Keeping the hot and sweet peppers separate, chop off the stems then cut each of the peppers in half lengthwise, and then in half again to quarter each of them. Set aside.
In a saucepan over medium heat, combine the vinegars, salt, sugar, oregano, bay leaf, garlic, olive oil, peppercorns, and hot peppers. Bring to a simmer.
As soon as the mixture comes to a simmer, add the bell pepper slices. Simmer for 15 minutes, or until the peppers look swollen and translucent.
Remove from heat, and allow the mixture to cool in the saucepan. Transfer the peppers to a container using a slotted spoon, then pour the liquid over the top. Store in an airtight container the refrigerator for up to 1 month.