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agreement of City. The costs thereof shall not be considered as <br /> capital expenses and shall not be funded from the basic connection fee. <br /> The $50,000 limit referred to in this section shall be updated annually <br /> in accordance with the most current EPA Construction Cost Index for <br /> Sewage Plant Construction, San Francisco Bay Area. <br /> SECTION 14. FINANCES. <br /> 1. Connection Fees. <br /> From and after the effective date of this Agreement, a basic <br /> connection fee, or equivalent charge for sewerage services shall be <br /> levied and collected in the total service area of the District's Plant <br /> pursuant to this section and subject to the limitations contained in <br /> paragraph 3.b. following. Nothing contained herein shall preclude either <br /> party from levying or retaining an additional, or surcharge, fee over <br /> the basic connection fee for properties developing within areas served <br /> by their respective sewage collection systems. <br /> a. The basic connection fee for similar uses shall be uniform <br /> throughout the combined service area identified in Section 6. <br /> b. Funds derived from the basic connection fee, or any accumula- <br /> tions thereof, shall be used only for planning, design and construction <br /> of facilities necessary to increase plant capacity; or for modifications, <br /> improvements, additions and replacements in accordance with the pro- <br /> visions of Section 13. <br /> c. District, in consultation with City, shall determine the <br /> dollar amount of the basic connection fee based upon the anticipated <br /> future needs of the parties. <br /> d. City shall collect the basic connection fee for projects <br /> developing in the combined service area served by City's sewage <br /> -20- <br />