The legislation, which passed 7-2, will give University police the ability to operate off campus when investigating on-campus crimes or pursuing a suspect.
The legislation also gives University police the power to make arrests at the magistrate's office in the Chapel Hill Police Department.
Chapel Hill police officers spend 10--12 man hours per month providing the necessary escort for University police officers operating off campus.
University Police Chief Derek Poarch said the change will increase the speed with which University police can respond.
"Time is of the essence in an emergency situation," he said. "It doesn't make sense for (Chapel Hill police officers) to have to stop what they are doing to go with one of our officers."
Council member Mark Kleinschmidt said his opposition was an objection of principle, not a question of the quality or effectiveness of University police. He said he is concerned about the relationship of the citizens of Chapel Hill with law enforcement personnel.
Citizens can more easily hold Chapel Hill police accountable because the officers are hired by the elected members of the Town Council, Kleinschmidt said.
"Citizens have no direct, civilian control over the UNC police," he said. "We only have an indirect, tenuous ability to supervise them."
Citizens have little control over the University Police Department because it is administered by the state, not by the people, he said. "You have to go all the way to the governor before you reach an elected official who has control over (the University police)," he said.