The title 'Arizona Bay' does indeed refer to the disappearance
of California (or more specifically Los Angeles) into the Pacific ocean; however, as explained
in the recording, the mechanism by which this is fulfilled is not by a mammoth troupe of boy scouts, but by 'The Big One':
"Is that the big one I hear in the background? Bye you lizard scum, bye!"
Ha ha ha ha! It's gone... it's gone, it's gone, it's gone. oh,.. it's gone... all the shitty shows are gone... all the idiots screaming in the fucking wind are dead, I love it... leaving nothing but a cool, beautiful serenity, called... Arizona Bay. Ha ha! That's right! When LA falls in the fuckin' ocean and is flushed away, all it will leave is Arizona Bay."
The boy scouts explanation is mentioned in the sleeve notes as a dream of Bill's.