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Earlier editions: 2026-09

Title 10 — VEHICLES AND TRAFFIC

Morro Bay Municipal Code Ch. 10.84 Police Towing Services

Morro Bay Municipal Code · 2026-10 edition · updated 2026-10-04 · Morro Bay

Cite as: Morro Bay Municipal Code Chapter 10.84 · Text as of 2026-10-04

10.84.010 - Establishment of authority.

In exercise of their power, the city council may regulate the operations of police towing services contracted to the city to include rates and fees charged resulting from police towing services requested pursuant to California Vehicle Code Section 21100(g). The chief of police is authorized and directed to enter into and regulate police towing services contracted to private tow companies. Tow service providers shall provide tow service to the city on request in accordance with all the rules and regulations outlined in this agreement. The provisions of this agreement shall apply only to the towing and storage of vehicles, contracted as a result of police activity or in the performance of duties as a city contracted tow service provider.

(Ord. No. 548, 5-26-09)

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10.84.020 - Definitions.

The following words shall have the meaning given herein:

"City" is the city of Morro Bay.

"Person" is any person, firm, partnership, association, corporation, company, or organization of any kind.

"Tow service provider" is a person under contract with the city to provide the services of a vehicle tow truck or trucks or towing service, whereby motor vehicles are towed or otherwise moved by use of a tow truck so designed for that purpose or by a truck, automobile, or other vehicle so adapted to that purpose. Tow service providers must be under current contract with the California Highway Patrol to provide towing services unless granted an exception by the police chief.

(Ord. No. 548, 5-26-09)

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10.84.030 - Police tow service agreements.

Police tow service contracts are valid for a period of one year and effective from July 1st through June 30th of the following year. Tow service providers will be required to sign an initial agreement, which will automatically renew annually unless canceled by either party. The chief of police may review the tow service agreement on an annual basis to evaluate the service provided by the tow company. Only towing service providers under contract with the city as provided herein shall be entitled to participate in the distribution of city towing service orders. Any agreement entered into pursuant to these regulations shall not affect any other permit or license requirements imposed by federal, state or local law.

(Ord. No. 548, 5-26-09)

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10.84.040 - Agreement termination.

A. Default. The agreement may be terminated by the city if the tow service provider:

  1. Ceases operations for any reason, or fails or refuses to promptly answer city calls for towing services;

  2. Fails to comply with the provisions of this chapter or the fee schedule;

  3. Fails to respond to the twenty-minute maximum response time requirements without previously notifying the police dispatchers.

B. Termination for Cause. If, through any cause, the tow service provider shall fail to fulfill in a timely and proper manner its obligations under the contract, or if the tow service provider violates any of the covenants, agreements or stipulations of the contract, the city will thereupon have the right to terminate the contract by giving written notice to the tow service provider of such termination and specifying the effective date thereof, at least three days before the effective date of such termination.

Notwithstanding the above, the tow service provider will not be relieved of liability to the city for damages sustained by the city by virtue of any breach of the contract by the tow service provider.

C. Termination for Convenience of the City. The city may terminate the contract at any time by notice in writing from the city to the tow service provider at least five days before the effective date of such termination.

D. Either party may terminate this agreement at any time for any other reason by tendering written notice to the other party thirty days before the effective date of termination. In the event of such termination, or at the expiration of this agreement, within fifteen days of such date, tow service provider shall prepare and file with city all written reports required and due under this agreement, a closing statement of any fees payable to city, and remit full payment of all fees due and payable (if applicable).

(Ord. No. 548, 5-26-09)

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10.84.050 - Application.

A. Application for tow services agreement shall be made to the Chief of Police by submitting the following documents:

Copy of the California Highway Patrol Rotation Tow Listing Application;

Copy of current liability and automotive insurance;

Copy of worker's compensation insurance;

Copy of city of Morro Bay business license;

Description of storage areas including photos;

Description of all tow trucks including photos;

B. An initial application hereunder shall be accompanied by a nonrefundable application fee as determined by the city.

C. The chief of police may recommend to the city council that a contract be entered into with the applicant if the operator meets all the requirements of these regulations, and any other requirements imposed by federal, state or local law. The chief of police may regulate the number of tow service providers.

