Fresh Revelations Spotlight City’s Involvement in Ex-Go Lake Havasu CEO’s Hiring

Months following the resignation of Go Lake Havasu CEO Susan Smith, new details have surfaced about the involvement of Lake Havasu City staff in her controversial hiring.

Smith was brought on board to lead the tourism agency in December of last year. Shortly thereafter, investigations into alleged financial mismanagement during her tenure at a tourism organization in Bastrop, Texas came to light. Less than two weeks after Smith started in Havasu, the Bastrop City Council received preliminary findings of an inquiry, which began in August. The report indicated that from 2021 to 2023, approximately $70,000 in public funds were inappropriately approved by Smith without the required documentation.

As Smith departed the organization in May, scrutiny grew over the city’s role in her hiring. In April, Mayor Cal Sheehy asserted that while the City Council advised on the process, the decisions were ultimately made by the Go Lake Havasu board of directors. Documents obtained by the Today’s News-Herald reveal that city staff aided in crafting job postings and organizing interviews for the CEO search. Additionally, emails show city staff and council members were invited to meet the final two candidates.

The final selection of Smith occurred after an interview process and a roundtable meeting whose details remain undocumented. On October 18, 2023, minutes from a GLH board meeting confirmed that Smith accepted a verbal offer. City Manager Jess Knudson, responsible for coordinating application collection but not vetting, deemed the city’s involvement appropriate. “We aimed to generate the most applicants for the board to consider,” Knudson said.

Future CEO searches for Go Lake Havasu will see reduced city involvement. Knudson noted that an external executive search firm would assist in finding the next permanent CEO. Meanwhile, interim CEO Lisa Krueger, formerly of the Lake Havasu Area Chamber of Commerce, holds the position.

Mayor Sheehy clarified that the city’s prior support was to expedite the process cost-effectively. He emphasized that future interactions would be limited to prevent any perceptions of impropriety.

The city’s relationship with Go Lake Havasu remains unchanged. “They fulfill their contractual obligations, which include having the city manager as a board member and a council liaison,” Sheehy stated. Go Lake Havasu operates under a $1.6 million annual contract funded by hotel and restaurant taxes to provide tourism marketing services.

Knudson stressed the oversight role of the city to ensure the fulfillment of tasks specified in their agreement. Lane mentioned ongoing efforts by the GLH board to enhance transparency, including launching a new website and submitting quarterly reports to the city.