Impound fee for a stolen vehicle

So I had an old motorcycle, worth about $500. It was stolen and I reported it to the police and cancelled my insurance ($1k deductible liability only). The police found the bike a few days later and called me. I agreed to have it towed because the bike was not drivable (cut wires, missing battery), and I was at work and couldn't immediately leave.

Now, the towing company wants $300 plus's $60 per day for storage fees. Obviously, the bike is not even worth paying these fees, so I asked if I could just give them the bike and call it a day. The towing company says that if I give them the bike then I STILL owe them the fees incurred, but at least the $60 per day will stop. They also say that my only other option is to refuse to pay, then they will store the bike for 40 days, charge me $2700 (300+40x60), sell the bike, and send the difference (~$2200) to collections.

So my question is, can they legally do this to me?

Edit: I live in California.