Hi AB,
When you edit tank attributes, the levels (e.g. initial level) is measured from the bottom of the tank. In other words, the elevation that you supply for the tank is usually the bottom of the tank. Then min., max., and initial levels are measured up from that datum. It looks like you have interpreted the levels to mean absolute elevation of water surface, thus you are getting very high head in your system and your pumps are not able to function pumping agains such high head.
Also, from the EPANET User Manual:
How do I model a pressurized pneumatic tank?
If the pressure variation in the tank is negligible, use a very short, very wide cylindrical tank whose elevation is set close to the pressure head rating of the tank. Select the tank dimensions so that changes in volume produce only very small changes in water surface elevation.
If the pressure head developed in the tank ranges between H1 and H2, with corresponding volumes V1 and V2, then use a cylindrical tank whose cross-sectional area equals (V2-V1)/(H2-H1).
Mark