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Leisure World representatives ask council to review permit fees for mass electrical-panel replacements

Seal Beach City Council · March 9, 2026
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Summary

Leisure World Mutual 3 leaders told the council that replacing hazardous electrical panels across the community is producing disproportionate permit fees (about $119 per panel) that can impose tens of thousands of dollars on mututal associations; staff noted Prop 26 constraints and will review fees versus cost of service.

Randall Healey, president of Leisure World Mutual 3, said multiple mutuals in the Leisure World retirement community are replacing unsafe electrical panels identified by insurers. He told the council the city's permit-issuance fee for each panel change is about $119 and that Mutual 3 has already been charged more than $26,000 for permit fees alone.

"Just for the city permit fee, Mutual 3 alone has been charged over $26,000 and growing," Healey told the council, urging a rapid review of whether the fee structure is reasonable for multi-family or master-planned retirement communities where many identical repairs are required.

City staff (Sean) responded that the panel change-out fee is roughly $16 for the permit and a standard issuance fee is about $85, totaling about $111 per job; staff also noted Proposition 26 complicates offering a discount to a subset of residents because differential discounts can be treated as a tax and would require voter approval. Council discussion encouraged staff to re-check cost-of-service calculations to ensure fees do not exceed the actual cost of providing inspection services.

No formal motion was taken; staff agreed to review the fee schedule and confirm compliance with Prop 26 and the city's cost-recovery policy.