chore: complete v1.0 MVP milestone

Archive roadmap, requirements, and phase directories to milestones/.
Evolve PROJECT.md with validated requirements and key decisions.
Reorganize ROADMAP.md with milestone grouping.
Delete REQUIREMENTS.md (fresh for next milestone).

.planning/milestones/v1.0-phases/01-foundation-and-collection/01-02-SUMMARY.md

@@ -0,0 +1,132 @@
+---
+phase: 01-foundation-and-collection
+plan: 02
+subsystem: api
+tags: [hono, drizzle, zod, sqlite, crud, tdd, image-upload]
+
+requires:
+  - phase: 01-foundation-and-collection/01
+    provides: SQLite schema, shared Zod schemas, test helper, Hono server scaffold
+provides:
+  - Item CRUD service layer with category join
+  - Category CRUD service with Uncategorized reassignment on delete
+  - Computed totals (per-category and global weight/cost/count)
+  - Image upload endpoint with type/size validation
+  - Hono API routes with Zod request validation
+  - Integration tests for all API endpoints
+affects: [01-03, 01-04]
+
+tech-stack:
+  added: []
+  patterns: [service-layer-di, hono-context-db-injection, tdd-red-green]
+
+key-files:
+  created:
+    - src/server/services/item.service.ts
+    - src/server/services/category.service.ts
+    - src/server/services/totals.service.ts
+    - src/server/routes/items.ts
+    - src/server/routes/categories.ts
+    - src/server/routes/totals.ts
+    - src/server/routes/images.ts
+    - tests/services/item.service.test.ts
+    - tests/services/category.service.test.ts
+    - tests/services/totals.test.ts
+    - tests/routes/items.test.ts
+    - tests/routes/categories.test.ts
+  modified:
+    - src/server/index.ts
+
+key-decisions:
+  - "Service functions accept db as first parameter with production default for testability"
+  - "Routes use Hono context variables for DB injection enabling integration tests with in-memory SQLite"
+  - "Totals computed via SQL aggregates on every read, never cached"
+
+patterns-established:
+  - "Service layer DI: all service functions take db as first param, defaulting to production db"
+  - "Route testing: inject test DB via Hono context middleware, use app.request() for integration tests"
+  - "Category delete safety: guard against deleting id=1, reassign items before delete"
+
+requirements-completed: [COLL-01, COLL-02, COLL-03, COLL-04]
+
+duration: 3min
+completed: 2026-03-14
+---
+
+# Phase 1 Plan 02: Backend API Summary
+
+**Item/category CRUD with Zod-validated Hono routes, computed totals via SQL aggregates, image upload, and 30 passing tests via TDD**
+
+## Performance
+
+- **Duration:** 3 min
+- **Started:** 2026-03-14T21:37:37Z
+- **Completed:** 2026-03-14T21:40:54Z
+- **Tasks:** 2
+- **Files modified:** 13
+
+## Accomplishments
+
+- Complete item CRUD service layer with category join queries
+- Category CRUD with Uncategorized reassignment on delete (transaction-safe)
+- Per-category and global weight/cost/count totals via SQL SUM/COUNT aggregates
+- Hono API routes with Zod request validation for all endpoints
+- Image upload endpoint with file type and size validation
+- 30 tests passing (20 unit + 10 integration) built via TDD
+
+## Task Commits
+
+Each task was committed atomically:
+
+1. **Task 1: Service layer with tests (RED)** - `f906779` (test)
+2. **Task 1: Service layer implementation (GREEN)** - `22757a8` (feat)
+3. **Task 2: API routes, image upload, integration tests** - `029adf4` (feat)
+
+## Files Created/Modified
+
+- `src/server/services/item.service.ts` - Item CRUD business logic with category join
+- `src/server/services/category.service.ts` - Category CRUD with reassignment on delete
+- `src/server/services/totals.service.ts` - Per-category and global totals aggregation
+- `src/server/routes/items.ts` - Hono routes for /api/items with Zod validation
+- `src/server/routes/categories.ts` - Hono routes for /api/categories with delete protection
+- `src/server/routes/totals.ts` - Hono route for /api/totals
+- `src/server/routes/images.ts` - Image upload with type/size validation
+- `src/server/index.ts` - Registered all API routes
+- `tests/services/item.service.test.ts` - 7 unit tests for item CRUD
+- `tests/services/category.service.test.ts` - 7 unit tests for category CRUD
+- `tests/services/totals.test.ts` - 4 unit tests for totals aggregation
+- `tests/routes/items.test.ts` - 6 integration tests for item API
+- `tests/routes/categories.test.ts` - 4 integration tests for category API
+
+## Decisions Made
+
+- Service functions accept `db` as first parameter with production default for dependency injection and testability
+- Routes use Hono context variables (`c.get("db")`) for DB injection, enabling integration tests with in-memory SQLite without mocking
+- Totals computed via SQL aggregates on every read per RESEARCH.md recommendation (never cached)
+- `updateItemSchema.omit({ id: true })` used for PUT routes since id comes from URL params
+
+## Deviations from Plan
+
+None - plan executed exactly as written.
+
+## Issues Encountered
+
+None.
+
+## User Setup Required
+
+None - no external service configuration required.
+
+## Next Phase Readiness
+
+- All backend API endpoints ready for frontend consumption (Plan 01-03)
+- Service layer provides clean interface for TanStack Query hooks
+- Test infrastructure supports both unit and integration testing patterns
+
+## Self-Check: PASSED
+
+All 12 created files verified present. All 3 task commits verified in git log.
+
+---
+*Phase: 01-foundation-and-collection*
+*Completed: 2026-03-14*