Lake Havasu City Staff’s Involvement in Controversial CEO Hiring Uncovered

Months after Go Lake Havasu’s CEO Susan Smith resigned amidst controversy, the involvement of Lake Havasu City staff in her hiring process has been clarified.

Smith, who took charge of the tourism agency in December, was soon under investigation for alleged financial mismanagement at a previous role with a tourism organization in Bastrop, Texas. Less than two weeks into her tenure, it emerged that the Bastrop City Council had initiated an inquiry into her financial practices starting in August.

During the investigation, it was revealed that from 2021 to 2023, Smith had approved approximately $70,000 in public funds on Visit Bastrop credit cards without proper documentation. Her departure in May prompted questions about how she was hired by Go Lake Havasu and the city’s role in the process.

Mayor Cal Sheehy stated in April that while the City Council does not manage Go Lake Havasu, they were consulted during the hiring process. Emails obtained by Today’s News-Herald confirmed that the city’s human resources department was significantly involved, including creating job postings and arranging interviews.

City staff and council members even attended a meet and greet with the final candidates on Oct. 5, 2023. Following the event, city HR staff assisted the Go Lake Havasu board in negotiating an offer, leading to Smith’s hiring a week later. Minutes from an Oct. 18, 2023, board meeting document that an offer was verbally accepted.

City Manager Jess Knudson clarified the city’s involvement, emphasizing their role in supporting the board rather than vetting candidates. “We aimed to generate the most applicants for the Go Lake Havasu board to consider,” Knudson stated.

Future CEO searches will likely exclude city involvement. Knudson mentioned that Go Lake Havasu plans to use an external firm for the next search. Former Lake Havasu Area Chamber of Commerce CEO Lisa Krueger is currently serving as interim CEO.

Mayor Sheehy confirmed the city would not offer further hiring assistance to Go Lake Havasu or any other organization. “Our previous involvement was to be cost-effective and expedient,” Sheehy explained. The decision to avoid further involvement aims to prevent any appearance of impropriety.

The city’s relationship with the Go Lake Havasu board will remain unchanged. Sheehy stated the city will continue to fulfill its oversight obligations as outlined in their $1.6 million annual contract, funded by hotel and restaurant taxes.

Knudson highlighted the importance of oversight to ensure Go Lake Havasu meets their contractual obligations in promoting tourism. Additionally, Go Lake Havasu is enhancing transparency by developing a new website and regularly submitting financial and other reports to the city.