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Engine Installation Issue

I'm running through the installation guide at https://locomotive-v3.readme.io/docs/getting-started-with-locomotive to get Engine up and running on my local machine and getting the following error:

$ bundle exec rails generate locomotive:install
Could not find generator 'locomotive:install'. Maybe you meant 'coffee:assets', 'model' or 'integration_test'
Run `rails generate --help` for more options.

Anyone run into this and have a solution. Runnings lastest version of OS X and followed the install guide of wagon at https://locomotive-v3.readme.io/docs to get Ruby and Rails up and running.