Preheat oven to 400 degrees F. Line a baking sheet with foil and set aside.
Mix the pork, beef, Italian seasoning, egg, parsley, salt and pepper together in a large bowl until well-combined. Form meat mixture into meatballs using 2-3 tablespoons of mixture. Arrange meatballs on the prepared baking sheet.
Bake for 20 minutes or until cooked through.
Meanwhile, add the olive to a large pan over medium heat. Once hot, add the chopped onion and saute for five minutes. Add the garlic, tomatoes, bay leaf, and pepper; stir well and bring to a boil.
Reduce heat to low and gently simmer 20-25 minutes. Add the cooked meatballs and gently stir to coat.