The pipe ran underneath the driveway apparently, but I don't know where it was coming from. We just decided to move it away from the sidewalk so that we could put the border down. We only had to move it about 3 inches so it wasn't that big of a deal. I'm guessing it has something to do with the poor subsurface drainage. There was also some sort of thin rubber sheet wrapped around the bottom of the pipe. We had to cut the rubber becasue it was getting really old and torn. That was only toward the end though.
The border looks great though. Now we just need to put the weed block paper and the rest of the mulch down and we'll be done with this massive project!!