Everyone in the show is dead.
They never made it to Portland, having died of eight-bit dysentery in Junior High. Portlandia takes place in the same world as A Series of Unfortunate Events.
One of the books in the series features a railway station whose attached shops include both a blacksmith's and computer repair shop - a juxtaposition that would seem downright normal in Portlandia. Portlandia takes place in the same world as Transmetropolitan.
The entire setting of Portland has been painstakingly, but inaccurately, recreated in one Transmet's Reservations. The Mayor's last name is actually Mayor.
This is why everyone calls him Mayor. The Mayor is actually Dale Cooper.
I mean, both cities are in the Pacific North West, we never find out the Mayor's name (only ever referred to as Mr. Mayor or Mayor), he's a pretty kooky guy kinda like Coop and he's comfortable around eccentric townsfolk too!