Council approves agreement to design 2-million-gallon Preston water tank, indemnity clause to be revised

The Preston City Council voted to approve a professional services agreement with Keller & Associates to design and engineer a 2,000,000-gallon concrete water tank for the city.

Colter Hollingshead of Keller & Associates told the council the project was included in the city’s water facility planning study and would add storage to improve resiliency for the city’s spring-line supply and provide additional fire-flow capacity. Hollingshead said the city received a $3.75 million STAG grant administered through EPA to cover the large majority of anticipated construction costs. “So right now, rough estimate at this point is around $4,000,000, and it’s $3.75,” Hollingshead said, adding the city’s share could be roughly $250,000 depending on bid results.

City legal counsel flagged paragraph 8 of the draft contract — an indemnity and limitation of liability clause — as problematic under the Idaho constitution because open-ended indemnification can obligate future unbudgeted expenditures. The counsel recommended alternative language used in other local contracts. Hollingshead said Keller was willing to work with the city to revise the clause. Council member Terry Larson moved to approve the agreement subject to negotiating the indemnity language with city counsel; Todd Thomas seconded and the mayor announced the motion carried unanimously.

Council members and staff said the grant represented a significant funding opportunity that had been pursued over several years. The council did not set a firm construction start date; Hollingshead said design would proceed quickly but actual construction could occur in 2026 or 2027 depending on contractor availability and bid timing.