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<br />3.7 <br /> <br />Direct costs shall include, but not be limited <br /> <br />to: <br /> <br />a) <br /> <br />the labor cost of LCRA employees when such <br /> <br />labor is performed specifically to benefit CITY's SYSTEM. <br />Labor cost shall include any payroll additives normally <br /> <br />assigned by LCRA as part of the cost of labor in its regular <br />labor distribution accounting process, e.g., FICA taxes, leave <br /> <br />accrual, workers' compensation and group life insurance prem- <br /> <br />iums, pension and other benefits where such cost is normally <br /> <br />allocated on labor charges; <br /> <br />b) <br /> <br />the cost of materials and supplies issued <br /> <br />from an LCRA-owned storeroom and used in conjunction with work <br /> <br />performed specifically to benefit CITY's SYSTEM. <br /> <br />The cost of <br /> <br />LCRA's materials and supplies shall include such handling <br /> <br />charge as LCRA normally adds to its stores issues in its regu- <br /> <br />lar materials distribution accounting process; <br /> <br />c) <br /> <br />The cost of LCRA's transportation and mobile <br /> <br />equipment when used in conjunction with work performed specifi- <br /> <br />cally to benefit CITY's SYSTEM, such cost to be calculated in <br /> <br />the same manner as LCRA calculates the cost of such equipment <br /> <br />in its regular vehicle distribution accounting process; <br /> <br />-20- <br />