[quote=Guilty Spark]1) How often are Representatives elected?[/quote]

Every three years.

[quote=Guilty Spark]2) Political groups have their own territories?[/quote]

Yes, political groups have their own territories.
The current problem of the groups is that they are more in number and have fewer members and supporters. With the right to form your own group and defend your interests publicly, many of the people, who consider themselves "a mix", have formed their own little circles. This creates a weak uneven power distribution. The top three at present were the first to be founded and thus have an established reputation and members. The rest are smaller and still have many steps to climb. 
Another problem that arises with the number of political groups is when there is more than one group in a district.
If there are two political groups in one district and one claims to be defending only a part of the district's inhabitants, then the district gets split into two areas and each group reports for its area. However, if both political groups claim to be defending the entire district's inhabitants (and such is the case in the majority of times), both need to submit reports for their district. In the latter case, if one report should contradict the other, the leaders of both parties will be called by the mayor and it will be decided whether to have an open debate on the matter or open a poll for the residents to give their opinion. 
Due to the higher number of political groups, quarrels between them are daily broadcasted on television. Of course, there is rarely any violence and the case gets closed after a short period of barking at each other. (Ah, I see this so often on television.)

[quote=Guilty Spark]What happens when one falls out of the top three (or suffer any shift in their ranking, really)?Does their territory suffer any consequences?[/quote]

After the votes from the Voting day have been accounted for, if a political party has more down-votes than up-votes, a team of investigators is tasked to discover if the voting was not a fraud, schemed by another political group. Simultaneously, detectives are given the order to investigate the members with the most negative opinion. If the voting was not a fraud, none of the political group's suggestions, requests or the like will be accepted by the council, regardless of their content, for a year. If the political party scores miserably three years in a row, it is disbanded.
Of course, the people the political party is meant to represent can also file a complain and request against the group, which can be accepted by the council.

[quote=Guilty Spark]3) The Political Group voting system, particularly the down-voting ability, seems exploitable. Couldn't, with the appropriate organization, voters target key group members? Perhaps it would be better if only members of that Political Group could down-vote, or something similar. So that their interests are protected from external tampering. Or only people residing within their area, or something.[/quote]

The law states that the voting must be done honestly and without prejudice, but what is life without a little corruption? A wonderful place, in my opinion, but Oblak City is in no paradise world. People lie and bad things, such as buying votes, happen. It's the police's job to stop those misdeeds, not mine. ;)

If a member of a political group, who has thus far had good results, suddenly gets a plummeting score, they have the right to object and call for an investigation. 

[quote=Guilty Spark]4) Given that they hold legislative and executive power, I imagine the Council has created a lot of bureaucratic organizations and "Federal Departments" to delegate the responsibility of carrying out laws to? Are these hypothetical bureaucracies malleable? Changing often, or remaining stagnant? And, finally (for now), I imagine they have Ministers/Administrators/Department Heads as well?[/quote]

...And here I thought I still had 11 days until school. XD

Not, there's no real need for them, in my opinion, seeing as this isn't an incredibly large country, but a mere independent city. The affairs commonly handled by the ministers or federal departments are done by the council.

You seem acquainted with the system, Guilty Spark. That is at least my impression. Do feel free to give me your suggestions, if you have any. I would like a helping hand when it comes to these matters. =3