, agreed - upon testwork procedures to provide City assurance that City sponsored event profits did not subsidize the funding of Political Action Committees (PACs) and event proceeds were adequately segregated from funds used to support PACs. Agreed upon procedures may include a review of a detail list of the past three (3) years of PAC contributions and expenditures, including: a. An identifying donor number, date and amount of each reported contribution; and b. A detail of expenditures sufficient enough to determine that the expenditures were solely for PAC -related expenses; and HOAG CHARITY SPORTS Page 3 c. Any retained earnings or fund balance at the end of each fiscal year. Substantive documentation for the contribution and expenditure should be available upon request. City shall approve the agreed -upon testwork procedures prior to the commencement of fieldwork. 5. USE OF GRANT FUNDS 5.1. The Grant Funds shall be used solely by Grantee for the Approved Uses and for no other use. In the event that the Grant Funds are not used for the Approved Uses or are not expended by or before June 30, 2026, Grantee shall notify the City in writing, and shall be obligated to return the Grant Funds to City within thirty (30) days. 5.2. The City's grant contribution shall only be used for non-sectarian purposes. Grantees shall not use the City's grant contribution, or any portion thereof, for any purpose that violates local, state, or federal law, including, but not limited to, the Establishment Clause. 6. INDEMNIFICATION 6.1. To the fullest extent permitted by law, Grantee shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a "Claim"; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to this Agreement (including the negligent and/or willful acts, errors and/or omissions of Grantee, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). 6.2. Notwithstanding the foregoing, nothing herein shall be construed to require Grantee to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Grantee. 7. GRANTEE INDEPENDENCE In the performance of this Agreement, the Grantee, and the agents and employees of Grantee, shall act in an independent capacity and are not officers, employees or agents of the City. The manner and means of performing the Approved Uses are under the control of Grantee, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to HOAG CHARITY SPORTS Page 4 constitute approval for Grantee or any of Grantee's employees or agents, to be the agents or employees of City. Grantee shall have the responsibility for and control over the means of performing the Approved Uses, provided that Grantee is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Grantee as to the details of the performance or to exercise a measure of control over Grantee shall mean only that Grantee shall follow the desires of City with respect to the results of the Approved Uses. 8. PROHIBITION AGAINST TRANSFERS Grantee shall not assign, sublease, hypothecate or transfer this Agreement or any of the services to be performed under this Agreement, directly or indirectly, by operation of law or otherwise without prior written consent of City. Any attempt to do so without written consent of City shall be null and void. 9. NOTICES 9.1. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as hereinafter provided. 9.2. All notices, demands, requests or approvals from Grantee to City shall be addressed to the City at: Attn: Recreation & Senior Services Director Recreation & Senior Services Department City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 9.3. All notices, demands, requests or approvals from City to Grantee shall be addressed to Grantee at: Attn: Scott Easton HOAG CHARITY SPORTS 19772 MacArthur Blvd, Suite 110 Irvine, CA 92612 10.TERMINATION 10.1. Termination for Cause. Grantee shall be in default if Grantee fails or refuses to perform any duty required by the Agreement or performs in a manner inconsistent with the terms, conditions and restrictions in this Agreement. In such event, City shall give Grantee, thirty (30) days written notice to cure, if the default can be cured and City shall be entitled to terminate this Agreement if Grantee has not cured the default within the thirty (30) day cure period. City shall be entitled to immediately terminate this Agreement if the default cannot be cured through corrective action. If terminated for cause, Grant HOAG CHARITY SPORTS Page 5 Funds shall be returned to the City pursuant to Section 5. This Agreement is made on an annual basis, and as such is subject to non -renewal at its termination. 10.2. Termination without Cause. City may terminate this Agreement at any time with or without cause upon seven (7) days written notice to Grantee, any remaining Grant Funds in Grantee's possession at the time of termination shall be returned to City pursuant to Section 5. 