There is no fixed percentage of or rule of thumb for "dead space" in a water storage tank, but I can tell you from experience that 50% is far too conservative as you surmised.
Are you working with AWWA D-100 (welded steel) or D-103 (bolted steel) and will the water storage tank in question be located in an area prone to seismic activity? If so, I suggest looking at the applicable standard (both standards have the same requirements for freeboard for seismic-induced sloshing) and at ASCE 7, which also has the same requirements (see ASCE 7-22, §15.7.6). The required freeboard is a function of the tank diameter, the maximum depth of water in the tank, and several seismic parameters that you can get from
Quickly retrieve site structural design parameters specified by ASCE 7-10, ASCE 7-16, and ASCE 7-20, including wind, seismic, snow, ice, rain, flood, tsunami, and tornado.
ascehazardtool.org
. In a high seismic area, the required freeboard might be as little as about 2 feet to more than 6 feet.
You also have to consider the water in the bottom of the tank that is below the outlet. Generally, shell penetrations are at least 12 inches above the tank floor (D-100 discusses this in §14.3.2.7, but there are caveats), so the bottom 12 inches of a water storage tank with an outlet in the shell is usually considered to be "dead space" even if the outlet has a fitting that allows siphoning water from below that level. If the outlet is attached to the tank floor, then there is no "dead space" in the bottom, even though you might want to assume some so as to keep from introducing too much sand into the distribution system (systems fed by groundwater wells often end up with significant sand in the bottoms of their tanks.)
Regarding pump suction, you definitely need to pay close attention to suction head with horizontal pumps. When I have designed horizontal pumps to pull water from a tank, I use a large suction header and I put the pumps as close to the tank as possible to minimize suction losses. I also do what I can to increase the vertical distance between the outlet nozzle and the pump suction. However, when I can, I use vertical turbine pumps for this application because the pump suction is well below ground and this gives me more flexibility with suction head and with locating the pumping station.
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