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<br /> 3.7 Direct costs shall Include, but not be 118ited <br /> ~Ol <br /> a) the labor cost of £eRA employees when 8uch <br /> labor is performed specifically to benefit CITY's SYSTIM. <br /> Labor cost shall include any payroll additives nor.ally <br /> assigned by LCRA a. part of the cost of labor In its regular <br /> labor distribution accounting process, 8.g., PICA tazes~ leave <br /> accrual, workers' compensation and group life insurance prem- <br /> iums, pension and other benefits where such cOlt i. normally <br /> allocated on labor charges, <br /> b) the cost of materials and supplies 1ssued <br /> from an LCRA-owned storeroom and used 1n conjunction with work <br /> performed specifically to benefit CITY's SYSTEM. The cost of <br /> LCRA's materials and supplies shall include such handling <br /> charge a. LCRA normally add. to its stores issues in It. regu- <br /> lar material. distribution account~ng process; <br /> c) The cost of LCRA's transportation and mobile <br /> equipment when used In conjunction with work performed specifi- <br /> cally to benefit CITY'. SYSTEM, such cost to be calculated In <br /> the same manner a. LCRA calculates the cost of such equipment <br /> In its regular vehicle distribution accounting proces., <br /> -20- <br />