(Ord. No. 548, 5-26-09)

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10.84.060 - Compensation.

Tow service providers shall receive no compensation except those fees payable by parties responsible for fees due to towing services rendered. In no event shall the city be under obligation to compensate tow service provider for services rendered to other parties. As tow service provider's sole compensation for services provided under this agreement, tow service provider shall be entitled to keep and retain all profits realized from the lawful redemption, sale or disposition of all vehicles, vehicle parts, or equipment removed, towed or stored under this agreement.

(Ord. No. 548, 5-26-09)

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10.84.070 - Rates and fees.

A. Towing fees of the tow service provider will be reasonable and not exceed those rates established by the local area California Highway Patrol.

B. Rates and charges shall be posted in the tow service provider's office, visible to the public.

C. A copy of the schedule of current rates shall be provided to the police department. The police department shall be advised in writing of any proposed adjustment of the rates prior to any change taking place. The chief of police must approve any rate changes.

D. In the event the police department accepts liability for a tow, no charge will be made for storage fees to the city or other person or business.

(Ord. No. 548, 5-26-09)

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10.84.080 - Independent contractor status.

A. The relationship between the tow service provider and the city is that of independent contractor. The tow service provider is not an employee of the city, and is not entitled to the benefits provided by the city to its employees, including, but not limited, to group insurance and retirement plans.

B. The conduct and control of the services to be performed by the tow service provider under this contract will lie solely with the tow service provider. The tow service provider will perform its services for the city in accordance with currently approved methods and ethical standards applicable to its professional capacity. The tow service provider will be free to practice its profession and/or trade for others during those periods when it is not performing work under the contract for the City.

C. The tow service provider will provide its own motor vehicles and will maintain and operate the vehicles at its own expense. The vehicles will be maintained by the tow service provider in a safe and serviceable condition and meet all California regulations.

(Ord. No. 548, 5-26-09)

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10.84.090 - Requirements of tow service providers.

A. Response to Tow Requests.

  1. Tow service providers shall be available for response within the incorporated area of the city and within a reasonable distance of those limits on a twenty-four hour, seven-day per week basis. Services originating as a result of a call from the police department shall not be subcontracted to another contracting tow service provider or to any other person or business at any time of the day or night.

  2. Tow service providers shall be capable of responding a minimum of two tow service vehicles within the defined area within twenty minutes. If the tow service provider is unable to respond as required, the police dispatcher will be so advised so that another tow service may be summoned.

  3. Tow service providers shall conduct business in an ethical, orderly manner, endeavoring to obtain and keep the confidence of the community. They will abide by the decisions of police officers or code enforcement officers.

B. Training and Experience. Tow service provider shall provide proper and adequate training and supervision of its agents and personnel. No charge will be permitted if, in the opinion of the city, a charge, or part of a charge, results from inadequate training and/or inexperience of the tow service provider, its employees, personnel, or agents. Each tow service provider requesting an agreement shall have been operating as a towing service in the San Luis Obispo County for not less than one year prior to requesting the agreement unless this requirement is waived by the chief of police. Any tow truck driver employed by a tow service provider shall have had sufficient training and/or experience to enable the driver to safely and competently tow vehicles.

C. Employee Records. The tow service provider shall keep complete and accurate records of its employees and maintain these records for at least two years after an employee or agent leaves its employment, and that these records shall be made available to the office of the Morro Bay city attorney upon request.

D. Towing and Storage Records. The tow service provider shall maintain complete and thorough records of all city requested towing and storage transactions, including consecutively numbered receipts and the same shall be open for inspection by the city at any reasonable time with or without notice. The records and receipts shall be maintained in good condition in a safe and secure area for a period of not less than two years and shall be kept longer if requested by the city. Information in the records shall include times and dates of towage, locations from which vehicles are towed, their descriptions, license numbers, etc. and the fees paid by the claimant of the vehicle.

