The new ordinance, which is the first of its kind in Chapel Hill, was prompted by a N.C. General Assembly decision eight months ago that gives Chapel Hill and Greenville permission to regulate local towing signs.
The town ordinance, set to go into effect March 1, requires that private lots in downtown Chapel Hill post 24-inch by 24-inch signs clearly designating the lots as tow-away zones. The ordinance does not regulate towing fees.
Resident complaints and confusion about downtown parking prompted the council's action.
Some residents said they were towed from lots without proper notice, sometimes resulting in altercations and violence between tow truck operators and motorists.
Less than a year ago, Chapel Hill resident Jason Osborne filed one such complaint.
He reported that his car was towed from the Kinko's parking lot at 114 W. Franklin St. even after the manager of Kinko's allegedly requested the vehicle not be towed.
The complaint states that Osborne later alleged that after he physically attempted to prevent the towing, tow truck operator George S. King dragged him across Kinko's parking lot, choked him and verbally threatened him while holding a metal object.
King could not be reached for comment Tuesday.
Dorothy Bernholz, director of Student Legal Services, said certain towing companies have been known to have frequent problems in the past.