Hey everyone. Here is a quick update...
We purchased and tested a few different surge protectors on a bunch of different devices. Among the five surge protectors we tested, this one seems to solve the problem. The USB input is nice because if someone needs to use the outlet, they dont have to unplug the arduino.
I'm going to give the capacitor a shot and see what happens. This was just a quick-fix solution. Its been a week since I started using the surge protector, and that device is still alive (where as all the other ones are dead).