By Joel van der Veen

CRAIK — A proposal to restructure the Town of Craik as an organized hamlet will be the focus of a special meeting of town council later this month.

Councillors were told at their regular meeting on Thursday night that such a restructuring may be the town’s best option, as Craik grapples with the cost of rehabilitating its water treatment plant.

Dermot McCaw, who was reporting to council on behalf of the Water Task Force, said Craik will be on the hook for more infrastructure needs over the next few years, from maintenance of the water delivery system to expansion of the sewage lagoon.

He predicted that those costs would reach into the millions of dollars, well beyond the town’s resources.

“We’re just touching the tip of the iceberg,” said McCaw. “I hate to be as blunt as I am … I think that we’re up the creek without a paddle.”

Task force member Mark Wegner, who also attended Thursday’s meeting, said the town isn’t equipped to cover the ballooning costs of maintaining its infrastructure.

Restructuring may be the best way forward, he told the Leader on Friday morning, but ultimately council will need to choose what path the town will take.

“We’re just giving them the information,” said Wegner. “How they deal with it is up to the council.”

As an organized hamlet, the current town would become part of the Rural Municipality of Craik and would come under the RM’s governance.

Residents would elect a three-person board to represent the hamlet before the RM council, according to the province’s website. The RM would collect all taxes and grants for the hamlet, which would not have spending authority.

All grant money received for the hamlet would be allocated to the community, while hamlet and the RM would need to negotiate an agreement by which a portion of the taxes collected from hamlet residents — usually between 40 and 75 per cent — would be allotted towards the community.

McCaw said he recognized the proposal would not be popular, but he advised the town to take it under consideration, given the circumstances it currently faces.

“It’s a terrifying step,” he said, his voice uneven. “I grew up in the town, I don’t want to tear it down.”

Craik has been without potable water since August 2010. The town is in ongoing discussions with the provincial Water Security Agency (WSA), which has set a deadline of Dec. 31, 2018 for Craik to restore drinking water service to residents.

If progress isn’t made soon, McCaw said the WSA may look at taking action against the town, which could include fines or an order of compliance.

He acknowledged that all options should be considered, but added that in his opinion, restructuring would be the best way forward.

“It’s undeniable that you’re treading water,” said McCaw. “It’s (the town’s) responsibility to supply potable water.”

McCaw presented a preliminary engineer’s report from KGS Group, which included an assessment of Craik’s water treatment facilities, based on site visits completed on Oct. 23 and Dec. 10 of last year.

Council gave its approval to request the final report from KGS, which will include estimated capital replacement costs and remaining service life for major system components. The cost of this upcoming report was estimated at $7,500.

Besides the costs of the assessment, McCaw said the town must also anticipate the costs of implementing the engineers’ recommendations, which would likely be upwards of half a million dollars.

Even if provincial and federal grants could be secured, the town would still be on the hook for hundreds of thousands of dollars for its anticipated infrastructure needs.

Wegner said the proposal had been percolating for some time, while McCaw said that if Craik’s situation improves down the road, regaining town status may be a possibility.

Once council has decided on the direction it will take, McCaw said the town would need to reach out to the Ministry of Government Relations.

Consultations with the rural municipality would be necessary, as would a public meeting with ratepayers.

“This is just a baby step to a long process,” said Wegner, adding that council will also need to consider how restructuring would affect the school, the hospital and other services and facilities in Craik.

He said Friday that council has likely done as good of a job as could be expected with the tools at its disposal, but the town does not draw enough tax revenue to pay for anything beyond normal operating costs.

Wegner likened it to the recent trend of consolidation among the province’s co-operative associations, many of which have concluded that they cannot remain viable as separate entities over the long term.

“Since July, we’ve been going through every scenario that we can possibly go through,” he said, referring to the task force. “Nobody wants to see anything drastic . . . (but) it’s a solution.”

“There’s no easy solution, no easy answer,” he continued. “If anybody’s got a better solution, I’m definitely open to it.”

Council members appeared to have been blindsided by the suggestion, with Mayor Rick Rogers stating, “I had no idea they were going to propose that tonight.”

Coun. Charla Edwards, who serves on the task force, said members have discussed the idea at length. Other council members expressed openness to the proposal.

“I think it needs to be explored,” said Coun. David Ashdown. “Exploring the option doesn’t cost us anything, though it may cause an uproar.”

“We’re not attracting any new development here,” said Coun. Cheryl Klein. “We can’t, our hands are tied.”

Administrator Sarah Wells suggested that the town consult with the provincial government and conduct its own research before making a firm decision.

Ashdown added that councillors would need to perform their due diligence in looking at what was involved and what the outcome could be.

He suggested calling a special meeting of council to decide on the issue. The date was set for Feb. 25 at 7 p.m.

The town would need co-operation from the RM to move forward with restructuring. Reeve Hilton Spencer said Friday morning that he would need to discuss it with his council, but added he was skeptical they would give it their approval.

“I’d have to talk to my guys,” he said. “I would say the answer would be ‘no’ . . . I’m almost positive about it . . . but I guess it would have to be discussed.”

Patrick Boyle, speaking on behalf of the WSA on Friday, confirmed that the agency had set a deadline for Craik to restore its potable water service.

The WSA has multiple options to take action against the town if necessary, said Boyle, but “the regulations are all pretty reasonable.”

He added that regulators are unlikely to take forceful action as long as there’s evidence that the town is making progress.