Switching to gulp-ruby-sass and configuring per below solved the issue:
gulp.task('styles', function() {
return gulp.src(paths.sass)
.pipe(sass({require: ['susy']}))
.pipe(gulp.dest('css'))
.pipe(rename({ suffix: '.min' }))
.pipe(minifycss())
.pipe(gulp.dest('css'))
.pipe(notify({ message: 'Styles task complete' }));
});