470 Regular meeting of the City Council Austin Texas April 15, 1901 Hon Jno. A. McCall Mayor presiding. Roll Called Present Aldermen Gillis, Dow, Wirtz, Scurlock, Shelley, Shumate and Sheriff. Absent None. On motion of Alderman Shelley the minutes were approved as recorded by the clerk without reading. Alderman Shumate moved that the regular order of business be suspended and that the newly elected Mayor be installed, which motion prevailed. Alderman Wirtz moved that a Committee of three be appointed to wait upon Mayor elect White & conduct him to the Council chamber, which motion prevailed and the Mayor appointed Aldermen Wirtz, Shelley, Shumate as such Committee. The Committee retired and returned with and presented Mayor elect White, to whom the oath of office was administered by retiring Mayor McCall. Mayor White then delivered the following address: Address of No man ever appreciated more keenly the honor conferred new Mayor upon him than I do the trust recently reposed upon me by the Voters of Austin. I am persuaded to believe, Gentlemen, that I can rely upon and know that you are mine at all times I shall consult with you about the management of the affairs of this City and I sincerely hope that you will render me every assistance in your power. We have much to do in fact a greater responsibility never fell upon the shoulders of a Mayor and Board of Aldermen than now rests upon ours whatever we do, let us work together! let us have harmony! let us serve Austin to the utmost of our abilities and meet the expectations of her people, & thank you The mayor laid before the council the following Message. -- Mayor's Office -- Austin, Texas, April 15th, 1901 To the Honorable City Council:- The financial condition of the City is such Special as to claim the most serious attention and best energies Message of of all of her servants. Mayor The total outstanding bonded indebtedness of the City is $1,636,000. of this amount $325,000. bears interest at the rate of 6% per annum; and the remainder, viz, $1,311,000. bears interest at the rate of 5% per annum. The total annual interest charge against the revenues of the City is therefore $85,050. The Constitution of the State and the Charter of the City require, that there shall be annually raised in addition to this interest for our bonds, a Sinking fund of 2% --- Page break --- least 2% with which to pay off the bonds at maturity. The total annual charges against the revenues of the City for sinking fund purposes is, therefore, $32,720. It will thus be seen that the property of our people is burdened, not only with the obligation of annually contributing to the City Treasury the necessary revenues to pay the operating expenses of the City government through out its various departments and the operating expenses of our public schools, but also, if our bonded indebtedness is to be met according to the legal tenor and effect of those obligations with $11,770. additional. The total valuation of property within the City as shown by its latest assessments roll is $8,831,837. The total annual taxing power of the City is limited by its Charter and the State Constitution to 2½ % ad valorem. Of this total taxing power, 1½ %, is, or may be, appropriated to general revenue and school purposes; thus leaving a taxing power of 1% which the City is obligated to exercise for the purpose of raising revenue to pay interest and sinking fund on its bonded indebtedness. A tax levy of 1% on property values, as at present fixed, would, if fully collected, net $88,318.37. Deducting from this sum $32,720., required to be set aside as sinking fund, there would remain to be applied to bond interest $55,598.37. It is clearly to be seen from these figures that the City is over bonded and that no adjustment of our debt must be had. We are now responsible for this condition of affairs. It was caused by the disaster of April 21st which resulted in the partial des- truction of our water, light and power plant, and in a general depreciation of our property values. The most threatening danger in the financial situation, as I see it, is at still greater depreciation of our property values. Such a depreciation will inevitably result, if our bonded indebtedness is not settled and settled on a basis which will permit our people to live and prosper. I assume that the holders of our securities can be made to see this, and also that they can be made to see if indeed they do not already realize the fact, that it is to their direct pecuniary interest as well as ours, that there should be no further depreciation in our property values. These values are in legal effect mortgaged to secure the payment of our bonded indebtedness. Any policy which impairs either the values to secure, or which lowers rather the values of our securities, our creditors must, therefore, be entitled --- Page break --- 472. in assisting us to maintain our property values. Policies pursued in the past, probably, have impressed