E. Office and Storage Facility. Tow service providers shall maintain a physical location within five miles of the geographic boundaries of the city. The chief of police may exempt this requirement. All structures and property involved in the operator's wrecking, towing and storage operations shall be in compliance with all applicable building, fire, and zoning codes and ordinances, and with all adopted or proposed land use plans. All towed vehicles must be stored within an area that is screened from street view by a minimum six-foot high view-obscuring fence. No towed vehicle may be parked by the tow service provider or its employees or agents outside its authorized and licensed storage yard.

F. Vehicle Storage. Tow service providers shall be solely responsible for the safekeeping of all vehicles towed, and for any personal property within the towed vehicle. In keeping with this responsibility, tow service providers shall provide secured areas in which towed vehicles may be safely stored in an area until ready for release to authorized persons.

  1. No vehicle will be stored in "inside storage" and charged as such without prior approval of the police department watch commander.

  2. Tow service providers shall have the capability for releasing vehicles between eight a.m. and five p.m., normal business days (generally Monday through Friday or Saturday), and by appointment after hours and during nonbusiness days.

  3. Tow service providers have the responsibility for safeguarding all articles left in impounded/stored vehicles. Bulk property left in vehicles will normally be listed on the vehicle impound report by the police officers. Any article removed for any reason will be properly identified on the tow service provider's copy of the impound report.

G. Abandoned Vehicles. Tow service providers will furnish the necessary personnel and equipment to pick up, tow away and lawfully dispose of all motor vehicles abandoned in the city or removed in violation of the seventy-two hour parking restrictions, irrespective of value, as designated by the police department.

  1. Abandoned vehicles will be removed from city streets and private property without charge to the city if requested by police or code enforcement personnel. Abandoned vehicle impounds requested by private property owners are not a police matter and will be subject to rates and fees established by the tow company.

  2. Abandoned vehicles will, if at all possible, be towed during Monday through Friday, eight a.m. to five p.m.

H. Equipment. A tow service provider must have the following equipment:

  1. A minimum of two tow trucks with at least one being a flat bed; each having at least ten thousand pound gross vehicle weight capacity.

  2. Each tow truck shall have a winch and cable; each of a weight bearing or pulling capacity equal to the gross load capacity of the tow truck to which they are attached. Each boom tow truck shall have cables at least one hundred fifty feet long. All winches shall have safety dogs or equivalent braking devices.

  3. Each tow truck shall be maintained in compliance with the provisions of Sections 24605, 25300, 27700, and 27907 of the California Vehicle Code.

I. Other Duties.

  1. Tow service providers shall, upon request by the police department, protect from disturbance and touching all surfaces and contents of an impounded vehicle, until released from such obligation by a representative of the police department.

  2. Allow inspection for impounded or stored vehicles by any person estimating or appraising damage to such vehicles, and shall assist police representatives making such inspections.

  3. Remove hazards and clean up debris at the area of a towing operation.

  4. Comply with all instructions of city dispatchers, police officers, and fire personnel at the scenes of towing operations.

J. Legal Requirements. All tow service vehicles and all tow vehicle operators will meet all legal requirements in respect to proper licensing, mechanical equipment, emergency lighting, towing, storage, lien selling, or junking. Tow service providers will comply with all vehicle code sections pertaining to required equipment (VC27700), lighting equipment (VC24605-06, 25110, 25253), signs (VC27907), drivers (VC2430, 2431, 2436.5, 2436.7, 2432). Tow service providers will also comply with Vehicle Code Section 10652 requiring the reporting of vehicles stored for a period of thirty days or more.

K. Assignment of Tow Requests. The tow service provider will accept the decision of the chief of police as it relates to the assignment of calls, if more than one business or company operates as a tow service provider. The city will make every attempt to equally distribute the calls-for-service on a "rotation" basis. The city retains the right to assign at its election, where in its sole discretion it determines that a particular service or equipment is required and convenience to the particular need, which would permit them, when they feel a particular operator can service a particular need better than another, or has equipment more appropriate than another, to exercise discretion in the assignment.

