Has anyone noticed when maintaining speed just above the 28 MPH cutoff the engine periodically surges in RPMs. Like every minute give or take. I had the dealer check it and they said it was normal.

 

That's the shift point between Mode 1 and 2. There's an on-coming/off-going clutch handoff that occurs right at that point, in either direction, which is probably the source of your RPM surge. The control system does its best to pick one side or the other, and most times you are going either faster or slower. But if you hang right there at 28-29 mph for any length of time it's going to 'hunt' a little bit.