Elliott

This is an appeal from a judgment in favor of defendants following the granting of a motion for a judgment on the pleadings.

The action is one for a declaratory judgment and an injunction seeking an adjudication as to whether the City of Pacific Grove can charge persons residing out of the city limits who are connected to a sewer system of the city a higher rate than persons residing within the city limits without showing a reasonable basis for the higher rate. The trial court granted the motion for a judgment on the pleadings on the basis of Hobby v. City of Sonora, 142 Cal.App.2d 457 [ 298 P.2d 578 ].

Hobby involved an ordinance imposing an annual service charge on two-family dwellings outside the city limits for sewer connections with the city’s sewage system. It was contended that the ordinance was invalid and unconstitutional because of arbitrary discrimination against users residing outside the city and that the city attempted to impair the obligation of its contract. Both contentions were found to be without merit. It was conceded by the plaintiffs that the city could not be compelled to set up a schedule of rates which would apply equally to users within the…