upon our creditors the idea that this City is unwilling to pay even such portions of its debt as it is able to pay. It should be the first care of this administration to remove this impression; and I recommend the following measures as calculated to bring about the desired end, viz: (1) There is now in the City Treasury to the credit of the interest fund of our Water and Light Bonds, $2042.43. This money was collected from our tax-payers for the purpose of paying int. upon our Water & Light Bonds. It belongs to the holders of these bonds. No good purpose can be subserved by withholding it from the persons to whom it properly belongs. It should be promptly appropriated to the purpose for which it was collected. (2) There was levied for the year 1899 a tax to pay interest and sinking fund on our Water & Light Bonds. Of $62,664.07 had been collected under this levy, the levy was repealed, leaving uncollected a balance of $61,108.85 Fairness to our tax payers who have paid their part of this tax, as well as justice to our creditors, demands that the uncollected balance due on this levy should be promptly collected and turned over to the persons, to whom it belongs. In order to bring about this result, the ordinance purporting to repeal this tax levy should be itself repealed at the earliest practicable moment, and the remainder of the tax collected. (3) When the above measures shall have been enacted and executed in good faith it is to be hoped that our creditors will be convinced that this City intends to pay to them every dollar that she is liable to pay and every dollar that they can, with due regard to their own pecuniary interests, insist on her paying. Ample authority has been conferred upon the City in the new Charter just enacted to issue refunding bonds; use should be made of this power to bring about an adjustment of our entire bonded indebtedness; and the new law for the purpose of paying interest on bonds should not be voluntarily made while a basis for adjustment is mutually agreed upon between representatives of the City and representatives of her creditors. I suggest that a special committee be created, and instructed to correspond with the holders of our bonds with a view of bringing about such a conference. If the compromise is possible to make. --- Page break --- the conference desired, then & suggest. that the necessary ordinance be enacted to provide for the issuance of refunding bonds of the City in such amounts and at such rates of interest as you will be able to pay: that these refunding bonds be offered to such of our creditors as may be willing to accept them in lieu of bonds already held: that the necessary tax levies be made to provide interest and sinking fund for all re-funding bonds, issued, and accepted by our creditors; and in case any of said creditors shall re fuse to confer with us, for we are unable to agree with such creditor as to the basis of re funding any of such bonds, then I will communicate to the Council my views as to the proper policy to adopt in dealing with such creditors. It is highly desirable that our creditors should be consulted before these refunding bonds are issued; and nothing but a refusal on their part to recognize the fact that we are entitled to relief in our present difficulties and a refusal to consult with us on this subject and justify us in providing for the issuance of such bonds, without their concurrence. The people of this City have by their votes in the last election emphatically and pointedly declared to the world that they do not desire, and will not permit a policy of voluntary repudiation of their municipal debts! They have by their verdict, condemed the policy of every official who, during the past two years has with-held from our creditors money which was due and which the City was able to pay. In formulating our future financial policy we should bear in mind this verdict, of our people so recently returned, and should exhaust every effort to reach an amicable, just and reasonable settlement with our creditors before allowing ourselves to be drawn into hostile litigation with them. I believe that the policy with reference to our bonded indebtedness as above outlined and recommended to you, accords with the views of our people; and that, if adopted and carried out, it will relieve us in the eyes of the world, and in our own consciences, from all moral responsibility for a contest with our creditors if such contest comes. The present status of litigation between the City and the Receiver of the Austin Water, Light & Power Company presents a problem for your solution, of importance second only to the bond question above discussed. --- Page break --- 474 In the years 1882 there was executed a contract between the City of Austin and the City Water Company, by the terms of which the City undertook to take water from that company for a period of 20 years from the date of the contract, for fire purposes, that is, for water for