Unfortunately they probably do mean inside of the port'o'pooper, the snakes probably crawl up in there for a cool place to hide or for whatever reason. One person getting bit or one lawsuit is all it takes to cause crazy signs like that to be posted.
On a side note, I always look down inside the port'o'hole before i do my buisness, just in case something is lurking down there, and I ended up rescuing a squirel(sp?) one time at Lake Perris. Poor guy was probably never the same, his sense of smell anyway x(