Replacing special Latin characters in friendly URLs issue
Using Jamroom
I think the issue here is that your iconv has it's output encoding set to ISO-8859-1 instead of UTF8. I have a PHP 5.4 install here that is setup the same as yours and it removes the character as well. On my PHP 5.6 install there is no issue since those options have been removed.
Looks like we can set the output formatting via an ini_set() for older PHP installs - I'll work on that for 5.3.0b4 and that should hopefully fix it on your install.
Hope this helps!
updated by @brian: 11/13/15 01:57:33PM