And here's the writeup from the local news station WRAL:
http://www.wral.com/news/local/story/5483707/

Their expert votes Bryozoa.

I thought it was interesting that the sewer line is only 6 inches across. I got the impression that the space was much larger, 18 to 24 inches across.

Congrats, im officially grossed out for the rest of the day. (and that says a lot) How the fuck am i supposed to eat pasta now that ive seen that?!?

In reply to this comment by rychan:
And another expert says it's NOT Bryozoan:
"Dr. Timothy S. Wood who is an expert on freshwater bryozoa and an officer with the International Bryozoology Association. I sent along the video and this was his reponse…

Thanks for the video – I had not see it before. No, these are not bryozoans! They are clumps of annelid worms, almost certainly tubificids (Naididae, probably genus Tubifex). Normally these occur in soil and sediment, especially at the bottom and edges of polluted streams. In the photo they have apparently entered a pipeline somehow, and in the absence of soil they are coiling around each other. The contractions you see are the result of a single worm contracting and then stimulating all the others to do the same almost simultaneously, so it looks like a single big muscle contracting. Interesting video."

This video makes it a little more believable that it could be a clump of these worms
http://www.youtube.com/watch?v=zn9kh7MaFQQ&
if you imagine that they would look deflated and slimy when the water in the pipe is drained.

And another expert says it's NOT Bryozoan:
"Dr. Timothy S. Wood who is an expert on freshwater bryozoa and an officer with the International Bryozoology Association. I sent along the video and this was his reponse…

Thanks for the video – I had not see it before. No, these are not bryozoans! They are clumps of annelid worms, almost certainly tubificids (Naididae, probably genus Tubifex). Normally these occur in soil and sediment, especially at the bottom and edges of polluted streams. In the photo they have apparently entered a pipeline somehow, and in the absence of soil they are coiling around each other. The contractions you see are the result of a single worm contracting and then stimulating all the others to do the same almost simultaneously, so it looks like a single big muscle contracting. Interesting video."

This video makes it a little more believable that it could be a clump of these worms
http://www.youtube.com/watch?v=zn9kh7MaFQQ&
if you imagine that they would look deflated and slimy when the water in the pipe is drained.

Apparently it's been identified as a species of Bryozoan by a local wildlife expert.