Modifies rules and requirements for flood control district contracts, including: (1) authorizing installment payments for contracts for maintenance, similar to other types of district contracts; (2) creating thresholds of $40,000 and $20,000, over which certain contracts may only be let by contract and competitive bidding; and (3) modifying competitive bidding procedures. Modifies requirements for performance bonds furnished by recipients of flood control district contracts, such as raising the threshold at which a performance bond for the full amount of the contract price is required to either $40,000 or $20,000 (depending on the type of contract), and specifying that the bond must be furnished to the district, rather than to the State of Washington. Amends and consolidates provisions relating to the administration and operation of the flood control district board of directors, and specifies that the board must hold meetings in accordance with the Open Public Meetings Act.   Official Text and Analysis.

Creates two different estimated cost thresholds for different types of contracts. Instead of the threshold of $50,000 or more, which was in the underlying bill, contracts for construction, services, or maintenance that have an estimated cost of $20,000 or more, and contracts for purchases of materials, supplies, or equipment of $40,000 or more, must be let by contract and competitive bidding. The substitute bill also modifies a provision in the underlying bill giving flood control districts a right to recover legal expenses, including reasonable attorneys' fees, from a successful bidder who fails to enter into a contract. The substitute bill establishes: (1) that flood control districts may recover all costs and expenses, not just legal expenses and reasonable attorneys' fees; and (2) that the costs and expenses must be incurred by the district as a result of the bidder failing to enter into a contract with the district, or failing to furnish a satisfactory performance bond, rather than as a result of the bidder failing to enter into a contract and the board's actions to collect on any surety bond required under the bill.