10.3. Specific Performance. Grantee agrees that the City has the legal right, and all necessary conditions have been satisfied, to specifically enforce Grantee's obligations pursuant to this Agreement. 11. STANDARD PROVISIONS 11.1. Recitals. City and Grantee acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 11.2. Compliance With all Laws. Grantee shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 11.3. Waiver. A waiver by either Party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 11.4. Integrated Contract. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 11.5. Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Grant Proposal or any other attachments attached hereto, the terms of this Agreement shall govern. 11.6. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 11.7. Amendments. This Agreement may be modified or amended only by a written document executed by both Grantee and City and approved as to form by the City Attorney. 11.8. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 11.9. Controlling Law And Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this HOAG CHARITY SPORTS Page 6 Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 11.10. Equal Opportunity Employment. Grantee represents that it is an equal opportunity employer and it shall not discriminate against any contractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age or any other impermissible basis under law. 11.11. No Attorneys Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorney's fees. 11.12. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. [SIGNATURES ON NEXT PAGE] HOAG CHARITY SPORTS Page 7 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: /� Z By: 41) Aq' bn C. Harp City Attorney ATTEST: Date: / / ;Zej 9.6 By: / Lena Shumway City Clerk CITY OF NEWPORT BEACH, A California muni ipaI c7poration Dater 1 By: S n in Recr ion & Senior Services Director GRANTEE: HOAG CHARITY SPORTS, a California nonprofit corporation Date: Signed in Counterpart By: Robert Braithwaite Chief Executive Officer Date: Signed in Counterpart Andrew Guarni Chief Financial Officer/Secretary [END OF SIGNATURES] Attachment: Exhibit A - Grant Proposal HOAG CHARITY SPORTS Page 8 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: Zs By: Aaron C. Harp City Attorney ATTEST: Date: By: Molly Perry Interim City Clerk CITY OF NEWPORT BEACH, A California municipal corporation Date: By: Sean Levin Recreation & Senior Services Director GRANTEE: HOAG CHARITY SPORTS, a California nonprofit corporation Date: to -JJ - Lo z a" Ro ert Braithwaite Chief Executive Officer Date: By: A ew Guarni Chief Financial Officer/Secretary [END OF SIGNATURES] Attachment: Exhibit A - Grant Proposal HOAG CHARITY SPORTS Page 8 Exhibit A Grant Proposal HOAG CHARITY SPORTS Page A-1 Special Event Support Application - Signature Events Reference # Status Login Usemame Login Email Name of Applicant Organization: First Name 17008378 Complete RichThomas rthomas@toshibaclassic.com The Hoag Classic Newport Beach- Hoag Charity Sports Scott Last Name Easton Title / Affiliation: Executive Director - Hoag Classic Newport Beach Full Mailing Address of Organization: 19772 MacArthur Blvd, Suite 110 Phone Number 9498879648 Email Address seaston@hoagclassic.com Type of Nonprofit Entity: 501(c)3 State of California Entity Number (if applicable): CA Signatory 1 - Name Robert Braithwaite Signatory 1 - Title President Signatory 2 - Name Andrew Guarni Signatory 2 - Title • Secretary • Chief Financial Officer Entity Address (if different from applicant): Name of Event: Event Date(s): Is this an annual event? Event location(s)/venue(s) in Newport Beach: 1 Hoag Drive, Newport Beach 92663 The Hoag Classic Newport Beach March 21-29, 2026 yes Newport Beach Country Club, Vea Newport Beach, Pendry, Balboa Bay Resort Is at least 51 percent of this event - in its entirety Yes - within Newport Beach? Type of event (Check one): Total Attendees (Spectators + Participants) Have you held this event before? If yes, what years? • Other • Professional Televised Sports, Social, Community, Arts, Philanthropic, Etc. 30000 Yes Over 25 years. Have you previously received City support for Yes this or any other event sponsored by your organization? If yes, please list the event(s) and year(s): Approximate impact on Newport Beach businesses: Hoag Classic, 2025 $25,000 (Signature) Hoag Classic, 2024 $15,000 (Signature) Hoag Classic, 2023 $15,000 (Signature) Hoag Classic, 2022 $15,000 (Signature) Hoag Classic, 2020 $15,000 (Signature) Hoag Classic, 2019 $15,000 (Signature) Toshiba Classic 2018, $15,000 (Community) This event is broadcast internationally promoting tourism, travel, and Newport Beach as a destination