public purposes, sales at rates fixed in the contract. After the execution of this contract the charter of the City Water Company was forfeited by judicial proceedings instituted in the name of the State. The Austin Water Light and Power Company, claiming to be the successor to the rights of the City Water Company, including its right to furnish this City with water for public purposes, has, through its Receiver, instituted various suits against the City for water alleged to have been tendered the City, under that Contract. The City has contested the claims of the Austin Water Light and Power Company on the theory that it has no Contract with that Company and is, consequently, under no obligation to pay for water tendered. A recent decision by the Federal Circuit Court of Appeals in the case of Joseph L. Mulle, Receiver, vs. The City of Austin, Texas affirms the invalidity of the contract, alleged to exist between The Austin Water Light and Power Company and the City and sustains a judgment formerly recovered by such Receiver against the City for approximately $40.000, on account of hydrant rentals. The attorneys representing the City will attempt to bring this judgement of the Circuit Court of Appeals before the Supreme Court of the United States for review on a writ of Certiorari. The application for the writ will be at once made; and it is hoped that it will be passed upon during the present term of Court which ends in May next. The wisdom of the original policy which placed the City in a position where it might be compelled to pay water rentals for a long series of years, for water which it never received, is more than doubtful to my mind. If, from the inception of this controversy with the Austin Water Light and Power Company, the City had affirmed the validity of its alleged contract, and had expected from the company a rigid compliance with its alleged obligation to furnish the City with water for public purposes, including adequate fire pressure, I think that the controversy would have ere now ceased. It is not necessary, however to discuss the wisdom or unwisdom, of the policy actually decided upon in the past, except as it may prove of use, in hurrying the proper policy to be pursued and executed in the matter. I recommend in this connection that pending litigation be prosecuted with all possible expedition. --- Page break --- 475 dispatch, and, that if this termination result adversely to the claims of the City, the Austin Water, Light and Power Company and its Receiver, be advised at once that the City will, in the future, receive and pay for water tendered under the contract, but will, in turn, require a full and complete observance on the part of the Company of all of the contract, including those terms which specify the character of fire forces to be furnished The City Water and Light Plant Our people are to be congratulated on the energy and dispatch with which the Water, Light, and Power Commission of the City set about repairing the City's plant after the disaster of April last. The management and control of this plant is by law vested in the Commission of which the Mayor is exofficio a member. It is proper, by the way, that many recommendations which I have to make with reference to the future management of the plant, should be addressed to the Commission, and be omitted from this message to the Council. But, as general control of our finances is, by law, entrusted to the Council, and as a successful operation of our Water and Light plant must directly affect the general financial condition of the City Government, for the better, it is not improper for me to say here, that I think the proper policy to be followed by the Commission in the management of the plant, is that one which will as soon as practicable place the plant on a self sustaining basis and that, under no circumstances, should the expense of operating the plant be allowed to become a charge upon the City Treasury longer than can be helped. If, however, it should become evident that, additional funds from the Treasury must be appropriated in order to equip the plant with machinery necessary to enable it to finally operate on a self sus- taining basis, I think that we should not hesitate to make such appropriation. The new City Charter, which was enacted by the present Legislature, contains no change radically affecting the interests of the City, ... unless it be that, provisions restricting the Corporate boundaries. The regulatory history of the new Charter, was written by the City, who has already issued a large number of water and light bonds, I think was proper, by charging with the prorate share of this fundamental bond. --- Page break --- 476 To disregard this fact in making future tax levies might endanger the collection of taxes on all property within our present limits. I therefore recom- mend that such taxes as may be levied in the future for the purpose of paying interest and principal on Water and Light