I got those steep cliff, narrow road, tight turns by accident once. was driving from Kapfenberg (a small but nice enough city) to a tiny village called Pöllau. The Alps, even in summer and during the day can make you feel queasy, let me tell you. Should've taken the long way 'round instead of the shortest...

anyways, Graz and Salzburg lie at the edge, and Innsbruck basically right within the alps. I'm not sure how big your city should be, but Innsbruck has about 100,000 people.