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I thought Texas was supposed to be business friendly.

To me, this letter makes it seem like the police department in Austin works for the public, and not for themselves.

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I don't believe in police departments having a voice like this.

They may point out what they see, but stay clear from going beyond.

This is an announcement by the county sheriff's department, not the police department. The county sheriff is an elected position, not appointed or hired, unlike the police chief. Both the sheriff and the police department have jurisdiction within Austin, TX (AFAIK) but the sheriff's department also has county-wide jurisdiction.
Before Uber and Lyft, it was nearly impossible to catch a cab from downtown to South Austin, since everyone was fighting over the cabs and the cabbies would refuse to drive to South Austin. It was a nightmare.

Those city council members trying to make things difficult for Uber and Lyft need to be tarred and feathered.