Actually, just found a decent explanation for the error and a C3D workaround. Here’s what the following handout says:
“NOTE: For this project, the projection has a base unit of US Survey FEET. The GeoTIFF metadata also has abase unit of US Survey FEET. When a surface is created from a DEM, it appears that Civil3D erroneously
assumes that a DEM with a unit of feet is International FEET.
As the tutorial project is working with a state plane reference system, this causes the imported DEM grid to be shifted both south and west of where it should actually land.
One U.S. survey foot is equal to 1.000002 International Feet.
For this tutorial, Civil3D places the surfaces the surface with an error that is scaled from the origin of the stateplane system.
If the project is in meters then this shift will not appear. Note that this error appears to only appear when DEMs are IMPORTED into Civil3D and the units are in US Survey Feet.
Solution: Correct the DEM shift error by moving the surface 6 feet east and 20 feet north.”