Ratification of special assessment

Hello, thanks for the help in advance, I am a new board member.

Our HOA ratified a special assessment to do some common area maintenance. The assessment amount was based on a bid that a vendor submitted. The wording used in the board meeting minutes and subsequent ratification do not mention anything about using the same vendor to complete the work. Now the property management company is telling us that if we dont use that vendor, our ratification is invalid and we need to return the money that has already been collected. They want us to do a new motion, new ratification, after identifying the new vendor. The work is exactly the same, no change in scope.

My questions are:
1) the wording in the minutes are below. I dont see a change in vendor invalidating it, as it doesnt mention the vendor.
2) if we need to do a new ratification, a vendor-agnostic one, what will that look like?
3) is this a serious issue that requires a lawyer to look into, before we can proceed with signing up with a new vendor?

Thanks.

Copy paste from Minutes.
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2022 Special Assessment Ratification Meeting
In accordance with the xxx HOA Declaration, the Board of Directors adopted the 2022 Special
Assessment at the June 13, 2022 Board of Directors Meeting. This Special Assessment is to cover the
necessary Community greenbelt tree work, retaining wall improvements
and the remaining sidewalk repairs. The amount of the Special Assessment is $xxx. This is $xxx per
lot owner.
Unless 51% of homeowners attend the meeting and those 51% of homeowners reject the Special
Assessment, the Special Assessment will be ratified. Proxies are not required for this meeting and
homeowners must attend to reject. Otherwise, the Special Assessment will be ratified, whether or not a
quorum is present.
You will receive notification of the result of the Special Assessment Ratification Meeting after the July 26th
meeting. A separate mailing will be sent out to all owners prior to October 1, 2022 with a statement of
$xxx marked “Special Assessment”. The Special Assessment payment due date will be October 1, 2022.
The Board is offering two options to pay the Special Assessment. Option 1) $xxx one-time lump sum
payment by October 1, 2022; or Option 2) a 3-month payment plan due the first of October, November
and December of $xxx per month. Details on submitting this payment will be in the separate
mailing.

******
The board discussed the Special Assessment amount, and the Board agreed on a Special
Assessment of $1000.00 per home in xxx. A Special Assessment meeting
will be held on xx July xx, at 6:30PM for the homeowners to approve or reject this
special assessment. 51% of homeowners will need be present at the meeting in order
to reject the special assessment for it to not move forward, otherwise, the special
assessment will be moving forward after approval.
o xx motioned $xx per home special assessment. xx seconded: Motion
approved.

*****

By any chance was the name at the vendor used at the meeting where the Special Assessment was discussed? If so, and because this meeting was noticed to owners, I can see a reason to re-do the meeting and vote.

Do not let the PM lead you. They work for the HOA. Sometimes they get it wrong. This I think is a misinterpretation of the action. A special assessment should be based on the overall cost of the project not the vendor. The vendor bids gave you all the idea of the overall costs.

Let's say the project was bid out and the average amongst 3 vendors was 10K. The HOA can then make a special assessment to raise the 10K needed for the project. It can then go find another vendor that will do it for that amount. I would call this more like the "law of averages" approach.

I would then have a discussion with your PM about drawing some lines and reviewing the contract with them. The HOA is the one that does the vote and organizes the special assessment. The PM is to say "okay we will put the money in the bank and write the check when it's done".

Be careful with special projects. It can be so tempted to just say raise $10K even if the project costs only $7K. The thinking being why not cover some other projects/expenses? This is okay as long as it's disclosed this is part of what the money will go for. It looks kind of bad to see a project done and then people notice other projects being completed. It may make them think you didn't need the money in the first place for the major project if could afford to do the others. (Not logical but it happens).

I assume that the Board has realized two things during this process. The first is the tree work is an operating budget item and sidewalk section replacement is a Replacement Reserve account, just like the retaining wall work. Second of all long-term financial planning is one of the most vital jobs each Board has to work on so large assessments of this type are not needed.

One unintended consequence of this event is that the owners will not trust the Board.

Ah, so I think you have shown us the real issue - the board dared to defy the PMC and choose a vendor that isn’t on their favored list. This seems common in the HOA world. When things settle down I would definitely try to encourage your board to find a different PMC.

1.b Preparation and Approval of Budget
Within thirty (30) days after adoption of any proposed budget after the Declarant Control Termination Date, the Executive Board shall provide to all Lot Owners a summary of the budget, including any reserves and a statement of the basis on which any reserves are calculated and funded. Simultaneously, the Executive Board shall set a date for a meeting of the Lot Owners to considerratification of the budget not less than ten (10) nor more than sixty (60) days after providing the summary. Unless at that meeting a majority of all Lot Owners reject the budget, the budget is ratified, whether or not a quorum is present. If a proposed periodic budget is rejected, the periodic budget last ratified by the Lot Owners must be continued until such time as the Lot Ownersratify a subsequent budget proposed by the Executive Board.
(c) Annual Assessments.

***

Special Assessments, Budget Amendments.
(1) In addition to the annual assessments authorized by this Article, the Corporation may levy, in any assessment year, a special assessment or special assessments applicable to that year only for such purposes as the Executive Board may deem appropriate, including, without limitation, for purposes of funding, in whole or in part, the cost of any construction, reconstruction, repair or replacement of any capital improvement located upon the Common Elements and all fixtures and personal property related thereto, and to meet unforeseen or special expenditures as well as any budget deficit. Any such assessment shall require ratification by Lot Owners under the procedures described in Article V, Section 1(b) of these Bylaws,

For a board to have the power, pursuant to the Bylaws, and all by the Board's self with the owners having no say other than notice requirements for board meetings, to impose a Special Assessment is pretty common.

Also of course: Some states have statutes that reserve certain rights like SAs to owners. Many do not.