§ 6-4. Purchase and sales records.

(a)

Every licensee shall keep and preserve records of all alcoholic beverages purchased and sold or otherwise dispensed by the licensee. All consumption on the premises licensees shall also keep and preserve records of all purchases, revenue, and sales of the licensed establishment, including records of all cover charges, merchandise, and food and nonalcoholic beverages purchased and sold or otherwise dispensed by them. Such records shall be open for inspection by the city manager or the city manager's designee between 9:00 a.m. and 5:00 p.m. on any day that the establishment is open for business. These records shall be maintained for a period of at least three years unless the city manager, upon approval by mayor and council, authorizes the disposal of records prior to the expiration of three years.

(b)

If the city manager or his or her designee intends to inspect or to conduct an audit of the purchase, revenue, and sales records of a licensee, he shall notify the licensee in writing directed to the licensee's most-recent mailing address or email address on file with the office of the city clerk, or posted at the public entrance to the licensee's business location.

(1)

A written notice may direct the licensee to provide specified records to the city manager or designee not less than ten days after the date of the notice. A written notice may specify the date, time, and place of an audit to be conducted by the city manager or his designee not less than 14 days from the date of the notice.

(2)

A licensee must produce records as they are kept in the normal course of business or must organize and label them to correspond to categories in the city manager's written notice. If a request does not specify a form for producing electronically stored information, a party must produce it in a form or forms in which it is ordinarily maintained or in a reasonably usable form or forms.

(3)

The city manager may designate the city's finance director or other person to perform the audit.

(4)

If the licensee fails to provide the specified records in the manner set forth in the written notice, the city manager shall inform the city clerk, who may issue a written notice of intent to suspend or revoke the licensee's license(s).

(c)

For the purpose of ensuring compliance with consumption on the premises percentage of sales requirements:

(1)

The licensee of each such establishment shall furnish at the time of any renewal application an affidavit which reports the percentage of the licensee's total revenue derived from the sale of food prepared and consumed on the premises and nonalcoholic beverages consumed on the premises in the licensee's last three completed calendar quarters; and

(2)

The city manager may require that a licensee furnish an affidavit which reports the percentage of the licensee's quarterly total revenue derived from the sale of food prepared and consumed on the premises and nonalcoholic beverages consumed on the premises in the licensee's most recently ended calendar quarter. Such affidavits, when required by the city manager, are due by the 15th day of the month immediately following each calendar quarter; and

(3)

The city manager may require that a licensee furnish an affidavit from a certified public accountant which certifies any information supplied pursuant to subsections (c)(1) or (c)(2). Such affidavits, when required by the city manager, are due by the last day of the month immediately following the reporting period; and

(4)

Any licensed establishment that fails to meet the appropriate percentage requirements for two consecutive calendar quarters or annually shall be subject to license revocation proceedings.

(Code 1982, § 9-2-9; Ord. No. 641, pt. I, 4-17-12; Ord. No. 658, pt. I, 10-15-13; Ord. No. 754 , pt. III, 10-16-18)

Note— Formerly entitled "Audits".