Stop in for a cup of coffee

Surging and hesitating sounds like the carburetor... Try spraying some carb or brake parts cleaner on it and soak it... Also, check to make sure the fuel filter is not clogged...

Is it surging on light acceleration? steady speed? Both?

Hi Karl yes, light acceleration and steady speeds. It clears up on the interstate. The fuel filter is the transparent kind, it looks ok.