Networked Object Lag?

I'm getting some odd behavior with networked pedestrians and vehicles. When the game first starts up it seems to take several moments before they move properly along their waypoints. For the first 20-30 seconds they seems to skip waypoints and end up warping though buildings, which creates a bad visual. After about 30 seconds things smooth out and everything moves as it's supposed to. I'm using the NPC Kit Waypoint template as the foundation.

Is anyone else having issues with networked objects misbehaving on game launch or have any better suggestions for handling street and pedestrian traffic?