In a large pot or Dutch oven over medium heat, cook the sausage, beef, onion, and garlic until well browned; drain fat. Stir in crushed tomatoes, tomato paste, tomato sauce, and water. Mix in sugar and season with basil, fennel seed, Italian seasoning, salt, and pepper. Reduce heat to low, cover, and simmer 1 1/2 hours, stirring occasionally.