Perez, 51, is accused of hiring a city contractor, Carlos Costa, to do $40,000 worth of renovations to his home and not paying for it until he was confronted by investigators in 2007.

The three-term Democrat has been out on bond since his arrest last week on charges of receiving a bribe, fabricating physical evidence and conspiracy to fabricate evidence. Defense attorney Hubert Santos told Superior Court Judge Julia Dewey that Perez is "prepared to go to trial today."

Dewey instead asked Perez to report back to court March 3 for a hearing.

Perez has said it was a mistake to hire city contractor Carlos Costa, but he insists he did nothing illegal and has no plans to step down as mayor. He declined to comment after the hearing.

Costa told investigators he believed he would be shut out of lucrative city contracts had he not done the work for free.

Also pleading not guilty Tuesday was city hall employee Edward Lazu, who was charged with receiving a bribe, fabricating evidence and forgery. Prosecutors say Costa did free driveway and sidewalk work for Lazu, who certifies contractors for city work.

Lazu's attorney, Richard Brown, said his client would be exonerated because "there is insufficient evidence."

Costa himself is charged with two counts of bribery, fabricating physical evidence and conspiracy to fabricate physical evidence. He is scheduled to be arraigned Friday.

Perez, a one-time gang leader, turned his life around to become a civic activist, and he was elected mayor in 2001. He then pushed through changes to the city charter that gave the mayor's office strong control over city government.
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