City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01387 8/12/2025
Approval of Learning Management System Supplemental Agreement File ID: 2025-01387
Location: Citywide
Recommendation: Pass a Motion authorizing the Interim City Manager, or designee, to execute a Supplemental Agreement with Cornerstone OnDemand, Inc. increasing the Not-to-Exceed (NTE) amount by $311,615 to extend the subscription service for a hosted online learning management system for an additional two years.
Contact: Jennifer Wilkinson, Administrative Officer, (916) 808-5925, [email protected], Human Resources
Presenter: None
Attachments:
1-Description/Analysis
2-Cornerstone OnDemand, Inc. Supplemental Agreement
Description/Analysis
Issue Detail: On August 12, 2024, the City entered into Contract No. 2024-1215 with Cornerstone OnDemand, Inc. (Cornerstone) to continue the Subscription Services Agreement for a hosted online Learning Management System (LMS) known internally as Acumen. This system has supported employee training and development since 2019. A competitive bidding process was not conducted at that time pursuant to Section 3.D.4.b. (Single Source Justification) of the City of Sacramento Professional Services Policy, as selecting a new vendor would have caused significant delays with compliance-based training and resulted in additional implementation costs. Cornerstone’s LMS is fully integrated into the City’s operations; transitioning to a new vendor would require reimplementation, data migration, software configuration, staff retraining, and disrupting essential training programs with incurring substantial cost. The contract was approved with a Not-to-Exceed (NTE) amount of $143,402. To ensure continuity of services, an increase of $311,615 for a two-year extension is needed, bringing the total contract above the $250,000 threshold requiring City Council approval.
The importance of retaining Cornerstone is heightened by the elimination of the City’s Organizational
File ID: 2025-01387 8/12/2025
Development positions in the Fiscal Year 2025/26 budget. As a result, citywide training previously offered through CityYou is no longer available. Cornerstone remains one of the City’s few remaining tools for delivering, tracking, and managing employee training and compliance across departments.
Policy Considerations: Council approval is required to execute agreements for services if the amount to be expended under each such agreement is $250,000 or more. This recommendation is consistent with City Code section 3.56 and in accordance with Professional Services Procurement Policy Section IV.1.C.1.
Economic Impacts: None.
Environmental Considerations: This report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Continuing our partnership with Cornerstone will preserve the City’s investment in training infrastructure and ensure uninterrupted access to a proven system that supports workforce development, compliance, and operational efficiency.
Financial Considerations: At the end of each year Human Resources will charge departments back for the number of users over the previous fiscal year.
Local Business Enterprise (LBE): Cornerstone is not a LBE. LBE participation was waived during the original procurement process in 2019, when Cornerstone (then operating as SumTotal, LLC) was selected. At that time, the majority of qualified vendors were based outside the Sacramento region, including firms located in San Francisco, Southern California, and outside the state of California.
CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------