The governing body of a city which has established a municipal arts council shall appoint a board of not less than five nor more than nine directors who must be residents of the city as members of the council. The terms of office of the members of the first council appointed under this section shall be staggered so that, as near as possible, an equal number of terms will expire in each of the first three years. The members, at their first meeting, shall determine the length of their respective terms by lot. Thereafter, the number of members required to fill expired terms shall be appointed each year, and thereafter each member shall hold office for a term of three years from the first day of July in the year of the appointment and until a successor has been appointed. No member of the council shall serve for more than two consecutive terms, after which an interval of one year must elapse before the same member may be reappointed. All vacancies on the municipal arts council shall be reported by the council to the governing body of the city and shall be filled by the governing body. Appointments made to fill unexpired terms shall be for the remainder of the term only. No compensation shall be paid or allowed to a council member. Immediately after the appointment of its members, a municipal arts council shall meet and organize by electing a president and a secretary.