(Ord. No. 548, 5-26-09)

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10.84.100 - City indemnification.

Tow service providers shall indemnify and save the city and its officers, agents and employees harmless against all claims for damages to persons or property arising out of tow service providers execution of the work, or otherwise by the conduct of the operator or its employees, agents, subcontractors, or others (including the active and passive negligence of the city, its officers, agents and employees) in connection with the execution of the work covered by this agreement and any and all costs, expenses, attorney's fees and liability incurred by the city, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not, except only for those claims arising from the sole negligence or willful conduct of the city, its officers, agents, or employees. Further, tow service provider at his/her own expense shall, upon written request by the city, defend any such suit or action brought against the city, its officers, agents or employees.

Tow service providers shall reimburse the city for all costs and expenses (including but not limited to fees and charges of engineers, attorneys, and other professionals and court costs) incurred by city in enforcing the provisions of this section.

(Ord. No. 548, 5-26-09)

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10.84.110 - Insurance.

A. Tow service provider shall, throughout the duration of its contract, maintain comprehensive general liability and property damage insurance, or commercial general liability insurance, covering all its operations, its agents and employees, performed in connection with the contract including but not limited to premises and automobile.

B. Tow service provider shall maintain the following minimum limits:

General liability: Combined single limit per occurrence—two million dollars;

Automobile liability: Combined single limit per occurrence—two million dollars.

C. All insurance companies affording coverage to the tow service provider shall be required to add the city of Morro Bay as "additional insured" under the insurance policy.

D. All insurance companies affording coverage to the tow service provider shall be insurance organizations authorized by the Insurance Commissioner of the State Department of Insurance to transact business of insurance in the state of California.

E. All insurance companies affording coverage shall provide thirty days' written notice to the city should the policy be canceled before the expiration date. For the purposes of this notice requirement, any material change in the policy prior to the expiration shall be considered a cancellation.

F. Tow service provider shall provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance, in a form satisfactory to the city attorney, concurrently with the submittal of the application. A statement of the insurance certificate which states that the insurance company "will endeavor" to notify the certificate holder, "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives" does not satisfy the requirements. The tow service provider shall ensure that the above quoted language is stricken from the certificate by the authorized representative of the insurance company.

G. Tow service provider shall provide a substitute certificate of insurance no later than thirty days prior to the policy expiration date. Failure by the operator to provide such a substitution and extend the policy expiration date shall be considered a default by tow service provider.

H. Maintenance of insurance by the tow service provider as specified in this chapter shall in no way be interpreted as relieving the tow service provider of any responsibility whatever and the tow service provider may carry, at its own expense, such additional insurance as it deems necessary.

I. Pursuant to Labor Code Section 3700, the tow service provider shall be insured against liability for worker's compensation at the statutory limit or undertake self-insurance in accordance with provisions of that code, and provide certification of such compliance as part of the application process.

(Ord. No. 548, 5-26-09)

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10.84.120 - Police tow service provider files.

The chief of police or designee will maintain a record file of each tow service provider. Such file will include the tow service provider's application for a tow services contract, a copy of the contract, copy of insurance coverages, and a record of all inspections and complaints regarding the respective tow service providers.

(Ord. No. 548, 5-26-09)

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10.84.130 - Disputes and claims.

The city council designates authority to the chief of police and/or the city attorney or authorized agent to settle any claim or dispute involving the city and the tow service provider.

(Ord. No. 548, 5-26-09)

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10.84.140 - Appeal.

Any tow service provider whose application for a permit has been denied or whose permit has been revoked may appeal in writing within five days of notice of such action to the city manager. The city manager or his/her representative will review the decision for reasonableness and may receive evidence and testimony from all interested parties. The decision of the city manager shall be final.

(Ord. No. 548, 5-26-09)

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