Upon the submission by the planning commission of its report, or if it shall fail to submit its report, upon any matter or matters referred to it as provided in this chapter, within the time fixed for the submission of such report, or within the time as extended by agreement, as hereinbefore provided, then, in either case, the referring authority shall be free to exercise all its powers and authority over or concerning the matter or matters so referred and may take such action thereon as may seem proper, and it shall not be bound in such action by anything contained in the report thereof, if any, by the planning commission. Provided further, that in any case, where the referring authority shall reach a determination or decision adverse or contrary to the report of the planning commission upon any matter or matters referred to it as herein provided, such referring authority may, if it so elect, waive its right to take such adverse or contrary action, and may thereupon return the report with all its objections thereto to the planning commission, whereupon the matter or matters contained in or covered by the reference upon which such report was made, shall be restored to its status as unreferred matters or matter, and no action thereon shall be thereafter had or taken by the board, commission, commissioner, office, officer or officers having final authority to act thereon until the same shall again be referred to the planning commission for report thereon as hereinbefore provided. (Prior code § 7007)