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BACKGROUND On April 25, 2018 the Planning Commission held a public hearing for applications from Rabbi Raleigh Resnick of Chabad of the Tri-Valley (the Chabad) to operate a religious institution with a childcare/preschool, and for site modifications including the installation of a playground and a terrace for outdoor activities. At the conclusion of public comment, the Planning Commission requested additional information and suggested that the applicant conduct additional outreach, including a neighborhood meeting, and continued the hearing. On June 27, 2018, the Planning Commission held the continued public hearing, and after detailed discussion on issues raised by both the applicant, neighbors, and others, approved the project on a 4:1 vote. Two appeals of the project were subsequently filed: 1) by Michael and Darlene Miller, neighbors of the project, based on concerns that the project, as approved, did not adequately address issues of noise and nuisance caused by various outdoor activities and operation of the proposed preschool; and 2) by the applicant, the Chabad, based on a suggestion that the conditions of approval were unduly burdensome, and inconsistent with the federal Religious and Institutionalized Persons Act (RLUIPA). Please see Attachment 2, August 21, 2018 Council Agenda Report, for detailed information related to the Chabad's proposal, the appeals, and the Planning Commission hearings. The City Council heard the appeals on August 21, 2018. On the day of the hearing, the two appellants submitted some additional proposed amendments to the conditions, based on discussions between the two parties, although disagreement on several items still remained. Due to the lateness of the submittal of the new information, and the continued lack of agreement between the appellants, the Council, after hearing public comment, continued the matter to a date uncertain, requesting that staff analyze the proposals and bring back a recommendation for possible revisions to the conditions of approval. Subsequently, a letter was submitted to the City by St. Clare's Episcopal Church, raising concerns about the consistency of the Chabad's proposal with a previously-approved master plan for expansion of the church, among other issues. DISCUSSION This agenda report supplements the August 21, 2018 agenda report. It focuses on the comments and requests for information from the City Council made at the August 21 hearing, including further analysis of the appellants' requested modifications to the proposed conditions, which reflect those included in the Planning Commission's approval. It also addresses the September 2018 comments submitted by St. Clare's Episcopal Church. Appellant-Suggested Modifications to Conditions of Approval The suggested revisions to the Conditions of Approval approved by the Planning Commission and presented to the City Council at the August 21 meeting ("August 21 Conditions" or "Prior Draft Conditions") submitted by the Millers and the Chabad Page 3 of 14