Well it's no surprise why this area was wet spot. This is what we found in the pipe when we dug it up. The connection collapsed who knows when and has been filling up with dirt and gravel for quite some time.
To fix it we severed the connection and clean out as much debris as possible. Then we snaked the lower half of the drain and reconnected new fittings.
Notice the nice clean and neat working area. Burlap rules!