For the fresh tomato: Boil water in a large stock pot. While the water is boiling, cut an X in the bottom of each tomato. Prepare a large bowl with ice water and set aside. Place the tomatoes in the boiling water for 1 to 2 minutes. Remove with a slotted spoon and place in the ice water to stop the cooking process. Remove the skin from the tomatoes and cut each in half. Over bowl topped with a mesh bowl, squeeze the juice and seed from the tomatoes. Dice the tomaotes and place the tomatoes along with the juice in a bowl and set aside.
For the Sauce: Heat oil in a large stock pot over medium heat. Add the onions and peppers, saute for 8-10 minutes, until softened. Stir often. Add sugar, garlic, Mrs. Dash, dried basil, oregano and red pepper flakes and balsalmic vinegar. Stir and cook for 1 minute. Add the bay leaves, broth, parm. cheese, fresh and canned tomato. Stir, reduce heat to low and simmer, covered for 50 minutes, stirring often. Add the fresh herbs, stir and continue to simmer for and addtional 40 minutes, stirring often. Remove from heat. If the sauce is too chunky for you, puree to desired consistency.