The Mayor and Council shall have the right to deny the application of any applicant who is not a bona fide resident of the city or, in the case of a firm or corporation, is not prepared to establish and maintain a place of business therein, or of any applicant who has been convicted for violation of any of the penal laws of the city or of the state, or of the United States of America. The Mayor and Council shall have the further right to deny any application as to any vehicle therein listed and described, which is not in a safe and sound mechanical condition.
(`83 Code, § 16-106)