Lake County assumes control of distributed wastewater system at Lake Nellie Crossing to drive septic-to-sewer shift

Lake County assumes control of distributed wastewater system at Lake Nellie Crossing to drive septic-to-sewer shiftIn a split 3-2 vote, the Board of County Commissioners opted to take over ownership, operation, and maintenance of a 102-lot distributed wastewater treatment system from a local HOA to ensure long-term environmental compliance and consumer protection.

Commissioners approved a measure directing staff to assume ownership, operation, maintenance, and fee collection for Distributed Wastewater Treatment Units (DWTUs) at the Lake Nellie Crossing subdivision.

The system was previously managed by the HOA under a private contract with OnSyte Performance, LLC for $55 per unit per month.

The county will utilize a Municipal Service Benefit Unit (MSBU) to collect fees on tax bills, covering a lower negotiated rate with OnSyte plus a county administrative fee.

Supporters of the takeover cited the need to standardize utility management and protect water bodies from nutrient loading, tying the move to a broader goal of replacing 10,000 legacy septic tanks.

The Lake County Board of County Commissioners voted 3-2 on July 14, 2026, to assume ownership and operational control of a Distributed Wastewater Treatment System (DWTS) serving the 102-lot Lake Nellie Crossing subdivision. The decision shifts the long-term maintenance burden from a private Homeowners Association (HOA) to the county, a move proponents argue is necessary to ensure consistent environmental protection and equitable rate structures. The subdivision's DWTS utilizes individual advanced treatment units at each lot, which discharge to subsurface land application systems. Under the original development agreement, the HOA owned the units and contracted with OnSyte Performance, LLC for operations and maintenance at a rate of $55 per unit per month. Public Works staff presented the Board with three options: leaving the system under HOA control, having the county act solely as a billing agent, or full county assumption of ownership, operation, maintenance, and collection. Commissioner Leslie Campione advocated for full county control, arguing that HOAs lack the long-term stability required to manage critical wastewater infrastructure. She emphasized that standardizing the system protects consumers from unexpected rate hikes and advances the county's broader environmental goals. The county is actively working to eliminate 10,000 legacy septic tanks to reduce nutrient loading in local water bodies under its Basin Management Action Plan (BMAP). Opponents, including Commissioner Kirby Smith, raised concerns about the county expanding its role into utility management, arguing that the HOA had already agreed to the maintenance responsibility and that the county should not intervene in private contracts. By approving the takeover, the county will require the termination of the HOA's existing agreement with OnSyte and will fold the units into the county's master agreement with the provider. To fund the program, Lake County will establish a Municipal Service Benefit Unit (MSBU) to collect the required fees through annual tax bills, which will include the OnSyte contract costs plus a county administrative fee of 3% to 5%.