5. Each component area, including municipal corporations, cities, towns, irrigation districts, and users contracting for a substantial service from the district shall be entitled to representation on the board of directors, in accordance with the ratio which their individual, actual and contingent water storage for which it has contractual obligations to the master conservancy district bears to the total water storage for which there are contractual obligations with said district. In fixing the number of directors to represent a master conservancy district, each component area or user contracting for a substantial service from the district shall be entitled to at least one director, but no such area or user shall be entitled to more than three directors. The total number of directors and the representation of each such area or user may be changed by the district judge whenever a reallocation is considered by said judge to be necessary for providing proper representation. Provided, however, that if a master conservancy district has been organized on or before January 5, 1957, under the provisions of this title, which has as a part of its purpose the inclusion of a proposed irrigation district or districts, each such proposed district shall be entitled to one representative on the board of directors of the master conservancy district for a period of five (5) years from the effective date of this act; provided, however, that if the proposed irrigation district or districts, as hereinabove described, are not legally organized and have not executed a contract for the repayment of the irrigation costs with the master conservancy district within the aforementioned five-year period, then said offices of directors representing the irrigation interests shall be discontinued and shall have no further representation on said board of directors; provided, further, that if the proposed irrigation districts are organized and have contracted with a master conservancy district under the laws of this state, then said directors shall be elected or selected as provided in this section pertaining to the second board of directors. The governing body of each such area or user such as a municipal corporation, city, town, irrigation district, conservation district, and/or other user may select or cause to be elected the person or persons to represent them on the board of directors of the master conservancy district and shall submit the name or names of those selected to the district judge who shall appoint said person or persons to membership on the board of directors. Only a freeholder who is a qualified elector of this state as provided by law and residing within any county in which the district or any part thereof is located shall be eligible to be a member of the board of directors. A person who is a nonelected employee of a municipality that is a component area or a user of a master conservancy district shall not be eligible to be a member of the board of directors of that district. Any person serving on a board of directors of a master conservancy district as of the effective date of this act who is not in compliance with the provisions of this paragraph shall be allowed to serve the remainder of his or her term of office and shall be eligible for reappointment or re-election to the board of directors.