Bonds, or on refunded Bonds issued in lieu of Water and Light Bonds, be assessed by proper authority without regard to the attempted restriction of our territorial limits, so as to collect from the excluded territory its pro rata share of such taxes. In conclusion I desire to say to the Council that I keenly appreciate the responsibility which rests on me as Mayor of the City during the time of her present difficulties and that I also appreciate the fact that each member of the Council is by law burdened with part of the same responsibility. The suggestions of policies above set forth are intended as suggestions merely. My official position carries with it the duty of advising you in this matter as to the condition of the City, and as to my opinion of the policies which should be followed. No Policy has been recommended to you which does not recommend itself to my best judgement after careful consideration. I earnestly invite each member of the Council to discuss with me at any time desired, any question which may arise in his mind as to the propriety of any of the policies recommended, or as to the propriety of any other policies which may suggest themselves to him, and take this occasion to assure each of you that I stand ready to adopt any new suggestion in lieu of any here when ever it shall be made apparent to my judgment that such new suggestions will, if adopted, better serve the interests of the City. C. E. White Mayor On motion of Alderman Nitschke the message was ordered printed in the minutes. The Mayor announced the following temporary Standing Committees. Water & Light: --- Orr, Shinmate & SchneiderSewerage: Nitschke, Shinmate & Sheeley Streets: Sheeley, Shinmate & Schneider Parks: Nitschke, Shinmate & Orr Fire Dept: Slumpf, Schneider & Giles Police: Sheeley, Slumpf & Wells --- Page break --- 477 Ordinances – Stumpf & Shelley & Low. Claims & Accounts – Schneider Shelley & Low. Printing – Gillis Low & Schneider Cemetery – Stumpf & Shelley & Schneider Market – Gillis Shelley & Low Sanitary & Sewerage – Schneider, Gillis & Low Hospital – Gillis & Shumate & Low Charity – Stumpf Gillis & Low Purchases – Shumate Stumpf & Schneider The Special Committee appointed to investigate and report upon the Bonds of the newly elected City Officers, presented a report stating that. they had examined the bonds of the City Engineer Also office Street Commissioner, that of the City Treasurer, that of the Marshall, and of the Assessor & Collector of taxes, and recommending that they be accepted and approved. On motion the report of the Committee was adopted and the bonds approved by the Council The City Marshal and City attorney were then sworn in by the Mayor. Ald. Shelley Alderman Shelley then presented to Marshal Montgomery Montgomery a badge which he had been requested presente badge by the friends of the Marshal to present. Ald. Shelley Alderman Shelley moved that the Council now election proceed to the election of the following named Subordinate Subordinate officers viz– Pound Master Sanitary Inspector Bridge Keeper Matron of the Hospital Sexton and Porter which motion prevailed by the following Vote Ayes – Alderman Gillis, Low Mitchke Shelley & Shumate – 5 Nays – Alderman Schneider & Stumpf – 2 Ald. Schneider & Stumpf The Mayor declared nominations in order for Pound Master. Alderman Shelley nominated A. J. Corwin Alderman Stumpf nominated Jno Lansing The Mayor placed be fore the Council the petitions of J. L. Baumhill. J. E. Williams Rufus O. Orr street. Jno O’Arr W. J. Ince C. H. Goebel and Gulbreath --- Page break --- 478 The Mayor appointed Alderman Netchke, Paw and Schneider as Tellers. The Tellers announced the following as the result of the first ballot. Corvin 4 Fleming 1 Haddock 1 Jaumanhice 1 (A. J. Corvin having received a majority of all the votes cast was declared elected Pound Master for the ensuing year Nominations for Sanitary Inspector being declared in order Alderman Gillis nominated J. D. Schneider " Reilly " Johnson " Netchke " Joseph Shuber & Wm. Ohm " Heufert " Mr. Wesch The Tellers announced the following as the result of the first ballot Schneider 2 Johnson 2 Shuber 2 Wesch 1 No Election The following was announced as the result of the second ballot Schneider 2 Johnson 2 Kane 2 Wesch 1 no election The Tellers announced the following as the result of the third ballot Schneider 4 Kane 2 Johnson 1 J. D. Schneider having Received a majority of all the votes cast was declared duly elected Sanitary Inspector for the ensuing year The Mayor announced that nominations were in order for Bridge Keeper. Alderman Gillis nominated Fred Malone. Alderman Netchke moved that nominations close and that the Clerk be directed to cast the entire vote for of the Council for Fred Malone (the Clerk cast 7 votes for Fred Malone for Bridge Keeper. And the Mayor declared him duly elected Bridge Keeper for the ensuing year --- Page break --- Nominations for Matron of the City & County Hospital being