A. The governing body, at its option, may authorize the appointment of a separate district board. In the case of an appointed district board, three of the appointed directors shall serve an initial term to expire following a regular local election and not to exceed six years. Two of the appointed directors shall serve an initial term to expire following a regular local election and not to exceed four years. The resolution forming the district shall state which directors shall serve the longer terms and which shall serve the shorter terms. If a vacancy occurs on the district board because of death, resignation or inability of the director to discharge the duties of director, the governing body shall appoint a director to fill the vacancy, who shall hold office for the remainder of the unexpired term until a successor is appointed or elected.

B. At the end of the appointed directors’ terms, the governing body shall resume governance of the district as its board either directly or through the governing body’s designees or, at the governing body’s option, shall hold an election of new directors by majority vote of the qualified electors or if the election is canceled pursuant to Subsection G of Section 5-11-7 N.M. Stat. Ann., an owner’s determination conducted by ballot shall decide the new directors.