Robert,
I believe that this depends upon where your are working. Here in Loveland, CO. they define a maximum algebraic difference befor a curve is needed, not a minimum. As stated in the "Larimer County Urban Area Street Standards" adopted January 2, 2001 in Chapter 7.4.1.B.
2. Grade Breaks:
"No single point grade break shall exceed 0.40 percent."
3. Requirements for Using Vertical Curves:
"Vertical curves are required for grade changes that exceed 1.0 percent. Both centerlines and the curb and gutter flowlines shall be designed with vertical curves to meet the requirements of Standard Drawings 7-17 and 7-18. A series of grade breaks may be used in lieu of a specified vertical curve as long as the series of breaks meet the vertical curve criteria in the Standards for the design speed. K-values for design shall conform to Table 7-3 or Table 7-4.
"In sag curves on flow line, the minimum grade requirement shall override the slope within the vertical curve."
What happens between 0.4% and 1.0%? I don't really know but that's how it's written. Now, aren't you glad you don't work in Larimer County?
Brian