Added sphinx setup and reformatted existing docs to rst format

[webbyfox]

To install sphinx:
Run:
pip install -U Sphinx
Then cd docs/ and run
make html

which should generate a _build folder with HTML of documentation which can be browsed.

[monikasulik]

Since you're changing where some of the docs are now, you might need to update Noel's confluence page to point to the correct place.
Also, might be nice to put the command that generates docs into the README and put a note that it creates them in the docs/ folder (I know that's very standard, but technically it's configurable AFAIK).