The City Council shall take action on the application within 60 days after receiving the report of the Planning Commission. In determining whether or not to allow the conditional use, the Council shall consider the nature of the adjoining land or buildings, the effect upon traffic, whether similar uses are in existence on nearby premises and such other factors as the Council deems appropriate, including the recommendations of the Planning Commission. If it grants the conditional use permit, the City Council may impose any special conditions it considers necessary to protect the public's health, safety and welfare. If the permit is denied the Council shall advise the applicant of the reasons within 10 days of the date of decision. No use shall be allowed which is not compatible for the zone in question.