Criminal Grand Jury Indicts Coachella Mayor

Steven Hernandez Pleads Not Guilty to All Charges

RIVERSIDE — A Riverside County criminal grand jury has returned a nine-count indictment against the mayor of Coachella, Steven Hernandez, District Attorney Mike Hestrin announced today, Oct. 30. You may read the entire indictment here.

Hernandez, 42, was arraigned Thursday morning, Oct. 30. He pleaded not guilty to one felony count of conflict of interest, four felony counts of perjury and four misdemeanor counts of conflict of interest. He was accompanied only by his Los Angeles-based attorney, Alexander Lowder.

The conflict-of-interest charges relate to Hernandez’s vote to approve a contract between the City of Coachella and the Coachella Valley Association of Governments’ Housing First Program, as well as his votes and advocacy related to downtown Coachella development projects. The perjury charges relate to claims made by Hernandez on his Statement of Economic Interests public disclosure forms, also known as the Form 700.

In response, CVAG released the following statement. “CVAG has fully cooperated with both the Riverside County District Attorney’s Office and the grand jury, answering every question and providing every piece of documentation that investigators requested. CVAG has been informed that it is not the subject of the investigation. 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.

“CVAG’s CV Housing First program works with chronically homeless individuals and puts a roof over their heads while we provide case management, help them address the issues that caused their homelessness and ultimately connect them with permanent housing solutions. It is an impressive program that has earned recognition for getting the hardest-to-house clients off the streets.

“We will continue to fully cooperate with authorities as this matter develops.”

Stitching together pieces of the indictment and related reports, this is what unraveled:

Rehabilitation of the Downtown Fire Station

On March 11, 2021 – the American Rescue Plan Act (ARPA) was signed into law by Congress.  It was estimated that the City of Coachella will receive approximately $10 million.

Hernandez allegedly violates the Fair Political Practices Act when he participates in multiple discussions of how the City of Coachella should utilize the funding while he owns property adjacent to the downtown fire station.  The property is owned by PuroCoachella which he is a partner and purchased the land on August 17, 2021.

On August 25, 2021, a week after Mayor Hernandez has purchased property adjacent to the downtown fire station, he participates in a Study Session discussion on how the City shall utilize $10 million American Rescue Plan Act funds. Staff is recommending half of the funds be utilized for revitalizing the downtown fire station.  Mayor Hernandez does get up and leave the room at the beginning of the fire station remodeling plan and cost estimations, but returns well before it is completed.  He participates in the discussion and near the end of the meeting, a chart lists the funding amounts for each project, he states, “I generally like everything on here” referring to the chart on the screen which includes allocating $5 million to the restoration of the fire station.  Councilmember Beaman Jacinto and Denise Delgado ask that another study session meeting is conducted later so that they have time to really dive into each project and look at the funding.  Staff agrees to do so.

https://coachellaca.swagit.com/play/08252021-1081

On Nov. 15, 2021, the City holds a second Study Session on how to spend the $10 million American Rescue Plan Act funds. Steven Hernandez very aggressively advocates for a $5million allocation to pay for the majority of the costs for the $6.8 million fire station rehabilitation.  Hernandez becomes upset about pushback from two councilmembers asking if the funds should be used elsewhere or use other funding mechanisms instead of the ARPA funds now. Hernandez grabs his phone and starts texting someone.  Hernandez becomes very agitated with councilmembers who questioned such a large portion of the $10 million funds.  Staff (finance director) also become aggressive, following the Mayor’s lead.  Steven Hernandez, at the end of the discussion, directs staff to bring the funding item back to the council on December 8, 2021 for a final vote with the $5 million for the fire station.

https://coachellaca.swagit.com/play/11162021-659

On Dec. 8, 2021, the city council approves to spend $5 million of the ARPA funds towards the rehabilitation of the downtown fire station. Steven Hernandez recuses himself from the vote as he states that he owns property within a 1,000 feet of the fire station.

https://coachellaca.swagit.com/play/12092021-887

If convicted as currently charged, Hernandez would be barred for life from ever holding public office and face over seven years in state prison.

Hernandez surrendered to Riverside County Sheriff officials at the Robert Presley Detention Center in Riverside on Tuesday, Oct.28 and posted bail set in the amount of $112,500.

The grand jury indictment was unsealed when Hernandez was arraigned today at the Larson Justice Center in Indio. A trial readiness conference is scheduled for Feb. 23. The case number is FEIN2502457.