for both business and personal travel for the other 51 weeks out of the year, creating a positive impact on businesses, not only for one week in March, but for the other 51 weeks of the year. We have a direct positive impact on the Airport, Hotels, Restaurants, and Shops with the visitors leading up to and during the tournament, and we have an indirect impact on all of the businesses in Newport Beach by showcasing the community on the international broadcast which promotes visitors to the community throughout the year. We also try and use local businesses as much as Media Impressions: Please list any fees charged to the public entering the event as a participant or as a spectator. Portion of money raised or made donated: Describe what, if any, portion of the event is FREE to the public. possible and create a community feel for the event in as many ways as we can. There is no doubt we have a positive impact on well over 500 Local Community Businesses Overall Media Impressions -7.93 billion total reach -2.5 billion impressions across all channels (Live TV broadcast, television commercials, social media, local Public Relations & Community Advertising, Paid Advertising and Digital Promotions -1,900,000 engagements -12,770,000 video views We try and keep our ticket prices at a more than reasonable price so the event can be enjoyed by everyone in the community and charge $40.00 for a daily ticket, Wednesday - Sunday We work extremely hard to contribute back to the community and support various charities. 100% of the profit from this event is used to support community charities like: Hoag Hospital Hoag Charity Sports Hoag Hospital Foundation Newport Beach Fire Department Foundation Newport Police Department Foundation Newport Mesa Unified School District Big Brothers / Big Sisters of Orange County First Tee of Orange County US Navy Memorial Foundation Marine Corp Scholarship Foundation Steadfast LA We have many different opportunities to attend for free. We have the ever popular ATI Salute to Service Day, where all first responders (Fire, Police, EMT and Paramedics), retired and veteran military members, active duty, reserve, and National Guard; can attend for free with a guest. We have Kingston Technology Student Day, where families can attend and all guests 18 and under receive free admission. Everday, all week long, kids under 12 receive free admission. While the overall event is not free, we do provide multiple opportunities for fans to attend free of charge and we keep the event very affordable, while continuing to do more and more things to be relevant to everyone in the community. We have added many lifestyle types of events around the golf tournament. We have celebrities, food, music, cars and other elements of the event that community members can find interesting, even if they are not a golf fan. In addition, we have over 700 volunteers from Newport Beach and surrounding communities volunteering time, because they believe in our cause. They receive complimentary admission to the tournament on days when they are not scheduled to volunteer and are part of the proud history of this event. This event's foundation is built on the community standing up and volunteering to support and create this event to benefit Hoag Hospital and highlight Newport Beach. What is the total expenditure budget specifically $ 8,800,000.00 for this event? What is the total anticipated gross revenue $ 8,800,000 specifically from this event? To be eligible to receive City support, the applicant must demonstrate that the event is not financially dependent on receiving City grant funds. How will receiving a grant from the City of Newport Beach help to elevate the overall event? With over 300 Sponsors and Partners, we consider ourselves financially independent. Ultimately with that level of corporate and private support, our partners and hosts will ensure that we will meet all of our budget goals, but with the help of the Newport Beach Special Event Grant Funds we will be able to continue elevating the experience for every attendee and community member who participates in the Hoag Classic. Our goal is to invest in creating an event that showcases the best of Newport Beach to the world, involve the community in various ways, and has a meaningful philanthropic goal. As we have shown for the last couple of years; as we find new revenue, we will continue investing in this annual Newport Beach tradition to create an event that best highlights and showcases Newport Beach. The support of the Newport Beach Special Event Grant will enable us to not only elevate the event, but also make it safer for all attendees, less cumbersome on the community, and more efficiently managed. We can utilize these new funds to make the Hoag Classic