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SMS Saving Vertical Projection for a LIDAR file

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I have a LIDAR DEM file (in ACSII Grid format loaded as a GIS object) that I am using to pull elevation for my mesh and cross sections. The vertical projection is NAVD88 US Survey Feet. However, every time I reopen my SMS file the units reset to meters. Chaning the project from local to NAVD88 and saving the SMS file does not help.

Does anyone know a way to get the vertical project to be saved in GIS data?



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I had a similar problem, my x and y stayed as feet, but SMS converted to z data to feet.  The problem was that the raster data was already in feet so my imported data was off by a factor of 3+.  After playing around for some time trying to reproject, etc.. etc... I ended up using 3D Analyst and using the Raster Math tool to adjust my z values.  

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