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1 THIRD AMENDMENT
TO CITY MANAGER EMPLOYMENT AGREEMENT
This Third Amendment to the City M anager Employment Agreement (“Third Amendment”) is entered into on the execution date shown in the signature block below, and effective as of the 1st day of July, 2025 (the “Effective Date”), between the City of Fontana (hereinafter referred to as the “Cit y”) and Matthew C. Ballantyne (hereinafter referred to as “Employee”).
RECITALS
A. Whereas on April 13, 2022, City and Employee entered into that certain City Manager Employment Agr eement to retain the services of Employee as City Manager; and
B. Whereas on September 13, 2022, City and Employ ee entered into a First Amendment to the Agreement (both Agre ement and its amendment s are collectively referred to hereinafter as “Agreement”); and
C. Whereas on Septem ber 12, 2023, City and Empl oyee entered into a Second Amendment to the Agreement ( both Agreement and its amendments are collectively referred to hereinafter as “Agreement”); and
D. Whereas, the City and Employee now wis h to revise specified sections of the Agreement to modify provisions of the Agreement;
NOW THEREFORE, THE PARTIES HERE TO HEREBY AGREE AS FOLLOWS:
1. The first paragraph of Section I of the Agreement, entitled “Employment and Term,” is hereby amended, in its entirety, as follows:
I. Employment and Term.
The City hereby employs the Employee as City Manager for t he City of Fontana.
Unless otherwise extended by mutual agreement of the parties or terminated as provided herein, the term of this Agr eement shall commence on April 18, 2022, and end on April 17, 2030, unless sooner te rminated or extended by the City Council as set forth in the Agreement. In the event that the City Council determines that the Employee is not to be reemployed upon expiration of this Agreement, he shall be given written notice thereof by the City at least six (6) months in advance of the expiration of the term of this agreement. Should the City fail to give notice at least six (6 ) months prior to the end date of this Agreement, the Agreement shall be extended on the same terms for an additional period of one (1) year.
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2 2. The first paragraph of Secti on II of the Agreement, entitled “Salary/CalPERS Retirement,” is hereby amended, in its entirety, as follows:
On July 12, 2025, the City agreed to pay Employee a base annual salary of three hundred eighty three thousand, three hundred twenty dollars and seventy-seven cents ($383,320.77). Employee will continue to receive cost-of living adjustments equal in percentage to, and at the same time as, Executive Group employees. In addition, the City agrees to separately in crease Employee’s salary by an amount equal to the maximum annual employee F SA contribution each year, which is $3,300 for 2025 and $3,400 for 2026. Base salary shall be no less than 5% above the salary of any Department Head including POST Certificate Pay. The City Council shall annually assess Employ ee's performance and salary and may, in its sole and absolute di scretion, grant Employee a merit increase. Any such merit increase must be expressly memo rialized in a subsequent written and executed Amendment to this Agreemen t, approved at a duly-noticed regular meeting of the City Council.
3. Section X of the Agreemen t, entitled “Fringe Benefits,” is hereby amended, in its entirety, as follows:
A. City shall pay to or on behalf of Empl oyee for 125 Cafeteria Plan Fringe Benefits an amount five percent (5%) above provided to the City Department Heads. The City’s payment on behalf of Employee s hall be reduced by an amount equal to the maximum annual employee FSA contri bution each year, which is $3,300 for 2025 and $3,400 for 2026. In a ddition, Employee shall be enrolled in the City's retirement plan pursuant to its contract with the State of California Public Employees Retirement System (CaIPERS) . The appropriate retirement formula that will be applied to the Employee is determined by CaIPERS.
B. City shall pay to or on behalf of Empl oyee for 125 Cafeteria Plan Fringe Benefits an amount five percent (5%) above prov ided to the City Department Heads. In addition, Employee shall be enrolled in the City's retirement plan pursuant to its contract with the State of California Public Employees Retirement System (CalPERS). The appropriate retirement formula that will be applied to the Employee is determined by CalPERS.
C. In addition, Employee shall be prov ided all the fringe benefits which are proportional to those provided to Execut ive Group employees. These benefits may be adjusted by the City for Executive Group employees from time to time and the amounts shall be adjusted propor tionately based on any adjustments in City contributions.
D. The following benefits will be provided in the amounts listed belo w, in lieu of or in addition to, the amount s and benefits listed in th e Executive Management Benefits Schedule:
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3 1. $125 cell phone allowance per month
2. An iPad or laptop
3. Pay for an annual physical at UCI Exec utive Health or equivalent facility
4. $5000 annual contribution to a Re tirement Health Saving Plan (Deposit made May 1, 2022 and every year thereafter on May 1st)
5. Cover Employee's portion of Medicare
4. Section XII of the Agreement, en titled “Annual Leave,” is hereby amended, in its entirety, as follows:
These leave accruals are in addition to recognized City holidays. Employee shall accrue Personal Leave each year during the term of this Agreement at the same rate as Executive Group employees ( beginning at 16 years; 11.385 hours per pay period). Employee shall begin his employment with an annual leave balance of 240 hours. Employee shall be entitled to cash out up to one (1) year of accrued, but unused, personal leave in accordance with the City's policies pertaining to other City employees. No more than 1,200 hours may be carried forward in any fiscal year.
Employee shall begin his em ployment with an Administrative Leave balance of 80 hours and shall accrue 80 hours of Administrative Leave per each subsequent year during the term of th is Agreement. Unused Administrative Leave shall be cashed out on June 30th of each year. T he annual amount of Administrative Leave accrued by the City M anager shall be adjusted to be the same number of days accrued by City Department Heads without the need for a written modification of this Agreement.
5. Section XIV of the Agreemen t, entitled “Longevity Pay,” is hereby amended, in its entirety, as follows:
Employee shall be eligible to receive Longevity Pay consistent with the rates listed in the Executive Management Benefits Sche dule for Executive Group employees hired post July 1, 1990 with continuous service of 10 years or more at $2,250; 15 years or more at $2,750; 20 years or more at $3,250 and 25 years or more at $3,750 based upon t he Employee's anniversary dat e (date of initial hire into a regular full-time pos ition) of April 18, 2022. Longevity will be paid annually in December and will cease upon termination of employment.
6. Continuing Effect of Agreemen t. Except as amended by this Third Amendment, all other pr ovisions of the Agreement remain in full force and effect. From and after the date of this Agreement, whenev er the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Third Amendment.
IN WITNESS WHEREOF, the Parties hav e executed this Third Amendment to City Manager Employment Agreement on the 9th day of December 2025.
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4 CITY MANAGER
__________________________________
Matthew C. Ballantyne, Employee
CITY OF FONTANA
__________________________________
Acquanetta Warren, Mayor
ATTEST:
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Germaine McClellan Key, City Clerk
APPROVED AS TO FORM:
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Ruben Duran, City Attorney