declared in order Alderman Schneider nominated Mrs Prudence Hamilton. On motion of Alderman Mitschke the Clerk was instructed to cast the entire vote of the Council for Mrs Prudence Hamilton for Matron of the City And County Hospital The Mayor declared Mrs Prudence Hamilton duly elected as matron of the City and County Hospital for the ensuing year Nominations being announced in order for City Sexton Alderman Schneider nominated W. L. Mitschke and on motion nominations were closed and the Clerk instructed to cast the vote of the Council for W. L. Mitschke which was done and the Mayor announced that W. L. Mitschke had been duly elected City Sexton for the ensuing year The Mayor announced that nominations for Porter at the City Hall were now in order. Alderman Sheley nominated Mr H. H. Harrison " " Stempf " " John Johnson (Col'd) " " Mitschke " " Hamilton (') The Mayor laid before the Council petitions from the following named persons. " " Geo. A. Beek " " James Rambo " " Henry Keyo " " C. Estell " " Geo Price " " Harrison Taylor The Tellers announced the following as the results of the first ballot Keyo 1 Estell 1 Johnson 3 Hamilton 1 Harrison 1 No Election and a new ballot ordered which resulted as follows Harrison 4 Johnson 2 Beek 1 The Mayor declared H. H. Harrison duly elected Porter for the City Hall for the ensuing term Alderman Sheley moved that the City Marshal be requested to submit his list of appointments as Police men to the [illegible] --- Page break --- 480 Alderman Nitschke moved that the number of Police men be fixed at 12, with day and night clerks to have the same salaries as now paid to public market preceptor. The marshal submitted the following list of appointments, VizJ. M. Durst - Day Clerk W.B. Russell - Night Clerk Police men H. H. Owens, John Brackin, James Patterson, W. O. Jones, S. B. Lane, O. H. Gibson, Jona Pierce, W. M. Tears, E. C. Tidwell Monroe Savoy, Frank Tannihill, C. W. BustinThe following was the result of the ballot for Confirmation J. M. Durst 1 W. B. Russell 7 H. H. Owens 6 Jno Brackin 6 James Patterson 7 W. O. Jones 7 S. B. Lane 7 O. H. Gibson 7 Jona Pierce 7 W. M. Tears 7 E. C. Tidwell 6 Monroe Savoy 7 Frank Tannihill 7 C. W. Bustin 7 The nominations of J. M. Durst and W. B. Russell not having been confirmed, the Marshal was instructed to submit other nominations for the positions of Day Clerk & Night Clerk. The Marshal submitted the names of Jno McNamara for Day Clerk W. A. Cato for Night Clerk The nominations were confirmed, McNamara 7 votes & Cato 6 - The Mayor announced the following named persons as the Police force for the ensuing year - John McNamara - Day Clerk W. A. Cato - Night Clerk Police men - H. H. Owens, John Brackin, James Patterson, W. O. Jones S. B. Lane, O. H. Gibson, Jona Pierce, W. M. Tears, E. C. Tidwell Monroe Savoy, Frank Tannihill and C. W. BustinPetitions, Memorials etc By the Mayor Petitions of Mrs. H. H. Sutton to have a certain amount paid out by her for repairing side walks & cross-walks by the City. --- Page break --- 481 Read and referred to the Street Committee By the Mayor - Partition of Geo. Clary to erect a Candy Stand on 6th Street. Read and referred to the Police Committee ReportsThe Mayor laid before the Council the reports of the City Treasurer for the month of March 1901, which was on motion, referred to the Finance Committee without reading. New Business - Alderman Mitschke moved that the City Clerk be directed to procure from the Secretary of State a certified copy of the City Charter as amended by the last Legislature which motion prevailedAlderman Shelley offered the following Resolution which was read & did adopted. By it resolved by the City Council of the City of Austin; That the outgoing City Treasurer, Miles F. Payne be authorized to turn over to H. P. Hilliard the City Treasurer elect and qualified all moneys now in his hands except such as is subject to the order of the Water and Light Commission, which same shall be advised by the Water and Light Commission that said Hilliard has filed with them his bondAlderman Stumpf an ordinance appropriating 481. 21. Treas. - the sum of $2486.21 to pay the salaries of officers and employees Salaries of of the City for the month of April 1901. Emp. all. – The ordinance was read the first time, and on motion the rule was suspended, and the ordinance placed on its second reading by the following voteYeas, Aldermen Geis, Law, Mitschke, Schneider, Shelley Shumate and Stumpf - 7 Nays - none The ordinance was read the second time. Alderman Shelley moved to amend the ordinance Amended by striking out $2486.21 and inserting in lieu thereof $2606.21, which motion prevailed - The ordinance as amended was then passed under suspension of the rule by the following vote. Yeas Aldermen Geis, Law, Mitschke, Schneider, Shelley, Shumate, and Stumpf 7 Nays - none. By Alderman Stumpf. An ordinance ap propriating the sum of $520.00 to pay salaries of employees (auxiliary dept Clerk) for