Some thoughts:
"Eliminate hatchery and make it strictly C&R"
Well, the hatchery is there for more reasons, I suspect, than simply providing fish for anglers.
"Declare it classified waters and make people pay 50-100$ a year if they want to fish it."
Personally, I'm rather leery of motions like this, which seem to result in a two-tier system--or at the very least a system where your options of where to fish depend on how much money you have. Though I'm sure the rich ponces that could cough up an extra few hundred for the license wouldn't snag fish--or wait, maybe they still would... (no offense to any rich ponces present:)
The above options, and all others, it seems to me, still depend on DFO doing some enforcement sometime which appears not to be the case at the moment from what I'm hearing. I would think that the simplest thing to do, if there is a group who are really pissed off about this, is to find the name of an actual person in DFO in this area. Inform them that this is an area of concern for snaggers and flossers. They'll probably do their typical bureacratic, yeah yeah, we'll look into it.
Then, have people start doing counts on the river ever day that is possible. Start sending the DFO dude/ette numbers every day. Something like "today we had 2 observers for one hour each. 28 fish were seen snagged and retained". Email the individual DFO officer every day.
What you will create, in a very short amount of time, is a pattern of data that they cannot ignore. After a few weeks of this occuring, send the DFO person an email saying something like "we have made 35 reports in the last two weeks of fish being snagged and retained to DFO officer X. This totals over 115 illegally caught and retained fish. If you are unwilling to address this problem please forward the name of your immediate superior and all email records of our reports to you will be forwarded up the ladder".
This, I have found in similar past experiences is the only way to give bureacrats a motivation to get moving. It requires a little bit of collective thought/ coordination, but bureaucracies move on data, and isolated reports won't get the moving. If nothing is done, then you have a fair amount of rather disturbing data that can be forwarded up the ladder. Someone will eventually get into sh*t and then something will be done.
My apologies for the rant--I don't really have any experience with the Chilliwack/ Vedder (yet! hoping to change that soon!) but I do have a fair amount of experience with gov. bureacracy