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Pismo Beach, CA Business Licensing & Operations: Towing Companies (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Contract term
One year, July 1st through June 30th, automatic renewal
Response time
Two tow vehicles within twenty minutes
Rate cap
No more than local area California Highway Patrol rates
Yard location
Within five miles of city boundaries, six foot screening fence
Insurance
One million dollars general and automobile liability each
Contracting official
Chief of police, with City Council recommendation

Summary

In the City of Pismo Beach, California, only tow companies under a one-year contract with the Police Department can take police-requested tows. Contractors must answer within twenty minutes, keep a yard within five miles of the city, and charge no more than the local California Highway Patrol rates.

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. ... The provisions of this chapter 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. ... ... A. Towing fees of the tow service providers will be reasonable and shall not exceed those rates established by the local area California Highway Patrol. ... ... 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.

Full Breakdown

Chapter 10.28 of the Pismo Beach Municipal Code regulates police towing services. Section 10.28.010 lets the City Council regulate rates and fees for tows requested under California Vehicle Code Section 21100(g), and it directs the chief of police to enter into and regulate contracts with private tow companies. The chapter applies only to towing and storage contracted as a result of police activity or in the performance of duties as a city contracted provider.

Contracts run for one year, effective July 1st through June 30th of the following year, and renew automatically unless either party cancels (Section 10.28.030). An applicant files with the chief of police a copy of its California Highway Patrol rotation tow listing application, current general and automobile liability policies, a workers compensation policy, a City of Pismo Beach business tax certificate, and photographs of its storage areas and of all tow trucks. The initial application carries a nonrefundable fee set by City Council resolution (Section 10.28.040).

Section 10.28.070 caps towing fees at the rates established by the local area California Highway Patrol, requires the rates to be posted in the provider's office where the public can see them, and bars any rate increase until the chief of police authorizes it in writing. If the Police Department accepts responsibility for a tow, no storage fee is charged to the city or anyone else.

Section 10.28.090 sets the operating standards. Providers must be available around the clock, seven days a week, and be able to respond with a minimum of two tow service vehicles within twenty minutes. Police-originated calls cannot be subcontracted. A provider must have operated in San Luis Obispo County for at least six months before requesting a contract, keep a physical location within five miles of the city boundaries, and store towed vehicles behind a six foot high view-obscuring fence. Equipment must include a minimum of two boom tow trucks, each with at least ten thousand pound gross vehicle weight capacity. Section 10.28.130 requires one million dollars of general liability and one million dollars of automobile liability coverage, with the city named as additional insured.

Violations & Fines

The chapter enforces itself through the contract. Under Section 10.28.060 the city can terminate a provider that stops answering calls, breaks the chapter or the fee schedule, or misses the twenty-minute response time without first telling the police dispatcher. Termination for cause takes effect on at least three days' written notice, and termination for the city's convenience on at least five days' notice. A provider that cannot respond loses its turn in the rotation, and any charge tied to inadequate training can be disallowed.

Frequently Asked Questions

Who decides which tow companies work police calls in Pismo Beach?
The chief of police is authorized to enter into and regulate contracts with private tow companies. The chief can recommend a contract to the City Council if the operator meets every requirement of Chapter 10.28. Only operators under contract with the city take part in the distribution of city towing orders (Section 10.28.030).
What can a contracted tow company charge for a police tow?
Towing fees must be reasonable and cannot exceed the rates established by the local area California Highway Patrol. The rates must be posted in the provider's office, and no increase takes effect until the chief of police authorizes it in writing. If the Police Department accepts responsibility for a tow, no storage fee is charged.
How quickly must a tow truck arrive after a police call?
A provider must be capable of responding a minimum of two tow service vehicles within twenty minutes. If it cannot respond as required, it must tell the police dispatcher so another company can be summoned. Under Section 10.28.090 the provider that cannot respond loses its rotational turn.
Does Chapter 10.28 cover every tow in Pismo Beach?
No. The chapter applies 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. Section 10.28.010 sets that limit, so tows outside police requests fall outside this chapter.

Sources & Official References

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