the month of April. The ordinance was passed under suspension of rules by the following vote. Yeas Aldermen Geis, Law, Mitschke, Schneider. --- Page break --- 482 Shelley Shumate and Stumpf Nays - none 7 By Alderman Stumpf - an ordinance appropriating the sum of $120.00 to pay the salaries of drivers of Street teams for the month of April 1908. The ordinance was passed under suspension of the rules by the following voteYeas, Alderman, Gefies, Low, Nitschke, Schneider, Shelley Shumate and Stumpf - 7 Nays - none By Alderman Stumpf - an ordinance appro- priating the sum of $75.00 to pay the salary of Engineer for Steam Roller for the month of April 1908. The ordinance was passed under the suspension of the rules by the following voteYeas, Alderman Gefies, Low, Nitschke, Schneider, Shelley, Shumate and Stumpf - 7 Nays - none ordinance Election for Aldermen By Alderman Stumpf - an ordinance ordering an election for the purpose of electing an alderman from each of the wards of the CityThe ordinance was read the first time and on motion the rule was suspended and the ordinance placed on its second reading. Which motion prevailed by the following voteYeas Alderman, Gefies, Low, Nitschke, Schneider, Shelley, Shumate and Stumpf - 7 Nays - none Amended The ordinance was read the second time Alderman Nitschke moved to amend by striking out the words "Tuesday 30th day of April" and inserting in lieu thereof the words "Saturday May 4th" which motion prevailedAlderman Shelley moved that the blanks in the ordinance as to the places of holding the election and the judges for each of the wards be filled by the alderman from each of the wards, which motion prevailed and the blanks filled. Amended The ordinance was then passed under suspension of the rules by the following voteYeas Alderman, Gefies, Low, Nitschke, Schneider, Shelley, Shumate and Stumpf - 7 Nays - none. By Alderman Shumate - an ordinance prescribing and defining what shall constitute a day's work on all public works of the City of Alton. The ordinance was read the first time and on motion was referred to the ordinance Committee. --- Page break --- The Mayor laid before the Council a communication from the Water and Light Commission asking payment of amount due by the City for Water and Light furnished for public purposes On Motion the communication was referred to the Water and Light Committee. The Mayor laid before the Council a communication from M. J. Swain offering bonds for the Sinking fund The communication was read and on motion was referred to the finance Committee The Mayor laid before the Council a communication from East Austin Hose Co No 4 - inviting the Mayor and Council to entertainment to be given by them. On motion the invitation was accepted, with the thanks of the Council. The Mayor laid before the Council a communication from the Chief and Recorder of the Austin Fire Department inviting the Mayor and City Council to attend the installation of officers of the department and an entertainment and pie nic to be given on Monday, April, 22nd 1901 On motion the invitation was accepted and the thanks of the Council returned Cmt to canvass Alderman Schneider moved that a Committee returns be appointed to canvass the returns of an election officers held in March for officers of the Austin Fire Department dept which motion prevailed. And the mayor appointed Alderman, Shumate, Low and Willis as the Committee Cmt to Canvass Alderman Mtoschke moved that a Committee be appointed returns vote to canvass the returns of an election held March 11th 1901 For School to obtain the contest of the property tax paying votes of the tax City to the levy of an additional school tax of 16²/₃ $on $100⁰⁰ worth of property The motion prevailed and the mayor appointed Alderman Stumpf, Schneider and Mtoschke as the Committee The Committee appointed to canvass the vote of the election held March 11th 1901 to obtain the consent of ²/₃ rds of the tax paying qualified voters of the City to the levy of an additional school tax of 16²/₃ rd cents on each $100⁰⁰ worth of property presented a report that the returns showed that there were 379 votes cast in favor and 245 votes against the propositions. Not Having received a ²/₃ rds. majority the Mayor declared the proposition defeated. The Committee appointed to canvass the vote cast at an election held in March 1901 for officers of U. Fire Department be directed to --- Page break --- 484 report showing the following to be the vote: cast For Chief Fire Department F. J. Macken 196 votes H. H. Woodward 171 " Macken's Majority 25 " For Asst. Chief Fire Department. W. H. Bonte 199 votes J. B. Mischke 169 " Bonte's majority 30 " For Recorder Fire Department M. S. Druce 201 votes O. Z. Miller 167 " Druce's majority 34 " The Mayor declared F. J. Macken elected as Chief and W. H. Bonte Asst Chief and M. S. Druce Recorder of the Austin Fire Department, for the ensuing year On motion the Council adjourned Geo. J. Johnson City Clerk