$$\pmb { \underline { \text {Tougher Case }}}(L_{Pipe} \neq 0)$$
Since the information that there is a long pipe between the Hose and the tank was unknown therefore I would use a better model i.e., Poiseuille Flow Equation.
Poiseuille Flow equation for fluid motion in pipe states that:
$$\Delta p = \frac {8L \eta \pi v_{out}}{A}$$
i.e.,
$$ v_{out} = \frac { \Delta p r^2}{8L \eta}$$
Now $\Delta p$ is the pressure difference between the point at tank to the the point at tap, therefore $\Delta p = \rho g h$.
$$ \Rightarrow v_{out} = \frac { \rho g h r^2}{8L \eta}$$
$$\pmb { \underline { \text {Crunching the Numbers}}}$$
$$r = 6 mm \Rightarrow r^2=0.36 \times 10^{-4} m^2$$
$$g =9.8 m \ s^{-2}$$
$$ L = 210 m$$
$$ \eta = 1 \times 10^{-3} Pa \ s $$
See here for the values of $\eta$
$$ \rho = 10^3 kg m^{-3}$$
Now inputting these values into the equation
$$ v_{out} = \frac { \rho g h r^2}{8L \eta}$$
We get,
$$ v_{out} = 5.46 m \ s^{-1}$$
which is quite close to the true value.
Note that the value that we get here isn't quite accurate because (as Wikipedia states):
The equation does not hold close to the pipe entrance.
The equation fails in the limit of low viscosity, wide and/or short pipe. Low viscosity or a wide pipe may result in turbulent flow, making it necessary to use more complex models, such as Darcy–Weisbach equation.
$$\pmb { \underline { \text {Simpler Case }}}(L_{Pipe}=0)$$
Radius of hole is quite small in comparison to the Radius of the tank and hence it can be easily neglected without causing any deviation in the velocity of the water coming out of the hole.
What have I overlooked to cause this disagreement?
As you may see below (in the derivation of the equation) there isn't a thing in that significant enough that you have neglected. So why this discrepancy? The most probable reason is the viscous drag of the fluid and the friction applied by the wall (both of these are assumed to be insignificant to cause any deviation).
So how can you perform the experiment properly?
- Since the assumption is that the hose has very small length (i.e., it is effectively a hole) therefore you should use hose with smaller length (say why not use just some PVC tubes!).
i.e., Don't use this

Rather use this

$$\pmb { \underline { \text {Torricelli's Law (without approximation)}}}$$

Consider a tank of radius $R$ containing a liquid of density $\rho$ with a small hole$^1$ of radius $r$ in its side at a height $h$, from the top. The air above the liquid is at pressure $P_a$. The water at the top has speed (say) $v_{top}$. The liquid flowing out through the hole has a speed $v_{hole}$ and pressure $P_{hole}$. From equation of continuity we have:
$$r^2 v_{hole} = R^2 v_{top} $$
$$ \Rightarrow v_{top} = v_{hole} \frac {r^2}{R^2} \tag 1 $$
Now applying Bernoulli equation at top and at hole we get:
$$P_a+ \frac {1}{2} \rho v_{top}^2 +\rho g (0)=P_{hole}+ \frac {1}{2} \rho v_{hole}^2 +\rho g h \tag 2$$
Substituting from equation $(1)$ into $(2)$ we get:
$$\frac {1}{2} \rho v_{hole}^2 \left (1 - {\left (\frac {r}{R}\right )}^4 \right) = \rho g h+ (P_{hole}-P_a)$$
$$ \Rightarrow \boxed {v_{hole} = \sqrt{ \frac {2 \left ( \rho g h+ (P_{hole}-P_a) \right )}{\rho \left (1 - {\left (\frac {r}{R} \right )}^4 \right)}}}$$
Now as you say $R=3.5m$ and $r=12mm$ this means that $r/R$ is about $10^{-3}$ therefore you can neglect this term $(r/R)^4$ (as it would be about $10^{-12}$) and you equation is:
$$\boxed {v_{hole} = \sqrt{ \frac {2 \left ( \rho g h+ (P_{hole}-P_a) \right )}{\rho}}}$$
i.e.,
$$v_{top} = \sqrt{ 2 g h + \frac {2 \left (P_{hole}-P_a) \right )}{\rho}}$$
When $P_{hole}>>P$ and $2 g h$ may be ignored, then the speed of efflux is determined by the container pressure. Such a situation occurs in rocket propulsion. On the other hand, if the tank is open to the atmosphere, then $P = P_a$ (as air has very low density) and
$$ \boxed {v_{hole} = \sqrt {2gh} }$$
- We are considering a hole (kind of thing) over here as a hoze would cause more friction and lead to complexity in the problem.