Are there published algorithms for on-line creation of AVL trees from ordered streams?
If I understand your question correctly and the elements arrive in sorted order, I believe the usual bottom-up AVL tree insertion algorithm meets your criteria. In particular, insert-only AVL trees have $O(1)$ amortized (and $O(\lg n)$ worst-case) update time. Simply maintain a pointer to the last element of the tree and perform each insertion at that location.