canvas-lms with rds-postgres 9.5.2

Here is my development section of /var/canvas/conf/database.yml

development:
  adapter: postgresql
  encoding: utf8
  database: D2CANVAS
  host: d2canvas.cv3fz240lfke.us-east-1.rds.amazonaws.com
  username: d2canvas_user
  password: d2canvas_user
  timeout: 5000

here is the command
[ec2-user@ip-10-179-156-220 canvas]$ RAILS_ENV=development  $GEM_HOME/bin/bundle exec rake db:initial_setup
1: development:public
1: development:public
pg_dump: [archiver (db)] query failed: ERROR:  permission denied for relation pfm_version_seqnr_seq
pg_dump: [archiver (db)] query was: SELECT sequence_name, start_value, increment_by, CASE WHEN increment_by > 0 AND max_value = 9223372036854775807 THEN NULL      WHEN increment_by < 0 AND max_value = -1 THEN NULL      ELSE max_value END AS max_value, CASE WHEN increment_by > 0 AND min_value = 1 THEN NULL      WHEN increment_by < 0 AND min_value = -9223372036854775807 THEN NULL      ELSE min_value END AS min_value, cache_value, is_cycled FROM pfm_version_seqnr_seq
rake aborted!
Error dumping database
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/tasks/switchman.rake:204:in `structure_dump'
/home/ec2-user/.gems/gems/activerecord-4.0.13/lib/active_record/tasks/database_tasks.rb:143:in `structure_dump'
/home/ec2-user/.gems/gems/activerecord-4.0.13/lib/active_record/railties/databases.rake:289:in `block (3 levels) in <top (required)>'
/home/ec2-user/.gems/gems/activerecord-4.0.13/lib/active_record/railties/databases.rake:51:in `block (2 levels) in <top (required)>'
/home/ec2-user/canvas/lib/tasks/canvas.rake:229:in `call'
/home/ec2-user/canvas/lib/tasks/canvas.rake:229:in `each'
/home/ec2-user/canvas/lib/tasks/canvas.rake:229:in `block in <top (required)>'
/home/ec2-user/.gems/gems/activerecord-4.0.13/lib/active_record/railties/databases.rake:45:in `block (2 levels) in <top (required)>'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/tasks/switchman.rake:65:in `call'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/tasks/switchman.rake:65:in `each'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/tasks/switchman.rake:65:in `block (4 levels) in shardify_task'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/switchman/database_server.rb:97:in `unshackle'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/tasks/switchman.rake:64:in `block (3 levels) in shardify_task'
/home/ec2-user/.gems/gems/switchman-1.5.3/app/models/switchman/shard_internal.rb:346:in `block (2 levels) in with_each_shard'
/home/ec2-user/.gems/gems/switchman-1.5.3/app/models/switchman/shard_internal.rb:553:in `block in activate'
/home/ec2-user/.gems/gems/switchman-1.5.3/app/models/switchman/shard_internal.rb:79:in `activate'
/home/ec2-user/.gems/gems/switchman-1.5.3/app/models/switchman/shard_internal.rb:552:in `activate'
/home/ec2-user/.gems/gems/switchman-1.5.3/app/models/switchman/shard_internal.rb:344:in `block in with_each_shard'
/home/ec2-user/.gems/gems/activerecord-4.0.13/lib/active_record/relation/delegation.rb:13:in `each'
/home/ec2-user/.gems/gems/activerecord-4.0.13/lib/active_record/relation/delegation.rb:13:in `each'
/home/ec2-user/.gems/gems/switchman-1.5.3/app/models/switchman/shard_internal.rb:340:in `with_each_shard'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/tasks/switchman.rake:59:in `block (2 levels) in shardify_task'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/switchman/shackles.rb:22:in `activate'
/home/ec2-user/.gems/gems/switchman-1.5.3/lib/tasks/switchman.rake:58:in `block in shardify_task'
/home/ec2-user/canvas/lib/tasks/db_load_data.rake:241:in `block (2 levels) in <top (required)>'
/home/ec2-user/.gems/bin/ruby_executable_hooks:15:in `eval'
/home/ec2-user/.gems/bin/ruby_executable_hooks:15:in `<main>'
Tasks: TOP => db:structure:dump
(See full trace by running task with --trace)