SHUT DOWN… Last month we broke the story about Mills Family Farms’ financial difficulties: Creditors filed lawsuits; Roger and Basil Mills fell behind on loan payments to a city of Salinas employee retirement fund with a heavy stake in Mills’ Monterra Ranch. On July 5, the ag company stopped shipping and selling produce while it began work on a restructuring plan. Company spokesman David Armanasco says the company’s “inactive” status was brought on by four years of bad produce markets and the rising costs of fuel and fertilizer. While Armanasco says Mills is not planning to file bankruptcy yet, the company’s collapse is looking more imminent. [ZS]

PEACE OUT… After three years at the helm of America’s Most Dysfunctional Hometown, Pacific Grove City Manager Jim Colangelo has announced his resignation. His tenure has been as productive as it’s been controversial: He righted the sinking city budget with a massive staff reorganization, service cuts and revenue boosts. He took Mayor Dan Cort’s lead and implemented green initiatives. He irked P.G.’s good old boys and girls and he delighted bored progressives by shaking up the status quo. Colangelo will leave in December. [KA]

CAMPAIGN SEASON… The Monterey County Republican Party hopes to gain another elephant on the Salinas City Council. Republican Vince Ferrante announced July 8 he will challenge Councilwoman Jyl Lutes, a Democrat, for her District 6 seat. While the November election isn’t partisan, Ferrante, a commissioner for the Moss Landing Harbor District and Monterey County Overall Economic Development Commission, is already gaining endorsements from key local GOPers: State Sen. Abel Maldanado and Lutes’ nemesis, County Supervisor Lou Calcagno. [ZS]

INCHING FORWARD… After years of meetings, studies and a legal battle, Carmel Valley residents may vote on incorporation in early 2009. According to a tentative settlement agreement between the Local Agency Formation Commission and the Carmel Valley Forum, LAFCO will pay $300,000 in settlement costs and process the incorporation proposal until December, at which point the LAFCO board will vote on whether to send the issue to the voters. “It’s moving forward,” CVF attorney Michael Stamp says. “It’s a few years late but it’s certainly the right result.” [JL]