Upon receipt of the recommendations of the planning commission, the city council shall review the precise plan. If it finds that the plan complies with all of the provisions of the zoning code, the scenic highway overlay zone and the purpose and intent of said zone, it may approve the plan, or approve it with such conditions as necessary to protect the public peace, safety and welfare and to minimize the impact of the development and/or improvement upon the scenic corridor(s). In all other cases, it shall disapprove the plan.