Normally, torque values are dry values unless specified otherwise. When retorquing, you want to go by the sequence, loosening the bolt and then tightening it to spec (as you note, 60 - 65 ft-lbs). You need to loosen the bolt first because of the difference between static friction force (effort to move something at rest) and dynamic friction force (effort needed to continue movement).
Here is a snippet from the TC workshop manual that gives the torque sequence.