Should the City Council elect to establish wards as prescribed by Section 2.07, it shall do so in the following manner:
   A.   Should the City Council deem it appropriate, it may expand the council by ordinance to a maximum of seven members in addition to the Mayor, four of which shall be elected from each of the four wards and the remaining shall be elected at large. The places of the several councilmembers shall be designated as Places No. 1, 2, 3, 4, 5, etc. Councilmembers in Places 1, 2, 3, and 4, shall reside in their correspondingly numbered wards and remain in that ward for the period of time that they serve in that place. Councilmembers in any other places may reside in any ward. All Councilmembers and the Mayor shall be elected by all of the qualified voters of the City.
   B.   After passage of the appropriate ordinance, an election shall be held on the election date next following the passage of said ordinances on the date prescribed by State law. The council may elect to stagger terms by drawing lots for two places to serve one (1) year terms, two places to serve two (2) year terms, and the balance to serve three (3) year terms for the initial period, with all places being elected for three (3) year terms in elections subsequent to the initial election following passage of the above ordinances.