Noticed in city traffic the temperature goes 2 lines past the 200 mark. Versus at hwy traffic where it stays between 1 ans 2 marks under the 200. I was wondering at what temp the fans would come on and if this temp is considered normal.

I would recommend you install a 180 F thermostat.
Mine has never gone past straight up.
The fans will turn on at about 210 F.
I like to keep mine 2 notches below staight up....or about 175 F....all the time. The only way to do this without replacing the radiator with more rows of fins, is to install a switch to keep the fans on high speed.
When the A/C is on, the low speed fans turn on.
If I turn off the A/C and turn on the low speed fans, it stays about 1 notch below straight up .....or about 185 F.
GM designed the engine to run most efficiently (for emissions) at a high temp of 195 - 220 F.

I do have a 180 t-stat installed.

Oh, well thats sounds like a problem then. How many miles on your car? Have you had the coolant flushed since you bought it? Have you ever let the res run low? Is your water pump making any noise?

only have 40k on it. Never flushed it. Maybe need to bleed the system I don't know. any other suggestions would be appreciated.

The important thing is not to let the coolant get low in the coolant over flow. Dexcool will crystalize and plug passages in the engine. There is a bleed on top of the thermostat housing to let out air, with the motor running crack it open until a wee bit of coolant starts to flow out.

do you let the motor running when bleeding or off and warm and do you crack the screw until all bubbles are gone or just crack it for a second,-anyone can verify that?.

I let it run hot and crack it open, the thermostat needs to be open (hot) to get the coolant flowing.
You may also want to remove your accesory belt and check the water pump for any movement, up and down, in and out. There should be none.