For a small number of machines, the load is very low. So I'd probably let them all query pool servers.
Unless your network is down for quite a bit more than a day, I doubt you will have a huge benefit from a local server. But the setup cost is very low as well, so it's probably worth it. I would pick one machine to be the local server. If it's down, everyone will just tick at the last set rate and should stay together reasonably well. If the designated server is up, then all will use it when the pool is down.
No need to use 'prefer' in this case.
For the designated server:
server 0.pool.ntp.org
[...]
server 127.127.1.1 # local clock
fudge 127.127.1.1 10 # don't trust the clock much
For all the clients:
server 0.pool.ntp.org
[...]
server local.designated.server
- Network up - all clients sync against pool
- Network down/server up - other clients sync against your server
- Network down/server down - other clients tick at last configured rate
If you think 13 is no longer a "small number" and you want to reduce your load on the pool (and you don't want to get a cheap GPS clock), then you could sync one or two machines to the pool and sync the rest to them.
Designated server 1
server 0.pool.ntp.org
[...]
server 127.127.1.1 # local clock
fudge 127.127.1.1 10 # don't trust the clock much
Designated server 2
server 0.pool.ntp.org
[...]
server local1.designated.server
server 127.127.1.1 # local clock
fudge 127.127.1.1 12 # don't trust the clock much
All other clients
server local1.designated.server
server local2.designated.server