Very interesting! That $264,000/yr fee does seem outrageous - once the system is installed, there should be relatively little maintenance to keep it running.
I wonder if the company will be disabling or retrieving the microphones when the contract ends. It's possible the city is only "leasing" the equipment. Or that the company has build in some sort of self-destruct to prevent cities taking over the network without them...
FWIW, I do think ShotSpotter is a useful technology, but it needs to be designed with some ethical issues in mind (e.g. not collecting and transmitting more information than is required for its stated purpose). I think that Sudo Room taking over and overhauling the existing network in a completely open-source fashion would be a great thing to do. That way people could satisfy themselves that the technology only does what it claims to do.
Patrik