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May 27, 2008 Page 6 of 7 variances in the 2007 budget. Steve Wischman, representnig Kern DeWenter V ere auditing firm reported the City of New Brighton received a "clean, unqualified" rating. Mayor Larson expressed his gratitude to the entire finance department for a "great job." Motion by Councilmember Burg, seconded by Councilmember Phillips to accept the Comprehensive Annual Financial Report for the year ending December 31, 2007, and the auditors, Management Letter and their Reports on Compliance with Government Auditing Standards and Legal Compliance. 4 Ayes -0 Nays, Motion Carried 7. Consideration ofresolution removing John Kauflrold from the Economic Development Commission and Civil Service Commission. Report No. 08-157 (*Moved from the Consent agenda.) Councilmember Burg moved the itern to Council Business to report that she was not part of any conversation regarding the possible removal of Mr. Kaufhold from either of the commissions he serves on. Councilmember Bauman reported that (in her opinion) Mr. Kau$rold violated a requirernent of a commission member through Ins conduct. The violation of conduct is related to a memo written by Mr. Kaufinold with negative personal attacks towards a couple of Councihnembers. Councilmember Bauman reported that her attempts to speak with Mr. Kaulhold were unsuccessful. Councilmember Burg's primary concern is the process in which the resolution was produced Councihnember Phillips stated that Mr. Kaufhold has been asked to apologize for his continents. He has been unwilling to apologize. Therefore he was asked to resign from his commission seats and has been unwilling to do so. Mr. Lotter reported that he had a conversation with Mr. Kauflnold, and attempts to convince him to contact Ms Barman were unsuccessful. Councilmember Burg reported she cannot support this item because ofthe course of action that has followed Councilmember Bauman stated she is in support ofremoving Mr. Kauflrold based on his conduct as a commissioner. CouncihnemberPhillips reported he will bring the memo to the next council meeting, and allow an opportunity for Mr. Kaufhold to represent himself. Motion by Mayor Larson, seconded by Councilmember Bauman to table the item 2 Ayes -2 Nays, No Action taken. Mayor Larson recommended everyone should have had access to all mails related to this issue. Motion by Councthnember Burg, seconded by Councilmember Bauman to approve the resolution removing John Kauthold from both the Economic Development Commission and the Civil Service commission. 2 Ayes -2 Nays, No action taken. Ayes: Councihnember Bauman and Philips 7. Cm%daatiarofxwhmon n3novingJohn Km ffiWBan uwEom«nicl)m6M t Cmmtissionand CiASa w RepatNo.08-157. ("MotcdSuni &Ca t AM&)