At a special meeting of the Invercargill City Council yesterday, councillors voted 8-3 against removing Neil Boniface as deputy mayor.
Cr Boniface abstained from voting.
Mr Shadbolt said at the meeting's conclusion, "As far as I am concerned that is the end of it."
But one councillor, who declined to be named, told the Otago Daily Times, "You can get rid of the boil, but the pus still remains."
Before the start of the meeting, Cr Boniface told the ODT he had not heard from the mayor since Mr Shadbolt left on a council-funded overseas trip to Norway last month.
He said he was "nervous" about his fate.
Mr Shadbolt's trip to Norway was followed by a privately funded holiday in Europe.
Shortly after 3pm yesterday, Mr Shadbolt strode to his position at the front of the council chamber in front of waiting media and a large public gallery which included Suzanne Prentice, who is being tipped to run against the mayor in next year's election.
Mr Shadbolt introduced local government legal specialist Jonathan Salter, of Simpson Grierson, who advised councillors to keep an open mind.
However, it was Mr Shadbolt who overruled questions posed to the council, including those from Cr Norman Elder, a solicitor, who likened the meeting to an "inquisition".
Debate centred around Cr Boniface taking three days to inform the mayor, who was at the time in Mongolia, about a drink-driving incident involving council chief executive Richard King, a move which raised the mayor's ire and led to the current stoush.
Mr King was not at yesterday's meeting.
Cr Boniface said in the 11 years he had served as deputy mayor he had never received a call from the mayor informing him he would be out of the city.
When an ashen-faced Mr Shadbolt replied he was more interested in getting to the bottom of the issue, people in the public gallery yelled out "Shame".
Later, Cr Boniface urged the council to get on "for the sake of the city", a comment greeted with rapturous applause from the public gallery.
However, Cr Lindsay Abbott said the deputy mayor should have honoured a handshake agreement to vacate in favour of Cr Geoff Piercy.
Cr Piercy later turned down the offer.
That comment prompted Cr Boniface to leave the room for less than a minute to wipe away tears.
Mr Shadbolt said the council had faced tough issues before, but "as mayor of this city the most critical one is drinking and driving", and he needed to be told sooner about Mr King's accident.
Mr Shadbolt said he had lost confidence in his deputy as a result.
Several councillors spoke openly against the mayor's handling of the issue.
Cr Piercy said to Mr Shadbolt, "I didn't write Bullshit and Jellybeans . . . you did," and claimed the mayor had led the city into disrepute.
Cr Alan Dennis said the actions of the mayor made it hard to support him and members of the public were questioning his dedication.
Cr Graham Sycamore reminded the mayor he was leading a team, and the word had no "I" in it.
It appeared the mayor's heart was no longer in the job, he said.
The council voted 8-3 in favour of Cr Boniface retaining his position.
Mr Shadbolt, Cr Abbott and Cr Wayne Harpur voted for him to be replaced.
In a meeting that immediately followed, Mr Shadbolt attempted to restructure the council's directorships and chairmanships by replacing Cr Piercy as the works and services committee chairman.
He said there was growing dissatisfaction between the "haves and the have nots" on council, but agreed to delay any decision until the council met for a proposed workshop.
At the conclusion of both meetings, Mr Shadbolt and Cr Boniface shook hands, saying they would be able to work together.
Mr Shadbolt could not be contacted last night.
