The city is now requesting the report from Ontario's labour minister in regard to collective bargaining with the union representing inside workers.
The move means the city and the union — CUPE Local 79 — are a step closer to a possible work stoppage.
When both sides are notified of a "no board" report, the union will be in a legal strike position and the city in a legal lockout position about 17 days from that date.
Deputy mayor Doug Holyday says talks are continuing and city negotiators remain hopeful an agreement can be reached.
CUPE Local 79 represents about 23,000 inside workers.
(AM640, The Canadian Press)