This is only happening for menu items and in content it works fine.
It's also specific when using different dash, for example this will not work:
Living Water Smart – BC's Water Plan
While this does work fine:
Living Water Smart - BC's Water Plan
It doesn't look like theme issue because Predrag tested the theme on his site and there both of the examples work fine.
wp-config has UTF8 set and DB charset is utf_general_ci.