The directors shall serve without compensation, and may be reimbursed for authorized out of pocket expenses incurred in the fulfillment of their duties. Directors shall serve until their respective successors are appointed and qualified. Terms of directors shall be for three years and staggered so that three expire on June 30 of each year. Whenever a vacancy on such authority shall occur by reason of resignation, death, removal from the city or the council district, or removal for failure or neglect to perform duties of a director, such vacancy shall be filled for the unexpired term. All appointments and removals of directors of the authority shall be made by the mayor, with the approval of the city council, evidenced by resolution. Every appointee who shall fail within ten days after notification of appointment to file with the city clerk an oath or affirmation to perform faithfully, honestly, and impartially the duties of office, shall be deemed to have refused such appointment, and thereupon another person shall be appointed in the manner prescribed in this section.

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The city of Superior, Wisconsin shall transmit the name of one person to the mayor and council of the city of Duluth, to be appointed by the city of Duluth to serve as one of the nine directors during any time the city of Superior agrees with the authority to provide transit service to Superior. The term and other conditions of service shall be the same as that of other directors except that the term shall end if the city of Superior ceases to contract for service. If the city of Superior does not transmit a name or the city of Duluth does not appoint the named person, the city of Duluth may appoint another person.