Coachella mayor indicted on charges of perjury, conflict of interest over downtown development

INDIO, Calif. — A Riverside County criminal grand jury has indicted the longtime mayor of Coachella on nine counts, including one felony charge of violating conflict of interest rules related to government contracts and four felony counts of perjury.

Steven Hernandez, 42, who has served on the Coachella City Council for nearly two decades, pleaded not guilty Thursday morning at the Larson Justice Center in Indio.

Hernandez was a rising politician in Riverside County and Coachella, an agricultural city of 42,500 people about 130 miles southeast of Los Angeles. If convicted as charged, Hernandez would be barred from public office for life and face more than seven years in state prison, according to Riverside County Dist. Atty. Mike Hestrin.

Hernandez was raised in Coachella by his grandparents, who were migrant farmworkers. He was first elected to the council in 2006, becoming an integral part of a powerful group of Latino politicians in the valley east of Palm Springs. Under his leadership, the city made major infrastructure investments in its downtown, including an expanded library, a new senior center and a new fire station.

But Hernandez allegedly benefited from some of the votes he cast from the dais, catching the attention of the Riverside County district attorney’s office.

The indictment, unsealed Thursday, charges Hernandez with several misdemeanors for using his role as a public official to influence governmental decisions in which he had a financial interest. Among those were votes, cast between 2021 and 2023, to use pandemic-related American Rescue Plan Act funds to rehabilitate the downtown fire station, as well as votes on a commercial project known as Fountainhead Plaza, an affordable apartment community called the Tripoli Mixed-Use project, and a transit hub near downtown.

Hernandez’s attorney issued a statement following Thursday’s proceedings.

“We recognize the serious nature of these charges and will be working with our client to resolve the matter,” said A. Alexander Lowder, a partner with the law firm Larson.

The indictment also charges Hernandez with a felony for “willfully and unlawfully” approving a contract in which he had a financial interest when he voted for an agreement between the city and the Coachella Valley Assn. of Governments’ Housing First program, which serves chronically homeless people.

An Assn. of Governments spokesperson said the organization has fully cooperated with the district attorney’s office and grand jury and “there has never been an implication from investigators that the investigation had anything to do with actions by elected officials serving in their CVAG capacity.”

The perjury charges relate to claims made by Hernandez on his Statement of Economic Interests public disclosure forms, also known as Form 700, the district attorney said.

The indictment named 13 witnesses who testified before the criminal grand jury, including a City Council member, the city’s economic development director, a former council member and a former city manager.

Hernandez will remain mayor of Coachella “until otherwise notified,” according to city spokesperson Risseth Lora.

Along with serving on the City Council, Hernandez works as the chief of staff for Riverside County Supervisor V. Manuel Perez. He was put on “indefinite administrative leave” from the county, Perez said in a statement Wednesday, adding: “Although we are still waiting on more details, it’s our understanding that the charges are unrelated to his role in our office.”

Hernandez surrendered to Riverside County sheriff’s officials at the Robert Presley Detention Center in Riverside on Tuesday and posted $112,500 bail. He appeared before Riverside County Superior Court Judge John J. Ryan on Thursday morning. Wearing a navy suit, he clasped his hands behind his back as his attorney entered the plea.

He donned sunglasses as he left the courtroom.

This article is part of The Times’ equity reporting initiative, funded by the James Irvine Foundation, exploring the challenges facing low-income workers and the efforts being made to address California’s economic divide.