Taradale resident Emily Otto raised the issue during her campaign to win a seat on the council in a by-election this year.
She was unsuccessful in her bid for election but did convince the council to revisit the matter.
It was discussed at a meeting of the council's city services committee yesterday, attended by Mrs Otto and 22 residents of Atawhai and nearby Rowan House, a residential facility for people with disabilities.
The Taradale residents arrived at the meeting with a petition, signed by 134 people, supporting the building of a "safer pedestrian facility" on the road.
A report from council staff prepared for the meeting said the site still did not meet the requirements for a pedestrian crossing, and it was not a safe option.
One option, the installation of a median island about 80m from Atawhai, would remove about 12 on-street car parks and cost about $20,000.
Napier Mayor Bill Dalton said the council would be "buying a big fight" with the community if it wanted to remove the carparks.
The road had a good safety record but engineering advice was that the crossing proposal posed a danger and Atawhai residents were unlikely to walk 80m to use it, he said.
Councillors agreed with his proposal that the council undertake consultation with residents "to see if there is a better way forward".
Atawhai resident Frank Nicholls, who has been campaigning for a crossing for several years, said he and other residents of the retirement village would be happy to walk 80m to the suggested crossing.
Another Atawhai resident, Ann Cornwell, said she was concerned village residents would be left out of the council's planned consultation process.
"We are the ones most affected by it but I'll lay a bet they don't come and consult with us," Mrs Cornwell said.
