The Mayor, Alderman Hilary McClintock, apologised on behalf of the council to the family of the late Jack Glenn after a 'Camp Jacko' sign under the Foyle Bridge was whitewashed without their permission.
Members of the Glenn family packed the public gallery during Derry City and Strabane District Council's monthly meeting on Thursday.
The Mayor raised the matter after the memorial was removed in line with World Health Organisation suicide prevention guidelines.
Councillors from across the spectrum said the removal of the sign without consultation with the family was 'insensitive'.
The council requested officers conduct a review of what happened and report back at a later date.