No license shall be granted hereunder until there has been an investigation of all applicants. After investigation, the applications will be forwarded to the mayor and city council with a recommendation from the chief of police. If the chief of police recommends that an application be denied, he shall state, in writing:
A. The statutes or ordinances and standards used in evaluating the application.
B. The reason for the denial.
C. The action, if any, that the applicant could take to obtain the license, transfer or renewal thereof. (1993 Code)