Thank you guys for your suggestions. My water heater now works. It was a short in the heating element as I first thought and when I replaced it with a new one it worked. The reason I didn't know it worked was because the indicator light on the control panel above the map table went out when I pressed the water heater button. Had I checked the line coming from the Delay Trip to the AC panel of the boat I would have seen it was still hot. An yes, Catalina did indeed put a delay trip (the pictures below show the trip when I lower the control panel and then the back side of the trip where you can read what it is). After unplugging the battery chargers and saw the indicator light didn't come back on and I then saw the battery chargers still worked after I pressed the water heater button even though the indicator light was off (normally indication no AC power to the boat), I checked the post leading to the AC panel and saw it was hot. Bottom line is the switch labeled polarity is for the delay trip and when in the ON position power should be supplied to the panel and the indicator lights should turn on. But if the indicator lights don't come on, they may be burned out and you still are getting power to the panel. I knew one of mine was burned out and have been searching for a replacement, but didn't realize the other one also burned out. The bottom picture was taken when the first one burned out before the water heater problem.
I incluided the last photo for Joe White whos 36' Catalina is also named Sail la Vie (although he capitalizes the La).