better that the year before, for the city and the community that lives here. Brief Description of Event (150-word maximum): For one week every year, the international spotlight shines on Newport Beach. Thousands of people visit Newport Beach for the premier stop on the PGA Champions Tour, The Hoag Classic. With decades of history, this event continues to build on its community focus. Now entering its sixth year as the Hoag Classic, we are proud to showcase one of Newport Beach's finest Indicate any anticipated impacts the event will have: In 250 words or less, explain how your event will meet or exceed any or all of the Signature Event institutions, while supporting it as well. The partnership provides an unparalleled opportunity to give back to the health and vitality of our community, by supporting Hoag. The Hoag Classic consists of an internationally televised, professional competition with events throughout the week including the "Community Breakfast", "Legends Pro -Am", "Salute to Service Day" and "the Newport Beach Celebrity Classic". The Hoag Classic prides itself on conducting everything within Newport Beach and strives to be an event the community can be proud of, whether they are golf fans or not. • Road closures • Traffic control • Amplified sound • Parking In 2025 Hoag Charity Sports added the Newport Beach Celebrity Classic to kickoff Hoag Classic Evaluation Criteria (see Special Event Support week, which brought 80 of the biggest names in Program Overview): Sport, Social and Entertainment to town, creating even broader appeal and exposure, highlighting Newport Beach to millions of new fans. In 2025 we welcomed Country Music's, nationally acclaimed duo, LOCASH, who broadcast social posts highlighting their show to hundreds of thousands of fans across the globe while performing in Newport Beach. For decades, we've welcomed 78 PGA Champions for the Hoag Classic benefiting Hoag's world renown Institutes; military, educational, and children's charities. We've built a Newport Beach tradition with measurable and substantive results for the Community, from charitable giving, community awareness, tourism and travel, community participation and involvement, and many others. The Hoag Classic is televised to over 330 million households in 190 countries, highlighting Newport Beach as a desirable place to live, visit, work, and recreate. This exposure provides immeasurable benefits and residually impacts the community all year. The Hoag Classic enhances lives of residents with cultural, social, and educational activities, and attracts visitors from across the region filling hotel rooms, restaurants and businesses, providing an influx of dollars into our economy. A study by Economics Research Associates suggested economic impact on Newport Beach and surrounding communities of almost $30 million. Adding Newport Beach to the Hoag Classic's name, the visibility and impact is greater than ever, further justifying increasing our grant support to be comparable or greater than the largest Newport Beach Signature events. The request for City support must include a list of No other City entities or groups (e.g., City Arts Commission, a Business Improvement District, Library support group, etc.) from which the applicant is seeking financial support. Are you seeking financial support from other City entities? As your organization's representative, please verify the below by checking the corresponding boxes and then type your name in the field • I acknowledge that, if awarded funding, my organization will have to enter into a grant agreement with the City. below. Name: Attach a copy of the complete event budget. Last Update Start Time Finish Time IP Browser Device Referrer • I have read the updated City of Newport Beach Special Event Support Program Overview, including the eligibility, qualification and evaluation criteria. • I acknowledge that submission of this application does not guarantee the event will receive City support. • I have attached a complete event budget showing anticipated revenue and expenses (attach using link below). Note: Your application will be deemed incomplete if a budget is not included with your application. • Grantee shall conduct background checks for all of its volunteers and employees who work with minor children in relation to any project described in Grantee's Grant Proposal. To the extent applicable and if requested, Grantee shall provide the City certification that it has complied with this requirement prior to the receipt of Grant Funds. Scott Easton City_of_Newport_Beach_Special_Event_Grant_ Program_-_Hoag_Classic_Budget_2025.xlsx (69 KB) 2025-04-22 15:49:11 2025-04-22 11:06:06 2025-04-22 15:49:11 Edge Desktop https://fs23.formsite.com/res/formLoginReturn Powered by Formsite